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HomeMy WebLinkAbout000 2022-0310 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, MARCH 10, 2022 2:00 p.m. Study Session 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. Page 1 AGENDA MARCH 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 2 CALL TO ORDER 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) (City) Property: Approximately 10 acre site on north side of Gerald Ford Drive between Cook Street and Portola Avenue (APN 694-120-028). City Negotiator: Todd Hileman/Martin Alvarez Other Party Negotiator: Palm Communities Property Owner: City of Palm Desert B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1) Potential cases: 2 C. Approval of Closed Session Minutes for the meetings of August 26, September 9 and 30, October 14 and 28, November 18 and December 16, 2021, and February 10, 2022. RECONVENE THE CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MEETING a) Roll Call b) Pledge of Allegiance to the Flag – Mayor Pro Tem Sabby Jonathan c) Inspiration/Invocation – Councilmember Karina Quintanilla REPORT ON ACTION FROM CLOSED SESSION AWARDS, PRESENTATIONS, AND APPOINTMENTS 1. Certificates of Achievement for Palm Desert High School Wrestling Team (CC) ........ ........................................................................................................................ Page 9 Rec.: Receive and file. CITY MANAGER COMMENTS Page 2 AGENDA MARCH 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 3 MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION 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. 2. MINUTES of the regular City Council, Successor Agency, and Housing Authority Meeting of February 10, 2022 (CC) (SA) (HA) ................................................ Page 13 Rec.: Approve as presented. 3. APPROVE CLAIMS AND DEMANDS WARRANTS: City: 1/30/2022 (CC); Successor Agency: 2/18/2022 (SA); City and Housing: 2/11/2022, 2/16/2022, 2/18/2022 (CC, HA) ....................................................................................................................... Page 23 Rec.: Receive and file. 4. REQUEST TO AUTHORIZE findings that the State of California continues in a Governor-declared state of emergency (AB361) 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) ................. Page 55 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). 5. ORDINANCE NO. 1376 amending the Palm Desert Municipal Code Section 2.34.010 related to Committee/Commission Member Attendance Requirements (2nd reading) (CC) ................................................................................................................ Page 57 Rec: Waive further reading and adopt. Page 3 AGENDA MARCH 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 4 6. ORDINANCE NO. 1377 adopting a Mitigated Negative Declaration in accordance with the California Environmental Quality Act (CEQA), and approval of a Change of Zone to establish a higher residential density (eight (8) units per acre), Tentative Parcel Map 38033, and a Precise Plan to construct 32 single-story condominium units, clubhouse, and pool/spa on 3.91 acres at the southwest corner of Gerald Ford Drive and Shepherd Lane (2nd reading) (CC) .................................... Page 59 Rec.: Waive further reading and adopt. 7. RESOLUTIONS: Approve Veronica Chavez, Interim Finance Director and City Treasurer, as Business Contracting Officer for the City of Palm Desert’s banking, trust, and investment relationships and update authorization to invest monies in the Local Agency Investment Fund. (CC) (SA) (HA) ...................................................... Page 65 Rec.: By Minute Motion that the City Council, Successor Agency Board, and Housing Authority Board: 1. Approve Veronica Chavez, Interim Finance Director and City Treasurer as a Business Contracting Officer for the City of Palm Desert, and all its related entities, banking, trust, and investment relationships and sign related technical documents; and 2. Approve Resolutions providing updated authorizations to the invest monies in the Local Agency Investment Fund (“LAIF”). 8. APPROVE a temporary waiver of certain Parks ordinances for duration of the Palm Desert Youth Sports Association Opening Day of baseball and softball to be held March 12, 2022. (CC) ................................................................................................ Page 73 Rec.: Approve a temporary waiver of Palm Desert Municipal Zone Sections 11.01.080-H (Camping), 11.01.140 (Amplified Sound) and 11.01.080Q (Vendor Sales) for the duration of the Palm Desert Youth Sports Association (PDYSA) event. 9. APPROVE a temporary waiver of facility use fees for the use of the Civic Center Park volleyball courts by Palm Desert High School for beach volleyball team practice and games (CC) .................................................................................................... Page 79 Rec.: By Minute Motion, approve waiving facility use fees for the use of the Civic Center Park volleyball courts by Palm Desert High School for beach volleyball team practice and games. Page 4 AGENDA MARCH 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 5 10. AWARD of Contract for the Palm Desert Aquatic Center pool resurfacing and lighting replacement project (Project No. 881-22) (CC) ................................................ Page 83 Rec.: By Minute Motion: 1. Award Contract to California Commercial Pools, Inc., Glendora, California for the Palm Desert Aquatic Center Pool Resurfacing and Lighting Replacement Project in the amount of $370,000.00 (Project No. 881-22); 2. Authorize the Director of Finance to set aside a 10% contingency in the amount of $37,000; 3. Authorize the City Manager or his designee to review and execute change orders up to the contingency amount for unanticipated conditions, per Section 3.30.170 Section A of Ordinance No. 1335; and 4. Authorize the Mayor to execute the subject agreement. 11. RECEIVE AND FILE the General Fund Financial Report for January 2022 (CC) .......................................................................................................................... Page 139 Rec.: Receive and file. 12. RECEIVE AND FILE the Compliance Analysis and Investment Reports for November 2021, December 2021 and January 2022 (CC) .......................................................................................................................... Page 143 Rec.: Receive and file. CONSENT ITEMS HELD OVER ACTION CALENDAR 13. AMEND Ordinance No. 1254, revising Chapter 11.01.080 (Parks, Prohibited conduct generally) of the Palm Desert Municipal Code relating to the improper feeding of wild or domestic birds (1st reading) (CC) .............................................................. Page 227 Rec.: Waive further reading and pass to second reading Ordinance No. 1254 revising Chapter 11.01.080 (Parks, Prohibited conduct generally) of the Palm Desert Municipal Code. 14. REVIEW recommended changes to the development standards of the R-2 (Mixed Residential District) and direct staff to initiate a Zoning Ordinance Amendment for Chapter 25.10 of the municipal code (CC) ................................................... Page 237 Rec.: By minute motion, direct staff to initiate a Zoning Ordinance Amendment (ZOA) to modify the development standards of the R-2 (Mixed Residential District) Zoning District in Chapter 25.10 of the municipal code. Page 5 AGENDA MARCH 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 6 15. APPROVE Unite Palm Desert Security Camera System grant program (CC) ............. ..................................................................................................................... Page 267 Rec.: By Minute Motion: 1. Approve the proposed Unite Palm Desert Security Camera System Grant program for private commercial properties to receive up to five-hundred dollars ($500) each for the purchase and installation of security cameras; 2. Authorize the City Manager to implement the Unite Palm Desert Security Camera System Grant program including the execution of all agreements required to meet the program requirements; 3. Authorize the City Attorney to make non-substantive changes to the Unite Palm Desert Security Camera System Grant program agreement; and 4. Approve an expenditure in the amount of $20,000 from Economic Development Fund 4254430-4393000 for the grants. PUBLIC HEARING 16. REDRAWING of Council Member District Boundaries (4th Public Hearing) (CC) ......... ..................................................................................................................... Page 275 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. 17. RESOLUTION to approve amended franchise agreement with Burrtec Waste and Recycling Services, LLC to collect solid waste, recyclables, and organic waste; conduct majority protest hearing, and approve adjusted rates as outlined (CC) .......... ..................................................................................................................... Page 319 Rec.: By Minute Motion: 1. Conduct a public hearing to receive public comment on proposed increases to solid waste and recycling service rates. 2. Adopt Resolution approving amended franchise agreement with Burrtec Waste and Recycling Services, LLC to collect solid waste, recyclables, and organic waste; and 3. Approve the adjusted maximum service rates outlined in exhibits 3A, 3B, and 3C of the amended franchise agreement. Page 6 AGENDA MARCH 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 7 18. RESOLUTION to adopt a Mitigated Negative Declaration (MND) in accordance with the California Environmental Quality Act (CEQA), and approval of General Plan Amendment 21-0002 (GPA 21-0002), amending the City’s Housing Element and Safety Element of the General Plan (CC) ..................................................... Page 589 Rec.: Waive further reading and adopt a City Council Resolution adopting an MND in accordance with the CEQA, and approval of Case No. GPA 21-0002, amending the City’s Housing Element and Safety Element of the General Plan in accordance with the California Department of Housing and Community Development (HCD) guidelines. 19. ADOPT a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA), and approval of a summary vacation of an unused portion of San Pablo Avenue right-of-way at the southeast corner of Fred Waring Drive and San Pablo Avenue to be in conformance with the City’s General Plan (CC) .................. Page 843 Rec.: Waive further reading and adopt the following: 1. A Notice of Exemption in accordance with CEQA; and 2. Conduct a public hearing to receive public input and adopt a City Council Resolution approving a summary vacation of an unused portion of San Pablo Avenue right-of-way at the southeast corner of Fred Waring Drive and San Pablo Avenue to be in conformance with the City’s General Plan. 20. RE-APPROVE Resolution No. 2022-07 approving a Historic District Designation for Sandpiper Condominiums Circle 2 Located on El Paseo (CC) ..................... Page 861 Rec.: Re-approve Resolution No. 2022-07 previously approved at the regular Council meeting of February 10, 2022, due to a noticing error. ADJOURNMENT Page 7 AGENDA MARCH 10, 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 3rd day of March, 2022. Note: This agenda is subject to amendment up to 72 hours in advance of the meeting. Níamh M. Ortega _ Níamh M. Ortega, Deputy City Clerk Page 8 Page 9 Page 10 Page 11 [This page has intentionally been left blank.] Page 12 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, February 10, 2022 CALL TO ORDER – 3:00 P.M. The meeting was called to order at 3:00 p.m. 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 Also Present: Todd Hileman, City Manager/Executive Director Robert W. Hargreaves, City Attorney Andrew Firestine, Assistant City Manager Janet M. Moore, Director of Finance Niamh M. Ortega, Deputy City Clerk M. Gloria Sanchez, Records Coordinator PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY None. ADJOURN TO CLOSED SESSION The meeting was adjourned to closed session at 3:01 p.m. Page 13 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 2 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 2)(Successor Agency) Property: Approximately 93-acre portion of the 128-acre site, located west of Portola Avenue and south of Gerald Ford Drive (APNs 694-310- 002, 003, and a portion of 694-310-006). City Negotiator: Todd Hileman/Martin Alvarez/Eric Ceja Other Party Negotiator: Refuge Palm Desert, LLC Property Owner: Successor Agency to Palm Desert Redevelopment Agency 3)(City) Property: 45656 Mountain View (APN 627-351-024-8) City Negotiator: Todd Hileman/Andy Firestine/Janet Moore Other Party Negotiator: The Lerae Britain Moeller Bush Living Trust Property Owner: The Lerae Britain Moeller Bush Living Trust 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. Mayor Harnik reconvened the regular meeting at 4:15 p.m. a)Roll Call b)Pledge of Allegiance to the Flag – Councilmember Karina Quintanilla c)Inspiration/Invocation – Councilmember Kathleen Kelly REPORT ON ACTION FROM CLOSED SESSION City Attorney Bob Hargreaves reported that, relative to Item A2, the City Council voted to approve an amended agreement with Refuge Palm Desert, LLC, which will be available for public review when finalized. Page 14 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 3 AWARDS, PRESENTATIONS, AND APPOINTMENTS None. CITY MANAGER COMMENTS City Manager Todd Hileman directed his time to Thomas Soule, Public Affairs Manager, for more information regarding important upcoming dates and events in the City of Palm Desert. Soule stated a workshop was scheduled on February 15, 2022, relative to Lupine Plaza. He shared the February 11, 2022, deadline for submitting Census redistricting draft maps for consideration, and noted the City would host the second Redistricting workshop on February 22, 2022, which would take place virtually via Zoom. He encouraged the public to visit engagepalmdesert.com with questions or to learn more about redistricting. Other 2022 events scheduled over the coming weeks were the Concert Series at the Gardens on El Paseo on February 12 and the Tour de Palm Springs, also on February 12. College of the Desert’s Street Fair would take place from 8:00 a.m. to 2:00 p.m. on February 12 and 13, and on Sunday, February 13, the Palm Desert Half-Marathon will take place. The Public Art Documentary Film Series would share a free screening at the University of Riverside in Palm Desert at 6:00 p.m. on February 16, and on February 18 El Paseo Cruise Night would take place from 2:00 p.m. to 5:00 p.m. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmember Quintanilla reported her attendance at the Animal Campus Committee meeting and advocated for those who are unable to have a pet for any reason, noting the public could foster a pet for one hour up to one week to enjoy the love of an animal without the responsibility of owning one. She also shared that fire stations would now be equipped with pet chip readers to help find lost animals. Quintanilla also brought up the Cultural Arts Group and stated that Staff may be able to address the future of the Arts District. Councilmember Kelly expressed the productivity of the goal-setting session that the City Council held on Monday, February 7, 2022. She noted the public could view the meeting on the City’s website to learn more about the goals Council has for the upcoming year. Councilmember Nestande spoke about the State’s mask mandate which was set to expire on February 15, 2022, for indoor usage with the exception of public transportation, children attending school between grades K-12, emergency shelters, healthcare settings and state and local professional facilities. She noted parents had reached out to her in efforts to allow parents to make the decision on whether or not their child should wear a mask while at school. While Councilmember Nestande expressed to these parents this was not in the City of Palm Desert’s jurisdiction, she asked City Manager, Todd Hileman if he would speak to Council individually to find out if there was enough support to write a letter to the Governor of California regarding the issue. Page 15 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 4 Mayor Harnik shared that a new bypass route has been approved on the I-10 freeway between Cabazon and Banning from Hargrave Street to Apache Trail to reduce the traffic congestion that occurs driving in and out of the Coachella Valley during weekends, holidays and festivals. Harnik also shared she and Mayor Pro Tem Jonathan have attended several meetings regarding Cal State University San Bernadino, and they would continue to do so. Lastly, Mayor Harnik mentioned that the Coachella Valley Conservation Commission discussed the invasive species of plants that have been consuming the Coachella Valley and destroying native animals and plants. She encouraged everyone to purchase plants that are native to the desert, or at least would not harm local animals and plants. NON AGENDA PUBLIC COMMENTS Mr. Jared Portolesi spoke regarding a neighboring house under construction, and expressed that he was opposed to the two-storey construction overlooking his yard. He asked the City to review its zoning guidelines to prevent such occurrences in future. Ms. Alena Callimanis spoke in opposition to the Desert Surf project and cited a review by Cloward H2O to support her position. She questioned if the project would provide sufficient access to the public. Mr. Bruce Poynter spoke in opposition five districts. 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 January 13, 2022 (CC) (SA) (HA) Rec.: Approve as presented. 2.APPROVE CLAIMS AND DEMANDS WARRANTS: City & Housing: 1/21/2022 (CC) (HA) Rec.: Receive and file. Page 16 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 5 3.REQUEST TO AUTHORIZE findings that the State of California continues in a Governor-declared state of emergency (AB361) 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). 4.RESOLUTION to approve Mid-Year Adjustments for the Fiscal Year 2021-22 Revenue and Expenditures (CC) This item was considered separately under Consent Items Held Over. 5.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) Rec.: Waive further reading and adopt. 6.AWARD of Contract No. C42330 in the amount of $158,830 to United Storm Water, Inc. of Industry, California for the 2021 Catch Basin and Drain Cleaning Project (Project No. 501-21) (CC) Rec.: By Minute Motion: 1.Award Contract No. C42330 in the amount of $158,830 to United Storm Water, Inc. of Industry, California, for the 2021 Catch Basin and Drain Cleaning Project; 2.Authorize the Director of Finance to set aside a 10% contingency in the amount of $15,883; 3. Authorize the City Manager or designee to review and approve written requests for the use of contingency for unanticipated conditions, per Section 3.30.170 Section A of Ordinance No. 1335; and 4.Authorize the City Manager to execute the Agreement. Page 17 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 6 7.AWARD of Contract to KOA Corporation of Monterey Park, California, for Traffic Engineering Services in the amount of $186,300 for the Neighborhood Traffic Management Plan (Project No. 570-21) (CC) Rec.: By Minute Motion: 1.Award Contract to KOA Corporation of Monterey Park, California, for Traffic Engineering Services in the amount of $186,300; and 2.Authorize the City Manager or their designee to execute said agreement and any amendments and related documents as recommended by staff. 8.AWARD of Contract No. C42440 in the amount of $89,800 to Multi W Systems, Inc. of El Monte, California, for the Civic Center Pump Station Improvements Project (Project No. 920-22 (CC) Rec.: By Minute Motion: 1.Award Contract No. C42440 for the Civic Center Pump Station Improvements Project to Multi W Systems, Inc. of El Monte, California, in the amount of $89,800; 2.Authorize the Director of Finance to set aside a 10% contingency in the amount of $9,000; 3. Authorize the Director of Finance to transfer $98,800 from the Civic Center Photovoltaic Project (Account No. 4504161-4400100) to Civic Center Capital Project (Account No. 1104674-4400100); 4.Authorize the Mayor to execute the agreement; and 5.Authorize the City Manager to approve change orders associated with this contract based on staff’s recommendations. 9.AWARD Contract No. C42170 to Commercial Waterproofing Systems, Inc. of Santa Ana, California, for the Desert Willow Golf Resort Maintenance Facility Roof Repairs in the amount of $77,000 (Project No. 851-22) (CC) Rec.: By Minute Motion: 1.Award Contract No. C42170 to Commercial Waterproofing Systems, Inc., of Santa Ana, California, for the Desert Willow Golf Resort Maintenance Facility Roof Repairs in the amount of $77,000; 2.Authorize the Director of Finance to set aside a 10% contingency in the amount of $7,700 for unforeseen conditions; and 3.Authorize the City Manager to execute said the agreement and any change orders associated with this contract based on staff’s recommendations. Page 18 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 7 10.APPROVE AND AWARD an agreement with Mosaic Public Partners LLC and authorize the expenditure of up to $86,000 for recruitment services (CC) Rec.: By Minute Motion: 1.Approve and award an agreement with Mosaic Public Partners LLC; and 2.Authorize the expenditure of up to $86,000 for recruitment services, including additional expenses. 11.AWARD Contract to Conserve Landcare of Thousand Palms, California for the Parks and Landscape Enhancement Project for an annual amount of $250,000 for a term of 53 months (Project No. 934-22) (CC) This item was considered separately under Consent Items Held Over 12.ACCEPT Contract No. C38820B with Los Angeles Engineering, Inc. of Riverside, California, for the San Pablo Avenue Phase 2 Street Improvements as complete and authorize the City Clerk to file a Notice of Completion (Project No. 681-20) (CC) Rec.: By Minute Motion: 1.Accept Contract No. C38820B with Los Angeles Engineering, Inc. of Riverside, California, for the San Pablo Avenue Phase 2 Street Improvements as complete; 2.Approve Change Order No. 13 to Contract No. C38820B in the amount of $22,421.79; 3.Approve Contract Amendment No. 1 to Contract No. C38820A in the amount of $25,000; 4.Authorize the transfer of $25,000 from the remaining contingency amount for the project from Contract No. C38820B to Contract C38820A; 5.Authorize the City Clerk to file the Notice of Completion; and 6.Authorize the City Manager or their designee to execute the change order and contract amendment. 13.APPROVE Mills Act Contract for property located at 72-765 Mesquite Court, Unit C, Kings Point at Palm Desert (Shadow Cove), APN 628-270-033 (CC) Rec.: By Minute Motion: 1.Approve the following Mills Act contract for 72-765 Mesquite Court, Unit C, Kings Point at Palm Desert (Shadow Cove), APN 628-270-033 in accordance with section 29.70.030 of the Palm Desert Municipal Code (PDMC). 2.Authorize City Manager and City Attorney to approve, sign and execute the contracts. Page 19 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 8 14. RECEIVE AND FILE letter of resignation from Ms. Donna Ault, Housing Commission (CC) Rec.: Receive and file with sincere regret. 15. ORDINANCE NO. 1375: 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. (2nd Reading) (CC) Rec.: Waive further reading and adopt. Main Motion: Approve all items on the consent calendar with the exception of items 4 and 11, considered separately. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried CONSENT ITEMS HELD OVER 4. RESOLUTION to approve Mid-Year Adjustments for the Fiscal Year 2021-22 Revenue and Expenditures (CC) Main Motion: Waive further reading and adopt a resolution approving mid-year adjustments to revenue and expenditures for the FY 2021-22. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried 11. AWARD Contract to Conserve Landcare of Thousand Palms, California for the Parks and Landscape Enhancement Project for an annual amount of $250,000 for a term of 53 months (Project No. 934-22) (CC) Main Motion: 1. Award Contract for the Parks and Landscape Enhancement Project to Conserve Landcare of Thousand Palms, California, for an annual amount of $250,000; 2. Authorize the Mayor to execute the agreement; and 3. Authorize City Manager to approve change orders associated with this contract and up to three (3) one-year contract extensions based on staff’s recommendations. Moved by: Kelly/Quintanilla Vote and Action: 4 Yes/0 No/1 Abstain (Jonathan). Motion Carried Page 20 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 9 ACTION CALENDAR 16.REQUEST FOR DIRECTION for a future Request for Proposals (RFP) for design work related to North Sphere Regional Park (NSRP) (CC) Main Motion: Direct staff to draft a Request for Proposals which explicitly calls for collaboration with existing community partners such as the Desert Recreation District, Family YMCA of the Desert and the Joslyn Center to provide input on potential amenities and how facilities might enable their program expansion, and authorize the Parks and Recreation Commission to work with the selected design firm on the final park design. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried PUBLIC HEARING 17.RESOLUTION NO. 2022-07 to approve a Historic District Designation for Sandpiper Condominiums Circle 2 located on El Paseo (Cont’d from January 27, 2022, meeting) (CC) Jason Finley presented a report. Mayor Harnik opened the public hearing at the January 27, 2022, meeting and continued it to the current meeting of February 10, 2022. Ms. Cassandra Hearn, President of HOA Circle 2, expressed her supports for the approval of a historical designation for the properties. Hearing no other public comment, Mayor Harnik closed the public hearing. Main Motion: Waive further reading and adopt a resolution reaffirming the action of the Cultural Resources Preservation Committee, designating the Sandpiper Condominiums Circle 2, located on El Paseo, with a Historic District designation in accordance with Section 29.50.010 of the Palm Desert Municipal Code (PDMC). Moved by: Kelly/Jonathan Vote and Action: 5 Yes/0 No. Motion Carried Page 21 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 10 18.RESOLUTION NO. 2022-08 to approve a Historic District Designation for Sandpiper Condominiums Circle 3 located on El Paseo (Cont’d from January 27, 2022, meeting) (CC) Jason Finley presented a report. Mayor Harnik opened the public hearing at the January 27, 2022, meeting and continued it to the current meeting of February 10, 2022. Mr. Paul Preston, President of HOA Circle 3, expressed his support for the approval of a historical designation for the properties. Hearing no other public comment, Mayor Harnik closed the public hearing. Main Motion: Waive further reading and adopt a resolution reaffirming the action of the Cultural Resources Preservation Committee, designating the Sandpiper Condominiums Circle 3, located on El Paseo, with a Historic District designation in accordance with Section 29.50.010 of the Palm Desert Municipal Code (PDMC). Moved by: Kelly/Jonathan Vote and Action: 5 Yes/0 No. Motion Carried ADJOURNMENT With City Council, Successor Agency, and Housing Authority concurrence, Mayor Harnik adjourned the meeting at 4:59 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 22 Page 23 [This page has intentionally been left blank.] Page 24 Page 25 [This page has intentionally been left blank.] 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 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 [This page has intentionally been left blank.] Page 54 STAFF REPORT CITY OF PALM DESERT MEETING DATE: March 10, 2022 PREPARED BY: Robert Hargreaves, City Attorney REQUEST: By Minute Motion, make 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 that the City may continue to employ remote teleconferencing. _____________________________________________________________________ Recommendation By Minute Motion, 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). Strategic Plan The proposed action has no impact on the Strategic Plan. Background Analysis AB 361 (Government Code Section 54953(e)) provides that a local agency may employ remote teleconferencing upon a finding by the governing board that certain circumstances exist, among those that there is a Governor-declared emergency and state or local officials are recommending social distancing. The City Council will need to make those findings each month in which it continues to implement remote teleconferencing. The alternative is to revert to the preexisting Brown Act standards for teleconferencing which require that: (1) all teleconferencing locations be identified on the agenda; (2) agendas be posted at all teleconferencing locations; (3) all teleconferencing locations be open to the public; and (4) a majority of the council participate from locations within the City. Page 55 March 10, 2022 - Staff Report AB361 Page 2 of 2 Fiscal Analysis There is no direct fiscal impact associated with this item. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER RWH Robert W. Hargreaves City Attorney N/A N/A Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman ATTACHMENTS: None Page 56 Page 57 ORDINANCE NO. 1376 2 PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: NIAMH M. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 58 Page 59 ORDINANCE NO. _____ 2 obstacles to development of surrounding subdivisions were experienced and, due to the proximity and similarity of the proposed development, it is reasonable to conclude that the site is physically suitable for it. The property is suitable for the proposed development as conditioned and mitigated as described in the draft Initial Study and Environmental Assessment. 2. The change of zone meets the intent of the Planned Residential (PR) zone by providing a mixture of residential densities in the surrounding area. The PR zone, which is the City’s most flexible zoning standard for residential development. Essentially, the PR zone allows the developer to propose development standards based on their desired products and compatibility of the surrounding uses, requiring a consultation with City Planning staff and approval of the Commissions. The request for the CZ to a higher density meets the intent of the PR zone by providing a mixture of residential densities in the surrounding area. The building density as designed would not adversely impact any adjacent properties, as shown from the neighboring residents in support of the project. 3. The site layout and density are consistent with surrounding development. The current zone allows for five (5) dwelling units per acre (du/acre), and the proposed 32 units provide a density of eight (8) du/acre. The applicant is requesting a change of zone to eight (8) du/acre, which will support the proposed development. Directly west of the property is approximately 100 acres that are zoned for 22 du/acre. To the north, south, and east are multiple housing developments zoned for five (5) du/acre. Those developments are multiple tract maps consisting of 16 single-family residential lots ranging from 8,000 to 11,000 square feet. Those developments are designed to attract first-time homebuyers and families. The proposed development provides a housing type that can also attract first-time homebuyer or a retired population who choose to live within an HOA where amenities and property maintenance are included. 4. The design and layout of the 32 units comply with all grading requirements and the project will be developed in accordance with the Uniform California Building Code. Grade changes in the community are accommodated by the street layout and open space provided throughout the subdivision. 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 60 ORDINANCE NO. _____ 3 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 Change of Zone 21-0001 from five (5) du/acre to eight (8) du/acre, as shown in Exhibit A, which is attached hereto and incorporated herewith. SECTION 3. Compliance with the CEQA. The City Council has reviewed and considered the information contained in the MND, Initial Study, and administrative record on file with the City and is available for review at 73510 Fred Waring Drive, Palm Desert, California. The City Council finds that the MND and Initial Study have been completed in compliance with the CEQA (Pub. Res. Code § 21000 et seq: “CEQA”) and the State CEQA Guidelines. SECTION 4. Findings on Environmental Impacts. In the City’s role as the lead agency under CEQA, the City Council find that the MND and Initial Study dated January 2022 contained a complete and accurate reporting of the environmental impacts associated with the Project. The documents have been completed in compliance with CEQA, the State CEQA Guidelines, and City of Palm Desert local CEQA guidelines. All environmental impacts of the Project are either insignificant or can be mitigated to a less than significant level pursuant to the mitigation measures outlined in the MND, Initial Study, and the Mitigation Monitoring and Reporting Program. No substantial evidence in the record supporting a fair argument that the Project may result in significant environmental impacts and that any comments received to date regarding the Project have been examined and determined not to modify the conclusions of the MND or the City Council. Furthermore, the MND has not been substantially revised after the public notice of its availability, and recirculation is not required. (State CEQA Guidelines, § 15073.5.) The City Council further finds that the MND contains a complete, objective, and accurate reporting of the environmental impacts associated with the Project and reflects the independent judgment of the City Council. SECTION 5. Adoption of the Mitigated Negative Declaration. The City Council approves and adopts the subsequent MND prepared for the Project. SECTION 6. Adoption of the Mitigation Monitoring and Reporting Program. The City Council approves and adopts the Mitigation Monitoring and Reporting Program prepared for the Project, which are included in the MND. SECTION 7. 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 Page 61 ORDINANCE NO. _____ 4 fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 8. 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 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 62 ORDINANCE NO. _____ 5 Exhibit “A” Page 63 [This page has intentionally been left blank.] Page 64 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\07 Business Contract Officer_LAIF Authorization\SR Business Contracting Officer 3-10-22.doc CITY OF PALM DESERT/PALM DESERT HOUSING AUTHORITY/ SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY JOINT CONSIDERATION STAFF REPORT MEETING DATE: March 10, 2022 SUBMITTED BY: Veronica Chavez, Finance Manager REQUEST: RECOMMEND APPROVAL OF VERONICA CHAVEZ, INTERIM FINANCE DIRECTOR AND CITY TREASURER, AS BUSINESS CONTRACTING OFFICER FOR THE CITY OF PALM DESERT’S BANKING, TRUST, AND INVESTMENT RELATIONSHIPS AND UPDATE AUTHORIZATION TO INVEST MONIES IN THE LOCAL AGENCY INVESTMENT FUND. Recommendation By minute motion that the City Council, Successor Agency Board, and Housing Authority Board: 1) Approve Veronica Chavez, Interim Finance Director and City Treasurer as a Business Contracting Officer for the City of Palm Desert, and all its related entities, banking, trust, and investment relationships and sign related technical documents; and 2) Approve Resolution No’s 2022-___, SARDA-___, HA-____ providing updated authorizations to the invest monies in the Local Agency Investment Fund (“LAIF”). Discussion Palm Desert Municipal Code Section 2.08.040 specifies that the Director of Finance for the City of Palm Desert (" City') shall also serve as City Treasurer. The City Treasurer is the Business Contracting Officer ("BCO") for the City's banking, trust, and investment relationships, and signs all related technical documents. To assist with the transition from the retiring City Treasurer, the Interim City Treasurer will need to be able to conduct business until a permanent replacement has been named. In order to facilitate this change the City’s banks and government investment pools require a copy of City Council minutes affirming that the new City Treasurer has such powers. This will include the City’s related entities accounts, including the Palm Desert Housing Authority, and the Palm Desert Successor Agency. Staff recommends that Interim Finance Director and City Treasurer Veronica Chavez be appointed as a BCO for the City's banking, trust, and investment relationships, with the authority to sign any related technical documents. Page 65 Staff Report AUTHORIZATION OF BCO AND LAIF INVESTMENTS March 10, 2022 Page 2 of 2 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\07 Business Contract Officer_LAIF Authorization\SR Business Contracting Officer 3-10- 22.doc Fiscal Analysis There is no fiscal impact associated with this action. LEGAL REVIEW DEPTARTMENT REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert Hargraeves City Attorney Veronica Chavez Veronica Chavez Acting Director of Finance Veronica Chavez Veronica Chavez Acting 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-___, SARDA-___, HA-___ Page 66 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY OF PALM DESERT 73-510 Fred Waring Drive, Palm Desert, CA 92260 TEL: 760.346.0611, x323 WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code Section 16429.1 et. seq., for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the City Council hereby finds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code Section 16429.1 et. seq., for the purpose of investment as provided therein, is in the best interests of the City of Palm Desert. NOW THEREFORE, BE IT RESOLVED, that the City Council hereby authorizes the deposit and withdrawal of City monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code Section 16429.1 et. seq., for the purpose of investment as provided therein. BE IT FURTHER RESOLVED, as follows: Section 1. The following City officers holding the titles specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund, and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby: Veronica Chavez Jose Luis Espinoza Kalaina Perez Interim City Treasurer Deputy Finance Director Management Analyst _________________ ___________________ ________________ Section 2. This resolution shall remain in full force and effect until rescinded by the City Council by resolution, and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office. AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND Page 67 RESOLUTION NO. 2022- PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Palm Desert, Riverside County, State of California, at its regular meeting held on this 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. 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 68 RESOLUTION NO. SA-RDA___ A RESOLUTION OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY 73-510 Fred Waring Drive, Palm Desert, CA 92260 TEL: 760.346.0611, x323 WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code Section 16429.1 et. seq., for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the Successor Agency to the Palm Desert Redevelopment Agency (“Successor Agency”) hereby finds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code Section 16429.1 et. seq., for the purpose of investment as provided therein, is in the best interests of the City of Palm Desert. NOW THEREFORE, BE IT RESOLVED, that the Successor Agency hereby authorizes the deposit and withdrawal of Successor Agency monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code Section 16429.1 et. seq., for the purpose of investment as provided therein. BE IT FURTHER RESOLVED, as follows: Section 1. The following Successor Agency officers holding the titles specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund, and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby: Veronica Chavez Jose Luis Espinoza Kalaina Perez Interim City Treasurer Deputy Finance Director Management Analyst _________________ ___________________ ________________ Section 2. This resolution shall remain in full force and effect until rescinded by the Successor Agency by resolution, and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office. AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND Page 69 RESOLUTION NO. SA-RDA___ PASSED, APPROVED, AND ADOPTED, by the Successor Agency to the Palm Desert Redevelopment Agency, Riverside County, State of California, at its regular meeting held on this 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. 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 70 RESOLUTION NO. HA- A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF PALM DESERT 73-510 Fred Waring Drive, Palm Desert, CA 92260 TEL: 760.346.0611, x323 WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code Section 16429.1 et. seq., for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the Housing Authority of the City of Palm Desert (“Housing Authority”) hereby finds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code Section 16429.1 et. seq., for the purpose of investment as provided therein, is in the best interests of the City of Palm Desert. NOW THEREFORE, BE IT RESOLVED, that the Housing Authority hereby authorizes the deposit and withdrawal of Housing Authority monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code Section 16429.1 et. seq., for the purpose of investment as provided therein. BE IT FURTHER RESOLVED, as follows: Section 1. The following Housing Authority officers holding the titles specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund, and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby: Veronica Chavez Jose Luis Espinoza Kalaina Perez Interim City Treasurer Deputy Finance Director Management Analyst _________________ ___________________ ________________ Section 2. This resolution shall remain in full force and effect until rescinded by the Housing Authority by resolution, and a copy of the resolution rescinding this resolution is filed with the State Treasurer’s Office. AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND Page 71 RESOLUTION NO. HA- PASSED, APPROVED, AND ADOPTED, by the Housing Authority of the City of Palm Desert, Riverside County, State of California, at its regular meeting held on this 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. 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 72 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: March 10, 2022 PREPARED BY: Randy Chavez, Landscape Supervisor REQUEST: Consideration for Approval of a Temporary Waiver of Certain Parks Ordinances for Duration of the Palm Desert Youth Sports Association Opening Day of Baseball & Softball to be held March 12, 2022. Recommendation By Minute Motion, approve a temporary waiver of Palm Desert Municipal Zone Sections 1 1.01.080-H (Camping), 11.01.140 (Amplified Sound) and 11.01.080Q (Vendor Sales) for the duration of the Palm Desert Youth Sports Association (PDYSA) event. Background The PDYSA Opening Day Ceremony for youth baseball/softball has gained popularity over the years and has turned into a community event. Staff and PDYSA work cooperatively every year to produce a festive and safe environment. In previous years, the City Council’s Community Sponsorship Program provided up to $7,000 towards the PDYSA Opening Day Ceremony. Opening Day is scheduled for Saturday, March 12, 2022, with an estimated attendance of 2,500 people. The event program typically includes an introduction of keynote speakers, the national anthem, and acknowledgement of the fine facilities offered by the City of Palm Desert. PDYSA uses a sound system for the ceremony and allows space for vendors during the event, which both require Council approval. New for the 2022 event, the PDYSA is proposing to add a variety of food trucks, bounce houses, and small scale events focused on the players and their families. Fiscal Analysis PDYSA has been awarded $2,500 for the Opening Day Ceremonies through the City's Outside Agency Funding budget. There is no fiscal impact beyond the Community Sponsorship Program. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman ATTACHMENTS: Palm Desert Municipal Code Event Site Plan Page 73 Page 74 Page 75 Page 76 SANPABLOAVECARMEL CIRSANPASCUALAVEKRUG AVE RANCHO RD SAN PASCUAL AVEPRIVATE ST SAN PASCUAL AVEPRIVATE ST M A GN ESI A FA LLS D R SEBASTIAN WAYPRIVATE ST SANPABLOAVECARMEL CIRCARMEL CIRHEITZ CTMARTINI C T MONDAVI CTPRIVATE ST PRIVATE ST FRED WARING DR SAN PASCUAL AVEPRIVATE STPRIVATE RD CARMEL CIRFRED WARING DR MASSON STPRIVATE STRANCHO RD RANCHO RD PRIVATE RD PRIVATE STPRIVATE ST M A GN ESI A FA LLS D R SANPABLOAVEFRED WARING DRSANPABLOAVE CARMEL CIRSANPASCUALAVEKRUG AVE RANCHO RD SAN PASCUAL AVEPRIVATE ST SAN PASCUAL AVEPRIVATE ST M A GN ESI A FA LLS D R SEBASTIAN WAYPRIVATE ST SANPABLOAVECARMEL CIRCARMEL CIRHEITZ CTMARTINI C T MONDAVI CTPRIVATE ST PRIVATE ST FRED WARING DR SAN PASCUAL AVEPRIVATE STPRIVATE RD CARMEL CIRFRED WARING DR MASSON STPRIVATE STRANCHO RD RANCHO RD PRIVATE RD PRIVATE STPRIVATE ST M A GN ESI A FA LLS D R SANPABLOAVEFRED WARING DR Opening Day Event Site Map I VICINITY MAPPage 77 [This page has intentionally been left blank.] Page 78 STAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: March 10, 2022 PREPARED BY: Heather Horning, Assistant to the City Manager REQUEST: Approve waiving facility use fees for the use of the Civic Center Park volleyball courts by Palm Desert High School for beach volleyball team practice and games. Recommendation By Minute Motion, approve waiving facility use fees for the use of the Civic Center Park volleyball courts by Palm Desert High School for beach volleyball team practice and games. Background The City has a contract with Desert Recreation District (DRD) for the management and operation of the Civic Center Park facilities. Under this contract, DRD issues facility use permits to the public for the use of the park facilities, including volleyball courts, baseball fields, amphitheater, pavilions, etc. Per the City’s Municipal Code Section 11.04.040 (Reservation Fee and Cleaning Deposit), the permits for park facility use are subject to reservation fees and a cleaning deposit. DRD collects these fees on the behalf of the City and then remits them to the City. Palm Desert High School (PDHS) is setting up a CIF beach volleyball team and needs access to sand volleyball courts to practice and host games. PDHS does not have these courts at their campus and have requested to use the City’s courts at Civic Center. Since this is their first year, they do not have funds to pay for the facility use fees and they have requested that the City waive them. A letter from the principal and athletic director of PDHS regarding this request is attached. They are requesting use of one court for about two hours, three days a week for practice and games for a few months. In order to process this request, the City can either ask that PDHS pay the facility fees and then the City can reimburse them for the fees by approving a sponsorship request. Or, the City can waive the facility fees. Since this is the first year having a beach volleyball team, PDHS did not budget for these fees, and they lack sufficient time to apply for a sponsorship prior to needing use of the court, staff recommends waiving the facility use fees and the cleaning deposit for the use of a sand volleyball court at Civic Center Park for the PDHS beach volleyball team practice and games. Fiscal Analysis The facility use fees collected by DRD for the use of Civic Center facilities are collected on the City’s behalf and remitted to the City. The applicable facility fees for the use of the sand volleyball court are $30 per hour for use of the court, a $20 administration fee, and Page 79 March 10, 2022 – Staff Report Facility Fee Waiver for Civic Center Sand Volleyball Court for PDHS Page 2 of 2 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\09 Park Fee Waiver for PDHS Volleyball\01 Park Fee Wiaver for PDHS Beach Volleyball.docx a refundable $250 cleaning deposit. Staff estimates the fees would total approximately $1,000. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney N/A L. Todd Hileman City Manager Veronica Chavez Veronica Chavez Acting Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman ATTACHMENT: Letter From PDHS Requesting Fee Waiver for Beach Volleyball Page 80 Page 81 [This page has intentionally been left blank.] Page 82 CONTRACT NO. ____________ STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: March 10, 2022 PREPARED BY: Shawn Muir, Management Analyst REVIEWED BY: Andy Ramirez, Deputy Director of Public Works REQUEST: Award Contract for the Palm Desert Aquatic Center Pool Resurfacing and Lighting Replacement Project ___________________________________________________________________________ Recommendation By Minute Motion: 1.Award Contract to California Commercial Pools, Inc., Glendora, California for the Palm Desert Aquatic Center Pool Resurfacing and Lighting Replacement Project in the amount of $370,000.00 (Project No. 881-22); 2.Authorize the Director of Finance to set aside a 10% contingency in the amount of $37,000; 3.Authorize the City Manager or his designee to review and execute change orders up to the contingency amount for unanticipated conditions, per Section 3.30.170 Section A of Ordinance No. 1335; and, 4.Authorize the Mayor to execute the subject agreement. Funds are available in Account No. 2424549-4331101, Aquatic Facility/Contracted Pool. Strategic Plan These initiatives support Parks & Recreation Priority 1 Goal of the Strategic Plan. This goal recommends making recreation, health, and wellness an integral part of the Palm Desert community. Resurfacing the Palm Desert Aquatic Center (PDAC) Recreation Pool and installing new lighting in the Lap Pool provides the community with a continued resource for recreation and exercise, promoting health, wellness, and quality of life for our residents. Examples of these benefits include swim lessons and competitions, activities such as “Dive- In” movie nights, and recreational swim for all ages. In addition, replacement of the current lap pool lighting with energy efficient lighting will provide an immediate reduction in energy use, which furthers Priority 1 of the Energy and Sustainability goal. Background Analysis The Palm Desert Aquatic Center was constructed in 2011 and included a 5,622 square foot Recreation Pool that has never been resurfaced. Commercial pools require resurfacing approximately every 10 years to repair problems like cracks and wearing. This work also Page 83 Contract No. ___________ March 10, 2022 - Staff Report Award to Contract to California Commercial Pools (Project No. 881-22) Page 2 of 3 enhances and updates the pool's overall appearance. In addition, sufficient lighting of the PDAC lap pool is required by Riverside County Codes. Currently, only a few in-water lights are operational. This is not sufficient, and supplemental overhead lighting is in use to enable the facility to remain open at night. All 26 in-water lights will be replaced with energy efficient LED lighting. The improvements to PDAC will begin with the demolition and removal of the existing plaster in the Recreation Pool. Two (2) rows of new 1’ x 1’ white non-skid tile will be added on the pool floor and up the walls in front of both sets of steps. White pebble sheen pool plaster will then be installed to finish. At the Lap Pool, 26 in-water lights will be removed and replaced with 500-watt pure LED lights. The project was advertised, and on February 4, 2022, the following three (3) bids were received electronically through the City’s bid management portal: Contractor Location Bid Amount Rating California Commercial Pools Glendora, CA $370,000.00 1 Ojeda Pool & Spa La Quinta, CA $373,625.64 2 Aquatic Service, Inc. San Juan Capistrano, CA $436,881.00 3 Three (3) staff reviewed the proposals independently and held a meeting in which the highest responsive bid, Aquatic Service, Inc., was eliminated from consideration due to the difference in price from the two other bids. California Commercial Pools submitted the lowest responsive bid and provided many examples of comparable work to what is required at the Palm Desert Aquatic Center. Ojeda Pool & Spa, a local company, submitted a bid that is slightly higher in cost than the lowest responsive bid. Work examples provided by Ojeda Pool & Spa were not comparable to the proposed work as they were not large commercial pools. References were contacted for both companies and recorded. Upon review of the reference information, California Commercial Pools, Inc. is recommended for this contract award based on their track record and demonstrated ability to replaster large commercial pools of similar size and proposed scope of work. If awarded, project commencement is anticipated mid-March 2022, with completion by early June. Fiscal Analysis The approved Palm Desert Aquatic Center maintenance budget for FY 2021-22 included $500,000 in Account No. 2424549-4331101 for contracted pool maintenance and repairs. The total of this project including contingency is $407,000.00, which is within the current account balance of $430,000. Therefore, there is no further fiscal impact to the general fund. Page 84 Contract No. ___________ March 10, 2022 - Staff Report Award to Contract to California Commercial Pools (Project No. 881-22) Page 3 of 3 LEGAL REVIEW Approved as to Form DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Director of Finance L. Todd Hileman L. Todd Hileman City Manager ATTACHMENTS: Agreement Payment & Performance Bonds Contractor’s Proposal Vicinity Map Page 85 Contract No. _____________ - 1 - CITY OF PALM DESERT MAINTENANCE SERVICES AGREEMENT AQUATIC CENTER POOL RESURFACING AND LIGHTING REPLACEMENT PROJECT NO. 881-22 1. PARTIES AND DATE. This Agreement is made and entered into this 10th day of March 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, County of Riverside, State of California (“City”) and California Commercial Poos, Inc. a Corporation, with its principal place of business at 2255 E. Auto Centre Drive, Glendora, California 91740 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement. 2. RECITALS. 2.1 Contractor. Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing maintenance services to public clients, that it and its subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 2.2 Project. City desires to engage Contractor to render such services for the PALM DESERT AQUATIC CENTER POOL RESURFACING AND LIGHTING REPLACEMENT PROJECT (“Project”) as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the maintenance services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services 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. 3.1.2 Term. The term of this Agreement shall be from March 1, 2022, to October 30, 2022, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services. Page 86 Contract No. _____________ - 2 - 3.2 Responsibilities of Contractor. 3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee. Any personnel performing the Services under this Agreement on behalf of Contractor shall not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance. 3.2.2 Schedule of Services. Contractor shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City. 3.2.4 City’s Representative. The City hereby designates Shawn Muir, Management Analyst, or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement except for increasing compensation. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee. 3.2.5 Contractor’s Representative. Contractor hereby designates Shawn Muir, Management Analyst, or designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.6 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times. 3.2.7 Standard of Care; Performance of Employees. Contractor shall perform all Services 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. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, Page 87 Contract No. _____________ - 3 - including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.8 Period of Performance and Liquidated Damages. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of two hundred fifty Dollars ($250.00) per day for each and every calendar day of delay beyond the Performance Time or beyond any completion schedule or Project milestones established pursuant to this Agreement. 3.2.9 Disputes. Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extra work which Contractor may be required to do or respecting the size of any payment to Contractor during the performance of this Contract, Contractor shall continue to perform the Work while said dispute is decided by the City. If Contractor disputes the City’s decision, Contractor shall have such remedies as may be provided by law. 3.2.10 Laws and Regulations; Employee/Labor Certifications. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with. 3.2.10.1 Employment Eligibility; Contractor. Contractor 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 and shall require all subconsultants and sub-subconsultants to comply with the same. Contractor certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Labor Certification. By its signature hereunder, Contractor Page 88 Contract No. _____________ - 4 - 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. 3.2.10.3 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer, and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.4 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement. 3.2.10.5 Water Quality Management and Compliance. To the extent applicable, Contractor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws, rules and regulations of the Environmental Protection Agency and the State Water Resources Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor to penalties, fines, or additional regulatory requirements. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor 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. (A) General Liability Insurance. 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 $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. Page 89 Contract No. _____________ - 5 - (B) Automobile Liability Insurance. 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 Contractor 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 Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may 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; (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. (D) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. (E) RESERVED (F) RESERVED (G) RESERVED 3.2.11.2 Other Provisions and Requirements. (A) Proof of Insurance. 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. Page 90 Contract No. _____________ - 6 - City reserves the right to require complete, certified copies of all required insurance policies, at any time. (B) Duration of Coverage. 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 Contractor, his/her agents, representatives, employees or subconsultants. (C) Primary/Non-Contributing. Coverage provided by 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. (D) 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 Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (E) 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. (F) 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, and their respective agents, officials, employees, volunteers and representatives, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (G) Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H) 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 Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits Page 91 Contract No. _____________ - 7 - maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (I) Notice of Cancellation. Contractor 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. (J) 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, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (K) 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. (L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’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. (M) Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub-contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. 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. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. 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 Contractor ninety (90) days advance written notice of such change. If such change results in cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) 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. (P) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own Page 92 Contract No. _____________ - 8 - judgment may be necessary for its proper protection and prosecution of the work. 3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor 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 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. 3.2.13 Bonds. 3.2.13.1 Performance Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City. 3.2.13.2 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City. 3.2.13.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within ten (10) days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause. 3.2.13.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best’s rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet Page 93 Contract No. _____________ - 9 - these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City. 3.2.14 Accounting Records. Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.2.15 Work Sites. 3.2.15.1 Inspection Of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money–will be allowed as to such matters after commencement of the Services. 3.2.15.2 Field Measurements. Contractor shall make field measurements, verify field conditions and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract, including any plans, specifications, or scope of work before commencing Services. Errors, inconsistencies or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition. 3.2.15.3 Hazardous Materials and Differing Conditions. Should Contractor encounter material reasonably believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substances and hazardous materials as defined in California state or federal law at the site which have not been rendered harmless, the Contractor shall immediately stop work at the affected area and shall report the condition to the City in writing. The City shall contract for any services required to directly remove and/or abate PCBs, hazardous substances, other toxic wastes and hazardous materials, and shall not require the Contractor to subcontract for such services. The Services in the affected area shall not thereafter be resumed except by written agreement of the City and Contractor. 3.2.16 Loss and Damage. Contractor shall be responsible for all loss and damage which may arise out of the nature of the Services agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Services until the same is fully completed and accepted by City. 3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) Page 94 Contract No. _____________ - 10 - days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed Three Hundred Seventy Thousand Dollars ($370,000.00) without written approval of the City Council or City Manager, as applicable. 3.3.2 Payment of Compensation. Contractor shall submit to City monthly invoices which provides a detailed description of the Services and hours rendered by Contractor. City shall, within thirty (30) days of receiving such statement, review the statement and pay all non-disputed and approved charges. Contractor shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Contractor to submit a timely invoice shall constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Contractor. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.2.1 Retainer. From each approved progress estimate, five percent (5%) will be deducted and retained by the City, and the remainder will be paid to Contractor. All Agreement retainage shall be released and paid to the Contractor and subcontractors pursuant to California Public Contract Code Section 7107. Contractor shall furnish City with labor and material releases from all subcontractors performing work on, or furnishing materials for, the work governed by this Agreement prior to final payment by City. 3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress payment an amount necessary to protect City from loss because of: (1) stop payment notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) Page 95 Contract No. _____________ - 11 - sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled to recover from Contractor under the terms of the Agreement or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums. 3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City. 3.3.5 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative. 3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 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 “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor’s principal place of business and at the Project site. Contractor shall defend, indemnify and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4. 3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $15,000 or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall Page 96 Contract No. _____________ - 12 - be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor. 3.4 Termination of Agreement. 3.4.1 Grounds for Termination. City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Contractor shall be compensated only for those Services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause. 3.4.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request. 3.4.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.5 General Provisions. 3.5.1 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: Contractor: California Commercial Pools, Inc. 2255 E. Auto Centre Drive Glendora, CA 91740 Attn: Brett Smith City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Attn: Shawn Muir, Public Works Department 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 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. Page 97 Contract No. _____________ - 13 - 3.5.2 Indemnification. 3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, 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 Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorneys’ fees and other related costs and expenses except such Claims caused by the sole or active negligence or willful misconduct of the City. 3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the Contractor, the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. 3.5.3 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. In addition to any and all Agreement requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City. 3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.5 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project. Page 98 Contract No. _____________ - 14 - 3.5.6 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties. 3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer. 3.5.8 Construction; References; Captions. 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. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to the City include its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives except as otherwise specified in this Agreement. The captions of the various articles and 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. 3.5.9 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.5.10 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. 3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.5.12 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. 3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.5.14 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. Page 99 Contract No. _____________ - 15 - 3.5.15 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the 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. 3.5.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. [SIGNATURES ON NEXT PAGE] Page 100 CONTRACT NO. _______________ SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND CALIFORNIA COMMERCIAL POOLS, INC. 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 By: L. TODD HILEMAN CITY MANAGER ATTEST: By: NIAMH M. ORTEGA DEPUTY CITY CLERK APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney CALIFORNIA COMMERCIAL POOLS, INC. By: Its: Printed Name: By: Its: Printed Name: ____________________________________ Contractor’s License Number and Classification ____________________________________ DIR Registration Number (if applicable) Page 101 Contract No. _____________ Exhibit B-17 EXHIBIT “A” SCOPE OF SERVICES Resurfacing of pools is maintenance required approximately once every ten years to repair problems like cracks and wearing, while also enhancing and updating the pool's appearance. The 5,622 square foot Recreation Pool at PDAC was constructed in 2011 and has never been resurfaced. In addition, the in-water lighting of the PDAC lap pool must be replaced to maintain compliance with Riverside County codes. The City intends to procure these Services to serve and promote the welfare of its residents. The successful Proposer will be awarded a contract to complete this project by fulfilling the scope of work described in this document. This work includes but is not limited to: • Developing plans for the work to be completed • Acquiring all necessary permits • Preparing the site by protecting existing infrastructure, including removal of hand rails • Demolish and remove existing plaster surface in a manner which preserves to the extent possible, existing tile and rope anchors • Installation of two (2) rows of new 1’ x 1’ white non-skid tile on the pool floor and up the walls in front of both sets of steps • Installation of pebble sheen pool plaster in Arctic White, or similar • Remove 26 in-water lights from PDAC lap pool • Replace in-water lighting with 26 J &J electronics 500-watt pure LED lights or similar product • Most lights require a 150-foot cord. The operator of PDAC will be responsible for performing the pre-work, including draining the pools and creating a clear path to the work sites, as well as refilling and startup. A. Specifications 1. General a. Proposals must be proposed by the square footage of the pool surface including tile work that is required within the surfacing area b. Contractor shall provide all equipment, labor, trucks, and material necessary to perform the required service. No equipment, material or personnel shall be provided by the City to Contractor. c. Contractor shall not begin work on any projects covered under this Contract until a PO has been issued for a specific site within the listing of sites covered under this Contract. d. Contractor will only work between 7:00am and 7:00pm Monday through Saturday, unless otherwise authorized in writing by the City. Contractor shall behave and operate in an environmentally sound and professional way, as to not create damage or cause exposure by virtue of omission. e. Contractor will treat all cracked areas by grinding or v-cutting the cracks to structural soundness and applying an appropriate and approved epoxy crack treatment application, applied professionally according to manufacturers’ specifications. f. All areas where rust is apparent due to rebar bleeding through the cement should be cut vertically down a minimum of two (2) inches into the concrete and horizontally out a minimum of six (6) inches in all directions, and if the offending Page 102 Contract No. _____________ Exhibit B-18 rebar cannot be removed, an appropriate and approved epoxy sealant should be applied to the rebar to prevent future staining prior to re-filling the hole and leveling the area with matching grade materials or better. g. At Contractor's own cost and expense, Contractor shall comply with all laws, ordinances, rules, and regulations of the federal, state and local and OSHA authorities and departments relating to or affecting the work hereunder, and shall secure and obtain any and all permits, licenses, certifications and consents as maybe necessary in connection therewith. h. Contractor will clean up the pool area of any and all project debris and legally dispose of it. Contractor should accordingly factor in proposal a reasonable cost for disposal of project debris and trash. A portable dumpster will be allowed at each site for the duration of the work at that site. Final walk-through will include inspection of pool area for project debris. 2. Plastering a. All work should be done in accordance with guidelines set forth by the National Plasterers Council. (www.npconline.org) b. Contractor and City staff will conduct a thorough walkthrough of each facility after the pools are drained and inspected, prior to Contractor’s work beginning, to ensure full understanding of the situation. Contractor may inspect for themselves prior to this walkthrough to gather information for potential issues but no work should begin until this walkthrough takes place and all parties have observed the condition of the work areas. c. Saw cut around all perimeter tile, lights, returns, lane line anchors, main drains, touch pads, play structure feature anchors and similar features. d. If later full chip-out is deemed unnecessary, Contractor will V-cut all cracks back by saw cutting back to structural soundness and add an appropriate and approved epoxy. Proposals should not necessarily include this cost at all locations but a line on the proposal tabulation form will allow Contractor to state a price for cracks if found. e. REBAR BLEEDING: All areas in the pool shell where rust is apparent due to rebar bleeding into the plaster should be cut vertically down a minimum of two (2) inches into the gunite and horizontally out a minimum of six (6) inches in all directions, and if the offending rebar cannot be removed then an appropriate and approved epoxy sealant should be applied to the rebar to prevent future staining prior to re- filling the hole and leveling the area with matching grade materials or better. f. WATERLINE TILES, ETC: Remove and replace all damaged water line tiles, t-tiles and racing line tiles (replacing only the tiles that are damaged or need to be replaced as described below in relation to code compliance). Contractor is responsible to report any problems with water line tiles, t-tiles and racing line tiles prior to beginning plaster work - including chipping and etching. Contractor is responsible, at its sole cost and expense, for additional tiles broken during the chipping or etching process. Contractor should accordingly factor in its proposal a reasonable cost of incidental tile damage/loss based on their work experience on similar jobs. g. TOE TILES: Remove all non-compliant toe tiles on steps and replace with 2” toe tiles on all steps to comply with the Riverside County Department of Health – Department of Health Standards for Swimming Pools and Spas stipulations for Commercial Pools. Any compliant and non-broken 2” toe tiles may be left in place if possible. Contractor is responsible for additional tiles broken during the chipping or etching process. Contractor should factor in bid a reasonable cost of incidental Page 103 Contract No. _____________ Exhibit B-19 tile damage/loss based on their work experience on similar jobs. h. DAMAGED DEPTH MARKINGS: Replace all damaged pool depth marking tiles with tiles approved by the Riverside County Department of Health Standards for Swimming Pools and Spas for Class B Pools as they relate to the depth in feet and inches. Contractor is responsible for additional tiles broken during the chipping or etching process. Contractor should factor in its proposal a reasonable cost of incidental tile damage/loss based on their work experience on similar jobs. i. ADD DEPTH MARKINGS FOR COMPLIANCE: Add new tiles and/or relocate current tiles, AS NEEDED, to ensure compliance with the Riverside County Department of Health Standards for Swimming Pools and Spas, for Commercial Pools. j. Apply a layer of Bond Kote or equal product with roller per manufacturers’ specifications. k. Re-grout all tile, skimmers, and coping stones as needed with an appropriate and approved product matching in grade and consistency to the existing grout, or better. l. Plaster all pools (mix 6-bag white cement to a 7-bag white marble with no more than 1% calcium) in one monolithically poured application [one work day] per body to a minimum of 3/8” to 1/2“ in thickness, troweled to a smooth finish. m. Install new main drain covers, skimmer basket covers, grates, and return jet covers back in place and angle returns appropriately for cure-phase maintenance. Contractor is responsible to report any problems with broken baskets, return jet covers, main drain, gutters, hardware, or frames prior to beginning plaster work - including chipping and etching. n. Contractor shall provide a five (5) year warranty (materials and workmanship) against plaster delaminating from the subsurface and cover any necessary repairs due to discoloration found during the first thirty days. Contractor will not be responsible for discoloration that presents itself after the first thirty days. o. Contractor to provide certification documentation of main drain per Riverside County Department of Health. Page 104 Contract No. _____________ Exhibit B-20 EXHIBIT “B” SCHEDULE OF SERVICES The term of this Agreement shall be from March 10, 2022, to October 30, 2022, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services Page 105 CONTRACT NO. _______________ EXHIBIT “C” COMPENSATION Page 106 CONTRACT NO. _______________ Exhibit D-1 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to California Commercial Pools, Inc. (hereinafter referred to as the “Contractor”) an agreement for Palm Desert Aquatic Center Pool Resurfacing & Lighting Replacement (Project No. 881-22) (hereinafter referred to as the “Project”). WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated March 10, 2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents. NOW, THEREFORE, we, California Commercial Pools, Inc., the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of Three Hundred Seventy Thousand DOLLARS, ($370,000), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15. Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: (1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or (2) Obtain a bid or bids for completing the Project in accordance with all terms and Page 107 CONTRACT NO. _______________ Exhibit D-2 conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3) Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code. [SIGNATURES ON NEXT PAGE] Page 108 CONTRACT NO. _______________ Exhibit D-3 IN WITNESS WHEREOF, we have hereunto set our hands and seals this 10th day of March 2022. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________. (The above must be filled in by corporate attorney.) THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: (Name and Address of Surety) (Name and Address of Agent or Representative for service of process in California, if different from above) (Telephone number of Surety and Agent or Representative for service of process in California) NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. Page 109 CONTRACT NO. _______________ Exhibit D-4 NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment A notary public or other officer 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. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, 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 of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 110 CONTRACT NO. _______________ Exhibit D-5 NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached. Notary Acknowledgment A notary public or other officer 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. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, 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 of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 111 CONTRACT NO. _______________ Exhibit D-6 PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed March 10, 2022 has awarded to California Commercial Pools, Inc. hereinafter designated as the “Principal,” a contract for the work described as follows: Palm Desert Aquatic Center Pool Resurfacing & Lighting Replacement (Project No. 881- 22) (the “Project”); and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated March 10, 2022 (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of Three Hundred Seventy Thousand Dollars ($370,000.00) 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 said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or Page 112 CONTRACT NO. _______________ Exhibit D-7 relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code. [SIGNATURES ON NEXT PAGE] Page 113 CONTRACT NO. _______________ Exhibit D-8 IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto. NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. Page 114 CONTRACT NO. _______________ Exhibit D-9 NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment A notary public or other officer 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. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, 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 of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 115 CONTRACT NO. _______________ Exhibit D-10 NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of- Attorney to local representatives of the bonding company must also be attached. Notary Acknowledgment A notary public or other officer 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. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, 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 of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 116 1 | Page Lastinger Aquatic Complex, Chapman University CALIFORNIA COMMERCIAL POOLS INC. 2255 E. AUTO CENTRE DRIVE GLENDORA, CA 91740 (909) 394-1280 FAX: (909) 394-4579 Page 117 2 | Page February 3, 2022 Shawn Muir, Management Analyst Parks & Rec Public Works, City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 1. Cover Letter Re: Statement of Qualifications – Palm Desert Aquatic Center Pool Resurfacing & Lighting Replacement Project (Project # 881-22) Dear Mrs. Muir, We are excited about this project and the possibilities of working with the City of Palm Desert on this exciting renovation project. We have been in business constructing commercial swimming pools for over 40 years and have the most experience doing this type of work. We take great pride in the quality construction of our work. Our goal is to create a cohesive and synergistic relationship with your team, to build a project that meets your exacting standards, and completing the construction within the project schedule time frames. Our team is pleased to present this statement of qualifications for this project. Please feel free to call or email me if you have any questions or require further information. We look forward to hearing from you. Please feel free to call me with any questions you may have. Best regards, Brett Smith Vice President of Project Development bsmith@calcommpools.com 626.825.3395 Page 118 3 | Page 2. Certification of Proposal: The undersigned hereby submits its proposal and by doing so, agrees to furnish services to the City in accordance with the RFP, and to be bound by the Terms and conditions of the RFP. Brett Smith, Vice President of California Commercial Pools Inc. 3. Experience and Technical Competence: A. Background: California Commercial Pools, Inc. is a 41-year-old company that specializes in all types of commercial aquatic facilities. Our broad range of experience encompasses all types of projects including, recreational swimming venues, competitive aquatic facilities, water play parks, resort pools and fountains. Completing 30 to 40 projects a year translates to several hundred projects in our thirty-seven years of business. As a result of our background and extensive experience, California Commercial Pools has become the leader in aquatic facility construction on the west coast. Organized to adapt to the varying needs of our clients, we are staffed with competent design professionals, capable estimators, experienced project managers, and seasoned job superintendents. With years of experience, we are flexible in our approach to construction and firm in our commitment to exacting standards and quality. As a result of the number of projects we complete annually and our associations with recognized aquatic design consultants, we are continually on the cutting edge utilizing the latest construction methods, materials, and technologies. Our conservative fiscal management and our measured approach to growth have shaped a stable and confident company, well positioned to dedicate the necessary resources to each individual project. Strong banking and bonding relationships, comprehensive insurance, and safety programs enhance client confidence. B. References: Owner: San Jose Unified School District Project: San Jose Pool Modernizations Page 119 4 | Page Contact: John Perrine, jperrine@sjusd.org Telephone: 408-717-6200 or 408-717-2959 Cost: $5,736,810.00 Scope: 10 School Sites (11 pools total) with Modernization at each school. Re- Plaster, new tile depth markers, some sites with new tile swim lanes and targets, new pool circulation pumps, new VFDs, new heater, new filter system, new chemical controllers, new BMS management system, new starting platforms at 4 sites, new timing system and scoreboard at 1 site, new main drains at all sites. This was a Design Build Project. Owner: City of Fullerton Project: Independence Park Pool Replaster Project Contact: Jose Medina, Associate Engineer Telephone: 714-738-6863 Cost: $1,035,000.00 Scope: 50M Re-tile, Re-plaster, new slot drain and concrete cantilever deck 10 foot section from waterline. All new deck embeds, waterproofing of Gutters and Surge Pit, new inlet fittings, pool expansion joint and Main Drains. Owner: City of Santa Maria Project: Paul Nelson Aquatic Center Contact: Eric Riddiough, Project Manager Telephone: 805-925-0951 x2225 Cost: $629,500.00 Scope: Replaster and retile of 50M comp pool. Replaced floor inlet fittings, new waterproofing in pool gutter, new waterproofing in surge chamber, misc. tile repair on pool perimeter. Rebuilding of main drain sumps to meet code. Small repairs to structure where rebar had rusted. Owner: City of Kingsburg Project: Crandell Pool Improvements Contact: Adam Castaneda, Community Services Director Telephone: 559-897-5821 Cost: $605,500.00 Scope: Re-Tile, Re-plaster 50-meter swimming pool. New Main Drains and new inlet fittings Owner: Anaheim Union High School District Project: Cypress High School & Loara High School Contact: Arturo Lavenant, Jr., Assistant Director of Facilities Telephone: 714-999-5678 Page 120 5 | Page Cost: $2,284,000.00 Scope: Renovation of 25meterX25yard pool at Cypress HS and Loara HS. All new mechanical equipment. All new plumbing lines and pool fittings, fixtures, tile and plaster. Cantilever forming at both sites done by CCP with pool deck concrete by others. Owner: Chaffey Joint Union High School District Project: Chaffey High School Contact: Bobby Slagle, Director of Operations Telephone: 909-988-8511 Cost: $2,135,000.00 Scope: New 30 Meter Comp Pool complete with new pool deck, pool equipment & timing system C. Scope of Services California Commercial Pools Inc. intends to do the following: • Developing plans for the work to be completed • Acquiring and paying for all necessary permits • Preparing the site by protecting existing infrastructure, including removal of hand rails • Demolish and remove existing plaster surface in a manner which preserves to the extent possible, existing tile and rope anchors • Installation of two (2) rows of new 1’ x 1’ white non-skid tile on the pool floor and up the walls in front of both sets of steps • Installation of pebble sheen pool plaster in arctic white or similar • Remove 26 in-water lights from PDAC lap pool • Replace in-water lighting with 26 J&J Electronics 500-watt pure LED lights or similar product • Most lights require a 150’ cord California Commercial Pools Inc. holds a B & C53 license and is DIR registered. California License # 415172 DIR # 1000001406 4. Firm Staffing and Key Personnel A. Staffing: Proposed Project Manager: Lafe Castro has been with California Commercial Pools Inc. for 23 years working as a project manager. Please see his attached resume for more information. Page 121 6 | Page Proposed Superintendent: Terry Anderson has been with California Commercial Pools Inc. for 30 years working as a Superintendent. Please see his attached resume for more information. B. Subcontractors: California Commercial Pools, Inc. intends to subcontract out the removal and re-plastering portion of work to: Aqua Construction Inc. License # 992227 DIR # 1000002113 Aqua Construction has been in business since 2014 and they have been plastering the majority of all the pools that we build. They are familiar with our exacting standards and expectations. California Commercial Pools, Inc. intends to do all other work in-house. 5. Fee Proposal Plans and health department Permit $ 7,500.00 Supervision $ 8,000.00 Misc Labor $10,000.00 Strip Plaster $88,000.00 Tile Repair $10,000.00 Clean pool and prep for plaster $ 7,500.00 Pool Lights $40,000.00 New Plaster $199,000.00 TOTAL BID $370,000.00 No Deviation from the RFP California Commercial Pools Inc. Certifies that there are no deviations from the RFP. Page 122 QUALIFICATIONS: Lafe has been involved in various aspects of construction since 1995 including design, estimating and purchasing. His construction experience includes concrete curb and gutter, foundations, slab on grade, and electrical installations. His pool experience includes water features, concrete in ground and above ground pools, and stainless-steel pool installations. As a Project Manager, Lafe works with sub contractors coordinating scopes of work, assigning contracts, and ensuring superior performance and timely project schedules. He is proficient in scheduling with CPM software. He develops monthly production projections, monthly billing schedules, and prepares job-specific paperwork, including job correspondence, change orders, RFI’s, and RFC’s. While overseeing every detail of the pool’s construction, he works as a liaison between the pool owner, the pool designer, and California Commercial Pools. DESIGN BUILD - 50 METER JOB EXPERIENCE: • Castaic Sports Complex – Castaic, CA • Santa Margarita High School – Rancho Santa Margarita, CA • Cal State Maritime – Vallejo, CA 50 METER JOB EXPERIENCE: • Los Alamitos High School – Los Alamitos, CA • Adelanto High School – Adelanto, CA • Verdugo Park Aquatic Center – Burbank, CA • Silverado High School – Victorville, CA • Bullard High School – Fresno, CA • Cerritos Park Pool – Cerritos, CA • Central High School #10 – Los Angeles, CA DESIGN BUILD JOB EXPERIENCE: • Garces High School, Fresno, CA • Poly Trauma Aquatic Center, Palo Alto, CA • Rancho Las Palmas, Palm Desert, CA • Antelope Valley YMCA, Lancaster, CA • The Plaza, Irvine, CA • Marriott Shadow Ridge, Palm Desert, CA • Fairway Canyon Aquatic Center, Beaumont, CA • Paramount’s Great America Boomerang Bay, Santa Clara, CA • Magic Mountain Tornado Pool, Valencia, CA Lafe Castro Project Manager EDUCATION: California State Polytechnic University, Pomona Construction Management Utah Valley State College General Studies Knorr Systems Aquatic Facilities Operator (AFO Certification) EXPERIENCE: 1999 - Present California Commercial Pools, Inc (Project Manager) 1998 – 1999 Falcon Electric (Project Administrator) 1995 - 1998 Goldstone Enterprises (Concrete Foreman) 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 Page 123 QUALIFICATIONS: Terry has been involved in swimming pool and general construction since 1980 including plumbing, excavating, and mechanical installation. He has worked with California Commercial Pools over the last 29 years in various aspects of pool construction. He oversees a total of 30 employees for the company. Terry brings with him his vast knowledge of Plumbing from his company he owned in the 1980’s. Many owners, especially The City of San Diego call him to review plans for them asking for his expertise. JOB EXPERIENCE: • San Jose Pool Modernizations, San Jose, CA • Laramie High School, Laramie, WY • Wet N Wild, Las Vegas, NV • Memorial Pool Renovation, San Diego, CA • Southwestern College, Chula Vista, CA • Fort Lewis, Fort Lewis, WA • Knott’s Soak City Waterpark, Buena Park, CA • Rancho Las Palmas, Rancho Mirage, CA • Marriot Shadow Ridge, Palm Springs • Montgomery Middle School, El Cajon, CA • Mission Viego YMCA, Mission Viejo, CA • Newport Harbor High School, Newport Beach, CA • Shawdow Hills High School, Indio, CA • Westin Mission Hills, Palm Desert, CA • Marguerite & La Sierra Rec Center, Mission Viejo, CA • Sea World Aquatics, Chula Vista, CA • Foothill High School, Palo Cedro, CA • Westside Pool Natatorium, El Paso, TX • El Rancho Escondido, Santa Fe Springs, CA • Hollywood High School, Los Angeles CA • Vasa Park, Agoura Hills, CA TERRY ANDERSON Project Superintendent Education: El Capitan High School General Education Grossmont College Certifications: OSHA 10 Certification OSHA 30 Certification Excavator, Back Hoe, First Aid, CPR, Trenching & Shoring, Confined Space Excavation, Fall Protection, Scaffolding, Diving Experience: 1992 – Present California Commercial Pools, Inc (Project Superintendent) 1980-1992 Terry’s Pool Plumbing (Owned and operated) 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 Page 124 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 57 meter comp pool with bulkhead, 25 meter swimming pool, splash pad with toys. This world-class aquatic center provides competition-level amenities to serve Oceanside residents, school districts and host regional meets. In addition to competitive amenities, the aquatics center accommodates recreational features for all. Main components include a 57- meter competition pool, diving boards, instructional pool, splash pad, administrative offices, meeting rooms, large multi-purpose events center, locker rooms and outdoor recreational and viewing areas. The Aquatic Center adds to the active synergy already taking place at El Corazon with the SoCal Sport Complex, El Corazon Senior Center, and future residential and commercial development. PROJECT NAME: EL CORAZON AQUATIC CENTER 3306 Senior Center Drive, Oceanside, CA COMPLETION DATE: February 2020 PROJECT: Multi Pool Complex PROJECT BUDGET: $4,689,700 OWNER: City of Oceanside 300 North Coast Highway Oceanside, CA 92054 Brian Thomas, City Engineer bthomas@oceansideca.org (760) 435-5074 REFERENCE: PCL Construction Services 4350 Executive Drive Unit 270 San Diego, CA 92121 Brandon Birgado, PM bdbirgado@pcl.com (407) 488-6731 or (858) 657-3400 POOL DESIGNER: Aquatic Design Group 2226 Faraday Avenue Carlsbad, CA 92008 Scott Ferrell, sferrell@aquaticdesigngroup.com (760) 438-8400 Page 125 EL CORAZON AQUATIC CENTER – CITY OF OCEANSIDE Page 126 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 This was a 50 meter pool with 13 foot deep end section, deep gutter pool with lanes for swimming in both the 50 meter direction and the 25 yard direction. Poured in place 3 meter dive tower, concrete decks with trench drain system and video scoreboard for swim competitions and waterpolo matches. The pool structure was built on 270 caissons due to water table issue and soil conditions. PROJECT NAME: LOS ALAMITOS HIGH SCHOOL 3591 Cerritos, Los Alamitos, CA 90720 KEY PERSONNEL: Lafe Castro, Project Manager Victor Ruiz, Superintendent COMPLETION DATE: 2020 PROJECT TYPE: 50 Meter Competitive Pool CONSTRUCTION COST: $3,853,000.00 OWNER: Los Alamitos Unified School District 10652 Reagan Street Los Alamitos, CA 90720 CJ Knowland, cknowland@losal.org GENERAL CONTRACTOR: Hamel Contracting 26431 Jefferson Suite A Murrieta, CA 92562 Kevin Wiekamp, kwiekamp@hamelinc.com 909-255-0285 POOL DESIGNER: Terracon 5075 Commercial Circle, Suite E Concord, CA 94520 925-609-7224 Page 127 LOS ALAMITOS HIGH SCHOOL Page 128 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 Santa Monica High School Pool is part of the $155 million-dollar SAMOHI Discovery Building Project completed in September of 2021. This Olympic size pool includes a full color outdoor video display for the timing system, custom starting blocks, water polo goals, adjustable bulkhead and industry leading filtration and heating equipment. The 52-meter by 25-yard swimming pool is certified by USA Swimming for full competitive use at the high school, college and Olympic level. The success of this project has been featured in Architect Magazine and the Los Angeles Business Journal. PROJECT NAME: SAMOHI DISCOVERY BUILDING 601 Pico Blvd, Santa Monica, CA. 90405 KEY PERSONNEL: Kurt Jackson, Project Manager SUPERINTENDENT: Grant Talley, Superintendent COMPLETION: September 2021 CONSTRUCTION COST: $4,098,000.00 OWNER: Santa Monica-Malibu Unified School District 1651 16th Street, Santa Monica, CA 90404 GENERAL CONTRACTOR: McCarthy Building Companies 20401 Southwest Birch Street Newport Beach, CA 92660 Stephanie Monsen, smonsen@mccarthy.com (949) 851-8383 POOL DESIGNER: Councilman Hunsaker 601 South Figueroa Street, Ste 500 Los Angeles, CA 90017 Michael Morehart, michaelmorehart@chh20.com (310) 734-2282 Page 129 SAMOHI DISCOVERY BUILDING – SANTA MONICA, CA. Page 130 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 This Project consists of two adjacent 50 meter pools & one 25 yard shallow warm water pool. One of the 50 meter pools is 8 feet deep throughout & considered a competition pool with multiple water polo courses & starting platforms & lane lines in both directions. The other 50 meter pool is considered a multi-purpose pool with a deep well for diving, bulkhead, and multiple water polo and swimming courses. The smaller shallow 75 yard pool is a warm water therapy pool PROJECT NAME: SOUTHWESTERN COMMUNITY COLLEGE 900 Otay Lakes Road, Chula Vista, CA 91910 KEY PERSONNEL: David Jackson, Project Manager Terry Anderson, Superintendent COMPLETION DATE: February 2018 PROJECT TYPE: Multiple Competition Pools CONSTRUCTION COST: $6,083,000.00 OWNER: Southwestern Community College District 900 Otay Lakes Road Chula Vista, CA 91910 GENERAL CONTRACTOR: Balfour Beatty 10620 Treena St., Ste 300 San Diego, CVA 92131 Ken Iacuaniello, PM kiacuaniello@balfourbeattyus.com 619-592-1464 POOL DESIGNER: Aquatic Design Group 2226 Faraday Avenue Carlsbad, CA 92008 Scott Ferrell, sferrell@aquaticdesigngroup.com (760) 438-8400 Page 131 SOUTHWESTERN COMMUNITY COLLEGE – CHULA VISTA, CA. Page 132 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 New Aquatic Center with (4) bodies of water. 1) 25 Yard x 59-Foot-deep cantilever competition pool 2) 25 Yard x 28 Foot Skimmer Instructional Pool 3) Activity Pool with 1,605 Sq. Ft. Surface area, includes 7 water features/toys. Activity Pool has rim flow gutter system 4) Continuous River with 5,335 Sq. Ft. Surface Area and 1 walk-in handicap accessible entrance and 1 stair entrance. The Continuous River has artificial rockwork and center island. This project has and LED pool scoreboard/timing system. Pour, place, and finish roughly 33,000 sqft of new concrete pool decks PROJECT NAME: EL CENTRO AQUATIC CENTER 400-500 Park Avenue, El Centro CA. 92243 COMPLETION DATE: October 2019 PROJECT: Multi Pool Complex PROJECT BUDGET: $4,340,500.00 OWNER: City of El Centro 1275 W Main Street El Centro, CA. 92243 Javy Luna, Associate Engineer jluna@cityofelcentro.org (760) 337-9031 REFERENCE: Hamel Contracting 26431 Jefferson Ave. Murrieta, CA. 92562 Grant Hamel, grant@hamelinc.com (951) 600-2783 POOL DESIGNER: Aquatic Design Group 2226 Faraday Avenue Carlsbad, CA 92008 Scott Ferrell, sferrell@aquaticdesigngroup.com (760) 438-8400 Page 133 EL CENTRO AQUATIC CENTER – CITY OF EL CENTRO Page 134 2255 E Auto Centre Dr. Glendora CA 91740 P 909.394.1280 F 909.394.4579 CA. LIC. 415172 This is a 33 Meter Competitive Swimming pool complete with a timing system and starting blocks for competitive swimming. PROJECT NAME: TEMPLE CITY HIGH SCHOOL 9501 E. Lemon Ave., Temple City, CA KEY PERSONNEL: Kurt Jackson, Project Manager Grant Talley, Superintendent COMPLETION DATE: June 2019 PROJECT TYPE: 33 Meter Competitive Pool CONSTRUCTION COST: $1,316,000.00 OWNER: Temple City Unified School District 9700 Las Tunas Drive Temple City, CA 91780 GENERAL: Fast Track Construction 5711 W. Slauson Ave., Suite 170 Culver City, CA 90230 POOL DESIGNER: Aquatic Design Group 2226 Faraday Ave. Carlsbad, CA 92008 Scott Ferrell 760-438-8400 Page 135 TEMPLE CITY HIGH SCHOOL – Temple City, CA Page 136 SANPABLOAVECARMEL CIRSANPASCUALAVEMASSON ST KRUG AVE RANCHO RD SAN PASCUAL AVEPRIVATE ST SAN PASCUAL AVEPRIVATE ST M AGN ESI A FA LLS DR SEBASTIAN WAYPRIVATE ST SANPABLOAVECARMEL CIRCARMEL CIRHEITZ CTMARTINI C T MONDAVI CTPRIVATE ST PRIVATE ST SAN PASCUAL AVEPRIVATE STCARMEL CIRFRED WARING DR MASSON STPRIVATE STRANCHO RD RANCHO RD PRIVATE RD PRIVATE STPRIVATE ST M A GN ESI A FALLS D R SANPABLOAVEFRED WARING DRSANPABLOAVE CARMEL CIRSANPASCUALAVEMASSON ST KRUG AVE RANCHO RD SAN PASCUAL AVEPRIVATE ST SAN PASCUAL AVEPRIVATE ST M AGN ESI A FA LLS DR SEBASTIAN WAYPRIVATE ST SANPABLOAVECARMEL CIRCARMEL CIRHEITZ CTMARTINI C T MONDAVI CTPRIVATE ST PRIVATE ST SAN PASCUAL AVEPRIVATE STCARMEL CIRFRED WARING DR MASSON STPRIVATE STRANCHO RD RANCHO RD PRIVATE RD PRIVATE STPRIVATE ST M A GN ESI A FALLS D R SANPABLOAVEFRED WARING DR Palm Desert Aquatic Center I VICINITY MAPPage 137 [This page has intentionally been left blank.] Page 138 CITY OF PALM DESERTGeneral Fund Financial Reportto \2021‐22 Annual Budget2021‐22 YTD Budget2021‐22 YTD Actual2021‐22 % to YTD BudgetPrior YTD ActualRevenuesSales Tax19,879,000 9,532,204 8,988,353 94% 7,552,302 ↑ Sales Tax for July -November 2021. Prior Year July -November 2020.Transient Occupancy Tax10,337,678 4,485,905 8,313,555 185% 3,694,767 ↑ Includes payments received through January 31, 2022 for July-December 2021.License, Permits, & Charges3,371,238 1,520,511 1,996,393 131% 1,400,362 ↑ Building permits increased from prior year by $429,345 (69%); Buisness License incrased $87,202 (16%).Property Tax7,598,723 3,778,229 3,903,400 103% 3,677,283 ↑ Receive in January and May of each Fiscal Year. Timing differences for unsecured taxes.Franchise Fees3,000,000 479,242 514,969 107% 499,298 ↑ Receive various times during the year. Interest Income and Rent1634,000 465,605 320,370 69% 470,746 ↓State Subvention4,646,960 3,123 2,243 72% 3,025 ↓All Others3,106,005 3,106,005 2,917,131 94% 3,687,137 ↓Timing differences from various fees.InterFund Transfers In2,932,500 2,305,289 - 0% 1,985,740 Transfers are done various times during the year.TOTAL REVENUES55,506,104 25,676,113 26,956,414 105% 22,970,660 2021‐22 Annual Budget2021‐22 YTD Budget2021‐22 YTD Actual Encumb.2021‐22 % to YTD BudgetPrior YTD ActualExpendituresPolice Services20,000,359 6,992,620 5,591,121 14,409,238 80% 6,821,462 ↓Current Year includes expenditures invoiced for July -October; PY includes July & November expenditures.General Government + Contrib15,239,551 9,639,213 8,386,598 823,390 87% 8,729,026 ↓Includes payment of $2.674M to PERS for the City's annual required payment; prior year paid $3.46MPublic Works6,722,724 3,171,583 3,200,494 1,105,009 101% 3,073,210 ↑ Parks4,590,125 2,097,320 2,085,340 1,617,798 99% 1,997,324 ↑ Landscape Contracts and Medians paymentsBuilding and Safety1,399,750 818,949 859,000 432,272 105% 858,886 ↑ Community Development3,430,739 1,609,023 1,481,131 398,450 92% 1,420,238 ↑ Economic Development3,971,376 1,401,620 1,767,697 1,139,142 126% 1,191,391 ↑ InterFund Transfers Out8,560,435 1,143,314 - - 0% 1,070,000 Done various times during the year.TOTAL GEN FUND EXP63,915,059 26,873,642 23,371,381 19,925,299 87% 25,161,537 Total GF Exp and Encumb 43,296,680 Fire Protection Services17,499,500 2,304,563 1,103,886 15,415,603 48% 1,695,548 Variance result of timing difference of Fire Billing, from Riverside County Fire Department.ExplanationExplanationJanuary 31, 2022 (Year to date)(YTD Budget based on prior year percentage of actual to budget)NEW FORMAT Page 139 CITY OF PALM DESERTGeneral Fund Financial Report ‐ Two Year Comparison for the two years ended 2021‐22 YTD Actual Prior YTD Actual Variance% Comparison of Prior Year Actual RevenuesSales Tax28,988,353 7,552,302 1,436,051 119.01%Sales Tax for July -November 2021. Prior Year July -November 2020.Transient Occupancy Tax8,313,555 3,694,767 4,618,788 225.01%↑ Includes payments received through January 31, 2022 for July-December 2021.License, Permits, & Charges1,996,393 1,400,362 596,031 142.56%↑ Building permits increased from prior year by $429,345 (69%); Buisness License incrased $87,202 Property Tax3,903,400 3,677,283 226,117 106.15%Receive in January and May of each Fiscal Year. Timing differences for unsecured taxes.Franchise Fees514,969 499,298 15,671 103.14%Receive various times during the year. Interest Income and Rent1320,370 470,746 (150,376) 68.06%↓State Subvention2,243 3,025 (782) 74.15%↓All Others2,917,131 3,687,137 (770,006) 79.12%↓Timing differences from various fees.InterFund Transfers In- 1,985,740 (1,985,740) 0.00%Transfers are done various times during the year.TOTAL REVENUES26,956,414 22,970,660 3,985,754 117.35% 2021‐22 YTD Actual Prior YTD Actual Variance% Comparison of Prior Year Actual ExpendituresPolice Services5,591,121 6,821,462 (1,230,341) 81.96%↓Current Year includes expenditures invoiced for July -October; PY includes July & November expenditures.General Government + Contrib8,386,598 8,729,026 (342,428) 96.08%↓Includes payment of $2.674M to PERS for the City's annual required payment; prior year paid $3.46MPublic Works3,200,494 3,073,210 127,284 104.14%↑ Parks2,085,340 1,997,324 88,016 104.41%↑ Landscape Contracts and Medians paymentsBuilding and Safety859,000 858,886 114 100.01%↑ Community Development1,481,131 1,420,238 60,893 104.29%↑ Economic Development1,767,697 1,191,391 576,306 148.37%↑ InterFund Transfers Out- 1,070,000 (1,070,000) 0.00%TOTAL GEN FUND EXP23,371,381 25,161,537 (1,790,156) 92.89% Fire Protection Services1,103,886 1,695,548 (591,662) 65.10%Variance result of timing difference of Fire Billing, from Riverside County Fire Department.January 31, 2022, and January 31, 2021 ExplanationExplanationActual to Actual  ‐ 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000Sales Tax Transient Occupancy Tax License, Permits, & Charges Property Tax Franchise Fees Interest Income and Rent State Subvention All Others InterFund Transfers InFy 2021‐22FY 2020‐21 2-YEAR COMPARISON Page 140 CITY OF PALM DESERTGeneral Fund Financial ReportTO58% of the year complete2021‐22 Annual Budget2021‐22 YTD Budget2021‐22 YTD Actual2021‐22 % to YTD BudgetPrior YTD ActualRevenuesSales Tax 19,879,000 11,596,083 8,988,353 78% 7,552,302 Sales Tax for July -November 2021. Prior Year July -November 2020.Transient Occupancy Tax 10,337,678 6,030,312 8,313,555 138% 3,694,767 ↑ Includes payments received through January 31, 2022 for July-December 2021.License, Permits, & Charges 3,371,238 1,966,556 1,996,393 102% 1,400,362 ↑ Building permits increased from prior year by $429,345 (69%); Buisness License incrased $87,202 (16%).Property Tax 7,598,723 4,432,588 3,903,400 88% 3,677,283 Receive in January and May of each Fiscal Year. Timing differences for unsecured taxes.Franchise Fees3,000,000 1,750,000 514,969 29% 499,298 Receive various times during the year. Interest Income and Rent1634,000 369,833 320,370 87% 470,746 ↓State Subvention 4,646,960 2,710,727 2,243 0% 3,025 ↓All Others 3,106,005 1,811,836 2,917,131 161% 3,687,137 ↓InterFund Transfers In 2,932,500 1,710,625 - 0% 1,985,740 Transfers are done various times during the year.TOTAL REVENUES 55,506,104 32,378,560 26,956,414 83% 22,970,660 2021‐22 Annual Budget2021‐22 YTD Budget2021‐22 YTD Actual Encumb.2021‐22 % to YTD BudgetPrior YTD ActualExpendituresPolice Services20,000,359 11,666,876 5,591,121 14,409,238 48% 6,821,462 ↓Current Year includes expenditures invoiced for July -October; PY includes July & November expenditures.General Government + Contrib15,239,551 8,889,738 8,386,598 823,390 94% 8,729,026 ↓Includes payment of $2.674M to PERS for the City's annual required payment; prior year paid $3.46MPublic Works 6,722,724 3,921,589 3,200,494 1,105,009 82% 3,073,210 ↑ Parks 4,590,125 2,677,573 2,085,340 1,617,798 78% 1,997,324 ↑ Landscape Contracts and Medians paymentsBuilding and Safety 1,399,750 816,521 859,000 432,272 105% 858,886 ↑ Community Development 3,430,739 2,001,264 1,481,131 398,450 74% 1,420,238 ↑ Economic Development 3,971,376 2,316,636 1,767,697 1,139,142 76% 1,191,391 ↑ InterFund Transfers Out 8,560,435 4,993,587 - 0% 1,070,000 TOTAL GEN FUND EXP 63,915,059 37,283,784 23,371,381 19,925,299 63% 25,161,537 Total GF Exp and Encumb 43,296,680 Fire Protection Services 17,499,500 10,208,042 1,103,886 15,415,603 11% 1,695,548 Variance result of timing difference of Fire Billing, from Riverside County Fire Department.January 31, 2022 (year to date) ExplanationYTD Budget based on ORIGINAL FORMAT Page 141 CITY OF PALM DESERTGeneral Fund Financial Reportto Notes:1. Interest earnings are allocated to all funds that have cash balance at year end.2. Sales Tax is paid in estimated monthly payments and adjusted for each quarter: 1st ‐Feb. ‐ May, 2nd ‐June ‐Aug, 3rd‐ Sept ‐Nov, 4th‐ Nov ‐ Feb. 3. TOT is received on monthly basis in arrears, for example January collection is paid in February.4. Property Taxes are collected from property owners in December and April bi‐annually and paid to the City in January and June.5. Department of Motor Vehicle fees are paid twice a year by the State on February and June.6. Franchise Fees are paid through property tax collection from Burtec and are paid in April for Time Warner. Edison and Gas Co. 7. General Gov. includes: City Council, City Clerk, City Attorney, City Manager, Finance, Audit, Human Resources, Information Tech., Insurance8. Economic Development includes: Community Promotions, Market, Visitor Information, Economic Dev. 9. The Information (unaudited) derived from actual revenues and expenditures received by the City during the respective month‐to‐date reported and, are accurate as of the date of the report. Changes to the revenue and expenditures could result from the fiscal year end audit, changes in estimates by payer agency's i.e. Ca. Dept. of Fee and Tax. Any changes will be reflected at the next reporting period. January 31, 2022 (Year to date)Notes to the Financial ReportsPage 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 For the Month Ending December 31, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - CITY OF PALM DESERT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 2,033,173.48 2,000,092.38 0.00 0.00 $4,033,265.86 CAMP Pool Unsettled Trades 0.00 92.38 Cash Dividends and Income December 31, 2021 November 30, 2021 Asset Summary CAMP Pool 4,033,265.86 2,033,173.48 $4,033,265.86 $2,033,173.48 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 158 For the Month Ending December 31, 2021Account Statement CITY OF PALM DESERT - CITY OF PALM DESERT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 2,033,173.48 Opening Balance 12/30/21 12/30/21 Purchase - Incoming Wires 1.00 2,000,000.00 4,033,173.48 12/31/21 01/03/22 Accrual Income Div Reinvestment - Distributions 1.00 92.38 4,033,265.86 4,033,265.86 4,033,265.86 4,033,265.86 2,162,208.72 4,372.51 0.00 (24,400,000.00) 19,304,372.51 9,128,893.35 92.38 4,033,265.86 0.00 0.00 2,000,092.38 2,033,173.48 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance December January-December 0.05% Page 2 Page 159 For the Month Ending December 31, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - DESERT WILLOW GOLF RESORT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 730,304.09 31.22 0.00 0.00 $730,335.31 CAMP Pool Unsettled Trades 0.00 31.22 Cash Dividends and Income December 31, 2021 November 30, 2021 Asset Summary CAMP Pool 730,335.31 730,304.09 $730,335.31 $730,304.09 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 160 For the Month Ending December 31, 2021Account Statement CITY OF PALM DESERT - DESERT WILLOW GOLF RESORT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 730,304.09 Opening Balance 12/31/21 01/03/22 Accrual Income Div Reinvestment - Distributions 1.00 31.22 730,335.31 730,335.31 730,335.31 730,335.31 730,305.10 463.20 0.00 0.00 463.20 729,872.11 31.22 730,335.31 0.00 0.00 31.22 730,304.09 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance December January-December 0.05% Page 2 Page 161 For the Month Ending December 31, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - PALM DESERT HOUSING AUTHORITY Opening Market Value Purchases Redemptions Change in Value Closing Market Value 48,832,562.75 2,087.23 0.00 0.00 $48,834,649.98 CAMP Pool Unsettled Trades 0.00 2,087.23 Cash Dividends and Income December 31, 2021 November 30, 2021 Asset Summary CAMP Pool 48,834,649.98 48,832,562.75 $48,834,649.98 $48,832,562.75 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 162 For the Month Ending December 31, 2021Account Statement CITY OF PALM DESERT - PALM DESERT HOUSING AUTHORITY Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 48,832,562.75 Opening Balance 12/31/21 01/03/22 Accrual Income Div Reinvestment - Distributions 1.00 2,087.23 48,834,649.98 48,834,649.98 48,834,649.98 48,834,649.98 48,832,630.08 30,638.92 0.00 0.00 3,030,638.92 45,804,011.06 2,087.23 48,834,649.98 0.00 0.00 2,087.23 48,832,562.75 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance December January-December 0.05% Page 2 Page 163 For the Month Ending December 31, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - RDA SUCCESSOR AGENCY -- PALM DESERT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 5,729.29 0.24 0.00 0.00 $5,729.53 CAMP Pool Unsettled Trades 0.00 0.24 Cash Dividends and Income December 31, 2021 November 30, 2021 Asset Summary CAMP Pool 5,729.53 5,729.29 $5,729.53 $5,729.29 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 164 For the Month Ending December 31, 2021Account Statement CITY OF PALM DESERT - RDA SUCCESSOR AGENCY -- PALM DESERT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 5,729.29 Opening Balance 12/31/21 01/03/22 Accrual Income Div Reinvestment - Distributions 1.00 0.24 5,729.53 5,729.53 5,729.53 5,729.53 5,729.30 3.64 0.00 0.00 3.64 5,725.89 0.24 5,729.53 0.00 0.00 0.24 5,729.29 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance December January-December 0.05% Page 2 Page 165 1/18/22, 3:45 PM LAIF Regular Monthly Statement file:///H:/Excel Data/CITY FILE/Investments/LAIF Regular Monthly Statement.html 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 18, 2022 LAIF Home PMIA Average Monthly Yields Tran Type Definitions 0.00 Beginning Balance:47,040,689.58 December 2021 Statement Account Summary Total Deposit: Total Withdrawal:0.00 Ending Balance:47,040,689.58 CITY OF PALM DESERT CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Page 166 1/18/22, 3:47 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 18, 2022 LAIF Home PMIA Average Monthly Yields Tran Type Definitions 0.00 Beginning Balance:972,035.74 December 2021 Statement Account Summary Total Deposit: Total Withdrawal:0.00 Ending Balance:972,035.74 PALM DESERT HOUSING AUTHORITY CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Page 167 1/18/22, 3:46 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January 18, 2022 LAIF Home PMIA Average Monthly Yields Tran Type Definitions 0.00 Beginning Balance:742.51 December 2021 Statement Account Summary Total Deposit: Total Withdrawal:0.00 Ending Balance:742.51 S/A TO THE PALM DESERT REDEVELOPMENT AGENCY FINANCE DIRECTOR 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Page 168 Parameters:Query: Fund Summary County of Riverside Treasurer-Tax CollectorFund Summary Report Run Date:User:Susan From : To : As at : Bank: oneof Account Number: Counterparty: equalto 04-Jan-2022 02:49:57 PM 01-Dec-2021 31-Dec-2021 04-Jan-2022 Balance Calculation Based On:Value Date TotalBalance Forward Totaltrans_typeAccount NameAccount Numbe Balance ForwardAccount NameAccount Number Total ReceiptsTotal Receipts Total PaymentsTotal Payments City Of Palm Desert $79,432,865.70 $39,742.85 $0.00 $79,472,608.55 RDA Successor Agcy Palm Desert $336.12 $0.17 $0.00 $336.29 Grand Total:$79,433,201.82 $39,743.02 $0.00 $79,472,944.84 Printed on 1/4/2022 Page 1 of 1End of Report Page 169 [This page has intentionally been left blank.] Page 170 City of Palm Desert Investments Summary January 2022 The City’s investment portfolio is detailed below. Investment transactions were executed in accordance with the California State Government Code, the City’s Investment Policy and all bond indentures. Cash is sufficient to meet the next three months of expenditures until additional revenues are collected. Investment Portfolio: $ Millions Beginning Ending Book Value Purchases & Redemptions & Book Value % of Asset Class (1/1/22)* Deposits Withdrawals (1/31/22) Portfolio Agencies 30.95$ 30.95$ 11% Corporates 39.99 39.99 14% Negotiable CD 5.00 5.00 2% CAMP Pool 4.76 4.76 2% LAIF Pool 47.04 0.03 47.07 17% County Pool 79.47 0.01 79.48 28% Custodian ®51.20 51.20 18% Trustee ®4.80 4.80 2% Cash 11.29 7.90 (1.71) 17.48 6% Total 274.49$ 7.94$ (1.71)$ 280.72$ 100% ® = Restricted funds based upon bond indenture terms. * The ending book value for the last summary presented in October 2021 was $271.4. The increase is attributable to sales tax and property tax deposits. From this point forward the table above will reflect the transition from prior ending as the current beginning value. Changes to the portfolio during the month of January include the addition of $2.0M in sales tax and $5.9M in property tax. Withdrawals include costs associated with the construction at President’s Plaza Parking Lot. Portfolio Allocations, Maturities and Performance: 50% 21% 17% 12% Local Govt Restricted… Corporate Agency Investment Allocation - 5 10 9M 1Y 2Y 3Y 4Y 5Y Investment Maturity 0 0.2 0.4 0.6 0.8 1 1-Jul 1-Aug 1-Sep 1-Oct 1-Nov 1-Dec 1-Jan Performance -Total Portfolio City Yield LAIF Yield 1Y T-Bill Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 For the Month Ending January 31, 2022Account Statement - Transaction Summary CITY OF PALM DESERT - CITY OF PALM DESERT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 4,033,265.86 175.12 0.00 0.00 $4,033,440.98 CAMP Pool Unsettled Trades 0.00 175.12 Cash Dividends and Income January 31, 2022 December 31, 2021 Asset Summary CAMP Pool 4,033,440.98 4,033,265.86 $4,033,440.98 $4,033,265.86 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 187 For the Month Ending January 31, 2022Account Statement CITY OF PALM DESERT - CITY OF PALM DESERT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 4,033,265.86 Opening Balance 01/31/22 02/01/22 Accrual Income Div Reinvestment - Distributions 1.00 175.12 4,033,440.98 4,033,440.98 4,033,440.98 4,033,440.98 4,033,271.51 175.12 0.00 0.00 175.12 4,033,265.86 175.12 4,033,440.98 0.00 0.00 175.12 4,033,265.86 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance January January-January 0.05% Page 2 Page 188 For the Month Ending January 31, 2022Account Statement - Transaction Summary CITY OF PALM DESERT - DESERT WILLOW GOLF RESORT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 730,335.31 31.71 0.00 0.00 $730,367.02 CAMP Pool Unsettled Trades 0.00 31.71 Cash Dividends and Income January 31, 2022 December 31, 2021 Asset Summary CAMP Pool 730,367.02 730,335.31 $730,367.02 $730,335.31 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 189 For the Month Ending January 31, 2022Account Statement CITY OF PALM DESERT - DESERT WILLOW GOLF RESORT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 730,335.31 Opening Balance 01/31/22 02/01/22 Accrual Income Div Reinvestment - Distributions 1.00 31.71 730,367.02 730,367.02 730,367.02 730,367.02 730,336.33 31.71 0.00 0.00 31.71 730,335.31 31.71 730,367.02 0.00 0.00 31.71 730,335.31 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance January January-January 0.05% Account 553-04 Page 2 Page 190 For the Month Ending January 31, 2022Account Statement - Transaction Summary CITY OF PALM DESERT - PALM DESERT HOUSING AUTHORITY Opening Market Value Purchases Redemptions Change in Value Closing Market Value 48,834,649.98 2,120.40 0.00 0.00 $48,836,770.38 CAMP Pool Unsettled Trades 0.00 2,120.40 Cash Dividends and Income January 31, 2022 December 31, 2021 Asset Summary CAMP Pool 48,836,770.38 48,834,649.98 $48,836,770.38 $48,834,649.98 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 191 For the Month Ending January 31, 2022Account Statement CITY OF PALM DESERT - PALM DESERT HOUSING AUTHORITY Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 48,834,649.98 Opening Balance 01/31/22 02/01/22 Accrual Income Div Reinvestment - Distributions 1.00 2,120.40 48,836,770.38 48,836,770.38 48,836,770.38 48,836,770.38 48,834,718.38 2,120.40 0.00 0.00 2,120.40 48,834,649.98 2,120.40 48,836,770.38 0.00 0.00 2,120.40 48,834,649.98 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance January January-January 0.05% Page 2 Page 192 For the Month Ending January 31, 2022Account Statement - Transaction Summary CITY OF PALM DESERT - RDA SUCCESSOR AGENCY -- PALM DESERT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 5,729.53 0.25 0.00 0.00 $5,729.78 CAMP Pool Unsettled Trades 0.00 0.25 Cash Dividends and Income January 31, 2022 December 31, 2021 Asset Summary CAMP Pool 5,729.78 5,729.53 $5,729.78 $5,729.53 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 193 For the Month Ending January 31, 2022Account Statement CITY OF PALM DESERT - RDA SUCCESSOR AGENCY -- PALM DESERT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 5,729.53 Opening Balance 01/31/22 02/01/22 Accrual Income Div Reinvestment - Distributions 1.00 0.25 5,729.78 5,729.78 5,729.78 5,729.78 5,729.54 0.25 0.00 0.00 0.25 5,729.53 0.25 5,729.78 0.00 0.00 0.25 5,729.53 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance January January-January 0.05% Page 2 Page 194 2/1/22, 12:13 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 February 01, 2022 LAIF Home PMIA Average Monthly Yields January 2022 Statement Tran Type Definitions Effective Date Transaction Date Tran Type Confirm Number Web Confirm Number Authorized Caller Amount 1/14/2022 1/13/2022 QRD 1695625 N/A SYSTEM 29,239.03 Account Summary Total Deposit:29,239.03 Beginning Balance:47,040,689.58 Total Withdrawal:0.00 Ending Balance:47,069,928.61 CITY OF PALM DESERT CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Page 195 2/1/22, 12:15 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 February 01, 2022 LAIF Home PMIA Average Monthly Yields January 2022 Statement Tran Type Definitions Effective Date Transaction Date Tran Type Confirm Number Web Confirm Number Authorized Caller Amount 1/14/2022 1/13/2022 QRD 1694568 N/A SYSTEM 0.43 Account Summary Total Deposit:0.43 Beginning Balance:742.51 Total Withdrawal:0.00 Ending Balance:742.94 S/A TO THE PALM DESERT REDEVELOPMENT AGENCY FINANCE DIRECTOR 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Page 196 2/1/22, 12:16 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 February 01, 2022 LAIF Home PMIA Average Monthly Yields January 2022 Statement Tran Type Definitions Effective Date Transaction Date Tran Type Confirm Number Web Confirm Number Authorized Caller Amount 1/14/2022 1/13/2022 QRD 1694145 N/A SYSTEM 559.60 Account Summary Total Deposit:559.60 Beginning Balance:972,035.74 Total Withdrawal:0.00 Ending Balance:972,595.34 PALM DESERT HOUSING AUTHORITY CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 Page 197 Parameters:Query: Fund Summary County of Riverside Treasurer-Tax CollectorFund Summary Report Run Date:User:Susan From : To : As at : Bank: oneof Account Number: Counterparty: equalto 04-Feb-2022 11:43:02 AM 01-Jan-2022 31-Jan-2022 04-Feb-2022 Balance Calculation Based On:Value Date TotalBalance Forward Totaltrans_typeAccount NameAccount Numbe Balance ForwardAccount NameAccount Number Total ReceiptsTotal Receipts Total PaymentsTotal Payments City Of Palm Desert $79,472,608.55 $5,422.60 $0.00 $79,478,031.15 RDA Successor Agcy Palm Desert $336.29 $0.02 $0.00 $336.31 Grand Total:$79,472,944.84 $5,422.62 $0.00 $79,478,367.46 Printed on 2/4/2022 Page 1 of 1End of Report Page 198 Page 199 Page 200 Page 201 Page 202 Page 203 Page 204 Page 205 Page 206 Page 207 Page 208 Page 209 Page 210 Page 211 Page 212 Page 213 For the Month Ending November 30, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - CITY OF PALM DESERT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 4,033,083.46 90.02 (2,000,000.00) 0.00 $2,033,173.48 CAMP Pool Unsettled Trades 0.00 90.02 Cash Dividends and Income November 30, 2021 October 31, 2021 Asset Summary CAMP Pool 2,033,173.48 4,033,083.46 $2,033,173.48 $4,033,083.46 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 214 For the Month Ending November 30, 2021Account Statement CITY OF PALM DESERT - CITY OF PALM DESERT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 4,033,083.46 Opening Balance 11/03/21 11/03/21 Redemption - Outgoing Wires 1.00 (2,000,000.00) 2,033,083.46 11/30/21 12/01/21 Accrual Income Div Reinvestment - Distributions 1.00 90.02 2,033,173.48 2,033,173.48 2,033,173.48 2,033,173.48 2,166,419.79 4,280.13 0.00 (24,400,000.00) 17,304,280.13 9,128,893.35 90.02 2,033,173.48 0.00 (2,000,000.00) 90.02 4,033,083.46 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance November January-November 0.05% Page 2 Page 215 For the Month Ending November 30, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - DESERT WILLOW GOLF RESORT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 730,273.72 30.37 0.00 0.00 $730,304.09 CAMP Pool Unsettled Trades 0.00 30.37 Cash Dividends and Income November 30, 2021 October 31, 2021 Asset Summary CAMP Pool 730,304.09 730,273.72 $730,304.09 $730,273.72 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 216 For the Month Ending November 30, 2021Account Statement CITY OF PALM DESERT - DESERT WILLOW GOLF RESORT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 730,273.72 Opening Balance 11/30/21 12/01/21 Accrual Income Div Reinvestment - Distributions 1.00 30.37 730,304.09 730,304.09 730,304.09 730,304.09 730,274.73 431.98 0.00 0.00 431.98 729,872.11 30.37 730,304.09 0.00 0.00 30.37 730,273.72 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance November January-November 0.05% Page 2 Page 217 For the Month Ending November 30, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - PALM DESERT HOUSING AUTHORITY Opening Market Value Purchases Redemptions Change in Value Closing Market Value 48,830,532.29 2,030.46 0.00 0.00 $48,832,562.75 CAMP Pool Unsettled Trades 0.00 2,030.46 Cash Dividends and Income November 30, 2021 October 31, 2021 Asset Summary CAMP Pool 48,832,562.75 48,830,532.29 $48,832,562.75 $48,830,532.29 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 218 For the Month Ending November 30, 2021Account Statement CITY OF PALM DESERT - PALM DESERT HOUSING AUTHORITY Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 48,830,532.29 Opening Balance 11/30/21 12/01/21 Accrual Income Div Reinvestment - Distributions 1.00 2,030.46 48,832,562.75 48,832,562.75 48,832,562.75 48,832,562.75 48,830,599.97 28,551.69 0.00 0.00 3,028,551.69 45,804,011.06 2,030.46 48,832,562.75 0.00 0.00 2,030.46 48,830,532.29 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance November January-November 0.05% Page 2 Page 219 For the Month Ending November 30, 2021Account Statement - Transaction Summary CITY OF PALM DESERT - RDA SUCCESSOR AGENCY -- PALM DESERT Opening Market Value Purchases Redemptions Change in Value Closing Market Value 5,729.05 0.24 0.00 0.00 $5,729.29 CAMP Pool Unsettled Trades 0.00 0.24 Cash Dividends and Income November 30, 2021 October 31, 2021 Asset Summary CAMP Pool 5,729.29 5,729.05 $5,729.29 $5,729.05 Total Asset Allocation 100.00% CAMP Pool Page 1 Page 220 For the Month Ending November 30, 2021Account Statement CITY OF PALM DESERT - RDA SUCCESSOR AGENCY -- PALM DESERT Total Settlement Dollar AmountShare or Trade Shares OwnedDate Transaction Description of TransactionUnit PriceDate CAMP Pool 5,729.05 Opening Balance 11/30/21 12/01/21 Accrual Income Div Reinvestment - Distributions 1.00 0.24 5,729.29 5,729.29 5,729.29 5,729.29 5,729.06 3.40 0.00 0.00 3.40 5,725.89 0.24 5,729.29 0.00 0.00 0.24 5,729.05 Monthly Distribution Yield Average Monthly Balance Closing Balance Fiscal YTDMonth of Cash Dividends and Income Closing Balance Check Disbursements Redemptions (Excl. Checks) Purchases Opening Balance Closing Balance November January-November 0.05% Page 2 Page 221 12/1/21, 4:25 PM California State Treasurer Fiona Ma, CPA Local Agency In vestment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916)653-3001 CITY OF PALM DESERT CITY TREASURER 73-510 FRED WARING DRIVE PALM DESERT, CA 92260-2578 November 2021 Statement Effective Date 11/17/2021 Tr . Tran C fi ansaction Type on arm Date Number l 1/16/2021 RW 1690560 Account Summary_ Total Deposit: LAIF Regular Monthly Statement Web Confirm Number NIA December 0 I, 2021 LAIFHome PMIA Average MonthlY. Yields Tran Type Definitions Authorized Caller THOMAS METZ 0.00 Beginning Balance: Total Withdrawal: -2,000,000.00 Ending Balance: https://laifms.treasurer.ca.gov/RegularStatement.aspx Amount -2,000,000.00 49,040,689.58 47,040,689.58 1/1 Page 222 12/1/21, 4:35 PM California State Treasurer Fiona Ma1 CPA LAIF Regular Monthly Statement December 0 1, 2021 LAIF Home PMIA Average MonthlY. Yields Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916)653-3001 SIA TO THE PALM DESERT REDEVELOPMENT AGENCY FINANCE DrRECTOR 73-510 FRED WARING ORNEPALM DESERT, CA 92260-2578 November 2021 Statement Account Summary: Total Deposit: Total Withdrawal: https://laifms.treasurer.ca.gov/RegularStatement.aspx Tran J'Y.pe Definitions 0.00 Beginning Balance: 0.00 Ending Balance: 742.51 742.51 1/1 Page 223 12/1/21, 4:37 PM California State Treasurer Fiona Ma1 CPA Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 PALM DESERT HOUSING AUTHORITY CITY TREASURER 73-510 FRED WARING DRIVEPALM DESERT, CA 92260-2578 November 2021 Statement Account Summary: Total Deposit: Total Withdrawal: https://laifms.treasurer.ca.gov/RegularStatement.aspx LAIF Regular Monthly Statement December 0 1, 2021 LAIF Home PMIA Average MonthlY. Yields Tran TY.Pe Definitions 0.00 Beginning Balance: 0.00 Ending Balance: 972,035.74 972,035.74 1/1 Page 224 Fund Summary Report Parameters: Run Date: From: Query: Fund Summary Bank: oneof Account Number: Counterparty: equalto 02-Dec-2021 03:51:06 PM 01-Nov-2021 To : 30-Nov-2021 As at: 02·Dec·2021 Balance Calculation Based On: Value Date County of Riverside Treasurer-Tax Collector User: Susan Account Number Account Name Balance Forward Total Receipts Total Payments Total 052460 052470 Printed on 12/2/2021 City Of Palm Desert RDA Successor Agcy Palm Desert Grand Total: $79,432,865.70 $336.12 $79,433,201.82 End of Report $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $79,432,865.70 $336.12 $79,433,201.82 Page I of I Page 225 [This page has intentionally been left blank.] Page 226 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT DATE: March 10, 2022 PREPARED BY: Shawn Muir, Management Analyst REQUEST: Consideration to Amend Ordinance No. 1254, revising Chapter 11.01.080 (Parks, Prohibited conduct generally) of the Palm Desert Municipal Code relating to the improper feeding of wild or domestic birds Recommendation By Minute Motion, waive further reading and pass to second reading Ordinance No. 1254 revising Chapter 11.01.080 (Parks, Prohibited conduct generally) of the Palm Desert Municipal Code. Committee/Commission Recommendation The Municipal Code amendment was presented to the Parks and Recreation Commission at the October 5, 2021 meeting. The recommendation was approved unanimously. Background Analysis The lagoon at Civic Center Park naturally attracts wild birds as a stopover point during their annual migration. If left unattended, these birds will naturally fend for themselves by foraging for natural food such as grass, seeds and insects for a brief period of time and continue their natural migration. Unfortunately, well-meaning residents of the Coachella Valley bring bread, crackers, and other types of food to the park to specifically feed these birds. This regular overfeeding has resulted in the wild birds remaining in the park due to a plentiful food supply and has increased the number of birds drawn to the area. The ever-increasing flock of ducks, ravens, pigeons, and turtles has resulted in an unhealthy and unsightly condition at the lagoon and throughout the park. There is constantly excrement along the walking paths and grass areas adjoining the lagoon that have created slippery conditions, offensive odors, and the need for additional maintenance. As such, staff also responds to various complaints from the public regarding this issue. Other issues from the overpopulation of birds at the lagoon include excessive clogging of filters and the sprinkler system. This requires constant and costly maintenance work stemming from feathers, turtle shells, and excrement. Not only does this cause Page 227 March 10, 2022 – Staff Report Amendment to Ordinance 11.01.080 Page 2 of 3 challenges for park maintenance staff, it is also detrimental to the health of the birds. Feeding migratory birds, crackers and bread causes them to become overweight and unable to fly. This, in turn, prohibits the flock from following their natural migration period and makes them unable to flee from predators that enter the park. Additionally, as birds at the lagoon begin to rely on daily feedings, they can go hungry when park goers stop attending the lagoon due to inclement weather. In March of 2013, City Council approved Ordinance No. 1254 (Chapter 11.01.080 of the Municipal Code) which prohibited feeding birds anything except City provided food. At that time staff purchased appropriate wild bird food and installed several food dispensers and signage to educate the public on the municipal code. Over time, these dispensers have been vandalized, destroying the dispenser and stealing the money inside. Staff attempted to continue to replace the dispensers but now they are no longer being manufactured. As well, staff reported that although proper food was provided for the public to feed the wildlife, they continued to provide unhealthy snacks and now the population is excessively overgrown. After careful evaluation, it was determined that replacing the vandalized dispensers is costly and the maintenance time is extremely consuming. Staff is recommending amending the Ordinance to prohibit any type of feeding of the wildlife population and instead install educational signage on why it is not healthy to feed wild birds and ducks in public parks. For reference, attachment No. 1 provides the redline revision to Chapter 11.01.080 of the Municipal Code whereas attachment No. 2 shows a clean version. Fiscal Analysis The Staff recommendation will have a fiscal impact related to reduced maintenance required in and along the Civic Center Park pond. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves Robert W. Hargreaves City Attorney Andy Ramirez Andy Ramirez, Deputy Director of Public Works N/A Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman Page 228 March 10, 2022 – Staff Report Amendment to Ordinance 11.01.080 Page 3 of 3 Page 229 Attachment 1 WILDLIFE FEEDING ORDINANCE (REDLINE VERSION) ORDINANCE NO. ______________________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 11.01.080 (PARKS, PROHIBITED CONDUCT GENERALLY) AS RELATED TO FEEDING OF WILD OR DOMESTIC BIRDS AND/OR WATERFOWL IN CITY PARKS WHEREAS, in March of 2013, the City Council approved Ordinance No. 1254 (Chapter 11.01.080 of the Municipal Code) which prohibited feeding birds anything except City provided food.; and WHEREAS, the City purchased appropriate wild bird food and installed several food dispensers and signage to educate the public on the municipal code. Over time, these dispensers have been vandalized monthly, destroying the dispenser and stealing the money inside; and WHEREAS, replacing the dispensers is costly and the maintenance time consuming, particularly once vandalized. Amending the Ordinance would prohibit any type of feeding of the wildlife population and instead install educational signage on why it is not healthy to feed wild birds and ducks in public parks. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Recitals. The City Council finds that the above recitals are true and correct and, accordingly, are incorporated as a material part of this Ordinance. Section 2. CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) because this ordinance is merely clarifying existing law and making minor changes to the City’s existing Municipal Code and pursuant to 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because these clarifications and minor modifications to the City’s Municipal Code have no potential for resulting in physical change to the environment, directly or indirectly. Section 3. Amendment to Municipal Code. Section U of Chapter 11.01.080 of the City of Palm Desert, California, Municipal Code shall be amended and restated to read as follows: “U. Hunt, frighten, chase, set snare for, catch, injure or destroy any animal or bird, or destroy, remove or disturb any of the young or eggs of same, or injure or Page 230 Attachment 1 – Wildlife Feeding Ordinance (Redline Version) Page 2 of 3 maltreat any domestic or other animal. Maltreatment shall include, but is not limited to, improper feeding of wild or domestic birds and/or fowl. Improper feeding is deemed to be providing or offering any type of food or feed other than that which is provided by the city;” Section 4. Amendment to Municipal Code. Section Z is hereby added to Chapter 11.01.080 of the City of Palm Desert, California, Municipal Code to read as follows: “Z. No person shall feed or cause to be fed or leave food for consumption by an wild or domestic birds and/or fowl.” Section 5. Severability. If any section, subsection, clause or phrase of this Ordinance or any part thereof is for any reason held to be invalid, unconstitutional, or unenforceable by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of the Ordinance. The City Council declares that it would have passed each section, subsection, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause or phrase would be declared invalid, unconstitutional or unenforceable. Section 6. 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 effective 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 this ______ day of ________, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ JAN C. HARNIK, MAYOR Page 231 Attachment 1 – Wildlife Feeding Ordinance (Redline Version) Page 3 of 3 ATTEST: _________________________________ NIAMH M. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 232 Attachment 2 WILDLIFE FEEDING ORDINANCE (CLEAN VERSION) ORDINANCE NO. ______________________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 11.01.080 (PARKS, PROHIBITED CONDUCT GENERALLY) AS RELATED TO FEEDING OF WILD OR DOMESTIC BIRDS AND/OR WATERFOWL IN CITY PARKS WHEREAS, in March of 2013, the City Council approved Ordinance No. 1254 (Chapter 11.01.080 of the Municipal Code) which prohibited feeding birds anything except City provided food.; and WHEREAS, the City purchased appropriate wild bird food and installed several food dispensers and signage to educate the public on the municipal code. Over time, these dispensers have been vandalized monthly, destroying the dispenser and stealing the money inside; and WHEREAS, replacing the dispensers is costly and the maintenance time consuming, particularly once vandalized. Amending the Ordinance would prohibit any type of feeding of the wildlife population and instead install educational signage on why it is not healthy to feed wild birds and ducks in public parks. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Recitals. The City Council finds that the above recitals are true and correct and, accordingly, are incorporated as a material part of this Ordinance. Section 2. CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) because this ordinance is merely clarifying existing law and making minor changes to the City’s existing Municipal Code and pursuant to 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because these clarifications and minor modifications to the City’s Municipal Code have no potential for resulting in physical change to the environment, directly or indirectly. Section 3. Amendment to Municipal Code. Section U of Chapter 11.01.080 of the City of Palm Desert, California, Municipal Code shall be amended and restated to read as follows: “U. Hunt, frighten, chase, set snare for, catch, injure or destroy any animal or bird, or destroy, remove or disturb any of the young or eggs of same, or injure or Page 233 Attachment 2 – Wildlife Feeding Ordinance (Clean Version) Page 2 of 3 maltreat any domestic or other animal;” Section 4. Amendment to Municipal Code. Section Z is hereby added to Chapter 11.01.080 of the City of Palm Desert, California, Municipal Code to read as follows: “Z. No person shall feed or cause to be fed or leave food for consumption by an wild or domestic birds and/or fowl.” Section 5. Severability. If any section, subsection, clause or phrase of this Ordinance or any part thereof is for any reason held to be invalid, unconstitutional, or unenforceable by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portion of the Ordinance. The City Council declares that it would have passed each section, subsection, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, sentence, clause or phrase would be declared invalid, unconstitutional or unenforceable. Section 6. 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 effective 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 this ______ day of ________, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ JAN C. HARNIK, MAYOR ATTEST: Page 234 Attachment 2 – Wildlife Feeding Ordinance (Clean Version) Page 3 of 3 _________________________________ NIAMH M. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 235 [This page has intentionally been left blank.] Page 236 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT DATE: March 10, 2022 PREPARED BY: Rosie Lua, Planning Manager REQUEST: Review recommended changes to the development standards of the R-2 (Mixed Residential District) and direct staff to initiate a Zoning Ordinance Amendment in Chapter 25.10 of the municipal code. Recommendation By minute motion, direct staff to initiate a Zoning Ordinance Amendment (ZOA) to modify the development standards of the R-2 (Mixed Residential District) Zoning District in Chapter 25.10 of the municipal code. Strategic Plan • Land Use, Housing & Open Space – Priority 5: “Utilize progressive land use policies and standards to support ongoing and future needs.” Background Analysis The R-2 (Mixed Residential District) development standards related to height and number of stories are a focus of the City. Recently, concerns from the public have been raised related to the zoning designation changes of properties previously zoned R-1 and the development standard changes that increased the number of stories and heights in R-2 zoning that occurred in 2017. The recent construction of a second-story home addition on El Cortez Way has some residents concerned that the development standards of the R-2 zoning designation has allowances for two-story homes as a permitted use (up to 30 feet high and 2.5 stories maximum) without public notification or design standards. The concerns that have come forth are mainly related to the development standards of the R-2 zoning that changes the character of their existing neighborhoods. The staff’s recommendation to the City Council has considered these concerns. Table 1 below provides a historical timeline of zoning changes from R-1 (Single-Family Residential) to R-2 (Mixed Use Residential) including General Plan and Zoning District changes that occurred as a result of the Zoning Consistency Update on August 24, 2017. This change occurred directly after the adoption of the City’s General Plan Update which was accompanied by an Environmental Impact Report (EIR), that considered land uses and its impacts to those communities. These City actions, inclusive of a General Plan Update, EIR, and Zoning Consistency Update followed all proper state and municipal code procedures for public notifications and hearings requirements for adoption. Page 237 March 10, 2022 – Staff Report Recommendations to R-2 Development Standards Page 2 of 4 Table 1 History of Areas with Zoning Changes from R-1 (Single-Family Residential) to R-2 (Mixed Use Residential) Year General Plan/Zoning Land Use Designation Development Standards Prior to November 16, 2016 General Plan R-M, Medium Density Residential None Zoning R-1, Single-Family Residential District -Maximum height 15 feet (18 feet with approval of Architectural Review Commission (ARC)) -Single story -Design standards limited to screening of roof equipment -No public hearings required for ARC Post November 16, 2016 (General Plan adoption) General Plan Update Small Town Neighborhood 2.5 maximum No. of stories Zoning R-1, Single-Family Residential District -Maximum height 15 feet (18 feet with approval of ARC) -Single story -Design standards limited to screening of roof equipment -No public hearings required for ARC After August 24, 2017 General Plan Small Town Neighborhood 2.5 maximum No. of stories Zoning Consistency Update R-2, Mixed Residential District -Maximum height 30 feet -2.5 maximum no. of stories -Design standards limited to screening of roof equipment -No ARC process/No public hearings required As shown in Table 1, after August 24, 2017, the R-2 Zoning District included a modification to the development standards to align with the allowances provided in the General Plan land use designation of a Small Town Neighborhood, which increased the number of stories to a maximum of 2.5 stories. The R-2 development standards have an outright permitted height of 30 feet and a maximum of 2.5 stories. It should be noted that constructing a new single-family home or constructing a second story is a ministerial approval (staff level approval) so does not require a public hearing notice. The municipal code does not incorporate design standards to regulate ministerial type approvals except for requiring the screening of all roof equipment. On the other hand, if an applicant is constructing multiple units in an R-2 zoned property, a public hearing and approval of the Planning Commission is required, regardless if it is a single-story or multi-story building. Page 238 March 10, 2022 – Staff Report Recommendations to R-2 Development Standards Page 3 of 4 Discussion Staff has reviewed the concerns of the residents and criteria below for a recommendation to the City Council: 1) Analyzed the Small Town Neighborhood General Plan land use designation and current R-2 (Mixed Residential District) for consistency. 2) Evaluated the reduction of the height and number of stories for the R-2 that impacts the entire City. 3) Reviewed the public notification process for implementation. 4) Studied potential design guidelines for second story homes. After review of the above stated items, staff is recommending the following to the City Council: 1) Modify Table 25.10-3 (Residential Zoning District Development Standards) for R-2 as shown below: A. Reduce height to 15 feet and require a discretionary ARC approval for heights above 15 feet up to 30 feet maximum. B. Reduce the Number of Stories from 2.5 to 2. C. Implement a public notification for projects above 15 feet within the R-2 Zoning District, requiring public notification to immediately adjacent property owners 10 days prior to the ARC meeting. 2) Authorize the ARC to review the second-story design elements to ensure impacts to the adjacent neighbors are minimized. Table 25.10-3: Residential Zoning District Development Standards Measurement/Zoning District RE3 R-13 R-2 R-3 R-1M1 HPR4 P.R.5 ≥1 ac ≥15,000 sf ≥10,000 sf, but ≤15,000 sf <10,000 sf Building Measurements Height, max 15′ (18′ ARC)7 15′ (18′ ARC)7 15′ (18′ ARC)7 15′ (18′ ARC) 30′ 15’ (30’ ARC)8 40′ 18′ _ 40′ Number of Stories, max. 1 1 1 2 2.5 2 3 1 1 3 8 Allowable building height is 15 feet, above 15 feet to a max of 30 feet only with approval by the Architectural Review Commission (ARC). Public notification to immediately adjacent property owners 10 days prior to the ARC meeting. Public Input Page 239 March 10, 2022 – Staff Report Recommendations to R-2 Development Standards Page 4 of 4 Staff has received several letters from the public concerning the R-2 development standards and questioning whether or not second stories should have a notification to its neighbors, design standards, and limitations to the existing permitted height and number of stories allowed. All written correspondences are attached to this staff report. Recommendation Staff seeks the City Council’s direction to initiate a ZOA to consider the changes discussed in this report or open the discussion for further recommendations and evaluation of the R-2 (Mixed Residential District). The amendment will require approval of the Planning Commission prior to consideration of the City Council. Staff anticipates the amendment for City Council consideration in late April 2022. Fiscal Analysis There is no fiscal impact related to the staff’s proposal. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Director of Development Services N/A Veronica Chavez Acting Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman ATTACHMENT: 1. R-2 Zoning Map 2. Public Correspondences 3. Chapter 25.10 (Residential Districts) Page 240 Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, © OpenStreetMap contributors, and the GIS User Community Sources: Esri, HERE, Garmin, Intermap, increment P Corp., GEBCO, USGS, FAO, NPS, NRCAN, GeoBase, IGN, Kadaster NL, Ordnance Survey, Esri Japan, METI, Esri China (Hong Kong), swisstopo, © OpenStreetMap contributors, and the GIS User Community R-2 - Residential Single Family Page 241 From:Kurt Linda Davis To:Rosie Lua Subject:Property located at 72764 Arboleda Dr, PD Date:Wednesday, February 16, 2022 3:21:50 PM Dear Ms Lua, We are writing to express our concerns regarding possible future development of the property at 72764 Arboleda Dr, PD. We understand you have been in conversation with our neighbor, Lindsey Harris, regarding concerns we share. We believe Lindsey has expressed our concerns quite effectively. We have owned our home in the Palm Dell Estates since 1978. We love our neighbors, the neighborhood, the area, and especially the beauty of our mountain views. With the R-2 zoning, we are concerned that we could possibly lose our privacy as well as our beautiful mountain view enjoyed for these many years, should a two-story structure be erected. We thank you, and the City of Palm Desert, for considering setting design standards that would protect neighbor privacy as well as protect view of the mountains, before it possibly becomes a negative issue in our neighborhood. -Kurt & Linda Davis 72814 Arboleda Dr, PD (760) 902-7981 Page 242 From:Lindsey L Harris To:Martin Alvarez Cc:Rosie Lua Subject:Property located at 72764 Arboleda Dr, Palm Desert Date:Monday, February 14, 2022 3:18:30 PM Dear Mr Alvarez, The purpose of this email is to request some consideration by the City of Palm Desert in how the property located in the address above might possibly be developed. My interest in this is due to the fact that my husband and I live in the home that is immediately adjacent, located at 43754 Fairhaven Dr. We share a property line of approximately 120 ft with the Arboleda property. The previous owner recently died and his heirs have listed the property for sale. We had a wonderful long term relationship with the prior owner and are truly hoping to create an equally pleasant relationship with any new owner. In order to eliminate any potential for misunderstanding on our part, or anyone who is considering purchasing the Arboleda property, I would respectfully request that the City of Palm Desert consider the character of the Palm Dell Estates neighborhood. Those of us who have lived in this neighborhood are thoughtful, caring, respectful, and helpful to each other. We have a strong and active Neighborhood Watch Program that keeps us all informed and friendly. It is a joy to live here. I am aware of new development standards imposed by the State of California regarding development of R-2 property. I have had a very informative conversation with Rosie Lua of your staff, who was quite helpful. She is the one who suggested that I start this correspondence with you. I have copied this email to her as well. I hope that anyone else who is involved in the decision process for this property will also be alerted by one of you of our concern. Of course our hope is that one of the many people who have already expressed an interest in purchasing the property for use as a single family residence are able to follow through and keep the house in character with this neighborhood. However, hoping something might happen usually is a poor approach. So, since there are several neighbors who also have a vested interest in what happens with the future of the Aboleda property, and many others in the neighborhood who care deeply about this issue, we are wondering if there are some architectural and building restrictions that could be applied or overlayed to any request for permits on the Arboleda property. I have not contacted the Building Department, or the City Council yet. I believe there is a path that is best applicable in this case and I am hoping you will help us find the best avenue for bringing about a positive and proactively successful result. The past two City Council meetings I have heard the concerns expressed by Jered Pordaleschi (spelling may not be correct). He has a similar situation to ours, except that the damage has already been done and construction of a two story house with various windows and decking now overlook his backyard. We are certainly concerned and are trying to avoid a similar result here. There are many in our neighborhood who are more than willing to write letters to you or the City Council, whichever is appropriate. They will participate in resolving this issue successfully in any approach that you direct us to take. None of us want to wait until it's too late to make a difference. I would like to explore our options with you, or whomever is the best person to handle this situation. We want to be certain that at a minimum the adjacent neighbors will be notified of any activity or requests that are brought to the City regarding the Arboleda property. This would include demolition permitting, architectural review, building permit requests, or any other activity. We are especially concerned with hazards related to demolition due to the presence of a high level of black mold in the house. It would be appreciated if we could participate in or at least comment Page 243 on any development requested on the property. Our goal is to have an understanding of how we might be able to influence the development in a positive manner. Thank you so much for your thoughtful consideration and assistance in this issue. I will look forward to hearing back from you, or meeting, or speaking with you as soon as possible. Sincerely, -Lindsey Harris 43754 Fairhaven Dr, Palm Desert 92260, cell: 760-799-7175 Page 244 My wife and I are writing you and indirectly the City Council regarding the R-2 zoning designation throughout the City of Palm Desert. It is our understanding that this issue will come before City Council for guidance, possibly at the March 10 th meeting. We would like to express our concerns regarding two story structures being built throughout the City as infill new homes or additions to existing homes in single story neighborhoods. We would suggest more restrictive design standards be applied in those areas so as to enhance the continuity of the neighborhood. Mixed story homes throughout a single -story neighborhood are not aesthetically pleasing and not, we hope, what the City of Palm Desert is promoting. Our home is located at 43840 Fairhaven Drive and is a prime example of what the build out of this type of infill or the remodeling of an existing home could do to a neighborhood. We have lived at this location since 1986 and have two very different situations affecting our residence. The home across the street is up for sale with a sale pending. Hence the reason for this communication. The house and the surrounding structures including the walls are simply put, an eye sore. We know, as we have had to look at it out our front door for 35 years. What a travesty it would be to us and the adjacent property owners, if a two-story house or houses were built in its place. An eyesore for 35 years replaced by yet a bigger one. The second property is a lot adjacent to our property, diagonally south east. Being a vacant lot, it has provided us with an unobstructed view of the mountains and City tree line. Again, more restrictive design standards would, to a certain level, protect our view but more importantly not allow a two-story structure with a view directly into ours’ and our neighbors’ backyard and the back of our homes. We understand that the City Council have been handcuffed by State of California housing mandates and new laws. We are not sure how the City of Palm Desert being a Charter City can impact decisions of this nature. But we do feel that the City Council has the ability to establish more restrictive design standards throughout our community and empower various city departments the ability to consider the impacts on a case by case basis to enhance the quality of life for all residents. We and many of our neighbors would be more than happy to express our concerns directly to the City Council, if you feel it appropriate and effective. Thank you for the opportunity to express our views regarding this issue. Jerry and Judi Rogers 43840 Fairhaven Drive Palm Desert, CA 92260 760 250 4948 Page 245 Page 246 From:David Middleton To:Rosie Lua Subject:Zoning and design standards for Palm Dell Estates Date:Friday, February 18, 2022 3:25:34 PM I ask you to consider an ordinance to regulate construction in residential neighborhoods. To use our own little community, Palm Dell Estates, as an example, we have seen a steady deterioration in the quality of life over the past 35 years. Originally we enjoyed the central location with easy access to shopping and work. We could easily bicycle or walk to many parts of Palm Desert. That has all changed as the priority seems to have been to move more cars faster, and we often find ourselves land-locked by the Fred Waring Speedway, the Parkview Drag Strip and the Monterey Autobahn. Trying to walk across the street requires the fearlessness of a daredevil or a genuine desire to end it all. We long ago gave up on trying to enjoy a bicycle ride. This along with the deafening noise at all hours and the light pollution destroying our sky views. We now face the prospect that a house in our neighborhood will be razed and replaced with new construction, that could include two dwellings up to 30 feet high. This would radically alter the look of our neighborhood, made up now of one-story dwellings. Such a house would intrude on the privacy of three adjoining homes and block the views of the mountains for many of us. We don’t see any way such structures could fit into the character of our community. I hasten to note that we have already been assaulted by the poorly planned development to our west. With inadequate parking in their gated community, many residents are now parking on Fairhaven. We note that the amount of trash strewn around the neighborhood has increased. Thankfully several of the neighbors go out and pick it up when it gets bad enough, a testament to the cohesiveness of our community. I think you are already well versed in the problems we face due to the street fair at COD and the use of Acacia to relieve traffic from Monterey. I think Palm Desert, as a charter city, has room to apply the spirit of the state requirements to permit more housing on residential lots. We residents of Palm Dell Estates think a main house and a small structure can fit onto our lots, and they can be kept to one story with a maximum height of 15 feet, and that is the guidance we ask you to direct to the City Council. Sincerely, Dave Middleton 72799 Arboleda DR Palm Desert Page 247 760 399 6855 dfmiddletonphd@gmail.com Page 248 From: Jared Portolesi <jaredportolesi@gmail.com> Sent: Thursday, January 27, 2022 11:43 AM To: Martin Alvarez <malvarez@cityofpalmdesert.org>; CouncilMeeting Comments <CouncilMeetingComments@cityofpalmdesert.org> Subject: Jared Portolesi 74057 el cortez way Hi Martine, As you can see by the attached pictures, my Wife, our 4 children, and myself are HIGHLY negatively impacted by the Contruction of a second floor next door. We have lost all privacy and all views. We now have 3 large windows or sliding doors on the second story next door looking directly over our entire yard and pool area. We are very disappointed with this ordinance and the lack of forethought that was given to the negative impact this has on home owners and their families. We have never been notified of these changes nor were we notified of the contruction of the second story next door to us seen in the pictures below. Were there even studies completed by the city as to how this might effect people’s privacy? Was there any consideration regarding how making this already extremely dense area even more dense would effect parking on streets that are already packed daily? I have also copied the city council email prior to 12pm so they are aware of the negative impact that this new ordinance has on surrounding homes. Ensuring it will be part of the record of todays meeting. Per our phone conversation this morning I look forward to hearing back from you with a solution to regaining our privacy in our yard. Thank you, Jared Portolesi Page 249 Page 250 Page 251 Page 252 Sent from my iPhone Page 253 Palm Desert Municipal Code Up Previous Next Main Collapse Search Print No Frames Title 25 ZONING Chapter 25.10 RESIDENTIAL DISTRICTS* * CodeAlert: This topic has been affected by Ordinance No. 1374. To view amendments and newly added provisions, please refer to the CodeAlert Amendment List. 25.10.010 Purpose The purpose of this chapter is to establish residential zoning districts in the City, along with allowed use and development standards applicable to those districts. These districts are consistent with and implement the City’s General Plan neighborhood land use categories as indicated in Table 25.04-1 (Zoning Districts). (Ord. 1324 § 4, 2017; Ord. 1259 § 1, 2013) 25.10.020 Characteristics of the Residential Districts The following descriptions of each residential district identify the characteristic uses, density, intensity of uses and the types of development intended for that district. A. Estate Residential District (RE). The district is intended to provide low intensity and neighborhood development (0.5—1.0 du/ac) and generally is characterized by limited development on large properties and preservation of natural features and open space. B. Single-Family/Mobile Home Residential District (R-1M). This district provides for the permanent placement and occupancy of single family dwelling units, factory built or manfucatored dwelling units and mobile homes for residential purposes on purchased, rented or leased lots. The district is characterized as having moderated density (4.0—7.0 du/ac) focused around community space and amenities with walkable streetscapes. C. Single-Family Residential District (R-1). The intent of this district is to encourage the preservation and development of traditional residential neighborhoods. The district provides for low intensity development (2.0—8.0 du/ac) generally characterized by single-family homes on medium-sized lots organized around formal and walkable streetscapes. D. Mixed Residential District (R-2). The intent of this district is to provide moderate intensity and density (3.0 —10.0 du/ac) for neighborhood development. Neighborhoods are characterized by a variety of housing choices and mixed-uses. Buildings are organized around formal and walkable streetscapes with high levels of pedestrian connectivity. E. Multifamily Residential District (R-3). The intent of this district is to provide suitable areas for moderate to higher intensity and density (7.0—40.0 du/ac) for residential development and small scale commercial activity. The zoning district is characterized by higher density residential development and mixed-uses in proximity to retail and commercial services. Buildings are organized around formal streetscapes with a variety of plazas and other pedestrian amenites and open spaces that are highly connected to surrounding development. F. Hillside Planned Residential District (HPR). The purpose of the hillside planned residential district is to provide for the lowest intensity (0.2 du/ac) of residential development by minimizing the grading of hillside areas and to preserve the natural contours of the land by avoiding extensive cut and fill of slopes that result in a padding or staircase effect within the development. This district is characterized by the preservation of natural features and protected viewsheds, architecture and landscape design that blends with the natural terrain, and informal and natural streetscapes that follow the topography of the land. G. Planned Residential District (PR). The purpose of this district is to provide for flexibility in residential development, by encouraging creative and imaginative design, and the development of parcels of land as coordinated projects involving a mixture of residential densities (4.0—40.0 du/ac), mixed housing types, and community facilities. The district is charactersized as providing for the optimum integration of urban and natural Page 254 amenities within developments and is organized around formal, walkable, and highly connected streetscapes. (Ord. 1324 § 4, 2017; Ord. 1259 § 1, 2013) 25.10.030 Allowed Land Uses and Permit Requirements Table 25.10-1 “Use Matrix for Residential Districts” below identifies land uses and corresponding permit requirements for residential districts and all other provisions of this title. Descriptions/definitions of the land uses can be found in Chapter 25.99 “Definitions”. The Special Use Provisions column in the table identifies the specific chapter or section where additional regulations for that use type are located within this title. Use regulations in the table are shown with a representative symbol by use classification listing: “P” symbolizes uses permitted by right, “A” symbolizes uses that require approval of an administrative use permit, “L” symbolizes uses that require approval of a large family day care use permit, “C” symbolizes uses that require approval of a conditional use permit, and “N” symbolizes uses that are not permitted. Uses that are not listed are not permitted. However, the Commission may make a use determination as outlined in Section 25.72.020 (Use Determinations). Table 25.10-1: Use Matrix for Residential Districts Residential Zoning District (P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use Permit; C=Conditional Use Permit; N=Not Permitted) RE R-1 R-2 R-3 R-1M HPR PR Special Use Provisions Residential Uses Assisted living N C C C N N C Accessory dwelling unit P P P P P N P 25.34.030 Condominium N N C C N N C Dwelling, duplex N N P P N N N Dwelling, multifamily N N P P N N C 25.10.040.A Dwelling, second P P P P N P P 25.34.030 Dwelling, single-family P P P N N P P Farmworker housing N N N N N N N Group home P P P N N P P 25.10.040.B Guest dwelling P P P N N P P Home-based business P P P P P P P Junior accessory dwelling unit P P P P P N P 25.34.030 Manufactured home parks N N N N C N N Planned unit development, residential N N C C N C C 25.10.040.C Transitional and supportive housing see Note 1 Agriculture-Related Uses Apiary P P P N N P P Botanical conservatory A N N N N N N Crops and horticulture, limited A N N N N N N Domestic animals P P P P P P P Page 255 Residential Zoning District (P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use Permit; C=Conditional Use Permit; N=Not Permitted) RE R-1 R-2 R-3 R-1M HPR PR Special Use Provisions Garden, private P P P P P P P Greenhouse, commercial C N N N N N N Greenhouse, private P P P A A P P Horticulture, private P P P P P P P Kennel C N N N N N C 25.10.040.D Livestock raising, noncommercial C N N N N N N Nursery C N N N N N N Orchard A N N N N N N Stable, boarding A N N N N N N 25.10.040.E Stable, private A N N N N N N 25.10.040.E Recreation, Resource Preservation, Open Space, and Public Assembly Uses Cemetery N N N N N N C Community facility N N N N N N C Club, private N N C C N N C Crematory N N N N N N N Day care, large family L L L L L L L 25.10.040.F Day care, small family P P P P P P P Institution, educational2 C C C C C N C Institution, general2 N N N C N N C Institution, religious C C C C N N C Public park P P P P P P P Recreational use, commercial N N N N N N C 25.10.040.G Recreational vehicle park N N N N C N C Recreation facility, commercial N N N N N N N Recreation facility, incidental C C C C C N C 25.10.040.H Recreation facility, private P N N P P N P Recreation facility, public C C C C C N C Utility, Transportation, Public Facility, and Communication Uses Electric substation N N N N N N N Fire station C C C C N N C Public service facility C C C C C N N Public utility C C C C C N N Utility facility N N N N N N C Retail, Service, and Office Uses Bed and breakfast C N N C N N N Page 256 Residential Zoning District (P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use Permit; C=Conditional Use Permit; N=Not Permitted) RE R-1 R-2 R-3 R-1M HPR PR Special Use Provisions Commercial parking lot N C N C N N N 25.10.040.I Condominium hotel, converted N N C C N N C Hospital N N C C N N C Hotel N N N C N N C 25.10.040.J Neighborhood government office N N C C N N N 25.10.040.K Office parking lot N C C C N N N 25.10.040.L Professional office N N C C N N N 25.10.040.M Resort hotel N N N C N N C 25.10.040.J Timeshares N N N N N N C Temporary Uses See Section 25.34.080 Notes: 1. Transitional and supportive housing shall be subject to only those restrictions that apply to other residential uses of the same type in the same zone. 2. Trade schools are not permitted. (Ord. 1358 § 2, 2020; Ord. 1324 § 4, 2017; Ord. 1304 § 1, 2016; Ord. 1279 § 1, 2015; Ord. 1259 § 1, 2013) 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. Page 257 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). 4. Animal manure shall be stored in appropriate receptacles and properly disposed of 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 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. Page 258 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. (Ord. 1324 § 4, 2017; Ord. 1279 § 2, 2015; Ord. 1259 § 1, 2013) 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. 2. Grading. Location of building pads and access roads shall be evaluated, approved, or adjusted based on consistency with the following: a. 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. 3. 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:Page 259 a. 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. 5. 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: a. 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. 9. 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 effect 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. B. 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 environmentalPage 260 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. 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: a. 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. Trash Handling. Trash handling facilities shall be provided for all developments within the PR district with the exception of single-family detached dwellings. A trash enclosure will be provided for all but excepted uses, unless the proposed location of the trash area is completely enclosed by walls or buildings. The freestanding trash enclosure shall be constructed of masonry block. No trash shall be allowed to extend above or beyond the enclosure. 6. 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. a. 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 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. Page 261 8. 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. a. 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. 11. 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: a. 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; 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. 15. 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 Page 262 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: 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. 17. Development standards within the PR districts may be modified through the precise plan process as specified in Section 25.72.030. 18. 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/Zoning District RE3 R-13 R-2 R-3 R-1M1 HPR4 P.R.5≥1 ac ≥15,000 sf ≥10,000 sf, but ≤15,000 sf <10,000 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 Lot Dimensions Lot size, min 40,000 sf 15,000 sf 10,000 sf 8,000 sf 3,500 sf 3,000 sf 20 ac / 5,000 sf –– Lot size, max 1 ac No max 14,999 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) Page 263 Coverage Lot coverage, max percentage of lot area 30%35%2 35%2 35%2 60% 75% – 10% 50% Building Measurements 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 1,500 sf 1,250 sf 1,000 sf 1,000 sf 600 sf 450 sf ––– Dwelling unit size, max –––– 4,000 sf 4,000 sf – 4,000 sf – Site area per dwelling unit, min –––– 4,000 sf 2,500 sf ––– Building pad area, max ––––––– 10,000 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. 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 264 (Ord. 1334 § 12, 2018; Ord. 1324 § 4, 2017; Ord. 1292 § 1, 2015; Ord. 1279 §§ 4, 5, 2015; Ord. 1259 § 1, 2013) View the mobile version. Page 265 [This page has intentionally been left blank.] Page 266 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT DATE: March 10, 2022 PREPARED BY: Deborah Glickman, Management Analyst REQUEST: Request for approval of the Unite Palm Desert Security Camera System Grant program. Recommendation By Minute Motion: 1. Approve the proposed Unite Palm Desert Security Camera System Grant program for private commercial properties to receive up to five- hundred dollars ($500) each for the purchase and installation of security cameras. 2. Authorize the City Manager to implement the Unite Palm Desert Security Camera System Grant program including the execution of all agreements required to meet the program requirements. 3. Authorize the City Attorney to make non-substantive changes to the Unite Palm Desert Security Camera System Grant program agreement. 4. Approve an expenditure in the amount of $20,000 from Economic Development Fund 4254430-4393000 for the grants. Strategic Plan • Economic Development - Priority 4: “Expand and raise awareness of business- friendly services in order to retain and attract business.” • Land Use, Housing & Open Space – Priority 1: “Enhance Palm Desert as a first- class destination for premier shopping and national retail businesses.” • Public Safety & Emergency Services – Priority 2: “Increase methods of preventing crime, especially through expanded community participation.” Page 267 March 10, 2022– Staff Report Security Camera System Incentive Program Page 2 of 2 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\15 Security Cameras\1 SR - CC Security Camera Program.doc Background Analysis As a means to deter crime, and to assist with security for Palm Desert businesses and property owners, staff recommends that the City set aside one-time funding in the amount of $20,000 for up to $500 in matching grants for the purchase and installation of security camera systems for commercial businesses. Grants can be made to either the business or property owner and are based on actual costs. Grant funds must be used to purchase and install security camera systems at the proposed location. Businesses/property owners that wish to receive the grant will be required to complete the following: • Complete a Unite Palm Desert Security Camera System Grant application for staff review and approval. • After receiving grant approval, purchase and install a security camera system of the applicant’s choice at the property. • Provide proof of registry of the security system with the Riverside County Sheriff’s Department’s “Security Camera Registration Program.” • Retain and operate the security system in place for three (3) years unless replaced by an upgraded system at the sole expense of the business/property owner. • Complete a Unite Palm Desert Security Camera System Grant agreement with the City of Palm Desert and submit receipts for reimbursement. If approved, staff anticipates beginning the application process in April 2022 and continuing accepting applications until the $20,000 is granted. Fiscal Analysis Funding for this program in the amount of $20,000 is available in the Economic Development Unite Palm Desert Business Support Program Account 4254430- 4393000. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Director of Development Services Veronica Chavez Veronica Chavez Acting Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman ATTACHMENTS: Unite Palm Desert Security Camera System Grant Guidelines Unite Palm Desert Security Camera System Grant Application Unite Palm Desert Security Camera System Grant Agreement Page 268 UNITE PALM DESERT SECURITY CAMERA SYSTEM GRANT GUIDELINES BACKGROUND To assist with security for Palm Desert businesses/property owners, the City of Palm Desert has set aside one-time funding for grants in the amount of up to $500 per business. Grants will be paid as a reimbursement to businesses/property owners based on actual costs for the purchase and installation of security cameras. REQUIREMENTS Grantees will be required to do/submit the following: • Unite Palm Desert Security Camera System (SCS) Grant application to City Economic Development division staff for review of camera placement (application can be found at www.EngagePalmDesert.com). • After receiving grant approval, purchase and install a security camera system of applicant’s choice at the property. • Register the SCS with the Riverside County Sheriff’s Department (www.riversidesheriff.org/761/Security-Camera-Registration-Program). • SCS must remain in place for three (3) years unless replaced by an upgraded system at the sole expense of the business/property owner. • Complete an agreement with the City of Palm Desert and submit the following o A current City of Palm Desert Business License as of application date. o A completed W-9. o Proof of payment (up to $500) for purchase and installation of SCS. o Image(s) of the installed SCS. o Proof of authorization for the signatory to execute legal documents on behalf of the business (i.e. most recent tax return, articles of incorporation, or Statement of Information). o Proof that all required City of Palm Desert permits, if any, have been attained. Contact the City’s Permit Center to determine if any permits are required. FEES There are no fees associated with this grant unless permits are required. APPLICATION DEADLINE • Grants will be issued on a first-come-first-served basis based on receipt and approval date of Unite Palm Desert Security Camera System Grant application. • Applications will be accepted as long as funding is available up to $20,000. QUESTIONS/INFORMATION Contact Deborah Glickman, Management Analyst, dglickman@cityofpalmdesert.org or 760-776-6441. Page 269 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT 73510 Fred Waring Drive, Palm Desert, California 92260 Phone (760) 346-0611 ▪ Fax (760) 776-6417 ▪ bizsupport@cityofpalmdesert.org UNITE PALM DESERT SECURITY CAMERA SYSTEM (SCS) GRANT APPLICATION Business/Property Owner Name: Business/Property Owner Address: Applicant/Representative Name: Mailing Address: City: State: Zip: Phone: Email: SCS Location: Installation Location Description and Number of Cameras (attach drawing/image of location if desired): 1. The SCS shall be installed at the location(s) indicated above and maintained at the sole expense of the business/property owner. 2. Business/property owner must register the security camera system with the Riverside County Sheriff’s Department at www.riversidesheriff.org/761/Security-Camera-Registration-Program. Approval: If seeking an SCS rant, business/property owner should not purchase or install SCS without written approval from the City. Submission: Unite Palm Desert Security System Camera Grant Application must be submitted by email to bizsupport@cityopalmdesert.org or via mail at City of Palm Desert, 73510 Fred Waring Drive, Palm Desert, California 92260, Attn: Economic Development Division. Applicant/Representative Signature: By signing this application, I certify that the information provided is accurate. I understand that the City might not approve what I am applying for and/or might require conditions of approval. Print Name: Signature: Date: OFFICE USE ONLY Date Received: Received By: Approved: __ Yes __No Date Approved: Page 270 1 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\15 Security Cameras\4 SC Grant Agreement Template.docx UNITE PALM DESERT SECURITY CAMERA SYSTEM GRANT ACKNOWLEDGEMENTS Grantee Acknowledgements: 1. XXXXXXXXX (“Grantee”) will receive a one-time grant of up to Five Hundred dollars ($500), based upon actual costs, for the completed installation of a Unite Palm Desert Security Camera System (SCS). 2. Grantee will receive the amount expended on the SCS up to Five Hundred dollars ($500). 3. Grantee has received approval of its SCS application from the City of Palm Desert. 4. The SCS has been installed at the approved location. 5. Grantee agrees that it will retain the SCS for a minimum of three (3) years, unless system is upgraded at the sole expense of Grantee. If Grantee upgrades its SCS, then a written acknowledgement of the upgrade must be submitted to the City of Palm Desert via email to bizsupport@cityofpalmdesert.org. 6. Grantee agrees to register its SCS with the Riverside County Sheriff’s Department at www.riversidesheriff.org/761/Security-Camera-Registration-Program. 7. Grantee will not be responsible for repaying the funds to City. 8. Grantee will submit one (1) signed copy of the Acknowledgments to City of Palm Desert, Attn: Deborah Glickman, Management Analyst, 73510 Fred Waring Drive, Palm Desert, California 92260. 9. In addition to the signed copy of the Acknowledgement, Grantee must submit the following: A. Proof of SCS registration with the Riverside County Sheriff’s Department. B. One (1) copy of the City of Palm Desert Business License that must be valid as of date of the SCS application submission. C. Completed SCS Grant Information Page. D. Completed W-9. E. Proof of payment (up to $500) for purchase and installation of SCS. F. Image(s) of the installed SCS. G. Proof of authorization for the signatory to execute legal documents on behalf of the business (i.e. most recent tax return, articles of incorporation, or Statement of Information). H. Proof that all required City of Palm Desert permits, if any, have been attained. Page 271 2 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\15 Security Cameras\4 SC Grant Agreement Template.docx 10. Grantee shall defend, hold harmless and indemnify the City, its officers and employees, and each and every one of them, from and against any and all actions, damages, costs, liabilities, claims, demands, losses, judgments, penalties, costs and expenses of every type and description, including, but not limited to, any fees and/or costs reasonably incurred by the City’s staff attorneys or outside attorneys and any fees and expenses incurred in enforcing this provision (collectively, “Liabilities”), including but not limited to Liabilities arising from contractual or other economic damages, or regulatory penalties, arising out of or in any way connected with Grantee’s breach of this Agreement, Grantee’s use of the Grant proceeds, or Grantee’s performance or failure to perform this Agreement, including, without limitation, against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Tenant, or its contractors or subcontractors), to hire apprentices in accordance with Labor Code Sections 1777.5 et seq., or to comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1725.5, 1771, 1771.1, 1771.4, 1776, 1777.5 et seq., 1810-1815 and the implementing regulations of the Department of Industrial Relations for all such Labor Code sections, whether or not (i) such Liabilities are caused in part by a party indemnified hereunder or (ii) such Liabilities are litigated, settled or reduced to judgment; provided that the foregoing indemnity does not apply to liability for any damage or expense for death or bodily injury to persons or damage to property to the extent arising from the sole negligence or willful misconduct of the City, its agents, servants, or independent contractors who are directly responsible to the City. City’s Obligations: 1. The City hereby agrees to grant to the Grantee the amount expended on the SCS up to Five Hundred dollars ($500). 2. The City is not responsible for any grant-related tax requirements. Page 272 3 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\15 Security Cameras\4 SC Grant Agreement Template.docx SIGNATURE PAGE FOR AGREEMENT BETWEEN THE CITY OF PALM DESERT AND XXXXXXXXX CITY OF PALM DESERT XXXXXXXXXX A Municipal Corporation L. TODD HILEMAN, Signature CITY MANAGER _________________________________ Print Name Title ATTEST: NIAMH H. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP REVIEWED BY: ERIC CEJA DEPUTY DIRECTOR OF DEVELOPMENT SERVICES/ECONOMIC DEVELOPMENT Page 273 4 W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\15 Security Cameras\4 SC Grant Agreement Template.docx UNITE PALM DESERT SECURITY CAMERA SYSTEM (SCS) GRANT INFORMATION PAGE 1. Contact Name 2. Name of Authorized Signatory 3. Business (or DBA) 4. Business Address 5. Contact Phone Number 6. Contact Email 7. Mailing Address 8. SCS Completion Date Page 274 STAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: March 10, 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; 2. Conduct a public hearing to receive public input on district boundaries; and 3. Introduce an Ordinance entitled: An Ordinance of the City Council of the City of Palm Desert, California, adjusting the boundaries of City Council election districts and confirming such revised Council District boundaries. Background Pursuant to Elections 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 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 public hearings on January 13, 2022, January 27, 2022 and February 24, 2022. At the January 27th and February 24, 2022 hearings, the City’s redistricting consultant presented draft map options for Council’s review. 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. Page 275 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 2 of 12 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. Under the Act, the City Council must 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. Page 276 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 3 of 12 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. Under the terms of the settlement agreement, District 1’s population is required to be between 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. Purpose of Public Hearing The purpose of this public hearing is to continue to review the 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. If, at the conclusion of the hearing, Council selects a preferred map, Council may also introduce the Ordinance finalizing the selection and concluding the redistricting process. 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 provision 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 2). The City’s Redistricting consultant prepared two initial draft map options for Council’s consideration at the second public hearing on January 24, 2022. After receiving input from Council, the consultant prepared an additional map which was presented at the third public hearing on February 24, 2022. Further, one map was received from a member of the public. At the hearing on February 24, 2022, the City Council requested revisions to Map Option 3, to create greater compactness and contiguity. Map Options 3B, 3C, and 3D are presented below. Each map is summarized below and with side-by-side map and key demographics. Additional map images, included a larger version of the zoomed-in map, and demographic information may be found attached to this report (Attachment 1). Further, an online tool for closely examining the boundaries, with zoom and search capabilities, may be found here: Page 277 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 4 of 12 https://www.google.com/maps/d/u/0/viewer?mid=1JQIU0u_oPXTZxFvSus2XidWv- OhnOUuG&ll=33.72500667071419%2C-116.36707827727082&z=14 Initial Draft Maps Map Option 1 Map Option 1 creates a two district plan that exhibits a 0% deviation from an 80/20% population balance. District 1 falls within the ranges permitted by the Settlement Agreement 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 requirement is 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 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, where possible. District 1 is drawn with a Citizen Voting Age Population (CVAP) of 50.7% Non- Latino White, and 37.6% Hispanic. The complete demographic analysis of Option 1 and maps may be found as an attachment to this report (Attachment 1). 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. In this option, 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. District 1 is drawn with a Citizen Voting Age Population (CVAP) of 49.9% Non-Latino White, and 38.7% Hispanic. The complete demographic analysis of Option 2 as well as maps may be found as an attachment to this report (Attachment 1). Map Option 3 Map Option 3 creates a more compact District 1, removing uneven census blocks and maintaining defined communities of interest. The map removes the College of the Desert Page 278 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 5 of 12 from District 1 and fills in blocks in the areas of Palm Desert Charter Middle School and Magnesia Falls Park. The map does not extend north beyond 42nd Avenue, as in the current boundary map. The map also closely aligns with the existing boundaries in the area bordering Portola Country Club. In Option 3 District 1 represents 20.2% of the population while District 2 represents 79.79% of the population, bringing both within the permitted range under the settlement agreement. District 1 is drawn with a Citizen Voting Age Population (CVAP) of 51.2% Non-Latino White, and 36.4% Hispanic. The complete demographic analysis of Option 3 as well as a maps may be found as an attachment to this report (Attachment 1). Map Option 4 Map Option 4 was submitted by a member of the public. It creates a compact District 1, however, it creates a non-contiguous District 2, which is not permitted under the Fair Maps Act. The population is balanced, with a deviation of 30 people from an 80/20% population balance. District 1 is drawn with a Citizen Voting Age Population (CVAP) of 57.27% Non-Latino White, and 31.61% Hispanic. Complete demographic analysis as well as maps may be found as an attachment to this report (Attachment 1) New Maps Map Option 3B Map Option 3B modifies Option 3 to create a more compact and contiguous District 1. Specifically, the neighborhood bounded by Deep Canyon Road, Fred Waring Drive, Phyllis Jackson Lane, and the Whitewater Wash has been moved to District 2 and the area southwest of Fred Waring Drive, bounded by Deep Canyon Road and Portola Avenue has been moved to District 1. This creates greater compactness for District 1, and greater contiguity for District 2. The map is population balanced, with District 1 representing 20.03% of the total population. District 1 is drawn with a Citizen Voting Population (CVAP) of 52% Non-Latino White, and 36.7% Hispanic. Complete demographic analysis as well as maps may be found as an attachment to this report (Attachment 1). Map Option 3C Map Option 3C also modifies Option 3 to create more contiguity between Districts 1 and 2. It accomplishes this by moving the neighborhood bounded by Deep Canyon Road, Fred Waring Drive, Phyllis Jackson Lane, and the creek/wash to District 2, however does not “fill in” the area southwest of Fred Waring Drive into District 1, as found in Option 3B. Page 279 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 6 of 12 The map is population balanced, with District 1 representing 19.05% of the total population. District 1 is drawn with a Citizen Voting Age Population (CVAP) of 50.4% Non-Latino White, and 37.9% Hispanic. Complete demographic analysis as well as maps may be found as an attachment to this Report (Attachment 1). Map Option 3D Map Option 3D also modifies Option 3 to create more contiguity between Districts 1 and 2. It accomplishes this by making the same initial population shifts as Option 3C, however proceeds to further move the area bounded by Hovley Lane, Cook Street, 42nd Street, and the Canterra Apartments to District 1. This map is population balanced, with District 1 representing 20.05% of the total population. District 1 is drawn with a Citizen Voting Population (CVAP) of 51.04% Non-Latino White, and 36.9% Hispanic. Complete demographic analysis as well as maps may be found as an attachment to this report (Attachment 1). Additional Requested Information In addition to new map Options 3B, 3C, and 3D, the Council also requested population and demographic information for the area bordered by Hovley Lane on the north, 42nd Street on the south, the Canterra community on the east, and Cook Street on the west. In summary, 602 people reside in the area of interest, with 379 persons identifying as Non-Latino White and 138 persons identifying as Hispanic. The CVAP numbers for the area of interest are 60.3% Non-Latino White and 27.8% Hispanic. Complete demographic analysis for this additional area may be found as an attachment to this Report (Attachment 1). This area was added to Map Option 3 to create Map Option 3D. Side-By-Side Comparison of Map Options A side-by-side comparison of each Map Option and the corresponding City population and demographic information are included in the table below. Page 280 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 7 of 12 Map Option 1 District 1 Information City Population % 20% Non-Latino White CVAP 50.7% Hispanic CVAP 37.6% Map Option 2 District 1 Information City Population 18.49% Non-Latino White CVAP 49.9% Hispanic CVAP 38.7% Page 281 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 8 of 12 Map Option 3 District 1 Information City Population 20.2% Non-Latino White CVAP 51.2% Hispanic CVAP 36.4% Map Option 4 District 1 Information City Population 19.94% Non-Latino White CVAP 57.27% Hispanic CVAP 31.61% Page 282 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 9 of 12 Map Option 3B District 1 Information City Population 20.03% Non-Latino White CVAP 52% Hispanic CVAP 36.7% Map Option 3C District 1 Information City Population 19.05% Non-Latino White CVAP 50.4% Hispanic CVAP 37.9% Page 283 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 10 of 12 Map Option 3D District 1 Information City Population 20.05% Non-Latino White CVAP 51.04% Hispanic CVAP 36.9% Next Steps Following this hearing, the City Council may request revisions to any proposed map. If requested, the City’s redistricting consultant will prepare those revisions and present them at a subsequent City Council Meeting, with a date to be determined. Alternatively, the Council may select a preferred map, and introduce the attached Ordinance, finalizing the redistricting process. As noted above, the deadline for the City of Palm Desert to complete the redistricting process is April 17, 2022. A complete schedule of the City’s Redistricting process 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 Page 284 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 11 of 12 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 Community Outreach A website has been created to coordinate all 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 first workshop was held on January 20, 2022 and was attended by approximately ten residents in person and 12 virtually. The purpose of the first workshop was to explain the redistricting process; to provide an overview of the mapping tools; and to solicit input on communities of interest. The workshop was conducted in-person and livestreamed via Page 285 March 10, 2022 – Staff Report Public Hearing – Redrawing of Council Member District Boundaries Page 12 of 12 Zoom to allow virtual participation. It was also videorecorded and made available through the website following the meeting. A Spanish translator was available to provide simultaneous translation through headsets at the meeting for in person participants and via a Zoom Translation Room for virtual participants. A second workshop was held virtually via Zoom Webinar on February 22, 2022 and was attended by approximately ten people virtually. The purpose of the second workshop was 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. A live Spanish translation of the webinar was accessible through a Zoom Translation Room. It was also recorded and made available through the website after the meeting. The Development Services wing of City Hall was open to the public to allow for participation in the webinar at a City facility. There was a conference room set up for both English and Spanish. The public workshops were advertised through the website, social media, radio advertisements, and flyers will be provided to community organizations including schools and homeowner’s associations. Fiscal Analysis There is no fiscal impact associated with the recommended action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves 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 Options and Hovley Lane Area of Interest 2. Demographic Analysis of Current Districts 3. Draft Ordinance 4. Public Hearing Notice Page 286 Attachment 2 Proposed Maps and Demographic Analysis Page 287 Map Option 1 Page 288 Map Option 1 District 1 contains 20% of City Population, with 50.7% Non-Latino White CVAP and 37.6% Hispanic CVAP Page 289 Map Option 1 Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population 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 District 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 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 7,264 3,684 281 2,737 4,315 17 238 11 13 33,610 26,735 973 4,221 29,546 25 1,210 27 77 Page 290 Map Option 2 Page 291 Map Option 2 District 1 contains 18.49% of City Population, with 49.9% Non-Latino White CVAP and 38.7% Hispanic CVAP Page 292 Map Option 2 Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population 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 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 6,653 3,326 164 2,580 3,876 17 238 11 13 34,221 27,093 1,090 4,378 29,985 25 1,210 27 77 40,874 30,419 1,254 6,958 33,861 42 1,448 38 90 Page 293 Map Option 3 Page 294 Map Option 3 District 1 contains 20.2% of City Population, with 51.2% Non-Latino White CVAP and 36.4% Hispanic CVAPPage 295 Map Option 3 Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population District Total Populatio n Raw Deviation % Deviation % of Population Latino NL White Alone NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone NL 2+ Races 1 10,371 108 1.05% 20.20% 5,563 3,813 191 24 445 7 50 278 2 40,946 -108 -0.26%79.80% 7,813 28,771 778 99 1,919 50 175 1,341 Total 51,317 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 8,048 3,930 3,348 155 15 362 7 37 193 Ideal 10,263 36,246 5,851 26,817 662 90 1,637 29 143 1,017 Ideal Pop for 4 s 41,054 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 18.4% of total 9,442 7,304 3,742 183 2,659 4,474 17 413 11 18 21.6% of total 11,084 33,570 26,677 1,071 4,299 29,386 25 1,035 27 72 Page 296 Map Option 4 Page 297 Map Option 4 District 1 contains 19.94% of City Population, with 57.2% Non-Latino White CVAP and 31.6% Hispanic CVAP Page 298 Map Option 4 Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population District Total Population Raw Deviation % Deviation % Population Latino NL White Alone NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone NL 2+ Races 1 10,233 -30 -0.30% 19.94% 4,736 4,421 204 23 476 6 56 311 2 41,084 30 0.07%80.06% 8,640 28,163 765 100 1,888 51 169 1,308 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 8,188 3,438 3,912 167 13 400 6 38 214 36,106 6,344 26,253 650 92 1,599 30 142 996 18.4% of total 9,442 21.6% of total 11,084 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 7,616 4,362 171 2,408 5,164 18 490 11 22 33,258 26,057 1,083 4,550 28,697 24 958 27 68 Page 299 Map Option 3B Page 300 Map Option 3B District 1 contains 20.03% of City Population, with 52% Non-Latino White CVAP and 36.7% Hispanic CVAPPage 301 Map Option 3B Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population District Total Population Raw Deviation % Deviation Percent Population Latino NL White Alone % NL White Alone of Total Pop NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone 1 10,279 16 0.15% 20.03% 5,555 3,782 36.79% 198 24 394 6 50 2 41,038 -16 -0.04%79.97% 7,821 28,802 70.18% 771 99 1,970 51 175 Total 51,317 13,376 32,584 969 123 2,364 57 225 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 7,969 3,930 3,315 162 15 313 6 37 191 36,325 5,851 26,850 655 90 1,686 30 143 1,019 18.4% of total 9,442 21.6% of total 11,084 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 7,324 3,813 187 2,690 4,446 17 286 11 17 33,550 26,606 1,067 4,268 29,415 25 1,162 27 73 Page 302 Map Option 3C Page 303 Map Option 3C District 1 contains 19.05% of City Population, with 50.04% Non-Latino White CVAP and 37.9% Hispanic CVAP Page 304 Map Option 3C Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population District Total Population Raw Deviation % Deviation Percent Population Latino NL White Alone NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone NL 2+ Races 1 9,777 -486 -4.74% 19.05% 5,426 3,445 189 24 372 6 50 265 2 41,540 486 1.18%80.95% 7,950 29,139 780 99 1,992 51 175 1,354 Total 51,317 13,376 32,584 969 123 2,364 57 225 1,619 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 7,548 3,832 3,024 153 15 294 6 37 187 36,746 5,950 27,141 664 90 1,705 30 143 1,023 18.4% of total 9,442 21.6% of total 11,084 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 6,867 3,467 175 2,607 4,071 17 266 11 17 34,007 26,952 1,079 4,351 29,790 25 1,182 27 73 Page 305 Map Option 3D Page 306 Map Option 3D District 1 contains 20.05% of City Population, with 51.04% Non-Latino White CVAP and 36.9% Hispanic CVAPPage 307 Map Option 3D Demographic Analysis NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population District Total Population Raw Deviation % Deviation Percent Population Latino NL White Alone NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone NL 2+ Races 1 10,290 27 0.26% 20.05% 5,545 3,767 210 24 413 6 52 274 2 41,027 -27 -0.06% 79.95%7,831 28,817 759 99 1,951 51 173 1,345 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 7,965 3,926 3,289 170 15 327 6 37 194 36,329 5,856 26,876 647 90 1,672 30 143 1,016 18.4% of total 9,442 21.6% of total 11,084 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 7,241 3,726 223 2,678 4,386 17 288 11 17 33,633 26,693 1,031 4,280 29,475 25 1,160 27 73 Page 308 Hovely Lane Area of Interest Population NL White NL Black Hispanic NL AIAN NL ASIAN NL Hawaiian NL Other 602 379 29 138 10 59 0 0 CVAP Total CVAP NL White CVAP NL Black CVAP Hispanic CVAP NL AIAN CVAP NL ASIAN CVAP NL HAWAIIAN CVAP NL Other 467 282 21 130 9 13 0 0 NL = Non-Latino VAP = Voting Age Population AIAN = American Indian Alaskan Native CVAP = Citizen Voting Age Population Page 309 Attachment 2 City of Palm Desert Existing Council Districts Page 310 City of Palm Desert Existing Council Districts with 2020 Census Data Demographics District Total Population % of Population Permitted Range Permitted Range of Movement Raw Deviation % Deviation Latino NL White Alone NL Black Alone NL AIAN Alone NL Asian Alone NL Hawaiian Alone NL Other Alone NL 2+ Races 1 9280 18.10% 18.4% - 21.6% 163 - 1803 -983.4 -9.58%5248 3206 173 22 332 6 50 243 2 42037 81.90% 78.4% - 81.6% (163) - (1803) 983.4 2.40% 8128 29378 796 101 2032 51 175 1376 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 Total Pop 51317 District 1 7166 3715 2812 145 13 263 6 37 175 Ideal Pop 10263.4 District 2 37128 6067 27353 672 92 1736 30 143 1035 Ideal Pop for 4 seats 41053.6 Ideal Pop for 1 seat 10263.4 Page 311 98988.10029\34879464.3 ORDINANCE NO. ______ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA ADJUSTING THE BOUNDARIES OF CITY COUNCIL ELECTION DISTRICTS AND CONFIRMING SUCH REVISED COUNCIL DISTRICT BOUNDARIES WHEREAS, the United States Census Bureau is required by Article I, Section 2, of the United States Constitution to conduct an accurate count of the population every ten years; and WHEREAS, California Elections Code Section 21601 requires that following each decennial federal census, and using that census as a basis, the Council shall, by ordinance or resolution, adjust the boundaries of any or all of the City’s Council election districts to be substantially equal in population as required by the United States Constitution, California Constitution, and the Federal Voting Rights Act. In establishing the boundaries of the districts the Council must give consideration to the following factors in the following priority: (a) contiguity of districts, (b) communities of interest, (c) easy identification of districts through use of natural or artificial boundaries and (d) district compactness; and WHEREAS, California Elections Code Section 21602 requires that the Council adopt an ordinance establishing Council districts by April 17, 2022; and WHEREAS, on September 27, 2021, the Census Bureau sent 2020 Census data to the State of California with an official population estimate of 65,954 residents for the City of Palm Desert; and WHEREAS, the City Council of the City of Palm Desert ("City Council") held four public hearings on January 25, 2022, February 10, 2022, February 24, 2022, and March 10, 2022, where the Council received briefings from the City’s redistricting consultant relating to the redistricting process and state and federal redistricting criteria, including the California Elections Code, the Federal Voting Rights Act and the United States Constitution, heard public testimony, and directed staff and the City's redistricting consultant to prepare draft Council district maps for consideration; and WHEREAS, in addition, City staff conducted public outreach by way of two community workshops, held January 20, 2022 and February 22, 2022, with special emphasis on minority language communities, providing access to live translation in Spanish, and providing instruction on how members of the public may participate in the redistricting process and submit their own draft maps. Additional public outreach was conducted by way of print and digital advertisements, which led to public hearings with public comment on redistricting criteria and communities of interest; and WHEREAS, at the February 10, February 24, and March 10, 2022 public hearings, Page 312 98988.10029\34879464.3 the Council received a presentation of various draft maps prepared by the City's redistricting consultant for compliance with applicable laws and standards and reviewed additional maps submitted by the public; and WHEREAS, at the March 10, 2022 public hearing, the City Council agreed on Map _______, designating it as the preferred map and directed that it be presented to the Council for adoption by Ordinance; and WHEREAS, at each of the public hearings on redistricting, the Council heard testimony relating to “communities of interest,” which led the Council to reach the following determinations about communities of interest on the preferred map, as required under federal and state law: (1) The election districts are geographically contiguous. The districts are arrayed in a simple and logical form without any islands and with minimal intrusions from the area of one district into another; (2) To the extent practicable, the preferred map respects the geographic integrity of local neighborhoods and local communities of interest. The Council heard testimony about what constitutes communities of interest in the public’s view. (3) The election districts are easily identifiable and understandable by residents. The districts in the preferred map form a relatively simple pattern. (4) To the extent practicable, the election districts are geographically compact. Their configurations for the most part are compact, simple shapes, with nearby populations included in the same districts. (5) The election districts comply with the population balance and other requirements of the settlement agreement between the City and Plaintiffs Lorraine Salas and Karina Quintanilla, dated November 2019. WHEREAS, all information in the staff reports, maps, presentations, Council debate and public testimony referenced above is hereby incorporated into this decision and serves as evidentiary basis for these findings and legislative decision. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES ORDAIN AS FOLLOWS: SECTION 1. This Ordinance is adopted following four noticed City Council public hearings as required by California Elections Code section 21607.1. SECTION 2. City Council elections shall continue to be conducted "by districts" in two districts as set forth in Exhibit A, with one member selected by District 1, and four members selected by District 2. The term “by district” shall mean election of members of the legislative body by voters of the district alone, as provided in Government Page 313 98988.10029\34879464.3 Code § 34871(d). SECTION 3. All ordinances and resolutions, or parts thereof in conflict with this Ordinance are hereby repealed. SECTION 4. The City Manager is directed to take all necessary steps to give effect to this Ordinance. If necessary to facilitate the implementation of this Ordinance, the City Manager or his or her designee is authorized to make technical adjustments to the election district boundaries that do not substantively affect the populations in the districts, the eligibility of candidates, or the residence of elected officials within any district. The City Manager shall consult with the City Attorney concerning any technical adjustments deemed necessary and shall advise the City Council of any such adjustments required in the implementation of the districts. SECTION 5. The City Clerk is hereby directed to provide a certified copy of this Ordinance to the Riverside County Registrar of Voters for use in subsequent Palm Desert City Council Elections. SECTION 6. Compliance with California Environmental Quality Act. This activity is exempt from environmental review under the California Environmental Quality Act (“CEQA”) (Pub. Resources Code, § 21000 et seq.) pursuant to State CEQA Guidelines, (Cal. Code Regs., tit. 14, § 15000 et seq.) §§ 15061(b)(3), 15320, and 15378(b)(3). The redistricting process is an organizational and administrative activity of the City, does not have the potential to result in either a direct or reasonably foreseeable indirect physical change in the environment, and is therefore not a project for purposes of CEQA. (State CEQA Guidelines, §§ 15061(b)(3); 15378(b)(5).) In the event the transition process does constitute a project, it is categorically exempt under the Class 20 (Changes in the Organization of Local Governments) categorical exemption. (State CEQA Guidelines, § 15320.) None of the exceptions to the exemptions found in State CEQA Guidelines, § 15300.2 apply. SECTION 7. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, 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 adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective. SECTION 8. Effective Date. This Ordinance shall become effective immediately upon its adoption. SECTION 9. Publication. The City Clerk shall certify to the adoption of this Ordinance and cause it, or a summary of it, to be published in a newspaper of general Page 314 98988.10029\34879464.3 circulation printed and published within the City of Palm Desert, pursuant to all legal requirements. PASSED, APPROVED, AND ADOPTED this 10th day of March, 2022. Jan C. Harnik, Mayor I, _______________, City Clerk of the City of Palm Desert, California, do hereby certify that the foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Palm Desert held on the 10th day of March, 2022, and was adopted at a regular meeting of the City Council of the City of Palm Desert on the ____ day of __________, 2022, by the following roll call vote: AYES: NOES: ABSENT: ABSTAINED: ATTEST: _________________, City Clerk Page 315 98988.10029\34879464.3 Exhibit A Final District Boundary Map Page 316 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 317 [This page has intentionally been left blank.] Page 318 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: March 10, 2022 PREPARED BY: Heather Horning, Assistant to the City Manager Amy Lawrence, Special Programs Manager Trisha Stull, Management Analyst REQUEST: Adopt Resolution to approve amended franchise agreement with Burrtec Waste and Recycling Services, LLC to collect solid waste, recyclables, and organic waste; and approve adjusted rates as outlined. ____________________________________________________________________ Recommendation By Minute Motion, 1. Conduct a majority protest public hearing to receive public comment on proposed increases to solid waste and recycling service rates. 2. Adopt Resolution approving amended franchise agreement with Burrtec Waste and Recycling Services, LLC to collect solid waste, recyclables, and organic waste; and 3. Approve the adjusted maximum service rates outlined in exhibits 3A, 3B, and 3C of the amended franchise agreement. Executive Summary The City of Palm Desert has had an exclusive Franchise Agreement (Agreement) with Burrtec Waste and Recycling Services, LLC (Burrtec) to provide waste and recycling services to all residents and businesses in the City since 2006. The current Agreement is an amendment to the original agreement that was approved in May 2015, extending through May 2023 (Contract No. C27411). Senate Bill (SB) 1383, the Short-Lived Climate Pollutants: Organic Methane Waste Emissions Reduction Act (Lara, Chapter 395, Statutes of 2016), was passed by the Legislature in order to reduce greenhouse gases produced by organic material in the waste stream. The new legislation has a large impact on services the City is required to provide to its residents and businesses by January 2022. Because these services are not included in the current agreement with Burrtec, an amendment is required to incorporate them. In order to assist the City with the implementation of SB 1383, the City contracted with HF&H Consultants, LLC (HF&H). Staff has worked with HF&H to complete a thorough review of the Burrtec Agreement, identify changes that needed to be made to implement SB 1383, and negotiate a draft amended Agreement to incorporate these changes and other required clean-up items. Page 319 March 10, 2022 - Staff Report Burrtec Franchise Agreement Page 2 of 6 On August 26, 2021, the City Council held a Study Session wherein staff provided an update on the following SB 1383 Required Programs and Proposed Program Enhancements via the updated Burrtec Agreement: SB 1383 Required Programs Proposed Programs Residential Organic Waste Collection Residential food waste will be placed in bags and Burrtec will collect with green waste. Burrtec will separate the food waste bags and send the food waste/green waste for mulching/composting. Kitchen pails will be distributed to residential customers during program roll-out. Container Contamination Monitoring Burrtec will monitor the collected materials for contamination in alignment with the requirements of SB 1383. Inspection Burrtec will monitor contamination and notify customers of contaminated containers. Burrtec will provide City required information to follow-up and issue notices of violation for noncompliance with SB 1383 mandates due to contaminated containers. In addition, Burrtec will assist with possible compliance exemption requests. Edible Food Recovery Burrtec will provide education to businesses informing them of local edible food donation opportunities. Education and Outreach Burrtec will perform required customer outreach and will work with the City to create an annual outreach plan to be approved by City. Procurement of Organic Waste Products Burrtec will assist the City to achieve the required amount of organic waste products on behalf of the City. City will receive 100 tons annually for use at City facilities and giveaways. Reporting Burrtec will provide the necessary reports for compliance. Proposed Program Enhancements – New Collection Programs Multi-family bulky item collection at no charge (4 items/pickup based on the number of dwelling units). Extra refuse only set outs (3 bags/pickup up to 4 times/year). An additional free document shredding event for a total of three annually. Page 320 March 10, 2022 - Staff Report Burrtec Franchise Agreement Page 3 of 6 Annual compost giveaway program. Plastic bag drop-off program at Burrtec Recycle Center. Proposed Program Enhancements – New City Services Portable toilets at four City-sponsored events. Containers for City use at 12 special clean-up events. Burrtec to cover costs for Prop 218 notices (approximately $30K per mailing). Proposed Program Enhancements – Public Outreach Public outreach including use of a third-party designer and annual public outreach plan. Medication takeback program outreach requirement. City selected/ designed signs on trucks for outreach campaigns. Proposed Program Enhancements – Rates Simplified rate adjustment methodology and schedule. Annual recycling rebate for customers based on annual commodity revenues. One-time adjustment of residential rates based on actual organic collection services. Proposed Program Enhancements - Agreement Terms List of approved processing facilities with ability to direct change if a more cost- effective option becomes available. City can direct organic waste to community composting facilities. Contract compliance audit every three years paid for by Burrtec. Enhanced performance standards with supplemental liquidated damages. Restructured City fees. Subcommittee After the Study Session on August 26, 2021, the City Council formed a subcommittee consisting of Councilmember Jonathan and Councilmember Quintanilla to provide staff guidance on a variety of topics including a container colorization compliance plan, selection of food waste kitchen pails, and a compliance/communication plan. Staff also requested direction on the agreement term and use of recycle fund monies to offset the rate increase to customers. Outlined below are the outcomes from each topic: Container Colorization Compliance Plan Subcommittee recommends standardizing all the residential cart colors at the same time, making all residential recycling carts blue, green/food waste carts green, and landfill/garbage carts grey. Selection of Food Waste Kitchen Pails Subcommittee recommends providing kitchen pails during the initial roll out of the residential food waste program and to new customers with educational material. Page 321 March 10, 2022 - Staff Report Burrtec Franchise Agreement Page 4 of 6 Replacement pails will be funded by recycle fund monies and available at select sustainability events or for purchase from Burrtec. Compliance/Communication Plan City staff to partner with Chamber of Commerce on commercial customer outreach. Additional outreach discussed: post cards, marquee before City Council meetings, and presentations to afterschool programs. Wrapping of Residential Food Waste Burrtec to provide two bags with initial pail delivery including one paper and one plastic. Residents will be responsible to provide bags after initial bags are used. Term and Rate Increase Schedule Subcommittee reviewed the term of the new Agreement and Rate Increase Schedule. Information on both is outlined below. Term With regard to the term of the new Agreement, staff initially proposed either a five- or ten- year fixed term with phased in commercial rates and options to extend. The subcommittee recommended a ten-year extension from the end of the current Agreement term (May 2023) which will bring the new term to 11 years, through March 2033. Adjustment of Rates The Solid Waste Service rate increases will cover the cost of implementing state mandated SB 1383 organics recycling programs and services, and the increased cost of processing recyclable materials. In January 2022, Burrtec mailed a 45-day notice of public hearing regarding proposed increases to solid waste and recycling service rates (Prop 2018 Notice) to all Palm Desert residents and businesses outlining the rate increase information below. The residential customer Solid Waste Service rate increase will be phased in over four years as described below. The initial increase will be effective on July 1, 2022, and the rates are set forth in Exhibit 3A of the Draft Franchise Agreement. Residential Customer Rate Increases Effective Date Increase Per Residence Per Month July 1, 2022 $1.83 July 1, 2023 $3.91 + CPI Adjustment July 1, 2024 $2.43 + CPI Adjustment July 1, 2025 $0.63 + CPI Adjustment City staff is working to determine the best method to utilize recycle fund monies to offset the July 1, 2023 through July 1, 2025 increases and will provide recommendations to the City Council when the annual rate adjustment is brought forth for consideration for the July 1, 2023 increase to further phase-in the increases. One option considered during the August Page 322 March 10, 2022 - Staff Report Burrtec Franchise Agreement Page 5 of 6 26, 2021 Study Session and supported by the Subcommittee was to consider spending approximately $2 million from the Recycle Fund to create a more gradual increase to residential rates. Commercial and roll-off customers Solid Waste Service rates will increase on April 1, 2022, as set forth in Exhibit 3B of the Draft Franchise Agreement, due to increases related to implementing programs for compliance with SB 1383 and the increased cost of processing recycling. In an abundance of caution, the City included the maximum proposed service rates in the Prop 218 Notice. These rates are subject to the Proposition 218 process which requires a public hearing on the proposed rates, and allows affected residents and businesses to protest the rate increases. The City Council may approve these rates unless the City receives written protests from owners or customers representing a majority of the affected parcels. Fiscal Analysis The proposed rates outlined in Exhibits 3A, 3B, and 3C, are inclusive of City fees. The City collects a Franchise Fee, Vehicle Impact Fee, and Recycle Fee. These fees have been adjusted with the Amended Agreement to be calculated from gross receipts rather than net receipts. The City will receive an equal amount with these new calculations, but it is much simpler for staff to review and track. Staff expects the amount of Franchise Fees collected to increase due to the requirements of SB 1383 and other mandatory recycling laws that will require additional recycling services and increase the amount of gross receipts in future. The initial rates are shown in Exhibit 3A and 3B of the Draft Franchise Agreement. Beginning July 1, 2023, and each July 1 thereafter, the rates for the components of solid waste fees may be adjusted as follows: (1) disposal fees may be adjusted by the actual percentage change between the most recent disposal tipping fee on which rates are based and the new tipping fee, and (2) service fees will be adjusted by an amount equal to the change in the Garbage and Trash Collection Index (CUUR0000SEHG02) capped at a 5% increase, with weightings to be calculated as presented in Exhibit 4 of the Draft Franchisee Agreement based on the actual disposal expenses paid by Burrtec for the prior year. In addition to the annual adjustment, special rate adjustments will be implemented as described above and in Section 6.9 of the Agreement to phase in the cost of the new services, including SB 1383 programs. Page 323 March 10, 2022 - Staff Report Burrtec Franchise Agreement Page 6 of 6 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez Director of Development Services Veronica Chavez Veronica Chavez Acting Finance Director Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman Attachments: Draft Franchise Agreement Resolution Prop 218 Notice Prop 218 Written Protests Exhibits 3A, 3B, and 3C – Proposed Rates Vendor: Burrtec Waste and Recycling Services, LLC 41-575 Eclectic Street Palm Desert, California 92260 Page 324 AMENDED FRANCHISE AGREEMENT BETWEEN CITY OF PALM DESERT AND BURRTEC WASTE AND RECYCLING SERVICES, LLC FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES * * * March 10, 2022 Page 325 City of Palm Desert Franchise Agreement Table of Contents City of Palm Desert Page i March 10, 2022 FRANCHISE AGREEMENT BETWEEN CITY OF PALM DESERT AND BURRTEC WASTE AND RECYCLING SERVICES, LLC FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES TABLE OF CONTENTS ARTICLE 1. DEFINITIONS ...................................................................................................................4 1.1 AB 341 ...................................................................................................................................................... 4 1.2 AB 827 ...................................................................................................................................................... 4 1.3 AB 876 ...................................................................................................................................................... 4 1.4 AB 939 ...................................................................................................................................................... 4 1.5 AB 1594 .................................................................................................................................................... 5 1.6 AB 1826 .................................................................................................................................................... 5 1.7 Affiliate .................................................................................................................................................... 5 1.8 Agreement ............................................................................................................................................... 5 1.9 Alternative Daily Cover (ADC) ............................................................................................................ 6 1.10 Alternative Intermediate Cover (AIC) ............................................................................................ 6 1.11 Applicable Law .................................................................................................................................. 6 1.12 Approved C&D Processing Facility ................................................................................................ 6 1.13 Approved Disposal Facility .............................................................................................................. 6 1.14 Approved Facilities ........................................................................................................................... 6 1.15 Approved Organic Waste Processing Facility ............................................................................... 6 1.16 Approved Source Separated Recyclable Materials Processing Facility ..................................... 7 1.17 Approved Transfer Facility .............................................................................................................. 7 1.18 Back-Haul ............................................................................................................................................ 7 1.19 Billings ................................................................................................................................................. 7 1.20 Bin ........................................................................................................................................................ 7 1.21 Blue Container .................................................................................................................................... 7 1.22 Bulky Items ......................................................................................................................................... 7 1.23 California Code of Regulations (CCR) ............................................................................................ 8 1.24 CalRecycle ........................................................................................................................................... 8 1.25 Can ....................................................................................................................................................... 8 1.26 Cart....................................................................................................................................................... 8 1.27 City ....................................................................................................................................................... 8 1.28 City Facility ......................................................................................................................................... 9 Page 326 City of Palm Desert Franchise Agreement Table of Contents City of Palm Desert Page ii March 10, 2022 1.29 Collect/Collection .............................................................................................................................. 9 1.30 Commercial ......................................................................................................................................... 9 1.31 Commercial Edible Food Generators .............................................................................................. 9 1.32 Commercial Premises ........................................................................................................................ 9 1.33 Company ............................................................................................................................................. 9 1.34 Company Compensation ................................................................................................................ 10 1.35 Compost ............................................................................................................................................ 10 1.36 Compostable Plastics ....................................................................................................................... 10 1.37 Construction and Demolition (C&D) Debris ............................................................................... 10 1.38 Container(s) ...................................................................................................................................... 10 1.39 Customer ........................................................................................................................................... 10 1.40 Designated Waste ............................................................................................................................ 11 1.41 Discarded Materials ......................................................................................................................... 11 1.42 Disposal ............................................................................................................................................. 11 1.43 Disposal Cost .................................................................................................................................... 11 1.44 Disposal Site(s) ................................................................................................................................. 12 1.45 Divert/Diversion ............................................................................................................................. 12 1.46 Diversion Site ................................................................................................................................... 12 1.47 Edible Food ....................................................................................................................................... 12 1.48 Electronic Waste or E-Waste .......................................................................................................... 12 1.49 Environmental Laws ....................................................................................................................... 13 1.50 Excluded Waste ................................................................................................................................ 13 1.51 Facility ............................................................................................................................................... 13 1.52 Food Recovery .................................................................................................................................. 14 1.53 Food Recovery Organization ......................................................................................................... 14 1.54 Food Recovery Service .................................................................................................................... 14 1.55 Food Scraps ....................................................................................................................................... 14 1.56 Food-Soiled Paper ............................................................................................................................ 14 1.57 Food Waste ....................................................................................................................................... 15 1.58 Franchise ........................................................................................................................................... 15 1.59 Franchise Fee .................................................................................................................................... 15 1.60 Generator .......................................................................................................................................... 15 1.61 Gray Container ................................................................................................................................. 15 1.62 Gray Container Waste ..................................................................................................................... 15 1.63 Green Container ............................................................................................................................... 15 1.64 Gross Receipts .................................................................................................................................. 16 1.65 Hazardous Material ......................................................................................................................... 16 1.66 Hazardous Waste ............................................................................................................................. 17 1.67 Household Hazardous Waste (“HHW”) ...................................................................................... 17 1.68 Incompatible Materials ................................................................................................................... 17 1.69 Inerts .................................................................................................................................................. 17 1.70 Large Event ....................................................................................................................................... 17 1.71 Large Venue ...................................................................................................................................... 18 1.72 Master-Billed Accounts ................................................................................................................... 18 Page 327 City of Palm Desert Franchise Agreement Table of Contents City of Palm Desert Page iii March 10, 2022 1.73 Mulch ................................................................................................................................................. 18 1.74 Multi-Family, Multi-Family Dwelling Unit or Multi-Family Premises ................................... 19 1.75 Non-Organic Recyclables ............................................................................................................... 19 1.76 Organic Materials............................................................................................................................. 19 1.77 Organic Waste .................................................................................................................................. 19 1.78 Owner ................................................................................................................................................ 19 1.79 Person ................................................................................................................................................ 20 1.80 Premises ............................................................................................................................................ 20 1.81 Process, Processed, or Processing .................................................................................................. 20 1.82 Prohibited Container Contaminants ............................................................................................. 20 1.83 Property Owner ............................................................................................................................... 20 1.84 Proposition 218 ................................................................................................................................. 20 1.85 Putrescible Waste ............................................................................................................................. 21 1.86 Rate Year ........................................................................................................................................... 21 1.87 Recycle/Recycling ........................................................................................................................... 21 1.88 Recycling Fee .................................................................................................................................... 21 1.89 Recyclable Materials or Recylables................................................................................................ 21 1.90 Refuse ................................................................................................................................................ 22 1.91 Refuse Vehicle Impact Fee .............................................................................................................. 22 1.92 Renewable Natural Gas (RNG) ...................................................................................................... 22 1.93 Residential......................................................................................................................................... 22 1.94 Residential Premises ....................................................................................................................... 22 1.95 Residential Tax Roll Billing ............................................................................................................ 22 1.96 Reuse .................................................................................................................................................. 23 1.97 Roll-off Box ....................................................................................................................................... 23 1.98 SB 1383 ............................................................................................................................................... 23 1.99 SB 1383 Regulations ......................................................................................................................... 23 1.101 Self-Hauler or Self-Haul .................................................................................................................. 23 1.102 Sharps ................................................................................................................................................ 23 1.103 Solid Waste ....................................................................................................................................... 23 1.104 Source Separated .............................................................................................................................. 24 1.105 Source Separated Organic Materials ............................................................................................. 25 1.106 Source Separated Recyclable Materials ........................................................................................ 25 1.107 State .................................................................................................................................................... 25 1.108 Term ................................................................................................................................................... 25 1.109 Tier One Commercial Edible Food Generators ........................................................................... 25 1.110 Tier Two Commercial Edible Food Generators ........................................................................... 26 1.111 Transfer Facility ............................................................................................................................... 26 1.112 Transformation ................................................................................................................................. 26 1.113 Transportation, Transport, or Transporting ................................................................................ 27 1.114 Universal Waste ............................................................................................................................... 27 1.115 Working Day .................................................................................................................................... 27 1.116 Yard Waste ........................................................................................................................................ 27 Page 328 City of Palm Desert Franchise Agreement Table of Contents City of Palm Desert Page iv March 10, 2022 ARTICLE 2. GRANT AND ACCEPTANCE OF FRANCHISE .....................................................28 2.1 Grant and Acceptance of Franchise ................................................................................................... 28 2.2 Exclusive Nature of Franchise ............................................................................................................ 28 2.3 Effective Date ........................................................................................................................................ 28 2.4 Term of Agreement .............................................................................................................................. 28 2.5 Conditions to Effectiveness of Agreement ....................................................................................... 29 2.6 Delegation of Authority ...................................................................................................................... 30 2.7 Limitations on Scope of Franchise ..................................................................................................... 30 2.8 City's Right to Direct Changes ........................................................................................................... 32 2.9 Ownership of Solid Waste .................................................................................................................. 33 2.10 Company Status ............................................................................................................................... 34 2.11 Company Authorization ................................................................................................................. 34 2.12 Annexations ...................................................................................................................................... 34 2.13 Mandatory Service ................................................................................................................................. 34 2.14 Permits and Licenses ....................................................................................................................... 35 ARTICLE 3. FRANCHISE AND ADMINISTRATIVE FEE ...........................................................36 3.1 Franchise, Recycling, and Administrative Fee ................................................................................. 36 3.2 Business License ................................................................................................................................... 37 3.3 Other Fees .............................................................................................................................................. 38 ARTICLE 4. DIRECT SERVICES .......................................................................................................39 4.1 Collection Services - General .............................................................................................................. 39 4.2 Determination of Residential Collection Method ............................................................................ 39 4.3 Automated Cart Collection Services ................................................................................................. 40 4.4 Manual Refuse Can Collection Services ............................................................................................ 43 4.5 Other Residential Services .................................................................................................................. 44 4.6 Commercial Service ............................................................................................................................. 46 4.7 City Services and Other Requirements ............................................................................................. 51 4.8 Operations ............................................................................................................................................. 62 4.9 Transportation of Discarded Materials ............................................................................................. 75 4.10 Status of Disposal Site ..................................................................................................................... 78 4.11 Route Audit ...................................................................................................................................... 78 4.12 Service Exceptions; Hazardous Waste Notifications .................................................................. 80 4.13 Disaster Preparedness Plan ............................................................................................................ 80 4.14 Dedicated Routes ............................................................................................................................. 81 ARTICLE 5. OTHER SERVICES .........................................................................................................82 5.1 Services and Customer Billing ........................................................................................................... 82 5.2 Customer Service.................................................................................................................................. 85 5.3 Education and Public Awareness ...................................................................................................... 87 5.4 Discarded Materials Characterization and Capacity Planning Studies ....................................... 91 5.5 Other SB 1383 Company Requirements ............................................................................................ 92 Page 329 City of Palm Desert Franchise Agreement Table of Contents City of Palm Desert Page v March 10, 2022 5.6 Food Recovery Assistance ................................................................................................................. 99 5.7 Universal Enrollment Monitoring ................................................................................................... 100 ARTICLE 6. COMPANY COMPENSATION AND RATES........................................................101 6.1 General ................................................................................................................................................. 101 6.2 Rates ..................................................................................................................................................... 101 6.3 Schedule of Future Adjustments ...................................................................................................... 101 6.4 Method of Adjustments ..................................................................................................................... 101 6.5 Extraordinary Adjustments .............................................................................................................. 104 6.6 Supporting Information .................................................................................................................... 104 6.7 Grants ................................................................................................................................................... 105 6.8 Annual Recycling Rebate ...................................................................................................................... 105 6.9 New Program Residential Rate Phase-In ........................................................................................... 105 6.10 Residential Basic Service Organics One-time Adjustments ........................................................... 106 ARTICLE 7. REVIEW OF SERVICES AND PERFORMANCE...................................................107 7.1 Performance Hearing ......................................................................................................................... 107 ARTICLE 8. RECORDS, REPORTS AND INFORMATION REQUIREMENTS....................109 8.1 General ................................................................................................................................................. 109 8.2 Records ................................................................................................................................................ 109 8.3 Reports ................................................................................................................................................. 112 8.4 Adverse Information ......................................................................................................................... 123 8.5 Right to Inspect Records ................................................................................................................... 124 ARTICLE 9. INDEMNIFICATION, INSURANCE AND BOND ...............................................125 9.1 Indemnification .................................................................................................................................. 125 9.2 Hazardous Substances Indemnification ......................................................................................... 126 9.3 CalRecycle Indemnification and Guarantee ................................................................................... 127 9.4 Insurance ............................................................................................................................................. 127 9.5 Faithful Performance Bond ............................................................................................................... 132 9.6 Forfeiture of Performance Bond ....................................................................................................... 133 9.7 Performance Security Beyond Service Term .................................................................................. 133 ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE ..............................................................134 10.1 General ............................................................................................................................................ 134 10.2 Billing and Compensation to the City during the City's Possession ...................................... 135 10.3 City's Right to Relinquish Possession ......................................................................................... 135 10.4 City's Possession Not A Taking ................................................................................................... 135 10.5 Duration of the City's Possession ................................................................................................ 136 ARTICLE 11. DEFAULT, REMEDIES AND LIQUIDATED DAMAGES ................................137 Page 330 City of Palm Desert Franchise Agreement Table of Contents City of Palm Desert Page vi March 10, 2022 11.1 Events of Default ............................................................................................................................ 137 11.2 Criminal Activity of Company .................................................................................................... 139 11.3 Right to Terminate Upon Default ................................................................................................ 139 11.4 Liquidated Damages ..................................................................................................................... 139 11.5 Excuse from Performance ............................................................................................................. 145 11.6 Arbitration ...................................................................................................................................... 145 11.7 Assurance of Performance ............................................................................................................ 146 ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES .........................................................147 12.1 Relationship of Parties .................................................................................................................. 147 12.2 Compliance with Law ................................................................................................................... 147 12.3 Governing Law .............................................................................................................................. 147 12.4 Jurisdiction ...................................................................................................................................... 147 12.5 Assignment ..................................................................................................................................... 148 12.6 Affiliated Companies .................................................................................................................... 150 12.7 Contracting or Subcontracting ..................................................................................................... 151 12.8 Binding on Assigns ........................................................................................................................ 151 12.9 Transition to the Next Company ................................................................................................. 151 12.10 Parties in Interest ........................................................................................................................... 151 12.11 Waiver ............................................................................................................................................. 152 12.12 The Company's Investigation ...................................................................................................... 152 12.13 Condemnation ................................................................................................................................ 152 12.14 Notice ............................................................................................................................................... 152 12.15 Representatives of the Parties ...................................................................................................... 153 12.16 City Free to Negotiate with Third Parties .................................................................................. 153 12.17 Compliance with Municipal Code .............................................................................................. 153 12.18 Privacy ............................................................................................................................................. 154 12.19 Cooperation Following Termination .......................................................................................... 154 12.20 Compliance with Immigration Laws .......................................................................................... 154 12.21 Proprietary Information, Public Records ................................................................................... 155 12.22 Guarantee of Company's Performance ....................................................................................... 155 12.23 Attorney’s Fees ............................................................................................................................... 155 ARTICLE 13. MISCELLANEOUS AGREEMENTS ......................................................................156 13.1 Entire Agreement ........................................................................................................................... 156 13.2 Section Headings ........................................................................................................................... 156 13.3 References to Laws and Other Agreements ............................................................................... 156 13.4 Interpretation .................................................................................................................................. 156 13.5 Agreement ...................................................................................................................................... 156 13.6 Severability ..................................................................................................................................... 156 13.7 Exhibits ............................................................................................................................................ 157 13.8 Non-Waiver Provision .................................................................................................................. 157 13.9 Counterparts ................................................................................................................................... 157 Page 331 City of Palm Desert Franchise Agreement List of Exhibits City of Palm Desert Page vii March 10, 2022 Exhibits 1. City Facilities 2. Public Education and Outreach Plan 3. Initial Rates 4. Rate Adjustment Formula 5. Corporate Guarantee 6. Company’s Faithful Performance Bond 7. Notary Certification 8. Processing, Transfer, and Disposal Services and Facility Standards 9. Sample Recycling Coordinator Calendar of Milestones 10. Annual Recycling Rebate Formula 11. One-Time Residential Organic Materials Rate Adjustment Formula Page 332 City of Palm Desert Franchise Agreement City of Palm Desert 1 March 10, 2022 FRANCHISE AGREEMENT BETWEEN CITY OF PALM DESERT AND BURRTEC WASTE AND RECYCLING SERVICES, LLC FOR INTEGRATED SOLID WASTE MANAGEMENT SERVICES This Exclusive Franchise Agreement for Integrated Solid Waste Management Services for Single-Family, Multi-Family, and Commercial Generators (Agreement) is entered into this 10th day of March, 2022 by and between the City of Palm Desert, a political subdivision of the State of California (City), and Burrtec Waste and Recycling Services, LLC (Company), for the Collection and subsequent transfer, Transportation, Recycling, Processing, and/or Disposal of Discarded Materials and provision of other related services. City and Company may be referred to as a Party or collectively as the Parties. RECITALS WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions to meet the goals and requirements of AB 939; and, WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500-49500 and the applicable provisions of the City Charter, the City of Palm Desert has determined that the public health, safety, and well-being require that an exclusive Franchise be awarded to a qualified company for the Collection, Transportation, Recycling, Processing, and Disposal of Solid Waste and other services to meet the goals and requirements of AB 939; and, WHEREAS, on May 15, 2009, City and Company, entered into that certain Exclusive Franchise Agreement between City of Palm Desert and Burrtec Waste and Recycling Services for Integrated Solid Waste Services (Initial Agreement); and, WHEREAS, the Parties entered into that certain Amended Franchise Agreement dated as of May 15, 2015, for the purposes of integrated Solid Waste Management Services (the Amended Agreement); and WHEREAS, the Amended Agreement will expire on May 31, 2023; and, Page 333 City of Palm Desert Franchise Agreement City of Palm Desert 2 March 10, 2022 WHEREAS, the Parties desire to further amend and restate the Amended Agreement in its entirety, together with all Amendments; and, WHEREAS, the City and the Company desire to enter into this Agreement to amend and supersede the Initial Agreement and Amended Agreement; and, WHEREAS, the Company agrees to and acknowledges that it shall properly Dispose of all Solid Waste Collected in the City pursuant to this Agreement; and, WHEREAS, City and Company are mindful of the provisions of the laws governing the safe Collection, Transport, Recycling, Processing and Disposal of Solid Waste, including AB 939, SB 1383, the Resource Conservation and Recovery Act ("RCRA"), and the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). City and Company desire to leave no doubts as to their respective roles and to memorialize that by entering into this Agreement, City is not thereby becoming an "arranger" or a "Generator" as those terms are used in CERCLA, and that it is Company, not City, who is "arranging for" the Collection from residences in the City, Transport for Disposal, composting or other Processing, and Recycling of municipal Solid Waste which may contain Hazardous Material and further to confirm that as a material inducement to City entering into this Agreement, Company has agreed to fully indemnify City in connection with any claims, losses, liabilities, lawsuits or actions relating to the inadvertent or intentional Collection, Transportation and/or Disposal of Hazardous Materials that may occur in connection with Company’s performance under this Agreement; and WHEREAS, the successful implementation of Solid Waste Handling in Residential, Commercial areas in the City will entail the expenditure of large sums of capital by the Company, for which the Company is entitled to be compensated. City intends that this Agreement will contribute to safeguarding public health by providing the most cost-effective, efficient, reliable, and environmentally appropriate Solid Waste services to its citizens; and, WHEREAS, the State of California has found and declared that the amount of Solid Waste generated in California, coupled with diminishing Disposal capacity and potential adverse environmental impacts from landfilling and the need to conserve natural resources, have created an urgent need for State and local agencies to enact and implement an aggressive integrated waste management program. The State has, through enactment of AB 939 and subsequent related legislation including, but not limited to: the Jobs and Recycling Act of 2011 (AB 341), the Event and Venue Recycling Act of 2004 (AB 2176), SB 1016 (Chapter 343, Statutes of 2008 [Wiggins, SB 1016]), the Mandatory Commercial Organics Recycling Act of 2014 (AB 1826), and the Short-Lived Climate Pollutants Bill of 2016 (SB 1383), directed the responsible State agency, and all local agencies, to promote a reduction in landfill Disposal and to maximize the use of feasible Page 334 City of Palm Desert Franchise Agreement City of Palm Desert 3 March 10, 2022 waste reduction, re-use, Recycling, and composting options in order to reduce the amount of material that must be Disposed; and, WHEREAS, SB 1383 establishes regulatory requirements for jurisdictions, Generators, haulers, Solid Waste Facilities, and other entities to support achievement of State-wide Organic Waste Disposal reduction targets; and, WHEREAS, SB 1383 requires jurisdictions to implement Collection programs, meet Processing Facility requirements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement and fulfill other requirements; and, the City has chosen to delegate some of its responsibilities to Company, acting as the City’s designee, through this Agreement; and, WHEREAS, Company has agreed, as part of this Agreement, to provide such services as are necessary or desirable to ensure City complies with the requirements of all Applicable Laws and regulations including specifically, without limitation, AB 939, AB 341, AB 1594, AB 1826, SB 1383, Public Resources Code Section 40000, et seq, as it may be amended from time to time, and such other laws and regulations of the State of California as may be enacted from time to time concerning Solid Waste, Organic Waste, Recyclable Materials, or the Collection, handling composting, Recycling or Disposal of such materials; and, NOW, THEREFORE, in consideration of the Premises above stated and the terms, conditions, covenants and agreements contained herein, the Parties do hereby agree as follows: Page 335 City of Palm Desert Franchise Agreement City of Palm Desert 4 March 10, 2022 ARTICLE 1. DEFINITIONS Whenever any term used in this Agreement has been defined by the provisions of Sections 8.16.010 and 8.17.010 of the Palm Desert City Code or by Division 30, Part 1, Chapter 2 of the California Public Resources Code, the definitions in the City Code or the Public Resources Code shall apply unless the term is otherwise defined in this Agreement, in which case this Agreement shall control. Except as provided in this Article 1, words beginning with lower case letters are being used with their common ordinary meanings, not as defined terms. Otherwise, the following capitalized words and terms shall have the following meanings: 1.1 AB 341 “AB 341” means the Assembly Bill approved by the Governor of the State of California on October 5, 2011, which amended Sections 41730, 41731, 41734, 41735, 41736, 41800, 42926, 44004, and 50001 of, and added Sections 40004, 41734.5, and 41780.01 and Chapter 12.8 (commencing with Section 42649) to Part 3 of Division 30 of, and added and repealed Section 41780.02 of, the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded and replaced from time to time. 1.2 AB 827 “AB 827” means the Assembly Bill approved by the Governor of the State of California on October 2, 2019, which amended Sections 42649.2, 42649.2, 42649.8, and 42649.81 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time. 1.3 AB 876 “AB 876” means the Assembly Bill approved by the Governor of the State of California on October 8, 2015, which added Section 41821 to the Public Resources Code, relating to Solid Waste as amended, supplemented, superseded, and replaced from time to time. 1.4 AB 939 "AB 939" means the California Integrated Waste Management Act of 1989 (California Public Resources Code Section 40000 et seq.), as it may be amended from time to time. Page 336 City of Palm Desert Franchise Agreement City of Palm Desert 5 March 10, 2022 1.5 AB 1594 “AB 1594” means the Assembly Bill approved by the Governor of the State of California on September 28, 2014, which amended Sections 40507 and 41781.3 of the Public Resources Code, relating to Solid Waste, as amended, supplemented, superseded, and replaced from time to time. 1.6 AB 1826 “AB 1826” means the Organic Waste Recycling Act of 2014 (Chapter 727, Statutes of 2014 modifying Division 30 of the California Public Resources Code), also commonly referred to as “AB 1826,” as amended, supplemented, superseded, and replaced from time to time. 1.7 Affiliate "Affiliate" means all businesses (including corporations, limited and general partnerships and sole proprietorships) which are directly or indirectly related to the Company by virtue of direct or indirect ownership interest or common management shall be deemed to be "Affiliated with" the Company and included within the term "Affiliates" as used herein. An Affiliate shall include a business in which the Company owns a direct or indirect ownership interest, a business which has a direct or indirect ownership interest in the Company and/or a business which is also owned, controlled or managed by any business or individual which has a direct or indirect ownership interest in the Company. For purposes of determining whether an indirect ownership interest exists, the constructive ownership provisions of Section 318(a) of the Internal Revenue Code of 1986, as in effect on the date of this Agreement, shall apply; provided, however, that (i) "ten percent (10%)" shall be substituted for "fifty percent (50%)" in Section 318(a)(2)(C) and in Section 318(a)(3)(C) thereof; and (ii) Section 318(a)(5)(C) shall be disregarded. For purposes of determining ownership under this paragraph and constructive or indirect ownership under Section 318(a), ownership interest of less than ten percent (10%) shall be disregarded and percentage interests shall be determined on the basis of the percentage of voting interest or value which the ownership interest represents, whichever is greater. 1.8 Agreement "Agreement" means this Franchise Agreement between the City and the Company for the Collection, Transportation, Recycling, Processing and Disposal of Solid Waste, and other services, including all exhibits and attachments, and any amendments thereto. Page 337 City of Palm Desert Franchise Agreement City of Palm Desert 6 March 10, 2022 1.9 Alternative Daily Cover (ADC) “Alternative Daily Cover” or “ADC” has the same meaning as in Section 20690 of Title 27 of the California Code of Regulations. 1.10 Alternative Intermediate Cover (AIC) “Alternative Intermediate Cover” or “AIC” has the same meaning as in Section 20700 of Title 27 of the California Code of Regulations. 1.11 Applicable Law "Applicable Law" means all Federal, State, County, and local laws, regulations, rules, orders, judgments, decrees, permits, approvals, or other requirement of any governmental agency having jurisdiction over the Collection, Transportation, Processing, and Disposal of Discarded Materials that are in force on the Effective Date and as may be enacted, issued or amended during the Term of this Agreement. 1.12 Approved C&D Processing Facility “Approved C&D Processing Facility” means the Approved C&D Processing Facilities identified in Exhibit 8 that are C&D Processing Facilities and were Company selected and City approved. 1.13 Approved Disposal Facility “Approved Disposal Facility” means the Approved Disposal Facilities identified in Exhibit 8, that are Disposal Facilities and were Company selected and City approved. 1.14 Approved Facilities “Approved Facility(ies)” means any one of or any combination of the: Approved C&D Processing Facility; Approved Disposal Facility; Approved Organic Waste Processing Facility; Approved Source Separated Recyclable Materials Processing Facility; and, Approved Transfer Facility, each of which are defined in this Article and listed in Exhibit 8. 1.15 Approved Organic Waste Processing Facility “Approved Organic Waste Processing Facility” means the Approved Organic Waste Processing Facilities identified in Exhibit 8, that are Organic Waste Processing Facilities and were Company selected and City approved. Page 338 City of Palm Desert Franchise Agreement City of Palm Desert 7 March 10, 2022 1.16 Approved Source Separated Recyclable Materials Processing Facility “Approved Source Separated Recyclable Materials Processing Facility” means the Approved Source Separated Recyclable Materials Processing Facilities identified in Exhibit 8, that are Source Separated Recyclable Materials Processing Facilities and were Company selected and City approved. 1.17 Approved Transfer Facility “Approved Transfer Facility” means the Approved Transfer Facilities identified in Exhibit 8, that are Transfer Facilities and were Company selected and City approved. 1.18 Back-Haul “Back-Haul” means generating and Transporting C&D Materials, Recyclable Materials and/or Organic Waste to a destination owned and operated by the Generator using the Generator’s own full-time employees and equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A). 1.19 Billings "Billings" means any and all statements of charges for services rendered, howsoever made, described or designated by the City or the Company, or made by others for the City or the Company, to Persons responsible for arranging for Solid Waste removal. 1.20 Bin “Bin” means a rigid Container with hinged lids and wheels with a capacity of at least one (1) cubic yard and less than ten (10) cubic yards. 1.21 Blue Container “Blue Container” has the same meaning as in 14 CCR Section 18982(a)(5) and shall be used for the purpose of storage and Collection of Source Separated Recyclable Materials. 1.22 Bulky Items “Bulky Items” means Solid Waste that cannot and/or would not typically be accommodated within a Cart including specifically: furniture (including chairs, sofas, mattresses,); appliances (including refrigerators, ranges, washers, dryers, water heaters, dishwashers, plumbing, small household appliances and other similar items, commonly Page 339 City of Palm Desert Franchise Agreement City of Palm Desert 8 March 10, 2022 known as “white goods”); electronic equipment (including stereos, televisions, computers and monitors, including laptops, VCRs, microwaves and other similar items commonly known as “brown goods” and “E-Waste”); Universal Waste (vacuum cleaners, phones, cell phones, etc.), and clothing. Bulky Items do not include car bodies, Construction and Demolition Waste. Other items not specifically included or excluded above will be Collected provided that they are not more than eight feet in length, four feet in width, or more than 150 pounds. In the event a question ever arises as to whether a specific item or category of items meets the definition of Bulky Items, City shall be responsible to determine whether said definition shall apply, which determination shall be final and binding on the Parties. Exclusion from the Bulky Items are materials from renovation/additions to homes that are considered Construction and Demolition Material. 1.23 California Code of Regulations (CCR) “California Code of Regulations” or “CCR” means the State of California Code of Regulations. CCR references in this Agreement are preceded with a number that refers to the relevant Title of the CCR (e.g., “14 CCR” refers to Title 14 of CCR). 1.24 CalRecycle “CalRecycle” means the State of California’s Department of Resources Recycling and Recovery, its predecessor or successor. 1.25 Can “Can” means a Solid Waste receptacle provided by the Customer and serviced by manual Collection. 1.26 Cart “Cart” means a polyethylene wheeled Container with a hinged lid and wheels serviced by an automated or semi-automated side-loading truck with a capacity of no less than 30 and no greater than 101 gallons. 1.27 City "City" means the City of Palm Desert, a charter city, and all the territory lying within the municipal boundaries of the City as presently existing or as such boundaries may be modified during the Term of this Agreement. Page 340 City of Palm Desert Franchise Agreement City of Palm Desert 9 March 10, 2022 1.28 City Facility City Facility means any building, park or other site owned, leased, or used regularly and significantly by City for public purposes and not operated as a City enterprise. 1.29 Collect/Collection "Collect" or "Collection" means to take physical possession, Transport, and remove Solid Waste within and from the City. 1.30 Commercial "Commercial" refers to services performed at or for Commercial Premises. 1.31 Commercial Edible Food Generators “Commercial Edible Food Generators” includes Tier One Commercial Edible Food Generators and Tier Two Commercial Edible Food Generators, or as otherwise defined in 14 CCR Section 18982(a)(7). For the purposes of this definition, Food Recovery Organizations and Food Recovery Services are not Commercial Edible Food Generators. 1.32 Commercial Premises "Commercial Premises" means Premises upon which business activity is conducted, including but not limited to retail sales, services, wholesale operations, manufacturing and industrial operations, but excluding Residential Premises upon which business activities are conducted when such activities are permitted under applicable zoning regulations and are not the primary use of the property. Notwithstanding any provision to the contrary herein, in the Palm Desert Municipal Code, or otherwise, for purposes of this Agreement, Premises upon which the following uses (as defined in the Palm Desert Municipal Code) are occurring shall be deemed to be Commercial Premises: restaurants; rooming houses; hotels; motels; offices; manufacturing, processing, or assembling shops or plants; hospitals; clinics; nursing homes; convalescent centers; dormitories; barracks; and card rooms. 1.33 Company "Company" means Burrtec Waste and Recycling Services, LLC, a limited liability company organized and operating under the laws of the State of California and its officers, directors, employees, agents, companies, and subcontractors. Page 341 City of Palm Desert Franchise Agreement City of Palm Desert 10 March 10, 2022 1.34 Company Compensation "Company Compensation" means the revenue received by the Company from Billings in return for providing services in accordance with this Agreement and any amendments to this Agreement. 1.35 Compost “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), which stated, as of the Effective Date of this Agreement, 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. 1.36 Compostable Plastics “Compostable Plastics” or “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard for compostability. 1.37 Construction and Demolition (C&D) Debris "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. 1.38 Container(s) "Containers" means any and all types of Solid Waste receptacles, including Cans, Carts, Bins, Roll-off Boxes, and receptacles provided by Customers. 1.39 Customer “Customer” means the Person having the care and control of any Premises in the City who receives Solid Waste Collection service from the Company pursuant to the terms of this Agreement. Page 342 City of Palm Desert Franchise Agreement City of Palm Desert 11 March 10, 2022 1.40 Designated Waste “Designated Waste” means either of the following: (a) Hazardous Waste that has been granted a variance from Hazardous Waste management requirements pursuant to Section 25143 of the Health and Safety Code. (b) Nonhazardous waste that consists of, or contains, pollutants that, under ambient environmental conditions at a waste management unit, could be released in concentrations exceeding applicable water quality objectives or that could reasonably be expected to affect beneficial uses of the waters of the state as contained in the appropriate state water quality control plan. 1.41 Discarded Materials “Discarded Materials” are a form of Solid Waste, and shall be regulated as such. For purposes of this Agreement, material is deemed to have been discarded, without regard to whether it is destined for Recycling or Disposal, and whether or not is has been separated from other Solid Wastes, in all cases where a fee or other net compensation, in any form or amount, is directly or indirectly solicited from, or, levied, charged, or otherwise imposed on, or paid by, the Generator or Customer in exchange for handling services. As used herein, handling services include, without limitation, the Collection, removal, Transportation, delivery, and Processing and/or Disposal of the material. Discarded Materials do not include Edible Food that is recovered for human consumption and is not discarded. For the purposes of this Agreement, Discarded Materials include Source Separated Recyclable Materials, Source Separated Organic Materials, Food Waste, Refuse, Bulky Items, and C&D once the materials have been placed in Containers for Collection or, if not placed in Containers for Collection, placed properly for Collection. 1.42 Disposal "Disposal" or any variation thereof means the ultimate disposition of Solid Waste Collected by the Company at a landfill in full regulatory compliance. 1.43 Disposal Cost “Disposal Cost” means the portion of the fee charged to the Customer that represents the cost of Disposal. Page 343 City of Palm Desert Franchise Agreement City of Palm Desert 12 March 10, 2022 1.44 Disposal Site(s) "Disposal Site(s)" mean the Solid Waste handling Facility or Facilities utilized for the ultimate Disposal of Solid Waste Collected by the Company. 1.45 Divert/Diversion ”Divert” or “Diversion” (or any variation thereof) means to prevent Discarded Materials from Disposal at 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, subsequent to the provisions of AB 939. Diversion is a broad concept that is to be inclusive of material handling and Processing changes that may occur over the Term including, but not limited to, changes in standard industry practice or implementation of innovative (but not necessarily fully proven) techniques or technology that reduce Disposal risk, decrease costs and/or are for other reasons deemed desirable by the City. 1.46 Diversion Site “Diversion Site” means a Facility duly licensed and permitted to receive and Process Source-Separated or Discarded Materials for Reuse or for further Processing so as to prevent the materials from being landfilled at a Disposal Site. 1.47 Edible Food “Edible Food” means food intended for human consumption. For the purposes of this Agreement, Edible Food is not Solid Waste if it is recovered and not discarded. Nothing in this Agreement requires or authorizes the recovery of Edible Food that does not meet the food safety requirements of the California Retail Food Code. If the definition in 14 CCR Section 18982(a)(18) for Edible Food differs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement. 1.48 Electronic Waste or E-Waste “Electronic Waste” or “E-Waste” means electronic equipment and includes, but is not limited to, stereos, televisions, computers and computer monitors, VCRs, cellular phones, fax machines, household copiers, computer printers, other items with electric plugs that are banned from landfill Disposal, and other similar items commonly known as “brown goods.” Page 344 City of Palm Desert Franchise Agreement City of Palm Desert 13 March 10, 2022 1.49 Environmental Laws "Environmental Laws" means all federal and State statutes, county, local and the City ordinances concerning public health, safety and the environment including, by way of example and not limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 USC §9601 et seq.; the Resource Conservation and Recovery Act, 42 USC §6902 et seq.; the Federal Clean Water Act, 33 USC §1251 et seq.; the Toxic Substances Control Act, 15 USC §1601 et seq.; the Occupational Safety and Health Act, 29 USC §651 et seq.; the California Hazardous Waste Control Act, California Health and Safety Code §25100 et seq.; the California Toxic Substances Control Act, California Health and Safety Code §25300 et seq.; the Porter-Cologne Water Quality Control Act, California Water Code §13000 et seq.; the Safe Drinking Water and Toxic Enforcement Act, California Health and Safety Code §25249.5 et seq.; as currently in force or as hereafter amended, and all rules and regulations promulgated thereunder. 1.50 Excluded Waste “Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, Medical Waste, infectious, regulated radioactive waste, and toxic substances or material that Designated Facility operator(s) 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 Company’s reasonable opinion would present a significant risk to human health or the environment, cause a nuisance or otherwise create or expose Company or City to potential liability; but not including de minimis volumes or concentrations of waste of a type and amount normally found in Residential 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 used motor oil and filters, household batteries, Universal Wastes, and/or latex paint when such materials are defined as allowable materials for Collection through this Agreement and the Generator or Customer has properly placed the materials for Collection pursuant to instructions provided by City or Company as set forth in this Agreement. 1.51 Facility "Facility" means any plant or site, owned or leased and maintained, operated or used by the Company for purposes of performing under this Agreement. Page 345 City of Palm Desert Franchise Agreement City of Palm Desert 14 March 10, 2022 1.52 Food Recovery “Food Recovery” means actions to Collect and distribute Edible Food for human consumption which otherwise would be Disposed, or as otherwise defined in 14 CCR Section 18982(a)(24). 1.53 Food Recovery Organization “Food Recovery Organization” means an entity that primarily 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; and, C. A nonprofit charitable temporary food Facility as defined in Section 113842 of the Health and Safety Code. If the definition in 14 CCR Section 18982(a)(25) for Food Recovery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this Agreement. 1.54 Food Recovery Service “Food Recovery Service” means a Person 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). 1.55 Food Scraps “Food Scraps” means all food such as, but not limited to, fruits, vegetables, meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. Food Scraps excludes fats, oils, and grease when such materials are Source Separated from other Food Scraps. 1.56 Food-Soiled Paper “Food-Soiled Paper” means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons. Page 346 City of Palm Desert Franchise Agreement City of Palm Desert 15 March 10, 2022 1.57 Food Waste “Food Waste” means Source Separated Food Scraps, Food-Soiled Paper, and Compostable Plastics. Food Waste is a subset of Organic Materials. 1.58 Franchise "Franchise" means the exclusive right granted by the City to provide Solid Waste services within the City. 1.59 Franchise Fee “Franchise Fee” means the fee paid by the Company to the City, or retained by the City from service fees remitted to the City as set forth in Section 3.1.1. 1.60 Generator “Generator” means any Person whose act first causes Discarded Materials to become subject to regulation under federal, State, or local regulations. 1.61 Gray Container “Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and shall be used for the purpose of storage and Collection of Gray Container Waste or Refuse, subset of Solid Waste. For the purposes of this Agreement, Gray Containers may be gray or black, as specified in 14 CCR Section 18982(a)(28). 1.62 Gray Container Waste “Gray Container Waste” means Solid Waste that is Collected in a Gray Container that is part of a three-Container Discarded Materials Collection service that prohibits the placement of Prohibited Container Contaminants in the Gray Container as specified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.6). For the purposes of this Agreement, Gray Container Waste includes carpet and textiles. 1.63 Green Container “Green Container” has the same meaning as in 14 CCR Section 18982(a)(29) and shall be used for the purpose of storage and Collection of Source Separated Green Container Organic Waste. Page 347 City of Palm Desert Franchise Agreement City of Palm Desert 16 March 10, 2022 1.64 Gross Receipts “Gross Receipts” means any and all revenues, receipts, or compensation in any form received by the Company or its subsidiaries, parent companies, or other Affiliates of the Company, for the Collection and Transportation of Solid Waste pursuant to this Agreement, in accordance with Generally Accepted Accounting Principles (GAAP), including, but not limited to, monthly Customer fees for Collection of Solid Waste, without subtracting Franchise Fees, Vehicle Impact Fee, Recycling Fees, Tax Roll Billing Fee, or any other cost of doing business. Sales revenue from the sale of Recyclable Material is excluded from Gross Receipts for purposes of calculating Franchise Fees and Recycling Fees. 1.65 Hazardous Material "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 Page 348 City of Palm Desert Franchise Agreement City of Palm Desert 17 March 10, 2022 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. 1.66 Hazardous Waste "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.), all future amendments thereto, and all rules and regulations promulgated thereunder. 1.67 Household Hazardous Waste (“HHW”) "Household Hazardous Waste" means material used in residences that may threaten human health or the environment when improperly discarded and usually has one or more of the following characteristics; flammable, toxic, corrosive, and/or reactive. 1.68 Incompatible Materials “Incompatible Material” or “Incompatibles” mean(s) human-made Inert material, including, but not limited to, glass, metal, plastic, and also includes Organic Waste that the receiving end-user, Facility, operation, property, or activity is not designed, permitted, or authorized to perform Organic Waste recovery activities as defined in 14 CCR Section 18983.1(b), or as otherwise defined by 14 CCR Section 17402(a)(7.5). 1.69 Inerts “Inerts” means materials such as concrete, soil, asphalt, and ceramics. 1.70 Large Event “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 is 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 Agreement. Page 349 City of Palm Desert Franchise Agreement City of Palm Desert 18 March 10, 2022 1.71 Large Venue “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 14 CCR, Division 7, Chapter 12 and this Agreement, 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 14 CCR, Division 7 Chapter 12 and this Agreement, 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 Agreement. 1.72 Master-Billed Accounts “Master-Billed Accounts” or “Master-Billed” means those accounts billed for Collection services from more than one dwelling unit. 1.73 Mulch “Mulch” means a layer of material applied on top of soil, and, for the purposes of the Agreement, Mulch shall conform with the following conditions, or conditions as otherwise specified in 14 CCR Section 18993.1(f)(4): i. Meets or exceeds the physical contamination, maximum metal concentration, and pathogen density standards for land applications specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3). ii. Was produced at one or more of the following types of Facilities: a) A compostable material handling operation or Facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under Division 7 of Title 14 of the CCR, other than a chipping and grinding operation or Facility as defined in 14 CCR Section 17852(a)(10); b) A transfer/Processing Facility or transfer/Processing operation as defined in 14 CCR Section 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR, Division 7, Chapter 12; or, c) A Solid Waste landfill as defined in PRC Section 40195.1 that is permitted under 27 CCR, Division 2. Page 350 City of Palm Desert Franchise Agreement City of Palm Desert 19 March 10, 2022 1.74 Multi-Family, Multi-Family Dwelling Unit or Multi-Family Premises “Multi-Family” 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. 1.75 Non-Organic Recyclables “Non-Organic Recyclables” means non-putrescible and non-hazardous Recyclable wastes including, but not limited to, bottles, cans, metals, plastics, and glass, or as otherwise defined in 14 CCR Section 18982(a)(43). Non-Organic Recyclables are a subset of Source Separated Recyclable Materials. 1.76 Organic Materials "Organic Materials" means Yard Waste and Food Waste, individually or collectively. No Discarded Material shall be considered to be Organic Materials, however, unless it is separated from Recyclable Materials and Refuse. Organic Materials are a subset of Organic Waste. 1.77 Organic Waste “Organics” or “Organic Waste” means Solid Wastes 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. 1.78 Owner "Owner" means the Person holding the legal title to the real property constituting the Premises to which Solid Waste Collection service is to be provided under this Agreement or the Person holding legal title to the Disposal Site. Page 351 City of Palm Desert Franchise Agreement City of Palm Desert 20 March 10, 2022 1.79 Person "Person" means any individual, firm, association, organization, partnership, corporation, business trust, joint venture, the United States, the State of California, the County of Riverside, town, C, or special purpose district. 1.80 Premises "Premises" means any land, or building in the City where Solid Waste is generated or accumulated. 1.81 Process, Processed, or Processing “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). 1.82 Prohibited Container Contaminants “Prohibited Container Contaminants” means the following: (i) Discarded Materials placed in the Recyclable Materials Container that are not identified as acceptable Source Separated Recyclable Materials for Collection in the Recyclables Container; (ii) Discarded Materials placed in the Organics Container that are not identified as acceptable Source Separated Organic Materials for Collection in the Organics Container; (iii) Discarded Materials placed in the Refuse Container that are acceptable Source Separated Recyclable Materials and/or Source Separated Organic Materials to be placed in the Recyclables Container and/or Organic Materials Container; and (iv) Excluded Waste placed in any Container. 1.83 Property Owner "Property Owner" means the Owner of real property, or as otherwise defined in 14 CCR Section 18982(a)(57). 1.84 Proposition 218 "Proposition 218" means Articles XIIIC and XIIID of the California Constitution. Page 352 City of Palm Desert Franchise Agreement City of Palm Desert 21 March 10, 2022 1.85 Putrescible Waste “Putrescible Waste” means wastes that are capable of being decomposed by micro- organisms with sufficient rapidity as to cause nuisances because of odors, gases, or other offensive conditions, and includes materials such as, but not limited to Food Waste, Food Scraps, offal, and dead animals; or as otherwise defined in 14 CCR Section 17402(a)(21). 1.86 Rate Year "Rate Year" means the twelve month period from July 1 to June 30, for each year of the Agreement. 1.87 Recycle/Recycling “Recycle” or “Recycling” means the process of Collecting, sorting, cleansing, treating, and reconfiguring materials for the purpose of returning 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. 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. 1.88 Recycling Fee “Recycling Fee” means the fee paid by the Company to the City to fund the City’s costs of Solid Waste management. 1.89 Recyclable Materials or Recyclables "Recyclable Materials" or “Recyclables” means those Discarded Materials that: the Generators set out in Recyclables Containers for Collection for the purpose of Recycling by the Company and that exclude Excluded Waste. No Discarded Materials shall be considered Recyclable Materials unless such material is separated from Organic Materials, and Refuse. Recyclable Materials shall include, but not be limited to: newspaper (including inserts, coupons, and store advertisements); 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, gabletop 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, Tyvex non-tearing paper envelopes); chipboard; corrugated Cardboard; glass containers of any color (including brown, clear, and green glass bottles and jars); Page 353 City of Palm Desert Franchise Agreement City of Palm Desert 22 March 10, 2022 aluminum (including beverage containers and small pieces of scrap metal); steel, tin, or bi-metal cans; mixed plastics such as plastic containers (no. one (1) to seven (7)), except expanded Polystyrene (EPS); bottles including containers made of HDPE, LDPE, or PET. 1.90 Refuse "Refuse" means a form of Solid Waste, and shall be regulated as such. Refuse refers specifically to Gray Container Waste. 1.91 Refuse Vehicle Impact Fee “Refuse Vehicle Impact Fee” means the fee paid to the City for costs of maintaining and repairing roads attributed to Company’s Collection Vehicles. 1.92 Renewable Natural Gas (RNG) “Renewable Natural Gas” or “RNG” means gas derived from Organic Waste that has been Diverted from a landfill and Processed at an in-vessel digestion Facility that is permitted or otherwise authorized by 14 CCR to recover Organic Waste, or as otherwise defined in 14 CCR Section 18982(a)(62). 1.93 Residential "Residential" refers to services performed at or for Residential Premises. 1.94 Residential Premises "Residential Premises" means property used for Residential purposes, including both single-family and apartment dwelling units, irrespective of whether such dwelling units are rental units or are Owner-occupied. 1.95 Residential Tax Roll Billing “Residential Tax Roll Billing” means the billing of municipal Solid Waste services to non- Master-Billed single family residences and apartment complexes with four units or less (that receive Residential service) on the Property Owner’s tax roll. Page 354 City of Palm Desert Franchise Agreement City of Palm Desert 23 March 10, 2022 1.96 Reuse “Reuse” or any variation thereof, means the use, in the same, or similar, form as it was produced, of a material which might otherwise be discarded, or as otherwise defined in 14 CCR Section 17402.5(b)(2). 1.97 Roll-off Box “Roll-off Box” means an open-top metal Container serviced by a roll-off truck with a capacity of ten (10) cubic yards or larger. 1.98 SB 1383 “SB 1383” means the Short-Lived Climate Pollutants Act of 2016 (an act to add Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and to add Chapter 13.1 [commencing with Section 42652] to Part 3 of Division 30 of the Public Resources Code, relating to methane emissions), also commonly referred to as "SB 1383," as amended, supplemented, superseded, and replaced from time to time. 1.99 SB 1383 Regulations “SB 1383 Regulations” means those regulations promulgated by CalRecycle to implement SB 1383 as they may be amended, supplemented, superseded, and replaced from time to time. 1.101 Self-Hauler or Self-Haul “Self-Hauler” or “Self-Haul” means a Person who hauls Discarded Materials, recovered material, or any other material, to another Person, or as otherwise defined in 14 CCR Section 18982(a)(66). Self-Hauler also includes a Person who Back-Hauls waste, as defined in 14 CCR Section 18982(a)(66)(A). 1.102 Sharps “Sharps” means hypodermic needles, pen needles, intravenous needles, lancets, and other devices that are used to penetrate the skin for the delivery of medications. 1.103 Solid Waste "Solid Waste" means all discarded putrescible and non-putrescible solid, semisolid, and liquid wastes, including Refuse, Construction and Demolition Debris, Bulky Items, Recyclable Materials, and Organic Waste, or any combination thereof which are Page 355 City of Palm Desert Franchise Agreement City of Palm Desert 24 March 10, 2022 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 waste water, which are Collected and Transported under the authorization of the City or are Self-Hauled by residents 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 Agreement shall be regulated as such, whether or not they may be potentially Recyclable Material, 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 (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 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, pursuant to PRC, Division 30. 1.104 Source Separated “Source Separated” means materials, including commingled or mixed Recyclable Materials and commingled or mixed Organic Materials, that have been separated or kept separate from other Solid Waste and Refuse, at the point of generation, for the purpose of additional sorting or Processing of 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 Agreement, Source Separated shall include separation of materials by the Generator, Property Owner, Property Owner’s employee, property manager, or property manager’s employee into different Containers for the purpose of Collection such that Source Separated materials are separated from Refuse for the purposes of Collection and Processing. Page 356 City of Palm Desert Franchise Agreement City of Palm Desert 25 March 10, 2022 1.105 Source Separated Organic Materials “Source Separated Organic Materials” means the Source Separated Organic Waste that are specifically intended for Collection in the Organics Containers by Company under this Agreement including, but not limited to, Food Waste and Yard Waste, and excluding carpets, non-compostable paper, and textiles. The accepted types of Source Separated Organic Materials and process for modifying the accepted types of Source Separated Organic Materials are specified in Article 4. Source Separated Organic Materials are a subset of Organic Waste. 1.106 Source Separated Recyclable Materials “Source Separated Recyclable Materials” means Source Separated Recyclables Materials that are specifically intended for Collection from the Recyclables Containers by the Company under the terms of this Agreement. The accepted types of Source Separated Recyclable Materials are specified in Section 4.3.2. 1.107 State “State” means the State of California. 1.108 Term “Term” means the Term of this Agreement, including extension periods if granted, as provided for in Article 2. 1.109 Tier One Commercial Edible Food Generators “Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: 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. E. Wholesale Food Vendor. Page 357 City of Palm Desert Franchise Agreement City of Palm Desert 26 March 10, 2022 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 Agreement. 1.110 Tier Two Commercial Edible Food Generators “Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982: 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. 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 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 Agreement. 1.111 Transfer Facility “Transfer Facility” means that Solid Waste handling Facility and Facilities used by Company to receive Discarded Materials, temporarily store, and to transfer the Discarded Materials directly from smaller to larger vehicles for Transport to a Disposal Site. 1.112 Transformation “Transformation” means incineration, pyrolysis, distillation, gasification, or biological conversion other than composting. “Transformation” does not include composting. Page 358 City of Palm Desert Franchise Agreement City of Palm Desert 27 March 10, 2022 1.113 Transportation, Transport, or Transporting “Transportation,” “Transport,” or “Transporting” means the act of conveying Collected materials from one location to another. 1.114 Universal Waste “Universal Waste” means a category of Hazardous Wastes that includes batteries (rechargeable and single use, except automobile batteries), fluorescent lamps and tubes, thermostats, electronic devices (televisions, computer monitors, computers, printers, video cassette recorders, cell phones, telephones, and radios), electrical switches (from chest freezers, pre-1972 clothes washers, sump pumps, electric space heaters, clothes irons, silent light switches, automobile hood and trunk lights, and ABC brakes), pilot lights sensors (found in gas appliances such as stoves, ovens, clothes dryers, water heaters, furnaces, and space heaters), mercury gauges (barometers, manometers, blood pressure, and vacuum gauges), mercury added novelties (musical greeting cards, pre- 1997 athletic shoes with flashing lights, mercury maze games), mercury thermometers, non-empty aerosol cans containing Hazardous Materials. 1.115 Working Day “Working Day” means each calendar day, excluding Saturdays, Sundays, and holidays. 1.116 Yard Waste “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. Page 359 City of Palm Desert Franchise Agreement City of Palm Desert 28 March 10, 2022 ARTICLE 2. GRANT AND ACCEPTANCE OF FRANCHISE 2.1 Grant and Acceptance of Franchise Subject to the terms and conditions of this Agreement, the City hereby grants to the Company a Franchise to Collect, transfer, Transport, Recycle, Process, and Dispose of Solid Waste (including Source Separated Recyclable Materials and Source Separated Organic Materials) accumulating in the City that is required to be accumulated and offered for Collection to the Company in accordance with this Agreement. The Company hereby accepts the Franchise on the terms and conditions set forth in this Agreement. 2.2 Exclusive Nature of Franchise During the Term of this Agreement, except as otherwise provided in Section 2.7 below, or as may otherwise be provided by federal or State law, the rights granted to the Company under this Agreement shall be exclusive to the Company. The City will not let any contract to, or enter into any agreement with, any other Person for the performance of the services herein required to be performed by the Company. The City shall adopt such ordinances or other regulations as it deems to be necessary or desirable to protect the exclusive rights granted herein. The City shall reasonably cooperate with the Company in its efforts to enforce the exclusivity hereof. City shall have the right, but not the obligation, to enforce the exclusivity hereof. Should the City wish to take administrative, law enforcement, or other legal action against any Person that infringes on the Company’s exclusive rights, the Company shall reimburse the City for its reasonable administrative, law enforcement, or other legal costs related to any such action. Nothing herein shall preclude Company from taking such legal action against third parties as it deems appropriate to protect the exclusive nature of its Franchise. 2.3 Effective Date The effective date of this Agreement shall be April 1, 2022. 2.4 Term of Agreement The Term of this Agreement shall be eleven (11) years, commencing at midnight April 1, 2022, and expiring at midnight March 31, 2033. Page 360 City of Palm Desert Franchise Agreement City of Palm Desert 29 March 10, 2022 2.4.1 City Option to Extend Term City shall have the option to extend the Term of this Agreement upon expiration of the initial Term under Section 2.4 up to three (3) years, in three (3), twelve (12)-month increments. The City may, upon ninety-day (90-day) advance written notice to the Company prior to the expiration of the initial Term of this Agreement under Section 2.4, exercise the first extension option, for twelve (12) months. If City provides this extension notice, the Agreement will automatically renew for twelve (12) months. The City may, upon ninety-day (90-day) advance written notice to the Company prior to the expiration of this first extension stated above, exercise the second extension option, for twelve (12) additional months. If City provides this second extension notice, the Agreement will automatically renew for twelve (12) additional months. The City may, upon ninety-day (90-day) advance written notice to the Company prior to the expiration of this second extension stated above, exercise the third extension option, for twelve (12) additional months. If City provides this third extension notice, the Agreement will automatically renew for twelve (12) additional months. 2.5 Conditions to Effectiveness of Agreement The obligation of the City to permit this Agreement to become effective and to perform its undertakings provided for in this Agreement is subject to the satisfaction of each and all of the conditions set out below, each of which may be waived in whole or in part by the City. a) Accuracy of Representations. Representations and warranties made by the Company throughout this Agreement are accurate, true, and correct on and as of the effective date of this Agreement. b) Absence of Litigation. There is no litigation pending in any court challenging the award of this Franchise to the Company or the execution of this Agreement or seeking to restrain or enjoin its performance. c) Furnishing of Insurance and Bonds. The Company has furnished evidence of the insurance and bonds required by Article 9. d) Legal Challenge. The City Council's Resolution approving this Agreement shall become effective pursuant to California law. If a referendum petition or legal challenge to the award of this Agreement is submitted or filed, Contractor shall defend, indemnify, and hold City harmless for all costs incurred to defend such challenge. Contractor shall further reimburse City for any costs incurred in any election subject to this Section. In the event that the City's residents submit a valid referendum petition challenging award of this Agreement, City may elect to conduct an election on such award. If so, Company shall reimburse City for all Page 361 City of Palm Desert Franchise Agreement City of Palm Desert 30 March 10, 2022 costs associated with conducting such election within thirty (30) days of receipt of an invoice from City. 2.6 Delegation of Authority The administration of this Agreement by the City shall be under the supervision and direction of the City Manager or their designee, and the actions specified in this Agreement, unless otherwise stated, shall be taken by Director of Development Services or the Director’s designee. 2.7 Limitations on Scope of Franchise The Franchise granted to the Company shall be exclusive except as to the categories of Solid Waste listed in this Section. The granting of this Franchise shall not preclude the categories of Solid Waste listed below from being delivered to and Collected and Transported by others provided that nothing in this Agreement is intended to or shall be construed to excuse any Person from obtaining any authorization from the City which is otherwise required by law: a) The sale or donation of Bulky Items, C&D Materials, Source Separated Recyclable Materials and/or Source Separated Organic Materials by the Generator to any Person or entity other than Company; provided, however, to the extent permitted by law, if the Generator is required to pay monetary or non-monetary consideration for the Collection, storage, Transportation, transfer, or Processing of such material, or any advisory or consulting services therewith the fact that the Generator receives a reduction or discount in price (or in other terms of the consideration the Generator is required to pay) shall not be considered a sale or donation; b) Solid Waste, including C&D Materials, Recyclable Materials and Organic Materials, which is removed from any Premises by a Self-Hauler or Back-Hauler, which is the Generator or Customer, and which is Transported personally by the Generator or Customer of such Premises (or by their full-time employees) to a Processing or Disposal Facility; c) Recyclable Materials and Organic Materials which are Source Separated at any Premises by the Generator or Customer and donated to youth, civic, or charitable organizations) Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et. seq., California Public Resources Code; d) Property Owners may Self-Haul their own Solid Waste, Recyclable Materials, Organic Materials, and C&D Materials when undertaking special projects or have Page 362 City of Palm Desert Franchise Agreement City of Palm Desert 31 March 10, 2022 excess materials; however, Property Owners must maintain regular Solid Waste Collection services through City’s Franchised hauler (ie., Company); e) Yard Waste removed from Premises by a gardening, landscaping, or tree trimming Company utilizing its own equipment as an incidental part of a total service offered by the Company rather than as a hauling service; f) Construction and Demolition Debris that is incidentally removed by a duly licensed construction or demolition company or by the City, where the licensed company utilizes its own equipment and employees; g) Animal waste and remains from slaughterhouse or butcher shops for use as tallow; h) By-products of sewage treatment, including sludge, sludge ash, grit, and screenings; i) Hazardous Waste and radioactive waste, regardless of its source; j) The periodic or emergency Collection, removal, Disposal or Diversion of Solid Waste (including Recyclable Materials and Organic Materials) by the City through the City officers or employees in the normal course of their employment; k) Pet food (animal feed intended for consumption by pets) Collected from Industrial Customers at no cost to the Customer or for which Customer sells or is otherwise compensated by other Persons in a manner resulting in a net payment to the Customer, and which is Diverted from Disposal by delivery to hog farms or otherwise used as animal feed; l) Edible food recovered for human consumption; m) The Collection, transfer, and transport of clean dirt; Containers delivered for Recycling under the California Beverage Container Recycling Litter Reduction Act, Section 14500, et. seq. California Public Resources Code; n) The Collection, transfer, transport, Recycling, Processing, and Disposal of Solid Waste by City through City officers or employees in the normal course of their City employment; and, o) Solid Waste Handling Services for governmental agencies other than City, which may have Facilities in City, but over which City has no jurisdiction in connection with the regulation of Solid Waste. The Company acknowledges and agrees that the City may permit other Persons besides the Company to Collect any or all types of the Solid Waste listed in this Section 2.7, Page 363 City of Palm Desert Franchise Agreement City of Palm Desert 32 March 10, 2022 including Recyclable and Organic Materials, without seeking or obtaining approval of the Company under this Agreement. This grant to the Company of an exclusive Franchise, right, and privilege to Collect, Transport, or Process and Dispose of Solid Waste shall be interpreted to be consistent with State and federal laws, now and during the Term of the Franchise, and the scope of this exclusive Franchise shall be limited by current and developing State and federal laws with regard to Solid Waste handling, exclusive Franchise, control of Recyclable Materials, Solid Waste flow control, and related doctrines. In the event that future interpretations of current law, enactment or developing legal trends limit the ability of the City to lawfully provide for the scope of Franchise services as specifically set forth herein, the Company agrees that the scope of the Franchise will be limited to those services and materials which may be lawfully provided for under this Agreement, and that the City shall not be responsible for any lost profits claimed by the Company to arise out of further limitations of the scope of the Agreement set forth herein. In such an event, it shall be the responsibility of the Company to minimize the financial impact to other services being provided as much as possible. 2.8 City's Right to Direct Changes 2.8.1 General The City may direct the Company to perform additional services (including new Diversion programs, etc.) or modify the manner in which it performs existing services or bills for services. Pilot programs and innovative services which may entail new Collection methods, different kinds of services and/or new requirements for Customers, and alternative rate structures are included among the kinds of changes which the City may direct. The Company shall be entitled to an adjustment in its Company Compensation based on its reasonable costs for providing such additional or modified services, as agreed between the City and the Company and subject to any procedural requirements to adjust the rates. If the Company and the City cannot agree on terms and conditions of such additional or expanded services within ninety (90) days from the date when the City first requests the Company to perform such services, the Company acknowledges and agrees that the City may permit Persons other than the Company to provide such services. 2.8.2 New Diversion Programs The Company shall present, within 30 days of a request to do so by the City, a proposal to provide additional or expanded Diversion services. The proposal shall contain a complete description of the following: Page 364 City of Palm Desert Franchise Agreement City of Palm Desert 33 March 10, 2022 • Collection methodology to be employed (equipment, manpower, etc.). • Equipment to be utilized (vehicle number, types, capacity, age, etc.). • Labor requirements (number of employees by classification). • Type of materials to be Collected and Containers to be utilized. • Provision for program publicity/education/marketing. • Projection of the annual financial results of the program's operations in an operating statement format including documentation of the key assumptions underlying the projections and the support for those assumptions. 2.8.3 City's Right to Acquire Services The Company acknowledges and agrees that the City may permit other Persons besides the Company to provide additional Solid Waste services not otherwise contemplated under this Agreement. If pursuant to Section 2.8.2, the Company and the City cannot agree on terms and conditions of such additional or expanded Diversion services within ninety (90) days from the date when the City first requests a proposal from the Company to perform such services, the Company acknowledges and agrees that the City may permit Persons other than the Company to provide such services. In the event that City exercises its right to permit third party Persons to provide such services, and if such a decision reduces or eliminates Company’s costs to provide Collection services as contemplated under Article 4 of this Agreement, Company agrees to reduce its Billings proportionately. 2.9 Ownership of Solid Waste Once Solid Waste is placed in Containers and properly placed at the designated Collection location, ownership and the right to possession shall transfer directly from the Customer to the Company by operation of this Agreement. Subject to the Company's objective to meet the source reduction and Recycling goals which apply to the City and the City's right to direct the Company to Process and Dispose of Solid Waste at a particular licensed Solid Waste Facility or to Dispose of Solid Waste at a particular licensed Disposal Site, if and only if the City exercises such right by providing specific written direction to the Company, the Company is hereby granted the right to retain, Recycle, Process, Dispose of, and otherwise use such Solid Waste, or any part thereof, in any lawful fashion or for any lawful purpose desired by the Company. Subject to the provisions of this Agreement, the Company shall have the right to retain any benefit resulting from its right to retain, Recycle, Process, Dispose of, or Reuse the Solid Waste, Organic Materials, and Recyclable Materials which it Collects. Solid Waste, Organic Waste, and Recyclable Materials, or any part thereof, which is Disposed of at any of the Approved Facilities(whether landfill, transformation Facility, transfer Station or Page 365 City of Palm Desert Franchise Agreement City of Palm Desert 34 March 10, 2022 Processing Facility) shall become the property of the Owner or operator of the Approved Facility once deposited there by the Company. The City may obtain ownership or possession of Solid Waste placed for Collection upon written notice of its intent to do so, however, nothing in this Agreement shall be construed as giving rise to any inference that the City has such ownership or possession unless such written notice has been given to the Company. 2.10 Company Status The Company represents and warrants that it is duly organized, validly existing and in good standing under Applicable Laws. It is qualified to transact business in the State of California and has the power to provide services as required by this Agreement. 2.11 Company Authorization The Company has the authority to enter into and perform its obligations under this Agreement. The Board of Directors or partners of the Company (or the shareholders, if necessary) have taken all actions required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution of this Agreement. The Persons signing this Agreement on behalf of the Company have authority to do so. Company shall authorize one employee for the City as a single point of contact for issues arising under this Agreement. City may accept that this employee’s actions are taken on behalf of and with the full approval of the Company. 2.12 Annexations This Agreement extends to any territory annexed to the City during the Term of this Agreement except to the extent that Collection by the Company within that annexed territory would violate the provisions of Public Resources Code Section 49520. In such event, this Agreement shall become effective as to such area at the earliest possible date permitted by law, and the City agrees that it shall cooperate with the Company to fulfill any requirement necessary for the Company to serve the annexed area consistent with this Section. 2.13 Mandatory Service It is understood and agreed that Refuse Collection service from Company is a mandatory service of all Premises within the City of Palm Desert. City may assist Company in enforcing the mandatory service requirement of this Agreement in its sole discretion. Page 366 City of Palm Desert Franchise Agreement City of Palm Desert 35 March 10, 2022 If at a future time, the City updates its Municipal Code to include mandatory Collection service of Recyclable Materials and Organic Materials, the City may similarly enforce such mandatory service requirements under a new City ordinance in its sole discretion. 2.14 Permits and Licenses Company shall acquire and maintain all necessary permits and licenses for the Collecting, Transporting, Processing, and storing of Solid Waste, Organic Materials, and Recyclables, disposing of Solid Waste, and the Processing of Recyclable Materials and Organic Materials. Company shall carry a business license from the City of Palm Desert, meeting all license requirements. Failure to maintain all required licenses and permits shall be deemed a material breach of contract for which City may terminate this Agreement as provided in Section 11.1. Page 367 City of Palm Desert Franchise Agreement City of Palm Desert 36 March 10, 2022 ARTICLE 3. FRANCHISE AND ADMINISTRATIVE FEE 3.1 Franchise, Recycling, and Administrative Fee 3.1.1 Franchise Fee Amount In consideration of the exclusive Franchise granted pursuant to this Agreement, the Company shall pay to the City a Franchise Fee equal to four percent (4.0%) of the Company’s Gross Receipts collected under this Agreement. The Company shall remit the Franchise Fee payment to the City according to Section 3.1.5 below. Company and City agree the Franchise Fee is a negotiated amount that is reasonably related to the value of the rights granted to Company under this Agreement. The payment of the Franchise Fee is an obligation of Company. 3.1.2 Recycling Fee Amount The Company shall pay to the City a Recycling Fee of two percent (2.0%) of the Company’s Gross Receipts collected under this Agreement. The Company shall remit to the City this Recycling Fee according to Section 3.1.5 below. An amount equal to the Recycling Fee as negotiated shall be added to the rates charged to Customers. The Recycling Fee may be adjusted by the City, and in such case rates charged to Customers shall be adjusted up or down by a corresponding amount. Any such adjustment shall be considered in adjustments to the Company rates as described in Sections 6.4.2 and 6.4.3. 3.1.3 Refuse Vehicle Impacts The Company shall pay to the City a Refuse Vehicle Impact Fee of four and one tenth percent (4.1%) of the Company’s Gross Receipts collected under this Agreement for the costs of maintaining and repairing roads attributed to Solid Waste Collection Vehicles. The Company shall remit to the City this fee according to Section 3.1.5 below. An amount equal to the Refuse Vehicle Impact Fee as negotiated shall be added to the rates charged to Customers. The Refuse Vehicle Impact Fee may be adjusted by the City, and in such case rates charged to Customers shall be adjusted up or down by a corresponding amount. Any such adjustment shall be considered in adjustments to the Company rates as described in Sections 6.4.2 and 6.4.3. 3.1.4 Tax Roll Billing Company shall pay to the City a fee of $1.06 per tax roll billing account Customer, per month adjusted automatically at the beginning of each Rate Year by a percentage equal to the annual percentage increase, if any, in the January Garbage and Trash Collection index (GTCI) (CUUR0000SEHG02) in U.S. city average, all urban consumers, not Page 368 City of Palm Desert Franchise Agreement City of Palm Desert 37 March 10, 2022 seasonally adjusted. If there is no increase in the GTCI or if the GTCI decreases, the Tax Roll Billing amount shall remain unchanged from the previous Rate Year. The Company shall remit to the City this fee according to Section 5.1.2. 3.1.5 Time and Method of Payment Company shall remit the payment of Franchise Fee, Recycling Fee, and other fees as may apply on or before the thirtieth (30th) day following the end of each quarter, during the Term of this Agreement as provided in Sections 3.1.1, 3.1.2 and 3.1.3. If the Franchise Fee, the Recycling Fee, and/or other fees are not paid on or before the thirtieth (30th) day following the end of the quarter, the Company shall pay to the City a service charge, and not as interest, in an amount equal to ten percent (10%) of the amount owing for that quarter. The Company shall pay an additional ten percent (10%) service charge on any unpaid balance for each additional thirty (30) day period the Franchise Fee, Recycling Fee, and/or other fees remains unpaid. Late payment service charges shall not be included in any revenue requirement. The Company agrees that the service charges contemplated by this Section 3.1.5 reasonably reflect the cost to the City to process any delinquency calculations and notices, and to monitor the Company’s services, all in an effort to collect the delinquent Franchise Fees, Recycling Fees, and/or other fees which, together with all other remedies afforded City under this Agreement (including any award of attorney’s fees and costs), and in accordance with Applicable Laws, are intended to compensate City in any collection efforts in the event of Company’s default in the payment of Franchise Fees and/or other fees. Company shall continue to remit Franchisee Fees and/or other fees to the City after the Term of this Agreement expires so long as the Company continues to collect receipts from Customers that were billed for services during the Agreement Term. 3.1.6 Documentation of Fee Payments Along with fee payments, Company shall submit documentation of the prior quarter’s Gross Receipts, and tonnage Collected and Disposed, by line of service (Residential, Commercial, Roll-off), identifying the Disposal Cost and Recyclables Processing fee components, by line of service (Residential, Commercial, Roll-off). This documentation is due by the 30th day following the end of each quarter and must be complete and accurate to be considered received by the City. 3.2 Business License The Company and any subcontractors shall annually obtain a City of Palm Desert Business License. No contracts for services provided in the City shall be awarded to any vendor until such business license has been obtained, and all fees paid therefore, by the vendor and the subcontractors. Page 369 City of Palm Desert Franchise Agreement City of Palm Desert 38 March 10, 2022 3.3 Other Fees The City shall reserve the right to set other fees or further adjust the Franchise Fee, Recycling Fee, Tax Roll Billing and Refuse Vehicle Impact Fee, as it deems reasonably necessary. The amount, time and method of payment and adjustment process will be set similar to Section 3.1.5 above. Subject to meeting the procedural requirements for a rate adjustment, such fees or adjustments shall be reflected in the rates that Company is allowed to charge and collect from Customers in accordance with Article 6. Page 370 City of Palm Desert Franchise Agreement City of Palm Desert 39 March 10, 2022 ARTICLE 4. DIRECT SERVICES 4.1 Collection Services - General The work to be done by the Company pursuant to this Agreement shall include, but not be limited to, the furnishing of all labor, supervision, equipment, materials, supplies, and all other items necessary to perform the services required. The enumeration of, and specification of requirements for, particular items of labor or equipment shall not relieve the Company of the duty to furnish all others, as may be required, whether enumerated elsewhere in the Agreement or not. The work to be done by the Company pursuant to this Agreement shall be accomplished in a thorough and professional manner so that the residents and businesses within the City are provided reliable, courteous, and high-quality Collection services at all times. The enumeration of, and specification of requirements for, particular aspects of service quality shall not relieve Company of the duty of accomplishing all other aspects in the manner provided in this Section, whether such other aspects are enumerated elsewhere in the Agreement or not. All Collection systems shall comply with CalRecycle requirements under SB 1383. To comply with SB 1383 (pursuant to 14 CCR Section 18984.1), Company shall require Generators to place all Organic Materials in the Organics Containers and all paper products and printing and writing paper (as defined in Section 4.3.2) in the Recycling Containers for Collection by Company, and Company shall prohibit placement of such materials in the Refuse Containers. 4.2 Determination of Residential Collection Method All individually-serviced Residential Customers shall receive automated Collection service using Carts provided by Company, or Bin service, unless City approves manual service on a case-by-case basis. City shall make final determination as to the form of Collection service a Customer shall receive: Cart, Bin, or other. 4.2.1 Homeowner Association Customers in Gated Communities Homeowner associations in gated communities shall have automated services according to Section 4.3, unless City approves manual or other service on a case-by-case basis. 4.2.2 Individually-Serviced Dwelling Units Individually-serviced Dwelling Unit Customers shall receive automated Cart service per Section 4.3 once per week Page 371 City of Palm Desert Franchise Agreement City of Palm Desert 40 March 10, 2022 4.2.3 Multi-Family Apartment Complex Customers Multi-Family apartment complex Customers have the option of receiving Bin service or automated Cart services. For these Customers, Company shall provide Bin service in accordance with Commercial service requirements in Section 4.6 and Cart service in accordance with Cart Collection service requirements in Section 4.3. Company shall work with Property Owners/managers and City to tailor a Recyclable Materials and Organic Materials Collection program to meet the needs of each property and to comply with SB 1383 requirements. Company shall provide Recyclable Materials Collection service to all Multi-Family apartment complex Customers at the rates in the approved rate schedule. 4.2.4 Marrakesh Country Club The Marrakesh Country Club Master-Billed service area receives automated curbside Refuse Collection service two (2) times per week at the rate in the approved rate schedule. Recycling and Organic Materials Collection service is provided one (1) time per week for the Marrakesh County Club service area. 4.3 Automated Cart Collection Services The following services shall be provided in accordance with who shall receive such services under Section 4.2. However, no Customer may receive additional Refuse Carts at the additional Cart rate unless the Customer is already paying for Cart service for every dwelling unit. 4.3.1 Automated Curbside Refuse Services 4.3.1.1 Refuse Cart Sizes Company will supply each Residential Customer that participates in the automated Collection program with one 95-gallon, 65-gallon, or 35-gallon Cart, with an option to obtain additional Refuse Containers at City-approved rates. If more than one Refuse Cart is provided to a Customer, the larger Cart will be billed at the full service rate and the smaller Cart at the additional Refuse Cart rate. Company shall provide curbside Refuse Collection services to each Customer, not less than once per week. Company shall Transport all Refuse to the Approved transfer Facility or Approved Disposal Facility for Disposal. All Carts used for Collection of Refuse shall comply with the Container standards, colors, and labeling requirements specified in Section 4.8.3. 4.3.1.2 Cart Exchange Page 372 City of Palm Desert Franchise Agreement City of Palm Desert 41 March 10, 2022 Individually-billed Customers Customers will be allowed to change Cart sizes (e.g., from a 95-gallon Refuse Cart to a 65-gallon or from a 35-gallon Refuse Cart to a 65-gallon Refuse Cart) and Company shall exchange the Carts at no charge. Company shall adjust the Customer’s rate after a Cart exchange to reflect the City-approved rate for the different Cart size. If an individually- billed Customer that is charged via the tax roll requests a Cart size exchange, Company will either issue a check to the Customer if a reimbursement is required or send a separate invoice if additional payments are due within thirty (30) days of the requested exchange. Master-Billed Customers For Master-Billed Customers that provide Refuse Carts to each Residential unit within the Master-Billed community, individual Residential units within a Master-Billed community may be allowed to change Cart sizes (e.g., from a 95-gallon Refuse Cart to a 65-gallon or from a 35-gallon Refuse Cart to a 65-gallon Refuse Cart) and Company shall exchange the Carts at no charge. However, if the entire Master-Billed community intends to exchange Refuse Cart sizes, Master-Billed Customers may exchange Refuse Cart sizes no more than once per year, at a cost of $6.00 per Refuse Cart. Master-Billed Customers must initially negotiate the same size Refuse Cart for all residents when implementing the automated Collection system. 4.3.2 Automated Curbside Recyclables Collection Company shall issue each automated Customer a 95-gallon, 65-gallon, or 35-gallon Recycling Cart at no additional charge, depending on the Customer’s preference. Company will provide additional Recycling Carts to Customers who regularly Recycle more than will fit into their existing Recycling Cart(s) for the fee in the approved rate schedule. Carts used for Collection of Recyclable Materials shall comply with the Container standards, colors, and labeling requirements specified in Section 4.8.3. Company shall Collect and remove all Recyclable Materials placed in Recycling Carts at the curbside on the same day as Refuse Collection. Recyclable Material Collection from automated Carts within the City shall be at least once each week and, at a minimum, include, but not be limited to, the Collection of: • Paper products – Paper products include, but are not limited to, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, and tissue; or as otherwise defined in 14 CCR Section 18982(a)(51); • Printing and writing papers – 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 Page 373 City of Palm Desert Franchise Agreement City of Palm Desert 42 March 10, 2022 in 14 CCR Section 18982(a)(54); • Empty aerosol cans; • Glass – all colors, California Redemption Value and non-redemption value; • Aluminum – cans, foil, and trays; • Bi-metal, tin – cans, steel cans; and, • Plastics/resins of all grades, Nos. 1 through 7. Recyclable Materials listed above are to be commingled by Customers in Customers’ Recycling Carts. Residential Recyclable Materials Collection shall be provided by Company on the same day of the week as Refuse Collection service. Company shall Transport all Source Separated Recyclable Materials Collected to the Approved Source Separated Recyclable Materials Processing Facility for Processing. 4.3.3 Automated Curbside Organic Materials Collection Company shall provide weekly automated curbside Collection of Organic Materials to automated Customers on the same day as Refuse Collection at no additional charge. Company shall issue to each Customer one (1) or more Organic Materials Carts based on the size of the Customers Refuse Cart. Company shall make available additional 95, 65, or 35-gallon Carts for Customers for an additional charge as shown in Exhibit 3A. The Organic Materials Cart rate for all Carts is the same for any size Cart. Carts used for Collection of Organic Materials shall comply with the Container standards, colors, and labeling requirements specified in Section 4.8.3. Company shall Collect and remove all Organic Materials placed in Recycling Carts at the curbside on the same day as Refuse Collection. Company shall also Collect an unlimited amount of tied bundles of Organic Materials from Customers who subscribe to automated Organic Materials service. Company shall Transport all Source Separated Organic Materials Collected to the Approved Organic Waste Processing Facility for Processing. 4.3.4 Automated Cart Walk-in Service Company shall offer walk-in Collection services to all automated Cart Customers and shall charge Customers for this service at the City-approved rate. Service will include retrieving Refuse, Recyclable Materials, and Organic Materials Carts from and returning Carts to the backyard, garage, or other enclosure of such Customers. The walk-in service rate for able-bodied Customers choosing to pay for such service will include the walk-in of one (1) Refuse Cart, one (1) Recycling Cart, and one (1) Organic Materials Cart. Company shall charge Customer for walk-in service for additional Refuse, Recycling, or Organic Materials Carts at an additional City-approved walk-in rate for individual Carts. Disabled Persons, identified as those meeting the DMV requirement for N1-Permanent disabled parking placard, shall receive such service for no additional charge. Page 374 City of Palm Desert Franchise Agreement City of Palm Desert 43 March 10, 2022 4.3.5 Residential Food Waste Program Company will implement a program to Collect and Divert Residential Food Waste, co- Collected with Yard Waste, by July 1, 2022. The Company shall be entitled to a rate adjustment as provided in Section 6.9 effective July 1, 2022 for implementation of the Food Waste program. The rate adjustment shall only apply to the standard service rates for Residential Cart service included in Exhibit 3, and shall not apply to Additional Cart Rates or any other rates included in Exhibit 3. 4.3.5.1 Residential Kitchen Pails Upon rollout of the Residential Food Waste program described in Section 4.3.5, Company shall provide to all Residential and Multi-Family Dwelling Units kitchen pails designed to contain Food Waste prior to placement in the Customer’s Organic Materials Cart and a minimum of two (2) kitchen pail liners at no additional charge. Company shall also subsequently provide new Customers with kitchen pails and a minimum of two (2) kitchen pail liners for no additional charge upon opening a new account. Company shall obtain and review the list of property transfer records from the County of Riverside to provide new Residential Customers kitchen pails. If a Customer requests an additional pail or requests a replacement pail, Company will provide the pail at the rate in the approved rate schedule. Kitchen pail specifications shall be approved by the City prior to Company ordering and distributing the pails. Educational material regarding proper use of the kitchen pail shall be provided to Customers with delivery of pails. 4.3.6 Master Billed Accounts - Organic Materials Communal Collection Company will evaluate master billed Customer account locations on a case-by-case basis and recommend to City whether to implement a communal Organic Materials Collection program. Once a Customer location is assessed by the Company, the Customer rate shall be determined by summing the applicable Container rates in the City approved rate schedule for the proposed level of service. The City reserves the right to approve or not approve Company recommendation to allow a Customer to implement a communal Organic Materials program based on City review of information provided by Company and Customer. 4.4 Manual Refuse Can Collection Services The following services shall be provided only until such Customers have been transitioned to automated, once per week Cart Collection service. Customers receiving manual Refuse Collection service shall receive separate automated Recyclables and Organic Materials Collection from Company by July 1, 2022 for compliance with SB 1383. If CalRecycle requires the manual Refuse Collection Containers transition to automated Page 375 City of Palm Desert Franchise Agreement City of Palm Desert 44 March 10, 2022 Refuse Carts, Company will provide automated Refuse Containers to all manual Customers. 4.4.1 Manual Curbside Refuse Can Collection Company shall manually Collect Refuse delivered for Collection at the curbside in Customer-provided Cans weighing no more than sixty (60) pounds, not less than once per week and only until such Customers have been transitioned to automated Refuse Cart Collection. 4.4.2 Manual In-Ground Refuse Can Collection For an additional charge per dwelling unit, Company will Collect Refuse from in-ground Cans from all Customers with in-ground Cans installed and only until such Customers have been transitioned to automated Refuse Cart Collection. In-ground Can Collection requires Company to manually lift each Can from special silos below ground level, and return the Can to the silo and close its lid. 4.5 Other Residential Services 4.5.1 Annual Neighborhood Cleanup Event The Company may hold, on behalf of the City, a Neighborhood Cleanup Event once annually. Company shall Collect and Recycle, Process, or Dispose of all Bulky Items, including Electronic Waste, and other Universal Wastes, placed curbside at all Residential Properties, both Residential and Multi-Family on a pre-set Collection day. This event would take place once annually in the Spring. Date shall be approved in advance by the City. 4.5.2 On-Call Bulky Item Collection The Company shall provide Bulky Item pickup service to all Residential Customers (including single-family, Multi-Family, and gated communities). Homeowner association Customers and single-family dwelling unit Customers shall be entitled to unlimited pickups, with a maximum of four (4) items per pickup, for no additional charge. Multi-Family Customers are entitled to the equivalent of one Bulky Item pickup, with a maximum of four (4) items per pickup, per calendar year for each dwelling unit in the building, at no additional charge; either Owner, manager or individual dwelling units may request service. Multi-Family Customer Bulky Item pickups are a total count for the entire Multi-Family complex. Multi-Family complexes may allocate the Bulky Item pickups as needed among individual tenants. Customers will provide the Company with forty-eight (48) hours notice for a Bulky Item Collection and the Bulky Items shall be Page 376 City of Palm Desert Franchise Agreement City of Palm Desert 45 March 10, 2022 Collected by Company on the Customer’s regular Refuse Collection day. Company shall charge Customers at City-approved rates for any item over four (4) items in one pick-up. All complexes with four (4) or fewer units with a shared Refuse Collection system shall still be serviced by Company for unlimited pickups of four (4) items per unit at no charge. Company shall Transport all Bulky Items to an Approved Facility for Recycling, Processing, or Disposal. If any Organic Materials are Collected, Company shall Collect the Organic Materials for Processing at the Approved Organic Waste Processing Facility. 4.5.2.1 Bulky Item Diversion Bulky Items Collected by Company in accordance with Section 4.5.2, or otherwise Collected under this Agreement, shall be Processed in accordance with this Agreement and SB 1383 Regulations, and may not be Disposed of until the following hierarchy of Diversion efforts has been followed by Company: 1) Reuse as is 2) Disassemble for Reuse or Recycling 3) Transport Bulky Items and reusable items to the appropriate Approved Facility for Reuse or Processing 4) Transport Organic Waste, such as Yard Waste, to the Approved Organic Waste Processing Facility for Processing 5) Transport Source Separated Recyclable Materials, such as paper products, to the Approved Source Separated Recyclable Materials Processing Facility for Processing 6) Disposal 4.5.3 Holiday Tree Collection Program Company shall operate an annual holiday tree Collection program. The program shall include curbside Collection and a drop off site at the Company’s operations yard located in the City of Palm Desert, and shall target all Residential Premises in the City (both single and Multi-Family). The Company shall reasonably cooperate with the City in the scheduling and operation of the holiday tree Collection program to provide curbside Collection and operation of the drop-off site for three (3) weeks beginning December 26. Company shall provide this curbside holiday tree Collection service and drop-off program at no additional charge to Residential Premises on Customer’s regular Refuse Collection service day. Company shall Process all holiday trees that are properly set out for Collection as Organic Waste in accordance with Exhibit 8. Page 377 City of Palm Desert Franchise Agreement City of Palm Desert 46 March 10, 2022 4.5.4 Used Motor Oil and Filter Recycling The Company will be required to Collect and Recycle all used motor oil and oil filters placed for Collection by Generator or Customer from all Residential Premises. Residents without curbside Recyclables Collection, such as apartments and condominiums, shall be provided Collection service by Company upon request. In such case, Company shall Collect the used motor oil and oil filters within seven (7) Business Days of receipt of Customer’s request for service. Collection from all other Residential Customers shall be provided by Company on the same day as Recyclables Materials Collection. Company shall provide monthly reports, in a format approved by the City, of the filters and gallons of oil Collected pursuant to Section 8.3.2. 4.5.5 Plastic Bag Drop-Off Program Company shall provide and promote to Residential Customers a Company designated plastic bag-in-bag drop-off location program, whereby Customers are instructed to Collect all plastic grocery bags and deliver to the designated location(s) for Recycling to support the City’s plastic bag ban. Drop-off location to be located at the Company’s Recycling center located within the City or at an alternative site if approved by City staff. 4.5.6 Extra Residential Refuse Customers that produce or set out more Refuse than their current level of service can accommodate may have up to three (3) bags of Refuse placed outside of their Refuse Cart Collected four (4) times per year. Customers must request the service by contacting Company at least twenty-four (24) hours in advance of their normal Collection day. 4.5.7 Resident Tire Recycling Residents will be allowed to drop-off up to four (4) tires at the Edom Hill Transfer Station on a quarterly basis at no charge, the quarterly tire acceptance dates will be provided to residents through Company’s annual public education program. 4.6 Commercial Service 4.6.1 Refuse Bin Service Company shall offer Collection of Refuse from Bins to all Commercial Customers. Company shall Collect and remove all Refuse that is placed in Bins from all Customers receiving Bin service at least once every week, or more frequently up to six (6) days per week if requested by Customer or required to handle the Solid Waste stream of the Premises where the Bins are located. Special consideration shall be given when determining the location of the Bin storage and Collection area to ensure that the flow of Page 378 City of Palm Desert Franchise Agreement City of Palm Desert 47 March 10, 2022 traffic is not impeded. No additional enclosure handling fee may be charged for servicing enclosed Bins. Company is responsible for removing locks to access Bin enclosures prior to Collection and replacing locks on Bin enclosures after Collection, and shall provide this service at no additional charge to Customers. Company shall not be responsible for the cost of constructing Bin enclosures. Company shall Collect and remove all Refuse that is placed into Customer-provided in- ground Bins in the same manner at no additional charge (beyond the regular Refuse Collection rate for the Bin size and Collection frequency). In-ground Bins are Bins set into a special silo below ground level. 4.6.2 Cart Service Company shall provide Cart service to low volume Commercial Customers requesting such service. The Company shall provide Commercial Customers with Carts for Refuse, Recyclable Materials, and Organic Materials Collection. These services will be provided by Company at the rates in the approved rate schedule. Use of a Cart for Commercial service does not entitle Commercial Customers to other Residential services such as Bulky Item and holiday tree Collection. 4.6.3 Temporary Bins and Roll-off Box Service The Company shall offer temporary Bin service and Roll-off Box and Compactor services for the Collection of Refuse, Organic Materials, or Construction and Demolition Debris. A. Condition of Equipment: Temporary Bins and Roll-off Boxes provided by Company shall be free of graffiti and in good repair, and must be clearly marked and identifiable as belonging to the Company. B. Location: Special consideration shall be given by Company when determining the delivery Collection location for temporary Bin and Roll-off Box service to Customers to ensure that the flow of traffic is not impeded. The designated Collection location, if disputed by the Customer or the Company, shall be determined by the City. Additionally, if in the City’s opinion the location of an existing Collection location is inappropriate for aesthetic or safety reasons, the City may require the Customer and/or Company to relocate the temporary Bins or Roll-off Boxes to an alternate Collection location. C. Arranging: The Company shall deliver and Collect temporary Bins and Roll-off Boxes at the direction of the Customer. D. Time: The Customer is entitled to retain the Bin or Roll-off Box(es) for seven (7) Business Days (not including weekends and holidays). After the initial seven (7) Page 379 City of Palm Desert Franchise Agreement City of Palm Desert 48 March 10, 2022 Business Days, additional fees may be due based on demurrage charges for use beyond the seven (7) Business Days. E. Charge: The Company may charge the established Temporary Bin and Roll-Off Box service rates as provided on the City-approved rate schedule. 4.6.4 Recyclable Materials Service for Bin Customers Company shall Collect and remove, all Recyclable Materials that are placed in Recycling Containers at least once every week, or more frequently up to six (6) times per week as requested by Customer or required at the Premises where the Containers are located at the rates in the approved rate schedule. Company shall provide as many Recycling Containers as agreed upon between Company and Customer as necessary to accommodate all Recyclables generated on the Premises. If a Customer’s Recyclables are regularly contaminated, Company shall provide education and training to Customer. If Customer is non-compliant, Company may charge a contamination fee. Company to provide list of contaminated Containers per Section 8.3. Company shall Collect the following materials: • Residential Recycling (Multi-Family Complexes) – same materials as listed above in Section 4.3.2. • Commercial Recycling - Paper products and printing and writing paper as defined in Section 4.3.2, Glass – all colors, California Redemption Value and non- redemption value, Aluminum – cans, foil and trays, Bi-metal/tin – cans, Plastics/resins – Nos. 1 through 7, the Company also agrees to make programs available for all other materials for which it has established markets. Organic Materials (see Section 4.6.5 below) shall each be Collected in separate Containers and not commingled with other Recyclable Materials or Refuse. 4.6.5 Roll-Off Boxes Organic Materials Collection The Company shall offer Organic Materials Collection to Roll-off Box Customers. The Company shall notify all of its Roll-off Box Refuse Customers of the availability of Organic Materials Collection service at least once each year. For those Roll-off Box Customers who choose to participate, the Company shall provide Organic Materials Collection using Roll-off Boxes. Additionally, Organic Materials Roll-off Box charge shall be no more than 100% of the standard pull charge for a Roll-off Box plus the actual cost of Organic Materials Processing at the Organic Materials Processing Facility. 4.6.6 Commercial Site Visits Annually, upon execution of this Agreement , Company shall contact, via physical onsite visit, each Commercial Customer that does not already participate in a Recyclable Page 380 City of Palm Desert Franchise Agreement City of Palm Desert 49 March 10, 2022 Materials and/or Organic Materials Collection program through Company. The purpose of the contact shall be to establish Recyclable Materials and Organic Materials Collection programs. Within thirty (30) days following the end of the most recent calendar quarter, Company shall provide City with a written record of such contacts, including contact name, contact telephone number, form of contact (site visit, telephone, email, etc.), and details of resulting new Recyclable Materials and Organic Materials Collection program or reasons why one was not established. City has final approval of quarterly written record of contacts and reserves the right to address the record if it is not meeting the City’s needs for monitoring purposes. Contacts require a site visit unless the visit is specifically declined by the Customer with record of the number of phone call attempts made by Company to schedule the required onsite visit. Company shall make at a minimum three (3) documented phone and/or email attempts on different Business Days before adding a Customer to the list of declined visits by the Customer. 4.6.7 Overflowing Commercial Containers and Enclosure Clean-Outs Customers that regularly produce more Refuse, Recyclable Materials, or Organic Materials than their current level of service can accommodate may have their service level increased in accordance with the following procedure: First Incident in Three Month Period – If more material is placed for Collection than fits in a Bin or Cart, Company shall photograph the overflowing Container, Collect the Discarded Materials, and send to the Customer (at both the service and billing addresses) the picture and a letter offering Recyclable Materials or Organic Materials Collection for a charge and instructing that the next instance of an overflowing Container may result in a charge, and possibly in an increase in the level of service. Second Incident in Three Month Period – Upon the second event of an overfilled Container in a three-month period, if the Customer has not implemented a Recyclable Materials and Organic Materials Collection program, Company shall photograph the overflowing Container, Collect the Discarded Materials, and send to the Customer the picture and a letter offering Recyclable Materials or Organic Materials Collection and instructing that a third incident in that same three month period may result in an increase in the level of service. If a Bin overflowed sufficiently to require the driver to leave the Collection vehicle to clean around the Bin, Company may charge the Bin Overage Cleanup fee in the approved rate schedule. If Refuse was left beside a Customer’s Commercial Cart for Collection, Company may charge the extra pickup fee in the City- approved rate schedule. If a Recyclable Materials and Organic Materials Collection program had been implemented, Company will offer Customer assistance in training staff to separate Recyclable Materials and Organic Materials properly and, if warranted, provide additional Recyclable Container capacity to avoid future overflow issues. Page 381 City of Palm Desert Franchise Agreement City of Palm Desert 50 March 10, 2022 Third Incident in Three Month Period – Upon the third event of an overfilled Container in a three-month period, Company shall photograph the overflowing Container, Collect the Solid Waste, and send to the Customer the picture and a letter requesting that Customer increase its service level and/or implement a Recycling or Organic Materials Collection program for a charge that will lower the level of Refuse Disposed. If the Customer declines, Company may petition City to permit Company to increase the service level to accommodate the higher demand for service. If a Bin overflowed sufficiently to require the driver to leave the Collection vehicle to clean around the Bin, Company may charge the Bin overage cleanup fee in the approved rate schedule. If Refuse was left beside the Cart for Collection, Company may charge the Cart overage fee in the approved Rate Schedule. 4.6.8 Organic Materials Collection Program Company will provide an Organic Materials Collection program that at minimum meets the standards required under AB 1826, which requires a local government agency, Commercial, and Multi-Family Premises with more than five (5) units to Recycle their Organic Waste. Commercial Customers and Multi-Family Premises with five (5) units or more that generate two (2) or more cubic yards of Solid Waste are required to arrange for Organic Material Recycling services. By January 1, 2023, the SB 1383 implementation date (pursuant to 14 CCR Section 18995.1(a)), Company shall implement Organic Materials Collection services for all Multi-Family and Commercial Customers to support Generator compliance with SB 1383 requirements. Company will offer information by site visits, emails, phone calls, and other outreach methods approved by City for the Organic Materials Collection at the rates in accordance with the approved Rate Schedule or as may be adjusted under the terms of this Agreement. Company is responsible for providing City monthly updates, in accordance with Section 8.3, in a format approved by City, of any and all outreach related to the Commercial Organics Materials program. Company shall be responsible for ensuring that the Organics Materials Collection and Processing program meets the requirements of Applicable Law and may be required to modify its program from time to time (subject to rate adjustments pursuant to Article 6). Company shall produce, keep current, and provide public information specifically outlining its Organics Material program. 4.6.9 Compactor Service The Company shall offer stationary compactor services for the Collection of Commercial Solid Waste from high-volume Commercial Customers from stationary compactors that are maintained by either Customer or Company as mutually agreed. A. Condition of Equipment: If provided by Company, compactors shall be free of Page 382 City of Palm Desert Franchise Agreement City of Palm Desert 51 March 10, 2022 graffiti and in good repair, and must be clearly marked and identifiable as belonging to the Company. B. Location: The designated Collection location shall be arranged by Customer in accordance with the requirements and design standards of City and with the prior approval of the City. The selected location shall be subject to the prior written approval of Company. C. Arranging: The Company shall Collect compactors at the direction of the Customer. D. Charges: The Company may charge up to the maximum City-approved rate. E. Conditions: The compactor shall be compatible with Company’s Collection equipment and procedures. The location, compactor and Collection operation of the compactor shall be approved in writing by Company before installation. The Customer shall be solely responsible for the safe operation of the compactor and for all repairs that may be needed from time to time unless arranged to be performed by Company. 4.7 City Services and Other Requirements 4.7.1 City Facilities' Collection Company shall provide, at no additional charge to City, Containers for, and Collection and Disposal of, all Solid Waste generated at Premises owned and/or operated by the City as designated in Exhibit 1, as well as new City facilities that may become part of the City. City facilities that are (1) not operated for a public purpose or (2) operated as a City enterprise shall pay for services at the rates and charges in effect at the time service is rendered and under the same terms and conditions as any other Commercial Customer. Collections shall be scheduled at a time mutually agreed upon by the Company and City. Company shall provide separate Recycling Containers appropriate for the type and amount of materials on a facility-by-facility basis for Collection of commingled Source Separated Recyclable Materials listed in Section 4.3.2; for Source Separated Organic Materials; and for Source Separated Construction and Demolition Debris (where the Construction and Demolition Debris may be mixed together or separated into various materials types such as concrete, asphalt, woody waste, metals and sand, soil and sod). 4.7.2 Abandoned Item Collection Company shall Collect, at no additional charge, abandoned items from public streets or rights of way, including but not limited to President’s Plaza East and West parking lots, Page 383 City of Palm Desert Franchise Agreement City of Palm Desert 52 March 10, 2022 within twenty-four (24) hours of notification by City staff. Company shall Transport abandoned items to an Approved Facility for Recycling, Processing, or Disposal. 4.7.3 City Sponsored Events The Company shall provide Refuse, Recycling, and Organic Materials Collection, Processing and Disposal services at up to six (6) individual City-sponsored, not for profit events each year. City shall designate the six (6) events. These services shall be provided at no cost to the City or the event. In addition to providing Collection services, the Company shall provide portable toilet and sink service at up to four (4) individual City- sponsored events. 4.7.4 Yard Waste Drop-off Site Company shall permit residents of City to drop-off Yard Waste at no charge at Company’s Edom Hills Facility located at 70-100 Edom Hill Road, Cathedral City, CA 92234, with a limit of two-hundred and fifty (250) tons per year, with the exception that landscapers and gardeners shall be charged. 4.7.5 Construction and Demolition Material Recycling Company shall Divert a minimum of seventy five percent (75%) of all Construction and Demolition Debris Collected by Company. Company shall Transport all C&D loads to an Approved C&D Processing Facility where the C&D shall be Processed for Recycling, Reuse, or composting, or, if materials have been Source Separated, Transport all C&D directly to a C&D Facility for Reuse, Recycling, composting, and Processing. Diversion is subject to the following: A. Company’s program shall commence upon the effective date and continue during the City’s continuation and enforcement of: i. City’s comprehensive Construction and Demolition Debris Recycling ordinance, when approved, designed to Divert a minimum of seventy five percent (75%) of all Construction and Demolition Waste Collected by Company, ii. That there continuously exists in the Coachella Valley sufficient properly licensed and permitted Construction and Demolition Material Diversion Facilities capable of accepting, Processing and Diverting at least seventy five percent (75%) of the Construction and Demolition Waste generated within City and Collected by Company. (Current acceptable Facilities and Company’s future Facility(ies)), and Page 384 City of Palm Desert Franchise Agreement City of Palm Desert 53 March 10, 2022 iii. Complying with CalRecycle and California Building Standards Code including Part 11 California Green Building Standards Code (CALGreen) requirements for the Processing and Recycling of C&D including Organic Waste. Company’s failure to Divert a minimum of seventy-five percent (75%) of Construction and Demolition Material from landfill Disposal shall not subject Company to penalties or liquidated damages provided that Company has made a good faith effort to implement City’s Construction and Demolition Material Diversion ordinance as described herein. In no event shall Company’s failure to Divert a minimum of seventy-five percent (75%) of C&D Material generated within City and Collected by Company result in a breach of Agreement, but may be considered in City Council’s review of Agreement extension option. Company shall separately document the following information for each C&D Facility: (1) the tonnage of C&D Collected; (2) the tonnage of C&D delivered to each Approved C&D Processing Facility, specialty recyclers, and/or Reuse or salvage operations or locations where C&D was delivered for Processing or Reuse; and, (3) calculation of the project- specific Diversion level (tons of C&D Recycled, Reused, or salvaged divided by total tons of C&D Collected). Company shall submit C&D tonnage information and other data pursuant to Section 8.3 of the Agreement. Company shall provide each Customer with documentation necessary for the Customer to meet the requirements of the City’s C&D ordinance. Roll-off Box Collection service shall be charged on a “pull plus dump” basis, with one service fee or “pull charge” plus a per ton fee component. The per ton component for mixed C&D Material loads shall be no more than the per ton rate listed on the approved rate schedule. Such loads shall be Processed to recover Recyclables. The per ton component for Source Separated loads (e.g., concrete, dirt, asphalt, wood) shall be the actual per ton gate rate at the Approved Facility accepting the material for Diversion, but no more than the per ton rate for mixed loads. 4.7.6 Shred It Recycle Program Company shall operate three (3) drop-in document shredding events for Palm Desert Customers annually, one (1) in the first (1st) calendar quarter of the year, one (1) in the second (2nd) calendar quarter of the year during May or June, and one (1) in the fourth (4th) calendar quarter of the year. The dates of the events shall be mutually agreed upon in advance by the City and Company. The location of the document shredding drop-in events shall be at a location approved in advance by the City. Company shall advertise the event on its website and in newsletters, and in a display advertisement published in a newspaper of general circulation in the City ten (10) days prior to each drop-in document shredding event. Each event shall be at no cost to the City, residents, or Page 385 City of Palm Desert Franchise Agreement City of Palm Desert 54 March 10, 2022 businesses. Residents and Commercial businesses may be limited to ten (10) boxes per event. Company shall Transport shredded paper received during these events to the Approved Source Separated Recyclable Materials Processing Facility for Processing, to a Facility that qualifies as a “Recycling Center” as set forth in 14 CCR Section 30 17402.5(d), or is listed in 14 CCR Section 17402.5(c), or other operation or Facility that is deemed to constitute a reduction in landfill Disposal pursuant to 14 CCR Section 18983.1(b). 4.7.7 Sharps Recycle Program Company shall provide a mail-in program for the Collection of used needles, with program specifics to be approved by City, and shall accept Sharps at its HHW center and at other locations that may develop as a result of expansion of the program in the City. Company shall be responsible to ensure that the Sharps Collection programs comply with all Applicable Laws and regulations. These programs shall be provided by Company at no additional cost to residents but may be provided to non-Residential Customers for a fee. 4.7.8 Compost Giveaway Company shall conduct at least one Compost giveaway event per calendar year at no additional charge. City residents will be allowed to fill up their Containers on a first- come, first-served basis. Company shall provide at least one thirty (30) cubic yard Roll- Off Container of Compost material delivered to a location designated by the City for each event. Any Compost material remaining after event shall be utilized by the City. The Compost giveaway events will be coordinated with the City and may be held in conjunction with other City events. 4.7.9 Warning Notice for Prohibited Container Contaminants The Company shall warn Customers in accordance with Section 5.5.2.1.C who have Prohibited Container Contaminants in their Refuse, Recycling, or Organics Containers. Warning should notify Customer that Company may charge a Collection fee for contaminated Containers in accordance with the approved rate schedule. The Company shall report monthly to the City any warning notices issued as part of its monthly reporting under Section 8.3. 4.7.10 Marketing and Sale of Recyclable Materials The Company shall be responsible for marketing and sale of all Recyclable Materials Collected pursuant to this Agreement. Company shall retain proceeds from sales of Recyclable Materials. Page 386 City of Palm Desert Franchise Agreement City of Palm Desert 55 March 10, 2022 4.7.11 End Uses for Organic Materials Company shall Divert Organic Materials Collected through curbside Collection, Commercial Organic Materials Collection program, Roll-Off Container Collection, and holiday tree Collection and dropped off at Company site from Disposal through composting, mulching or other non-Disposal method. The Company must provide end uses for Organic Materials that meet SB 1383 requirements and that maximize Diversion credits for the City according to regulations established by CalRecycle, and may not use Organic Materials as Alternative Daily Cover (ADC) or Alternative Intermediate Cover (AIC). Company shall retain proceeds from sales of any Organic Materials products. 4.7.12 Diversion and Customer Participation Compliance Requirements 4.7.12.1 Diversion Requirements The minimum amount that shall be Diverted through Recycling, Organic Materials Collection, and Transformation is fifty percent (50%) or the State mandated Diversion goal. Transformation shall consist of a maximum of ten percent (10%) of the total waste stream. Should the City not reach the AB 939 fifty percent (50%) Diversion goal or approved future State mandate(s) for its entire waste stream, the Company agrees to make reasonable efforts to implement programs and provide equipment necessary in order for the City to meet the fifty percent (50%) Diversion goal. City may require Company to meet a higher Diversion rate for Solid Waste Collected by Company. In the event the State increases minimum Diversion goals above the fifty percent (50%) required by AB 939, Company shall ensure City will meet the higher Diversion level, with a rate adjustment equal to the reasonable, actual cost of such additional programs. 4.7.12.2 Customer Participation Compliance Requirement The minimum required level of Customer participation that must be achieved by Company on or before January 1, 2023, and maintained thereafter for the duration of the Term includes the following: 1. SB 1383 Programs. A. Residential Premises Company must fully implement a Residential Organic Materials Diversion program where all Residential Premises are provided, individual or centrally located, Containers that comply with SB 1383. Page 387 City of Palm Desert Franchise Agreement City of Palm Desert 56 March 10, 2022 B. Commercial Premises Company must implement and maintain an SB 1383 compliant Commercial Recycling and Organic Materials Diversion program with the goal of providing Recycling and Organic Materials Containers to all Customers required to have such Containers under CalRecycle requirements. At a minimum, Company shall provide Containers to at least ninety-five percent (95%) of Customers required to have Recyclable Materials Containers, and ninety-five percent (95%) of Customers required to have Organic Materials Containers, that have not otherwise been granted a waiver per the City Municipal Code, do not otherwise comply via Self-Haul or Back-Haul programs, or have not been forwarded to the City’s Code Enforcement Department for enforcement action. Commercial Customers that refuse to implement programs and have been inspected by the Company per Section 5.5.3 and have been forwarded to the City’s Code Enforcement Department for City enforcement of the City’s Municipal Code will not be included in the calculation of the ninety-five percent (95%) compliance requirement. For example, if there were one thousand (1,000) Commercial Customers required to have compliant programs under SB 1383 and twenty-five (25) of those have been forwarded for to City’s Code Enforcement Department for enforcement action, the minimum number of Commercial Customers required to have a compliant program under this Section 4.7.1.2 would be calculated as follows: (1,000 – 25) X 95% = 926 Commercial Customers. 2. Company Has Maintained Full Implementation of all AB 341 and AB 1826 Diversion Programs. Company must implement and maintain AB 341 and AB 1826 Diversion programs such that all Commercial Customers required to have such programs are subscribed to the Company-provided program, unless the Customer has been granted a waiver per the City Municipal Code or do not otherwise comply via Self-Haul or Back-Haul programs. 3. Non-Compliant Customers Company shall document any Customers that do not subscribe to the required mandatory programs per AB 341, AB 1826, and/or SB 1383, and forward the list of non- compliant Customers to the City’s Code Enforcement Department. 4.7.13 CNG Fueling Station Company will allow City to use Company’s public access CNG fueling station at the pump price available to the general public. Page 388 City of Palm Desert Franchise Agreement City of Palm Desert 57 March 10, 2022 4.7.14 Hazardous Waste Services The Company shall maintain the following Hazardous Waste services/programs: A. At-Home Collection Service: The Company shall provide all labor, equipment, and services necessary to Collect HHW from individual Residential dwellings and Multi-Family housing complexes upon request of the occupant or property manager/management. The service shall be operated according to the following guidelines: 1. The service will be provided to any Residential dwelling within five (5) Business Days of a telephone or written request by the occupant. 2. Collections shall be made Monday through Friday during normal business hours of 6:00 a.m. to 5:00 p.m. 3. Residents must store HHW materials in a secure location not accessible to the general public until Collected by Company. 4. The total amount of HHW materials Collected from an individual dwelling unit shall not exceed fifteen (15) gallons per pickup as regulated by State regulations. Other limitations shall consist of ten (10) CFL bulbs/bulbs, 32 oz. can of household batteries and other limitations as may be approved by the City. 5. The number of Collections at any dwelling shall be limited to four (4) in each calendar year. 6. Materials to be Collected must be presented for Collection in spill and leak- proof Containers. 7. Prior to acceptance for Collection, all materials shall be inspected by Company’s representative and only those materials that can be identified by either their original Container labeling or by sight recognition of a trained technician will be accepted for Collection. 8. The dwelling occupant or a responsible adult representative of the dwelling must be present at the time of Collection or the material must be placed at a side gate or secure area. No items will be accepted at the curbside of any residents. Page 389 City of Palm Desert Franchise Agreement City of Palm Desert 58 March 10, 2022 9. The cost of the on-going at-home HHW Collection service may be paid through grant funding as outlined in Section 6.7. The Company will invoice the City an $19.58 service charge per stop plus actual Disposal Cost. The service charge will be subject to increases in accordance with Article 6 of this Agreement. 10. At such time as the City deems appropriate, City and Company will negotiate in good faith a rate to be implemented with the annual rate increase process. 11. Multi-Family Dwelling Units shall keep materials in a safe but accessible location for Collection. Property manager/Company shall be responsible for setup of a central location that all tenants may temporarily place materials that is safe and accessible for pickup. Limited to four (4) times per year. 12. Materials to be Collected through at-home HHW Collection service: acids, kerosene, other household flammable liquids, bases, lamp oil, paint strippers, ethylene glycol, latex paint, pesticides, herbicides, fertilizers, lead acid batteries, small quantities of Mercury from home-based Mercury containing devices, household batteries, oil-based paints, used motor oil/used oil filters, household cleaners, old gasoline, Sharps, E-Waste, and Universal Wastes. B. Conditionally Exempt Small Quantity Generators (CESQG) (Commercial Businesses) Hazardous Waste Program: Palm Desert Commercial businesses shall drop-off Hazardous Waste materials at Company site located at 41-800 Corporate Way, Palm Desert, CA. Following is the process in order to schedule an appointment for drop-off: • Palm Desert Commercial businesses must contact Company’s contractor at 1-800-952-5566, unless contractor changes. Customer would then contact Company at (760) 340-2113 to schedule an appointment for drop-off. • Company’s contractor shall contact City prior to setting appointment to confirm that Commercial business is licensed and physically located within the Palm Desert City limits. • Company’s contractor to finalize appointment with business after approval from City. If Company’s contractor determines the Hazardous Waste materials Collection and Disposal amount will exceed the City cost allotment provided in the following paragraph, Company will provide an invoice for the additional cost to the Commercial Customer to remit payment during the scheduled appointment directly to Company or Company’s contractor. Page 390 City of Palm Desert Franchise Agreement City of Palm Desert 59 March 10, 2022 • Palm Desert Commercial businesses shall be allotted three hundred dollars ($300.00) per calendar year. Allocated funds shall not be carried-over to the following year. Business shall be responsible to pay all costs over three hundred dollars ($300.00) in the calendar year. The three hundred dollars ($300.00) allotment may be eliminated or reduced at City discretion. • CESQG are regulated to State and federal laws that limit the use of Hazardous Waste Collection programs as follows: one hundred (100) kilograms (twenty-seven (27) gallons or two hundred and twenty (220) pounds) of Hazardous Waste per month. Businesses that generate more than this amount are required by law to use a licensed Hazardous Waste hauler to manifest and Transport their waste. • Company’s contractor to require business to complete the CESQG Data Sheet and Waiver and keep on file and submit copies of all forms to City quarterly. C. Other Responsibilities of Company: Additional responsibilities of the Company include: 1. A written operating plan for the HHW Facility and the HHW at-home Collection service; 2. The development, preparation, and distribution of public education materials and participation in school education programs; 3. Maintenance of any required HHW Facility, handling of Transportation permits; 4. Selection of a permitted Hazardous Waste hauler (unless performed by Company); 5. Management of the HHW Facility/Services when operated at Company’s yard; and 6. Assistance to City in the preparation of grant applications. D. Annual Statement of Cost - The Company shall submit an annual statement to the City by March 31st of each year for operations during the previous calendar year. This report shall include the detailed costs and operating statistics (e.g., number of Customers by jurisdiction and quantities by waste type for each jurisdiction) for the HHW services during the previous calendar year and for At- Page 391 City of Palm Desert Franchise Agreement City of Palm Desert 60 March 10, 2022 Home Collection Service and CESQG. E. Materials to be Accepted at Facility - The Company shall accept and remain permitted to accept the following HHW that are defined as HHW: • Electronic Waste: cathode ray tube containing devices, cathode ray tubes, computer monitors, desktop computers, computer keyboards, fax machine, computer scanners, hard drives, ink toner cartridges, iPads and tablets, laptop computers, LCD containing desktop monitors, microwaves, paper shredders, printers, portable DVD players, radios, routers, speakers, small wine coolers and down size refrigerators, televisions, telephones, cell phones, answering machines, video cassette recorders, and calculators; and, • Universal Waste: household batteries (including AAA, AA, C, D, button cell, and 9-volt), household lightbulbs, florescent lamps, non-PCB ballasts, motor oil, motor oil filters, and household thermometers that contain Mercury. F. Household Hazardous Waste Services Reporting - Company will submit a quarterly (unless otherwise noted) report within thirty (30) days of the end of each calendar quarter showing the following information by month: 1. Commercial HHW Collection Service • The name, address, and number of Palm Desert business participants. • The number of vehicles that used the services by City origin. • The average cost per vehicle paid to the operations subcontractor. • The total monthly cost and year-to-date cost of operating the HHW services for Palm Desert Customers. • If applicable, grant funds utilized during the month and year-to-date for the cost of the HHW services operation for Palm Desert Customers, and remaining grant funds for the balance of the calendar year. • The quantity and type of materials Disposed through HHW Collection services. 2. At-Home HHW Collection Service • The number and addresses of dwellings from which Collections were made. • The average cost per dwelling serviced. • The total monthly cost and year-to-date for the cost of the HHW at-home Page 392 City of Palm Desert Franchise Agreement City of Palm Desert 61 March 10, 2022 Collections for Palm Desert Customers. • The quantity and type of materials Collected in the HHW at-home Collection program. • The number of households that utilized the At-Home Collection Service. • CESQG Data and Waiver Sheet – submitted to City monthly. 4.7.15 Medication Takeback Program Company will assist the City in increasing awareness of medication takeback programs provided by local pharmacies, or programs offered by other government entities. Promotional activities will include: posting on Company’s website, inclusion in the outreach materials mailed to each Residential Premises Customer, Billing inserts, social media targeted outreach, and press releases to local news outlets. 4.7.16 Procurement of Recovered Organic Waste Products Beginning April 1, 2022, Company shall procure sufficient Compost, Mulch, and/or Renewable Natural Gas to meet the City’s per capita procurement annual recovered Organic Waste product procurement requirement contained in 14 CCR Section 18993.1, and all such materials shall meet specifications and requirements in 14 CCR Sections 18982(a) and 18993.1. The estimated quantity of Compost to meet this obligation based on the population as of 2021 is two thousand five hundred and one (2,501) tons and will adjust annually based on future population. Company may meet this obligation by one or a combination of the following activities: • Bulk Compost and/or Mulch, derived from California Organic Materials, Reserved for City - Company shall make available, and Transport to City upon request, for City Compost or Mulch for use in City parks and facilities at no cost to the City estimated not to exceed delivery to six (6) sites and one hundred (100) tons per year for City use. • Bulk Compost and/or Mulch, derived from California Organic Materials - Company shall procure and distribute the required amount of Compost to other parties on behalf of the City and provide all required documentation so the City receives procurement credit. • Compost Giveaway as described in Section 4.7.8. • Use of Renewable Natural Gas in Collection vehicles. Company shall ensure sufficient storage capacity and supply of California recovered Organics Waste products to meet the procurement requirements for jurisdictions contained in SB 1383, as may be amended, during the Term of this Agreement including Agreement extensions granted by the City. Page 393 City of Palm Desert Franchise Agreement City of Palm Desert 62 March 10, 2022 4.7.17 Company Warranty of Recovered Organic Waste Products Company shall provide assurance through the execution of a liability waiver stating that all Organic Waste products provided by the Company and used within the City meet all Applicable Laws, including with respect to allowable levels of pathogens and inorganic waste material that may be harmful to the health and welfare of the City. The Company shall indemnify and hold harmless the City against any claims arising from recovered Organic Waste products provided by the Company that do not comply with Applicable Law. 4.7.18 Special Cleanup Events Company shall annually provide Containers for up to twelve (12) cleanup events per year at locations requested by the City at no additional charge. Containers for use at events shall not exceed one, forty (40) yard Roll-off Box or equivalent Container capacity using multiple smaller Containers. These cleanup events include, but are not limited to cleanup of temporary encampments as may be directed by the City. 4.7.19 Community Composting Facilities If a properly permitted community Composting site as defined in 14 CCR Section 18982(a)(8) becomes available in or around the City of Palm Desert, Company will Transport Organic Materials Collected in the City to the site per the direction of the City. The Approved Facilities table in Exhibit 8 will be administratively updated by the City at the time a community Composting site is approved by the City for delivery of Organic Materials. Company is required to provide records of the amount of Source Separated Organic Materials delivered to any community Composting sites as an additional item in the monthly reports per Section 8.3.2. 4.8 Operations 4.8.1 Schedules Solid Waste shall be Collected according to the City Code as follows: Commercial: a) Winter Months (October 1st through April 30th) - between 6:00 a.m. and 6:00 p.m.; b) Summer Months (May 1st through September 30th) - between 5:30 a.m. and 6:00 p.m. Page 394 City of Palm Desert Franchise Agreement City of Palm Desert 63 March 10, 2022 Residential: a) Winter Months (October 1st through April 30th) – between 6:30 a.m. and 6:00 p.m.: b) Summer Months (May 1st through September 30th) – between 5:30 a.m. and 6:00 p.m. Solid Waste shall be Collected from Commercial zones Monday through Saturday, and Residential zones Monday through Friday, unless Saturday Collection shall be necessary due to holiday scheduling. If the regularly scheduled Collection day falls on New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, or Christmas Day, alternate Collection shall be performed on the following day, unless the alternate day falls on Sunday. Alternate Collection shall then be performed on the following Monday. All other Collection days falling on a legal holiday shall remain as scheduled. Collections for the remainder of the week following a holiday shall be delayed for one day. The Company shall be prepared to review its operations plan outlining the Collection routes, intervals of Collection and Collection times for all materials Collected under this Agreement with the City once annually upon thirty (30) day written notice requesting said review. More frequent reviews may be required if operations are not satisfactory based on documented observations or reports of complaints. If the plan is determined to be inadequate by the City, the Company shall revise its plan incorporating any changes into a revised plan and review said revised plan with the City within thirty (30) calendar days. When notified of a missed pick-up, the Company shall Collect the Refuse, Recyclable Materials, and/or Organic Materials within one (1) Business Day. 4.8.2 Vehicles A. General. The Company shall provide Collection vehicles sufficient in number and capacity to efficiently perform the work required by this Agreement in strict accordance with its terms as described in the Company's Proposal. Any additional vehicles/routes that may be required to meet the service standards during the Term of this Agreement, above the number included in the Company's Proposal shall be done so at the Company's sole expense. The Company shall have available on Collection days sufficient back-up vehicles for each type of Collection vehicle used to respond to complaints and emergencies. Company shall provide electronic communication with the route supervisor and Commercial and Residential Collection vehicles. B. Specifications. All vehicles used by the Company in providing Refuse, Recycling, Page 395 City of Palm Desert Franchise Agreement City of Palm Desert 64 March 10, 2022 and Organic Materials Collection services shall be registered with the California Department of Motor Vehicles. All such vehicles shall have water-tight bodies designed to prevent leakage, spillage or overflow. C. Alternative Fuel Vehicles. The Company shall comply with the requirements of the South Coast Air Quality Management District Rule No. 1193. Further, all regular Residential, Commercial, and Roll-Off Collection vehicles used by the Company to Collect Refuse, Recyclable Materials, Organic Materials, Food Waste, and Organic Materials generated within City shall be alternative fuel vehicles. Qualifying vehicles include: 1) Compressed Natural Gas (CNG) vehicles; and, 2) Liquefied Natural Gas (LNG) vehicles 3) Other alternative fuel vehicles with similar emission performance standards if such vehicles are approved in writing by the City in advance of implementation of such vehicles. D. Vehicle Identification. The Company's name, local telephone number, and a unique vehicle identification number designed by the Company for each vehicle shall be prominently displayed on all vehicles, in letters and numbers no less than three (3) inches high. The Company shall not place the City's name and/or any City logos on the Company vehicles. E. Cleaning and Maintenance 1) The Company shall maintain all of its properties, vehicles, Facilities, and equipment used in providing service under this Agreement in a good, safe, neat, clean and operable condition at all times. 2) Vehicles used in the Collection of Refuse, Recyclable Materials, and Organic Materials shall be painted, thoroughly washed, and thoroughly steam cleaned on a regular basis so as to present a clean appearance. The City may inspect vehicles at any time to determine compliance with this Agreement. The Company shall also make vehicles available to the Riverside County Health Department for inspection, at any frequency it requests. The Company agrees to replace or repair to the City’s satisfaction, any vehicle which the City determines to be of unsightly appearance, leaking, or in unsatisfactory operating condition. 3) The Company shall repaint all vehicles used in the Collection of Refuse, Page 396 City of Palm Desert Franchise Agreement City of Palm Desert 65 March 10, 2022 Recyclable Materials and Organic Materials within sixty (60) days notice from the City, if the City determines that their appearance warrants painting. 4) The Company shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles which are not operating properly, or vehicles in such a condition as to be unsafe or excessively noisy, shall be removed from service until repaired and operating properly. The Company shall reasonably perform all scheduled maintenance functions in accordance with the manufacturer's specifications and schedule. The Company shall keep accurate records of all vehicle maintenance, recorded according to date and mileage (or hours of operation) and shall make such records available to the City upon request. 5) The Company shall repair, or arrange for the repair of, all of its vehicles and equipment for which repairs are needed because of accident, breakdown or any other cause so as to maintain all equipment in a safe and operable condition. If an item of repair is covered by a warranty, the Company shall obtain warranty performance. The Company shall maintain accurate records of repair, which shall include the date and mileage (or hours of operation), nature of repair and the verification by signature of a maintenance supervisor that the repair has been properly performed. 6) Upon request by the City, the Company shall furnish the City a written inventory of all Collection equipment, including vehicles and Containers used in providing service, and shall update the inventory upon request, up to once annually. The inventory shall list all equipment by manufacturer, ID number, date of acquisition, type, and capacity. 7) Company shall clean up any leaks or spills from its vehicles per the National Pollutant Discharge Elimination System (NPDES) permit in effect at the time. No fluids shall be washed into storm drains at any time. All NPDES dry- cleaning measures shall be complied with. All Collection Vehicles must be equipped with absorbent for such clean-up efforts. F. Operation. Vehicles shall be operated in compliance with the California Vehicle Code, and all applicable safety and local ordinances. The Company shall not load vehicles in excess of the manufacturer's recommendations or limitations imposed by State or local weight restrictions on vehicles. Equipment shall comply with US EPA noise emission regulations, currently codified at 40 CFR Part 205 and other applicable noise control regulations, and Page 397 City of Palm Desert Franchise Agreement City of Palm Desert 66 March 10, 2022 shall incorporate noise control features throughout the entire vehicle. In no event shall the noise level of equipment used for Collection exceed 75 dba when measured at a distance of 25 feet from the vehicle, five feet from the ground. The Company shall store all equipment in safe and secure locations in accordance with the City's applicable zoning regulations. Subject to Section 9.1, the Company shall be responsible for any damage resulting from or directly attributable to any of its operations, and which it causes to: the City's driving surfaces, whether or not paved; associated curbs, gutters and traffic control devices; other public improvements; and private roads and alleys. G. City Inspection Per Code. The City may cause any vehicle used in performance of this Agreement to be inspected and tested at any commercially reasonable time and in such manner as may be appropriate to determine that the vehicle is being maintained in compliance with the applicable provisions of the State Vehicle Code, including all Vehicle Code Sections regarding smog equipment requirements. The City may direct the removal of any vehicle from service if that vehicle is found to be in nonconformance with applicable codes. No vehicle directed to be removed from service by the City shall be returned to service until it conforms with applicable codes, and its return to service has been approved by the City. H. Vehicle Inspections. Company shall inspect each vehicle daily to ensure that all equipment is operating properly. Vehicles that are not operating properly shall be taken out of service until they are repaired and operate properly. Company shall repair, or arrange for the repair of all its vehicles and equipment for which repairs are needed because of accident, breakdown, or any other cause so as to maintain all equipment in a safe and operable condition. City may inspect vehicles at any reasonable time, and within three (3) calendar days of such a request, to determine compliance with sanitation requirements. I. Correction of Defects. Following any inspection, the City Manager or their designee shall have the right to cause the Company, at its sole cost and expense, to recondition or replace any vehicle or equipment found to be unsafe, unsanitary or unsightly. The City Manager or their designee’s determination may be appealed to the City Council, which decision shall be final. 4.8.3 Containers 4.8.3.1 Cart Design Requirements These Carts shall be manufactured by injection or rotational molding and meet the Cart design requirements as specified below and performance requirements in Section 4.8.3.2. Carts must meet color, size, uniformity, and quality requirements of the City. The City Page 398 City of Palm Desert Franchise Agreement City of Palm Desert 67 March 10, 2022 will not permit Carts with inconsistent colors or in poor condition to be used in the City at any time during the Term of this Agreement, and may require Company to replace such Carts. 4.8.3.1.1 Capacity The Company shall continue to provide new and replacement Carts in the same three sizes and appearance for Residential Refuse, Recycling and Organic Materials Collection as in use at the start of this Agreement Term: 95, 65, and 35-gallon sizes. 4.8.3.1.2 Cart Handles The Cart handles and handle mounts may be an integrally molded part of the Cart body or molded as part of the lid. Bolt-on handles are acceptable. The Cart handles will provide comfortable gripping area for pulling or pushing the Cart or lifting the lid. Pinch points are unacceptable. 4.8.3.1.3 Cart Lid Each Container shall be provided with a lid that continuously overlaps and comes in contact with the Container body or otherwise causes an interface with the Container body that simultaneously: • Prevents the intrusion of rainwater, rodents, birds, and flies; • Prevents the emission of odors; • Enables the free and complete flow of material from the Container during the dump cycle without interference with the material already deposited in the truck body or the truck body itself and its lifting mechanism; • Permits users of the Container to conveniently and easily open and shut the lid throughout the serviceable life of the Container; • The lid handle shall be an integrally molded part of the lid; • The lid (and body) must be of such design and weight that would prevent an empty Container from tilting backward when flipping the lid open; and, • The lid shall be hinged to the Cart body in such a manner so as to enable the lid to be fully opened, free of tension, to a position whereby it may rest against the backside of the Container body. Page 399 City of Palm Desert Franchise Agreement City of Palm Desert 68 March 10, 2022 4.8.3.1.4 Cart Colors The Refuse, Recycling, and Organic Materials Carts will continue to be differentiated by color. The colors shall be colorfast and resistant to fading as a result of weathering or ultraviolet degradation. Color must be uniform within each Container, and the colors must be uniform for all Carts throughout the City. Cart or Cart lid colors shall be consistent throughout the City, and shall comply with SB 1383 requirements under 14 CCR Section 18984.7. 4.8.3.1.5 Cart Identification Markings Labels used on Carts shall be placed on the inside of the Cart lid, and hot stamps shall be on the top of the lid and/or on the body of the Cart. Each Cart shall be hot stamped with the material type (e.g., Refuse, Recycling, Organic Materials) in English and Spanish. Labels shall include graphic instruction on what materials should and should not be placed in each Cart. Design for both the labels and the hot stamps must be approved by City prior to ordering labels or Carts. City shall approve what information is included on the label and in the hot stamp, as well as approve design and quality. Labels shall be replaced when worn, and when information on the label is in need of updating, but no later than ninety (90) days of request from City. Additionally, all Carts shall be labeled in accordance with CalRecycle requirements under SB 1383 under 14 CCR Section 18984.8 for new Containers after January 1, 2022. 4.8.3.1.6 Recycling Cart Replacement for SB 1383 Compliance Upon execution of the Agreement, Company will initiate replacement of all Residential Recycling Carts. The existing gray Recycling Carts will be transitioned for use as Refuse Carts with new identification included on the Cart lids, and Company will deliver a new, blue Recycling Cart to replace all current Recycling Carts in use by Residential Customers. All Residential Recycling Carts will need to be replaced as described above within six (6) months of the effective date of the Agreement. 4.8.3.2 Cart Performance Requirements All Carts shall be designed and manufactured to meet the minimum performance requirements described below. 4.8.3.2.1 Cart Load Capacity Depending on the capacity, the Carts shall have a minimum load capacity as noted below without Container distortion, damage, or reduction in maneuverability or any other functions as required herein. Page 400 City of Palm Desert Franchise Agreement City of Palm Desert 69 March 10, 2022 Cart Size (Gallons) Minimum Load Capacity (LBS) 90-101 200 60-70 130 30-35 70 4.8.3.2.2 Cart Durability Carts shall remain durable, and at a minimum, shall meet the following durability requirements to satisfy its intended use and performance, for the Term of this Agreement: • Maintain its original shape and appearance; • Be resistant to kicks and blows; • Require no routine maintenance and essentially be maintenance free; • Not warp, crack, rust, discolor, or otherwise deteriorate over time in a manner that will interfere with its intended use; • Resist degradation from ultraviolet radiation; • Be incapable of penetration by biting or clawing of household pets (i.e., dogs and cats); • The bottoms of Cart bodies must remain impervious to any damage, that would interfere with the Cart’s intended use after repeated contact with gravel, concrete, asphalt or any other rough and abrasive surface; • All wheel and axle assemblies are to provide continuous maneuverability and mobility as originally designed and intended; and, • Resist degradation by other airborne gases or particulate matter currently present in the ambient air of the City. 4.8.3.2.3 Chemical Resistant Carts shall resist damage from common household or Residential products and chemicals. Carts, also, shall resist damage from human and animal urine and feces. Page 401 City of Palm Desert Franchise Agreement City of Palm Desert 70 March 10, 2022 4.8.3.2.4 Stability and Maneuverability The Carts shall be stable and self-balancing in the upright position, when either empty or loaded to its maximum design capacity with an evenly distributed load, and with the lid in either a closed or open position. The Carts shall be capable of maintaining its upright position in sustained or gusting winds of up to twenty-five (25) miles per hour as applied from any direction. The Carts shall be capable of being easily moved and maneuvered, with an evenly distributed load equal in weight to its maximum design capacity on a level, sloped or stepped surface. 4.8.3.2.5 Lid Performance Cart lid assemblies shall meet the following minimum requirements: • Prevent damage to the Cart body, the lid itself or any component parts through repeated opening and closing of the lid by residents or in the dumping process as intended; • Remain closed in winds up to twenty-five (25) miles per hour from any direction. All lid hinges must remain fully functional and continually hold the lid in the original designed and intended positions when either opened or closed or any position between the two extremes; and, • Lid shall be designed and constructed such that it prevents physical injury to the user while opening and closing the Container. 4.8.3.2.6 Repairability Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by the Company personnel. All repairs must restore the Container to its full functionality to meet the design and performance requirements as set for herein. 4.8.3.2.7 Cart Replacement The majority of the Carts in distribution at the start of this Agreement Term are aging and may need replacing during the Agreement Term. Company shall replace any Cart upon request of City or Customer with a uniform-looking new Cart. Carts removed from service due to a complaint of poor appearance may not be placed back into service, in either the same or another location, unless specifically authorized in writing by the City. Replacement of Carts shall also be in conformance with Sections 4.8.3.1.5 and 4.8.3.1.6. Page 402 City of Palm Desert Franchise Agreement City of Palm Desert 71 March 10, 2022 4.8.3.3 Cart Ownership and Maintenance Responsibilities The Company shall be responsible for Cart repair and maintenance, graffiti removal, and replacing lost, stolen or damaged Carts within five (5) Business Days at no additional charge to the Customer or to the City. All Carts provided under this Agreement may become the property of the City at the end of this Agreement, although the City retains the right to direct the Company to remove some or all of the Carts at the end of this Agreement Term at no additional charge. Minor cracks, holes, and other damages to hinges, wheels, axle, hardware, and other component parts shall be readily repairable by Company personnel. All repairs must restore the Cart to its full functionality to meet the design and performance requirements as set for herein. Unsightly/worn-out Carts shall be replaced upon Customer request. Company shall replace, repair, and/or remove graffiti on Carts that require maintenance. Company shall proactively inspect all Carts for damage on an annual basis during the regular servicing of Customer Carts. Company shall provide a report to City on an annual basis documenting the results of the inspections. The inspection report shall summarize the number of Carts replaced by waste stream (Refuse, Recyclables, Organics). Additionally, the report shall identify the addresses where Carts were replaced and who requested the replacement Cart for each address (Customer, City, or Company). 4.8.3.4 Bins The Company shall provide Commercial, industrial, apartment and homeowner association Customers requesting such service with Containers for Collection of Solid Waste. Containers shall be constructed of heavy metal, or other suitable, durable material, and shall be watertight and well painted. Wheels, forklift slots, and other appurtenances which were designed for movement, loading, or unloading of the Container shall be maintained in good repair. Bin Cleaning - The Company shall maintain its Containers in a clean, sound condition free from Putrescible Waste. Company shall inspect all Bins at least once per year, and clean or replace all Commercial and Industrial Containers as necessary, or upon Customer request. One free cleaning or replacement per calendar year shall be provided to each Customer at no additional charge, with two free cleanings/replacements per calendar year for food establishments. Company shall perform cleaning or replacement of Containers more frequently if necessary, for an additional fee, to prevent a nuisance caused by odors or vector harborage. Customer may request additional cleanings for a fee, in accordance with the approved rate schedule. Food handling establishments must have Bins cleaned at a minimum of one (1) time per year and must be maintained in accordance with the City Municipal Code and may be charged for cleanings beyond two (2) per year in accordance with this Section. Graffiti shall be removed from any Container Page 403 City of Palm Desert Franchise Agreement City of Palm Desert 72 March 10, 2022 within one (1) Business Day of request by City or Customers. Each Container placed in the City by the Company shall have the name of the Company in letters not less than three (3) inches high on the exterior of the Container so as to be visible when the Container is placed for use. Company shall proactively inspect all Bins for damage on an annual basis during regular servicing of Customer Bins. Company shall provide a report to City on an annual basis documenting the results of the inspection including, but not limited to, the number of Bins replaced by Bin type broken down by City, Customer, or Company request, and the addresses where Bins were replaced. In addition, drivers shall be proactive in reporting Bins that require repair, replacement, and/or graffiti removal. Bin Identification, Colors, and Labels - All Bins shall be the same color, except where the City states otherwise, and shall carry the Company’s name and phone number, at least three (3) inches high. All Refuse, Source Separated Recyclable Materials, and/or Organics Materials Bins at a Customer location shall be uniform in color. Any new Containers purchased after January 1, 2022 shall include labeling in compliance with the Container labeling requirements specified in SB 1383, 14 CCR Section 18984.8. However, Company shall not be required to replace existing Containers that do not comply with the labeling requirements, including Containers purchased prior to January 1, 2022, prior to the end of the useful life of those Containers, or prior to January 1, 2036, whichever comes first. Company shall submit a sample of its proposed label design to the City for approval in advance of purchasing and distributing Containers to Customers. 4.8.3.5 Roll-off Boxes Company shall provide clean Roll-off Boxes, free from graffiti, equipped with reflectors, and shall have the name and phone number of Company in letters not less than three (3) inches high on the exterior of the Roll-off Box so as to be visible when the Roll-off Box is placed for use. Company shall properly cover all open Roll-off Boxes during Transport as required by the State Vehicle Code. Roll-off Boxes that are painted or purchased after January 1, 2022 shall comply with the Container color requirements specified in SB 1383 (14 CCR Section 18982 and 14 CCR, Division 7, Chapter 12, Article 3) for Solid Waste, Recyclable Materials, and Organic Materials. 4.8.4 Litter Abatement A. Minimization of Spills. The Company shall use due care to prevent Solid Waste or fluids from leaking, being spilled and/or scattered during the Collection or Transportation process. If any Solid Waste or fluids leak or are spilled during Collection, the Company shall promptly clean up all such materials. Each Collection vehicle shall carry a broom and shovel at all times for this purpose. Page 404 City of Palm Desert Franchise Agreement City of Palm Desert 73 March 10, 2022 The Company shall not transfer loads from one vehicle to another on any public street, unless it is necessary to do so because of mechanical failure, accidental damage to a vehicle, or a pre-approved method of Solid Waste transfer between vehicles, without prior written approval by the City. B. Clean Up. During the Collection or Transportation process, the Company shall clean up litter in the immediate vicinity of any Solid Waste storage or Collection area whether or not the Company has caused the litter. The Company shall identify instances of repeated spillage not caused by it directly with the Customer responsible and will report such instances to the City. The City will attempt to rectify such situations with the Customer if the Company has already attempted to do so without success. C. Covering of Loads. The Company shall properly cover all open Roll-off Boxes during Transport to an Approved Facility. 4.8.5 Personnel The Company shall furnish such qualified drivers, mechanical, supervisory, clerical, management and other personnel as may be necessary to provide the services required by this Agreement in a satisfactory, safe, economical and efficient manner. All drivers shall be trained and qualified in the operation of vehicles they operate and must possess a valid license, of the appropriate class, issued by the California Department of Motor Vehicles. The Company also agrees to establish and vigorously enforce an educational program which will train the Company's employees in the identification of Hazardous Waste. The Company's employees shall not knowingly place such Hazardous Waste in the Collection vehicles, nor knowingly Dispose of such Hazardous Wastes at the Processing Facility or Disposal Site. The Company shall train its employees in Customer courtesy, shall prohibit the use of loud or profane language, and shall instruct Collection crews to perform the work quietly. The Company shall use its best efforts to assure that all employees present a neat appearance and conduct themselves in a courteous manner. If any employee is found to be discourteous or not to be performing services in the manner required by this Agreement, the Company shall take all necessary corrective measures including, but not limited to, transfer, discipline or termination. If the City has notified the Company of a complaint related to discourteous or improper behavior, the Company will consider reassigning the employee to duties not entailing contact with the public while the Company is pursuing its investigation and corrective action process. Page 405 City of Palm Desert Franchise Agreement City of Palm Desert 74 March 10, 2022 The Company shall provide suitable operations, health and safety training for all of its employees who use or operate equipment or who are otherwise directly involved in Collection or other related operations. 4.8.6 Identification Required The Company shall provide its employees, companies and subcontractors with identification for all individuals who may make personal contact with residents or businesses in the City. The City may require the Company to notify Customers yearly of the form of said identification. The Company shall provide a list of current employees, companies, and subcontractors to the City upon request. The City reserves the right to perform a security and identification check through law enforcement agencies upon the Company and all its present and future employees, in accordance with accepted procedures established by the City, or for probable cause. 4.8.7 Fees and Gratuities The Company shall not, nor shall it permit any agent, employee, or subcontractors employed by it, to request, solicit, demand, or accept, either directly or indirectly, any compensation or gratuity for temporary Bin/Roll-off Box services or the Collection, Transportation, Recycling, Processing, and Disposal of Solid Waste, otherwise required under this Agreement. 4.8.8 Equal Opportunity Employment Company represents that it is an equal opportunity employer and it shall not discriminate against any contractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Such non- discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Company shall also not discriminate against any Customer because of race, religion, color, national origin, handicap, ancestry, sex, sexual orientation, or age. Lastly, Company shall comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 4.8.9 Coordination with Street Sweeping Services Company shall coordinate route schedules with the City’s street sweeping schedule. Company shall provide all routes and route schedules to the City and work with City to resolve conflicts with street sweeping schedules. Page 406 City of Palm Desert Franchise Agreement City of Palm Desert 75 March 10, 2022 4.8.10 Change in Collection Schedule The Company shall notify the City in writing forty-five (45) days prior to, and homeowner associations and other Residential Customers not later than thirty (30) days prior to, any change in homeowner association and other Residential Collection operations which results in a change in the day on which Solid Waste Collection occurs. The Company will not permit any Customer to go more than seven (7) days without service in connection with a Collection schedule change. The City's approval of any change in homeowner association and other Residential Collection is required prior to such change, and such approval will not be withheld unreasonably. Any changes in the route map or Collection schedule shall require the prior approval of the City. The City may require changes in the route map or Collection schedule, to improve service, to resolve complaints or for other reasons. 4.8.11 Report of Accumulation of Solid Waste; Unauthorized Dumping The Company shall direct its drivers to note the addresses of any Premises at which they observe that Solid Waste is accumulating and is not being delivered for Collection; and the address, or other location description, at which Solid Waste has been dumped in an apparently unauthorized manner. The Company shall deliver the address or description to the City within five (5) working days of such observation. Company shall cooperate with City in the investigation and prosecution of any violations of the Palm Desert City Code. 4.9 Transportation of Discarded Materials Company shall Transport all Discarded Materials to the Approved Facility(ies) specified in Exhibit 8 and shall transfer, Process, and/or Dispose of Discarded Materials in accordance with this Section and Exhibit 8. If the Approved Facilities change during the Term of this Agreement, and the Company does not own or operate one or more of the Approved Facilities, Company shall enter into a subcontract agreement with the Owner or Facility operator of such Approved Facility(ies) and the requirements of this this Section and Exhibit 8 shall pertain to the subcontractor. In addition, subcontractor requirements or obligations related to indemnification (Article 9) and insurance requirements (Section 9.4) shall apply, as well as any other subcontractor requirements or obligations stated in other Sections of this Agreement. The Approved Facilities shall comply with the following requirements. A. Approved Transfer Facility. Company’s Approved Transfer Facility shall be a transfer Facility or operation that transfers Single Family Dwelling, Multi-Family Dwelling, and Commercial Source Separated Recyclable Materials, Source Page 407 City of Palm Desert Franchise Agreement City of Palm Desert 76 March 10, 2022 Separated Organic Materials, and/or Gray Container Waste Collected in accordance with this Agreement. B. Approved Source Separated Recyclable Materials Processing Facility (Blue Containers). Company’s Approved Recyclables Processing Facility shall be a Facility or operation that Processes Residential Premise, Multi-Family Dwelling, and Commercial Source Separated Recyclable Materials to recover materials designated for Collection in the Blue Containers. C. Approved Organic Waste Processing Facility (Green Containers). Company’s Approved Organic Waste Processing Facility shall be a Facility that Processes Single Family Dwelling, Multi-Family Dwelling, and Commercial Source Separated Organic Materials to recover Source Separated Organic Materials. D. Approved Disposal Facility (Gray Containers). Company’s Approved Disposal Facility shall be a Disposal Facility that accepts Single Family Dwelling, Multi- Family Dwelling, and Commercial Gray Container Waste Collected in accordance with this Agreement for Disposal. 4.9.1 Processing Facility Temporary Equipment or Operational Failure Waiver A. Notification to the City. The Company, or their subcontractor (such as a Facility operator), shall notify the City of any unforeseen operational restrictions that have been imposed upon the Approved Facility by a regulatory agency or any unforeseen equipment or operational failure that will temporarily prevent the Approved Facility from Processing and recovering Blue Container and/or Green Container materials. The Company or subcontractor shall notify the City as soon as possible and no later than two (2) Business Days from the time of the incident. The notification shall include the following: (i) name of Approved Facility; (ii) the Recycling and Disposal Reporting System Number of the Approved Facility; (iii) date the Approved Facility became unable to Process Blue Container and/or Green Container materials; (iv) description of the operational restrictions that have been imposed upon the Approved Facility by a regulatory agency or unforeseen equipment failure or operational restriction that occurred; (v) the period of time the Company anticipates the temporary inability of the Approved Facility to Process Blue Container and/or Green Container materials; (vi) Company’s proposed action plan to deliver materials to an Alternative Facility for Processing (refer to Section 8.1.G of Exhibit 8) or Company’s request for waiver to deliver Blue Container and/or Green Container materials to the Approved Disposal Facility. B. Use of Alternative Facility or Waiver for Disposal of Materials. Page 408 City of Palm Desert Franchise Agreement City of Palm Desert 77 March 10, 2022 Upon notification by Company or subcontractor of the Approved Facility’s inability to Process materials, City shall evaluate the notification and determine if City shall require Company to use an Alternative Facility or allow the Company to Transport the Blue Container and/or Green Container materials to the Approved Disposal Facility for Disposal on a temporary basis for a time period specified by the City. Upon City’s decision, the City shall notify the Company of its requirement to use an Alternative Facility for Processing or to use the Approved Disposal Facility for Disposal, and the period of time that the City will allow the Blue Container and/or Green Container materials to be redirected to the Alternative Facility or Approved Disposal Facility. Pursuant to 14 CCR Section 18984.13, the approved Disposal period shall not exceed ninety (90) days from the date the Approved Facility’s Processing restriction or failure commenced. In such case, the Company must receive written permission from the City prior to depositing any Discarded Material in a Landfill. C. Record Keeping and Reporting. Company shall maintain a record of any Approved Facility incidents and report this information to the City in accordance with Article 8. 4.9.2 Transportation to Non-Approved Facilities Prohibited If Company Transports Discarded Materials to a Facility other than the Approved Facility(ies) or an Alternative Facility without prior City approval, Company’s failure to comply may result in assessment of liquidated damages, as described in Section 11.4. 4.9.3 City Option to Direct Facility Changes The Company shall Transport all Discarded Materials Collected under this Agreement to an Approved Facility in Exhibit 8, or to an alternative Facility if directed by City. City’s direction of a change to one of the Facilities that involves a change in Company’s cost of Transportation or tip fees shall include a change in the Company’s compensation to offset Company’s reasonable changes in operating costs. Company shall not redirect Discarded Materials without first notifying City in writing 30-days prior to the proposed change. City’s approval shall not be unreasonably withheld. City may periodically request Company to report the tip fees or Processing fees charged at the Approved Facilities and may evaluate those tip fees and Processing fees when considering rate increases requested by Company pursuant to Article 6 hereof. City’s evaluation of tip fees and Processing fees at Approved Facilities used by Company shall be for the purpose of determining that said fees are within a reasonable range for Page 409 City of Palm Desert Franchise Agreement City of Palm Desert 78 March 10, 2022 comparable Facilities within the same market area and shall consider all relevant cost factors including Transportation and Approved Facility output quality. City shall notify Company in writing if it determines any such fee is not within a reasonable range for comparable Facilities within the same market area. Within thirty (30) days of City’s notification of unreasonable tip fees or Processing fees, Company shall either provide written justification for the fee or redirect materials to an alternative Facility in the same market area or adjust the fee in question. If a written justification for a fee is provided by the Company the City and Company shall hold a meeting to review the justification provided. The City shall have the final determination as to whether the justification is acceptable and authority to redirect materials. 4.10 Status of Disposal Site Any landfill utilized by Company shall comply with Applicable Law and shall have been issued all permits from federal, State, regional, county and the City agencies necessary for it to operate as a Class III Landfill and is in full regulatory compliance with all such permits. 4.11 Route Audit At City’s request Company shall conduct an audit of its Commercial Collection routes in the City. Additionally, if requested by the City, the route audit shall also include Residential Collection routes. City shall request route(s) audit in writing. Within ninety (90) days of written notice to perform a route audit, Company shall perform the route audit and submit a report summarizing the audit findings and attaching the completed audit findings. The route audit shall be conducted by a Person(s), other than the route driver, selected by Company and approved in advance by the City. The route audit information shall include, as a minimum, the following information for each account: For Residential Routes: • The number of routes, Collection vehicles, and stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) prepared form physical observation. • A report generated from Company’s Customer records detailing all Customers organized by route and day of week and specifying the service address and type of service. • A report of route audit findings identifying any variances between the physical audit and review of the Company’s Customer records and the location of any Page 410 City of Palm Desert Franchise Agreement City of Palm Desert 79 March 10, 2022 substandard Company-provided Cart. • The number of routes, Collection vehicles, stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) and tonnage of each. For Commercial Routes: • The account name, number, address, and service level. • The number of routes, Collection vehicles, and stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) prepared form physical observation. • A report generated from Company’s Customer records detailing all Customers organized by route and day of week and specifying the service address and type of service. • A report of route audit findings identifying any variances between the physical audit and review of the Company’s Customer records and the location of any substandard Company-provided Cart. • The number of routes, Collection vehicles, stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) and tonnage of each. For Roll-Off Routes: • The account name, number, address, and service level. • The number of routes, Collection vehicles, and stops each day of the week and for each type of service (Refuse Roll-off Boxes, Refuse compactors, and Organic Materials Roll-off Boxes) prepared from physical observation. Temporary accounts shall be excluded from the route audit. • A report generated from Company’s Customer records detailing all Customers organized by route and day of week and specifying the service address and type of service. • A report of route audit findings identifying any variances between the physical audit and review of the Company’s Customer records and the location of any substandard Company-provided Cart. • The number of routes, Collection vehicles, stops for each day of the week and for each type of service (Refuse, Recycling, Organic Material, and other) and tonnage of each. Until such time as the Company exclusively services Palm Desert routes without merging with other jurisdictions routes audit shall also confirm that all routes are dedicated Page 411 City of Palm Desert Franchise Agreement City of Palm Desert 80 March 10, 2022 exclusively to Palm Desert Customers and shall provide information exclusively related to Palm Desert Customers. 4.12 Service Exceptions; Hazardous Waste Notifications A. Failure to Collect. When Solid Waste is not Collected from any Customer, the Company shall notify the Customer in writing, at the time Collection is not made, through the use of a Container “tag” or otherwise, of the reasons why the Collection was not made through handwritten explanations or use of check boxes. In addition to providing a tag on the Container, Company shall contact the Customer to educate the Customer on the exact reason for non-Collection including providing. Logs of Container tags and reasons for non-Collection shall be provided to the City monthly. B. Hazardous Waste Inspection and Reporting. The Company reserves the right and has the duty under law to inspect Solid Waste put out for Collection and to reject Solid Waste observed to be contaminated with Hazardous Waste and the right not to Collect Hazardous Waste put out with Solid Waste. The Company shall notify all agencies with jurisdiction, if appropriate, including the California Department of Toxic Substances Control and Local Emergency Response Providers and the National Response Center of reportable quantities of Hazardous Waste, found or observed in Solid Waste anywhere within the City. In addition to other required notifications, if the Company observes any substances which it or its employees reasonably believe or suspect to contain Hazardous Wastes unlawfully Disposed of or released on any City property, including storm drains, streets or other public rights of way, the Company will immediately notify the City Manager or their designee. C. Hazardous Waste Diversion Records. The Company shall maintain records showing the types and quantities, if any, of Hazardous Waste found in Solid Waste and which was inadvertently Collected from Customers within the City, but Diverted from landfilling. 4.13 Disaster Preparedness Plan Company shall work with City to develop a Disaster Debris Plan by July 1,2022. Both Parties shall review and update plan on an annual basis thereafter. The Plan should detailing, at minimum, how Refuse services will be delivered in a time of emergency or natural disaster. For the plan, City shall provide Company with a written list of critical Facilities being those Facilities that the City deems in need of special consideration in a time of emergency because they are critical to City’s emergency response, of priority to the need of the community and/or represent a public health risk to the community. Page 412 City of Palm Desert Franchise Agreement City of Palm Desert 81 March 10, 2022 Company’s written plan shall contain a protocol for contacting Company management in the event of an emergency, an overview of Company’s resources available for emergency response, a plan for Collecting and disposing of Refuse generated by critical Facilities until the time of emergency passes and a plan for resuming normal operations following an emergency. 4.14 Dedicated Routes Company shall not commingle City Collection routes with other city or county routes. If this is not feasible, upon approval by the City, Company may commingle routes, but must submit to City a detailed monthly report setting forth the breakdown of tonnage Collected from the commingled routes within thirty (30) days after the end of each month. Company shall have the methodology used to segregate the loads between jurisdictions approved in advance by the City. Page 413 City of Palm Desert Franchise Agreement City of Palm Desert 82 March 10, 2022 ARTICLE 5. OTHER SERVICES 5.1 Services and Customer Billing 5.1.1 Service Description Company shall annually, in May, prepare and distribute, subject to the direction of the City, a notice to each Customer listing the Company's Collection rates for services (including the estimated adjustment for the upcoming July 1 rate adjustment), annual holiday schedule, Recycling and Organic Materials Collection programs offered, and a general summary of services required to be provided hereunder and optional services which may be furnished to the Customer by the Company. Such notice shall be in a form subject to the City's approval prior to its distribution. Notice may be included with Billings. The notice may also be included as part of the Company’s public education plan described below in Section 5.3. 5.1.2 Billing 5.1.2.1 Company Billing of Master-Billed Accounts Company shall invoice all Master-Billed Accounts Customers directly, excluding Customers in the Commercial Assessment District, for which the Company shall invoice the City. Master-Billed Accounts shall be billed in accordance with the rates established in Exhibit 3 and adjusted annually pursuant to Exhibit 4. Company shall design detailed billing formats to clearly and fully explain all charges to Customers. City must approve, and may alter, all billing formats. City’s written approval is required prior to the Company charging, or agreeing to charge, a Customer rates other than those listed on the City-approved rate schedule. 5.1.2.2 City Tax Roll Billing of Individually Billed Residential Customers City shall Bill all Tax Roll Billing Accounts via the County tax roll at Company’s expense. Company shall submit updated Residential Billing information to City on or before July 1 of each year of the Term. City shall review the information and request any additional data, changes, or additions as required. Annually, Company shall promptly provide such additional or revised information to City such that City can review the new information provided and meet the County due date of August 10 for submittal of the Residential Tax Roll Billing data. Company shall work with City and County staff as needed to ensure that all Billing information is complete, accurate, complaint with all Applicable Law, and received in a format that is acceptable to the City and to the County of Riverside. With respect to tax roll receipts received by the City, the City shall deduct from the payments due to Company the Franchise Fee amount and other fees owed to the City by the Page 414 City of Palm Desert Franchise Agreement City of Palm Desert 83 March 10, 2022 Company pursuant to Article 3 of this Agreement. The City shall remit the net portion due Company for each Rate Year in two (2) installments due within sixty (60) days of receipt of each tax bill installment payment from the County of Riverside. 5.1.2.3 Company Billing of All Master-Billed Residential Dwelling Unit Customers, and Commercial and Industrial Customers Company shall bill all Master-Billed Residential Dwelling Unit Customers and Commercial and Industrial Customers, on a monthly basis, thirty (30) days in advance in accordance with the City’s approved rate schedule. Commercial and Industrial Customers shall be billed based on the number and size of their Containers and frequency of Collection. Master Billed Residential Dwelling Units will be based on the number of units or Carts and the types of services provided. To start service new Customers will pay for one month’s service in advance. Company may offer homeowners associations who are Master-Billed an eleven percent (11%) discount. 5.1.2.4 Company Billing of Roll-off Box Customers In regard to the billing of Roll-off Box Customers and the collection of those bills: For Residential Premises Customers who request Roll-off Box service, the Company shall accept major credit cards for payment. Residential Premises Customers that do not use credit cards may be required by the Company to post a security deposit or pay on a “Cash on Delivery” (C. O. D.) basis. Any unused portion of a security deposit shall be refunded to the Customer within five (5) Working Days of the termination of service. For all other Roll-off Box Customers, the Company shall invoice monthly or semi- monthly in arrears with payment due within fifteen (15) or thirty (30) days from the invoice date (i.e., the beginning of the month or the inception of service). Company may require a security deposit from Customers for temporary Roll-off Boxes, with the unused portion refunded to the Customer within five (5) Working Days of the termination of service. 5.1.2.5 City Tax Roll Billing of Commercial Assessment District The City shall Bill Customers within the Commercial Assessment District on the tax roll according to the approved rate schedule. The Company shall Bill the City for such accounts and otherwise handle accounts as Commercial Customers. 5.1.2.6 Temporary Suspension of Service Residential Can and Cart Customers 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 Page 415 City of Palm Desert Franchise Agreement City of Palm Desert 84 March 10, 2022 with each request being a maximum of two (2) consecutive months during which the Customer is not residing at the Residential Premises. Service may also be suspended due to non-payment. The re-start fee after any suspension of service or stop service would be due as per the rate schedule. The re-start fee does not apply to a Customer establishing service at a new address, but only when service has been suspended and restarted at the same location by the same Customer. 5.1.2.7 Application of Contamination Surcharges In accordance with Section 5.5.2, the Company shall assess contamination Processing fees on Customers with repeated occurrences of excess contamination with photo evidence. Any contamination Processing fees to be assessed for a Customer shall be included and itemized on the Customer’s invoice for the billing period in which the Company notified the Customer of the assessment of the contamination Processing fee. 5.1.2.8 Universal Subscription for Master-Billed Accounts Commencing within six (6) months of the effective date of a City Ordinance mandating subscription with Recyclables and Organic Materials Collection Services, upon such time that City requires that Generators are enrolled in Recyclable and Organic Material Collection services, Company shall assist the City in ensuring that the enrollment of Generators occurs in a timely and efficient manner. In accordance with record keeping and reporting, Company shall maintain records and provide reports necessary for the City to verify the enrollment of Generators. At least annually thereafter, Company shall provide reports on the Generators’ service level and list of non-enrolled Generators, and other information necessary for the City to verify the universal enrollment of Generators. 5.1.3 Review of Billings The Company shall review its Billings to Customers under Section 5.1.2. The purpose of the review is to determine that the amount that the Company is billing each Customer is correct in terms of the level of service being provided to such Customer by the Company. The Company shall review Customer accounts annually, and submit to the City a written report of that review annually on the anniversary of the Effective Day of this Agreement. The Company shall maintain copies of said Billings and receipts, each in chronological order, for a period of five (5) years after the date of service for inspection by the City upon request. The Company may, at its option, maintain those records in computer form, on microfiche, or in any other manner, provided that the records can be preserved and retrieved for inspection and verification in a timely manner, are sufficient to verify accuracy of Franchise Fees and/or other fees owed to the City, and may be produced in Page 416 City of Palm Desert Franchise Agreement City of Palm Desert 85 March 10, 2022 a form and manner sufficient to establish the existence of Customer obligations in a court of competent jurisdiction. 5.2 Customer Service 5.2.1 Office Hours Company shall provide an office within Coachella Valley, and office hours shall be, at a minimum, from 8:00 A.M. to 5:00 P.M., Monday through Friday, excluding holidays. A responsible and qualified representative of the Company shall be available during office hours for communication with the public at the office. Normal office hour telephone numbers shall be a toll-free call. The Company's telephone system shall be adequate to handle the volume of calls typically experienced on the busiest days, with a maximum hold time of three (3) minutes for Customers of the City of Palm Desert. Automated telephone answering systems with menu-driven options must provide callers with an option to connect to a live operator. Phone answering staff shall be competent to handle questions on City’s specific programs and be able to easily identify Customers that reside in Palm Desert versus County unincorporated areas such and Sun City. The Company shall also maintain a toll-free telephone number for use during other than normal business hours. The Company shall have a representative, answering or message providing/receiving (voicemail) service available at said after-hours telephone number. After-hours calls shall be responded to on the next Working Day. Company shall provide the City staff with the phone number of a live Person who may be reached twenty-four (24) hours a day. 5.2.2 Complaint Documentation All service complaints shall be directed to the Company. Daily logs of complaints concerning Collection of Solid Waste, Recyclable Materials and Organic Materials shall be retained for a minimum of twenty-four (24) months and shall be available to the City at all times upon request. The Company shall log all complaints received by telephone and said log shall include the date and time the complaint was received, name, address and telephone number of caller, description of complaint, employee recording complaint and the action taken by the Company to respond to and remedy complaint. All written Customer complaints and inquiries shall be date-stamped when received. All complaints shall be initially responded to within one (1) Working Day of receipt. The Company shall log action taken by the Company to respond to and remedy all complaints. All Customer service records and logs kept by the Company shall be available to the City upon request and at no cost to the City. Company shall supply the City, within seven (7) Page 417 City of Palm Desert Franchise Agreement City of Palm Desert 86 March 10, 2022 days of written notice, copies of all complaints on a form approved by the City and indicate the disposition of each. The City shall, at any time during regular the Company business hours, have access to the Company's Customer service department for purposes that may include monitoring the quality of Customer service or researching Customer complaints. For complaints received in which the Person alleges that an entity is in violation of SB 1383 Regulations, Company shall document the information listed in Section 8.3.2. Company shall provide this information in a brief complaint report to the City for each SB 1383-noncompliance complaint within seven (7) calendar days of receipt of such complaint, and a monthly summary report of SB 1383-noncompliance complaints in accordance with Section 8.3.2. 5.2.3 Missed or Requested Pick-ups In case of a missed pick-up of Refuse, Recyclable Material, or Organic Materials, Company shall Collect the Refuse, Recyclable Material, or Organic Materials from the Customer within one (1) Working Day. Missed pick-ups shall be logged and reported under Section 8.3.2. Requested pick-ups due to Bins filling up prior to normal Collection shall also be responded to within twenty-four (24) hours and logged and reported under Section 8.3. Company can charge for additional Customer requested pick-ups in accordance with the approved rate schedule. 5.2.4 Resolution of Customer Complaints Disputes between the Company and its Customers regarding the services provided in accordance with this Agreement may be resolved by the City. The City's decision shall be final and binding. Should Company and Customers not be able to establish a mutually acceptable fee to be charged for special hauling services, the matter shall also be determined by the City, whose written approval is required for any charges that deviate from the rate schedules, and the City’s decision shall be final. Intervention by the City is not a condition precedent to any rights or remedies third parties might otherwise have in any dispute with Company. Nothing in this Section is intended to affect the remedies of third parties against the Company. To the extent that remedies are warranted through this Agreement, this shall apply. 5.2.5 Investigation of SB 1383-Noncompliance Complaints City, or its designee, shall be responsible for investigating complaints received by the City that an entity may not be compliant with SB 1383 Regulations. Within two (2) days Page 418 City of Palm Desert Franchise Agreement City of Palm Desert 87 March 10, 2022 of the City’s or its agent’s request, Company shall provide City or its agent with the Customer’s then-current Service level information and other documentation that may be useful in the investigation, such as records of the Customer’s two (2) most recent change(s) in service level and other Customer service records. 5.2.6 Government Liaison The Company shall designate in writing a "Government Liaison" to work with the City and/or the City's designated representative(s) on contractual matters and to resolve Customer complaints. Liaison shall be well versed in City’s programs. City shall be able to contact liaison via e-mail. City shall have the right to approve the Company’s choice for a liaison and shall be notified in writing of relevant personnel changes. 5.2.7 On-line Customer Account Viewing Capabilities The Company shall provide all Customers with on-line access to their account, including detailed Billing information and the ability to make payments on-line. Upon City request, Company shall provide City with requested Customer data from Company’s billing system in electronic form on computer disks or other portable storage device. Alternatively, other methods of monitoring account information that are pre-approved by the City are acceptable. 5.3 Education and Public Awareness 5.3.1 General Company acknowledges and agrees that education and public awareness are critical, key and essential elements of any efforts to achieve AB 939 goals, SB 1383 Regulations, and compliance with other Applicable Law. Accordingly, the Company agrees to implement a public education program to educate, expand, and enhance the public’s awareness of reducing, reusing and Recycling properly. In addition, Company agrees to include public education on source reduction of household Solid Waste. Company and City shall work cooperatively in this regard. Company shall designate in writing a representative that will serve as the liaison responsible for coordinating the public education plan and its corresponding activities. Company shall submit the public education program for approval by the City prior to the Effective Date of the Agreement. The approved public education program shall be incorporated as Exhibit 2 into this Agreement. Company shall maintain its own program of providing information relevant to billing and Solid Waste services, issues and needs, to Customers. All public education materials shall be approved in advance by City. All printed materials shall be printed on Recycled paper wherever possible. Page 419 City of Palm Desert Franchise Agreement City of Palm Desert 88 March 10, 2022 City may require the Company to perform mailing services. City will provide not less than thirty (30) days notice to the Company prior to the mailing date of any proposed mailing to permit the Company to make appropriate arrangements for inclusion of the City's materials. The City will provide the Company the mailers at least fifteen (15) days prior to the mailing date. The City shall normally bear the expense of reproduction and distribution of such additional information only to the extent it is clearly in excess of the Company's normal Billing costs and represents services beyond the approved public education plan. The Company shall make all public education and outreach materials required by this Section available in English and Spanish. Upon City request, Company shall provide materials in additional languages beyond those specified in this Section in response to shifting demographics within the City; or updates to State requirements or Applicable Law. The Company may allow Customers to request mailings electronically in lieu of hardcopies. Company shall be required to provide an annual report to the City of Customers that have requested to receive mailings electronically. Customers will be provided the option to request electronic mailings annually. Company will provide a minimum of the following public education items to be developed and distributed at Company’s expense, subject to the City’s review and approval before distribution: • Annual Notice of Requirements. Not less than once per year during each Rate Year, Company shall prepare and distribute to each Generator in the City a mailing that includes information specified in SB 1383 (14 CCR Section 18985.1(a). Such mailer shall be distributed by Company to all Residential and Commercial mailing addresses, including individual Multi-Family Dwelling Units. • Biennial Brochure – Company shall work with City to create biennial brochure to City’s criteria that shall be in English and Spanish and mailed to both Residential and Commercial Customers. Creation and distribution shall be at Company’s expense. • Inserts in City Newsletter by Company – Company is responsible for sending providing inserts/notices promoting and explaining programs such as, but not limited to, and Collection schedules regulatory requirements (Including AB 341, AB 1826, AB 827, and SB 1383) contamination awareness, Food Recovery, source reduction tips, and other related topics deemed appropriate by City at least four (4) times per year to all Customers, with City’s review and approval of the materials. Through these and other notices sent by the Company and approved by the City, Customers shall be notified of upcoming events such as Household Hazardous Page 420 City of Palm Desert Franchise Agreement City of Palm Desert 89 March 10, 2022 Waste round-ups and other events not serviced under this Contract, as requested by the City. • Bill Notices by Company – Company is responsible for including notices promoting and explaining programs, contamination awareness, legislative requirements, and other topics mutually agreed upon by City and Company to all Company Billed Customers, with City’s review and approval of notices. • Corrective Action Notice – For use in instances where the Customer sets out inappropriate materials as specified in Section 5.5.2.C. • Public Service Announcements – Company shall produce and distribute one (1) public service announcements per year to advertise such events as, for example, Annual Cleanup per Section 4.5.1 or holiday tree Recycling. Such announcements shall be 1/8 of a page in size. Circulation shall be at the discretion of the City. • Annual Neighborhood Cleanup Insert - Company shall produce once annually for inclusion in the City’s April issue of the BrightSide Newsletter. • Website – Website page dedicated to City services, schedules and programs for City Customers to access. Website shall include Company Customer service contact information and Recycling programs and education. Company is responsible for having a link on the City website directing inquiries to Company’s website. • Truck Signs – Company will fit trucks with the required equipment to place truck signs. Company will cover cost to change sign once annually. If the City requests additional signs during any Agreement year, the additional sign is to be paid for by the City. • Residential Food Waste Program Implementation – Beginning upon the effective date of the agreement, Company shall conduct an education campaign (as outlined in Exhibit 2) focused on informing Customers of the Collection program changes in connection with the Residential Food Waste program on July 1, 2022. At a minimum, Company shall perform these services in a manner that complies with requirements of 14 CCR, Division 7, Chapter 12, Article 4. Additionally, Company shall develop and distribute an initial mailer to each Residential dwelling unit that includes a “how-to” flyer describing how to properly set out material. All brochures, mailings, and other educational materials shall bear the City logo, unless otherwise approved by the City. All Residential dwelling units, including Multi-Family and Master-Billed Customers, shall directly receive mailings from Company. It is not sufficient to send information to the Billing address of record. 5.3.2 Use of Advertising Agency Company may hire an advertising agency to assist in the development of certain public education materials. These include, at a minimum, materials on: Page 421 City of Palm Desert Franchise Agreement City of Palm Desert 90 March 10, 2022 a) City’s Annual Customer Brochure; b) City’s Annual Neighborhood Cleanup Flier; If approved by the City in advance, Company may use internal resources rather than an outside agency to produce other materials as needed and/or directed by the City. However, if the City requires Company to hire an advertising agency, the City and Company will in good faith negotiate cost to both Parties up to an amount not exceeding fifty thousand dollars ($50,000). 5.3.3 Community Events At the direction of the City, the Company shall participate in and promote Recycling and Organic Materials Collection and other Diversion techniques at community meetings, special events, and other local activities. Such participation would normally include providing, without cost to City, provision of educational information promoting the goals of the City’s Solid Waste Diversion or Recycling, Organic Materials, and Edible Food Recovery programs, and provision of guest speakers at meetings. 5.3.4 Field Representative Company shall designate in writing one or more field representatives who will contact each Commercial, Multi-Family Premises, and Master-Billed Residential account at least once per year to solicit feedback about current Collection services and modify Collection programs and Customer service levels where appropriate. Recyclable Materials and Organic Materials Collection programs must be re-offered by Company at least once per year. Company shall maintain a log of such contacts and submit it to the City monthly. Field representative(s) shall attend meetings at a minimum of one (1) time per year with civic groups, homeowners’ associations, and building managers at apartment complexes and Commercial businesses to promote and explain Recycling, Organic Materials, and other Solid Waste programs and education Tier One and Tier Two Commercial Edible Food Generators on SB 1383 Regulations for Edible Food Recovery. Company shall maintain a log of such contacts and group visits and submit it to the City quarterly. Field representative and the Recycling coordinator, as specified in the following Section, may be the same individual from the Company. 5.3.5 Recycling Coordinator Company shall provide a Recycling coordinator to: (a) be a liaison between the Company’s Refuse, Recycling, and Organic Materials Page 422 City of Palm Desert Franchise Agreement City of Palm Desert 91 March 10, 2022 operations and the City; (b) formulate, communicate, and coordinate public education campaigns; (c) produce educational material regarding all Collection programs being implemented by the City; (d) develop an annual calendar of milestones to be submitted by December 15th prior to the start of each calendar year for City to review and approve (sample milestone calendar attached as Exhibit 9) and be responsible for informing the public of events and deadlines; and, (e) assist in preparing grants that enhance public education in regards to Refuse, Recyclable Materials, and Organic Materials Collection, source reduction, and Diversion activities as stated in the Public Education and Outreach Plan in Exhibit 2. Recycling coordinator and field representative, as specified in Section 5.3.4, may be the same individual from the Company. 5.4 Discarded Materials Characterization and Capacity Planning Studies The Company acknowledges that the City may be required to perform or may choose to perform Recyclable Materials, Organic Materials, and Refuse characterization studies periodically to support compliance or fulfillment of AB 939, SB 1383, or other Diversion goals or requirements. The Company agrees to participate and cooperate with the City and its agents and to accomplish such studies at no additional cost the City. The Company acknowledges that the City is required by SB 1383 to coordinate with the County and participate in Organic Waste and Edible Food Recovery capacity planning studies. The Company shall participate and/or provide information to the City as needed for the City’s participation in such capacity planning studies. This information and/or participation may include, but is not limited to: conducting or supporting waste characterization studies; providing information regarding existing and potential new or expanded capacity in the Company’s operations for the Collection, Transport, transfer, or Processing of Source Separated Recyclable Materials and Source Separated Organic Materials; and, any other information deemed necessary by the City or County for purposes of the study. The Company shall respond to requests for information or participation from the City within thirty (30) days, unless another timeframe is otherwise specified or authorized by the City. Page 423 City of Palm Desert Franchise Agreement City of Palm Desert 92 March 10, 2022 5.5 Other SB 1383 Company Requirements 5.5.1 Generator Waiver Program Coordination Generators may submit requests for de minimis waivers, and physical space waivers to the Company. Company shall, within ten (10) Workings Days, review the Generator’s waiver application and inspect the Generator’s Premises to verify the accuracy of the application. Company shall provide documentation of the inspection, including the Company’s recommendation to approve or deny the waiver request, and send this information to the City within thirty (30) days of receipt of the Generator’s waiver application for the City’s review and approval. The City ultimately retains the right to approve or deny any application, regardless of the Company’s recommendation. Company shall report information regarding waivers reviewed on a monthly basis, in accordance with Section 8.3.2.G In accordance with this Section 5.5.1, Company shall verify Commercial Generator de minimis and physical space constraint waivers, if applicable, at least once every five (5) years from the date of issuance of the waiver, and verify Collection frequency waivers at least frequent enough to comply with the SB 1383 Regulations. 5.5.2 Contamination Monitoring 5.5.2.1 Contamination Monitoring Procedures A. General. This Section presents contamination inspection method(s) to be used by the Company in conducting contamination monitoring required under Section 5.5.2. Company must implement the below method to meet the contamination monitoring requirements of this Section 5.5.2: B. Container Inspection Methods. 1. Waste Evaluation Monitoring by Company. Company shall, at its sole expense, conduct waste evaluations that comply with the requirements of this Section and meet the requirements of 14 CCR Section 18984.5(c). The City maintains the right to observe, or hire a third party to observe, the waste evaluations. Company shall, no later than January 15 of each calendar year, provide the City with a proposed waste evaluation methodology and a schedule of waste evaluations for the calendar year for review and approval by City. The City may request, and Company shall accept, modifications to the schedule to permit observation by the City or City’s third-party designee. In addition, Company shall provide an email notice to the City no less than ten (10) Working Days prior to each scheduled waste evaluation study that includes the specific time(s) and location(s) for the waste evaluation study. If Page 424 City of Palm Desert Franchise Agreement City of Palm Desert 93 March 10, 2022 City requests to attend a waste evaluation study, Company and City shall work together to schedule a time for City staff or designee to attend. C. Actions upon Identification of Prohibited Container Contaminants. 1. Record Keeping. The driver or other Company representative shall record each event of identification of Prohibited Container Contaminants in a written log or in the on-board computer system including date, time, Customer’s address, type of Container; and maintain photographic evidence, if required. Company shall submit this record to the Company’s Customer service department, and Company’s Customer service department shall update the Customer’s account record to note the event, if the documentation of the on- board computer system did not automatically update the Customer’s account record. 2. Identification of Excluded Waste. If Company’s personnel observe Excluded Waste in an uncollected Container, the Company’s personnel shall issue a non-Collection notice for this Container in accordance with Section 5.5.2.1.C.5 and shall not Collect the Discarded Materials that contain Excluded Waste. Company’s personnel shall record that observation and immediately inform their route supervisor. Company shall follow protocols specified this Section. The route supervisor shall investigate and initiate applicable action within one (1) Working Day or sooner if the Hazardous Waste may cause immediate danger. 3. Courtesy Pick-Up Notices. Upon identification of Prohibited Container Contaminants in a Customer’s Container, Company shall provide the Customer a courtesy pick-up notice. The courtesy pick-up notification shall: (i) inform the Customer of the observed presence of Prohibited Container Contaminants; (ii) include the date and time the Prohibited Container Contaminants were observed; (iii) include information on the Customer’s requirement to properly separate materials into the appropriate Containers, and the accepted and prohibited materials for Collection in the specified Container; (iv) inform the Customer of the courtesy pick-up of the contaminated materials on this occasion with information that following three (3) instances Company may assess contamination fees or issue a non- Collection notice; and, (v) shall include photographic evidence. Company shall leave the courtesy pick-up notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, subject to City’s approval, may deliver the notice by mail, e-mail, or text message. Company shall Collect the contaminated Container and Transport the Page 425 City of Palm Desert Franchise Agreement City of Palm Desert 94 March 10, 2022 material to the appropriate Approved Facility for Processing; or, Company may Collect the contaminated materials with Refuse Container and Transport the contaminated materials to the appropriate Approved Facility for Disposal or Processing. 4. Notice of Assessment of Contamination Processing Fees. If the Company observes twenty percent (20%) or more Prohibited Container Contaminants in a Generator’s Green Container or Blue Container on more than three (3) occasions in a three (3) month period and issued courtesy pick-up notices on each of those occasions, the Company may impose a contamination Processing fee of as listed in the approved rate schedule. Company shall notify the City in its monthly report of Customers for which contamination Processing fees were assessed. Company shall leave a contamination Processing fee notice attached to or adhered to the Generators’ contaminated Containers; at the Premises’ door or gate; or, subject to City’s approval, may deliver the notice by mail, e-mail or text message. The contamination Processing fee notice shall describe the specific material(s) of issue, explain how to correct future set outs, and indicate that the Customer will be charged a contamination Processing fee on its next bill. The format of the contamination Processing fee notice shall be approved by the City Agreement Manager. City may waive any contamination fees issued by Company. Company shall Collect the contaminated Container and Transport the material to the appropriate Approved Facility for Processing. To ensure that assessment of fees are to be used for the intended purposes and not as a form of revenue generation, Company agrees that Contamination fees shall not exceed one percent (1%) of Company’s Gross Receipts in any calendar quarter. In the event that Contamination fees exceed one percent (1%) of Company’s Gross Receipts in any calendar quarter, the assessment of Contamination fees shall be suspended immediately and indefinitely pending a program assessment by the City and Company. Upon program suspension or at the request of the City at any time during the Term of the Agreement, City and Company shall meet and confer regarding the application and effectiveness of Contamination fees in accomplishing the behavior change. If the program is suspended due to excessive revenue generation, the City may require Company to either: i) modify the program parameters; ii) modify the amount of the Contamination fee; or, iii) return to the City any funds generated by the Contamination fee which exceed one percent (1%) of Company’s Gross Receipts for a given period of time. Page 426 City of Palm Desert Franchise Agreement City of Palm Desert 95 March 10, 2022 5. Non-Collection Notices. Upon identification of Prohibited Container Contaminants in a Container in excess of standards agreed upon by the Parties or Excluded Waste, Company shall provide a non-Collection notice to the Generator. The non-Collection notice shall, at a minimum: (i) inform the Customer of the reason(s) for non-Collection; (ii) include the date and time the notice was left or issued; (iii) describe the premium charge to Customer for Company to return and Collect the Container after Customer removes the Contamination; and, (iv) provide a warning statement that a contamination Processing fee may be assessed if Prohibited Container Contaminations are observed on more than three (3) occasions. The non-Collection notice shall include photographic evidence of the violation(s). The Company’s notice of non-Collection may be left attached to or adhered to the Generator’s Container, or at the Premises’ door or gate at the time the violation occurs, or subject to City’s approval, may be delivered by mail, e- mail, or text message. Company shall submit a sample of its non-Collection notice to the City Manager or their designee for approval prior to implementing use of it with Customers. 6. Communications with Customer. Whenever a Container at the Premises of a Commercial or a Multi-Family Customer is not Collected, Company shall contact the Customer on the scheduled Collection day or within twenty-four (24) hours of the scheduled Collection day by telephone, email, text message, or other verbal or electronic message to explain why the Container was not Collected. Whenever a Container is not Collected because of Prohibited Container Contaminants, a Customer service representative shall contact the Customer to discuss, and encourage the Customer to adopt proper Discarded Materials preparation and separation procedures. 7. Company Return for Collection. Upon request from Customer, Company shall Collect Containers that received non-Collection notices within one (1) Working Day of Customer’s request if the request is made at least two (2) Working Days prior to the regularly scheduled Collection Day. Company shall bill Customer for the extra Collection service event (“extra pick-up”) at the applicable City-approved rates only if Company notifies Customer of the premium rate for this service at the time the request is made by Customer. D. Disposal of Contaminated Materials. If the Company observes visible Prohibited Container Contaminants in a Generator’s Organics Container or Recycling Page 427 City of Palm Desert Franchise Agreement City of Palm Desert 96 March 10, 2022 Container, Company may Dispose of the Container’s contents provided Company complies with the noticing requirements in Section 5.5.2.1.C.5 above. 5.5.2.2 Ongoing Contamination Monitoring Route Personnel Monitoring. Company shall assist on an ongoing basis in minimizing contamination by helping to educate Customers on acceptable and non-acceptable materials through ongoing education and outreach efforts and through on-going monitoring of the contents of Collection Containers. The ongoing Container monitoring shall be performed by Company using the method described in Section 5.5.2.1. 5.5.2.3 Company Ongoing Contamination Monitoring 5.5.2.3.1. Methodology and Frequency Commencing upon the effective date of this Agreement, Company shall, at its sole expense, conduct waste evaluations that comply with the requirements of this Section and meet the requirements of 14 CCR Section 18984.5(c). The City maintains the right to observe, or hire a third party to observe, the waste evaluation studies. The City may request and Company shall accept modifications to the schedule to permit observation by the City. In addition, Company shall provide an email notice to the City no less than ten (10) Working Days prior to each scheduled waste evaluation study that includes the specific time(s). If City requests to attend a waste evaluation study, Company and City shall work together to schedule a time for City staff or designee to attend. The Company shall conduct waste evaluation studies at least twice per year and the studies shall occur in two distinct seasons of the year. The waste evaluation studies shall include samples from each Container type served by the Company (i.e., Source Separated Recyclable Materials, Source Separated Organic Materials, and Solid Waste) and shall include samples taken from different areas in the City that are representative of the City’s waste stream. The study shall include a minimum of forty (40) samples per route. The Company shall Transport all of the material Collected for sampling to a sorting area at the Approved Facility, where the presence of Prohibited Container Contaminants for each Container type shall be measured to determine the ratio of Prohibited Container Contaminants present in each material stream by weight. To determine the ratio of Prohibited Container Contaminants, the Company shall use the following protocol: A. The Company shall take one sample of at least a 200 pounds from the material Collected from each material stream for sampling. For example, Company shall take a 200-pound sample taken from the combined contents of the Source Separated Organic Materials Container samples. Page 428 City of Palm Desert Franchise Agreement City of Palm Desert 97 March 10, 2022 B. The 200-pound sample shall be randomly selected from different areas of the pile of Collected material for that material stream. C. For each 200-pound sample, the Company shall remove any Prohibited Container Contaminants and determine the weight of Prohibited Container Contaminants. D. The Company shall determine the ratio of Prohibited Container Contaminants in the sample by dividing the total weight of Prohibited Container Contaminants by the total weight of the sample. E. All weights shall be recorded in pounds. F. The Facility, scales, and weighing process used for the study shall meet the standards of Section 8.4 of Exhibit 8. 5.5.2.3.2 Contamination Response If the sampled weight of Prohibited Container Contaminants exceeds twenty-five percent (25%) of the measured sample for any material stream, the Company shall notify the City within fifteen (15) Working Days of the waste evaluation. Company shall perform either of the following options if the weight exceeds the twenty-five percent (25%) weight threshold. Option 1: Within fifteen (15) Working Days of the waste evaluation, notify all Generators on the sampled hauler route of their requirement to properly separate materials into the appropriate Containers. The Company may provide this information by placing a written notice on the Generators’ Containers or the gate or door of the Premises; and/or by mailing, emailing, or texting the notice to the Generators. The format of the warning notice shall be approved by the City. Option 2: Within fifteen (15) Working Days of the waste evaluation, perform a targeted hauler route review of Containers on the hauler route sampled for waste composition studies to determine the sources of contamination and notify those Generators of their obligation to properly separate materials. The Company may provide this information to these Generators by placing a written notice on the Generators’ Containers or the gate or door of the Premises; and/or by mailing, e-mailing, or texting education notices to the applicable Generators. The format of the warning notice shall be approved by the City. 5.5.2.3.3. Noticing of Generators with Contamination, Non-Collection, and Disposal of Materials Upon finding Prohibited Container Contaminants in a Container, Company shall follow the contamination noticing procedures and contaminated Container handling protocols set forth in Sections 5.5.2.1.C. Page 429 City of Palm Desert Franchise Agreement City of Palm Desert 98 March 10, 2022 5.5.2.3.4. Monthly Reporting Requirements. Company shall maintain records and report to the City monthly on contamination monitoring activities and actions taken, in accordance with Article 8. 5.5.3 Inspection and Enforcement Company Performance of Compliance Reviews The Company shall complete a compliance review of all Multi-Family and Commercial Customers that generate two (2) cubic yards or more per week of Solid Waste, including Organic Waste to determine their compliance with: (i) Generator requirements under the City’s Discarded Materials Collection program; and, (ii) if applicable for the Generator, (if Self-Haul is allowed) Self-Hauling requirements pursuant to 14 CCR Section 18988.3, including whether a Commercial Business is complying through Back-Hauling Organic Materials. The compliance review shall mean a “desk” review of records to determine Customers’ compliance with the above requirements and does not necessarily require on- site observation of service; however, the City may request that the Company perform an on-site observation of service in addition to or in lieu of the desk review if needed to obtain the required information. a) Number of Reviews. The Company shall conduct a sufficient number of compliance reviews, Hauler Route reviews, and inspections of Generators, to adequately determine the Generators’ overall compliance with SB 1383, AB 1826, and AB 341. Company shall propose the number of reviews in total and/or for each review type and the timeframe to achieve regulatory compliance as part of the annual education plan. City reserves the right to require additional inspections, if the City determines that the amount of inspections conducted by the Company is insufficient. City may require the Company to prioritize inspections of entities that the City determines are more likely to be out of compliance. b) Non-Compliant Entities. From January 1, 2022 through December 31, 2023, when compliance reviews are performed by Company pursuant to Section 5.5.3, Company shall provide educational materials in response to violations. Company shall provide these educational materials to the non-compliant Customers and Generators within ten (10) Business Days of determination of non-compliance or immediately upon determination of non-compliance if such non-compliance is determined during an inspection or Hauler Route review. Company shall document the non-compliant Customers and Generators and the date and type of education materials provided, and report such information to the City in accordance with Section 8.3. Beginning January 1, 2024, the Company shall document non-compliant Customers and Generators determined through Page 430 City of Palm Desert Franchise Agreement City of Palm Desert 99 March 10, 2022 Company’s compliance reviews pursuant to Section 8.3, and shall report all Customers and Generators with SB 1383 violations to the City in accordance with Section 8.3. The City shall be responsible for subsequent enforcement action against the Generators. c) Documentation of Inspection Actions. The Company shall generate a written and/or electronic record and maintain documentation for each inspection, Hauler Route review, and compliance review conducted, including the information described Section 8.3. 5.6 Food Recovery Assistance Commencing January 1, 2022 and at least annually thereafter, Company shall cooperate with City and/or its consultants to conduct inspections of Tier One Commercial Edible Food Generators, Food Recovery Organizations, and Food Recovery Services to assess compliance with the requirements of 14 CCR Chapter 12 Article 10. Commencing January 1, 2024 and at least annually thereafter, Company shall expand its assistance to include Tier Two Commercial Edible Food Generators. At least annually, the Company shall provide Commercial Edible Food Generators with the following information: • Information about the County’s and/or City’s Edible Food Recovery program; • Information about the Commercial Edible Food Generator requirements under 14 CCR Chapter 12 Article 10; • Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and, • Information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste. • The Company may provide the information required by this Section by including it with regularly scheduled notices, newsletters, education materials, billing inserts, or other information disseminated to Commercial Businesses so long as the information above is distributed to the required entities at least once annually. • Company shall cooperate with the implementation, expansion, or operation of Food Recovery efforts in the City, Food Recovery Organizations, and/or Food Recovery Services. Page 431 City of Palm Desert Franchise Agreement City of Palm Desert 100 March 10, 2022 5.7 Universal Enrollment Monitoring Company shall assist the City in ensuring that the enrollment of Generators in the City’s Collection program occurs in a timely and efficient manner. In accordance with Section 8.3, Company shall maintain records and provide reports necessary for the City to verify the enrollment of Generators. At least one (1) time per year, Company shall reconcile and confirm universal enrollment of Generators by comparing its Customer list to parcel information and calculating the percentage of total Generators enrolled in City’s Collection program. As part of this analysis, Company shall provide the City with a summary of any discrepancies found between the Customer list and parcel information, including the names and addresses of all Generators that were found to be the subject of a discrepancy. Company shall also provide a list of Generators that are not enrolled in the City’s Collection program due to the provision and approval of a waiver pursuant to Section 5.5.1, including the name, address, and type of waiver for each Generator. In accordance with Section 8.3, Company shall maintain records and provide reports on the Generators’ service level and list of non-enrolled Generators, and other information necessary for the City to verify the universal enrollment of Generators. Page 432 City of Palm Desert Franchise Agreement City of Palm Desert 101 March 10, 2022 ARTICLE 6. COMPANY COMPENSATION AND RATES 6.1 General The Company Compensation provided for in this Article shall be the full, entire and complete compensation due to the Company pursuant to this Contract for all labor, equipment, materials and supplies, taxes, insurance, bonds, overhead, Processing, Disposal, transfer, profit and all other things necessary to perform all the services required and reasonably anticipated by this Agreement in the manner and at the times prescribed. The Company will perform the responsibilities and duties described in this Agreement in consideration of the right to receive compensation for services rendered at maximum rates fixed by the City from time-to-time. The City and the Company agree that the Company will retain any proceeds from the sale of Recyclable Materials and Organic Materials. 6.2 Rates The rates through June 30, 2023 shall not exceed those set forth in Exhibit 3, unless amended by a written amendment to this Agreement entered into by and between the City and the Company. Unless and until the rates set forth on Exhibit 3 are adjusted, the Company will provide the services required by this Agreement, charging no more than the rates authorized by Exhibit 3, except as provided herein and in Sections 6.3 and 6.5. 6.3 Schedule of Future Adjustments Subject to the limitations set forth in Section 6.4, beginning July 1, 2023 and for all subsequent Rate Years, the Company may request an annual adjustment to the rates shown in Exhibit 3. The Company shall submit its request in writing, to be received by the City in person or via certified mail, at least ninety (90) days prior to the start of the new Rate Year based on the method of adjustment described in Section 6.4. Failure to submit a written request at least ninety (90) days prior to the start of the new Rate Year shall result in the Company waiving the right to request such an increase for the new Rate Year. 6.4 Method of Adjustments 6.4.1 General Pursuant to Section 6.3, the Company may request an annual adjustment to the rates according to the method described below and the formulas shown in Exhibits 4A, 4B, and Page 433 City of Palm Desert Franchise Agreement City of Palm Desert 102 March 10, 2022 4C, subject to review and approval of the City. All future adjustments are to be effective July 1, and shall be based on the rates in Exhibit 3 and calculations in Exhibit 4. In addition, all other fees associated with other services shall be included within Exhibit 3 (e.g., locking Bin rate, Roll-off Box rate, temporary service rate, two-tiered C&D Debris rate). 6.4.1.1 Compliance with Proposition 218 If required by Applicable Law or if City voluntarily wishes to subject a rate increase to the procedural requirements of Proposition 218, all increases in the maximum rates shall be conditioned upon the successfully completion of the majority protest process, other applicable procedural requirements, and the absence of related legal challenges. The cost of all printing, copying and mailing notices related to such procedural requirements shall be Company’s sole responsibility. 6.4.1.2 Proposition 218 Protest Agreement Remedy In the event that Company is unable to increase the maximum rates due to the procedural requirements of Section 6.4.1.1, City and Company agree to negotiate in good faith, for a period not to exceed sixty (60) days, a reduction in services or other Agreement requirements that would offset the amount of the rate increase that would otherwise be paid to Company. In the event that City and Company cannot reach an agreement on revised terms, then Company may either: 1) accept that the rate will remain at the rates in effect prior to the requested rate increase, or 2) submit in writing to the City its intent to terminate the Agreement. A request to terminate the Agreement under this Section would require a two-year advance written notice and must be submitted within 90 days of the denial of the rate increase request. This right to terminate does not apply to rate adjustments requested under Section 6.5 or any other Section of this Agreement, or for any other reason other than requests under Section 6.3. 6.4.2 Residential and Commercial Rates Subject to the requirements of Sections 6.4.1.1 and 6.4.1.2, maximum rates shall be adjusted according to the following procedures except for Roll-off Box rates which shall be adjusted in accordance with Section 6.4.3. Example calculations are shown in Exhibit 4A for Residential rates and Exhibit 4B for Commercial rates. Step One – Determine the rate revenue net of City fees by deducting the City fees portion from actual gross rate revenues for the twelve-month period ending on the date six months prior to the effective date of the rate adjustment. Page 434 City of Palm Desert Franchise Agreement City of Palm Desert 103 March 10, 2022 Step Two – Determine the proportionate share of the Disposal fee component, and the service component of the rate revenue net of City fees. Step Three – Calculate the percentage change in the Garbage and Trash Collection Index (GTCI) in U.S. city average, all urban consumers, not seasonally adjusted (CUUR0000SEHG02) and the percent change in the Refuse Disposal tipping fee per ton. The change in the GTCI shall be for the twelve-month period ending six months prior to the effective date of the rate adjustment and the allowable portion used for the rate adjustment shall be equal to 100% of the change in the GTCI and capped at a 5% increase (Note: Change in GTCI in excess of 5% will not be carried over in the following year). The change in the Refuse Disposal tipping fee shall be based on the change between the most recent tipping fee on which rates are based and the new tipping fee; provided, however, if the Company owns the Disposal Site, the annual change in the Disposal tipping fee shall not exceed the annual change in the GTCI. Step Four – Calculate the weighted percent change in maximum rates by: 1. Multiplying the Refuse Disposal component as a percent of rate revenue net of City fees by the percent change in the Refuse Disposal tipping fee; 2. Multiplying the service component as a percent of rate revenue net of City fees by 100% of the percent change in the GTCI and capped at 5% (Note: Change in GTCI in excess of 5% shall not be carried over in following year); and, 3. Adding the results of 1 and 2 above to determine the weighted percent change in rates. Step Five – Multiply the current monthly rates by weighted rate adjustment percentage to determine the amount of the rate adjustment. 6.4.3 Roll-off Box and Other Services Rates Subject to the requirements of Sections 6.4.1.1 and 6.4.1.2, maximum load charges, delivery charges, overweight charges for Roll-off Box Customers, and other services shall be adjusted according to the following procedures and the example calculations shown in Exhibit 4C. Step One – Calculate the percent change in the GTCI for the twelve-month period for the most recent twelve months ending on the most recent Dec. 31. Multiply the percentage change in the GTCI by 100% and capped at 5% (Note: Change in GTCI in excess of 5% will not be carried over in the following year) to determine the rate adjustment percent change. Page 435 City of Palm Desert Franchise Agreement City of Palm Desert 104 March 10, 2022 Step Two – Multiply the rate adjustment percent change by current rates to determine the amount of the rate adjustment. 6.5 Extraordinary Adjustments Subject to the requirements of Sections 6.4.1.1 and 6.4.1.2, the Company or the City may request an adjustment to rates at reasonable times other than that required in Section 6.3 for unusual changes in the cost of providing service under this Agreement. Such changes may include changes in the scope of services, changes in components of the landfill tipping fee, changes in the Disposal Site requested by the City, and changes in State or local government Solid Waste fees and charges. Such changes shall not include changes in the market value of Recyclables, inaccurate estimates by the Company of its cost of operations, or change in wage rates or employee benefits. For each such request, the Company shall prepare a schedule documenting the extraordinary costs. Such request shall be prepared in a form acceptable to the City with support for assumptions made by the Company in preparing the estimate. Company shall also submit a schedule reporting its total costs and total Gross Receipts each year for the past three (3) years for the Collection and Transportation of Solid Waste pursuant to this Agreement. City shall make the final determination as to whether an adjustment to the maximum rates will be made, and, if an adjustment is permitted, the appropriate amount of the adjustment. Extraordinary rate adjustment shall only be effective after approval by the City Council and may not be applied retroactively. City shall render its decision within sixty (60) days of receipt of Company’s request which shall not be considered received unless and until all information required of this Section is submitted to City. City’s decision on Company’s request shall be based upon the reasonableness of Company’s analysis of the impact of the extraordinary costs prompting the request and on Company’s overall financial performance for its performance of this Agreement. 6.6 Supporting Information In the event the Company requests a rate adjustment on the basis of unusual changes or extraordinary increases or costs of doing business, the Company shall provide the City with documentation supporting its request. Additionally, if required by the City, the Company will also provide a copy of its certified annual financial statements prepared by a Certified Public Accountant or a licensed public accountant, which shall have been prepared in compliance with Rule 58 of the "Rules and Regulations of the State Board of Accountancy," as established by the California Code of Regulations, Title 16, Chapter I. Such Certified Public Accountant or licensed public accountant shall be entirely independent of the Company and shall have no financial interest whatsoever in the business of the Company. The City may specify the form and detail of the financial statements. Page 436 City of Palm Desert Franchise Agreement City of Palm Desert 105 March 10, 2022 6.7 Grants From time to time, Federal, State, or local agencies including the City may provide to the Company grants to assist in financing qualified programs provided by the Company. The Company agrees that the Company Compensation, calculated as described in Sections 6.2 through 6.5, shall be reduced by the amount of any such grant, unless the grant is used exclusively to pay for new services. The City Council shall determine whether the reduction in the Company Compensation shall be: (1) passed through to those Customers designated by the City as a reduction to their rates; (2) as an offset to a rate increase calculated in accordance with Sections 6.3 through 6.5; (3) paid to the City for use as the City directs; or, (4) applied in any combination of (1) through (3). 6.8 Annual Recycling Rebate The annual Recycling rebate will be calculated based on the formulas provided in Exhibit 10 using the Recyclable Materials revenue and tonnage from the prior calendar year. The Recycling calculations are due from the Company for review by the City by March 31, consistent with the regular rate adjustment of each calendar year. If the calculations in Exhibit 10 result in a credit, the rebate will be applied to both Residential and Commercial Customers. The Residential Customers billed on the tax roll will receive the rebate on the tax roll and Residential and Commercial Customers billed by Company will receive a credit on their August invoice for July services. 6.9 New Program Residential Rate Phase-In In an effort to reduce the initial rate impact to ratepayers, the Contractor shall receive the following compensation, in addition to the adjustment calculated in Section 6.4.2, as described below: • July 1, 2023, an additional three dollars and ninety-one cents ($3.91) per month added to the Residential basic service rates calculated • July 1, 2024, an additional two dollar and forty-three cents ($2.43) per month added to the Residential basic service rates calculated • July 1, 2025, an additional sixty-three cents ($0.63) per month added to the Residential basic service rates calculated Page 437 City of Palm Desert Franchise Agreement City of Palm Desert 106 March 10, 2022 6.10 Residential Basic Service Organics One-time Adjustments 6.10.1 Residential Tonnage Adjustment Effective on July 1, 2024, along with the annual adjustment calculated in Section 6.4, there will be a one-time adjustment to account for changes in actual versus projected amounts of Refuse and Organic Materials Residential tonnage volumes as described below and as shown in Exhibit 11: 1. If the actual Organic Materials weight in pounds per home in calendar year 2023 is higher or lower than the Company projected 14.8 pounds per home per week, each Residential Customer will receive a corresponding adjustment in their monthly rate calculated as shown in Exhibit 11. 2. If the reduction in actual Refuse Disposal weight in pounds per home in calendar year 2023 is higher or lower than the Company projected 9.51 pounds per week, each Residential Customer will receive a corresponding adjustment in their monthly rate calculated as shown in Exhibit 11. 6.10.2 Residential Collection Productivity Adjustment Effective on July 1, 2024, in collaboration with the annual adjustment calculated in Section 6.4, there will be a one-time adjustment to account for changes in the actual versus projected Residential Organic Materials Collection productivity. The amount of any such adjustment as calculated in Exhibit 11 will be included as part of the July 1, 2024 Residential Customer basic service rate adjustment. Page 438 City of Palm Desert Franchise Agreement City of Palm Desert 107 March 10, 2022 ARTICLE 7. REVIEW OF SERVICES AND PERFORMANCE 7.1 Performance Hearing The City may hold a public hearing on or about the two-year anniversary of the start of this Agreement, and annually thereafter, at which time the Company shall be present and shall participate, to review the Collection, source reduction, Processing, and other Diversion services and overall performance. The purpose of the hearing is to provide for a discussion and review of technological, economic, and regulatory changes in Collection, source reduction, Recycling, Processing, and Disposal to achieve a continuing, advanced Collection, source reduction, Recycling, Processing, and Disposal system; and to ensure services are being provided with adequate quality, effectiveness and economy. Forty-five (45) days after receiving notice from the City of a Franchise Services and Performance Review Hearing, the Company shall, at a minimum, submit a report to the City indicating the following: a) Changes recommended and/or new services to improve the City's ability to meet the goals of AB 939 and requirements of SB 1383 and to contain costs and minimize impacts on rates. b) Any specific plans for provision of changed or new services by the Company. c) A summary of its complaint logs and an assessment of problems reported in the past twelve (12) months. The reports required by this Agreement regarding Customer complaints shall be used as one basis for review. The Company may submit other relevant performance information and reports for consideration. The City may request the Company to submit specific information for the hearing. In addition, any Customer may submit comments or complaints during or before the hearing, either orally or in writing, and these shall be considered. Topics for discussion and review at the Franchise Services and Performance Review Hearing shall include, but shall not be limited to, services provided, feasibility of providing new services, application of new technologies, Customer complaints, amendments to this Agreement, developments in the law, new initiatives for meeting or exceeding AB 939's goals and SB 1383 Regulations, regulatory constraints, and the Company performance. The City and the Company may each select additional topics for discussion at any Franchise Services and Performance Review Hearing. Not later than sixty (60) days after the conclusion of each Franchise Services and Performance Review Hearing, the City may issue a report. As a result of the review, the Page 439 City of Palm Desert Franchise Agreement City of Palm Desert 108 March 10, 2022 City may require the Company to provide expanded or new services within a reasonable time and for reasonable rates and compensation and the City may direct or take corrective actions for any performance inadequacies. Page 440 City of Palm Desert Franchise Agreement City of Palm Desert 109 March 10, 2022 ARTICLE 8. RECORDS, REPORTS AND INFORMATION REQUIREMENTS 8.1 General The Company shall maintain such accounting, statistical and other records related to its performance under this Agreement as shall be necessary to develop the financial statements and other reports required by this Agreement. Also, the Company agrees to conduct data collection, information and record keeping, and reporting activities needed to comply with Applicable Laws and regulation and to meet the reporting and Solid Waste program management needs of the City. To this extent, such requirements set out in this and other Articles of this Agreement shall not be considered limiting or necessarily complete. In particular, this Article is intended to only highlight the general nature of records and reports and is not meant to define exactly what the records and reports are to be and their content. Further, with the written direction or approval of the City, the records and reports to be maintained and provided by the Company in accordance with this and other Articles of the Agreement shall be adjusted in number, format, or frequency. 8.2 Records 8.2.1 General The Company shall maintain records required to conduct its operations, to support requests it may make to the City, and to respond to requests from the City in the conduct of the City business. Adequate record security shall be maintained to preserve records from events that can be reasonably anticipated such as a fire, theft and earthquake. Electronically maintained data/records shall be protected and backed up. All records shall be maintained for three (3) years after the expiration of this Agreement. The Company agrees that the records of any and all companies conducting operations addressed in the Agreement shall be provided or made available to the City and its official representatives during normal business hours. The City may review or utilize any of the records described in this Section for any purpose whatsoever. 8.2.2 Financial Records Financial records shall be maintained and expense and revenue information for the City shall be segregated from other areas served by the Company. Page 441 City of Palm Desert Franchise Agreement City of Palm Desert 110 March 10, 2022 8.2.3 Solid Waste, Recycling, and Organic Materials Service Records Records shall be maintained by the Company for the City relating to: • Customer services and billing; • Routes; • Facilities, equipment and personnel used; • Complaints; • Missed pick ups; • Number of Refuse, Recycling, and Organic Materials Carts; and • Tons Collected, Processed, Diverted, and Disposed by type of service (Cart, Bin, Can, or Roll-off Box), Discarded Materials stream (Refuse, Recycling, Organic Materials) and Customer (Residential and Commercial). 8.2.4 CERCLA Defense Records The City views the ability to defend against the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and related litigation as a matter of great importance. For this reason, the City regards the ability to prove where Solid Waste Collected in the City was taken for Disposal, as well as where it was not taken, to be matters of concern. The Company shall maintain data retention and preservation systems which can establish where Solid Waste Collected in the City was landfilled (and therefore establish where it was not landfilled) and provide a copy of the reports required in Section 8.3 for five (5) years after the Term during which Collection services are to be provided pursuant to this Agreement, or to provide copies of such records to the City. The Company agrees to notify the City’s Risk Manager and the City Attorney at least ninety (90) days before destroying such records. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. 8.2.5 Disposal Records The Company shall maintain records of all Solid Waste Collected, Processed, recovered and Disposed in the City for the period of this Agreement and all extensions to this Agreement or successor Agreements. In the event the Company discontinues providing Solid Waste services to the City, the Company shall provide all records of Disposal or Processing of all Solid Waste Collected in the City within thirty (30) days of discontinuing service. Records shall be in chronological and organized form and readily and easily interpreted. Page 442 City of Palm Desert Franchise Agreement City of Palm Desert 111 March 10, 2022 8.2.6 Other Programs' Records Records for other programs shall be tailored to specific needs. In general, they shall include: a) Plans, tasks, and milestones; and, b) Accomplishments in terms such as dates, activities conducted, quantities of products used, produced or distributed, and numbers of participants and responses. 8.2.7 Scope and Cost of Audit City may conduct an audit of Company every three (3) years. Company to reimburse for audit up to fifty thousand dollars ($50,000). This amount in subsequent years shall be increased based on the Garbage and Trash Collection Index (GTCI) in U.S city average for all urban consumers as calculated in Section 6.4. The scope of the audit, and auditing party, will be determined by City and the scope may include, but is not limited to, Company revenue, expenses, and methodology of Franchise Fee allocation The scope of the audit, and auditing party, will be determined by City and the scope may include, but not limited to, compliance with terms of this Agreement, Customer service levels and billing, fee payments, Gross Receipts, tonnage, and verification of Diversion rate. Company will provide the necessary details support for the allocation of costs to the various services areas and between the local jurisdictions. 8.2.8 Payments and Refunds Should an audit by the City disclose that the Franchise Fees, Recycling Fees, or other fees, if any, payable by the Company were underpaid or that Customers were overcharged for the period under review, the Company shall pay to the City any underpayment of Franchise Fees and/or Recycling Fees and/or refund to the Company's Customers any overcharges. Undercharges may not be retroactively billed more than three months in arrears. Should an audit disclose that Franchise Fees and/or Recycling Fees were over paid, the City shall promptly refund to the Company the amount of the overpayment. Any refunds to be made by either Party shall be due and payable thirty (30) days following the date of the audit. Page 443 City of Palm Desert Franchise Agreement City of Palm Desert 112 March 10, 2022 8.3 Reports 8.3.1 Report Formats and Schedule Records shall be maintained in forms and by methods that facilitate flexible use of data contained in them to structure reports, as needed. Reports are intended to compile recorded data into useful forms of information that can be used to, among other things: a) Determine and set rates and evaluate the efficiency of operations; b) Evaluate past and expected progress towards achieving AB 939, AB 1826, AB 341, and SB 1383 goals and objectives compliance requirements; c) Determine needs for adjustment to programs; and, d) Evaluate Customer service and complaints. The Company may propose report formats that are responsive to the objectives and audiences for each report. The format of each report shall be approved by the City and the City reserves the right to adjust, modify, or request additional reports as reasonably necessary or required by CalRecycle. The Company agrees to submit all reports on computer discs or by electronic means in a format compatible with the City’s software/computers at no additional charge, if requested by the City. The Company will provide a certification statement by an authorized Company official that the report being submitted is true and correct. Monthly reports shall be submitted within twenty (20) calendar days after the end of each month unless otherwise noted below. If requested, the Company’s complaint summary, described in Section 8.3.2.F below, shall be sent to the City Manager within five (5) days of request. Annual reports shall be submitted before January 31 following the reporting year. All reports shall be submitted to: City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 8.3.2 Monthly Reports Monthly reports shall be submitted by Company to City and shall include the following information pertaining to the most recently completed calendar month. In addition, each monthly report shall include a year-to-date summary page that includes the data submitted from the monthly report(s) submitted in the calendar year prior to the Page 444 City of Palm Desert Franchise Agreement City of Palm Desert 113 March 10, 2022 submittal of the current monthly report. Company shall report the information included in the following Subsections. The information listed shall be the minimum reported: The information listed shall be the minimum reported: A. Gross receipts for the month by sector (Residential, Commercial, Roll-off). B. The following information shall be included in the reports: 1. Warning notices issued during the reporting month for Containers with Prohibited Container Contaminants. 2. Quantity of Recyclable Materials recovered by material type, as well as quantity of material Diverted from landfills in compliance with Applicable Law or the reporting month; 3. Description of Company outreach activities and copies of promotional and public education materials sent during the reporting month. C. Tonnage Report 1. Company shall report the total quantities in tons of Discarded Materials Collected, transferred, Processed, and Disposed by the Company, all of which shall be based on actual certified scale weights for each load, if available, or similarly accurate methodology pursuant to weighing protocols in Section 8.4 of Exhibit 8. Tonnage shall be reported separately by: a. Material type, which shall include, at a minimum, separate reporting of Source Separated Recyclable Materials, Source Separated Organic Materials, Gray Container Waste, and any other type of Discarded Material separately Collected by Company (including, but not limited to: Bulky Items, used oil, mixed C&D Materials, dirt, rock, metals, cardboard, wood waste, reusable items, salvageable materials, etc.); b. Customer/sector type (Single Family Dwelling, Multi-Family Dwelling, Commercial, Roll-off, C&D Debris). Multi-Family Dwellings and Commercial Containers that are Collected on the same route may have tonnage allocated based on Container capacity; and, c. Approved Facility and Facility type. 2. Report Residue level and tonnage for all Discarded Materials Processed, listed separately by material type Collected and Approved Facility(ies) used. Page 445 City of Palm Desert Franchise Agreement City of Palm Desert 114 March 10, 2022 3. Source Separated Recyclable Materials tonnage marketed, by commodity, and including average commodity value for each, and Processing residue tonnage Disposed, listed separately by material type Collected and Approved Facility(ies) used. 4. Documentation of all Discarded Materials exported out of State, as provided in 14 CCR Sections 18800 through 18813. 5. Tonnage Collected by month separately for each C&D project site and other data as it relates to the C&D Debris services described in this Agreement. 6. Recyclables commodity Diversion report to show what is currently being Diverted through Processing. This report shall be submitted within thirty (30) calendar days after the end of each month. D. Collection and Subscription Report 1. Number of Containers at each service level by Customer type and program, including: a. A summary of the total gallons of Cart service, cubic yards of Bin Service, and pulls; and cubic yards or tons of Roll-off Box and compactor service by Customer type. b. Calculation of the average volume of service received per: Residential Premises (separately identifying dwelling units in a duplex, triplex, or fourplex); Multi-Family Dwelling unit; and Commercial Customer. 2. A summary of Customer subscription data, including the number of accounts; the number of Customers subscribing to each Cart, Bin, and Roll-off service level listed separately for Single Family Dwelling, Multi-Family Dwelling, and Commercial and separately for each type of Discarded Material; and the number of Bulky Items Collections performed. 3. Documentation of the universal service enrollment process including a copy of the City-wide Generator enrollment level evaluation conducted pursuant to Section 5.8 of this Agreement. 4. List of all Commercial and Multi-Family Dwelling Customers with a Solid Waste service level of two (2) cubic yards of service capacity per week or more. Such list shall include each such Customer’s service address and Gray Page 446 City of Palm Desert Franchise Agreement City of Palm Desert 115 March 10, 2022 Container Waste, Source Separated Recyclable Materials, and Source Separated Organic Materials Service Levels. 5. The total number of de minimis waivers, and physical space constraint waivers granted in the month, including the Generator name and address for each waiver. 6. The number of waiver reverifications performed by the Company pursuant to Section 5.5.1 of this Agreement in the month, if any, including a copy of documentation for each reverification inspection, which shall include, at a minimum: the Generator’s name, address, and Generator type; the type of waiver being verified; any photographic or other evidence collected during the inspection; and the resulting recommended conclusion by the Company regarding the validity of the waiver. The Company shall provide a summary of recommendations to the City of all waivers which the Company concludes to no longer be warranted. 7. Number of Bulky Item/reusable materials Collection events by Customer type. E. Contamination Monitoring Report Waste Evaluation Studies (Section 5.5.2.3) The Company shall submit the following information regarding waste evaluation studies conducted pursuant to Section 5.5.2.3 of this Agreement: 1. A description of the Company’s process for conducting waste evaluations. 2. Documentation of the results of the waste evaluation studies and the number of resulting targeted Company route reviews. The documentation shall at a minimum include: dates of the studies; the location of the Facility where the study was performed; Company routes from which samples were Collected, and number of Generators on those Company routes; the source sector (Customer type) of the material (Single Family Dwelling, Multi-Family Dwelling, or Commercial); number of samples collected; total sample size (in pounds); weight of Prohibited Container Contaminants (in pounds); ratio of Prohibited Container Contaminants to total sample size; and, any photographic documentation taken or other physical evidence gathered during the process. 3. Copies of all notices issued to Generators that have Prohibited Container Page 447 City of Palm Desert Franchise Agreement City of Palm Desert 116 March 10, 2022 Contaminants. 4. Documentation of the number of loads or Containers Disposed of due to observation of Prohibited Container Contaminants, including the estimated weight based on Container size of material Disposed. 5. Any other information reasonably requested by the City, or specified in contamination monitoring provisions of this Agreement. F. Customer Service Report 1. Number of Customer calls separated by category (e.g., missed pickups, scheduled cleanups, billing concerns, damage claims). These complaints shall be documented and reported separately from SB 1383 noncompliance complaints or other regulatory noncompliance complaints. 2. Number of missed or incomplete Collections reported in total, and per one thousand (1,000) Service Opportunities in the City, presented in a graph format, which compares total missed Collections in the City during the current report period to total missed Collections in the City in past reporting periods. 3. Number of new service requests for each Customer type and requested service(s). 4. Company shall maintain a record of all SB 1383 noncompliance complaints and resolutions pursuant to Section 5.2.4 of this Agreement and submit the following information: a. Total number of complaints received and total number of complaints investigated b. Copies of documentation recorded for each complaint received, which shall at a minimum include the following information: i. The complaint as received; ii. The name and contact information of the complainant, if the complaint is not submitted anonymously; iii. The identity of the alleged violator, if known; Page 448 City of Palm Desert Franchise Agreement City of Palm Desert 117 March 10, 2022 iv. A description of the alleged violation, including location(s) and all other relevant facts known to the complainant; v. Any relevant photographic or documentary evidence submitted to support the allegations in the complaint; and, vi. The identity of any witnesses, if known. c. Copies of all complaint reports submitted to the City, pursuant to Section 5.2.2 of this Agreement. d. Copies of all investigation reports submitted to the City pursuant to Section 5.2.5 of this Agreement, which shall include at a minimum: i. The complaint as received; ii. The date the Company investigated the complaint; iii. Documentation of the findings of the investigation; iv. Any photographic or other evidence collected during the investigation; and, v. Company’s recommendation to the City on whether or not the entity investigated is in violation of SB 1383 based on the Company’s investigation. G. Generator Waivers Company shall provide a report that documents each Generator waiver request reviewed by Company, which are required by Section 5.5.1 Identify in the report the Generator name and service address, the type of waiver requested, the status of the waiver (accepted, denied, pending), and other information reasonably requested by the City. H. Education Program Report The monthly status of activities identified in the public education plan described in Section 5.3 of this Agreement. I. Discarded Materials Evaluation Reports In accordance with Section 8.1 of Exhibit 8, Company shall provide reports of evaluations of Discarded Materials conducted at Approved Facilities. Page 449 City of Palm Desert Franchise Agreement City of Palm Desert 118 March 10, 2022 8.3.3 Annual Report A. In addition to the monthly reporting requirements in Section 8.3.2, the Company shall provide an “Annual Report,” covering the most recently completed Calendar Year. The Annual Report shall include the information in the following Subsections: B. The Annual Report is to be essentially in the form and content of the monthly reports, but shall also include: 1. A summary of the number of Containers in service as of December 31 by size (number of gallons, number of yards), sector (Residential, Commercial, Roll- off), service frequency, and type of service (Refuse, Recycling, Yard Waste). 2. An account list of all Master-Billed Residential accounts, including homeowner association name, service address, billing address, number of units, services provided (Refuse, Recycling, Organic Materials), Container location (curbside, in-ground, backyard), Collection method (manual or automated), and monthly rates. 3. A complete inventory of vehicles used to provide all services, including make, year, type, fuel used, use, and California license number. 4. Number of routes and route hours per day by type of service as of December 31. 5. CERCLA Defense records required under Section 8.2.4. 6. Other information or reports that City may reasonably request or require. C. Company shall provide the following information in the annual report: 1. Collection and Subscription Report a. A summary of all data provided in the tonnage report section, including monthly and annual totals. b. The type(s) of Collection service(s) provided, a list of all hauler routes serviced, and a record of the addresses served on each hauler route. c. A summary of Customer subscription data, including the number of accounts; the total number of Generators enrolled with Company for Page 450 City of Palm Desert Franchise Agreement City of Palm Desert 119 March 10, 2022 service, listed separately by service level and Container type (Cart, Bin, and Roll-off service), separately by Residential, Multi-Family Dwelling, and Commercial Customers, and separately for each type of Discarded Material; and the number of Bulky Items Collections performed. d. A detailed list of Residential, Multi-Family Dwelling, and Commercial Customer information, including Gray Container Waste, Source Separated Recyclable Materials, and Source Separated Organic Materials service levels, Customer type, and Customer service addresses reflecting Customer service levels as of June 30 (for the year in which the report is submitted) e. The number of C&D Debris Collection sites served and tonnage Collected, tonnage Diverted, and Diversion level for each C&D Debris Collection site. 2. Processing Facility Report a. Temporary Equipment or Operations Failure: If the Company is granted a Processing Facility temporary equipment or operational failure waiver, in accordance with Section 4.9.1 of the Agreement, the Company shall include the following documents and information: i. The number of days the Processing Facility temporary equipment waiver or operation failure waiver was in effect; ii. Copies of any notifications sent to the City pursuant to Section 4.9.1.A of the Agreement, and copies of City notices to Company pursuant to Section 4.9.1.B of the Agreement; iii. Documentation setting forth the date of issuance of the waiver, the timeframe for the waiver; and, iv. A record of the tons of Source Separated Recyclable Materials, Source Separated Organic Materials, and/or Gray Container Waste redirected to an Alternative Facility or Disposed at an Approved Disposal Facility as a result of the waiver, recorded by Collection vehicle or transfer vehicle number/load, date, and weight. b. Quarantined Organic Waste: A record of all compliance agreements or other documentation for quarantined Organic Waste that are Disposed of, including the name of Generator, date issued, location of final disposition, and the amount of quarantined Organic Waste that was Page 451 City of Palm Desert Franchise Agreement City of Palm Desert 120 March 10, 2022 required to be Disposed at a landfill. c. Compostable Plastics in Green Containers: Written notification that the Approved Organic Waste Processing Facility(ies), only if applicable, has and will continue to have the capabilities to Process and recover the Compostable Plastics included with the Source Separated Organic Materials Transported to the Approved Organic Waste Processing Facility. This is not required if the Approved Organic Waste Processing Facility(ies) do not accept Compostable Plastics, but is required if at any point during the Term of the Agreement any of the Approved Organic Waste Processing Facility(ies) can Process and recover Compostable Plastics. d. Plastic Bags in Green Containers: Written notification to the City that the Approved Organic Waste Processing Facility has and will continue to have the capabilities to Process and recover plastic bags when it recovers Source Separated Organic Materials. 3. Public Education and Outreach Report a. A copy of all education and outreach materials provided to Generators, or otherwise used for education and outreach efforts in accordance with Section 5.3 of the Agreement, including, but not limited to: flyers, brochures, newsletters, invoice messaging/billing inserts, and website and social media postings. b. A record of the date and to whom the information was disseminated or direct contact made, in the form of a list that includes: the Generator's name or account name, the type of education or outreach received; the distribution date, and the method of distribution. c. The number of Organic Waste Generators and Commercial Edible Food Generators that received information and the type of education and outreach used. d. For any mass distribution through mailings or Bill inserts, the Company shall maintain a record of the date, a copy of the information distributed, and the type and number of accounts that received the information. e. A copy of electronic media, including the dates posted of: social media posts, e-mail communications, or other electronic messages. f. Company shall maintain a record of all technical assistance efforts conducted pursuant to the Agreement, including: Page 452 City of Palm Desert Franchise Agreement City of Palm Desert 121 March 10, 2022 i. The name and address of the Customer/Generator receiving technical assistance, and account number, if applicable. ii. The date of any technical assistance conducted and the type of technical assistance, including, but not limited to: site visits, waste assessments, compliance assessments, direct outreach, workshops, meetings, events, and follow-up communications. iii. A copy of any written or electronic educational materials distributed during the technical assistance process. g. A copy of all special event reports. 4. Compliance Monitoring and Enforcement Report a. A summary of the total number of SB 1383 non-compliance complaints that were received and investigated, and the findings based on investigation of those complaints, in accordance with Section 5.2.5 and Section 8.3.2.F of the Agreement. b. The number of inspections conducted by type for Commercial Edible Food Generators, Food Recovery Organizations, Food Recovery Services, and Commercial businesses. c. A copy of written and/or electronic records and documentation for all audits, studies, compliance reviews, and all other inspections conducted pursuant to Section 5.5 of the Agreement. d. The number of Commercial businesses that were included in a compliance review performed by the Company, and the number of violations found and corrected through compliance reviews, if different from the number reported in Subsection 4.f. of this Section; including a list with each Generator's name or account name, address, and Generator type. f. The number of enforcement actions that were resolved, categorized by type of Generator. g. Copies of all written notices, violations, educational materials, or other enforcement mechanisms issued to noncompliant Generators. 5. Food Recovery Program Support a. The total number of Generators classified as Tier One and Tier Two Page 453 City of Palm Desert Franchise Agreement City of Palm Desert 122 March 10, 2022 Commercial Edible Food Generators located within the City. b. The number of Food Recovery Services and Food Recovery Organizations located and operating within the City that contract or have written agreements with Commercial Edible Food Generators for Food Recovery, if known. c. The number of Generators participating in the Edible Food Recovery program, as described in Section 5.6 of the Agreement. 6. Vehicle and Equipment Inventory a. A list of all vehicles used in performing services under this Agreement including the license plate number, VIN, make, model, model year, and fuel type (e.g., CNG or RNG). b. If applicable, the name, physical location, and contact information of each entity, operation, or Facility from whom the RNG was procured. c. If applicable, the total amount of RNG procured by the Company for use in Company vehicles, in diesel gallon equivalents (DGE), including copies of any receipts, invoices, or other similar documentation evidencing procurement. In addition to the amount procured, Company shall include the total amount actually used in Company vehicles in the calendar year, if these values are different. 7. Customer Revenue and City Fee Payment Report. Provide a statement detailing Gross Revenue from all operations conducted or permitted pursuant to this Agreement and report of all City fees paid in accordance with Article 3 of this Agreement. 8.3.4 CalRecycle Annual Electronic Report and SB 1383 Annual Report Company shall prepare an initial draft of the CalRecycle Electronic Annual Report and SB 1383 Annual Report (if not included as part of the CalRecycle Electronic Annual Report) for City review no later than forty-five (45) days before the due date for such reports by CalRecycle. Upon completion of City review, Company will then update and provide additional information as needed. City is responsible for final submittal of the Electronic Annual Report and SB 1383 Annual Report. Page 454 City of Palm Desert Franchise Agreement City of Palm Desert 123 March 10, 2022 8.3.5 Financial Report The City may, at the City’s option, request the Company's annual audited financial reports/statements for the most recently completed fiscal year. Company shall have the audited financial reports/statements be made available for City review. Financial statements shall include a supplemental combining schedule showing the Company's results of operations, including the specific revenues and expenses in connection with the operations provided for in this Agreement, separated from others included in such financial statements. The financial statements and footnotes shall be prepared in accordance with Generally Accepted Accounting Principles (GAAP) and audited, in accordance with Generally Accepted Auditing Standards (GAAS) by a certified public accountant (CPA) licensed (in good standing) to practice public accounting in the State of California as determined by the State of California Department of Consumer Affairs Board of Accountancy. The cost for preparation of the financial statements and audit shall be borne by the Company as a direct cost of service. In addition, the Company shall provide to the City the supplemental schedule on a compiled basis. The Company shall, in its agreement with the CPA preparing the audit above, have its CPA make available to the City (or the City's designated representative) for review such CPA's working papers related to the audit. The cost, if any, incurred by the Company's CPA shall be included in the cost of the audit. At the City's request, the Company shall make available for review the City the working papers or other documentation deemed relevant by the City relating to information shown in the disclosure letter. The disclosure letter shall be provided to the City. 8.4 Adverse Information A. Reporting Adverse Information. The Company shall provide the City two copies (one to the City Manager , and one to the City Attorney) of all reports, pleadings, applications, notifications, Notices of Violation, communications or other material relating specifically to the Company’s performance of services pursuant to this Agreement, submitted by the Company to, or received by the Company from, the United States or California Environmental Protection Agency, the California Integrated Waste Management Board, the Securities and Exchange Commission or any other federal, State or local agency, including any federal or State court. Copies shall be submitted to the City simultaneously with the Company’s filing or submission of such matters with said agencies. The Company’s routine correspondence to said agencies need not be routinely submitted to the City, but shall be made available to the City promptly upon the City’s written request. Page 455 City of Palm Desert Franchise Agreement City of Palm Desert 124 March 10, 2022 B. Failure to Report. The refusal or failure of the Company to file any required reports, or to provide required information to the City, or the inclusion of any materially false or misleading statement or representation by the Company in such report shall be deemed a material breach of the Agreement as described in Section 11.1 and shall subject the Company to all remedies which are available to the City under the Agreement or otherwise. 8.5 Right to Inspect Records The City shall have the right to inspect the Company’s internal documents or records that are required expressly or by inference pursuant to this Agreement, or any other documents or records of the Company or its related Party entities that the City shall deem, in its sole discretion, necessary to evaluate the Company's performance provided for in this Agreement. Page 456 City of Palm Desert Franchise Agreement City of Palm Desert 125 March 10, 2022 ARTICLE 9. INDEMNIFICATION, INSURANCE AND BOND 9.1 Indemnification To the maximum extent permitted by law, the Company hereby agrees to and shall indemnify and hold harmless the City, its elected and appointed boards, commissions, officers, employees, and agents (collectively, Indemnitees) from and against any and all loss, liability, penalty, forfeiture, claim, demand, action, proceeding or suit in law or equity of any and every kind and description (including, but not limited to, injury to and death of any Person and damage to property, or for contribution or indemnity claimed by third parties) arising or resulting from and in any way connected with (1) the negligence or willful misconduct of the Company, its officers, employees, agents, Companies and/or Subcontractors in performing services under this Contract; (2) the failure of the Company, its officers, employees, agents, Companies and/or subcontractors to comply in all respects with the provisions of this Agreement, Applicable Laws (including, without limitation, the Environmental Laws), ordinances and regulations, and/or applicable permits and licenses; (3) the acts of the Company, its officers, employees, agents, Companies and/or subcontractors in performing services under this Agreement ; and (4) any challenge to the award of, or any provisions of this Agreement (including any claim that the application of any provision hereof violates any provision of the California Constitution). The Company further agrees to and shall, upon demand of the City, at the Company's sole cost and expense, defend (with attorneys acceptable to the City) the Indemnitees against any claims, actions, suits in law or equity or other proceedings, whether judicial, quasi-judicial or administrative in nature, arising or resulting from any of the aforementioned events. The Company, upon demand of the City, made by and through the City Attorney, shall protect the City and appear in and defend the Indemnitees, in any claims or actions by third parties, whether judicial, administrative or otherwise, including, but not limited to disputes and litigation over the definitions of “Solid Waste”, “Recyclable Material”, or “Organic Materials” or the limits of the City’s authority with respect to the grant of licenses, or agreements, exclusive or otherwise, asserting rights under the Dormant Commerce Clause or federal or State laws to provide Solid Waste services in the City. This provision shall survive the expiration of the period during which Collection services are to be provided under this Agreement. The City and the Company agree to confer following any trial to decide jointly whether to appeal or to oppose any appeal. In the event the City and the Company jointly agree to appeal, or to oppose any appeal, the City and the Company agree to share equally the costs of appeals. Should either the City or the Company decide to appeal, or to oppose an appeal, and the other decide not to appeal, Page 457 City of Palm Desert Franchise Agreement City of Palm Desert 126 March 10, 2022 or to oppose an appeal, the Party which decides to appeal, or to oppose an appeal, shall bear all fees and costs of the appeal or the opposition to the appeal. The Company's duty to indemnify and defend from the aforementioned events arising during the Term of the Agreement and as it may be extended shall survive the expiration or earlier termination of this Agreement. 9.2 Hazardous Substances Indemnification A. Without regard to any insurance coverage or requirements, and without limiting the above general indemnification obligation in any way, Company specifically agrees to and shall, to the maximum extent permitted by law, defend (with counsel acceptable to City), reimburse, indemnify, and hold harmless Indemnities from and against any and all claims, actions, liabilities, damages, demands, judgments, losses, costs, liens, expenses, suits, actions, attorneys' fees, consultant fees, penalties and any and all other losses, damages, fees and expenses of whatever kind or nature ("Claims") (including but not limited to response costs, investigative costs, assessment costs, monitoring costs, treatment costs, cleanup costs, removal costs, remediation costs, and similar costs, damages and expenses) that arise out of or are alleged to arise out of or in any way relate to any action, inaction or omission of Company that: 1. Results in any demand, claim, notice, order, or lawsuit, asserting that any Indemnitee is liable, responsible or in any way obligated to investigate, assess, monitor, study, test, treat, remove, remediate, or otherwise cleanup, any Hazardous Contaminant (as defined herein); or 2. Relates to material Collected, Transported, Recycled, Processed, treated, or Disposed of by Company. B. Company’s obligations pursuant to this Section shall apply, without limitation, to: 1. Any Claims brought pursuant to or based on the provisions of any Environmental Law; 2. Any Claims based on or arising out of or alleged to be arising out of the ownership, use, lease, sale, design, construction, maintenance or operation of Company of any Facility; 3. Any Claims based on or arising out of or alleged to be arising out of the marketing, sale, distribution, storage, Transportation, Disposal, Processing, or use of any materials recovered by Company; Page 458 City of Palm Desert Franchise Agreement City of Palm Desert 127 March 10, 2022 4. Any Claims based on or arising out of or alleged to be arising out of any breach of any express or implied warranty, representation or covenant arising out of or in connection with this Agreement. C. The foregoing indemnity and defense obligations shall apply irrespective of the negligence or willful misconduct of Company or any Affiliate of Company. D. For purposes of this Section, the term "Hazardous Contaminant" shall mean any Hazardous Substance, any Hazardous Waste any crude oil or refined or unrefined petroleum product or any fraction or derivative thereof; and any asbestos or asbestos-containing material. The term "Hazardous Contaminant" shall also include any and all amendments to any referenced statutory or regulatory provisions made before or after the date of execution of this Agreement. E. THE PROVISIONS OF THIS SECTION SHALL NOT TERMINATE OR EXPIRE AND SHALL BE GIVEN THE BROADEST POSSIBLE INTERPRETATION AND SHALL SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF THIS AGREEMENT. 9.3 CalRecycle Indemnification and Guarantee To the extent authorized by law, Company’s duty to defend and indemnify herein includes payment of all fines and/or penalties imposed by CalRecycle, subject to the restrictions set forth in Public Resources Code Section 40059.1, if the requirements of Applicable Law, including AB 939, AB 341, AB 1826, and/or SB 1383, are not met by the Company or City with respect to the Discarded Materials Collected under this Agreement, and such failure is: (i) due to the failure of Company to meet its obligations under this Agreement, or, (ii) due to Company delays in providing information that prevents Company or City from submitting reports required by AB 939, AB 341, AB 1826, and/or SB 1383 in a timely manner. The provisions of this Section shall survive the termination or expiration of this Agreement. 9.4 Insurance Company shall not commence work under this Agreement until it has provided evidence satisfactory to the City of Palm Desert that it has secured all insurance required under this Section. In addition, Company shall not allow any subcontractor(s), consultant(s), or any other party providing services under this Agreement to commence work until it has provided evidence satisfactory to the City that such parties have secured all insurance required under this Section. Without limiting Company’s indemnification of the City of Palm Desert, and prior to commencement of Work, Company shall obtain, provide and maintain at its own expense Page 459 City of Palm Desert Franchise Agreement City of Palm Desert 128 March 10, 2022 during the Term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to the City. General Liability Insurance: Company 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 $5,000,000 per occurrence, $10,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Defense costs shall be paid in addition to the limits. The policy shall contain no endorsements or provisions limiting coverage for contractual liability. The limits required may be satisfied by a combination of general liability and umbrella/excess insurance. Products/completed operations coverage shall extend a minimum of three 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 specifically provide for a duty to defend on the part of the insurer. The City of Palm Desert, its officers, officials, employees, agents, and volunteers shall be included as additional insureds under the policy. Automobile Liability Insurance: Company shall maintain commercial automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Company 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 $5,000,000 combined single limit for each accident. The limits required may be satisfied by a combination of auto liability and umbrella/excess insurance. Workers’ Compensation Insurance: Company shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Company shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City of Palm Desert, its officers, agents, employees and volunteers. Pollution Liability Insurance: Environmental Impairment Liability Insurance shall be written on a Transportation Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $6,000,000 dollars per claim and $6,000,000 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 Collection site to the final Disposal location, including non-owned Disposal Sites. The policy shall contain no endorsements or provisions limiting contractual liability. Page 460 City of Palm Desert Franchise Agreement City of Palm Desert 129 March 10, 2022 Umbrella or Excess Liability Insurance: Company may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Company shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than $5,000,000 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 drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied due to exhaustion of limits; • Pay on behalf of wording as opposed to reimbursement; • Concurrency of effective dates with primary policies; and • Policies shall “follow form” to the underlying primary policies. • Insureds under primary policies shall also be insureds under the umbrella or excess policies Other provisions or requirements Insurance for Subcontractors: The Company shall be responsible for ensuring all subcontractors and consultants purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City and its officers, officials, employees, and agents as additional insureds to their insurance policies. Company shall provide to City satisfactory evidence as required under Insurance Section 9.4 of this Agreement. Company agrees to ensure that its consultants and subcontractors provide the same minimum insurance coverage and endorsements required of Company. Company 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. Company agrees that upon request, all insurance documentation provided by subcontractors, consultants, and others engaged with this Agreement will be submitted to the City for review. Proof of Insurance: Company shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with all necessary endorsements as outlined in this Section. Insurance certificates and endorsements must be approved by the City’s Risk Manager prior to commencement of performance. The certificates and endorsements for each insurance policy shall be signed by a Person authorized by that insurer to bind coverage on its behalf. 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. Page 461 City of Palm Desert Franchise Agreement City of Palm Desert 130 March 10, 2022 Duration of Coverage: Company 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 Work hereunder by Company, its agents, representatives, employees, subcontractors, or consultants. 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 Company. Acceptable Insurers: All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance 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. 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 officials, agents, and employees or shall specifically allow Company or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Company hereby waives its own right of recovery against the City of Palm Desert, its elected or appointed officials, officers, agents, employees, and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. Enforcement of Agreement Provisions (non estoppel): Company acknowledges and agrees that any actual or alleged failure on the part of the City to inform Company of noncompliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. Primary and Non-Contributing Insurance: Coverage provided by Company shall be primary and any insurance or self-insurance procured or maintained by the City of Palm Desert 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 the City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. 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 Page 462 City of Palm Desert Franchise Agreement City of Palm Desert 131 March 10, 2022 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. Notice of Cancellation: Company agrees to oblige its insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment of premium for which a ten [10] day notice is required) for each required coverage. 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 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 liability policies. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Company’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. City’s Right to Revise Specifications: The City or its Risk Manager reserves the right at any time during the Term of the Agreement to change the amounts and types of insurance required by giving the Company ninety (90) days advance written notice of such change. If such change results in cost to the Company, the City and Company may renegotiate Company’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. Deductibles and Self-Insured Retentions: Any deductibles or self-insured retentions must be declared to and approved by City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respect to Indemnitees; or the Company shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses in the amount of such deductibles or self-insured retentions. Timely Notice of Claims: Company shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Company’s performance under this Agreement, which involve or may involve coverage under any of the required liability policies for incidents that cause significant third-party property damage and/or any third personal injury that occurs in the City of Palm Desert. Safety: Company shall execute and maintain its work so as to avoid injury or damage to any Person or property. In carrying out its Services, the Company 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 and the conditions under which the work is to be performed. Page 463 City of Palm Desert Franchise Agreement City of Palm Desert 132 March 10, 2022 Additional Insurance: Company 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 Work. Additional Provisions: 1. The City does not, and shall not, waive any rights against the Company which it may have by reason of the aforesaid hold harmless agreements, because of acceptance by the City or the deposit with the City by the Company of the insurance policies described in this Section 9.4. 2. In the event any services are delegated to another company, subcontractor, or consultant, the Company shall require such company, subcontractor, or consultant to provide statutory workers' compensation insurance and employer's liability insurance for all of the other company’s, subcontractor's, or consultant’s employees engaged in the work in accordance with this Section 9.4. The liability insurance required by this Section 9.4 shall cover all Company, subcontractors, and consultants, or these parties must furnish evidence of insurance that meets all of the requirements of this Section 9.4. 3. The Company shall comply with all requirements of the insurers issuing policies. The carrying of insurance shall not relieve the Company from any obligation under this Agreement. If any claim exceeding the amount of any deductibles or self-insured reserves is made by any third Person against the Company, or any subcontractor or consultant on account of any occurrence related to this Agreement, the Company shall promptly report the facts in writing to the insurance carrier and to the City. 9.5 Faithful Performance Bond Concurrently with execution of this Agreement, the Company shall deliver to the City a performance bond, from an admitted surety insurer, in the amount of One Million Dollars ($1,000,000), similar to the form provided in Exhibit 6, which secures the faithful performance of this Agreement, including, without limitation, payment of any penalty and the funding of any work to cure a breach of this Agreement. The bond shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire Term of the Agreement and shall be null and void at the conclusion of the Term of this Agreement only if the Company promptly and faithfully performs all terms and conditions of this Agreement. Page 464 City of Palm Desert Franchise Agreement City of Palm Desert 133 March 10, 2022 9.6 Forfeiture of Performance Bond In the event the Company shall for any reason become unable to, or fail in any way to, perform as required by this Agreement, the City may declare a portion or all of the performance bond which is necessary to recompense and make whole the City, forfeited to the City. Upon partial or full forfeiture of the performance bond, the Company shall restore the performance bond to its face amount within thirty (30) days of the City’s declaration. Failure to restore the performance bond to its full amount within thirty (30) days shall be a material breach of Agreement. 9.7 Performance Security Beyond Service Term Some Agreement requirements extend beyond the Term of this Agreement and other requirements, such as minimum Diversion rates per Section 4.7.12, will not be substantiated until after the final service date. Therefore, the Company shall not terminate the performance bond required in Section 9.5, and will renew them to ensure continuous availability to the City, until receiving a written release from the City. Permission from the City to discontinue holding these performance securities does not relieve Company of payments to the City that may be due, or may become due. Page 465 City of Palm Desert Franchise Agreement City of Palm Desert 134 March 10, 2022 ARTICLE 10. CITY'S RIGHT TO PERFORM SERVICE 10.1 General In addition to, but not in lieu of, any other rights or remedies City might have under this Agreement, at law or in equity, in the event that the Company, for any reason whatsoever (including interruptions and discontinuance due to events described in Section 11.5), fails, refuses, or is unable to Collect, Recycle, Process, Transport or Dispose of any or all Solid Waste (including Recyclable Materials and Organic Materials) which it is required by this Agreement, at the time and in the manner provided in this Agreement, for a period of more than forty-eight (48) hours, and if, as a result thereof, Solid Waste should accumulate in the City to such an extent, in such a manner, or for such a time that the City should find that such accumulation endangers or menaces the public health, safety or welfare, then the City shall have the right, but not the obligation, upon notice to the Company during the period of such emergency as determined by the City, as hereinafter set forth, (1) to perform, or cause to be performed, such services itself with its own or other personnel without liability to the Company; and/or (2) to take possession of any or all of the Company's land, equipment and other property used or useful in the Collection and Transportation of Solid Waste, and to use such property to Collect and Transport any Solid Waste generated within the City which the Company would otherwise be obligated to Collect, Transport and properly Dispose of or Process pursuant to this Agreement. Notice of the Company's failure, refusal or neglect to Collect, Transport and properly Dispose of or Process Solid Waste may be given orally by telephone to the Company at its principal office and shall be effective immediately. Written confirmation of such oral notification shall be sent to the Company within one Business Day of the oral notification. The Company further agrees that in such event: A. It will take direction from the City to effect the transfer of possession of equipment and property to the City for the City's use. B. It will, if the City so requests, keep in good repair and condition all of such equipment and property, provide all motor vehicles with fuel, oil and other service, and provide such other service as may be necessary to maintain said property in operational condition. C. The City may immediately engage all or any personnel necessary or useful for the Collection and Transportation of Solid Waste, including, if the City so desires, employees previously or then employed by the Company. The Company further agrees, if the City so requests, to furnish the City the services of any or all man- agement or office Personnel employed by the Company whose services are neces- sary or useful for Solid Waste Collection, Transportation, Processing and Disposal Page 466 City of Palm Desert Franchise Agreement City of Palm Desert 135 March 10, 2022 operations and for the Billing and Collection of fees for these services. The City agrees that it assumes complete responsibility for the proper and normal use of such equipment and Facilities while in its possession. If the interruption or discontinuance in service is caused by any of the reasons listed in Section 11.5, the City shall pay to the Company the reasonable rental value of the equipment and Facilities, possession of which is taken by the City, for the period of the City's possession, if any, which extends beyond the period of time for which the Company has rendered bills in advance of service, for the class of service involved. 10.2 Billing and Compensation to the City during the City's Possession During such time that the City is providing Solid Waste services, as above provided, the Company shall bill and collect payment from all users of the above-mentioned services as described in Section 5.1. The Company further agrees that, in such event, it shall reimburse the City for any and all costs and expenses incurred by the City beyond that billed and received by the City in taking over possession of the above-mentioned equipment and property for Solid Waste service in such manner and to an extent as would otherwise be required of the Company under the terms of this Agreement. Such reimbursement shall be made from time to time after submission by the City to the Company of each statement listing such costs and expenses, but in no event later than five (5) working days from and after each such submission. 10.3 City's Right to Relinquish Possession It is further mutually agreed that the City may at any time at its discretion relinquish possession of any or all of the above-mentioned property to the Company and thereupon demand that the Company resume the Solid Waste services as provided in this Agreement, whereupon the Company shall be bound to resume the same. 10.4 City's Possession Not A Taking The City's exercise of its rights under this Article 10 (1) does not constitute a taking of private property for which compensation must be paid; (2) will not create any liability on the part of the City to the Company; and (3) does not exempt the Company from the indemnity provisions of Article 9, which are meant to extend to circumstances arising under this Section, provided that the Company is not required to indemnify the City against claims and damages arising from the sole negligence of the City, its elective and appointive boards, commissions, officers, employees and agents in the operation of Collection vehicles during the time the City has taken possession of such vehicles. Page 467 City of Palm Desert Franchise Agreement City of Palm Desert 136 March 10, 2022 10.5 Duration of the City's Possession The City's right pursuant to this Article to retain temporary possession of the Company's Facilities and equipment, and to render Collection services, shall terminate when the City determines that such services can be resumed by the Company, or when the City no longer reasonably requires such property or equipment. In any case, the City has no obligation to maintain possession of the Company's property or equipment and/or continue its use for any period of time and may at any time, in its sole discretion, relinquish possession to the Company. Page 468 City of Palm Desert Franchise Agreement City of Palm Desert 137 March 10, 2022 ARTICLE 11. DEFAULT, REMEDIES AND LIQUIDATED DAMAGES 11.1 Events of Default All provisions of this Agreement to be performed by the Company are considered material. Each of the following shall constitute an event of default. A. Fraud or Deceit. If the Company practices, or attempts to practice, any fraud or deceit upon the City. B. Insolvency or Bankruptcy. If the Company becomes insolvent, unable, or unwilling to pay its debts, files a bankruptcy petition or takes steps to liquidate its assets. C. Failure to Maintain Coverage. If the Company fails to provide or maintain in full force and effect the Workers' Compensation, liability, or indemnification coverage as required by this Agreement. D. Violations of Regulation. If the Company violates any orders or filings of any regulatory body having jurisdiction over the Company or City relative to this Agreement, provided that the Company may contest any such orders or filings by appropriate proceedings conducted in good faith, in which case no breach of the Franchise and this Agreement shall be deemed to have occurred. E. Failure to Perform. If the Company ceases to provide Collection, Processing, Recycling, or Disposal services as required under this Agreement for a period of two (2) consecutive days or more, for any reason within the control of the Company, including labor disputes. F. Failure to Pay. If the Company fails to make any payments required under this Agreement and/or refuses to provide the City, within ten (10) days of the demand therefor, with required information, reports, and/or records in a timely manner as provided for in the Agreement. G. Acts or Omissions. Any other act or omission by the Company which violates the terms, conditions, or requirements of this Agreement, Applicable Law, any Environmental Law as it may be amended from time to time, or any law, statute, ordinance, order, directive, rule, or regulation issued thereunder and which is not corrected or remedied within the time set in the written notice of the violation or, if the Company cannot reasonably correct or remedy the breach within the time set forth in such notice, if the Company should fail to commence to correct or remedy such violation within the time set forth in such notice and diligently effect such correction or remedy thereafter. Page 469 City of Palm Desert Franchise Agreement City of Palm Desert 138 March 10, 2022 H. False or Misleading Statements. Any representation or disclosure made to the City by the Company in connection with or as an inducement to entering into this Agreement, or any future amendment to this Agreement, which proves to be false or misleading in any material respect as of the time such representation or disclosure is made, whether or not any such representation or disclosure appears as part of this Agreement. I. Attachment. There is a seizure of, attachment of, or levy on, the operating equipment of the Company, including without limits its equipment, maintenance or office facilities, or any part thereof. J. Suspension or Termination of Service. There is any termination or suspension of the transaction of business by the Company, including without limit, due to labor unrest including strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action lasting more than two (2) consecutive days. K. Failure to Provide Assurance of Performance. If the Company fails to provide reasonable assurances of performance as required under Section 11.7. L. Failure to Provide Processing Capacity. Company fails to provide adequate Processing capacity in accordance with Exhibit 8, which is essential for the City to achieve SB 1383 compliance. M. Failure to Achieve Processing Standards. Company fails to achieve the Processing standards specified in Exhibit 8, including achievement of minimum Organic Materials recovery rates, which are essential for the City to achieve SB 1383 compliance. N. Failure to Comply with Other Requirements of SB 1383. Company fails to comply with other requirements of the Agreement including, but not limited to, public education, reporting, contamination monitoring, recordkeeping and reporting, or other obligations of this Agreement that delegate the City’s responsibility and/or authority under SB 1383 to the Company. O. Failure to Implement Collection Program. Company fails to implement a Collection program that complies with the requirements of Article 4, which is essential for the City to achieve compliance with SB 1383. The Company shall be given forty-eight (48) hours from notification by the City to cure any default arising under Subsections E, F, I, J and K provided, however, that the City shall not be obligated to provide the Company with a notice and cure opportunity if the Company has committed the same or similar breach within a twenty-four (24) month period. Page 470 City of Palm Desert Franchise Agreement City of Palm Desert 139 March 10, 2022 11.2 Criminal Activity of Company Should the Company or any of its officers or directors be found guilty of felonious conduct related to the performance of this Agreement, or of felonious conduct related to anti-trust activities, illegal Transport, Processing, or Disposal of hazardous or toxic materials, or bribery of public officials, the City reserves the right to unilaterally terminate this Agreement or impose other such sanctions (which may include financial sanctions, temporary suspensions or any other condition deemed appropriate short of termination) as it shall deem proper. 11.3 Right to Terminate Upon Default Upon a default by the Company, the City shall have the right to terminate this Franchise and this Agreement upon a ten (10) days notice if the public health or safety is threatened, or otherwise a thirty (30) days notice, but without the need for any hearing, suit or legal action. The City's rights to terminate this Agreement, or to take possession of the Company's Facility are not exclusive, and the City's termination of this Agreement shall not constitute an election of remedies. Instead, they shall be in addition to any and all other legal and equitable rights and remedies which the City may have. By virtue of the nature of this Agreement, the urgency of timely continuous and high- quality service, the time required to effect alternative service, and the rights granted by the City to the Company, the remedy of damages for a breach hereof by the Company is inadequate and the City shall be entitled in injunctive relief. 11.4 Liquidated Damages 11.4.1 General The City finds, and the Company agrees, that as of the time of the execution of this Agreement, it is impractical, if not impossible, to reasonably ascertain the extent of damages which shall be incurred by the City as a result of a breach by the Company of its obligations under this Agreement. The factors relating to the impracticability of ascertaining damages include, but are not limited to, the fact that: (i) substantial damage results to members of the public who are denied services or denied quality or reliable service; (ii) such breaches cause inconvenience, anxiety, frustration, and deprivation of the benefits of the Agreement to individual members of the general public for whose benefit this Agreement exists, in subjective ways and in varying degrees of intensity which are incapable of measurement in precise monetary terms; (iii) the services provided under this Agreement might be available at substantially lower costs than alternative services and the monetary loss resulting from denial of services or denial of Page 471 City of Palm Desert Franchise Agreement City of Palm Desert 140 March 10, 2022 quality or reliable services is impossible to calculate in precise monetary terms; and (iv) the termination of this Agreement for such breaches, and other remedies are, at best, a means of future correction and not remedies which make the public whole for past breaches. 11.4.2 Service Performance Standards; Liquidated Damages for Failure to Meet Standards The Parties further acknowledge that consistent, reliable Collection service is of utmost importance to the City and that the City has considered and relied on the Company's representations as to its quality of service commitment in awarding the Franchise to it. The Parties further recognize that some quantified standards of performance are necessary and appropriate to ensure consistent and reliable service and performance. The Parties further recognize that if the Company fails to achieve the performance standards, or fails to submit required documents in a timely manner, the City and its residents will suffer damages and that it is and will be impractical and extremely difficult to ascertain and determine the exact amount of damages which the City will suffer. Therefore, without prejudice to the City's right to treat such non-performance as an event of default under this Article 11, the Parties agree that the following liquidated damage amounts represent a reasonable estimate of the amount of such damages considering all of the circumstances existing on the date of this Agreement, including the relationship of the sums to the range of harm to the City that reasonably could be anticipated and the anticipation that proof of actual damages would be costly or impractical. In placing their initials at the places provided, each Party specifically confirms the accuracy of the statements made above and the fact that each Party has had ample opportunity to consult with legal counsel and obtain an explanation of the liquidated damage provisions at the time that the Agreement was made. Company Initial Here City Initial Here The Company agrees to pay (as liquidated damages and not as a penalty) the amounts set forth below: 1. Collection Reliability a) For each failure to commence service to a new Customer account within seven (7) days after order, which exceed five (5) such failures annually: $150.00 per occurrence b) For each failure to Collect Discarded Materials, which has been properly set out for Collection, from an established Customer account, or accounts, on the scheduled Collection day and not Collected within the period described in this Page 472 City of Palm Desert Franchise Agreement City of Palm Desert 141 March 10, 2022 Agreement which exceeds ten (10) such failures annually: $150.00 per occurrence c) For each failure to Collect Discarded Materials, which has been properly set out for Collection, from the same Customer on two (2) consecutive scheduled pickup days: $150.00 per occurrence 2. Collection Quality a) For each occurrence of violating a transfer station conditional use permit (C.U.P.): $500.00 per occurrence b) For each occurrence of uncompensated damage to private property which exceeds five (5) such occurrences annually: $250.00 per occurrence c) For each occurrence of failure to properly return empty Containers to avoid pedestrian or vehicular traffic impediments or to place Cans upright with lids secured (in areas where Customers own their Containers, if applicable) which exceeds ten (10) service locations annually: $150.00 per occurrence d) For each occurrence of excessive noise or discourteous behavior: $250.00 per occurrence e) For each failure to clean up Discarded Materials spilled from Containers which exceeds ten (10) such failures annually: $150.00 per occurrence f) For each occurrence of Collecting Discarded Materials during unauthorized hours which exceeds five (5) such occurrences annually: $250.00 per occurrence g) For each failure to clean or replace Commercial Containers in accordance with Section 4.8.3 of this Agreement which exceeds ten (10) such failures annually: $150.00 per occurrence h) For each failure to replace locks on locking Containers after Collection in accordance with Section 4.6.1 which exceeds three (3) annually: $50.00 per occurrence 3. Customer Responsiveness a) For each failure to initially respond to a Customer complaint within one (1) Page 473 City of Palm Desert Franchise Agreement City of Palm Desert 142 March 10, 2022 Working Day: $100.00 per occurrence b) For each failure to process Customer complaints to the City as required by Article 5 herein: $500.00 per occurrence c) For each failure to remove graffiti from Containers, or to replace with Containers bearing no graffiti, within one (1) Working Day of request from City or Customers: $100.00 per occurrence d) For each failure of a Company field representative to annually contact a Commercial, Industrial or Master-Billed Residential account: $50.00 per account per year per occurrence e) For each occurrence where a City inquiry is not provided a response or action plan within two (2) Working Days from receipt of inquiry which exceeds three (3) times annually: $100.00 per occurrence f) For each occurrence where Solid Waste is not Collected from any Customer and a tag is not provided per Section 4.12.A which exceeds five (5) times annually: $100.00 per occurrence 4. Timeliness of Submissions to the City Any report shall be considered late until such time as a correct and complete report is received by the City. For each calendar day a report or report component is late, the daily liquidated damage amount shall be: a) Monthly Reports: $25.00 per day b) Annual Reports: $350.00 per day c) For each day beyond 30 days after the end of each calendar quarter that Company has not submitted complete and accurate supporting data and calculations for Franchise and Recycling Fees paid, in accordance with Article 3 of the Agreement, Company shall pay: $50.00 per day 5. Accuracy of Billing a) Each Customer invoice that is not prepared in accordance with the City’s approved rate schedule that is not cured within 30 days of initial invoicing: $250.00 per Customer invoice Page 474 City of Palm Desert Franchise Agreement City of Palm Desert 143 March 10, 2022 b) Each occurrence in which a service address is “double billed” with multiple invoices sent to different Billing addresses (for examples, both a tenant and an off-site Property Owner are billed for service at the same location): $250.00 per occurrence 6. Implementation of Public Education Plan a) For each failure to perform any individual education and outreach activity as required and in the timeframe specified by this Agreement: $200.00 per day 7. Use of Alternative Fuel Route Vehicles a) For each day that the Company fails to have one hundred percent (100%) of its route trucks powered by alternative fuel sources (non-diesel): $500.00 per day 8. SB 1383 Program Implementation a) Use of Unauthorized Facilities. For each individual occurrence of delivering Discarded Materials to a Facility other than an Approved/Designated Facility(ies) for each Discarded Material type under this Agreement: $25.00 per ton b) Failure to Comply with Container Labeling and Colors. For each occurrence of Company’s failure to comply with Container labeling and color requirements pursuant to this Agreement: $25.00 per occurrence c) Failure to Conduct Compliance Tasks. For each failure to conduct any compliance review, Discarded Materials evaluations pursuant and/or other inspection required by this Agreement: $500.00 per occurrence d) Failure to Conduct Follow-Up Inspections. For each failure to conduct a follow-up inspection as required in this Agreement as required by Section 5.5.2: $25.00 per occurrence 9. Cooperation with Service Provider Transition a) For each day routing information requested by City in accordance with Section 12.9 is received after City-established due dates, both for preparation of a request for proposals and for new service provider’s implementation of service: $1,000.00 per day Page 475 City of Palm Desert Franchise Agreement City of Palm Desert 144 March 10, 2022 b) For each day delivery of keys, access codes, remote controls, or other means of access to Solid Waste Containers is delayed beyond one (1) day prior to new service provider servicing Customers with access issues, as described in Section 12.9: $1,000.00 per day c) For delay in not meeting the requirements contained in Sections 4.13 and 12.9 in a timely manner, in addition to the daily liquidated damages for breach under 12(a) and 12(b) above, liquidated damages of: $35,000.00 per occurrence 10. General Agreement Adherence a) For each day that Franchisee fails to provide services required under the Agreement, or comply with terms of the Agreement, five (5) Business Days after receipt of written notification from City that such services are not being provided or terms are not being met: $300.00 per day Liquidated damages will only be assessed after the Company has been given the opportunity but failed to rectify the damages as described in this Agreement. The City may determine the occurrence of events giving rise to liquidated damages through the observation of its own employees or representative or investigation of Customer complaints. Prior to assessing liquidated damages, the City shall give the Company notice of its intention to do so. The notice will include a brief description of the incident(s)/non- performance. The Company may review (and make copies at its own expense) all non- confidential information in the possession of the City relating to incident(s)/non- performance. The Company may, within ten (10) days after receiving the notice, request a meeting with the City Manager or their designee. The Company may present evidence in writing and through testimony of its employees and others relevant to the incident(s)/non-performance. The City Manager or their designee will provide the Company with a written explanation of their determination on each incident(s)/non- performance prior to authorizing the assessment of liquidated damages. The decision of the City Manager or their designee shall be final. 11.4.3 Amount The City may assess liquidated damages for each calendar day or event, as appropriate, that the Company is determined to be liable in accordance with this Agreement. Page 476 City of Palm Desert Franchise Agreement City of Palm Desert 145 March 10, 2022 11.4.4 Timing of Payment The Company shall pay any liquidated damages assessed by the City within ten (10) days after they are assessed. If they are not paid within the ten (10) day period, the City may proceed against the performance bond required by the Agreement or order the termination of the Franchise granted by this Agreement, or exercise any other right or remedy available to City under this Agreement or at law or in equity, or any combination of these remedies. 11.5 Excuse from Performance The Parties shall be excused from performing their respective obligations hereunder in the event they are actually prevented from so performing by reason of floods, earthquakes, other natural disasters, war, civil insurrection, riots, pandemic, quarantine, travel or movement restrictions, “social distancing” or public health advisories against large gatherings, the acts, order, requirement or recommendation of governmental agencies or public authorities acts (including judicial action), picketing at Customer Collection locations that blocks access to Container pick up points, and other similar catastrophic events which are beyond the control of and not the fault of the Party claiming excuse from performance hereunder (“Uncontrollable Circumstances”). Labor unrest, including but not limited to strike, work stoppage or slowdown, sick-out, picketing, or other concerted job action conducted by the Company's employees or directed at the Company is not an excuse from performance and the Company shall be obligated to continue to provide service notwithstanding the occurrence of any or all of such events. The Party claiming excuse from performance shall, within two (2) days after such Party has notice of such cause, give the other Party notice of the facts constituting such cause and asserting its claim to excuse under this Section. The interruption or discontinuance of the Company's services caused by one or more of the events excused shall not constitute a default by the Company under this Agreement. Notwithstanding the foregoing, however, if the Company is excused from performing its obligations hereunder for any of the causes listed in this Section for a period of seven (7) days or more, the City shall nevertheless have the right, in its sole discretion, to terminate this Agreement by giving ten (10) days' notice, in which case the provisions relative to taking possession of the Company's land, equipment and other property and engaging the Company's Personnel in Article 10 and this Article 11 will apply. 11.6 Arbitration Any dispute arising out of or relating to this Agreement, which dispute involves claims or controversies having no monetary value, or are in an amount or amounts, if combined, not exceeding twenty-five thousand dollars ($25,000), shall be first mediated between the Page 477 City of Palm Desert Franchise Agreement City of Palm Desert 146 March 10, 2022 Parties. The Party making demand for mediation shall select a panel of three (3) mediators from those mediators listed and approved by the local Superior Court of jurisdiction, and the Party not selecting the panel shall choose one (1) of the listed mediators who shall serve in that capacity. The Parties shall share equally in the cost and expense of the mediation. Any dispute arising out of or relating to this Agreement, which dispute involves claims or controversies, having a monetary value in an amount or amounts, if combined, not exceeding twenty-five thousand dollars ($25,000), which dispute was not resolved by mediation as required herein, shall be decided by arbitration in accordance with the commercial rules of the American Arbitration Association then pertaining, unless the Parties agree otherwise and consent, in writing, to a different method of dispute resolution, including mediation or judicial arbitration. Any dispute arising out of or relating to this Agreement, which dispute involves claims or controversies in an amount or amounts, if combined, exceeding twenty-five thousand dollars ($25,000), shall not involve arbitration, or any other method of dispute resolution, unless the Parties agree otherwise and consent, in writing, but shall instead be brought in a court of competent jurisdiction in the County of Riverside, State of California. Venue for any action, including those actions subject to arbitration, shall be Riverside County. Company hereby expressly waives any right to remove any such action to a County other than Riverside County otherwise provided by California Code of Civil Code of Civil Procedure Section 394. Notice of the demand for arbitration is to be filed in writing with the other Party to this Agreement and with the American Arbitration Association. The demand is to be made within a reasonable period of time after the claim, dispute, or other matter in controversy has arisen. In no event, however, is the demand for arbitration to be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in controversy would be barred by the applicable statute of limitations. Any award rendered by the arbitrator shall be final and judgment may be entered upon it in accordance with Applicable Law in any court having jurisdiction thereof. 11.7 Assurance of Performance The City may, at its option and in addition to all other remedies it may have, demand from the Company reasonable assurances of timely and proper performance of this Agreement, in such form and substance as the City may require. If the Company fails or refuses to provide satisfactory assurances of timely and proper performance in the form and by the date required by the City, such failure or refusal shall be an event of default. Page 478 City of Palm Desert Franchise Agreement City of Palm Desert 147 March 10, 2022 ARTICLE 12. OTHER AGREEMENTS OF THE PARTIES 12.1 Relationship of Parties The Parties intend that the Company shall perform the services required by this Agreement as an independent Company engaged by the City and not as an officer or employee of the City nor as a partner of or joint venture with the City. No employee or agent or Company shall be or shall be deemed to be an employee or agent of the City. Except as expressly provided herein, the Company shall have the exclusive control over the manner and means of conducting the Solid Waste Collection services performed under this Agreement, and all Persons performing such services. The Company shall be solely responsible for the acts and omissions of its officers, employees, Companies, subcontractors, Affiliates and agents. Neither the Company nor its officers, employees, Companies, subcontractors, Affiliates and agents shall obtain any rights to retirement benefits, workers' compensation benefits, or any other benefits which accrue to the City employees by virtue of their employment with the City. 12.2 Compliance with Law In providing the services required under this Agreement, the Company shall at all times, at its sole cost, comply with all Applicable Laws and regulations of the United States, the State of California, and local agencies. The City shall comply with all applicable regulations promulgated by federal, State, regional or local administrative and regulatory agencies, now in force and as they may be enacted, issued or amended during the Term. 12.3 Governing Law This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. 12.4 Jurisdiction Any lawsuits between the Parties arising out of this Agreement shall be brought and concluded in the courts of the State of California, which shall have exclusive jurisdiction over such lawsuits. With respect to venue, the Parties agree that this Agreement is made in and will be performed in Riverside County. Page 479 City of Palm Desert Franchise Agreement City of Palm Desert 148 March 10, 2022 12.5 Assignment Except as may be provided for in Article 10 (City's Right to Perform Service), Company shall not assign its rights, nor delegate, subcontract or otherwise transfer its obligations under this Agreement (collectively referred to as an “assignment”) to any other Person without the prior written consent of City. Any such assignment made without the consent of City shall be void and the attempted assignment shall constitute a material breach of this Agreement. For purposes of this Section the term "assignment" shall be given the broadest possible interpretation, and shall include, but not be limited to (i) a sale, exchange or other transfer of substantially all of Company's assets dedicated to service under this Agreement to a third party; (ii) a sale, exchange or other transfer of outstanding membership interest in Company to a third party provided said sale, exchange or transfer results in a change of control of Company; (iii) any dissolution, reorganization, consolidation, merger, re- capitalization, stock issuance or re-issuance, voting trust, pooling agreement, escrow arrangement, liquidation or other transaction which results in a change of control of Company; (iv) any assignment by operation of law, including those resulting from mergers or acquisitions by or of Company of any of its Affiliates, insolvency or bankruptcy, making assignment for the benefit of creditors, writ of attachment for an execution being levied against this Agreement, appointment of a receiver taking possession of Company's property, or transfer occurring in the event of a probate proceeding, which results in a change of control of Company; and (v) any combination of the foregoing (whether or not in related or contemporaneous transactions) which has the effect of any such transfer (under clause (i) above) or results in a change of control of Company. Notwithstanding the foregoing, nothing is this Section shall prohibit or prevent an assignment by or among Company’s present members, whether as trustees of trusts or otherwise, or to or among trusts controlled by such members or trustees, so long as such assignment does not result in a change of control of Company. For the purpose of this Section, the term “Change of Control of Company” means that the Company’s present members shall cease to own, individually or collectively, either directly or indirectly through one or more Affiliates or one or more trusts as to which one or more of such individuals is or becomes a trustee, more that forty-nine (49) percent of the voting membership interests in Company. Company acknowledges that this Agreement involved rendering a vital service to City's residents and businesses, and that City has selected Company to perform the services specified herein based on (1) Company's experience, skill and reputation for conducting its Collection, Transportation, Recycling, Processing, and Disposal services in a safe, effective and responsible fashion, at all times in keeping with applicable Environmental Laws, regulations and best Solid Waste (including Recyclable Materials and Organic Page 480 City of Palm Desert Franchise Agreement City of Palm Desert 149 March 10, 2022 Materials) management practices, and (2) Company's financial resources to maintain the required equipment and to support its indemnity obligations to City under this Agreement. City has relied on each of these factors, among others, in choosing Company to perform the services to be rendered by Company under this Agreement. If Company requests City's consideration of and consent to an assignment, City may deny or approve such request in its sole and absolute discretion. Any request for an assignment must be approved by the City Manager, and no request by Company for consent to an assignment need be considered by City unless and until Company has met (or with respect to matters that would only occur upon completion of the assignment if approved, made reasonable assurances that it will meet) the following requirements: a) Company shall pay City its reasonable expenses for attorney's fees and investigation costs necessary to investigate the suitability of any proposed assignee, and to review and finalize any documentation required as a condition for approving any such assignment. An advance payment towards expenses may be requested by City prior to City consideration of any assignment request and Company shall be responsible to pay all costs incurred by City in considering a request for assignment, including those in excess of the aforesaid deposit amount, regardless of whether City consents to the assignment. b) Company shall pay the City a transfer fee equal to one percent (1%) of the Gross Receipts, not to exceed one hundred and fifty thousand dollars ($150,000), it, or its assignee, will receive during the remaining Term of the Agreement, as estimated by City. c) Company shall furnish City with audited financial statements for itself, and the proposed assignee's operations for the immediately preceding three (3) operating years. d) A proforma financial statement (income statement and balance sheet) for the proposed assignee with the projected results of operations assuming that the assignment is completed. Such proforma financial statement shall reflect any debt to be incurred by the assignee as part of the acquisition of Company’s operations. e) Company shall furnish City with satisfactory proof: (i) that the proposed assignee has at least ten (10) years of Solid Waste management experience on a scale equal to or exceeding the scale of operations conducted by Company under this Agreement; (ii) that in the last five (5) years, the proposed assignee has not suffered any significant citations or other censure from any federal, State or local agency having jurisdiction over its Solid Waste management operations due to any significant failure to comply with State, federal or local Environmental Laws and that the assignee has provided City with a complete list of any such citations and Page 481 City of Palm Desert Franchise Agreement City of Palm Desert 150 March 10, 2022 censures; (iii) that the proposed assignee has at all times conducted its operations in an environmentally safe and conscientious fashion; (iv) that the proposed assignee conducts its Solid Waste management practices in accordance with sound Solid Waste management practices in full compliance with all federal, State and local laws regulating the Collection and Disposal of Solid Waste including Hazardous Substances; and, (v) of any other information required by City to ensure the proposed assignee can fulfill the terms of this Agreement in a timely, safe and effective manner. Under no circumstances shall City be obliged to consider any proposed assignment by City if Company is in default at any time during the period of consideration. Should City consent to any assignment request, such assignment shall not take effect until all conditions relating to City’s approval have been met. An assignment among the existing shareholders or their related trusts shall not require the City’s prior approval and shall not be subject to the transfer fees, submittals, and investigations articulated in this Section 12.5. Company shall notify City in writing of any assignment among its existing shareholders or their related trusts within thirty (30) days of the event. 12.6 Affiliated Companies The Company's accounting records shall be maintained on a basis showing the results of the Company's operations under this Agreement separately from operations in other locations, as if the Company were an independent entity providing service only to the City. The costs and revenues associated with providing service to the City shall not be combined, consolidated or in any other way incorporated with those of other operations conducted by the Company in other locations, or with those of an Affiliate. If the Company enters into any financial transactions with a related Party entity for the provision of labor, equipment, supplies, services, capital, etc., related to the furnishing of service under this Agreement, that relationship shall be disclosed to the City, and in the financial reports submitted to the City. In such event, the City's rights to inspect records, and obtain financial data shall extend to such related Party entity or entities. Any application for a change of ownership or a Franchise transfer shall be made in a manner prescribed by the City Manager. The application shall include a transfer fee in an amount to be set by a resolution of the City Council, to cover the reasonable costs of all direct and indirect administrative expenses of the City, including, without limitation, consultants and attorneys, necessary to analyze the application and to reimburse the City for all its direct and indirect expenses. The applicant shall pay such invoices prior to any authorized change of ownership or Franchise transfer becoming effective. Page 482 City of Palm Desert Franchise Agreement City of Palm Desert 151 March 10, 2022 12.7 Contracting or Subcontracting The Company shall not engage any companies or subcontractors for Collection, transfer, Processing, Recycling or Disposal of Solid Waste without the prior written consent of the City. 12.8 Binding on Assigns The provisions of this Agreement shall inure to the benefit of and be binding on the permitted assigns of the Parties. 12.9 Transition to the Next Company Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, Company shall cooperate fully with City and any subsequent City-designated Collection company to assure a smooth transition of Collection, Transportation, Recycling, Processing, and Disposal services. Company's cooperation shall include, but not be limited to, providing route lists, Billing information and other operating records needed to service all Premises covered by this Agreement. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Company shall provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Company shall be responsible for coordinating transfer immediately after Company’s final pickups, so as not to disrupt service. Company shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety (90) days prior to the transition date, and provide an updated list two weeks before the transition and a final list of changes the day before the transition. Company shall provide means of access to the new service provider at least one (1) full Working Day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 12.10 Parties in Interest Nothing in this Agreement, whether express or implied, is intended to confer any rights on any Persons other than the Parties to it and their representatives, successors and permitted assigns. Page 483 City of Palm Desert Franchise Agreement City of Palm Desert 152 March 10, 2022 12.11 Waiver The waiver by either Party of any breach or violation of any provisions of this Agreement shall not be deemed to be a waiver of any breach or violation of any other provision nor of any subsequent breach of violation of the same or any other provision. The subsequent acceptance by either Party of any moneys which become due hereunder shall not be deemed to be a waiver of any pre-existing or concurrent breach or violation by the other Party of any provision of this Agreement. 12.12 The Company's Investigation The Company has made an independent investigation (satisfactory to it) of the conditions and circumstances surrounding the Agreement and the work to be performed by it. 12.13 Condemnation The City fully reserves the rights to acquire the Company's property utilized in the performance of this Agreement, by purchase or through the exercise of the right of eminent domain. This provision is additive, and not intended to alter the rights of the Parties set forth in Article 10. 12.14 Notice All notices, demands, requests, proposals, approvals, consents and other communications which this Agreement requires, authorizes or contemplates shall be in writing and shall either be personally delivered to a representative of the Parties at the address below or be deposited in the United States mail, first class postage prepaid, addressed as follows: If to the City: City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 If to the Company: District Manager Burrtec Waste and Recycling Services, LLC 41-575 Eclectic Street Palm Desert, CA 92260 Page 484 City of Palm Desert Franchise Agreement City of Palm Desert 153 March 10, 2022 The address to which communications may be delivered may be changed from time to time by a written notice given in accordance with this Section. Notice shall be deemed given on the day it is personally delivered or, if mailed, three days from the date it is deposited in the mail. 12.15 Representatives of the Parties References in this Agreement to the "City" shall mean the City Council and all actions to be taken by the City shall be taken by the City Council except as provided below. The City Council may delegate, in writing, authority to the City Manager, and/or to other City employees and may permit such employees, in turn, to delegate in writing some or all of such authority to subordinate employees. The Company may rely upon actions taken by such delegates if they are within the scope of the authority properly delegated to them. The Company shall, by the effective date, designate in writing a responsible officer who shall serve as the representative of the Company in all matters related to the Agreement and shall inform the City in writing of such designation and of any limitations upon their authority to bind the Company. The City may rely upon action taken by such designated representative as actions of the Company unless they are outside the scope of the authority delegated to him/her by the Company as communicated to the City. 12.16 City Free to Negotiate with Third Parties Notwithstanding the exclusive nature of the Franchise, the City may investigate all options for the Collection, Transporting, Recycling, Processing and Disposal of Solid Waste at any time prior to the expiration of the Term. Without limiting the generality of the foregoing, the City may solicit proposals from the Company and from third parties for the provision of Collection services, Disposal services, Recycling services, Organic Materials services and Processing, and any combination thereof, and may negotiate and execute agreements for such services which will take effect upon the expiration or earlier termination under Section 11.1 of this Agreement. 12.17 Compliance with Municipal Code The Company shall comply with those provisions of the municipal code of the City which are applicable, and with any and all amendments to such applicable provisions during the Term of this Agreement. The Company and any subcontractors must maintain a current City business license during the Term of this Agreement. Page 485 City of Palm Desert Franchise Agreement City of Palm Desert 154 March 10, 2022 12.18 Privacy The Company shall strictly observe and protect the rights of privacy of Customers. Information identifying individual Customers or the composition or contents of a Customer's waste stream shall not be revealed to any Person, governmental unit, private agency, or company, unless upon the authority of a court of law, by statute, or upon valid authorization of the Customer. This provision shall not be construed to preclude the Company from preparing, participating in, or assisting in the preparation of waste characterization studies or waste stream analyses which may be required by AB 939. This provision shall not apply to reports or records provided to City pursuant to this Agreement so long as City maintains reports or records with Customer identification or confidential information in accordance with this Section 12.18, in which case this Section 12.18 shall apply to City in the same manner to which it applies to Company. 12.19 Cooperation Following Termination Prior to, and at, the end of the Term or in the event this Agreement is terminated for cause prior to the end of the Term, the Company covenants to cooperate fully with the City and any subsequent company to assure a smooth transition of Solid Waste management services. The Company's cooperation shall include, but not be limited to, providing operating records needed to service all properties covered by this Agreement. The failure to cooperate with City following termination shall be conclusively presumed to be grounds for specific performance of this covenant and/or other equitable relief necessary to enforce this covenant. Company shall provide a new service provider with all keys, security codes and remote controls used to access garages and Bin enclosures. Company shall be responsible for coordinating transfer immediately after Company’s final pickups, so as not to disrupt service. Company shall provide City with detailed route sheets containing service names and addresses, Billing names and addresses, monthly rate and service levels (number and size of Containers and pickup days) at least ninety (90) days prior to the transition date, and provide an updated list two weeks before the transition and a final list of changes the day before the transition. Company shall provide means of access to the new service provider at least one (1) full Working Day prior to the first day of Collection by another party, and always within sufficient time so as not to impede in any way the new service provider from easily servicing all Containers. 12.20 Compliance with Immigration Laws The Company agrees that, in the performance of this Agreement, it will comply with all immigration laws. Page 486 City of Palm Desert Franchise Agreement City of Palm Desert 155 March 10, 2022 12.21 Proprietary Information, Public Records The City acknowledges that a number of the records and reports of the Company are proprietary and confidential. Regular monthly, and annual reports described in Sections 8.3.2 and 8.3.3 are not proprietary. The Company is obligated to permit the City inspection of its records on demand and to provide copies to the City where requested. The City will endeavor to maintain the confidentiality of all proprietary information provided by the Company. Notwithstanding the foregoing, and notwithstanding Section 12.18 (as it applies to City), any documents provided by the Company to the City that are public records may be disclosed pursuant to a proper public records request. 12.22 Guarantee of Company's Performance Pursuant to a guarantee in substantially the form attached as Exhibit 5, Burrtec Waste Group, Inc., a California corporation, has agreed to guarantee the performance of this Agreement by Burrtec Waste and Recycling Services, LLC. The Guarantee is being provided concurrently with the Company's execution of this Agreement. 12.23 Attorney’s Fees In any action or proceeding to enforce or interpret any of the terms or conditions of this Agreement the prevailing Party shall be entitled to an award to attorney’s fees in the amount reasonably incurred in the prosecution or defense of such action. The term “prevailing Party” shall mean the Party entitled to recover costs of suit, upon the conclusion of the matter, in accordance with the laws of the State of California. Page 487 City of Palm Desert Franchise Agreement City of Palm Desert 156 March 10, 2022 ARTICLE 13. MISCELLANEOUS AGREEMENTS 13.1 Entire Agreement This Agreement, including the Exhibits, represents the full and entire Agreement between the Parties with respect to the matters covered herein. No verbal agreement or conversation with any office, agent, or employee of the City, either before, during, or after the execution of this Agreement, shall affect or modify any of the terms or obligations herein contained nor such verbal agreement or conversation entitle the Company to any additional payment whatsoever under the terms of this Agreement. The Agreement amends and restates the Initial Agreement and Amended Agreement. 13.2 Section Headings The article headings and section headings in this Agreement are for convenience of reference only and are not intended to be used in the construction of this Agreement nor to alter or affect any of its provisions. 13.3 References to Laws and Other Agreements All references in this Agreement to laws shall be understood to include such laws as they may be subsequently amended or recodified, unless otherwise specifically provided. This Agreement supersedes any and all agreements heretofore entered into by the Parties and the City. 13.4 Interpretation This Agreement, including the exhibits attached hereto, shall be interpreted and construed reasonably and neither for nor against either Party, regardless of the degree to which either Party participated in its drafting. 13.5 Agreement This Agreement may not be modified or amended in any respect except by a writing signed by the Parties. 13.6 Severability If any non-material provision of this Agreement is for any reason deemed to be invalid and unenforceable, the invalidity or unenforceability of such provision shall not affect Page 488 City of Palm Desert Franchise Agreement City of Palm Desert 157 March 10, 2022 any of the remaining provisions of this Agreement which shall be enforced as if such invalid or unenforceable provision had not been contained herein. 13.7 Exhibits Each of the Exhibits identified in this Agreement is attached hereto and incorporated herein and made a part hereof by this reference. 13.8 Non-Waiver Provision Failure of either Party to exercise any of the remedies set forth herein within the time periods provided for shall not constitute a waiver of any rights of that Party with regard to that failure to perform or subsequent failures to performing whether determined to be a breach, excused performance or unexcused defaults by the other Party. 13.9 Counterparts This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one agreement. Page 489 City of Palm Desert Franchise Agreement City of Palm Desert 158 March 10, 2022 IN WITNESS WHEREOF, the City and the Company 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: NIAMH M. ORTEGA DEPUTY CITY CLERK Approved As To Form: CITY ATTORNEY BURRTEC WASTE AND RECYCLING SERVICES, LLC Signature Name Title Date Page 490 EXHIBIT 1: CITY FACILITIES Page 491 Page 492 EXHIBIT 1. CITY FACILITIES City of Palm Desert 1-1 March 10, 2022 City facilities to receive Refuse, Recyclable Materials, Organic Materials, and all other Collection services offered by Company to the City, Processing and Disposal services at no additional cost to the City or ratepayers include, but are not limited to the following locations: LOCATION SERVICE ADDRESS All Civic Center Park Except Commercially Operated Buildings 73-510 Fred Waring Dr. City Hall 73-510 Fred Waring Dr. Portola Community Center 45480 Portola Ave. Enclosed yard 47500 Portola Ave., North of Haystack Fire Station #33 44400 Town Center Way Historical Society 72-861 El Paseo Corporation Yard 74-705 42nd Ave. Desert Recreation District 43900 San Pablo Ave. East Yard 74796 Velie Way Hovley Soccer Park 74735 Hovley Ln. Fire Station #67 73200 Mesa View Dr. Fire Station #71 73995 Country Club Dr. Riv. Co. Sheriff’s Sub-Station 73520 Fred Waring Dr. Palm Desert Library 73300 Fred Waring Dr. Joe Mann Park 77-810 California Dr. Washington Charter School Park 45768 Portola Ave. Ironwood Park 47-800 Chia Dr. Freedom Park 77-400 Country Club Dr. Cahuilla Hills Park 45825 Edgehill Dr. Magnesia Falls City Park 74200 Rutledge Way Palma Village Park 44550 San Carlos Ave. Cap Homme / Ralph Adams Park 72500 Thrush Rd. Palm Desert Aquatic Center 73-751 Magnesia Falls Dr. University Dog Park 74802 University Park Dr. University Park East 74902 University Park Dr. Page 493 EXHIBIT 2: PUBLIC EDUCATION AND OUTREACH PLAN Page 494 Page 495 EXHIBIT 2 PUBLIC EDUCATION AND OUTREACH PLAN City of Palm Desert 2-1 March 10, 2022 1. General Administration The City has placed the utmost importance on effective public outreach and education in helping residents and businesses fully understand options for and benefits of source reduction, Reuse, Recycling, and Composting. General provisions for public education and outreach are as follows: A. Company shall provide the City of Palm Desert with an annual public education plan no later than sixty (60) days prior to commencing New Year for both Parties to mutually agree and fulfil. Each public education plan shall specify the target audience for services provided, include upcoming promotions for ongoing and known special events, identify program objectives, individual tasks, public education materials to be distributed, opportunities for expanded partnerships, and a timeline for implementation. The City Contract Manager shall be permitted to provide input on each annual public education plan. Company shall meet with the City Contract Manager to present and discuss the plan, review the prior year’s activities (including sponsorships and services provided to City-sponsored events) and determine whether community activities and the provision of services to the City reflect the needs of City staff and the City Council. City Contract Manager shall be allowed up to thirty (30) calendar days after receipt to review and request modifications. The City Contract Manager may request, modifications to be completed prior to approving the plan, modifications will be mutually agreed. Company shall have up to thirty (30) Working Days to revise the plan in response to any agreed upon changes by the City Contract Manager. B. Upon request, the City Contract Manager and Company’s contract manager may meet up to one (1) time per month to discuss services, outreach, and educational campaigns and discuss any proposed changes or adaptations to the annual public education plan. C. Company shall distribute instructional information, public education, and promotion materials throughout the commencement of services. This shall entail, at a minimum, distributing program literature to all Customers at the beginning of the Agreement as well as to any new Customer during the Agreement Term. Company may use multiple media sources including print, radio, television, electronic/social media, and events to notify Customers of the change in their services, if applicable, and to highlight new program offerings. D. All City facilities shall receive any and all public education and outreach materials and services provided to the Commercial sector. Company shall provide all printed public education materials to City offices and facilities to have available for the public that visits those facilities and shall replenish the materials as Page 496 EXHIBIT 2 PUBLIC EDUCATION AND OUTREACH PLAN City of Palm Desert 2-2 March 10, 2022 requested by the City Contract Manager. E. Company may provide electronic bill messages (or separate email attachments) to Commercial Customers who are billed electronically and to Customers who receive paper bills. Company agrees to distribute brochures, newsletters, or other information developed by the City to all Customers Company as attachments to Customer invoices as mutually agreed with a minimum of forty-five (45) days in advance. Upon City request for billing messages, Company shall comply with such request during its next billing cycle for the targeted Customer group, if specified and agreed upon with a minimum notice to Company of forty-five (45) days. F. Company must maintain a website specific to its operations in the City, with a section specific to City programs and Customers, that may be used to post educational materials for download, highlight program successes, and provide Diversion statistics. The Company’s website may also include links to relevant web pages of the City’s website where further information can be found. 2. Public Education and Outreach Team To best achieve the highest possible level of public education and awareness, Company has proposed to employ a minimum of one (1) full-time equivalent staff member to coordinate and implement all public education and outreach activities required by this Agreement with further clarification provided in Sections 5.3.4 and 5.3.5. The public education and outreach staff shall perform the following tasks in addition to the responsibilities in Sections 5.3.4 and 5.3.5: 1. Work to develop partnerships with and incorporate City program and educational activities into Company activities, and vice versa; 2. Prepare presentations for City entities; 3. Participate in community activities; 4. Oversee Customer satisfaction of all program services, as described in the Agreement; 5. Coordinate and produce the annual education and outreach plan required by this Section 1 of this Exhibit 2 to the Agreement; 6. Coordinate implementation of the annual public education plan; 7. Perform visits to identify the service needs of Customers, by conducting “Diversion opportunity assessments” of Customer locations and facilities and Page 497 EXHIBIT 2 PUBLIC EDUCATION AND OUTREACH PLAN City of Palm Desert 2-3 March 10, 2022 annual visits in accordance with Section 4.6.6 of the Agreement; 8. Manage follow-up Diversion opportunity assessments for businesses to conduct a more comprehensive investigation and educational process after the initial review per Section 4.6.6 of the Agreement; 9. Provide Customers with appropriate educational information necessary to make informed, environmentally-forward decisions relative to waste reduction, Reuse, and recovering activities; and, 10. Assist in planning service needs for special events and Large Venues with a focus on reducing the Disposal of materials resulting from such events or venues. 3. Sector-Specific Activities The following tables present the public education and outreach activities to be performed by Company annually and specifies which items require the use of the third-party vendor, selected by Company, to create the outreach materials. Items for creation by a third-party vendor are to be agreed upon annually during the annual outreach plan review. Customer typefaces unique Discarded Materials management opportunities and challenges; therefore, Company shall develop targeted, sector-specific educational materials and perform outreach activities as described for Customers. Additional ongoing public education and technical outreach assistance is included in the Agreement and not specified here. Some of this assistance includes, but not limited to assistance with waiver verification, contamination follow-up upon completion of waste evaluations, compliance surveys, Proposition 218 noticing, etc. Page 498 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-4 March 10, 2022 Public Education and Outreach | All Sectors The following general public education and outreach materials shall each be produced for the benefit of all Customer types that receive Collection service from the Company. Activity Description Distribution/Frequency Newsletter (Brightside) (Third Party Vendor use may be Required by City) Produce and distribute advertisements that explain services, programs and opportunities to maximize services, programs and information to assist City with outreach compliance for various Applicable Laws related to Mandatory Recycling and Organics, including but not limited to SB 1383 (Section 5.3.1). At least one (1) insert will meet the public education and outreach requirement specifications included in SB 1383 for annual noticing. The April insert shall promote the annual neighborhood cleanup event. 4 Full Page inserts during months agreed upon with City. Public Service Announcement Distribute one (1) public service announcement to promote Recycling awareness or other topics as agreed. One (1) time annually. Holiday Press Release Distribute a press release to advertise and promote service impacts and programs. Holiday closures, service impacts and/or program promotions Six (6) Holiday Closure Service Impacts. Corrective Action Notices – “Oops Tag” Produce and distribute a Notice for use in instances where the Customer includes Prohibited Container Contaminants in a Container or fails to properly prepare Containers (Section 4.7.9 and Section 5.5.2.1.C). As needed. Biennial Recycling Brochure (Third Party Vendor Use Required) Produce and distribute a “Recycling Guide”. This guide can include information such as Collection methodologies, set out instructions, contact information, and acceptability and necessary preparation of materials for all sectors in the community. A section of the guide will specifically address proper methods of handling and Disposal of Hazardous Wastes and other programs and services as it pertains to meeting City Diversion goals (Section 5.3.1). Biennial. First year to commence in 2022 via direct mail to each Property Owner. Mailed to each property that is sold in a year or mail a letter with website information and the option to request a brochure. Website Company to prepare a section of its website where it will present Customers with educational and Diversion programs, upcoming outreach events, services, and resources specific to City. Website must include Company Customer service contact, Updated as mutually agreed Page 499 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-5 March 10, 2022 Activity Description Distribution/Frequency material on source reduction of household Solid Waste and relevant legislative requirements (Section 5.3.1). Company to make available an interface where tax roll billed Customers can look-up their account and monthly charges by property number. Page 500 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-6 March 10, 2022 Public Education and Outreach | Residential Education and Outreach Activities Activity Description Distribution/Frequency New Programs Mailing (Third Party Vendor Use Required) Produce and distribute a mailing to Single-Family Customers, which may include content such as explaining the program changes, regulatory requirements, including SB 1383; and the effective date of the change. Company may include its holiday schedule and the Recycling guide. One (1) time (30 days prior to Commencement Date of SB 1383 program deliverables) via direct mail to Property Owner. New Customer Welcome Kit (Third Party Vendor Use Required) Company to produce and distribute a new Customer welcome kit specific to residents. Company to be responsible for providing kits to renters or Owners of properties that recently transitioned occupancy in digital format, or in print upon Customer request. Company must annually notice Customers of the Welcome kits via at least one (1) annual mailing that can be combined with another outreach requirement of the Agreement. Welcome kits to be made available in digital format on Company website and provided to City for inclusion on the City’s website. As needed. Corrective Action Notices– “Oops Tag” Produce and distribute a Customer-oriented notice for use in instances where the Customer includes Prohibited Container Contaminants in a Container or fails to properly prepare Containers (Section 4.7.9 and Section 5.5.2.1.C). As needed. Mandatory Recycling and Organics Outreach Activities Produce and distribute outreach materials containing information to assist City with outreach compliance for various Applicable Laws related to mandatory Recycling and Mandatory Organic Waste Diversion, including but not limited to SB 1383 (Section 5.3.1). Distributed during technical assistance Diversion opportunity assessments. “How-to” Guide on proper handling of materials (Third Party Vendor Use Required) Produce and distribute a “how-to” guide on proper Source Separation of Recycling/Organic Materials (Section 5.3.1), handling and Disposal of Household Hazardous Waste, E-Waste, and U-Waste directly to residents (Section 5.3.1). Available electronically, published in annual mailing (included as part of welcome kit and/or in brochure), and used as distribution material. Page 501 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-7 March 10, 2022 Public Education and Outreach | Multi-Family Education and Outreach Activities Description Purpose Distribution/Frequency Technical Assistance: Diversion Opportunity Assessments Offer Diversion opportunity assessments at least one (1) time annually to all Customers to meet with the property manager or Owner to promote Recyclable and Organic Materials Collection. Offer direct contact opportunities to Customers, as needed. New Customer Welcome Kit (Third Party Vendor Use Required) Produce, distribute. and make available in digital and, upon request, printed welcome kits for Property Owners of Commercial businesses and managers of Multi-Family Premises to provide new tenants. Move-in kits may include, at a minimum if not only requested digitally, a “How-to” guide and decal that clearly define the accepted and prohibited materials in the Company’s programs. Company must annually notice Customers of the Welcome kits via at least one (1) annual mailing that can be combined with another outreach requirement of the Agreement. Welcome Kits to be made available in digital format on Company website and provided to City for inclusion on the City’s website. Distributed during technical assistance Diversion opportunity assessments. Workshops Offer and respond to requests for on-site meetings and workshops. Company may conduct workshops for Customers that will show property managers and residents, how to use the Recycling and Organics program and will provide resources for additional information and support. At Customer’s request. Page 502 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-8 March 10, 2022 Public Education and Outreach | Commercial Education and Outreach Activities Description Purpose Distribution/Frequency “How-to” Flyer: Recyclable Materials (Third Party Vendor Use Required) Can be combined with Organic Materials flyer below Prepare and distribute a “how-to” flyer explaining the Recycling Materials Collection programs for each general business sector type. Distributed during Diversion opportunity assessments. As requested and needed. “How-to” Flyer: Organic Materials (Third Party Vendor Use Required) Can be combined with Recyclable Materials Flyer above Prepare and distribute a flyer describing the Organic Materials Collection services available and how to prepare Organic Materials for Collection for each general business sector type (Section 5.3.1). Distributed during Diversion opportunity assessments. As requested and needed. Recycling Organics Posters (Third Party Vendor Use Required) Produce and distribute (during Diversion opportunity assessments) Recycling Organics posters that provide graphic illustrations of acceptable and prohibited materials within each program. Distributed during Diversion opportunity assessments as requested and needed. Bill Notices by Company Prepare and distribute quarterly bill messages that creatively inform Commercial Customers about such topics as: cost savings available from source reduction, Reuse, and Recycling; tips for overcoming common operational challenges businesses have with Recycling and Organics programs (Section 5.3.1). One (1) time per quarter via direct mail to each Commercial Customer in City. Corrective Action Notices – OOPs Tag Produce a Customer oriented corrective action notice for use in instances where the Customer includes Prohibited Container Contaminants materials in a Container or fails to properly prepare or set-out Containers (Section 4.7.9 and Section 5.5.2.1.C). As needed. Page 503 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-9 March 10, 2022 Description Purpose Distribution/Frequency Mandatory Recycling and Organics Outreach Activities Company must disseminate outreach materials related to the mandatory nature of Recyclable Materials and Organic Materials Collection services. Such outreach to be designed to assist the City in complying with the outreach requirements of various Applicable Laws related to the mandatory provision of Recyclable Materials and Organic Materials Collection and Diversion services (Section 5.3.1). One (1) time annually. Commercial Edible Food Generator Education (Third Party Vendor Use Required) Company shall provide Customers that are Commercial Edible Food Generators with the following: 1. City’s Edible Food Recovery program fact sheet; Information about the Commercial Edible Food Generator requirements under 14 CCR, Division 7, Chapter 12, Article 10; Information about Food Recovery Organizations and Food Recovery Services operating within the City, and where a list of those Food Recovery Organizations and Food Recovery Services can be found; and, information about actions that Commercial Edible Food Generators can take to prevent the creation of Food Waste (Section 5.6). One (1) time annually; or more frequently upon Customer request. Newsletter (Brightside) – Same inserts as Residential/Multi- Family (Third Party Vendor use may be Required by City) Produce and distribute advertisements that explains services, programs and opportunities to maximize services, and programs and information to assist City with outreach compliance for various Applicable Laws related to Mandatory Recycling and Organics, including but not limited to SB 1383. At least one (1) insert will meet the public education and outreach requirement specifications included in SB 1383 for annual noticing. Multi-Family inserts are to be provided to each dwelling unit located within the City (Section 5.3.1). 4 full page inserts during months agreed upon with City. Workshops Offer and respond to requests for on-site meetings and workshops. Company may conduct workshops for Customers that will show property managers and residents, how to use the Recycling and Organics program and will provide resources for additional information and support. At Customer’s request. Page 504 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-10 March 10, 2022 Description Purpose Distribution/Frequency Technical Assistance: Diversion Opportunity Assessments Offer Diversion opportunity assessments at least one (1) time annually to meet with the property manager or Owner to promote Recyclable and Organic Materials Collection. Offer direct contact opportunities to Customers, as needed. Page 505 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-11 March 10, 2022 Public Education and Outreach | Special Events/City-Wide Outreach Description Purpose Distribution/Frequency Community Event Exhibits Company to staff an exhibit booth and distribute promotional and educational materials at special events mutually agreed by Company and City. Company may provide visual displays, copies of educational materials (including all guides, flyers, and brochures produced for this Agreement), and Recycling education activities appropriate to a variety of age groups (Section 5.3.3). All special events listed below. • City Concerts in the Park (attend minimum of two per series in May Concert Series and October Concert Series) • Independence Day Celebration • Farmers Market (attend once per month October through May) • Golf Cart Parade • Up to six additional events per year as requested by the City Truck-Sign Advertising Implement a City-wide truck-sign advertising campaign to educate the public about Company’s programs under this Agreement. Campaign content should be coordinated, in terms of both message, timing and located on Residential/Commercial vehicles. If the City wishes to update signs more than one (1) time per year, City will pay for additional truck signs (Section 5.3.1). New Truck Campaign Annually. City Sponsored Events The Company shall provide Refuse, Recycling, and Organic Materials Collection, Processing and Disposal services at up to six (6) individual City- sponsored, not for profit events each year. City shall designate the six (6) events. In addition to providing Collection services, the Company shall provide portable toilet and sink service at up to four (4) individual City-sponsored events (Section 4.7.3). Six (6) events annually Medication Takeback Program Company will assist the City in increasing awareness of medication takeback programs provided by local pharmacies, or programs offered by other government entities. Promotional activities will include posting on Company’s Ongoing in various outreach. Page 506 EXHIBIT 2 PUBLIC EDUCATION & OUTREACH PLAN City of Palm Desert 2-12 March 10, 2022 Description Purpose Distribution/Frequency website, inclusion in the outreach materials mailed to each Residential Premises Customer, Billing inserts, social media targeted outreach, and press releases to local news outlets (Section 4.7.15). Large Venue and Event Assistance Company will assist City planners of Large Events and events at Large Venues with reporting and planning needs to provide Recycling and Organics Materials Collection service and Diversion as may be useful in meeting the requirements of AB 2176 and SB 1383, and in lowering Disposal quantities generated at such events. If needed or requested. Recycle Coach Company is responsible for updating Recycle Coach when accepted materials change, holidays alter regular service, or other changes are made to service. Company to notify City of changes to service or modified Collection activities. Company may utilize the app to send e-blasts to subscribed Customers. E- blasts must be approved in advance by City before distribution. As needed. Page 507 EXHIBIT 3: INITIAL RATES Page 508 Page 509 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-1 March 10, 2022 3A. Residential Service Rate Sheet 3B. Commercial Service Rate Sheet 3C. Roll-off Box Service Rate Sheet Page 510 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-2 March 10, 2022 3A – Residential Maximum Rates Rate Category Individually Billed Customers (Tax Roll Billed) - 96 Gallon Carts 13.30$ per unit per month 15.13$ per unit per month* - 64 Gallon Carts 10.65$ per unit per month 12.48$ per unit per month* - 32 Gallon Carts 7.97$ per unit per month 9.80$ per unit per month* Marrakesh Rate (2x/week Collection)27.60$ per unit per month 29.43$ per unit per month* Automated Walk-in Fee - for Three Carts 22.00$ per unit per month 22.00$ per unit per month Automated Walk-in Fee - additional Carts 11.00$ per cart per month 11.00$ per cart per month M anual Refuse Curbside Service Manual Refuse Curbside Service 14.63$ per unit per month 16.46$ per unit per month* Manual Walk-in Service 25.61$ per unit per month 27.44$ per unit per month* Manual In-Ground Can 24.30$ per unit per month 26.13$ per unit per month* M aster-Billed Customers - 96 Gallon Carts 11.84$ per unit per month 13.67$ per unit per month* - 64 Gallon Carts 9.47$ per unit per month 11.30$ per unit per month* - 32 Gallon Carts 7.11$ per unit per month 8.94$ per unit per month* Automated Walk-in Fee - for Three Carts (4)19.58$ per unit per month 19.58$ per unit per month M anual Refuse Curbside Service - Single Family or Multi-Family 1x/wk. Collection 13.03$ per unit per month 14.86$ per unit per month* - Single Family or Multi-Family 2x/wk. Collection 17.16$ per unit per month 18.99$ per unit per month* - Mobile Home Park 11.84$ per unit per month 13.67$ per unit per month* - Manual In-Ground Can 16.57$ per unit per month 18.40$ per unit per month* - Manual In-Ground Can 2x/wk. Collection 20.72$ per unit per month 22.55$ per unit per month* Refuse Carts - 96 Gallon Carts 6.66$ per cart per month 6.66$ per cart per month - 64 Gallon Carts 5.32$ per cart per month 5.32$ per cart per month - 32 Gallon Carts 4.01$ per cart per month 4.01$ per cart per month Organic Materials or Recyclable Materials Cart -$ per cart per month 2.95$ per cart per month Other Residential Services Extra Pick-up of all Carts (upon Customer request only) $ 50.00 per pickup $ 50.00 per pickup Residential Cart Contamination fee $ 10.00 per cart per occurrence $ 10.00 per cart per occurrence Replacement Kitchen Pail (upon Customer request only) Bulky Item Pick-ups Single-Family - includes four items no charge no charge Multi-Family Complex - includes four items (per Section 4.5.2)no charge no charge Bulky Items - Over allotted 4 items per pickup 14.91$ per additional item 14.91$ per additional item Bulky Item Pick-up - Multi-Family Complexes over allotted pick-ups per Section 4.5.2 (4 item limit)62.88$ per pickup 62.88$ per pickup Restart Fee - (2)21.26$ per occurrence 21.26$ per occurrence Returned Check Fee 25.26$ per check 25.26$ per check Cart Exchange - Entire HOA Section 4.3.1.2 6.00$ per cart 6.00$ per cart HHW Service Charge (3)19.58$ per stop 19.58$ per stop (1) Per unit for single and Multi-Family Dwellings with Cart service. (2) Following voluntary or involuntary suspension of service. (3) Company to invoice the City for at-home HHW Collection service per section 4.7.14.A.9. * These Residential rates are subject to the special rate adjustment phase-in identified in Section 6.9. (4) Disabled Persons, identified as those meeting the DMV requirement for N1-Permanent disabled parking placard, shall receive such service for no additional charge per Section 4.3.4. Additional Residential Carts for Individual or M aster-Billed Customers Automated Cart Service - Includes one Refuse, one Recycling, and one Organic M aterials Cart (1) Automated Cart Service Based on Refuse Cart Size - Includes one Refuse, one Recycling, and one Organic M aterials Cart (1) Customer Rates (April 1, 2022 - June 30, 2022) Actual Contractor cost plus $7.00 delivery fee Customer Rates (July 1, 2022 - June 30, 2023) Actual Contractor cost plus $7.00 delivery fee Page 511 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-3 March 10, 2022 3B – Commercial Maximum Rates 1 2 3 4 5 6 Refuse Cart 15.14$ 30.24$ 45.41$ 60.52$ 75.66$ 90.81$ 15.40$ 2 Cubic Yard Bin 96.22$ 168.71$ 241.74$ 314.01$ 386.82$ 506.40$ 45.03$ 3 Cubic Yard Bin 126.71$ 226.41$ 295.31$ 416.13$ 516.36$ 616.25$ 61.69$ 4 Cubic Yard Bin 174.20$ 292.34$ 414.44$ 536.99$ 687.67$ 771.56$ 83.37$ 6 Cubic Yard Bin 264.00$ 443.82$ 630.02$ 816.09$ 986.14$ 1,174.21$ 125.09$ * % of Trash Service Rate:35.00% 1 2 3 4 5 6 Recycle Cart 5.30$ 10.59$ 15.89$ 21.18$ 26.48$ 31.78$ 5.39$ 2 Cubic Yard Bin 33.68$ 59.05$ 84.61$ 109.90$ 135.39$ 177.24$ 15.76$ 3 Cubic Yard Bin 44.35$ 79.24$ 103.36$ 145.64$ 180.73$ 215.69$ 21.59$ 4 Cubic Yard Bin 60.97$ 102.32$ 145.05$ 187.95$ 240.68$ 270.04$ 29.18$ 6 Cubic Yard Bin 92.40$ 155.34$ 220.51$ 285.63$ 345.15$ 410.97$ 43.78$ Extra Pickup Extra Pickup Container Size Container Size Commercial Recycling Service Rates - Effective April 1, 2022 - June 30, 2023 Pickups per Week Pickups per Week Commercial Solid Waste Service Rates - Effective April 1, 2022 - June 30, 2023 Page 512 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-4 March 10, 2022 3B – Commercial Maximum Rates 1 2 3 4 5 Greenwaste Only Cart 11.83$ 23.61$ 35.45$ 47.25$ 59.08$ 11.92$ 1 - 64-Gallon Cart 74.81$ 149.56$ 224.33$ 299.09$ 373.88$ 21.80$ 2 - 64-Gallon Carts 133.66$ 267.32$ 400.97$ 534.65$ 668.30$ 40.85$ 3 - 64-Gallon Carts 188.59$ 389.06$ 565.76$ 754.35$ 942.96$ 55.09$ 4 - 64-Gallon Carts 235.58$ 471.12$ 706.70$ 942.27$ 1,177.84$ 73.47$ Additional 64-Gallon Carts (above 4, per Cart)57.12$ 114.12$ 171.31$ 228.39$ 285.50$ 91.81$ 1 Cubic Yard Bin 168.30$ 322.31$ 490.61$ 658.91$ 827.22$ 50.49$ 2 Cubic Yard Bin 218.71$ 423.12$ 641.83$ 860.54$ 1,079.25$ 65.61$ Rate 166.73$ 166.73$ (Refuse Extra Pickup Charge) 24.46$ 25.44$ 11.45$ 50.06$ 115.13$ Other Commercial Service Rates - Effective April 1, 2022 - June 30, 2023 Re-Start Fee - following voluntary or involuntary suspension of service Temporary Front End Load Bin - additional dumps Contaminated Recycling Or Organic Materials Container Charge - per Container Extra PickupContainer Size Commercial Organic Materials Service Rates - Effective April 1, 2022 - June 30, 2023 Returned Check Fee Bin Cleaning/Enclosure Clean-up Charge - for overflowed bins, after required warnings Emergency Service - hourly rate for one crew member and one collection truck Locking Bin Fee - Monthly charge based on number of pick-ups/wk. Description Pickups per Week Temporary Front End Load Bin - initial delivery, pickup, and disposal Page 513 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-5 March 10, 2022 3C – Roll-Off and Temporary Service Maximum Rates Rate Per Pull or Per Ton 175.62$ 166.80$ 283.44$ actual cost (a) Source Separated Recyclable Materials Per Ton Charge actual cost actual cost Organic Materials Per Ton Charge actual cost actual cost Rate Billed at Trash Rate 24.90$ 10.81$ 25.44$ Roll Off Service Rates - Effective April 1, 2022 - June 30, 2023 Other Roll-Off Service Rates - Effective April 1, 2022 - June 30, 2023 Roll-Off Delivery, Relocation Charge, Re-Start Fee Construction and Demolition Disposal Charge Description Greenwaste Only Per Ton Charge Roll-Off Organic Materials and Recyclable Materials Contamination Fee - Does not apply to C& D Debris Customers who need their materials Processed to achieve the CalGreen requirements. Returned Check Fee Rental Fee Per Day for Refuse (a) The Disposal charge per ton includes: landfill tipping fee (actual cost) plus $8.25 per ton. (b) Temporary Roll-Off Customers may be charged a delivery charge, a pull charge, plus four tons (4) of Disposal or applicable material per ton charge. If tonnage is less than four (4) tons or greater than four (4) tons, the customer will be credited/charged accordingly. (c) Roll-Off Customers may be charged a Roll-Off Box rental fee after seven (7) business days if there has been no pulls within the 7- day period. Roll-Off Customers who are using Roll-Off Boxes for Recyclable Materials or Organic Materials are not charged this rental fee. Compactor Pull Charge (c) Landfill Disposal Charge Description Standard Refuse Pull Charge (b and c) Standard Recyclable Materials/Organic Materials/Construction & Demolition Pull Charge (b and c) Page 514 EXHIBIT 4: RATE ADJUSTMENT FORMULA Page 515 Page 516 EXHIBIT 4. RATE ADJUSTMENT FORMULA City of Palm Desert 4-1 March 10, 2022 4A. Residential Rate Adjustment 4B. Commercial Rate Adjustment 4C. Roll-off Box and Other Services Rate Adjustments Page 517 EXHIBIT 4. RATE ADJUSTMENT FORMULA City of Palm Desert 4-2 March 10, 2022 EXHIBIT 4A Residential Rate Adjustment Annual Amount (a) Gross Residential Rate Revenue 4,003,231$ Residential Franchise, VIF, City Recycle Fees and Taxroll Credits (b)799,747$ Residential Rate Revenue Net of Fees and Credits 3,203,484$ Revenue Component (net of Franchise Fees) Residential Rate Revenue Net of Fees (c) Less: Actual Residential Refuse Disposal Expense Residential Service Revenue Adjustment Factor Old New Index Change Rate Component Percent Change (d) Disposal Tipping Fee per Ton 47.55$ 48.97$ 1.42$ 2.99% Garbage and Trash Collection Index (Capped at 5%) (a)486.708 508.190 21.48 4.41% Components of Actual Revenue Component Weight (e) Weighted Rate Adjustment Refuse Disposal 20.42%0.61% Service 79.58%3.51% % Change 100.00%4.12% Total Rate % Adjustment 4.12% Service (g) Current Monthly Rate (h) Weighted Rate Adjustment (i) Rate Change Adjusted Monthly Rate (j) 90-gallon automated cart collection $12.74 4.12% $0.52 $13.26 Manual curbside collection $13.95 4.12% $0.57 $14.52 Walk-in service fee $10.53 4.12% $0.43 $10.96 (b) City fees to be calculated per Section 3.1 of the Agreement. (c) From Step One above. (d) "Index Change" multiplied by "Allowable Portion of Index Change." (e) From "Percentage of Rate Revenue Net of Franchise Fees" in Step Two. (f) From last column in Step Three. (g) Not all rate categories are shown in this example. (h) The weighted rate adjustment should be applied to the total rate, including all fees. (i) From weighted rate adjustment in Step Four. (j) "Current Monthly Rate" plus "Rate Change." (a) CUUR0000SEHG02 Garbage and trash collection in U.S. city average, all urban consumers, not seasonally adjusted. For the twelve months ending the December before the July 1 rate adjustment. Revenue Component (including Franchise Fees) Example Only 79.58% Step Three: Calculate percentage change in adjustment factors Step Four: Calculate weighted percentage change in single family rates Rate Component Percent Change (f) 2.99% 654,090$ 20.42% 2,549,394$ Step One: Deduct City fees from gross rate revenue 3,203,484$ 100.00% 4.41% Step Five: Apply weighted percentage change to single family rates Step Two: Determine disposal expense and service revenue Annual Amount Percentage of Rate Revenue Net of City Fees Page 518 EXHIBIT 4. RATE ADJUSTMENT FORMULA City of Palm Desert 4-3 March 10, 2022 EXHIBIT 4B Commercial Rate Adjustment (Refuse, Recycling, and Organic Materials Rates) Example Only Annual Amount (a) Gross Commercial and Multi-Family Rate Revenue 5,469,563$ Commercial and Multi-Family Franchise, VIF and City Recycle Fees (b)770,243$ Commercial and Multi-Family Rate Revenue Net of Fees 4,699,320$ Annual Amount Rate Revenue Net of Commercial and Multi-Family Rate Revenue Net of Fees (c) 4,699,320$ 100.00% Less: Actual Commercial and Multi-Family Disposal Expense 1,254,570$ 26.70% Commercial and Multi-Family Service Revenue less Disposal 3,444,751$ 73.30% Adjustment Factor Old New Index Change Rate Component Percent Change (d) Disposal Tipping Fee per Ton 47.55$ 48.97$ 1.42$ 2.99% Garbage and Trash Collection Index (a)486.708 508.190 21.48 4.41% Components of Actual Revenue Component Weight (e) Weighted Rate Adjustment Refuse Disposal 26.70%0.80% Service 73.30%3.24% Total 100.00%4.04% Service (g)Current Monthly Rate (h) Weighted Rate Adjustment (i) Rate Change Adjusted Monthly Rate (j) One 3-yard Refuse Bin 1x/week $115.33 4.04%$4.66 $119.99 One 3-yard Refuse Bin 2x/week $206.06 4.04%$8.32 $214.38 One 3-yard Refuse Bin 3x/week $268.78 4.04% $10.86 $279.64 One 3-yard Refuse Bin 4x/week $378.73 4.04% $15.30 $394.03 One 3-yard Refuse Bin 5x/week $469.96 4.04% $18.99 $488.95 One 3-yard Refuse Bin 6x/week $560.87 4.04% $22.66 $583.53 One 64-gallon Organic Materials Cart 1x/week $70.84 4.04%$2.86 $73.70 Extra Refuse Bin 3-yard empty $56.15 4.04%$2.27 $58.42 (b) City fees to be calculated per Section 3.1 of the Agreement. (c) From Step One above. (d) "Index Change" multiplied by "Allowable Portion of Index Change." (e) From "Percentage of Rate Revenue Net of Franchise Fees" in Step Two. (f) From last column in Step Three. (g) Not all rate categories are shown in this example. (h) The weighted rate adjustment should be applied to the total rate, including all fees. (i) From weighted rate adjustment in Step Four. (j) "Current Monthly Rate" plus "Rate Change." Step One: Deduct City fees from gross rate revenue Step Two: Determine disposal expense and service revenue (a) CUUR0000SEHG02 Garbage and trash collection in U.S. city average, all urban consumers, not seasonally adjusted. For the twelve months ending the December before the July 1 rate adjustment. Capped at 5%. Revenue Component (including franchise fees) Revenue Component (net of Franchise Fees) Step Five: Apply weighted percentage change to commercial and multi-family rates 4.41% Step Four: Calculate weighted percentage change in single family rates Step Three: Caluclate percentage change in adjustment factors 2.99% Rate Component Percent Change (f) Page 519 EXHIBIT 4. RATE ADJUSTMENT FORMULA City of Palm Desert 4-4 March 10, 2022 EXHIBIT 4C Roll-Off Box and Other Services Rate Adjustments Step One: Calculate percentage change in CUUR0000SEHG02 Garbage and trash collection in U.S. city average Adjustment Factor Old New Index Change Allowable Portion of Index Change Rate Component Percent Change (b) Garbage and Trash Collection Index (Capped at 5%) (a)486.708 508.190 21.48 100.0% 4.41% Step Two: Apply 100% of percentage change in Garbage and trash collection Index to Service Portion of Roll-off Rates Current Monthly Rate Weighted Rate Adjustment (h)Rate Change Adjusted Monthly Rate Standard Roll-off Charge Per Load (20yd to 30yd box) (b)152.83$ 4.41%$6.75 $159.58 Standard Roll-off Charge Per Load (40yd Box)) (b)160.92$ 4.41%$7.10 $168.02 Compactor Charge Per Load 259.70$ 4.41% $11.46 $271.16 Relocation Charge 22.81$ 4.41%$1.01 $23.82 Delivery Charge 22.81$ 4.41%$1.01 $23.82 * Note: Rate adjustment for "Other Services" not shown, but the adjustment would follow the same methodology. (b) Excluding Disposal. Disposal is billed at actual cost based on the tipping fee per ton at landfill used by the Company, plus $8.25/ton, multiplied by the number of tons. Example Only* (a) CUUR0000SEHG02 Garbage and trash collection in U.S. city average, all urban consumers, not seasonally adjusted. For the twelve months ending the December before the July 1 rate adjustment. Service Page 520 EXHIBIT 5: CORPORATE GUARANTY Page 521 Page 522 EXHIBIT 5. CORPORATE GUARANTY City of Palm Desert 5-1 March 10, 2022 Guaranty THIS GUARANTY (the “Guaranty) is given as of the ____ day of ____, 2022. THIS GUARANTY is made with reference to the following facts and circumstances: A. Burrtec Waste and Recycling, LLC, hereinafter (“Owner”) is a corporation organized under the laws of the State of California, and is an Affiliate of Burrtec Waste Group, Inc. (Guarantor). B. Owner and the City of Palm Desert (“the City”) have negotiated an Agreement for Collection, Processing, and Disposal of Solid Waste dated as of _______________, (hereinafter “Agreement”). A copy of this Agreement is attached hereto. C. It is a requirement of the Agreement, and a condition to the City entering into the Agreement, that Guarantor guaranty Owner’s performance of the Agreement. D. Guarantor is providing this Guaranty to induce the City to enter into the Agreement. NOW, THEREFORE, in consideration of the foregoing, Guarantor agrees as follows: 1. Guaranty of the Agreement. Guarantor hereby irrevocably and unconditionally guarantees to the City the complete and timely performance, satisfaction and observation by Owner of each and every term and condition of the Agreement which Owner is required to perform, satisfy or observe. In the event that Owner fails to perform, satisfy or observe any of the terms and conditions of the Agreement, Guarantor will promptly and fully perform, satisfy or observe them in the place of the Owner or cause them to be performed, satisfied or observed. Guarantor hereby guarantees payment to the City of any damages, costs or expenses which might become recoverable by the City from Owner due to its breach of the Agreement. 2. Guarantor’s Obligations Are Absolute. The obligations of the Guarantor hereunder are direct, immediate, absolute, continuing, unconditional and unlimited, and with respect to any payment obligation of Owner under the Agreement, shall Page 523 EXHIBIT 5. CORPORATE GUARANTY City of Palm Desert 5-2 March 10, 2022 constitute a guarantee of payment and not of Collection, and are not conditional upon the genuineness, validity, regularity or enforceability of the Agreement. In any action brought against the Guarantor to enforce, or for damages for breach of, its obligations hereunder, the Guarantor shall be entitled to all defenses, if any, that would be available to the Owner in an action to enforce, or for damages for breach of, the Agreement (other than discharge of, or stay of proceedings to enforce, obligations under the Agreement under bankruptcy law). 3. Waivers. Except as provided herein the Guarantor shall have no right to terminate this Guaranty or to be released, relieved, exonerated or discharged from its obligations under it for any reason whatsoever, including, without limitation: (1) the insolvency, bankruptcy, reorganization or cessation of existence of the Owner; (2) the actual or purported rejection by a trustee in bankruptcy of the Agreement, or any limitation on any claim in bankruptcy resulting from the actual or purported termination of the Agreement; (3) any waiver with respect to any of the obligations of the Agreement guaranteed hereunder or the impairment or suspension of any of the City’s rights or remedies against the Owner; or (4) any merger or consolidation of the Owner with any other corporation, or any sale, lease or transfer of any or all the assets of the Owner. Without limiting the generality of the foregoing, Guarantor hereby waives the rights and benefits under California Civil Code Section 2819. The Guarantor hereby waives any and all benefits and defenses under California Civil Code Section 2846, 2849, and 2850, including without limitation, the right to require the City to (a) proceed against Owner, (b) proceed against or exhaust any security or collateral the City may hold now or hereafter hold, or (c) pursue any other right or remedy for Guarantor’s benefit, and agrees that the City may proceed against Guarantor for the obligations guaranteed herein without taking any action against Owner or any other guarantor or pledgor and without proceeding against or exhausting any security or collateral the City may hold now or hereafter hold. City may unqualifiedly exercise in its sole discretion any or all rights and remedies available to it against Owner or any other guarantor or pledgor without impairing the City’s rights and remedies in enforcing this Guaranty. The Guarantor hereby waives and agrees to waive at any future time at the request of the City to the extent now or then permitted by Applicable Law, any and all rights which the Guarantor may have or which at any time hereafter may be conferred Page 524 EXHIBIT 5. CORPORATE GUARANTY City of Palm Desert 5-3 March 10, 2022 upon it, by statute, regulation or otherwise, to avoid any of its obligations under, or to terminate, cancel, quit or surrender this Guaranty. Without limiting the generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not affect the liability of the Guarantor hereunder: (a) at any time or from time to time, without notice the Guarantor, performance or compliance herewith is waived; (b) any other of any provision of its Agreement indemnification with respect to Owner’s obligations under the Agreement or any security therefore is released or exchanged in whole or in part or otherwise dealt with; or (c) any assignment of the Agreement is effected which does not require the City’s approval. The Guarantor hereby expressly waives, diligence, presentment, demand for payment or performance, protest and all notices whatsoever, including, but not limited to, notices of non-payment or non-performance, notices of protest, notices of any breach or default, and notices of acceptance of this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed, Guarantor’s obligations hereunder shall continue and remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from the City as a preference, fraudulent transfer or otherwise, irrespective of (a) any notice of revocation given by Guarantor or Owner prior to such avoidance or recovery, and (b) payment in full of any obligations then outstanding. 4. Term. This Guaranty is not limited to any period of time, but shall continue in full force and effect until all of the terms and conditions of the Agreement have been fully performed or otherwise discharged and Guarantor shall remain fully responsible under this Guaranty without regard to the acceptance by the City of any performance bond or other collateral to assure the performance of Owner’s obligations under the Agreement. Guarantor shall not be released of its obligations hereunder so long as there is any claim by the City against Owner arising out of the Agreement based on Owner’s failure to perform which has not been settled or discharged. 5. No Waivers. No delay on the part of the City in exercising any rights under this Guaranty or failure to exercise such rights shall operate as a waiver of such rights. No notice to or demand on Guarantor shall be a waiver of any obligation of Guarantor or right of the City to take other or further action without notice or demand. No modification or waiver of any of the provisions of this Guaranty shall be effective Page 525 EXHIBIT 5. CORPORATE GUARANTY City of Palm Desert 5-4 March 10, 2022 unless it is in writing and signed by the City and by Guarantor, nor shall any waiver be effective except in the specific instance or matter for which it is given. 6. Attorney’s Fees. In addition to the amounts guaranteed under this Guaranty, Guarantor agrees in the event of Guaranty’s breach of its obligations including to pay reasonable attorney’s fees and all other reasonable costs and expenses incurred by the City in enforcing this Guaranty, or in any action or proceeding arising out of or relating to this Guaranty, including any action instituted to determine the respective rights and obligations of the Parties hereunder. 7. Governing Law: Jurisdiction. This Guaranty is and shall be deemed to be a contract entered into in and pursuant to the laws of the State of California and shall be governed and construed in accordance with the laws of California without regard to its conflicts of laws, rules for all purposes including, but not limited to, matters of construction, validity and performance. Guarantor agrees that any action brought by the City to enforce this Guaranty may be brought in any court of the State of California and Guarantor consents to personal jurisdiction over it by such courts. Guarantor appoints the following person as its agents for service of process in California: ___________ ___________ ___________ ___________ With a copy by certified mail to: ___________ ___________ ___________ ___________ 8. Severability. If any portion of this Guaranty is held to be invalid or unenforceable, such invalidity will have no effect upon the remaining portions of this Guaranty, which shall be severable and continue in full force and effect. 9. Binding On Successors. This Guaranty shall inure to the benefit of the City and its successors and shall be binding upon Guarantor and its successors, including transferee(s) of substantially all of its assets and its shareholder(s) in the event of its dissolution or insolvency. Page 526 EXHIBIT 5. CORPORATE GUARANTY City of Palm Desert 5-5 March 10, 2022 10. Authority. Guarantor represents and warrants that it has the corporate power and authority to give this Guaranty, that its execution of this Guaranty has been authorized by all necessary action under its Article of Incorporation and By-Laws, and that the Person signing this Guaranty on its behalf has the authority to do so. 11. Notices. Notice shall be given in writing, deposited in the U.S. mail, registered or certified, first class postage prepaid, addressed as follows: To the City: City Manager City of Palm Desert 3510 Fred Waring Drive Palm Desert, CA 92260 with a copy to the City Counsel at the same address. To the Guarantor: ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ By: ______________________ (title) By: ______________________ (title) Commented [HK1]: TBD Page 527 EXHIBIT 6: COMPANY’S FAITHFUL PERFORMANCE BOND Page 528 Page 529 EXHIBIT 6. COMPANY’S FAITHFUL PERFORMANCE BOND City of Palm Desert 6-1 March 10, 2022 KNOW ALL MEN BY THESE PRESENTS: That , a California , as PRINCIPAL, and , a Corporation organized and doing business by virtue of the laws of the State of California, and duly licensed for the purpose of making, guaranteeing, or becoming sole surety upon bonds or undertakings required or authorized by the laws of the State of California, as SURETY, are held and firmly bound to City, hereinafter called OBLIGEE, in the penal sum of One Million Dollars($1,000,000.00) lawful money of the United States, for the payment of which, well and truly to be made, we and each of us hereby bind ourselves, and our and each of our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH THAT: WHEREAS, the above bounden PRINCIPAL has entered into an Agreement, entitled "INTEGRATED SOLID WASTE MANAGEMENT SERVICES" with the City of Palm Desert, to do and perform the following work, to wit: Collect, Process and Dispose of Solid Waste generated within City, in accordance with the Agreement. NOW, THEREFORE, if the above bounden PRINCIPAL shall well and truly perform, or cause to be performed each and all of the requirements and obligations of said Agreement to be performed by said PRINCIPAL, as in said Agreement set forth, then this BOND shall be null and void; otherwise it will remain in full force and effect. And the said Surety, for value received hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any wise affect its obligations on this BOND, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the work or to the specifications. IN WITNESS WHEREOF, said PRINCIPAL and said SURETY have caused these presents to be duly signed and sealed this DAY OF , 2022. Page 530 EXHIBIT 6. COMPANY’S FAITHFUL PERFORMANCE BOND City of Palm Desert 6-2 March 10, 2022 a California Corporation SURETY By: By: (PRINCIPAL) (ATTORNEY IN FACT) (SEAL) (SEAL) Page 531 EXHIBIT 7: NOTARY CERTIFICATION Page 532 Page 533 EXHIBIT 7. NOTARY CERTIFICATION City of Palm Desert 7-1 March 10, 2022 CITY TO REPLACE WITH CURRENT NOTARY FORM SO INCORRECT EXHIBIT LISTED ABOVE WILL BE REMOVED STATE OF CALIFORNIA COUNTY OF ss: On , , before me, the undersigned, a Notary Public in and for the State of California, personally appeared , known to me to be the of the Company that executed the within instrument on behalf of the Company therein named, and acknowledged to me that such the Company executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal in the County of this day of , . Notary Public My Commission Expires: Commented [HK2]: City Note Page 534 EXHIBIT 8: PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS Page 535 Page 536 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-1 March 10, 2022 Company has selected and arranged with City approval for Discarded Materials to be Transported to Approved Facilities for transfer, Source Separated Recyclable Materials Processing, Source Separated Organic Materials Processing, C&D Processing, and Disposal. The Approved Facilities which are owned by the Company or its Affiliates (“Affiliated Approved Facilities”) shall comply with the standards specified in this Exhibit. Pursuant to Article 4 of the Agreement, if the Company does not own or operate one or more of the Approved Facilities, “Third Party Approved Facilities,” which as of the date hereof includes the Approved C&D Processing Facility and the Approved Disposal Facility, Company shall enter into an agreement with the Owner or Facility operator of such Third Party Approved Facility(ies) and the requirements of Article 4 of the Agreement and this Exhibit shall pertain to such use of the Third Party Approved Facility(ies) by Company under this Agreement. 8.1 General Requirements A. Overview. Company agrees to Transport and deliver Discarded Materials it Collects in the City to an appropriate Approved Facility(ies) for transfer, Processing, or Disposal, as applicable for each type of Discarded Material. As of the Commencement Date of this Agreement, the Approved Facilities, which were selected by Company and reviewed and approved by the City, are listed in the table on the following page and in the definitions in Article 1 of this Agreement. Company will perform all transfer, Processing, and Disposal services at Approved Facilities in accordance with Applicable Law, standard industry practice, and specifications and other requirements of this Agreement. Page 537 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-2 March 10, 2022 Approved Facilities Material Type Approved Transfer Facility (if applicable) Approved Facility (Processing or Disposal Facility) Description of Processing Methodology (Material Recovery Facility, composting Facility, anaerobic digestion, etc.) Source Separated Recyclable Materials Edom Hill Transfer Station SWIS: (33-AA-0296) 70-100 Edom Hill Road Cathedral City, CA 92234 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Approved Source Separated Recyclable Materials Processing Facility(ies): West Valley Materials Recovery Facility SWIS: (36-AA-0341) 13373 Napa Street Fontana, CA 92335 Owner: West Valley MRF, LLC Operator: West Valley Recycling and Transfer Robert A. Nelson Transfer & Material Recovery Facility SWIS: (33-AA-0258) 1830 Agua Mansa Road Riverside, CA 92509 Owner: Agua Mansa Properties Operator: Yeager, E L Construction Co East Valley Recycling SWIS: (36-AA-0453) 1150 & 1250 South Tippecanoe Ave. San Bernardino, CA 92408 All Facilities are Material Recovery Facilities Page 538 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-3 March 10, 2022 Material Type Approved Transfer Facility (if applicable) Approved Facility (Processing or Disposal Facility) Description of Processing Methodology (Material Recovery Facility, composting Facility, anaerobic digestion, etc.) Owner: Burrtec Waste Industries, Inc. Operator: Burrtec Waste Industries, Inc. SANCO Services, LP SWIS: (37-AA-0906) 1044 W Washington Ave. Escondido, CA 92025 Owner: SANCO Services, LP Operator: SANCO Services Source Separated Organic Materials Edom Hill Transfer Station SWIS: (33-AA-0296) 70-100 Edom Hill Road Cathedral City, CA 92234 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Approved Organic Waste Processing Facility(ies): Edom Hill Transfer Station SWIS: (33-AA-0296) 70-100 Edom Hill Road Cathedral City, CA 92234 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Edom Hill Compost SWIS: (33-AA-0376) 67780 Edom Hill Road Land application or Compost Facility Page 539 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-4 March 10, 2022 Material Type Approved Transfer Facility (if applicable) Approved Facility (Processing or Disposal Facility) Description of Processing Methodology (Material Recovery Facility, composting Facility, anaerobic digestion, etc.) Cathedral City, CA 92235 Owner: Burrtec Waste Industries, Inc. Operator: Burrtec Waste Industries, Inc. Coachella Valley Compost SWIS: (33-AA-0292) 87011 Landfill Road Coachella, CA 92236 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Imperial Western Products, Inc. CDFA Commercial Feed License No.: 15340 86600 Avenue 54, Coachella CA 92236 Owner: Trent Trawick Owner Address: P.O. Box 1110, Coachella CA 92236 Operator: Imperial Western Products, Inc. Page 540 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-5 March 10, 2022 Material Type Approved Transfer Facility (if applicable) Approved Facility (Processing or Disposal Facility) Description of Processing Methodology (Material Recovery Facility, composting Facility, anaerobic digestion, etc.) Operator Address: 86600 Avenue 54, Coachella CA 92236 Refuse (Gray Container) Edom Hill Transfer Station SWIS: (33-AA-0296) 70-100 Edom Hill Road Cathedral City, CA 92234 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. Coachella Valley Transfer Station (CVTS) SWIS: (33-AA-0248) 87011-A Landfill Road Coachella, CA 92236 Owner: Riverside County Department of Waste Resources Operator: Coachella/Indio TS. Authority Approved Disposal Facility(ies): Lamb Canyon Sanitary Landfill SWIS: (33-AA-0007) 16411 State Hwy 79 Beaumont, CA 92223 Owner: Riverside County Department of Waste Resources Operator: Riverside County Department of Waste Resources Badlands Sanitary Landfill SWIS: (33-AA-0006) 31125 Ironwood Avenue Moreno Valley, CA 92555 Owner: Riverside County Department of Waste Resources Operator: Riverside County Department of Waste Resources Salton City Solid Waste Site SWIS: (13-AA-0011) 935 W. Highway 86 All Facilities are landfills for Disposal Page 541 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-6 March 10, 2022 Material Type Approved Transfer Facility (if applicable) Approved Facility (Processing or Disposal Facility) Description of Processing Methodology (Material Recovery Facility, composting Facility, anaerobic digestion, etc.) Salton City, CA 92275 Owner: County of Imperial, Public Works Operator: Burrtec Waste Industries, Inc. El Sobrante SWIS: (33-AA-0217) 10910 Dawson Canyon Road Corona, CA 91719 Owner: USA Waste Service of California, Inc. Operator: USA Waste Service of California, Inc. C&D Materials Approved C&D Processing Facility(ies): Desert Recycling Inc. SWIS: (33-AA-0309) 27105 Sierra Del Sol Thousand Palms, CA 92276 Owner: Robert and Stephanie Mehring Operator: Bob Mehring Coachella Valley Compost SWIS: (33-AA-0292) C&D Processing Page 542 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-7 March 10, 2022 Material Type Approved Transfer Facility (if applicable) Approved Facility (Processing or Disposal Facility) Description of Processing Methodology (Material Recovery Facility, composting Facility, anaerobic digestion, etc.) 87011 Landfill Road Coachella, CA 92236 Owner: Riverside County Department of Waste Resources Operator: Burrtec Waste Industries, Inc. {Remainder of page intentionally blank} Page 543 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-8 March 10, 2022 B. Facility Capacity Guarantee. Company shall guarantee sufficient capacity over the Term of this Agreement at any Approved Facility to transfer (if applicable), Transport, and Process all Source Separated Recyclable Materials, Yard Trimmings, Food Waste, and Source Separated Organic Materials Collected under this Agreement and to Transfer (if applicable), Transport all Refuse Collected under this Agreement. Company shall cause the Affiliated Approved Facility(ies) to Recycle or Process the Discarded Materials as appropriate; market the Source Separated Recyclable Materials, and Source Separated Organic Materials recovered from such operations. Company shall cause Approved Third-Party Facility(ies) for Disposal to Dispose of Refuse. Company shall provide the City, upon request, with documentation demonstrating the availability of such Transfer (if applicable), Transport, Processing, and Disposal capacity as described below. 1. Company or Affiliate is Owner of Approved Facilities: City may request that Company report aggregate Facility capacity committed to other entities through Company’s contracts. City, or its agent, will have the right to seek verification of Company’s reported aggregate capacity through inspection of pertinent sections of Company’s contracts with such entities to determine the duration of Company’s commitment to accept materials from such entities and the type and volume of materials Company is obligated to accept through the contracts. In addition, City, or its agent, will have the right to review tonnage reports documenting the past three (3) years of tonnage accepted at the Approved Facility(ies) by such entities. To the extent allowed by law, City, or its agent(s), agree to maintain the confidentiality of the information reviewed related to the individual contracts with other contracting entities and agree to review all related material at the Company’s office and will not retain any copies of reviewed material. Company will fully cooperate with the City’s request and provide City and its agent(s) or access to Company’s records. 2. Company’s subcontractor is the Owner and/or operator of Approved third party Facilities: Upon request, Company shall demonstrate that such capacity is available and allocated to the City by provision of its agreement with the Approved Facility(ies) Owner(s)/operator(s) (subcontractor(s)) documenting the subcontractor’s guarantee to accept the Discarded Materials Company delivers over the Term of this Agreement. C. Facility Permits. Company or Facility operator shall keep all existing permits and approvals necessary for use of the Approved Facility(ies), in full regulatory compliance. Company, or Facility operator of such Facility, shall, upon request, Page 544 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-9 March 10, 2022 provide copies of permits and/or notices of violation of permits to the City. D. Transfer Facility. Company may rely on a transfer Facility and, in such case, shall Transport and deliver some or all Discarded Materials to an Approved Transfer Facility for pre-Processing (if applicable) and transfer. At the transfer Facility, Discarded Materials shall be unloaded from Collection vehicles and loaded into large-capacity vehicles and Transported to the Approved Facility(ies) for Processing or Disposal, in a timely manner and in accordance with Applicable Law. Company or subcontractor shall perform the following pre-Processing activities at the Approved Transfer Facility included in the Approved Facilities Table above. If Company delivers some or all Discarded Materials to a transfer Facility, it shall receive assurances from Facility operator that Facility operator will Transport or arrange for Transport of the Discarded Materials to appropriate Approved Facility(ies) for Processing or Disposal, as applicable for each type of Discarded Material. In such case, Company shall receive written documentation from the Facility operator(s) of the Facilities used for Processing and Disposal of Discarded Materials. Company shall pay all costs associated with Transport, transfer, Processing, and/or Disposal of all Discarded Materials Collected in accordance with this Agreement, including marketing of recovered materials and Disposal of all Residue. Company shall comply with separate handling requirements in Section 8.2.B of this Exhibit. E. Company-Initiated Change in Facility(ies). Company may change its selection of one or more of the Approved Facility(ies) following City Agreement Manager’s written approval, which may be conditioned on various factors including, but not limited to: the performance of the current versus proposed Facility, the permitting status of and LEA inspection records related to the proposed Facility, the distance of the Facility from the City, and any other factor that may reasonably degrade the value received by the City. If Company elects to use a Facility(ies) that is(are) not listed on the then-current list of Approved Facility(ies) in this Exhibit, it shall submit a written request for approval to the City one hundred and twenty (120) days prior to the desired date to use the Facility and shall obtain the City Agreement Manager’s/Director’s written approval prior to use of the Facility. Company’s compensation and Rates shall not be adjusted for a Company-initiated change in Facilities. F. Notification of Emergency Conditions. Company or Facility operator of each Approved Facility shall notify the City of any unforeseen operational restrictions Page 545 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-10 March 10, 2022 that have been imposed upon the Facility by a regulatory agency or any unforeseen equipment or operational failure that will temporarily prevent the Facility from Processing the Discarded Materials Collected under this Agreement. Company shall notify the City in accordance with the Agreement. G. Approved Facility Unavailable/Use of Alternative Facility. If Company is unable to use an Approved Facility due to a sudden unforeseen closure of the Facility or other emergency condition described in Section 8.1.F of this Exhibit, Company may use an Alternative Facility provided that the Company provides verbal and written notice to the City Agreement Manager and receives written approval from the City Agreement Manager at least twenty-four (24) hours prior to the use of an Alternative Facility to the extent reasonably practical given the nature of the emergency or sudden closure. The Company’s written notice shall include a description of the reasons the Approved Facility is not feasible and the period of time Company proposes to use the Alternative Facility. As appropriate for the type of Discarded Materials to be delivered to the Alternative Facility, the Alternative Facility shall meet the applicable Facility standards in this Agreement and shall be sent to: (i) an allowable Facility, operation, or used for an activity specified by pursuant to 14 CCR Section 18983.1(b) and not subsequently sent to Landfill Disposal; (ii) a transfer Facility; or, (iii) a Disposal Facility. If Company is interested in using an Affiliated Facility for Source Separated Organic Materials or Mixed Waste technology that is not listed above and not currently approved by CalRecycle, Company or Facility operator of the Facility shall be responsible for securing the approvals necessary from CalRecycle prior to the City’s final approval of such Facility or activity, and shall do so in accordance with the procedures specified in 14 CCR Section 18983.2. If any Approved Facility specified in this Exhibit becomes unavailable for use by Company for Discarded Materials Collected in the City for a period of more than two (2) days, City may designate an Alternative Facility. The Parties agree that an Approved Facility shall only be deemed to be “unavailable” if one or more of the following has occurred: (i) a Force Majeure event/Uncontrollable Circumstance as described in Article 12 of this Agreement has occurred; (ii) a Facility has lost one or more permits to operate; (iii) a Facility has exhibited a pattern of violation through the receipt of repeated notices of violation from one or more regulatory agencies. Further, the Parties agree that a Facility shall only be deemed to be “unavailable” if the lack of availability of the Facility is not due to Company’s negligence, illegal activity, neglect, or willful misconduct. At City’s request, Company shall research and propose Alternate Facility(ies) for the impacted Discarded Material(s), and shall submit a written analysis and recommendation to the City within five (5) days concerning the cost for use of Alternative Facility(ies) and any logistical changes that would be required to utilize such Alternative Page 546 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-11 March 10, 2022 Facility(ies). City and Company will discuss the advantages and disadvantages of use of the potential Alternative Facility(ies) and City will designate the approved Alternative Facility(ies). The decision of the City shall be final. The change in Facility shall be treated as City-directed change in scope pursuant to Section 2.8 of this Agreement. In the event an Approved Facility becomes unavailable due to the negligence, illegal activity, neglect, or willful misconduct of Company, Company shall bear all additional costs for use of an Alternative Facility including increased Processing costs, Disposal Costs, Transportation costs, transfer costs, and all other costs. The table listing Approved Facilities in this Exhibit shall be modified accordingly to reflect the new City-Approved Facility(ies). If Company is not the Owner of the new Approved Facility, Company shall enter into an agreement with the Facility operator of the Alternative Facility to ensure compliance with the requirements of Article 4 of this Agreement and this Exhibit unless City Agreement Manager waives one or more requirements. H. Discarded Materials Monitoring/Waste Evaluation Requirements. Company shall conduct material sampling, sorting, and waste evaluations of various material streams as further described in Section 5.5 to meet or exceed SB 1383 Regulations. I. Compliance with Applicable Law. Company (including its Affiliates) warrants throughout the Term that the Approved Facilities are respectively authorized and permitted to accept Discarded Materials in accordance with Applicable Law and are in full compliance with Applicable Law. J. Records and Investigations. Company shall maintain accurate records of the quantities of Discard Materials Transported to and Accepted at the Approved Facility(ies) and shall cooperate with City and any regulatory authority in any audits or investigations of such quantities. K. Inspection and Investigations. An authorized City employee or agent shall be allowed to enter each Facility during normal working hours in order to conduct inspections and investigations in order to examine Facility operations; provided such employee or agent follows all appropriate Facility procedures and safety rules; Processing activities; contamination monitoring; material sampling and sorting activities, including inspection of end-of-line materials after sorting; and records pertaining to the Facility in order to determine compliance with Applicable Law, including SB 1383, to understand protocols and results, and Page 547 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-12 March 10, 2022 conduct investigations, if needed. Company shall permit City or its agent to review or copy, or both, any paper, electronic, or other records required by City. 8.2 Processing Standards A. Recovery Required. Company agrees to Transport and deliver all Source Separated Recyclable Materials, Source Separated Organic Materials, and C&D Collected under this Agreement to an Approved Facility for Processing as applicable for each material type. Company or Facility operators of Approved Facilities shall conduct Processing activities for all Source Separated Recyclable Materials, Source Separate Organic Materials, and C&D to recover Recyclable Materials and Organic Materials to reduce Disposal. The Processing shall be performed in a manner that minimizes Disposal to the greatest extent practicable and complies with Applicable Law, including SB 1383. Pursuant to Sections 4.7.11 and 4.7.18 of this Agreement, Company may Dispose of Organic Waste from illegal Disposal Sites, Special Cleanup Events, and quarantined Organic Waste rather than Process such materials. B. Separate Handling Requirements 1. Company or Facility operators of Approved Facilities shall keep Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D separate from each other and separate from other Solid Waste streams and shall Process the materials separately from each other and separately from other Solid Waste streams. 2. Pursuant to 14 CCR Section 17409.5.6(a)(1), remnant Organic Waste, as defined by 14 CCR Section 17409.5.6(a)(1), separated from the Refuse for recovery can be combined with Organic Waste removed from the Source Separated Organic Materials for recovery once the material from the Source Separated Organic Materials has gone through the Organic Waste recovery measurement protocol described in 14 CCR Section 17409.5.4. 3. Pursuant to 14 CCR Section 17409.5.6(b), Source Separated Organic Materials and Organic Waste removed from Mixed Waste for recovery shall be: a. Stored away from other activity areas in specified, clearly identifiable areas as described in the Facility Plan or transfer/Processing Report (which are defined in 14 CCR); and, b. Removed from the Facility consistent with 14 CCR Section 17410.1 and Page 548 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-13 March 10, 2022 either: i. Transported only to another Facility or operation for additional Processing, composting, in-vessel digestion, or other recovery as specified in Section 8.2.F of this Exhibit; or, ii. Used in a manner approved by local, State, and federal agencies having appropriate jurisdiction. C. Residue Disposal. Company shall be responsible for Disposal of Residue from Processing activities at its own expense and may select the Disposal Facility(ies) to be used for such purpose. D. Processing Facility Residue Guarantees. Upon request of the City, Company shall provide a certified statement from the Facility operators of the Approve Facilities documenting its Residue level. The Residue level shall be calculated separately for each material type and for each Approved Facility used for Recycling and Processing. The Residue level calculation method shall be reviewed and approved by the City. E. Source Separated Recyclable Materials Processing Standards. Company shall arrange for Processing of all Source Separated Recyclable Materials at a Facility that recovers materials designated for Collection in the Recyclable Materials Container and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a) which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as Alternative Daily Cover (ADC) or Alternative Intermediate Cover (AIC). The Approved Recyclable Materials Processing Facility used by the Company shall comply with transfer/Processing Facility requirements in SB 1383 as applicable. F. Source Separated Organic Materials Processing Standards 1. Company shall arrange for Processing of all Source Separated Organic Materials at a Facility that recovers Source Separated Organic Waste and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a) which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as Alternative Daily Cover or Alternative Intermediate Cover. Company’s compliance with the ADC and AIC prohibition shall occur no later than January 1, 2020, in recognition of AB 1594, under which Yard Trimmings and green material used as ADC shall not constitute Diversion as of that date. Page 549 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-14 March 10, 2022 2. Company shall arrange for Source Separated Organic Materials Processing at an Approved Organic Waste Processing Facility that meets one or more of the following criteria, and such Facility or operation is capable of and permitted to accept and recover the types of Organic Wastes included in the Source Separated Organic Materials: a. A “Compostable Material Handling Operation or Facility” as defined in 14 CCR Section 17852(a)(12); small composting Facilities that are otherwise excluded from that definition; or Community Composting as defined within 14 CCR Section 18982(a)(8). The compostable materials handling operation or Facility shall, pursuant to 14 CCR Section 17867(a)(16), comply with the measurement standards included in 14 CCR Section 17409.58(c)(2), unless measurement is amended by 14 CCR Section 17409.5.9, demonstrating that the percentage of Organic Waste in the materials sent to Disposal is: i. On and after January 1, 2022, less than 20 percent (20%); and, ii. On and after January 1, 2024, less than 10 percent (10%). b. An “In-vessel Digestion Operation or Facility” as defined in 14 CCR 17896.5. The in-vessel digestion Facility or operation shall, pursuant to 14 CCR Section 17896.44.1, shall comply with the measurement standards included in Section 17409.5.8(c)(3), unless measurement is amended by Section 17409.5.9, demonstrating that the percentage of Organic Waste in the materials sent to Disposal is: i. On and after January 1, 2022, less than 20 percent (20%); and, ii. On and after January 1, 2024, less than 10 percent (10%). c. A “Biomass Conversion Operation” as defined in Section 40106 of the California Public Resources Code. d. Soil amendment for erosion control, revegetation, slope stabilization, or landscaping at a Landfill, that is defined as a reduction in Landfill Disposal in accordance with 14 CCR Section 18983.1(b). e. Land application of compostable materials consistent with 14 CCR Section 17852(a)(24.5) and subject to the conditions in 14 CCR Section 18983.1(b)(6). f. Lawful use as animal feed, as set forth in California Food and Page 550 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-15 March 10, 2022 Agricultural Code Section 14901 et seq. and Title 3, Division 4, Chapter 2, Subchapter 2 commencing with 14 CCR Article 1, Section 2675. g. Other operations or Facilities with processes that reduce short-lived climate pollutants that are approved by the State in accordance with 14 CCR Section 18983.2. 3. If Company is interested in using an operation, Facility, or activity not expressly identified above for Source Separated Organic Materials Processing, Company or Facility operator shall be responsible for securing the approvals necessary from CalRecycle prior to the City’s final approval of such operation, Facility, or activity, and shall do so in accordance with the procedures specified in 14 CCR Section 18983.2. 4. Preparation of Materials for Processing. The Company shall be responsible for preparing materials for Processing at the Approved Organic Waste Processing Facility, which shall include, but is not limited to, removal of visible physical contaminants such as plastic, glass, metal, and chemicals prior to size reduction. 5. Limits on Incompatible Materials in Recovered Organic Waste a. Limits. Except as described in Section 8.2.F.4.c of this Exhibit, Company’s transfer/Processing Facility or operation shall only send offsite that Organic Waste recovered after Processing the Source Separated Organic Materials that meets the following requirements or as otherwise specified in 14 CCR Section 17409.5.8(a): i. On and after January 1, 2022 with no more than 20 percent (20%) of Incompatible Material by weight; and, ii. On and after January 1, 2024 with no more than 10 percent (10%) of Incompatible Material by weight. b. Measurement. Company shall measure the actual levels of Incompatible Materials in accordance with procedures described in 14 CCR Section 17409.5.8(b), and 14 CCR Section 17409.5.9. c. Exceptions. The limits in Section 8.2.F.4.a of this Exhibit shall not apply to the recovered Organic Waste sent offsite from the transfer/Processing Facility or operation, if the Company sends the recovered Organic Page 551 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-16 March 10, 2022 Waste from the transfer/Processing Facility or operation to one or more of the following types of Facilities that will further Process the Organic Waste, or as otherwise specified in 14 CCR Section 17409.5.7(c): i. A transfer/Processing Facility or operation that complies with Section 8.2.F.4.a of this Exhibit; ii. A compostable materials handling Facility or operation that, pursuant to 14 CCR Section 17867(a)(16), demonstrates that the percentage of Organic Waste in the materials sent to Disposal is: (A) On and after January 1, 2022, less than 20 percent (20%); and, (B) On and after January 1, 2024, less than 10 percent (10%). iii. An in-vessel digestion Facility or operation that, pursuant to 14 CCR Section 17896.44.1, demonstrates that the percentage of Organic Waste in the materials sent to Disposal is: (A) On and after January 1, 2022, less than 20 percent (20%); and, (B) On and after January 1, 2024, less than 10 percent (10%). iv. An activity that meets the definition of a Recycling center as described in 14 CCR Section 17402.5(d). G. C&D Program Standards 1. Company shall comply with the City’s Construction and Demolition Materials Recycling program requirements pursuant to the City’s Municipal Code. 2. Company shall deliver mixed C&D loads to an Approved C&D Processing Facility for Recycling. 3. Company shall deliver Source Separated C&D such as, but not limited to, dirt, concrete, wood waste, cardboard, or other Recyclable C&D Materials to an Approved C&D Processing Facility or other Facility authorized for Recycling C&D, and shall deliver Salvageable Materials to a party for Reuse or salvage. 4. Company shall arrange for Processing of Organic Waste in the C&D at a Page 552 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-17 March 10, 2022 Facility that recovers Organic Waste from C&D and in a manner deemed not to constitute Landfill Disposal pursuant to 14 CCR Section 18983.1(a), which states that Landfill Disposal includes final deposition of Organic Waste at a Landfill or use of Organic Waste as Alternative Daily Cover (ADC) or Alternative Intermediate Cover (AIC). H. Plastic Bags. Company shall annually submit to City written notice from the Approved Organic Waste Processing Facility confirming said Facility can remove plastic bags when Processing Source Separated Organic Materials. I. Compostable Plastics. Company may accept Compostable Plastics at the Approved Organic Waste Processing Facility. Pursuant to Article 5 of this Agreement, Company shall annually submit to City written notice from the Approved Organic Waste Processing Facility confirming said Facility can Process and recover these Compostable Plastics. J. Marketing. Company or Facility operator of the Approved Facility(ies), shall be responsible for marketing materials recovered from Discarded Materials Collected under this Agreement. Company or Facility operator of Approved Facilities marketing methods for materials shall be performed in a manner that supports achievement of Disposal reductions and in such a manner that complies with State regulations, including, but not limited to, AB 901, AB 939, SB 1016, AB 341, AB 1594, AB 1826, and SB 1383. Company or Facility operator of Approved Facilities shall retain revenues resulting from the sale and marketing of said materials with the exception of the curbside supplemental payments and City/County payments under the California Beverage Container Recycling and Litter Reduction Act, which shall be retained by the City. Company shall continue to receive the State’s curbside rebate as outlined in Exhibit 10. Upon request, Company shall provide proof to the City that all Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D Collected by Company were Processed and recovered materials were marketed for Recycling, salvage, or Reuse or as organics products in such a manner that materials are not deemed Landfill Disposal pursuant to SB 1383 and in a manner that materials are deemed Diversion pursuant to AB 939. All Residue from the Recycling and Processing activities that is not marketed shall be reported to the City as Residue and accounted for as Disposal tonnage at the Approved Disposal Facility. No Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, or C&D shall be Transported to a domestic or foreign location if Landfill Disposal of such material is its intended use. If Company becomes aware that a broker or buyer has illegally handled, Disposed of, or used material generated in the City that is not consistent with Applicable Law, Page 553 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-18 March 10, 2022 Company shall immediately inform the City and terminate its contract or working relationship with such party. In such case, Company shall find an alternative market for the material(s) recovered from the Source Separated Recyclable Materials, Source Separated Organic Materials, and/or C&D that is compliant with Applicable Law. The performance of commodity markets for materials recovered from Source Separated Recyclable Materials shall not be considered a reason for deeming a Facility “unavailable” in this Section 8.1.J of this Exhibit, nor shall it be considered an acceptable basis for the need to use an Alternative Facility, nor shall it serve as the basis for any adjustment in Company’s compensation under this Agreement, other than as specifically contemplated in Article 6 of this Agreement. K. Disposal of Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D Prohibited. With the exception of Processing Residue, which shall not exceed the limits established under Applicable Law, Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, and C&D Collected under this Agreement may not be Disposed of in lieu of Recycling, Processing, or marketing the material, without the expressed written approval of the City Agreement Manager. If for reasons beyond its reasonable control, Company believes that it cannot avoid Disposal of the Source Separated Recyclable Materials, Source Separated Organic Materials, Mixed Waste, or C&D Debris Collected in the City, then it shall prepare a written request for City approval to Dispose of such material. Such request shall contain the basis for Company’s belief (including, but not limited to, supporting documentation), describe the Company's efforts to arrange for the Processing of such material, the period required for such Disposal, and any additional information supporting the Company's request. In addition, the request shall describe the Company’s proposed interim plans for implementation while the City is evaluating its request. If the City objects to the interim plans, the City shall provide written notice to the Company and request an alternative arrangement. The City shall consider the Company’s request and inform Company in writing of its decision within sixty (60) days. Depending on the nature of the Company’s request, City may extend the sixty (60) day period, at its own discretion, to provide more time for evaluation of the request and negotiation of an acceptable arrangement with the Company. Page 554 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-19 March 10, 2022 8.3 Refuse Disposal Standards A. Disposal of Refuse Collected. Company shall Transport all Refuse Collected under this Agreement to the Approved Transfer Facility for transfer and Disposal at the Approved Disposal Facility. B. Disposal at Approved Facility. Company shall not Dispose of Refuse or Residue by depositing it on any public or private land, in any river, stream, or other waterway, or in any sanitary sewer or storm drainage system or in any other manner which violates Applicable Laws. 8.4 Weighing of Discarded Materials A. Maintenance and Operation. This Section 8.4 of this Exhibit applies to motor vehicle scales used at the Approved Facilities. Approved Facilities shall be equipped with one or more State-certified motor vehicle scales in accordance with Applicable Law. Upon request, Company shall arrange for Facility operator to provide documentary evidence of such scale certification within ten (10) days of City’s request during the Term. Company shall arrange for Approved Facility operator to provide City with access to weighing information at all times and copies thereof within three (3) Working Days following the City’s request. Exceptions to weighing requirements are specified in Section 8.4.G of this Exhibit. B. Vehicle Tare Weights for Approved Facility(ies). Within thirty (30) days prior to the Commencement Date, Company shall coordinate with the Facility operator(s) to ensure that all Collection vehicles used by Company to Transport Discarded Materials to Approved Facilities are weighed to determine unloaded (“tare”) weights. Company shall work with Facility operator(s) to electronically record the tare weight, identify vehicle as Company’s, and provide a distinct vehicle identification number for each vehicle. Company shall provide City with a report listing the vehicle tare weight information upon request. Company shall promptly coordinate with Facility operator to weigh additional or replacement Collection vehicles prior to Company placing them into service. Company shall check tare weights at least annually, or within fourteen (14) days of a City request, and shall retire vehicles immediately after any major maintenance service that could impact the weight of the vehicle by more than fifty (50) pounds. C. Substitute Scales. If any scale at an Approved Facility is inoperable, being tested, or otherwise unavailable, Approved Facility operator shall use reasonable business efforts to weigh vehicles on the remaining operating scale(s). To the extent that all the scales are inoperable, being tested, or otherwise unavailable, Page 555 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-20 March 10, 2022 Approved Facility operator shall substitute portable scales until the permanent scales are replaced or repaired. Facility operator shall arrange for any inoperable scale to be repaired as soon as possible. D. Estimates. Pending substitution of portable scales or during power outages, Facility operator shall estimate the tonnage of the Discarded Materials Transported to and accepted at the Approved Facilities by utilizing the arithmetic average of each vehicle's recorded tons of Discarded Materials delivered on its preceding three (3) deliveries. During any period of time the scales are out of service, Approved Facility operator shall continue to record all information required by this Section 8.4 of this Exhibit for each delivery of Discarded Materials to the Approved Facilities and each load of material transferred to another Approved Facility(ies). E. Weighing Standards and Procedures. At the Approved Facilities, Facility operator shall weigh and record inbound weights of all vehicles delivering Discarded Materials when the vehicles arrive at the Approved Facility. F. Records. Approved Facility operator shall maintain scale records and reports that provide information including date of receipt, inbound time, inbound and outbound weights (or tare weights) of vehicles, vehicle identification number, jurisdiction of origin of materials delivered, type of material, company/hauler identification, and classification, type, weight, and final destination of Discarded Material if the Discarded Materials are transferred to another Approved Facility(ies). G. Exceptions to Weighing Requirements. If an Approved Facility does not have motor vehicle scales to weigh Company’s vehicles and Discarded Materials delivered to the Facility, Company shall obtain a receipt for delivery of the Discarded Materials that identifies the date and time of delivery, the type of material delivered, and the vehicle number. Company or Facility operator shall estimate the tonnage of material delivered for each load based on the volumetric capacity of the vehicle and material density factors (e.g., pounds per cubic yard) approved by or designated by the City Manager or their designee. H. Upon-Request Reporting. If vehicle receiving and unloading operations are recorded on video cameras at the Approved Facilities, Company shall make those videos available for City review during the Approved Facilities’ operating hours, upon request of the City, and shall provide the name of the driver of any particular load if available. Page 556 EXHIBIT 8 PROCESSING, TRANSFER, AND DISPOSAL SERVICES AND FACILITY STANDARDS City of Palm Desert 8-21 March 10, 2022 8.5 Rejection of Excluded Waste A. Inspection. Company or Facility operators of Approved Facilities will use standard industry practices to detect and reject Excluded Waste in a uniform and non-discriminatory manner and will not knowingly accept Excluded Waste at the Approved Facility(ies). Company or Facility operators of Approved Facilities will comply with the inspection procedure contained in its permit requirements. Company or Facility operator of Approved Facilities will promptly modify that procedure to reflect any changes in permits or Applicable Law. B. Excluded Waste Handling and Costs. Company or Facility operators of Approved Facilities will arrange for or provide handling, Transportation, and delivery to a Recycling, incineration, or a Disposal Facility permitted in accordance with Applicable Law of all Excluded Waste detected at the Approved Facility(ies). Company is solely responsible for making those arrangements or provisions and all costs thereof. Nothing in this Agreement will excuse the Company or Facility operators of Approved Facilities from the responsibility of handling Excluded Wastes that Company or Facility operators of Approved Facilities inadvertently accepts in a lawful manner and of arranging for the disposition of that Excluded Waste in accordance with Applicable Law. Page 557 EXHIBIT 9: SAMPLE RECYCLING COORDINATOR CALENDAR OF MILESTONES Page 558 Sample Burrtec Recycling Coordinator Calendar of Milestones Shred It Recycle Program Provide 3 Drop-in Shredding events for Palm Desert Customers. May limit customers to (10) boxes per event. TBD TBD TBD Sharps Recycle Program (Residential)Provide a mail-in program for residents. Accept Sharps at HHW Center. Compost Giveaway Conduct at least (1) compost giveaway event. Provide (1) 30 yard roll-off. City to utilize any remaining compost. City residents to bring their own containers at first come, first-served basis. Anticipated Annual Notice of Requirements Around Rate Year, provide annual notice to include SB1383 Information. Mailer to be distributed by Company to all residential and commercial mailing addresses including Multi- Family dwelling units. Prop 218 Notice Issued Biannual Brochure Create a brochure for residential and commercial customers biannually, commencing in 2022. Anticipated Inserts in City Newsletter (Brightside) At least (4) times per year, Company to provide inserts on programs, services, regulations and other related topics. Winter Edition Organics TBD TBD TBD Annual Neighborhood Clean up Insert Produce once annually for inclusion in the City's April Issue of the Brightside.Clean up Flyer Bill Notices Issue a bill notice to all Company billed customers on programs, services, regulations and other related topics. Anticipated Public Service Announcement Provide (1) public service announcement per year to advertise such events such as annual clean-up or holiday tree recycling Holiday Tree Ad Residential Food Waste Program Implementati Beginning at the effective date of the agreement, residential implementation conduct education campaign to include initial mailer and how-to guide. Ongoing Ongoing Ongoing Outreach and Education Perform visits to identify the service needs by conducting diversion opportunity assessments of customer locations Ongoing Ongoing Ongoing Community Events Company to participate in City events to promote recycling and organics material collection and other diversion techniques at community meetings , special events and other local activities. Farmers Market, Wildflower Festival Farmers Market, Spring Concert Series Independence Day Celebration Farmers Market, Fall Concert Series and Golf Cart Parade Recycling Coordinator Monthly Meeting Ongoing Residential Second Tuesday of the Month Ongoing Event or Program Brief Description Quarter 1 Quarter 2 Quarter 3 Quarter 4 Page 559 Page 560 EXHIBIT 10: ANNUAL RECYCLING REBATE FORMULA Page 561 Page 562 EXHIBIT 10: ANNUAL RECYCLING REBATE FORMULA City of Palm Desert 10-1 March 10, 2022 : Data to be entered in bold, outlined boxes with yellow highlight during time of rebate calculation. Row CY 2019 Actuals CY 2022*Difference Notes 1 State Curbside Rebate Revenues 26,096$ 30,000$ Enter Actuals 2 Commercial OCC Sales Revenues 19,083$ 50,000$ Enter Actuals 3 Annual Commodity Sales Revenue 99,335$ 150,000$ Enter Actuals 4 Total Recycling Revenue 144,514$ 230,000$ Calculation: Sum R1-R3 5 Recyclable Tons Collected 10,590 11,000 Enter Actuals 6 Increase In Recyclables Sales Revenue/Ton 13.65$ 20.91$ 7.26$ Calculation: R4 ÷ R5 Row 7 CY 2022 Recyclable Tons Collected 11,000 From R5, Column "Actuals CY 2022" 8 Increase In Recyclables Sales Revenue/Ton 7.26$ From R6, Column "Difference" 9 Total Allocation Amount based on CY 2022 79,891$ Calcuation: R7 x R8 Row 10 Tonnage Category Recylable Tons Collected Allocation %Customer Allocation Notes 11 Residential Recyclable Tons CY 2022*7,800 70.9%56,650$ 12 Commercial Recyclable Tons CY 2022*3,200 29.1%23,241$ Maximum annual commercial rebate cannot exceed $299,062 per year. 13 Total Recyclable Tons Collected CY 2022 11,000 100.0%79,891$ Row 14 Residential Customer Allocation Amount 56,650$ 15 Total Homes in City based on Burrtec Data 29,181 Enter Actuals 16 Residential Customer Allocation Amount per Home effective 7/1/2023 based on CY 2022*1.94$ Calculation: R14 ÷ R15 17 Maximum Annual Rebate per Home 17.28$ Based on $1.44/month x 12 months/year 18 Amount Over/(Under) Maximum Annual Rebate (15.34)$ Calculation: R16 - R17 19 Residential Customer Annual Rebate 1.94$ Row 20 Commercial Customer Allocation Amount 23,241$ 21 Current Total Monthly Cubic Yards of Recycling Capacity 24,592 Enter Actuals 22 Commercial Recycling Allocation Amount per Monthly CY effective 7/1/2023 based on CY 2022*0.95$ Calculation: R20 ÷ R21 23 Weekly Recycling Service in CY for Example Customer 6 Example customer service level 3x2. 24 Weeks/Month 4.33 25 Example Customer Recycling Service in CY/Month 25.98 Calculation: R23 X R24 26 Commercial Allocation per CY 0.95$ From R22 27 Commercial Recycling Example Customer Annual Rebate 24.55$ R25 X R26 *Calculation to be performed annually beginning with CY 2022 results. Estimates provided for example purposes only. July 1, 2023 Commercial Recycling Customer Rebate*Notes From R12, Column "Customer Allocation" Example Commercial Customer with 3 CY Recycling Bin Collected 2x/week Notes From R11, Column "Customer Allocation" July 1, 2023 Residential Customer Rebate*Notes Allocation Based on Sector July 1, 2023 Customer Rebate Notes Page 563 EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA Page 564 Page 565 EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA City of Palm Desert 11-1 March 10, 2022 Column A B C Row 2021 Projected Actual 2023 Organic Materials Tonnage Increase (Decrease) to Customer Monthly Rate Notes 1 Processing Cost/Ton of Organic Materials*85.00$ 85.00$ 2 Lbs./Ton 2,000 2,000 3 Organic Materials Processing Cost/Lb.0.04$ 0.04$ Calculation: R1 ÷ R2 4 Lbs. of Organic Materials/Home/Week 14.79 10.00 5 Organic Materials Processing Cost/Home/Week 0.64$ 0.43$ Calculation: R3 x R4 6 Weeks/Month 4.33 4.33 7 Organic Materials Processing Cost/Home/Month 2.75$ 1.86$ (0.89)$ Calculation: R5 x R6 Column D E F Row 2021 Projected Actual 2023 Refuse Tonnage Increase (Decrease) to Customer Monthly Rate Notes 8 Refuse Disposal Cost/Ton*51.49$ 51.49$ 9 Lbs./Ton 2,000 2,000 10 Refuse Disposal Cost/Lbs.0.03$ 0.03$ Calculation: R8 ÷ R9 11 Change in Refuse Lbs./Home/Week **(9.51) (6.00) 12 Refuse Disposal Cost/Home/Week (0.25)$ (0.16)$ Calculation: R10 x R11 13 Weeks/Month 4.33 4.33 14 Refuse Disposal Cost/Home/Month (1.07)$ (0.68)$ 0.40$ Calculation: R12 x R13 Column G H I Row 2021 Projected Actual 2023 Productivity Increase (Decrease) to Customer Monthly Rate Notes 15 Residential Organic Materials Productivity Lift/Hour 95.00 100.00 16 Collection Cost/Hour*100.29$ 100.29$ 17 Collection Cost/Lift of Residential Organic Materials 1.06$ 1.00$ Calculation: R16 ÷ R15 18 Weeks/Month 4.33 4.33 19 Cost/Month/Lift of Residential Organic Materials 4.57$ 4.34$ (0.23)$ Calculation: R17 x R18 Row 20 Organic Materials Volume Adj.(0.89)$ 21 Refuse Volume Adj.0.40$ 22 Organic Materials Collection Productivity Adj.(0.23)$ 23 Total Increase/(Decrease) to Customer Monthly Rate (0.73)$ ** 2019 Actual Trash lbs/home including Residual from Residential Recycling Carts 20.62 (see calc below) Trash Tons Res Units lbs/Unit/Wk 15,643.00 29,181.00 20.62 * These figures remain constant for purposes of the one-time true-up. From R19, Column I Organic Materials Collection Productivity Adjustment From R7, Column C From R14, Column F Calculation: Sum R20 - R22 Adjustments Summary Organic Materials Volume Adjustment : Data to be entered in bold, outlined boxes with yellow highlight only during time of one-time true-up calculation. Adjustments Notes Refuse Volume Adjustment Page 566 EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA City of Palm Desert 11-2 March 10, 2022 Assumptions Continued on Next Page… Row Assumption Units 1 14.79 Organic Materials Lbs. /Home/Week 2 $ 85.00 Organic Materials Processing Rate/Ton 3 12.00 Decrease in Refuse Lbs./Home/Week for New Organic Materials Collection 4 $ 51.49 Refuse Tip Fee at Edom Hill/Ton 5 95.00 Organic Container Lifts/Truck Hour 6 $ 100.29 Organic Materials Operating Cost/Truck Hour Row Notes 7 29,181 Per Burrtec 4/13/2021 spreadsheet. 8 95.00 9 307.17 Calculation R7 ÷ R8 10 50.00 11 6.14 Calculation R9 ÷ R10 Row Notes 12 Total Route Collection Hours/Week 307.17 From R9 13 $ 100.29 From R6 14 $ 30,806 Calculation R12 x R13 15 52 16 $ 1,601,912 Calculation R14 x R15 Key Assumptions Lifts/Hour Collection Hours/Week Hours/Route Number of Routes/Week Operating Cost/Hour Weeks/Year Notes/Source Burrtec Cost Proposed on 4/13/21. Burrtec Cost Proposed on 4/13/21. Burrtec Cost Proposed on 4/13/21. Burrtec Cost Proposed on 4/13/21. Burrtec Cost Proposed on 4/13/21. Organic Materials Collection Truck Capital Cost Burrtec Cost Proposed on 4/13/21. Total Residential Dwelling Units Organic Materials Collection Operating Cost Total Operating Cost/Week Annual Operating Costs Page 567 EXHIBIT 11: ONE-TIME RESIDENTIAL ORGANIC MATERIALS RATE ADJUSTMENT FORMULA City of Palm Desert 11-3 March 10, 2022 Row Notes 17 3,473 18 52 19 66.78 20 6,058 21 0.01 22 2,000 23 22.05 24 23,123 25 12.00 26 277,476 27 2,000 28 138.74 29 52 30 7,214 31 3,473 From R17 32 10,687 33 5.00% 34 534 35 11,222 36 6,058 From R20 37 23,123 From R24 38 29,181 39 0.38 40 2,000 41 769.10 42 52 43 14.79 44 11,222 45 $ 85.00 46 $ 953,830 47 12.00 48 23,123 49 277,476 50 2,000 51 138.74 52 52 53 Total Decrease in Refuse Tons/Year 7,214.38 54 $ 51.49 55 $ 371,468 56 $ 582,362 57 Estimated Total Decrease in Refuse Tons/Year (7,214) From R53 58 29,181 From R38 59 Total Decrease in Refuse Tons/Home/Year (0.25) 60 2,000 61 Total Decrease in Refuse Lbs./Home/Year (494) 62 Weeks/Year 52 63 Estimated Lbs./Home/Week Decrease in Refuse (9.51) Organic Materials Processing and Tonnage Estimates Calculation: R44 X R45 From R4 From R3 Calculation: R24 X R25 Tons/Week Lbs./Week Homes with Organic Materials Collection Service in 2019 2019 Residential Organic Materials Tons Projected Lbs./Week/Home of Organic Materials Projected Lbs./Week Organic Materials Tons/Week/Home Projected Organic Materials Tons/Year Food Waste as a Percent of Organic Materials Organic Materials Lbs./Week/Home Homes in Need of Organic Collection Service Tons Residential Organic Materials/2019 Weeks/Year Calculation: R47 X R48 Calculation: R49 ÷ R50 Tip Fee/Ton (Edom Hill 7/1/21) Decrease in Refuse Disposal Costs Total Homes Lbs./Ton Net Annual Cost to Residential Services Calculation: R46 less R55 Calculation: R57 ÷ R58 Calculation: R17 ÷ R18 Calculation: R19 ÷ R20 Calculation: R21 X R22 Lbs./Ton Homes with Organic Materials Collection Service in 2019 Lbs./Ton Weeks/Year Lbs./Ton Homes without Organic Collection Service Lbs./Ton Organic Materials Processing Rate/Ton Annual Cost - Organic Materials Processing Decrease in Refuse Lbs./Week/Home Total Organic Materials Tons/Year Calculation: R41 ÷ R42 Projected decrease in Refuse from R25 Calculation: R51 X R52 Calculation: R53 X R54 From R24 Calculation: Sum R30 and R31 Lbs./Year/Home Calculation: R56 ÷ R57 Calculation: R59 X R60 Total Homes Weeks/Year Organic Materials Tons/Week Organic Materials Tons/Year (Excluding Food Waste) Calculation: Sum R36 and R37 Calculation: R32 X R33 Per 2019 tonnage report. Additional Food Waste Tons/Year Projected Organic Materials Tons/Week Calculation: R26 ÷ R27 Calculation: R28 X R29 Tons/Home/Year of Organic Materials Calculation: R35 ÷ R38 Calculation: R39 x R40 Calculation: R32 + R34 Weeks/Year Homes in Need of Organic Collection Service Total Organic Materials Tons/Year From R34 Lbs./Home/Week of Organic Materials Page 568 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AN AMENDED FRANCHISE AGREEMENT WITH BURRTEC WASTE AND RECYCLING SERVICES, LLC TO COLLECT SOLID WASTE, RECYCLABLES, AND ORGANIC WASTE WHEREAS, the Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989 (“AB 939”) (California Public Resources Code Section 40000 et seq.), has declared that it is in the public interest to authorize and require local agencies to make adequate provisions for Solid Waste handling within their jurisdictions to meet the goals and requirements of AB 939; and, WHEREAS, pursuant to California Public Resources Code Section 49300 and 49500-49500 and the applicable provisions of the City Charter and Municipal Code, the City of Palm Desert has determined that the public health, safety, and well-being require that an exclusive Franchise be awarded to a qualified company for the Collection, Transportation, Recycling, Processing, and Disposal of Solid Waste and other services to meet the goals and requirements of AB 939; and, WHEREAS, on May 15, 2009, City and Company, entered into that certain Exclusive Franchise Agreement between City of Palm Desert and Burrtec Waste and Recycling Services for Integrated Solid Waste Services (Initial Agreement); and, WHEREAS, the Parties entered into that certain Amended Franchise Agreement dated as of May 15, 2015, for the purposes of integrated Solid Waste Management Services (the Amended Agreement); and WHEREAS, the Amended Agreement will expire on May 31, 2023; and, WHEREAS, the Parties desire to further amend and restate the Amended Agreement; and, WHEREAS, the City and the Company desire to enter into the Amended Franchise Agreement between the City of Palm Desert and Burrtec Waste and Recycling Services, LLC (Agreement) to amend and supersede the Initial Agreement and Amended Agreement; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that it approves the Amended Franchise Agreement between the City of Palm Desert and Burrtec Waste and Recycling Services, LLC (Agreement) to collect solid waste, recyclables, and organic waste from all residents and businesses for the term of 11 years from April 1, 2022 to March 31, 2033, a copy of which is on file with the City Clerk. The City Manager with the concurrence of the City Attorney may make non- substantive edits to the Agreement as required. Page 569 RESOLUTION NO. 2022- PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California at its regular meeting held this 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: __________________________ JAN C. HARNIK, MAYOR ATTEST: _________________________________ NIAMH M. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA 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 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-1 April 1, 2022 3A. Residential Service Rate Sheet 3B. Commercial Service Rate Sheet 3C. Roll-off Box Service Rate Sheet Page 583 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-2 April 1, 2022 3A – Residential Maximum Rates Rate Category Individually Billed Customers (Tax Roll Billed) - 96 Gallon Carts 13.30$ per unit per month 15.13$ per unit per month* - 64 Gallon Carts 10.65$ per unit per month 12.48$ per unit per month* - 32 Gallon Carts 7.97$ per unit per month 9.80$ per unit per month* Marrakesh Rate (2x/week Collection)27.60$ per unit per month 29.43$ per unit per month* Automated Walk-in Fee - for Three Carts 22.00$ per unit per month 22.00$ per unit per month Automated Walk-in Fee - additional Carts 11.00$ per cart per month 11.00$ per cart per month M anual Refuse Curbside Service Manual Refuse Curbside Service 14.63$ per unit per month 16.46$ per unit per month* Manual Walk-in Service 25.61$ per unit per month 27.44$ per unit per month* Manual In-Ground Can 24.30$ per unit per month 26.13$ per unit per month* M aster-Billed Customers - 96 Gallon Carts 11.84$ per unit per month 13.67$ per unit per month* - 64 Gallon Carts 9.47$ per unit per month 11.30$ per unit per month* - 32 Gallon Carts 7.11$ per unit per month 8.94$ per unit per month* Automated Walk-in Fee - for Three Carts (4)19.58$ per unit per month 19.58$ per unit per month M anual Refuse Curbside Service - Single Family or Multi-Family 1x/wk. Collection 13.03$ per unit per month 14.86$ per unit per month* - Single Family or Multi-Family 2x/wk. Collection 17.16$ per unit per month 18.99$ per unit per month* - Mobile Home Park 11.84$ per unit per month 13.67$ per unit per month* - Manual In-Ground Can 16.57$ per unit per month 18.40$ per unit per month* - Manual In-Ground Can 2x/wk. Collection 20.72$ per unit per month 22.55$ per unit per month* Refuse Carts - 96 Gallon Carts 6.66$ per cart per month 6.66$ per cart per month - 64 Gallon Carts 5.32$ per cart per month 5.32$ per cart per month - 32 Gallon Carts 4.01$ per cart per month 4.01$ per cart per month Organic Materials or Recyclable Materials Cart -$ per cart per month 2.95$ per cart per month Other Residential Services Extra Pick-up of all Carts (upon Customer request only) $ 50.00 per pickup $ 50.00 per pickup Residential Cart Contamination fee $ 10.00 per cart per occurrence $ 10.00 per cart per occurrence Replacement Kitchen Pail (upon Customer request only) Bulky Item Pick-ups Single-Family - includes four items no charge no charge Multi-Family Complex - includes four items (per Section 4.5.2)no charge no charge Bulky Items - Over allotted 4 items per pickup 14.91$ per additional item 14.91$ per additional item Bulky Item Pick-up - Multi-Family Complexes over allotted pick-ups per Section 4.5.2 (4 item limit)62.88$ per pickup 62.88$ per pickup Restart Fee - (2)21.26$ per occurrence 21.26$ per occurrence Returned Check Fee 25.26$ per check 25.26$ per check Cart Exchange - Entire HOA Section 4.3.1.2 6.00$ per cart 6.00$ per cart HHW Service Charge (3)19.58$ per stop 19.58$ per stop (1) Per unit for single and Multi-Family Dwellings with Cart service. (2) Following voluntary or involuntary suspension of service. (3) Company to invoice the City for at-home HHW Collection service per section 4.7.14.A.9. Customer Rates (April 1, 2022 - June 30, 2022) Actual Contractor cost plus $7.00 delivery fee Customer Rates (July 1, 2022 - June 30, 2023) Actual Contractor cost plus $7.00 delivery fee * These Residential rates are subject to the special rate adjustment phase-in identified in Section 6.9. (4) Disabled Persons, identified as those meeting the DMV requirement for N1-Permanent disabled parking placard, shall receive such service for no additional charge per Section 4.3.4. Additional Residential Carts for Individual or M aster-Billed Customers Automated Cart Service - Includes one Refuse, one Recycling, and one Organic M aterials Cart (1) Automated Cart Service - Includes one Refuse, one Recycling, and one Organic M aterials Cart (1) Page 584 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-3 April 1, 2022 3B – Commercial Maximum Rates 1 2 3 4 5 6 Ref use Cart 15.14$ 30.24$ 45.41$ 60.52$ 75.66$ 90.81$ 15.40$ 2 Cubic Yard Bin 96.22$ 168.71$ 241.74$ 314.01$ 386.82$ 506.40$ 45.03$ 3 Cubic Yard Bin 126.71$ 226.41$ 295.31$ 416.13$ 516.36$ 616.25$ 61.69$ 4 Cubic Yard Bin 174.20$ 292.34$ 414.44$ 536.99$ 687.67$ 771.56$ 83.37$ 6 Cubic Yard Bin 264.00$ 443.82$ 630.02$ 816.09$ 986.14$ 1,174.21$ 125.09$ * % of Trash Service Rate:35.00% 1 2 3 4 5 6 Recycle Cart 5.30$ 10.59$ 15.89$ 21.18$ 26.48$ 31.78$ 5.39$ 2 Cubic Yard Bin 33.68$ 59.05$ 84.61$ 109.90$ 135.39$ 177.24$ 15.76$ 3 Cubic Yard Bin 44.35$ 79.24$ 103.36$ 145.64$ 180.73$ 215.69$ 21.59$ 4 Cubic Yard Bin 60.97$ 102.32$ 145.05$ 187.95$ 240.68$ 270.04$ 29.18$ 6 Cubic Yard Bin 92.40$ 155.34$ 220.51$ 285.63$ 345.15$ 410.97$ 43.78$ Extra Pickup Extra Pickup Container Size Container Size Commercial Recycling Service Rates - Effective April 1, 2022 - June 30, 2023 Pickups per Week Pickups per Week Commercial Solid Waste Service Rates - Effective April 1, 2022 - June 30, 2023 Page 585 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-4 April 1, 2022 3B – Commercial Maximum Rates 1 2 3 4 5 Gr eenwaste Only Cart 11.83$ 23.61$ 35.45$ 47.25$ 59.08$ 11.92$ 1 - 64-Gallon Cart 74.81$ 149.56$ 224.33$ 299.09$ 373.88$ 21.80$ 2 - 64-Gallon Carts 133.66$ 267.32$ 400.97$ 534.65$ 668.30$ 40.85$ 3 - 64-Gallon Carts 188.59$ 389.06$ 565.76$ 754.35$ 942.96$ 55.09$ 4 - 64-Gallon Carts 235.58$ 471.12$ 706.70$ 942.27$ 1,177.84$ 73.47$ Additional 64-Gallon Carts (above 4, per Cart)57.12$ 114.12$ 171.31$ 228.39$ 285.50$ 91.81$ 1 Cubic Yard Bin 168.30$ 322.31$ 490.61$ 658.91$ 827.22$ 50.49$ 2 Cubic Yard Bin 218.71$ 423.12$ 641.83$ 860.54$ 1,079.25$ 65.61$ Rate 166.73$ 166.73$ (Refuse Extra Pickup Charge) 24.46$ 25.44$ 11.45$ 50.06$ 115.13$ Other Commercial Service Rates - Effective April 1, 2022 - June 30, 2023 Re-Start Fee - following voluntary or involuntary suspension of service Temporary Front End Load Bin - additional dumps Contaminated Recycling Or Organic Materials Container Charge - per Container Extra PickupContainer Size Commercial Organic Materials Service Rates - Effective April 1, 2022 - June 30, 2023 Returned Check Fee Bin Cleaning/Enclosure Clean-up Charge - for overflowed bins, after required warnings Emergency Service - hourly rate for one crew member and one collection truck Locking Bin Fee - Monthly charge based on number of pick-ups/wk. Description Pickups per Week Temporary Front End Load Bin - initial delivery, pickup, and disposal Page 586 EXHIBIT 3. INITIAL RATES City of Palm Desert 3-5 April 1, 2022 3C – Roll-Off and Temporary Service Maximum Rates Rate Per Pull or Per Ton 175.62$ 166.80$ 283.44$ actual cost (a) Source Separated Recyclable Materials Per Ton Charge actual cost actual cost Organic Materials Per Ton Charge actual cost actual cost Rate Billed at Trash Rate 24.90$ 10.81$ 25.44$ Roll Off Service Rates - Effective April 1, 2022 - June 30, 2023 Other Roll-Off Service Rates - Effective April 1, 2022 - June 30, 2023 Roll-Off Delivery, Relocation Charge, Re-Start Fee Construction and Demolition Disposal Charge Description Greenwaste Only Per Ton Charge Roll-Off Organic Materials and Recyclable Materials Contamination Fee - Does not apply to C& D Debris Customers who need their materials Processed to achieve the CalGreen r eq uirements. Returned Check Fee Rental Fee Per Day for Refuse (a) The Disposal charge per ton includes: landfill tipping fee (actual cost) plus $8.25 per ton. (b) Temporary Roll-Off Customers may be charged a delivery charge, a pull charge, plus four tons (4) of Disposal or applicable material per ton charge. If tonnage is less than four (4) tons or greater than four (4) tons, the customer will be credited/charged accordingly. (c) Roll-Off Customers may be charged a Roll-Off Box rental fee after seven (7) business days if there has been no pulls within the 7- day period. Roll-Off Customers who are using Roll-Off Boxes for Recyclable Materials or Organic Materials are not charged this rental f ee. Compactor Pull Charge (c) Landfill Disposal Charge Description Standard Refuse Pull Charge (b and c) Standard Recyclable Materials/Organic Materials/Construction & Demolition Pull Charge (b and c) Page 587 [This page has intentionally been left blank.] Page 588 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: March 10, 2022 PREPARED BY: Eric Ceja, Deputy Director of Development Services Jessica Gonzales, Senior Management Analyst REQUEST: Consideration to adopt a Mitigated Negative Declaration (MND) in accordance with the California Environmental Quality Act (CEQA), and approval of General Plan Amendment 21-0002 (GPA 21- 0002), amending the City’s Housing Element and Safety Element of the General Plan. Recommendation Waive further reading and adopt City Council Resolution No. 2022-______ adopting an MND in accordance with the CEQA, and approval of Case No. GPA 21-0002, amending the City’s Housing Element and Safety Element of the General Plan in accordance with the California Department of Housing and Community Development (HCD) guidelines. Strategic Plan • Land Use, Housing & Open Space: “Priority 2: Facility 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.” Planning Commission Recommendation The Palm Desert Planning Commission held a public hearing on the proposed amendments to the Housing Element and Safety Element on January 18, 2022. Staff recommended that the Planning Commission continue Case No. GPA 21-002 until February 1, 2022, to allow for a response from the California Department of Housing and Community Development (HCD) on the City’s Draft Housing Element update. During that public hearing, the Planning Commission also heard from a single property owner questioning the City’s ability to include property in the Housing Element. The Planning Commission continued the meeting to February 1, 2022, to allow for additional response. On February 1, 2022, the Planning Commission received a response from the City Attorney’s office regarding the City’s legal ability to identify specific properties for housing development to enact the amendments to the General Plan and Housing Element. Staff Page 589 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 2 of 11 only received preliminary comments from HCD; however, we felt confident that the Draft Housing Element met the necessary legal requirements and would be accepted by HCD. The Planning Commission voted 3-0 (Commissioners DeLuna and Pradetto absent) in recommending approval of the amendments of the Housing and Safety Elements. Executive Summary As a required Element of the General Plan, the Housing Element analyzes the existing housing stock, and existing and future housing needs based on demographic data and provides strategies to meet the housing needs of the City’s residents. The Housing Element focuses on affordable housing and housing for special needs populations, including seniors, disabled persons (including developmental disabilities), large families, single-parent households, and the homeless. The Goals, Policies, and Programs identified in this Housing Element will assist the City’s decision-makers in facilitating housing development and preservation to address the need. The City is complying with the mandatory update schedule for Housing Elements. This update addresses the 2022-2029 planning period. The Safety Element Update addressed changes in the requirements of the law, including flood hazard, fire hazard mapping, and emergency preparedness. The Safety Element Update reflects the current fire hazard mapping by CalFire and current FEMA flood hazard zones. The update also expanded discussion on flood hazard, fire hazard, and emergency response by referring to the City’s Municipal Code Title 28 Flood Damage Prevention, the Local Hazard Mitigation Plan adopted by the City in 2017, and Riverside County Multi-Jurisdictional Local Hazard Mitigation Plan approved by FEMA and adopted in 2018. It is important to note that neither the Housing Element Update nor the Safety Element Update will result in any physical development or change in the environment. Both updates are policy documents, which the City will use in reviewing and implementing development in the future, as projects are proposed. Background State law requires that each City adopt a General Plan to guide land use and development. Among the seven (7) required “elements” of the General Plan is the Housing Element. The Housing Element sets forth goals, policies, and programs that address the future housing needs for all income levels over an eight-year (8) planning period, which coincides with the Regional Housing Needs Assessment (RHNA) projection period. The RHNA is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan. RHNA quantifies the need for housing within each jurisdiction during specified planning periods. The City is required by state law to update its Housing Element every eight (8) years to coincide with the approved RHNA. Housing Element planning periods are sometimes referred to as “cycles.” The City’s existing Housing Element covers the planning period Page 590 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 3 of 11 extending from 2013-2021, which is referred to as the “Fifth Housing Element Cycle” in reference to the five (5) required updates that have occurred since the comprehensive revision to the State Housing Element law in 1980. Every city and county in the Southern California Association of Government (SCAG) region is required to prepare a Housing Element update for the sixth planning cycle, which spans the 2021-2029 period (October 15, 2021-October 15, 2029). When updating the Housing Element, the City must also review the Safety Element of the General Plan and update accordingly. The purpose of the Safety Element review and update is to confirm that potential housing sites are developable and that there are minimal obstacles to developing these sites. The following provides a general timeline describing major milestones in preparing the City of Palm Desert Draft 2021-2029 Housing Element Update: • January 6, 2021: Public Meeting, Housing Commission Workshop No. 1, via Zoom on the 2021 Housing Element framework, process, and proposed updates. • January 21, 2021: Community Workshop No. 2, via Zoom on the 2021 Housing Element framework, process, and proposed updates. • February 8, 2021: First draft Housing Element available for Public Review. • March 25, 2021: City Council Study Session, via Zoom on the 2021 Housing Element framework, process, and proposed updates. • April 8, 2021: First Draft submitted to State Housing and Community Development (HCD). • May 15, 2021: First draft Housing Element with revisions was transmitted to State Housing and Community Development (HCD) for a 60-day review. • May 11, 2021: City staff met with HCD staff to receive preliminary verbal comments on the draft document. • June 7, 2021: The City received a written letter from HCD (Attachment 2) finding that while the First draft Housing Element addresses many statutory requirements, revisions will be necessary to comply with State Housing Element Law. • July 2, 2021: In compliance with Senate Bill SB 18 notification requirements (Tribal Consultation), City staff mailed a project description to local tribes identified by the Native American Heritage Commission (NAHC). No requests for consultation were received; ACBCI commented that they had no concerns during the requisite 90- day response period for this notification. • July through August 2021: City staff and consultant revised the First draft Housing Element in response to HCD’s comments. • September 2, 2021: Joint City Council and Planning Commission Study Session, via Zoom on the revisions and posted the Second draft Housing Element on the City website for public review and comment during September 10, 2021, through September 24, 2021. • September 27, 2021: 2nd Draft Housing Element was transmitted to HCD for a 60- day review. HCD’s deadline to respond was November 24, 2021. • June through November 2021: Staff and consultant prepared the revisions to the Safety Element. Page 591 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 4 of 11 • November 15, 2021: City submitted the Safety Element to the California Department of Conservation and California Board of Forestry and Fire Protection. No comments were received from the former, and the latter approved the Safety Element Update on December 10, 2021. • A courtesy letter was sent to all property owners for the properties listed on Table 2 (see below) on November 1, 2021, and again on January 12, 2022. • The Planning Commission hosted the first public hearing of the amendments January 18, 2022 and continued the hearing to their meeting on February 1, 2022. • On February 1, 2022, the Planning Commission reconsidered the amendments and voted in favor recommending approval of the amendments to the City Council. City of Palm Desert Draft 2021-2029 Housing Element Content State law (California Government Code Sec. 65583 et seq) sets forth extensive requirements for Housing Elements and related land use regulations related to housing. The Draft 2021-2029 Housing Element (Attachment 3) is similar in format to the City’s current Housing Element and includes the following components: • An introduction providing background information and context for the Housing Element. • An analysis of the City's demographic and housing characteristics, trends, and special needs. • An evaluation of resources and opportunities available to address housing issues. • A review of potential market, governmental, and environmental constraints to meeting housing needs. • The Housing Plan, including policies and programs for the 2021-2029 planning period. • A review of accomplishments during the previous planning period. • An inventory of the potential sites for housing development. • A summary of opportunities for public participation during the preparation and adoption of the Housing Element. The most important part of the Housing Element is the Housing Plan as it describes the City’s policies, programs, and objectives for the 2021-2029 planning period. Housing programs have been updated to reflect current circumstances and include commitments for specific actions over the next eight (8) years. While most programs reflect a continuation of existing City policy, some recent changes in state housing law will require the City to amend local regulations to conform to current law. Regional Housing Needs Assessment The Regional Housing Needs Assessment (RHNA) is mandated by state law to quantify the need for housing throughout the state. This informs the local planning process to address existing and future housing needs resulting from projected state-wide growth in population, employment, and households. The Housing Element Update must address the housing needs identified by the RHNA prepared and adopted by the Southern Page 592 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 5 of 11 California Association of Governments (SCAG) for the City of Palm Desert. As the Council of Governments (or regional planning agency), SCAG is responsible for overseeing the RHNA process for the Southern California region encompassing six (6) counties (Imperial, Los Angeles, Orange, Riverside, San Bernardino, and Ventura) and 191 cities in an area covering more than 38,000 square miles. In March 2021, SCAG adopted RHNA allocations for each county and the 191 cities under their region. Based on RHNA projections, the City of Palm Desert was assigned a total of 2,790 new housing units, which is further distributed into the following four (4) income categories (Table 1): Table 1 6th Cycle RHNA by Income Category for Palm Desert Very Low Low Moderate Above Moderate Total 675 460 461 1,194 2,790 While the City’s draft Housing Element for 2021-2029 identifies adequate sites (refer to the discussion under “Sites Inventory”) to fulfill the needs established by RHNA, construction of new housing units will depend upon the private market, including a landowner’s desire to develop their land, private financing, developer interest, and overall market demand. In addition, public housing subsidies, which can assist in promoting housing development, are not necessarily consistent or accessible and will depend upon the availability of various government funds—local, county, state, and federal. The responsibility of the City is to encourage the construction of affordable housing by identifying adequate sites suitable for residential development to meet RHNA obligations, providing policies and programs that promote the development of a variety of housing types, and providing assistance to developers by facilitating the review and approval of development permits. Sites Inventory The City must demonstrate in its Housing Element the ability to meet the assigned housing needs through the provision of sites suitable for residential development. To meet the assigned housing needs, the Housing Element identifies sites (Page 88 of the Draft Housing Element) that may be suitable for residential development, including vacant sites throughout the community. The analysis demonstrates that the City has adequate capacity to accommodate the RHNA for the 2021-2029 planning period and that rezoning of the property to accommodate RHNA is not necessary. Page 593 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 6 of 11 Table 2 Page 594 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 7 of 11 Under current law, cities are not penalized if actual housing production does not achieve the RHNA allocation; however, cities may be required to streamline the approval process for qualifying housing developments that meet specific standards (such as affordability and prevailing wage labor requirements) if housing production falls short of the RHNA allocation. However, one of the objectives of the Housing Element update is to ensure adequate property is available for the RHNA projection, which the City can demonstrate with the table above. Key Challenges of the 6th Cycle Several new requirements for the 6th Cycle Housing Elements make it challenging for cities to identify sites to accommodate their required RHNA allocations. The key changes are: • Higher allocations: There is a higher total regional housing need. HCD’s identification of the region’s total housing needs has changed to account for unmet existing needs, rather than only projected housing needs. Under changes to state law HCD must now consider: o Overcrowded households. o Cost-burdened households (those paying more than 30 percent of their income for housing). o A target vacancy rate for a healthy housing market (with a minimum of five (5) percent). • Affirmatively Furthering Fair Housing (AFFH): Local Housing Elements must affirmatively further fair housing. AFFH means taking meaningful actions, in addition to combating discrimination, that overcomes patterns of segregation and fosters inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. According to HCD, achieving this objective includes preventing segregation and poverty concentration as well as increasing access to areas of opportunity. HCD has mapped Opportunity Areas and has developed guidance for jurisdictions about how to address affirmatively furthering fair housing in Housing Elements. • Limits on Sites: Identifying Housing Element sites for affordable units will be more challenging. There are new limits on the extent to which jurisdictions can reuse sites included in previous Housing Elements and increased scrutiny of small, large, and non-vacant sites when these sites are proposed to accommodate units for very low- and low-income households. • Safety Element: State law requires that the Safety Element of the General Plan be updated concurrently with the Housing Element. The Safety Element must address new requirements related to wildfire risk, evacuation routes, and climate adaptation and resilience in an integrated manner. As prepared and in consultation with HCD, staff believes that the City’s Housing Element and Safety Element updates address each of these concerns with minimal impact on the City’s ability to adopt updates for both Elements. Page 595 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 8 of 11 Penalties for Noncompliance Jurisdictions face a number of consequences for not having a “certified” Housing Element. Under legislation enacted in recent years, if a city does not comply with state housing law, it can be sued–by individuals, developers, third parties, or the State. In addition to facing significant fines, a court may limit local land use decision-making authority until the jurisdiction brings its Housing Element into compliance. Additionally, local governments may lose the right to deny certain housing projects. Conversely, an HCD-certified Housing Element makes cities eligible for numerous sources of funding, such as Local Housing Allocations, Affordable Housing and Sustainable Communities Grants, SB 1 Planning Grants, CalHOME Program Grants, Infill Infrastructure Grants, Pro-Housing Design funding, Local Housing Trust Funds, and Regional Transportation Funds. Safety Element As required by state law, the Safety Element identifies forces of nature and events resulting from human action that has the potential to cause harm to life and property in the City. The Safety Element Update addressed changes in the requirements of the law, including flood hazard, fire hazard mapping, and emergency preparedness (Attachment 4). The Safety Element Update reflects the current fire hazard mapping by CalFire and current FEMA flood hazard zones. The update also expanded discussion on flood hazard, fire hazard, and emergency response by referring to the City’s Municipal Code Title 28 Flood Damage Prevention, the Local Hazard Mitigation Plan adopted by the City in 2017, and Riverside County Multi-Jurisdictional Local Hazard Mitigation Plan approved by FEMA and adopted in 2018. HCD Review An important difference between the Housing Element and other elements of the General Plan is the extent of state oversight. The state legislature has declared an adequate supply of housing to be a matter of statewide importance and has delegated authority to HCD to review city Housing Elements and issue opinions regarding their compliance with state law. A finding of Housing Element compliance by HCD is referred to as “certification” of the Housing Element. On November 24, 2021, HCD issued a letter (Attachment 5) finding that while the draft Housing Element addresses many statutory requirements, revisions will be necessary to comply with State Housing Element Law. Based on HCD’s comments, staff has prepared a proposed revisions to the Housing Element (Attachment 6). The Summary of HCD Comments and City Responses (Attachment 5 and 6) summarizes HCD’s comments and how the element has been revised to address each comment. While many of the comments requested additional information and analysis, the structure of the element remains the same. The proposed revisions were submitted to HCD for informal review on January 4. Staff is coordinating with HCD to expedite their review, and will provide a Page 596 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 9 of 11 verbal update at the hearing. State law requires the City Council to consider HCD’s comments and make appropriate findings as part of the Housing Element adoption process. Following City Council adoption, the Housing Element must be submitted for HCD review. HCD then will issue its opinion as to whether the adopted Housing Element complies with state housing law. HCD has 90 days to complete its review of the adopted Housing Element and to certify it or provide additional comments. General Compliance The proposed 2021-2029 General Plan Housing Element Update is internally consistent with the goals, objectives, and policies contained in the other Elements of the City of Palm Desert General Plan. The Housing Element Update facilitates the provision of housing for all income categories needed to serve existing and future residents of the community. Analysis The Housing Element is a planning tool that the City uses to implement the development of housing, particularly affordable housing. It is important to note that the City is not responsible for the construction of any of these units. Housing Element law requires that the City’s policies and programs facilitate the development of affordable housing, identify adequate sites for housing development to meet the City’s RHNA obligation, and do not impose constraints on housing. It does not require that the City build the units. The 2021-2029 Housing and Safety Element would not result in any direct or indirect physical changes to the environment. The Housing and Safety Element Update are strictly policy documents and do not provide entitlements to any specific land use projects. The Housing Element Update does not make any changes to the General Plan land use map and would not modify any land-use designations, allowed densities, or land use intensities established by the General Plan. Public Input Public Notification: A notice of public hearing describing the project, date, time, and location of the hearing was published in The Desert Sun on January 8, 2022, at least 10 days prior to the hearing date (Attachment 7). A notice was also posted at City Hall and made available on the City’s website. A courtesy letter was sent to all property owners for the properties listed on Table 2 above of the Housing Element on November 1, 2021, and again on January 12, 2022 (Attachment 8). Page 597 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 10 of 11 Public Comments: All the written correspondence received will be provided to the Planning Commission as an attachment to the staff report (Attachment 10). Environmental Review According to the CEQA, staff must determine whether a proposed activity is a project subject to CEQA. If the project is subject to CEQA, staff must conduct a preliminary assessment of the project to determine whether the project is exempt from CEQA review. If a project is not exempt, further environmental review is necessary. Further review from a non-exempt project would result in a Negative Declaration of Environmental Impact, a Mitigated Negative Declaration, or an Environmental Impact Report (EIR). Generally, an EIR must be prepared if a project may have a significant impact on the environment. The Deputy Director of Development Services Department (“Deputy Director”) reviewed this project under the requirements of the CEQA. The Deputy Director found that the Housing Element is a “project” as defined by CEQA. As a result, the City completed an Initial Study. The Initial Study found that the Housing Element will have no impact on the Environment, and a Negative Declaration is proposed (Attachment 9). The Initial Study is attached to this staff report. The environmental impact of constructing specific projects will be assessed on a case-by-case basis as those projects are proposed. Findings of Approval The proposed 2021-2029 Housing and Safety Elements Updates are internally consistent with the goals, objectives, and policies contained in the other Elements of the City of Palm Desert General Plan. Findings can be made in support of the project and in accordance with the City’s Municipal Code. Findings in support of this project are contained in Planning Commission Resolution No. 2804 attached to this staff report, recommending that the City Council approve General Plan Amendment GPA 21-02 updating the Housing and Safety Element. City staff will then transmit the adopted Housing Element Update for review and final certification by HCD. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Director 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 Page 598 March 10, 2022 – Staff Report Case No. GPA 21-0002 Housing Element and Safety Element Update Page 11 of 11 APPLICANT: City of Palm Desert ATTACHMENTS: 1. Draft City Council Resolution No. ______ 2. Planning Commission Resolution No. 2804 3. HCD Letter June 7, 2021 4. 2nd DRAFT 2021-2029 Housing Element 5. DRAFT Safety Element 6. HCD Letter November 24, 2021 7. Proposed Revisions submitted to HCD January 4, 2022 8. Public Hearing Notice 9. Notice to Property Owners 10. Negative Declaration 11. Public Comments Page 599 CITY COUNCIL RESOLUTION NO. ________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE ADOPTION OF A NEGATIVE DECLARATION OF ENVIRONMENTAL IPMACT AND ADOPTION OF AMENDMENTS TO THE GENERAL PLAN HOUSING ELEMENT AND SAFETY ELEMENT CASE NO: GPA 21-0002 WHEREAS, the City Council of the City of Palm Desert, California, did on the 10th day of March, 2022, 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 Planning Commission of the City of Palm Desert, California, did on the 18th day of January 2022, hold a duly noticed public hearing to consider the request by the City of Palm Desert for approval of the above noted; and WHEREAS, said application has complied with the requirements of the "City of Palm Desert Procedure for Implementation of the California Environmental Quality Act,” Resolution No._______ the Deputy Director of Development Services found that the Housing Element and Safety Element amendments are a “project” as defined by CEQA. As a result, the City completed an Initial Study. The Initial Study found that the Housing Element and Safety Element will have no impact on the Environment and a Negative Declaration is proposed. 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 approval of said request: FINDINGS OF APPROVAL 1. The proposed Housing Element Update is in the public interest and there will be a community benefit, insofar as the proposed Housing Element facilitates the development of housing for all residents of Palm Desert. Development of housing for residents of all income levels will also reduce the vehicle miles traveled in the City, which will improve the regional air quality and reduce wear and tear on public streets and infrastructure, all of which is in the public interest. 2. The proposed Housing Element Update is consistent with the goals and policies of the General Plan, insofar as it is consistent with the other elements of the General Plan and implements policies and programs directly relating to residential land uses. 3. The proposed Housing Element Update does not conflict with provisions of the Zoning Ordinance, and the Zoning Ordinance is being updated to comply with state law. Page 600 2 CITY COUNCIL RESOLUTION NO. _______ W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\18 PH MND amending Housing Element and Safety Element\Attachment 1 - CC_Resolution - Housing & Safety Element.docx NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: 1. That the above recitations are true and correct and constitute the findings of the City Council in this case. 2. That the City Council does hereby approve of General Plan Amendment 21-0002 as proposed. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ JAN HARNIK, MAYOR ATTEST: __________________________________ NIAMH ORTEGA, DEPUTY CITY CLERK Page 601 3 CITY COUNCIL RESOLUTION NO. _______ W:\Staff Reports - Shared 2\Staff Reports 2022-0310\5 - Clerk's Office - 2022-0310\18 PH MND amending Housing Element and Safety Element\Attachment 1 - CC_Resolution - Housing & Safety Element.docx EXHIBIT “A” NEGATIVE DECLARATION Pursuant to Title 14, Division 6, Article 6 (commencing with section 15070) of the California Code of Regulations. APPLICANT/PROJECT SPONSOR: City of Palm Desert 73-510 Fred Waring Drive PROJECT DESCRIPTION/LOCATION: Negative Declaration of Environmental Impact regarding the approval of the update of the Housing Element of the General Plan, in conformance with State requirements. The Deputy Director of the Department of Development Services, City of Palm Desert, California, has found that the described project will not have a significant effect on the environment. A copy of the Initial Study has been attached to the document supporting the findings. ______________________________________ _____________________ ERIC CEJA DATE DEPUTY DIRECTOR OF DEVELOPMENT SERVICES Page 602 Page 603 Page 604 Page 605 Page 606 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor June 7, 2021 Eric Ceja Deputy Development Service Director City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Dear Eric Ceja: RE: Review of Palm Deserts 6th Cycle (2021-2029) Draft Housing Element Thank you for submitting the City of Palm Desert’s (City) draft housing element received for review on April 8, 2021 along with revisions on May 24, 2021. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. Our review was facilitated by telephone conversations on May 7 and May 11, 2021 with Nicole Criste, the City’s Consultant; Jessica Gonzalez, Senior Management Analyst; and Eric Ceja, Principal Planner. The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). In particular, to comply with State Housing Element Law, the element must provide a complete site inventory as well as provide a full analysis addressing the required components for Affirmatively Furthering Fair Housing (AFFH), among other items. The enclosed Appendix describes revisions needed to comply with State Housing Element Law. To remain on an eight-year planning cycle, the City must adopt its housing element within 120 calendar days from the statutory due date of October 15, 2021 for Southern California Association of Governments (SCAG) localities. If adopted after this date, Government Code section 65588, subdivision (e)(4), requires the housing element be revised every four years until adopting at least two consecutive revisions by the statutory deadline. For more information on housing element adoption requirements, please visit HCD’s website at: http://www.hcd.ca.gov/community-development/housing- element/housing-element- memos/docs/sb375_final100413.pdf. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 ***.hcd.ca.gov Page 607 Eric Ceja, Deputy Development Service Director Page 2 available and considering and incorporating comments where appropriate. This is particularly important since past participation efforts resulted in many meaningful comments that do not appear to be incorporated in the element. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. HCD appreciates the hard work and effort Eric Ceja, Principal Planner; Jessica Gonzalez; Senior Management Analyst, and Nicole Criste, consultant provided during the course of our review. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Edgar Camero, of our staff, at edgar.camero@hcd.ca.gov. Sincerely, Shannan West Land Use & Planning Unit Chief Enclosure Page 608 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 1 June 7, 2021 APPENDIX CITY OF PALM DESERT The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD’s website at **********.hcd.ca.gov/community-development/housing-element/housing-element- memos.shtml. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources. A. Housing Needs, Resources, and Constraints 1. An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2)) Condition of Housing Stock (pg. III-24): The element identifies the age of the housing stock and uses census data to identify housing units lacking complete facilities. However, this data is insufficient to estimate the number of units in need of rehabilitation and replacement. The analysis could supplement this information with estimates from a recent windshield survey or sampling, estimates from the code enforcement agency, or information from knowledgeable builders/developers, including non-profit housing developers or organizations. 2. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction (Gov. Code, § 65583, subd. (c)(10)(A)) The element includes the Assessment of Fair Housing (AFH) that was prepared in 2017; however, additional information is necessary to address the requisite affirmatively furthering fair housing analysis requirement, including local contributing factors to the fair housing issues and develop strong programs and strategies to address the identified fair housing issues.as follows: Fair Housing Enforcement and Outreach: The element must include the City’s ability to provide enforcement and outreach capacity which can consist of actions such as the City’s ability to investigate complaints, obtain remedies, or the City’s ability to engage in fair housing testing. The element currently states the number of housing discrimination complaints in Palm Desert filed between the years 2007-2016 but must be updated to include the most recent data and analyze the data for any patterns or trend by community area or census tract and include additional local knowledge, relevant factors, and a conclusion of summary of issues. In addition, the element states that the City works with the Fair Housing Council of Riverside County Page 609 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 2 June 7, 2021 (FHCRC) to provide anti-discrimination services; landlord-tenant mediation; fair housing training and technical assistance; enforcement of housing rights; administrative hearing; home buyer workshop; lead-based paint programs; and other housing related services for City residents. However, the analysis must also describe compliance with existing fair housing laws and regulations and include information on fair housing outreach capacity. Racial/Ethnic Areas of Concentration of Poverty: The element includes information relative to Racially and Ethnically Concentrated Areas of Poverty (R/ECAP), but the analysis must be complemented by quantitative evidence for the local and regional comparison. In addition, the City should also analyze the racial concentrations as it relates to areas of affluence if the City does not have areas of concentrated poverty. The combination in the R/ECAP and areas of affluence analyses will help guide goals and actions to address fair housing issues. The analysis should evaluate the patterns and changes over time and consider other relevant factors, such as public participation, past policies, practices, and investments and demographic trends. Access to Opportunity: The element provides qualitative information (pg. III-33) on the access to opportunity but must include quantitative evidence to support such statements. A complete analysis should include the locally and regional disparities of the educational, environmental, and economic scores through local, federal, and/or state data. The element makes references to tables and maps however, none of these tables or maps are provided in the element. Please refer to page 35 of the AFFH guidebook (link: https://www.hcd.ca.gov/community- development/affh/index.shtml#guidance) for specific factors that should be considered when analyzing access to opportunities as it pertains to educational, employment, environmental, transportation, and any factors that are unique to Palm Desert. Integration and Segregation: The element includes some data on integration and segregation (pg. III-32) at the regional and local level; however, the comparison of segregation levels at the regional and local level must be complemented by data to support statements such as “[segregation] has remained in the low level category” and “the City has a low segregation level….compared to a moderate level segregation level for the bi-county”. The element must also analyze segregation and integration of familial status, income, and persons with disabilities locally and regionally complemented by data and concluding with a summary of issues. Disproportionate housing needs and Displacement Risk: The element does include data on overcrowded households, substandard housing conditions, and cost burdened households, but it must also analyze the data including looking at trends, patterns, and other local knowledge, and conclude with a summary of issues. Site Inventory: The element includes a map of the site inventory and states that the proposed sites to meet lower-income regional housing needs allocation (RHNA) are geographically distributed which results in these sites affirmatively furthering fair housing (pg. III-33). However, the accompanying analysis shall also be reflective of Page 610 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 3 June 7, 2021 housing development at all income-levels and evaluate the sites relative to socio- economic patterns. The site inventory analysis should address how the sites are identified to improve conditions (or if sites exacerbate conditions, how a program can mitigate the impact), whether the sites are isolated by income group and should be supported by local data and knowledge. Contributing Factors: The element must list and prioritize contributing factors to fair housing issues. Contributing factors create, contribute to, perpetuate, or increase the severity of fair housing issues and are fundamental to adequate goals and actions. Examples include community opposition to affordable housing, housing discrimination, land use and zoning laws, lack of regional cooperation, location and type or lack of affordable housing and lack of public or private investment in areas of opportunity or affordable housing choices. The analysis shall result in strategic approaches to inform and connect goals and actions to mitigate contributing factors to affordable housing. Goals, Priorities, Metrics, and Milestones: Goals and actions must significantly seek to overcome contributing factors to fair housing issues. Currently, the element identifies program(s) to encourage and promote affordable housing; however, most of these programs do not appear to facilitate any meaningful change nor address affirmatively furthering fair housing requirements. Furthermore, the element must include metrics and milestones for evaluating progress on programs, actions, and fair housing results. Given that most of the City is considered a high and highest resource community, the element could focus on programs that enhance housing mobility and encourage development of more housing choices and affordable housing. Programs also need to be based on identified contributing factors, be significant and meaningful. The element must add, and revise programs based on a complete analysis and listing and prioritization of contributing factors to fair housing issues. Furthermore, the element must include metrics and milestones for evaluating progress on programs, actions, and fair housing results. For more information, please see HCD’s guidance at https://www.hcd.ca.gov/community-development/affh/index.shtml. 3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) The City has a regional housing need allocation (RHNA) of 2,790 housing units, of which 1,135 are for lower-income households. To address this need, the element relies on pending projects and vacant sites. To demonstrate the adequacy of these sites and strategies to accommodate the City’s RHNA, the element must include complete analyses: Progress in Meeting the RHNA: The element indicates that 92 units affordable to Page 611 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 4 June 7, 2021 lower-income households have been built or are under construction or entitled, but the element provides no information documenting how affordability of the units was determined. As you know, the City’s RHNA may be reduced by the number of new units built or entitled since June 30, 2021; however, the element must describe the City’s methodology for assigning these units to the various income groups based on actual or proposed sales price or rent level of the units and demonstrate their availability in the planning period. Pending Projects: The element identifies several proposed projects in the pipeline which the City expects to be built with housing affordable to low- and very low-income households (Sites LL-KK). However, the element is unclear whether projects have submitted applications for these sites, and what approvals remain necessary, expecting timelines for completion of the entitlement process, and demonstrate their availability in the planning period. In addition, the element must also describe the City’s methodology for assigning these units to the various income groups based on actual or proposed sales price or rent level of the units. In addition, Table III-48 includes a number of projects/sites that have been entitled for single family homes, condominiums, and townhomes affordable to above moderate-income households. However, it is unclear from the element if these “projects” are specific plans which require further approvals or actual entitled projects pending building permits. The element should clarify any additional approvals necessary prior to construction, and estimated buildout timelines to demonstrate availability of these units in the planning period. For example, the University Park project seems to have multiple phases. The element should identify if units for University Park are approved or pending; describe the status of the project, including any necessary approvals or steps prior to development; development agreements; and conditions or requirements such as phasing or timing requirements that impact development in the planning period. Sites Inventory: Pursuant to Government Code section 65583.3, subdivision (b), the City must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory (for all income-levels). For example, sites to be consolidated should be listed by individual parcel numbers. Sites to be consolidated can then be indicated using the consolidated sites column. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/community- development/housing-element/index.shtml for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance. Please note, upon adoption of the housing element, the City must submit an electronic version of the sites inventory with its adopted housing element to sitesinventory@hcd.ca.gov. Zoning for Lower-Income Households: Pursuant to Government Code section 65583.2, subdivision (c)(3)(A) and (B), the element must identify sites with zoning and densities appropriate to encourage and facilitate the development of housing for lower-income households based on factors such as market demand, financial feasibility and development experience within zones. For communities with densities that meet specific standards (at least 30 units per acre for Palm Desert), this analysis is not Page 612 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 5 June 7, 2021 required (Gov. Code, § 65583.2, subd. (c)(3)(B)). Based on Table III-47, it appears the City is relying on sites with densities ranging from 10-22 units per acre to accommodate the remaining need for lower-income. The element must include a complete analysis to demonstrate how this zoning encourages the development of units affordable for lower-income households. Realistic Capacity: The element estimates that vacant sites will be built out using an estimate of 80 percent of the allowable density but does not describe the methodology for that determination. The element must describe the methodology for determining capacity based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of sufficient water, sewer, and dry utilities. For sites zoned for nonresidential uses (e.g., commercial and mixed-use zones), the element must describe how the estimated number of residential units for each site was determined. To demonstrate the likelihood for residential development in nonresidential zones, the element could describe any performance standards mandating a specified portion of residential and any factors increasing the potential for residential development such as incentives for residential use, and residential development trends in the same nonresidential zoning districts. For additional information, see the Building Blocks at http://www.hcd.ca.gov/community- development/building-blocks/site-inventory-analysis/analysis-of-sites-and- zoning.shtml#analysis. Large Sites: Table III-47 includes two sites larger than 10 acres (Map Key D and F) and states that larger sites are not constrained from development due two proposed projects being developed; however, those sites are being developed with a mix of market and lower-income housing. In order to demonstrate that these sites can accommodate the lower-income need, the element must demonstrate that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower- income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). For example, the element could estimate the same proportion of lower-income housing similar to entitled and approved projects could be accommodated on Sites D and F. For additional information, see the Building Blocks at **********.hcd.ca.gov/community-development/building-blocks/site-inventory- analysis/analysis-of-sites-and-zoning.shtml#analysis. Small Sites: The element identifies two sites (Map Key BB and CC) at less than a half-acre and includes several sites that appear to require consolidation. Sites smaller than an half-acre in size are deemed inadequate to accommodate housing for lower-income housing unless it is demonstrated that sites of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for the site or unless the housing element describes other evidence to HCD that the site is adequate to accommodate lower- income housing (Gov. Code, § 65583.2, subd. (c)(2)(A).). As the element appears to rely on consolidated small sites to accommodate the RHNA for lower-income Page 613 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 6 June 7, 2021 households, it should also provide analysis demonstrating the potential for consolidation. For example, the analysis could describe the City’s role or track record in facilitating small-lot consolidation, policies or incentives offered or proposed to encourage and facilitate lot consolidation, conditions rendering parcels suitable and ready for lot consolidation, or information from the owners of each aggregated site. Zoning for a Variety of Housing Types: The element must demonstrate zoning for a variety of housing types, as follows: Emergency Shelters: The element describes a zone to permit emergency shelters without discretionary action and describes the capacity to accommodate the need for emergency shelters. The City must ensure that the zoning adheres to the new parking requirement standards per AB 139 (Chapter 335, Statutes of 2019). AB 139 requires that the zone for emergency shelter allows for sufficient parking for the staff of the emergency shelter. The element must include programs as appropriate based on the outcomes of this analysis. 4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, local processing and permit procedures, and any locally adopted ordinances that directly impact the cost and supply of residential development. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7). (Gov. Code, § 65583, subd. (a)(5).) Local Processing and Permit Procedures: The element provides a general overview of the City’s processing and permit procedures and states that that all multifamily must requires a precise plan for multifamily projects. In addition, the element states the Architectural Review Commission review is required for all projects. The element must describe and analyze the precise plan and architectural review requirements including approval procedures and decision-making criteria for their impact as potential constraints on housing supply and affordability. For example, the analysis could describe required findings and discuss whether objective standards and guidelines improve development certainty and mitigate cost impacts. It could also provide examples of recent timeframes for recent projects that have been approved by the City. The element must demonstrate this process is not a constraint and include a program to address this permitting requirement, as appropriate. Fees and Exactions: While the element includes many fees typically charged to a multifamily and single-family project, it does not consider all planning required for a project. For example, the element describes that a precise plan is required for Page 614 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 7 June 7, 2021 multifamily development, but Table III-21 does not include the fee charged for processing the precise plan nor consider the cost associated with architectural review. Table III-21 should describe and analyze all fees charged to a typical project. The element could use recent examples of projects to help support this analysis. 5. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583.2, and the length of time between receiving approval for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality’s share of the regional housing need in accordance with Government Code section 65584. The analysis shall also demonstrate local efforts to remove nongovernmental constraints that create a gap between the locality’s planning for the development of housing for all income levels and the construction of that housing. (Gov. Code, § 65583, subd. (a)(6).) Nongovernmental Constraints: The element contains information on nongovernmental constraints such as land and construction costs; the availability of financing; economic constraints; and requests to develop at densities below the density identified in the sites inventory (pg. III-50). However, the element must also include analysis regarding local efforts to address non-governmental constraints that create a gap in the jurisdiction’s ability to meet RHNA by income category. B. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code, § 65583, subd. (c).) To address the program requirements of Government Code section 65583, subdivision (c)(1-6), and to facilitate implementation, all programs should be revised to include: (1) a description of the City’s specific role in implementation including meaningful actions the city will take to achieve the identified goals, policies, and program objectives; (2) definitive implementation timelines (e.g., December 31, 2021); (3) objectives, quantified where appropriate; and (4) identification of responsible agencies and officials (e.g., Planning Assistant, Community Development, etc.). In addition, the following programs required additional revisions. Page 615 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 8 June 7, 2021 Program 1.E: The program should be revised to state how the City plans on maintaining inventory of the sites proposed in the site inventory for the PR-20 and R-3 zones. For example, the program could include a commitment to post the inventory on its website, or as projects are submitted perform the calculations outlined in HCD’s No Net Loss Memorandum which can be found ***********.hcd.ca.gov/community-development/housing-element/housing-element- memos/docs/SB-166-final.pdf. The efforts shall be proactive and must include a timeline to monitor the progress of the sites and whether they are being built at the given densities. Program 3.D: The program states that the City will “strive to maintain ownership and/or long-term affordability” of the rental housing units but shall indicate what striving for looks like for this goal. The City can describe the system that is in place, if such system exists. If not, the City must describe what action will help them achieve this goal. Program 3.E: The program should state how the City plans on coordinating between affordable housing developers and social services agencies to ensure there is a system to integrate that successfully will integrate such social services resources to new housing. Program 4.A: The program currently has a list of areas it has brochures and flyers. However, this narrative must be moved to the program description and shall consider ways it plans to be inclusive to all community members. Program 4.B: The program says that it will work with agencies in the housing of disabled residents. However, the program must specify the capacity to which the City plans to work with the agencies because it is unclear if the City is working collaboratively with the agencies to provide trainings, if the agencies are providing the trainings, or if the City is facilitating the trainings. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).) As noted in the Finding A3, the element does not include a complete sites inventory or analysis; as a result, the adequacy of sites and zoning has not been established. Based on the results of a complete sites inventory and analysis, programs may need to be added, or revised, to address a shortfall of sites and zoning for a variety of housing types. Page 616 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 9 June 7, 2021 Programs 1.A-1.D: These programs are intended to facilitate the development of the entitled and pending projects outlined from Table III-47 of the element. All programs need to be revised to include specific timeframes (e.g. month, year) and should include benchmarks for completion. In addition, programs relating to proposed projects without entitlements (1.B and 1.C) must also include a monitoring program with specific actions the City will take to identify or rezone sites to accommodate the shortfall for lower-income should the proposed projects not receive the necessary entitlements within the specified timeframes. Any additional sites or rezones must meet the requirements of Government Code section 65583.2. 3. Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households. (Gov. Code, § 65583, subd. (c)(2).) The element must include a program(s) with specific actions and timelines to assist in the development of housing for extremely low-income households and households and individuals with special needs (e.g., farmworkers, persons experiencing homelessness, persons with disabilities, including developmental). The program(s) could commit to adopting priority processing, granting fee waivers or deferrals, modifying development standards, granting concessions and incentives for housing developments that include units affordable to lower and moderate-income households; assisting, supporting or pursuing funding applications; and working with housing developers coordinate and implement a strategy for developing housing affordable to lower and moderate income households. 4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. Supportive housing, as defined in Section 65650, shall be a use by right in all zones where multifamily and mixed uses are permitted, as provided in Article 11 (commencing with Section 65650). (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings A4 and A5, the element requires a complete analysis of potential governmental and non-governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. 5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning law. (Gov. Page 617 HCD Review of Palm Desert’s 6th Cycle Housing Element Page 10 June 7, 2021 Code, § 65583, subd. (c)(5).) As noted in Finding A1, the element must include a complete analysis of affirmatively furthering fair housing. Based on the outcome of that analysis, the element must add or modify programs. Additionally, programs and actions need to be significant, meaningful, and sufficient to overcome identified patterns of segregation and affirmatively further fair housing. C. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(8).) While the element includes a general summary of the public participation process (pages III-777), it must also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The element describes that only one community workshop was held in preparation of the housing element which members of the public and organizations were invited to attend. The availability of a single workshop does not demonstrate a diligent effort in public participation. The element could describe the efforts to circulate the housing element draft among low- and moderate-income households and organizations that represent them prior to submittal to HCD, the availability of materials in multiple languages, surveys, or other efforts to involve such groups and persons in the element throughout the process. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. For your information, some general plan element updates are triggered by housing element adoption. For example, a jurisdiction must address environmental justice in its general plan by the adoption of an environmental justice element, or by the integration of environmental justice goals, policies, and objectives into other general plan elements upon the adoption or next revision of two or more elements concurrently on or after January 1, 2018. (Gov. Code, § 65302, subd. (h).) In addition, the safety and conservation elements of the general plan must include analysis and policies regarding fire and flood hazard management and be revised upon each housing element revision. (Gov. Code, § 65302, subd. (g).) Also, the land-use element must identify and analyze disadvantaged communities (unincorporated island or fringe communities within spheres of influence areas or isolated long established legacy communities) on, or before, the housing element’s adoption due date. (Gov. Code, § 65302.10, subd. (b).) HCD reminds the city of Palm Desert to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at: *******opr.ca.gov/docs/OPR_Appendix_C_final.pdf and *******opr.ca.gov/docs/Final_6.26.15.pdf. Page 618 TN/City of Palm Desert General Plan/Housing Element Housing Element III-1 HOUSING ELEMENT PURPOSE Providing all residents of Palm Desert with safe and affordable housing is the ultimate goal of this Element. The Housing Element is designed to guide the City’s elected and appointed officials, as well as City staff and the general public, in locating and constructing housing to accommodate all segments of the community. The City continues to strive to provide quality housing for all its residents. BACKGROUND The Housing Element works hand in hand with the Land Use Element to balance the land uses available in the City to accommodate future growth. Land use designations are designed to accommodate all types of housing, to allow for the development of single family and multi-family units to meet the needs of the City’s residents, now and in the future. The Housing Element includes a description of existing housing types, condition of existing units, overcrowding, overpayment, special housing needs, and the demand for affordable housing in the City. The Element also includes an analysis of the progress made since the drafting of the last Housing Element, and projections of needs for the 2022-2029 planning period. California Law AB 2853, passed in 1980, established Government Code Article 10.6, Section 65580 et. seq. to define the need for, and content of Housing Elements. At its core, the law requires that the “housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing” to meet the State’s housing goals. California Government Code requires that every City and County prepare a Housing Element as part of its General Plan. In addition, State law contains specific requirements for the preparation and content of Housing Elements. According to Article 10.6, Section 65580, the Legislature has found that: (1) The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. (2) The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels. Page 619 TN/City of Palm Desert General Plan/Housing Element Housing Element III-2 (3) The provision of housing affordable to low and moderate income households requires the cooperation of all levels of government. (4) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community. (5) The legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the General Plan and to cooperate with other local governments, and the state, in addressing regional housing needs. Section 65581 of the Government Code states that the intent of the Legislature in enacting these requirements is: (1) To assure that local governments recognize their responsibilities in contributing to the attainment of the State housing goal. (2) To assure that cities and counties prepare and implement housing elements which, along with federal and State programs, will move toward attainment of the State housing goal. (3) To recognize that each locality is best capable of determining what efforts are required by it to contribute to the attainment of the State housing goal as well as regional housing needs. (4) To ensure that each local government cooperates with other local governments to address regional housing needs. The basic components of a Housing Element were established in Section 65583, and required that each Element include: • An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of local needs. • A statement of the community’s goals, quantified objectives, and policies relative to the maintenance, improvement, and development of housing. • A program that sets forth a schedule of actions to implement the policies and achieve the goals and objectives of the Housing Element to provide housing for all economic segments of the community guided by the following state housing objectives. • Provision of decent housing for all persons regardless of age, race, sex, marital status, source of income, or other factors. • Provision of adequate housing by location, type, price and tenure. • Development of a balanced residential environment including access to jobs, community facilities, and services. Since that time, Housing Element law has been regularly updated, expanded and modified. The most recent update to Housing Element law occurred in 2017, when a series of bills were passed into law to address the State’s determination that California was experiencing a State-wide housing crisis. The laws passed in 2017 addressed a wide range of housing-related issues, including Housing Elements, which are summarized below. • SB 2 established a recordation fee for real estate documentation which would fund planning grants for affordable housing and affordable housing projects. Page 620 TN/City of Palm Desert General Plan/Housing Element Housing Element III-3 • SB 3 placed a $4 billion general obligation bond on the November 2018 ballot to fund affordable housing, farmworker housing, transit-oriented development, infill infrastructure and home ownership. • SB 35 mandated a streamlined approval process for infill affordable housing projects in communities that have not, according to the Department of Housing and Community Development (HCD) met their affordable housing allocation (RHNA). • AB 72 allowed HCD to find a housing element out of compliance with State law, and to refer the non-compliant element to the State Attorney General for action at any time during a Housing Element planning period. • AB 73 provided State-funded financial incentives for local jurisdictions which choose to create a streamlined zoning overlay for certain affordable housing projects. • SB 166 required that development proposals on local jurisdictions’ sites inventory cannot be reduced in density without findings, and/or the identification of additional sites to result in ‘no net loss’ of affordable housing units in the sites inventory. • SB 540 provided State funding for the planning and implementation of workforce housing opportunity zones for very low, low and moderate income households. • AB 571 modified the farmworker tax credit program to allow HCD to advance funds to migrant housing center operators at the beginning of each planting season, and allowed migrant housing to remain open for up to 275 days annually. • AB 678 amended the Housing Accountability Act to limit a local jurisdiction’s ability to deny low and moderate income housing projects by increasing the required documentation and raising the standard of proof required of a local jurisdiction. • AB 686 (approved in 2018) required a public agency to administer its programs and activities relating to housing and community development in a manner that affirmatively furthers fair housing. • AB 879 amended the annual reporting requirements of local jurisdictions to HCD regarding proposed projects, including processing times, number of project applications and approvals, and required approval processes. • AB 1397 amended the requirements of adequate sites analysis to assure that sites are not only suitable, but also available, by requiring additional information in site inventories. • AB 1505 allowed local jurisdictions to adopt local ordinances that require affordable housing units on- or off-site when approving residential projects. • AB 1515 established a ‘reasonable person’ standard to consistency of affordable housing projects and emergency shelters with local policies and standards. • AB 1521 placed restrictions on the owners of affordable housing projects when terminating or selling their projects. Consistency with the General Plan The Housing Element must be consistent with all other Elements of the General Plan. It is particularly guided by the development policies contained in the Land Use Element and roadway policies of the Circulation Element. Housing is also shaped by policies contained in other Elements that affect the quality of life for City residents through the provision of open space and recreation areas, acceptable noise levels, and safety. The current (2022-2029) update of the Housing Element did not require that the City amend its Land Use Element or land use map, as sufficient land has Page 621 TN/City of Palm Desert General Plan/Housing Element Housing Element III-4 been identified to accommodate all housing types. The City will continue to evaluate any amendment to the General Plan, including updating of the Housing Element, as required by State law, to assure that internal consistency is maintained. Evaluation of Existing Housing Element Policies and Programs The City’s 2014-2021 Housing Element included policies and action items to address housing needs for the 2014-2021 planning period. Their effectiveness is reviewed below. Goal 1 A variety of housing types that meet all of the housing needs for all income groups within the City. Goal 2 The preservation and maintenance of the high quality of the City’s affordable housing supply. Policy 1 New affordable housing projects shall be encouraged in all areas of the City. Special attention will be made to distributing the units so that large concentrations of affordable housing in any one area are avoided. Program 1.A The City shall work with affordable housing developers, non-profit agencies and other stakeholders to implement the following affordable housing projects for extremely low, very low, low and moderate income households during the planning period. For Carlos Ortega Villas and Sagecrest Apartments, the Housing Authority shall market these projects to the development community through direct mail, announcements on the City’s web site and Requests for Proposals, once funding sources have been identified. • 31 units at Canterra Phase II • 21 units at Palm Desert 103 • 200 units at Dinah Shore and Portola • 72 units at Carlos Ortega Villas • 16 units at Sagecrest Apartments Responsible Agency: Community Development Department and Housing Authority Schedule: 2014-2021 Evaluation: The City has made progress in moving projects forward during the 2014-2021 planning period, as follows: • Canterra Phase II: Now known as The Sands, was entitled for 388 units, including 78 reserved for very low income households. The project entitlements remain active, but the project has failed to secure funding. The project is shown as site DD on the City’s inventory, and will be carried forward into the 2022-2029 planning period, in anticipation of its construction. Page 622 TN/City of Palm Desert General Plan/Housing Element Housing Element III-5 • Palm Desert 103: This project would result in 103 apartments, 20% (21 units) of which would be restricted to moderate income households. This project was inactive during the planning period, but the requirement for affordable units remains. It will be included in the City’s inventory for the 2022-2029 planning period. • Dinah Shore and Portola: The City is currently negotiating an agreement for the development of at least 200 units on 10 acres. This site will remain on the City’s inventory as site C. • Carlos Ortega Villas: This site was developed in the 2014-2021 planning period, and contains 36 units affordable to very low income households, 36 units affordable to low income households, and one manager’s unit. The project was successfully completed and will be removed from the City’s inventory and added to its list of existing affordable communities. • Sagecrest Apartments: The Housing Authority will market the project to the development community during the 2022-2029 planning period. Progress on the implementation of this project is expected in the forthcoming planning period. This program has been successful and will be modified to address current projects. Program 1.B The City shall pursue the planning and implementation of the following projects for extremely low, very low, low and moderate income households during the planning period. The City will utilize public-private partnerships, grants and third party funding for these projects, and affordable housing funds if restored by the State Legislature. • 520 units that will include single family for-sale and multi-family for rent units at Gerald Ford Drive and Portola • an additional 52 units at the Vineyards Responsible Agency: City Schedule: 2014-2021 Evaluation: This program is still being implemented, as follows: • Gerald Ford and Portola: This project site is currently proposed for 269 apartments affordable to very low and low income households, and 3 managers’ units. Application for entitlement is pending. The project is proposed on 11.4912± acres of a larger City holding owned by the Successor Agency (SARDA). The balance of the acreage continues to be marketed for affordable housing projects. The site will be maintained in the City’s inventory, and is shown as site B. • The Vineyard: This site consists of 260 existing apartments, 52 of which are currently restricted to moderate income households. An additional 52 may be offered as affordable to low or moderate income households, but were not during the 2014-2021 planning period. The agreement between the developer and the City remains effective, and the units could be subsidized in the future. This program continues to be implemented, and will be modified and maintained in the 2022-2029 planning period. Page 623 TN/City of Palm Desert General Plan/Housing Element Housing Element III-6 Program 1.C The City shall encourage and facilitate the development by private parties of the following projects for extremely low, very low, low and moderate income units: • 432 units at Key Largo • 194 units at Frank Sinatra and Cook Street • Approximately 302 units at Dinah Shore and 35th Avenue (southeast corner) The City shall annually contact the owners/developers of these lands and review with them the incentives and financing options available through State and federal loan and grant programs, and local non-profit agencies to assure that all potential financial mechanisms are being considered for the project(s). Responsible Agency: City Schedule: 2014-2021 Evaluation: The City continues to work with the land owners associated with these sites as follows: • Key Largo: The land owners are currently preparing a Specific Plan for the site, which would include apartments. Up to 200 units could be restricted to low and moderate income households. This project is still active, and will remain on the City’s inventory as site A. • Frank Sinatra and Cook Street: This project was inactive during the planning period, and is not considered viable for the future. It will be removed from the City’s inventory. • Dinah Shore and 35th Avenue: This project remains under consideration, and the City believes that it could move forward. The City will continue to work with the landowner and encourage the development of affordable housing units into the next planning period. In addition, the City approved Tentative Tract Map 37506, for land located on the south side of Gerald Ford Drive, between Portola and Technology Drive in the University Park area. This site includes a mix of single family homes, townhome and apartment sites, totaling 1,069 units. The City will continue to work with the developer to encourage the inclusion of affordable housing units in the project. This program remains active, and will be modified for the 2022-2029 planning period. Program 1.D The City shall continue to implement the Self Help Housing program when funds are available. The City will work with agencies such as Habitat for Humanity and Coachella Valley Housing Coalition to identify funding and the location of these units. Responsible Agency: City Schedule: 2016-2018, as funding is identified Evaluation: During the 2014-2021 planning period, Habitat for Humanity developed 2 homes for very low income households, which were all completed and are now occupied. In May of 2020, the City awarded the Coachella Valley Housing Coalition a contract to construct 14 self-help housing units on Merle, near Cook Street. These homes are expected to be built during the next planning period. The program will be modified and maintained to assure construction, and the project will be included in the City’s inventory as site PP. Page 624 TN/City of Palm Desert General Plan/Housing Element Housing Element III-7 Program 1.E The City shall maintain its inventory of sites zoned for PR-7 and R-3, and shall encourage the incorporation of extremely low, very low, low and moderate income housing units into these projects as they are brought forward. Responsible Agency: Planning Department Schedule: As project applications are submitted Evaluation: The City continues to encourage the provision of affordable housing in all projects, and has negotiated the inclusion of units, or the payment of in lieu fees, for several projects. In addition, in March of 2020, the City adopted the Housing Overlay District, replacing the previously enacted Medium/High Density Overlay District. The Overlay is applied to properties owned by the City, the Housing Authority and private property identified on the City’s Housing Element inventory for planning period 2014-2021. The new overlay provides significant incentives to developers, should they apply the overlay to their property for the provision of affordable housing, including development fee waivers, development standard reductions, and parking reductions. In exchange, a minimum of 20% of the units developed must be restricted to moderate, low or very low income households. The program has been successful, and will be extended into the 2022-2029 planning period. Program 1.F The City will encourage further land divisions resulting in parcel sizes that facilitate multifamily development affordable to lower income households in light of state, federal and local financing programs (i.e. 50-100 units) as development proposals are brought forward. The City will discuss incentives available for land divisions (e.g., 2-5 acres) encouraging the development of housing affordable to lower income households with housing developers as proposals are brought forward. The City will offer incentives for land division encouraging the development of affordable housing including, but not limited to: • priority to processing subdivision maps that include affordable housing units, • expedited review for the subdivision of larger sites into buildable lots where the development application can be found consistent with the Specific Plan, • financial assistance (based on availability of federal, state, local foundations, and private housing funds). Responsible Agency: Planning Department Schedule: As projects are proposed Evaluation: The City has implemented this program in two ways: the completion of the Housing Overlay District, and the encouragement of subdivision for larger projects, which was implemented with TTM 37506, and is being implemented at the Key Largo project (please see evaluation of Program 1.C above). The TTM subdivided a large holding into multiple parcels, ranging from 6 to over 20 acres, to accommodate a mix of housing types. This program is ongoing and will be continued in the 2022-2029 planning period. Page 625 TN/City of Palm Desert General Plan/Housing Element Housing Element III-8 Policy 2 The City shall encourage the rehabilitation of existing housing units through a variety of programs. Program 2.A The City shall fund the Home Improvement Program for single family homes by providing grants and low interest loans to program participants. The program will be provided to the extent that funding is available, to up to five households each year. Responsible Agency: City Schedule: Annually as funds are available Evaluation: The City implemented the program and funded four grants and loans. Funding was limited, and the City was therefore able to only implement the emergency component of this program. The program will be maintained, to assure that it is available should funding be secured. Policy3 The City shall preserve existing affordable housing units. Program 3.A The Housing Authority shall continue to subsidize affordable housing units it owns now and in the future using operating revenues. Responsible Agency: Housing Authority Schedule: Annually in the Housing Authority Budget Evaluation: The Housing Authority continues to own and operate 1,114 affordable housing units in 15 projects. The City intends to continue to operate these projects, and this program shall be continued in the 2022-2029 planning period. Program 3.B The Housing Authority shall maintain the existing resale restrictions and other subsidies on 303 ownership units if permitted to do so by the Department of Finance. Responsible Agency: Housing Authority Schedule: Throughout the planning period, if permitted by the Department of Finance Evaluation: The Housing Authority maintains affordability covenants on a total of 301 owner- occupied properties, of which 31 properties were resold to a new qualifying household with affordability covenants. Some of the covenants will expire during the 2022-2029 planning period. The Housing Authority intends to maintain these covenants, and the program will be continued and amended to address expirations in the 2022-2029 planning period. Page 626 TN/City of Palm Desert General Plan/Housing Element Housing Element III-9 Program 3.C The Housing Authority owns approximately 1,000 existing rental housing units and will strive to maintain its ownership and/or long term affordability of these units by a third party. Responsible Agency: Housing Authority Schedule: Annually in the Housing Authority Budget Evaluation: The Housing authority continues to own and operate 1,114 units, and plans to maintain ownership. This program has been successfully implemented, and will be continued in the 2022-2029 planning period. Program 3.D The City shall coordinate between affordable housing developers and social service agencies when new projects are developed to encourage the integration of services such as child care, job training, vocational education, and similar programs into new affordable housing projects through direct contact with both parties. For on-site child care, the Agency shall consider allocation of the City’s Childcare Mitigation Fee to new projects which provide the service. Responsible Agency: Housing Authority, City Manager’s Office, Community Development Department Schedule: As projects are proposed Evaluation: The City continues to operate the Jean Benson Childcare Center located within the Desert Rose project. In addition, the Hovley Gardens project provides after-school programs for school-aged children, and adult education, health and wellness, and skill building classes to residents. New projects proposed for development are encouraged to provide services to residents. As these projects are forthcoming, the level of programming has not been determined. The City will continue to encourage such programs in the 2022-2029 planning period. Policy 4 The City shall continue to strive to meet the State-mandated special shelter needs of large families, female headed households, single parent families, senior citizens, and disabled individuals and families, and shall consider including units for such households in its projects. Evaluation: The City assists disabled residents at all its Housing Authority owned properties. Between 2014 and 2020, there were between 91 and 188 disabled residents in these properties, varying by year. In 2020 the City had the highest number of disabled residents during the planning period, providing housing to 188 disabled residents. The City has approved a project for developmentally disabled persons adjacent to Desert Arc offices on Country Club Drive. In addition, the Housing Authority committed to leasing the land and funding a subsidy of up to $250,000 to assure that 5 units were for persons employed within the City, and supported CTCAC and other funding efforts. The project, which includes 36 units of special needs housing and a community center building, remains entitled but has not secured funding. The City will continue to work with the project, and this program will be maintained in the 2022-2029 planning period. Page 627 TN/City of Palm Desert General Plan/Housing Element Housing Element III-10 Program 4.A The City shall continue to enforce the provisions of the Federal Fair Housing Act. The City shall continue its referral program to the Fair Housing Council of Riverside County, and shall maintain information at City Hall and affordable housing complexes. Responsible Agency: City and Housing Authority Schedule: Brochures and flyers available at Housing Authority properties, Library, and apartment managers’ offices Evaluation: The City provides fair housing information at all its properties, and continues to fund programs operated by the Fair Housing Council of Riverside County. During the 2014-2022 planning period, the City used CDBG funds to provide the Council $239,000 to eliminate discrimination in housing throughout the City in joint efforts across the County. Program 4.B The City shall work with the Senior Center and other appropriate agencies in the housing of disabled residents. Responsible Agency: Senior Center Schedule: Annually through staff training program The Housing Authority maintains 380 of its 1,114 units, or 34%, for senior households. In addition, the City has preserved 37 non-City owned units’ affordability for seniors in assisted living communities. In 2015, the City entered into an amended agreement with the developers of the Legend Gardens community, requiring that 10 of its assisted living one-bedroom units be restricted to low income seniors. Program 4.C The City shall meet with non-profit developers and other stakeholders annually to establish and implement a strategy to continue to provide housing affordable to extremely low-income households. The City shall also consider applying for State and federal funding specifically targeted for the development of housing affordable to extremely low-income households, such as CDBG, HOME, Local Housing Trust Fund program and Proposition 1-C funds to the extent possible. The City shall continue to consider incentives, such as increased densities, modifications to development standards, priority processing and fee deferrals as part of the financing package for projects which include extremely low income units. Responsible Agency: Housing Authority Schedule: As projects are proposed The City and Housing Authority continuously seek opportunities for the development of affordable housing units, including regular contact with the development community. During the planning period, Habitat for Humanity developed 2 homes for very low income households, which were all completed and are now occupied. This has included developing a self-help housing program for 14 units with the Coachella Valley Housing Coalition, and marketing City properties to developers. This effort has led to an agreement with Pacific West Companies for the development of 269 affordable housing units, the entitlement of 36 units dedicated to special needs housing adjacent to Desert ARC, and the commitment of loan funds for the substantial rehabilitation of Hovley Gardens, a 162 unit family project. The City is currently also working with Hovley Gardens Page 628 TN/City of Palm Desert General Plan/Housing Element Housing Element III-11 to refinance the property to extend affordability for the project for an additional 55 years. This will be completed during the upcoming planning period. This program has been successful, and will be maintained in the 2022-2029 planning period. Policy 5 The City shall strive to provide shelter for the homeless and persons with disabilities. Program 5.A The City shall continue to work with CVAG on a regional solution for homelessness, including the Multi-Service Center in North Palm Springs, and the beds and services it will provide. (See discussion on page 28 regarding CVAG’s program) Responsible Agency: City Manager’s Office, City Council Schedule: Annually in the General Fund Budget Evaluation: The City funded multiple efforts to reduce homelessness. The City participated and funded $100,000 annually for regional homelessness assistance through CVAG, both for the Center in North Palm Springs, and continuing with additional services after the Center closed. In addition, the City funded two full-time positions with the Riverside University Health System to provide assistance to Palm Desert homeless residents. This program will be modified to reflect current homeless prevention efforts for the 2022-2029 planning period. Program 5.B The City will continue to coordinate with the Inland Regional Center, Desert Arc and other appropriate agencies and organizations that serve the developmentally and physically disabled population. The City will continue to encourage developers to reserve a portion of affordable housing projects for the disabled, including those with developmental disabilities. The City will support funding applications for such projects, and will consider fee waivers and reductions when these projects are proposed. Housing Authority properties are one of the vehicles available to encourage rental to developmentally disabled individuals. Responsible Agency: Planning Department, City Council Schedule: As projects are proposed The City approved a project for developmentally disabled individuals adjacent to Desert Arc offices on Country Club Drive. In addition, the Housing Authority committed to leasing the land and funding a subsidy of up to $250,000 to assure that 5 units were for persons employed within the City, and supported CTCAC and other funding efforts. The project, which includes 36 units of special needs housing and a community center building, remains entitled but has not secured funding. The City assists disabled residents at all its Housing Authority owned properties. Between 2014 and 2020, there were between 91 and 188 disabled residents in these properties, varying by year. The 2020 census is the highest of the planning period, providing housing to 188 disabled residents. Furthermore, the City provided Desert Arc $77,750 in Community Development Block Grant (CDBG-CV) funds to sustain operations during the coronavirus pandemic and implement activities related to a multi-phased re-opening plan. This program has been successful and will continue to be implemented. Page 629 TN/City of Palm Desert General Plan/Housing Element Housing Element III-12 Program 5.C The City shall encourage local organizations, such as the Coachella Valley Rescue Mission, Martha’s Village and Catholic Charities, to apply to the City for the award of CDBG funds for homeless services. Responsible Agency: City Manager’s Office Schedule: Annually with CDBG funding cycle Evaluation: During the 2014-2021 planning period, the City used CDBG funds to contribute toward energy improvements and food supplies at Martha’s Village and Kitchen totaling $312,752; at the Coachella Valley Rescue Mission, $52,770 was allocated from CDBG funds for equipment replacements, food supplies and shelter services; and Catholic Charities was allocated $5,151 for food and supplies. In total, the City allocated $370,673 toward direct assistance to homeless individuals. This program was successful and will be continued in the 2022-2029 planning period. In addition, the City provided Martha’s Village an additional $40,000 in CDBG-CV funds to provide operational costs for a 15-bed expansion for homeless individuals during the coronavirus pandemic. Likewise, the City provided the Coachella Valley Rescue Mission with an additional $40,000 in CDBG-CV funds to sustain operations during the coronavirus pandemic. Policy 6 The City shall continue to utilize restrictions, applicant screenings, and other appropriate mechanisms established as conditions of approval in order to preserve affordable for sale housing units for the long term. Program 6.A The City shall keep in regular contact with the Riverside County Housing Authority to ensure that Section 8 housing assistance within the City is actively pursued. At least 30 households should be assisted every year. Responsible Agency: City Schedule: Annually with annual compliance plan review Evaluation: The Housing Authority annually houses an average of 40 households under the Section 8 program at its properties. This program has been successful, and shall be carried forward to the 2022-2029 planning period. Program 6.B The City shall continue to work with affordable housing organizations to preserve the affordability of the Regent Palm Desert, Shadow Hills Estates and Cantera Phase I, which will be at risk of losing their affordability restrictions during the planning period. The City will coordinate with private development and management companies to promote the preservation of these units; and may cooperate through state and federal program funding for third party ownership, and other means to assure the long term affordability of the project. Responsible Agency: City Schedule: Annually as the projects’ affordability restrictions are at risk Page 630 TN/City of Palm Desert General Plan/Housing Element Housing Element III-13 Evaluation: The City made multiple efforts to preserve the affordability of units at the Regent, Shadow Hills and Cantera. All of the owners, however, declined to maintain affordability restrictions, and the units reverted to market rates. This program will be adjusted to reflect units at risk during the 2022-2029 planning period. Policy 8 The City Council shall consider, as an additional incentive, the reduction, subsidizing or deferring of development fees to facilitate the development of affordable housing. Evaluation: The City implemented this policy through the implementation of State density bonus law and the adoption of the Housing Overlay District. In addition, both the Sands project and the Arc Village project were granted fee waivers in exchange for affordability covenants during the planning period. This program has been successful, and will continue to be implemented, based on funding availability. Policy 9 The City shall continue to address the needs of the senior population in development of housing. Program 9.A The City shall maintain the Senior Housing Overlay District and the Second Unit Housing standards in the Zoning Ordinance. Responsible Agency: Community Development Department Schedule: Annually review with state General Plan report Evaluation: The City adopted the Housing Overlay District in 2020. This District allows for the waiver of fees and the reduction of development standards for projects committing to affordable housing units. In addition, the City approved a total of 162 accessory dwelling units during the planning period. Although these units are not restricted by covenant, they provide for an affordable housing option on existing single family home lots. The City will continue to implement both programs in the 2022-2029 planning period. Program 9.B The City shall continue to encourage the development of assisted living facilities for seniors. Responsible Agency: Community Development Department Schedule: As projects are proposed Evaluation: The City preserved existing affordability covenants at an assisted living facility, and increased the availability of affordable units at the Legend Gardens facility to 10. This program was successful, and will be maintained in the 2022-2029 planning period. Policy 10 The City shall implement the State’s density bonus law. Evaluation: There were no projects constructed during the planning period with density bonus units, but the Sands project received 78 very low income household density bonus units and concessions, and the forthcoming Pacific West Companies project will increase its unit count from 200 to 270 269 for very low, low and moderate income households through density bonus provisions. The City will continue to implement density bonus law consistent with law in the 2022- 2029 planning period. Page 631 TN/City of Palm Desert General Plan/Housing Element Housing Element III-14 Policy 11 Promote the jobs/housing balance through the development of housing with convenient access to commercial land uses, schools, available public transport and employment centers. Evaluation: The City continues to consider the placement of housing in proximity to jobs, and to encourage the housing of Palm Desert employees in projects. This was directly accomplished through a subsidy agreement at the Arc Village project, which provides for 5 units for Palm Desert employed households, and through the University Village Specific Plan, which places higher density residential lands in close proximity to job centers in the Portola/Gerald Ford/Cook/Fred Waring area. This policy continues to be a priority for the City, and will be carried forward into the 2022-2029 planning period. Policy 12 Encourage energy conservation through the implementation of new technologies, passive solar site planning and enforcement of building codes. Please also see the Energy and Mineral Resources Element. Program 12.A The City shall maintain an Energy Conservation Ordinance which mandates conservation in new construction beyond the requirements of the California Building Code. Responsible Agency: Planning Department Schedule: Annual review with state General Plan report Program 12.B The City shall encourage Green Building techniques, recycling in demolition, and the use of recycled, repurposed and reused materials in all new affordable housing projects to the greatest extent possible. Responsible Agency: Planning Department, Building Department, Public Works Department Schedule: As projects are proposed Evaluation: The Housing Authority has implemented energy conservation at multiple projects, including the Carlos Ortega Villas, which was constructed as a net-zero project, and with replacements of HVAC and water heating systems with high-efficiency systems at Housing Authority projects. In addition, solar installations were undertaken within the Desert Rose project. This policy continues to be important to the City, and will be carried forward to the 2022-2029 planning period. Summary of Impact on Special Needs Populations In summary, as described in the evaluation above relating to special needs programs, the City’s implementation of its Housing Element during the previous planning period supported the housing needs of special needs households: • City-owned housing communities continue to house senior residents in 7 projects totaling 366 units. Page 632 TN/City of Palm Desert General Plan/Housing Element Housing Element III-15 • City-owned housing communities continue to house physically and developmentally disabled residents, which have ranged from 91 to 188 residents in the last planning period. • The City has actively participated in moving forward on the Arc Village project, which will result in 32 units for developmentally disabled residents, in addition to the funds expended to make improvements to Desert Arc educational and vocational facilities. Page 633 TN/City of Palm Desert General Plan/Housing Element Housing Element III-16 DEMOGRAPHIC INFORMATION This section provides the demographic background for the residents of Palm Desert. The information is primarily based on 2010 U. S. Census and 2018 American Community Survey (ACS) data. Where more current data is available, it has been included in addition to the Census and ACS information. Regional Population The City of Palm Desert is located in the Coachella Valley in eastern Riverside County. Riverside County grew from 1,545,387 in 2000 to 2,189,641 in 2010. By 2018, the American Community Survey estimated that the County population had grown to 2,383,286, which represents an 8-year increase of 8.8%. The California Department of Finance (DOF) estimated that, in January 2020, Riverside County had a population of 2,442,304, an increase of 11.5% over the 2010 population. Table III-1 Population Trends – Neighboring Jurisdictions Jurisdiction 2010 2018 Change (2010-2018) Number Percent Desert Hot Springs 25,938 28,430 2,492 9.6% Palm Springs 44,552 47,525 2,973 6.7% Cathedral City 51,200 54,037 2,837 5.5% Rancho Mirage 17,218 18,075 857 5.0% Palm Desert 48,445 52,124 3,679 7.6% Indian Wells 4,958 5,317 359 7.2% La Quinta 37,467 40,704 3,237 8.6% Coachella 40,704 44,849 4,145 10.2% Indio 76,036 91,235 15,199 20.0% Riverside County 2,189,641 2,383,286 193,645 8.8% Source: 2010 U.S. Census; American Community Survey 2014-2018 5-Year Estimates. City Population Palm Desert has also experienced a rapid rate of growth. In 1990, the Census reported a population of 23,252 in the City. From 1990-2000, the City’s population grew to 41,155, an increase of 77% in ten years. By 2010, the Census reported a City population of 48,445, an increase of 17.3% in ten years. The California Department of Finance estimated that the City’s population on January 1, 2020 was 52,986, an average annual increase of under 1%. Between 2010 and 2018, the City’s growth rate (7.6%) ranked in the middle compared to other Coachella Valley cities and was less than the County’s growth rate (8.8%). Page 634 TN/City of Palm Desert General Plan/Housing Element Housing Element III-17 Table III-2 Population Trends – Palm Desert Year Population Numerical Change Percent Change Average Annual Growth Rate 2000 41,155 -- -- -- 2010 48,445 7,290 17.7% 1.8% 2020 52,986 4,541 9.4% 0.9% Source: 2000 and 2010 U.S. Census; Table E-1, Population Estimates for Cities, Counties, and the State, California Department of Finance, January 1, 2020. The Southern California Association of Governments (SCAG) Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS) projects a City population of 64,100 by 2045. Age The Coachella Valley historically has attracted older adults and retirees, and Palm Desert is no exception. The City’s median age rose from 48.0 in 2000 to 53.0 in 2010 and decreased slightly to 52.6 in 2018. With the continuing aging of America, it is expected that the median age may keep rising or stabilize. Table III-3 illustrates age characteristics for Palm Desert population in 2010 and 2018. From 2010 to 2018, children and youth groups (ages 0–19) decreased by 0.7% to 16.6%, young and middle-age adults (20 to 54 years) increased by 0.5% to 35.7%, and all age groups over 55 years increased by 0.2% to 47.7%. The data suggest that housing demand is currently highest for seniors and young and middle-age adults. If the aging trend continues, there may be a growing demand for senior housing and programs that promote “aging in place”; however, this trend is likely to occur slowly, and the demand for such products will need to be evaluated over time. The Palm Desert Housing Authority operates 7 affordable apartment complexes that are restricted to seniors, the newest of which is the 72-unit Carlos Ortega Villas built in 2015 (see “Affordable Housing Developments” section). During the 2022-2029 planning period, particular focus will be on expanding housing opportunities for families and first-time buyers. Page 635 TN/City of Palm Desert General Plan/Housing Element Housing Element III-18 Table III-3 Age Distribution, 2010 and 2018 Age 2010 2018 Number % of Total Number % of Total Under 5 2,021 4.2% 2,032 3.9% 5-9 1,960 4.0% 2,044 3.9% 10-14 2,105 4.3% 2,256 4.3% 15-19 2,345 4.8% 2,331 4.5% 20-24 2,436 5.0% 2,727 5.2% 25-34 4,344 9.0% 5,430 10.4% 35-44 4,387 9.1% 4,847 9.3% 45-54 5,872 12.1% 5,605 10.8% 55-59 3,235 6.7% 3,384 6.5% 60-64 3,817 7.9% 3,886 7.5% 65-74 7,640 15.8% 8,976 17.2% 75-84 5,914 12.2% 5,940 11.4% 85+ 2,369 4.9% 2,666 5.1% Total 48,445 100.0% 52,124 100.0% Median age 53.0 52.6 Source: 2010 U.S. Census Tables P12 and P13; American Community Survey 2014-2018 5-Year Estimates, Table DP05 Race and Ethnicity Table III-4 describes the racial and ethnic distribution for Palm Desert in 2010 and 2018. Residents who categorize themselves as white comprise the largest race/ethnicity; this group remained constant at 82.5%. The second most prevalent race/ethnicity changed from “some other race” to Asian. The “some other race” category decreased from 9.1% to 5.0%. The Asian group increased from 3.4% to 5.1%, and the percentage of Black/African Americans increased from 1.8% to 2.5%. The share of American Indians and Alaska Natives, and Native Hawaiians and Other Pacific Islanders, remained largely constant, comprising approximately 0.6% combined during both years. The percentage of residents in the “Two or More Races” category increased from 2.5% to 4.4%. The percentage of Hispanic or Latino residents increased from 22.8% to 25.5%. Page 636 TN/City of Palm Desert General Plan/Housing Element Housing Element III-19 Table III-4 Racial and Ethnic Characteristics, 2010 and 2018 Race/Ethnicity 2010 2018 Number % of Total Number % of Total One Race: White 39,957 82.5% 42,993 82.5% Black or African American 875 1.8% 1,323 2.5% American Indian & Alaska Native 249 0.5% 196 0.4% Asian 1,647 3.4% 2,651 5.1% Native Hawaiian/Other Pac. Islander 55 0.1% 91 0.2% Some Other Race 4,427 9.1% 2,593 5.0% Two or More Races 1,235 2.5% 2,277 4.4% Total 48,445 100% 52,124 100% Hispanic or Latino (of any race) 11,038 22.8% 13,299 25.5% Source: 2010 U.S. Census, Table P3; American Community Survey 2014-2018 5-Year Estimates, Table DP05 Households The City had a total of 23,117 households in 2010. The average household size was 2.09 persons per household based on the 2010 Census. Between 2010 and 2018, the number of households increased 4.3% to 24,114, and the average household size in 2018 was 2.15 persons according to the ACS. In 2018, 44.9% of households consisted of married couple families, followed by non- family households (43.3%), female householder families (7.6%), and male householder families (4.3%). Table III-5 Household Growth Trends Year Number of Households Numerical Change Percent Change 2010 23,117 --- --- 2018 24,114 997 4.3% Source: 2010 U.S. Census, Table P28; American Community Survey 2014-2018 5- Year Estimates, Table DP02 Table III-6 Household Types Household Type No. of HH % of Total Family households: 13,679 56.7% Married couple family 10,821 44.9% Male householder, no wife present 1,030 4.3% Female householder, no husband present 1,828 7.6% Non-family households 10,435 43.3% Total Households 24,114 100% Source: American Community Survey 2014-2018 5-Year Estimates, Table DP02 Page 637 TN/City of Palm Desert General Plan/Housing Element Housing Element III-20 Income Income can vary significantly by region, industry, and type of job. Table III-7 describes average income per worker by industry in the Coachella Valley. As shown, the highest-paying sectors are Finance/Insurance/Real Estate, Government, and Information, with incomes averaging around $50,000 to $60,000. The lowest-paying sectors include Retail Trade, Other Services, and Leisure and Hospitality, with incomes averaging around $31,000. Table III-7 Average Income by Industry, Coachella Valley Industry Average Income per Worker, 2017 Agriculture $29,571 Construction $45,488 Manufacturing $46,340 Retail Trade $32,281 Information $50,493 Finance, Insurance, Real Estate $59,726 Professional and Business Services $43,736 Education and Health Services $48,322 Leisure and Hospitality $31,513 Government $58,711 Other Services $31,836 Logistics $45,114 Source: 2019 Greater Palm Springs Economic Report, Coachella Valley Economic Partnership, Figure 29 Median household income in the City in 2000 was $48,316; it rose to $50,267 by 2010. In 2018, median household income had risen to $57,578, less than the County median income, which stood at $66,964. The following table identifies the number of Palm Desert households in each income range. Page 638 TN/City of Palm Desert General Plan/Housing Element Housing Element III-21 Table III-8 City Household Income Distribution, 2018 Income No. of HH % of Total Less than $10,000 1,787 7.4% $10,000-$14,999 1,187 4.9% $15,000-$24,999 2,252 9.3% $25,000-$34,999 2,477 10.3% $35,000-$49,999 3,004 12.5% $50,000-$74,999 4,341 18.0% $75,000-$99,999 2,547 10.6% $100,000-$149,999 2,809 11.6% $150,000-$199,999 1,721 7.1% $200,000 + 1,989 8.2% Total 24,005 100%* Source: American Community Survey 2014-2018 5-Year Estimates, Table DP03. *Differences due to rounding. The ACS estimated that 9.3% of all families in Palm Desert were living below the poverty level in 2018. Employment and Major Employers Like much of the Coachella Valley, a substantial portion of the City’s economy is rooted in the regional tourism and service industries. The following table describes employment distribution in Palm Desert in 2018. The ACS data show that, of a total civilian workforce of 21,933 residents over 16 years, the largest employment sectors were “arts, entertainment, recreation, accommodation & food services” (20.1%) and “educational services, health care & social assistance” (18.8%). Page 639 TN/City of Palm Desert General Plan/Housing Element Housing Element III-22 Table III-9 City Employment by Industry, 2018 Industry No. of Employees % of Total Agriculture/Forestry/Fishing/Hunting/Mining 147 0.7% Construction 1,473 6.7% Manufacturing 789 3.6% Wholesale Trade 492 2.2% Retail Trade 3,066 14.0% Transportation, warehousing & utilities 585 2.7% Information 438 2.0% Finance, insurance, real estate, rental & leasing 1,616 7.4% Professional, scientific, management, admin. & waste management 2,702 12.3% Educational services, health care & social assistance 4,133 18.8% Arts, entertainment, recreation, accommodation & food services 4,404 20.1% Other services (except public administration) 1,482 6.8% Public Administration 606 2.8% Total Employment by Industry (Civilian 16 years and over) 21,933 100% Source: American Community Survey 2014-2018 5-Year Estimates, Table S2405 As shown in Table III-10, more than one-third (36.1%) of the City’s civilian employed labor force is in “management, business, science, and arts” occupations, followed by “sales and office” occupations (27.6%) and “service” occupations (24.6%). Table III-10 City Employment by Occupation, 2018 Occupation No. of Employees % of Total Management, business, science, and arts occupations 7,926 36.1% Service occupations 5,404 24.6% Sales and office occupations 6,048 27.6% Natural resources, construction, and maintenance occupations 1,316 6.0% Production, transportation, and material moving occupations 1,239 5.6% Total civilian employed population 16 years and over 21,933 100%* Source: American Community Survey 2014-2018 5-Year Estimates, Table DP03 *Differences due to rounding. As shown in Table III-11, the City’s principal employers include security services providers, golf clubs and resorts, and big chain retailers. Typical jobs at these facilities include store clerks and managers, salesmen, security guards, and hospitality and food service providers. Page 640 TN/City of Palm Desert General Plan/Housing Element Housing Element III-23 Table III-11 Principal Employers in Palm Desert, 2019 Employer No. of Employees % of Total City Employment JW Marriot-Desert Springs Resort & DS Villas 2,304 9.8% Universal Protection Services 1,500 6.4% Securitas-Security Service USA 700 3.0% Organization of Legal Pro's 501 2.1% Sunshine Landscape 500 2.1% Costco Wholesale 250 1.1% Bighorn Golf Club 250 1.1% Whole Foods Market 150 0.6% Target 145 0.6% Tommy Bahama 125 0.5% Total 6,425 27%* Source: 2019 Comprehensive Annual Financial Report, City of Palm Desert. *Differences due to rounding. The Great Recession, with onset in late 2007, saw high unemployment and job losses in the Coachella Valley. At the trough, about every seventh person lost their job.1 Regional employment started to increase in 2011, but annual growth was still slower than pre-Recession levels until 2017, suggesting more severe impacts than western Riverside County, the state, and the nation. The construction sector was hit hardest regionally, with approximately 70% of jobs lost and only 14% recovered by December 2017.2 The Retail Trade and Wholesale Trade sector lost around 6,700 jobs but has generally returned to pre-Recession levels. Two sectors have fully recovered and even added jobs: Education and Health Services and, to a lesser extent, Leisure and Hospitality. Between 2010 and 2019, annual unemployment rates in Palm Desert declined from a high of 10.1% in 2010 to a low of 4.2% in 2019.3 However, analysis of employment data from 2005 to 2017 shows that, as of December 2017, Palm Desert had not recovered the job losses it incurred during the Great Recession. The City lost about 20% of jobs, relative to peak employment, and had recovered only about 1.8%.4 This scenario is similar for seven other Coachella Valley cities; only Palm Springs and Rancho Mirage had recovered and exceeded their previous peaks. Table III-12 describes the employment locations of Palm Desert residents. As shown, 39.6% of City residents work in the City, which shows a relatively large portion of residents are employed within City limits. The remaining work locations are spread out in other Valley cities, the top two being Rancho Mirage (16.4%) and Palm Springs (12.6%). An estimated 11,824 residents of other cities work in Palm Desert, which is the highest number of employment inflows of all cities in the Coachella Valley. The City’s retail and service sectors, in particular, attract and can support younger workers in entry level positions. 1 2019 Greater Palm Springs Economic Report, Coachella Valley Economic Partnership, Figure 24. 2 Ibid, Figures 25 and 26. 3 California Employment Development Department annual average unemployment rates (labor force), not seasonally adjusted, not preliminary. 4 2019 Greater Palm Springs Economic Report, Coachella Valley Economic Partnership, Figure 28. Page 641 TN/City of Palm Desert General Plan/Housing Element Housing Element III-24 Table III-12 Commuting Patterns Where Palm Desert Residents Work No. of Palm Desert Residents % of Total Indio 737 7.8% Cathedral City 436 4.6% Palm Desert 3,749 39.6% Palm Springs 1,193 12.6% Coachella 238 2.5% La Quinta 892 9.4% Desert Hot Springs 93 1.0% Rancho Mirage 1,555 16.4% Indian Wells 572 6.0% Total: 9,465 100.0% Inflow of Workers from Other Cities to Palm Desert: 11,824 ---- Source: 2019 Greater Palm Springs Economic Report, Coachella Valley Economic Partnership, Table 6. Based on 2015 data. EXISTING HOUSING STOCK Housing Units The City’s housing stock includes an estimated 39,800 dwelling units, the majority of which (39.6%) are single-family detached units. Other housing types include single-family attached units (18.8%), multi-family complexes with 2-4 units (14.2%) and 5 or more units (19.5%), mobile homes (7.8%), and boat/RV/van/etc. (0.1%). The total number of units increased by 2,932 (8.0%) between 2010 and 2018. Specifically, the number of single-family detached units increased by 1,183, single-family attached units decreased by 3,274, multi-family 2-4 units increased by 2,722 and 5+ units increased by 2,847, mobile homes decreased by 547, and boat/RV/van/etc. increased by one (1). Table III-13 City Housing Characteristics Units in Structure 2010 2018 No. of Units % of Total No. of Units % of Total Single Family, detached 14,584 39.6% 15,767 39.6% Single Family, attached 10,761 29.2% 7,487 18.8% 2-4 Units, Multi-family 2,927 7.9% 5,649 14.2% 5+ Units, Multi-family 4,912 13.3% 7,759 19.5% Mobile homes 3,650 9.9% 3,103 7.8% Boat, RV, van, etc. 34 0.1% 35 0.1% Total 36,868 100.0% 39,800 100% Source: 2010 U.S. Census and American Community Survey 2014-2018 5-Year Estimates, Table DP04 Page 642 TN/City of Palm Desert General Plan/Housing Element Housing Element III-25 Residential Building Permit Activity The following table describes residential building permit activity during the 2014-2021 planning period. Permits were issued for a total of 1,447 units. Single-family units accounted for 43% of all permits and had an average value of $513,498 per unit. Multi-family 2-4 units accounted for 13% and had an average value of $279,940 per unit. Multi-family 5+ units accounted for 44% and had an average value of $208,200 per unit. Table III-14 Residential Building Permits, 2014-2020 Year Single-Family Multi-Family 2-4 Units Multi-Family 5+ Units No. of Units Average Value/Unit No. of Units Average Value/Unit No. of Units Average Value/Unit 2014 200 $443,069 11 $197,473 961 $95,429 2015 95 $471,452 14 $233,533 27 $277,778 2016 75 $596,227 14 $213,890 2072 $159,783 2017 72 $476,216 52 $207,230 10 $320,000 2018 57 $443,851 66 $219,697 0 --- 2019 74 $542,709 24 $137,755 304 $188,011 2020 47 $620,963 2 $750,000 0 --- Total: 620 $513,498 183 $279,940 644 $208,200 1 Includes 72 units at Carlos Ortega Villas 2 Includes 175 assisted living units In addition to the permits listed above, 162 permits were issued for Accessory Dwelling Units (ADUs) between 2014 and 2020 (see “General Plan and Zoning Ordinance Constraints” for more information about ADUs). Age and Condition of Housing Stock The age of the City’s housing stock can be a key indicator of potential rehabilitation, repair, or demolition needs. The ACS estimated a total of 39,800 housing units in Palm Desert in 2018. Of these, 25,312 (63.6%) were built before 1990 and are, therefore, more than 30 years old, while 6,348 (15.9%) were less than 20 years old. Depending on construction quality and maintenance history, older homes may have issues including inadequate or unsafe mechanical systems and appliances, foundation or roof problems, inefficient windows, the presence of asbestos or lead, and lack of fire and earthquake safety features. However, older homes in the City are sought after, particularly those built during the mid-century period, and are more likely to be conserved than demolished. In addition, programs provided by multiple organizations, including CVAG’s Green for Life program, have allowed low-interest improvement loans for solar, insulation, lighting upgrades and other improvements that improve a home’s energy efficiency, thereby extending its useful life. Page 643 TN/City of Palm Desert General Plan/Housing Element Housing Element III-26 During the previous planning period, the City referred an average of 7 residents per year to the SCE’s approved HVAC vendor for replacements of these systems for very low and low income households. HVAC units are critical to residents’ safety during Palm Desert’s hot summers. In addition, the case records of the Code Compliance division were reviewed for the 2014-2021 planning period. During that time, the City had no cases opened regarding major rehabilitation needs, and no citations issued for health and safety violations. The Home Improvement Program (HIP) assists very low, low and moderate income households with home repairs, including emergency repairs, depending on funding availability. The City will establish a program for the 2022-2029 planning period to explore the possibility of establishing a rehabilitation program and funding options (see Program 2.A). Table III-15 Age of Housing Units Year Built No. of Units % of Total 2014 or later 457 1.1% 2010-2013 755 1.9% 2000-2009 5,136 12.9% 1990-1999 8,140 20.5% 1980-1989 12,658 31.8% 1970-1979 8,121 20.4% 1960-1969 3,114 7.8% 1950-1959 1,137 2.9% 1940-1949 157 0.4% 1939 or earlier 125 0.3% Total 39,800 100% Source: American Community Survey 2014-2018 5-Year Estimates, Table DP04 Another measure of potentially substandard housing is the number of housing units lacking adequate kitchen and plumbing facilities. In Palm Desert, there are 198 units (0.8% of all units) lacking complete kitchens and 67 units (0.3% of all units) lacking plumbing facilities. More rental units have deficiencies than homeowner units. These homes could potentially benefit from repair and rehabilitation programs, such as the HIP program described above. As shown in Table III-46, Quantified Objectives, the City will use the HIP program to correct these deficiencies for the 67 units affected (see Program 2.A). Page 644 TN/City of Palm Desert General Plan/Housing Element Housing Element III-27 Table III-16 Housing Units Lacking Facilities Tenure Lacking complete kitchen facilities Lacking plumbing facilities Total Units in City No. of Units % of Total No. of Units % of Total Owner-Occupied Units 18 0.1% 10 0.1% 14,842 Renter-Occupied Units 180 1.9% 57 0.6% 9,272 Total 198 0.8% 67 0.3% 24,114 Source: 2014-2018 American Community Survey 5-Year Estimates, Tables B25053 and B25049 To further evaluate housing conditions in Palm Desert, the Code Compliance Division queried its records for residential property code violations, such as structural deficiencies, general deterioration, dilapidation, and faulty plumbing or electrical systems. As of February 2021, there were only 5 active cases of dwelling units with building code violations, all of which were associated with unpermitted construction activity. None of the cases cited structural deficiencies in need of replacement or rehabilitation. The Palm Desert Housing Authority offers a Housing Improvement Program (HIP) to assist homeowners and apartment complex owners with emergency home maintenance and repair costs (see Existing Affordable Housing Programs, below). Vacancy Status and Housing Tenure The vacancy rate is a measure of the general availability of housing. It also indicates how well the types of units available meet the current housing market demand. A low vacancy rate suggests that fewer housing units are available for those needing housing and can result in corresponding higher housing demand and housing values/costs; a high vacancy rate may indicate either excess housing supply or decreased property values. The 2018 ACS showed a total of 15,686 of the City’s total 39,800 housing units to be vacant, for an overall vacancy rate of 39.4%. Correcting for seasonal, recreational or occasional use units, which are considered vacant by the ACS but are not available or used for permanent occupancy, the vacancy rate decreased to 8.1% in 2018. Of the 24,114 (60.6%) occupied housing units in the City, about 37.3% are owner-occupied, and 23.3% are renter-occupied. The homeowner vacancy rate is 6.0%, and the rental vacancy rate is 10.7%, which may indicate some excess supply in the rental market. Page 645 TN/City of Palm Desert General Plan/Housing Element Housing Element III-28 Table III-17 Vacancy Status – 2018 Unit Type No. of Units % of All Units Occupied Units: Owner-occupied 14,842 37.3% Renter-occupied 9,272 23.3% Total Occupied Units: 24,114 60.6% Vacant Units: For rent 1,123 2.8% Rented, not occupied 85 0.2% For sale only 959 2.4% Sold, not occupied 143 0.4% For seasonal, recreational, or occasional Use 12,443 31.3% For migrant workers 0 0.0% Other vacant 933 2.3% Total Vacant Units: 15,686 39.4% Total Units 39,800 100% Vacancy Rate: Homeowner vacancy rate - 6.0% Rental vacancy rate - 10.7% Source: American Community Survey 2014-2018 5-Year Estimates, Tables DP04 and B25004 Overcrowding The California Department of Housing and Community Development (HCD) establishes a standard of 1.01 persons per room as the criteria for defining “overcrowded” housing conditions. Overcrowding can indicate an imbalance between housing affordability and income and typically affects renters more than homeowners. Table III-18 shows that a total of 959 housing units in Palm Desert were overcrowded in 2018, representing 4.0% of the total occupied housing units in the City. Of all overcrowded units, 77.3% were renter-occupied units and 22.7% were owner- occupied units. Severely overcrowded units have more than 1.5 persons per room and are a subset of overcrowded units. They account for 1.7% of all occupied housing units in the City. About 43.5% of all overcrowded units in the City are severely overcrowded. Page 646 TN/City of Palm Desert General Plan/Housing Element Housing Element III-29 Table III-18 Overcrowding, 2018 Persons/Room Owner- Occupied Units Renter- Occupied Units Total % of Total 1.00 or less 14,624 8,531 23,155 96.0% 1.01 to 1.50 127 415 542 2.2% 1.51 to 2.00 48 186 234 1.0% 2.01 or more 43 140 183 0.8% Total Overcrowded 218 741 959 4.0% % Overcrowded by Tenure 22.7% 77.3% - - Total Severely Overcrowded 91 326 417 1.7%* % Severely Overcrowded by Tenure 21.8% 78.2% - - Source: American Community Survey 2014-2018 5-Year Estimates, Table B25014 *Difference due to rounding. As shown, the number of overcrowded units in Palm Desert is relatively low. Units with 3 or more bedrooms help accommodate larger households. Affordable housing developments with 3 or 4 bedrooms include ownership units at Desert Rose, Habitat for Humanity and CVHC units and Falcon Crest; and rental units at Hovley Gardens and the Enclave. Other affordable housing options that can alleviate overcrowding are ADUs, JADUs, and guest houses, all of which are permitted by the Zoning Code. The City has seen a steady number of ADUs in the last planning period (see Table III-14, Residential Building Permits), and a program to track their progress in included to determine whether they will become an effective means of accommodating lower income household need. No ADU sites are included in the City’s Land Inventory for purposes of meeting the RHNA allocation for the 2022-2029 planning period. Housing Values The following table compares median housing values in Coachella Valley cities from 2013 to 2018. Palm Desert’s median housing value was $308,000 in 2013, which was lower than Rancho Mirage, Indian Wells, and La Quinta, but higher than the other cities. Its median value increased nearly 9% over the 5-year period, which was the lowest percent increase in the region (other than the decrease of Rancho Mirage median value). Its median housing value currently ranks in the middle of Coachella Valley cities. Page 647 TN/City of Palm Desert General Plan/Housing Element Housing Element III-30 Table III-19 Regional Median Housing Value Trends, 2013 - 2018 Jurisdiction Median Value, owner-occupied units % Change 2013-2018 2013 2018 Desert Hot Springs $121,600 $174,900 43.8% Palm Springs $267,800 $367,900 37.4% Cathedral City $179,500 $259,900 44.8% Rancho Mirage $518,000 $499,900 -3.5% Palm Desert $308,000 $335,400 9.0% Indian Wells $604,600 $706,800 16.9% La Quinta $348,400 $386,200 10.8% Indio $192,600 $267,900 39.1% Coachella $137,600 $207,300 50.7% Source: American Community Survey 2009-2013 and 2014-2018 5-Year Estimates, Table B25077 The number of owner-occupied housing units, by value range, are listed in Table III-20. Most units (35.3%) are within the $300,000 to $499,999 range. Table III-20 Values, Specified Owner-Occupied Housing Units, 2018 Value Number Less than $50,000 704 $50,000 to 99,999 444 $100,000 to 149,999 509 $150,000 to 199,999 994 $200,000 to 299,999 3,687 $300,000 to 499,999 5,241 $500,000 to 999,999 2,651 $1,000,000 or more 612 Source: American Community Survey 2014-2018 5- Year Estimates, Table DP04 The median housing unit value in 2018 was estimated at $335,400. For renters, the median contract rent in 2018 was $1,260. Current housing values and rental rates are further discussed below in the section titled “Economic Constraints.” Page 648 TN/City of Palm Desert General Plan/Housing Element Housing Element III-31 EXISTING AFFORDABLE HOUSING PROGRAMS There are a number of local, regional, state, and federal programs available in Palm Desert which provide a variety of housing services to the City’s residents. This section of the Housing Element provides a summary of programs available by a number of agencies. City Programs The Palm Desert Housing Division oversees the City’s affordable housing programs and the Palm Desert Housing Authority (PDHA). The PDHA owns affordable housing communities and provides rental and ownership assistance to City residents. Owners’ Assistance Program Owners of single-family homes, condominiums, mobile homes or apartments who rent to very low, low, and moderate income tenants to the extent funding is available, may receive direct rental payment assistance from the City. The owner must, in exchange for the assistance, enter into a recorded agreement with the City assuring affordability of the rental units for 55 years. Acquisition, Rehabilitation and Resale This program allows the City to purchase existing market rate single family units, rehabilitate and refurbish them, and re-sell them to lower income households with affordability covenants. Funding in past cycles has been through the former RDA that made 2 units available in 2000 and 2001, as well as the City’s Neighborhood Stabilization Program, where two units were acquired and rehabilitated in 2013. Since that time, lack of funding has prevented additional rehabilitation. The City will continue to explore funding options. Mortgage Credit Certificate Program The City has committed to participating in the Mortgage Credit Certificate Program, which is operated by Riverside County Economic Development Agency. The MCC Program allows qualified home buyers to reduce the amount of their federal income tax liability by an amount equal to a portion of the interest paid during the year on a home mortgage. The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence. No certificate were issued for homes purchased during the 2014-2021 planning cycle. Source funds for this program come from the CDLAC agency, which established standards for this program and other provisions. Homebuyers Assistance Program The City and Palm Desert Housing Authority have provided assistance to very low, low, and moderate income persons in the form of low interest loans to be applied to down payment, non- recurring closing costs, reduction of the interest rate on the first trust deed, or any other cost associated with the purchase of a single-family home. There are currently 301 homes in this program. In exchange for the assistance, the home owner is required to enter into a recorded agreement with the City assuring affordability of the home for up to 45 years. Page 649 TN/City of Palm Desert General Plan/Housing Element Housing Element III-32 Self-Help Housing The City assists very low, low and moderate income households in constructing and purchasing their own homes on existing lots within the City. In May 2020, the City awarded a DDA for 14 vacant lots to the Coachella Valley Housing Coalition for future development of single-family self-help homes along Merle Drive. It is expected that these self-help units will be for three very low income and eleven low income households, and that they will be built during the 2022-2029 planning cycle. Home Improvement Program The City assists very low, low and moderate income households with home repairs by providing grants and low interest loans to program participants from Community Development Block Grant (CBDG) funds. The program has eight (8) components, but only the Emergency Grant Component is currently funded. • The Emergency Grant Component allows up to $7,500 for very low and $5,000 for low income households for emergency health and safety repairs to their homes, such as roof repairs, water heater replacement, ADA improvements, etc.). Four (4) households received Emergency grants during the 2014-2021 planning period. • The Rehabilitation Grant Component will grant up to $20,000 for home improvements to very low income households. • The Matching Fund Grant Component will match up to $5,000 in home improvements with a homeowner who contributes the same amount or more to the improvements. This grant is available to very low and low income households. • The Rehabilitation Loan Component allows up to $35,000 for active loans and $45,000 for a deferred loan for home improvements to low and moderate income households, respectively. • The Drought Tolerant Landscape Retrofit Loan Component allows up to $7,500 in improvements that intend to reduce the consumption of a natural resource for very low, low and moderate income households. • The Make a Difference Volunteer Assistance Component organizes community involvement through volunteers for very low, low and moderate income households. • The Acquisition, Rehabilitation, Resale Component allows the City to acquire properties available on the market for the purpose of rehabilitation and resale to a qualified household. • The Lead and Asbestos Abatement Component will grant $7,500 to remove lead and asbestos from the homes of very low and low income households. Fair Housing The California Fair Employment and Housing Act generally prohibits housing discrimination with respect to race, color, religion, sex, gender, gender identity, gender expression, marital status, national origin, ancestry, familial status, source of income, disability, genetic information, or veteran or military status. AB 686 requires the City to certify that it will affirmatively further fair housing by taking meaningful actions to overcome patterns of segregation and foster inclusive communities. Page 650 TN/City of Palm Desert General Plan/Housing Element Housing Element III-33 The City prepared an Assessment of Fair Housing (AFH) in 2017 is association with its receipt of federal Community Development Block Grant (CDBG) funds. The AFH was based on data analysis, community participation, and input from public health, social service, and housing organizations. The AFH included analysis to identify trends and patterns over time and also compare the City to the regional level (including Riverside and San Bernardino Counties). Findings included the following: • There are no Racially or Ethnically Concentrated Areas of Poverty (R/ECAPs) in Palm Desert. No R/ECAPs were located in Palm Desert since 1990. In the Region, R/ECAPs are located within the cities of Victorville, San Bernardino, Riverside, Moreno Valley and Indio as well as the unincorporated areas of the Counties of Riverside and San Bernardino. • The City has a low segregation level for each racial/ethnic group, compared to a moderate level of segregation for the bi-county region. While there was an increase in the City’s segregation level since 1990, it has remained in the low level category and the City became more balanced between 2000 and 2010. • Hispanics represent the largest minority population group residing in Palm Desert, though at a lower percentage compared to the region. The City has two majority minority neighborhoods: census tracts 451.08 (56.8%) and 451.18 (56.4%). Almost one-half of the population in census tract 451.08 is Hispanic, and census tract 451.18 is majority Hispanic. • Special populations including female householders, people with limited English-speaking proficiency, residents with disabilities, and families with children are not segregated in particular neighborhoods. • Although substandard housing and overcrowding do not adversely impact a large number of households in Palm Desert, cost burden and severe cost are serious problems. The most significant cost burden disparity is between Black households (33.33%) and all other households. • The City is in a generally similar but slightly better situation compared to the region on housing problems. For example, a much lower percentage (9.18%) of the City’s family households with fewer than five persons experience severe housing cost burden compared to the Region’s (18.78%), and no Native American households in the City had severe housing cost burdens while 19.53% of the Region’s households did. • A comparison to cost burden and severe cost burden based on 2010-2014 data in the AFH to 2013-2017 data (Table III-43) shows that the percentage of cost burdened households dropped significantly for both renters and owners. • Two population groups have an ownership rate of more than 50%: White/Non-Hispanics at 72%, and Asian/Non-Hispanics at 61%. Only about one-third of Hispanics and Other households are home owners. • Between Fiscal Years 2007/08 and 2015/16, a total of 152 housing discrimination complaints were filed by Palm Desert residents at the Fair Housing Council of Riverside County (FHCRC). The majority (59.9%) were on the basis of disability, followed by 14.5% on the basis of race and 6.6% on the basis of familial status (other categories each represented 5.3% or less of the total). • The analysis of access to opportunity involved education, employment, transportation, poverty and environmental health, and found no significant disparities in terms of race/ethnicity or between different neighborhoods/census tracts. Affordable housing is located in seven census tracts/neighborhoods and is not concentrated geographically. Thus, the residents of affordable housing share the same access to opportunity as the occupants Page 651 TN/City of Palm Desert General Plan/Housing Element Housing Element III-34 of market rate housing. The Citywide trend of access to opportunity is considered stable or even improved over time, based on the fixed service providers and growth in the City and Coachella Valley area. • In general, the City residents enjoy better access to opportunity compared to the regional level, including more proficient schools, a low poverty rate, higher proximity to jobs, higher labor force participation, better transit access and lower transportation costs, and better environmental health. • Evidence provided by the HUD tables and maps reveal there are no disparities in access to environmentally healthy neighborhoods. When compared with the Region, the City residents scored much higher. The City ranged from 53.59 for Whites to 62.28 for Asians. This is a much narrower range than the Region and demonstrates there are no significant differences in labor market access experienced by the different racial and ethnic populations living in Palm Desert. Based on its analysis and findings, the 2017 AFH identified five goals to further housing equity in Palm Desert: 1) preservation of affordability of housing units that could convert to market rate housing, 2) increasing the number of affordable units for families with children and people with disabilities, 3) increasing awareness among residents of housing discrimination and how to file complaints with the Fair Housing Council of Riverside County (FHCRC), 4) evaluating available housing sites in terms of how they meet the siting selection policies of affordable housing funding programs, and 5) increasing the supply of housing for households with disabilities or other special needs. These and other goals pertaining to housing equity are incorporated into the Goals, Policies, and Programs section. Affordable housing units are geographically distributed throughout the community to avoid clustering of economic, racial, and other populations. The City continues to coordinate with and refer interested and concerned parties to the FHCRC, whose responsibilities are described further below. County, State, and Federal Programs There are numerous programs available to provide rental assistance and to encourage the construction of new affordable housing. The following programs are available in the City of Palm Desert: Housing Choice Voucher (Section 8) Assistance The Riverside County Housing Authority administers the Housing Choice Voucher (HUD Section 8) rental assistance program to lower income renters within the City. During the 2014-2021 planning period, an average of 41 households per year that lived in Palm Desert Housing Authority properties received Section 8 housing assistance. Fair Housing Council of Riverside County The City works with the Fair Housing Council of Riverside County (FHCRC) to provide anti- discrimination services, landlord-tenant mediation, fair housing training and technical assistance, enforcement of housing rights, administrative hearings, home buyer workshops, lead-based paint programs, and other housing related services for City residents. Page 652 TN/City of Palm Desert General Plan/Housing Element Housing Element III-35 CalHFA First Mortgage Loan Programs The California Housing Finance Agency (CalHFA) offers a variety of loan programs for low and moderate income first-time homebuyers who secure a CalHFA 30-year fixed mortgage. CalFHA Downpayment Assistance Program Moderate income households may receive a deferred loan of up to the lesser of 3.5% of the purchase price or appraised value of a home, to be applied to the down payment and/or the closing costs for the residence, with a cap of $10,000. HomeChoice Program This State program provides disabled low and moderate income households with a low-interest 30-year mortgage for a first-time homebuyer. California Low-Income Housing Tax Credit Program This competitive State program provides tax credits to private sector developers who provide affordable rental units within their projects. The units can consist of all or part of a project and must meet certain specified criteria. Units must be restricted for a period of at least 55 years. ASSESSMENT OF FAIR HOUSING AB 686 requires that all housing elements due on or after January 1, 2021, must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule of July 16, 2015. Under state law, AFFH means “taking meaningful actions, in addition to combatting discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” The City has completed the following: • Include a Program that Affirmatively Furthers Fair Housing and Promotes Housing Opportunities throughout the Community for Protected Classes (applies to housing elements beginning January 1, 2019). • Conduct an Assessment of Fair Housing, which includes a summary of fair housing issues, an analysis of available federal, state, and local data and local knowledge to identify fair housing issues, and an assessment of the contributing factors for the fair housing issues. • Prepare the Housing Element Land Inventory and Identification of Sites through the lens of Affirmatively Furthering Fair Housing. To comply with AB 686, the City has completed the following outreach and analysis. Page 653 TN/City of Palm Desert General Plan/Housing Element Housing Element III-36 Outreach As discussed in the Public Participation section of this Housing Element, the City held three community workshops during the Housing Element Update process (see Appendix A for outreach materials). The City made concerted efforts to reach all segments of the population for input into the Housing Element update. The first workshop was held with the Palm Desert Housing Authority Housing Commission on January 6, 2021. The Commissioners indicated that senior units were needed at affordable rents, and that the upcoming planning period seemed to be well planned for, given the projects that were moving forward. On January 21, 2021, a second workshop was held after inviting a mix of affordable housing developers, public agencies, interested parties and individuals via email. The City also sent formal invitations to 21 organizations, including Habitat for Humanity, Community Housing Opportunities Corp., Lift to Rise, and the Coachella Valley Housing Coalition, and advertised on the City’s website and in the Desert Sun newspaper. The City provided accommodation for persons requiring hearing or visual assistance for the virtual workshop, although none was requested from participants. Seventeen (17) people attended and actively contributed with opinions and suggestions. Participants expressed strong support for the City’s density increase to 40 units per acre. Affordable housing developers, including CVHC and CHOC, indicated a strong desire to work with the City on projects, and clearly expressed their concerns regarding the funding of projects, which require too many funding sources in recent years. The City concurs with developers’ concerns about funding sources, and has included programs for projects in this Element where the City will leverage its land to help with private developers’ funding applications. However, the Legislature’s removal of housing set aside for affordable housing limits the City’s participation in projects during the planning period, and the City has shifted its focus in programs to work with private parties to construct the required units. The City also held two City Council study sessions on March 25 and September 9, 2021. The City Council listened to a staff-led presentation, and asked questions about various projects and sites on the City’s inventory. The focus of development in the University Park area for student and faculty housing for the future expansion of the universities in this area was considered a top priority. Assessment of Fair Housing California Government Code Section 65583 (10)(A)(ii) requires the City of Palm Desert to analyze areas of segregation, racially or ethnically concentrated areas of poverty, disparities in access to opportunity, and disproportionate housing needs, including displacement risk. The 2021 California Department of Housing and Community Development (HCD) and the California Tax Credit Allocation Committee (TCAC) Opportunity Areas are rated by a composite score of resource levels in the following aspects: access to effective educational opportunities for both children and adults, low concentration of poverty, low levels of environmental pollutants, and high levels of employment and close proximity to jobs, among others. High and highest resource areas are those with high index scores for a variety of educational, environmental, and economic indicators. These indicators include access to effective educational opportunities for both children and adults, low levels of environmental pollutants, high levels of employment and close proximity to jobs, and low concentration of poverty, among others. Page 654 TN/City of Palm Desert General Plan/Housing Element Housing Element III-37 According to Figure 1, TCAC Opportunity Areas, the majority of the City is considered “Highest Resource” and the area just north of Highway 111 and three blocks north of Country Club Drive are considered “High Resource.” TCAC and HCD did not designate any portion of the City of Palm Desert as a “Low Resource” area which typically have the most limited access to all resources. Areas of high segregation and poverty are those that have an overrepresentation of people of color compared to the County, and at least 30% of the population in these areas is below the federal poverty line ($26,500 annually for a family of four in 2021). There is no “High Segregation and Poverty” area in or near the City of Palm Desert (Figure 1). The City prepared an Assessment of Fair Housing (AFH) in 2017 in association with its receipt of federal Community Development Block Grant (CDBG) funds. The AFH was based on data analysis, community participation, and input from public health, social service, and housing organizations. The AFH included analysis to identify trends and patterns over time and also compare the City to the regional level (including Riverside and San Bernardino Counties). The AFH identified no racially or ethnically concentrated areas of poverty (R/ECAPs) in Palm Desert since 1990. In the region, TCAC and HCD identified R/ECAPs in the cities of Cathedral City, Desert Hot Springs, Indio and Coachella as well as the unincorporated areas of Riverside County. The 2017 AFH also found R/ECAPs in the cities of Victorville, San Bernardino, Riverside, Moreno Valley as well as the unincorporated areas of San Bernardino County. Integration and Segregation Patterns To assess patterns of segregation and integration, the City analyzed four characteristics: race and ethnicity, disability, income, and familial status. Figure 1 Page 655 TN/City of Palm Desert General Plan/Housing Element Housing Element III-38 Race and Ethnicity The diversity index was used to compare the racial and ethnic diversity within the City and surrounding communities. Diversity Index scores range from 0 to 100, where higher scores indicate higher diversity among the measured groups. As shown in Figure 2, Diversity Index, there is a mosaic of diversity index scores in the City, with higher diversity in the middle and eastern portions of the City, and lower diversity in the northern and southern portions. The area immediately east of the City in the census designated place of Bermuda Dunes has a higher diversity index score than anywhere within City limits. According to the 2015–2019 American Community Survey, over half (66%) of Palm Desert residents identify as white, non- Hispanic, and 23.5% of the population are of Hispanic or Latino origin. In Bermuda Dunes, there is a slightly higher percentage (33.8%) of population that are of Hispanic or Latino origin, and a slightly lower percentage (58.5%) of white, non-Hispanic residents. In contrast, Thousand Palms, a census designated place immediately north of Palm Desert, has over half (51.3%) of its population of Hispanic or Latino origin and 46.7% white, non-Hispanic residents. While there are not any racially or ethnically concentrated areas of poverty in or near Palm Desert, there is potential for a diversity level gap to develop between the City and surrounding communities. Palm Desert sees a similar pattern of predominant population – white majority tracts – as the cities of Rancho Mirage and Indian Wells to the west and east of, respectively. The highest diversity index score in the surrounding communities is found in Bermuda Dunes (81.6), while areas with diversity index scores higher than 85 in the region are seen in the cities of Indio, Palm Springs, Desert Hot Springs, and Coachella as well as unincorporated Riverside County in the western and eastern Coachella Valley. Figure 2 Page 656 TN/City of Palm Desert General Plan/Housing Element Housing Element III-39 Desert Willow Golf Resort, located on the north side of the City, has a median income greater than $125,000 (Figure 3). The resort also falls in Census Tract 449.19, which is identified to have 84.8% of white, non-Hispanic or Latino population. While HCD has not released an adjusted methodology for Racially Concentrated Areas of Affluence (RCAA) for California as of August 2021, the national criteria defined RCAA as census tracts where 1) 80% or more of the population is white, and 2) the median household income is $125,000 or greater. Therefore, the Desert Willow Golf Resort may have the potential to qualify as an RCAA. According to the 2017 AFH, the City has a low segregation level for each racial/ethnic group, compared to a moderate level of segregation for the bi-county (Riverside and San Bernardino) region. While there was an increase in the City’s segregation level since 1990, it has remained in the low level category and the City became more balanced between 2000 and 2010. The City has established Programs 1.A through 1.C to plan and implement affordable housing developments in highest and high resource areas. These programs can further promote a racially and ethnically integrated community. Disability In 2014, the percentage of the population with a disability was highest (25.2%) in the three blocks north of Country Club Drive, which comprise of Palm Desert Greens Country Club, Desert Willow Golf Resort, Desert Falls Country Club and Avondale Country Club. Areas north and south of these country clubs had the lowest percentages of population with a disability (below 9%). According to the 2015–2019 ACS, the areas with low percentages of population with a disability (under 10%) have shifted/expanded to some extent, although two blocks in the northeastern City corner have an increased percentage (20.4%) since 2014 (13.3%), which comprise of Indian Ridge Country Club, Palm Desert Resort and Country Club, and Woodhaven Country Club. These Figure 3 Page 657 TN/City of Palm Desert General Plan/Housing Element Housing Element III-40 percentage and geographic distribution changes are limited, in that no tract has had higher than 30% population with a disability. The City has a no-fee application process for reasonable accommodation, and assisted more than double the disabled residents between 2014 and 2020 (from 91 to 188 residents) in Housing Authority owned properties. The City does not impose any restrictions or barriers to the organic changes/movements in the community and will continue to approve and assist housing developments for disabled residents (Program 5.B). Income The City also assessed the concentrations of households below the poverty line across the City to analyze access to adequate housing and jobs. As shown in Figures 3 and 4, there is a higher percentage of residents who fall below the poverty line ($26,500 for a family of four in 2021) in the central portions of the City, than to the south and north. Generally, the central City has seen an increase in percentage of residents below the poverty line from 2014 to 2019. Certain areas south of Highway 111 and Chaparral Country Club along the western City boundary have seen lower percentages of residents below the poverty line from 2014 to 2019. As shown in Table III-17, Vacancy Status – 2018, the City of Palm Desert has a vacancy rate of 10.7% for rental units and 6% for ownership units, which may indicate some excess supply in the rental market. Familial Status The City of Palm Desert has areas with higher percentages (40%-60%) of children in single female- headed households along the western and eastern City boundaries. Most of these areas have median income below the HCD 2020 State Median Income ($87,100), and along the western City boundary also overlap with a higher percentage (21.8%) of population below poverty level compared to other areas in the City. The City has higher concentrations (60%-80%) of households with children in the southern and eastern portions of the City, similar to the Figure 4 Page 658 TN/City of Palm Desert General Plan/Housing Element Housing Element III-41 geographical extent in the City of Rancho Mirage on the west but fewer than the cities of Indian Wells and La Quinta on the east. One such area near the southeastern City boundary has median income below the 2020 State Median Income. The City has a majority of two- to three-bedroom units (75.2%) according to the 2015-2019 ACS, which should be able to serve the needs of single- parent and family households with children. Assessment and Actions Given the factors considered above, there is no evidence of segregation based on disability in the City, but there may be segregation based on income and potentially familial status (single female- headed households with children) and opportunity to improve integration within Palm Desert and also across surrounding communities. As shown in Figures 3 and 4, Palm Desert has a relatively low concentration of lower income households in the Coachella Valley. The cities of Cathedral City, Palm Springs and Desert Hot Springs to the west, the cities of Indio and Coachella as well as unincorporated areas in both western and eastern valley have areas with higher rates of households living below the poverty line. While incomes in certain areas of the City are lower, the entire City is not considered disadvantaged economically because the median income is above 80% of the statewide average ($59,977 in Palm Desert; $75,235 in California, 2015-2019 ACS). While existing affordable housing units are located throughout the City including the lower income areas, there may be potential demand for more affordable housing, especially along the Highway 111 corridor. Expanded housing options at a diversity of price-points can help encourage a more economically diverse community. However, as shown in Figure 5, Jobs Proximity Index, the City is rated with the closest proximity to employment opportunities (>80 rating), except for small portions on the southern and eastern boundary (60-80 rating). Because all lower income areas are rated “High Resource” or “Highest Resource” (Figure 1 TCAC Opportunity Areas) and with close proximity to employment opportunities (>60 rating), this suggests that access to opportunities should not be the driving factor behind the concentration of lower income households, but likely the type of jobs and housing available. The City is aware that the COVID-19 pandemic can disproportionally impact potentially disadvantaged residents, households and small businesses. The City of Palm Desert ran an Emergency Rental Assistance Program to assist market-rate rental properties impacted by the pandemic. Qualified households must meet certain requirements, including having experienced a loss of income directly related to the pandemic and earning less than 80% of the area median income. The program provides financial assistance in the form of rental arrears to rental properties for delinquent payments for April 2020 and/or beyond. Eligible rental properties include multi- family homes (2 units or more), single-family homes (attached or detached) and accessory dwelling units. The City estimates serving up to 60 qualified households with assistance up to $5,000 per rental unit, and intends the program as an economic recovery tool for rental property owners and a safety net for low- and moderate-income households. Page 659 TN/City of Palm Desert General Plan/Housing Element Housing Element III-42 The City of Palm Desert in conjunction with Coachella Valley Economic Partnership and the California Governor's Office of Emergency Services offers no-cost Personal Protective Equipment (e.g. face masks, face shields and hand sanitizer) to Palm Desert businesses. This program helps alleviate overhead costs for small businesses and ensure compliance with state guidelines for the safety of all. Access to Opportunity The TCAC Opportunity Areas (2021) designated for Palm Desert were reviewed by City staff. For the Composite Score shown in Figure 1, the majority of the City is rated “Highest Resource”, and an area just north of Highway 111, along with five country clubs in the northern City are rated “High Resource”. The individual scores for the economic, education and environmental domains were reviewed to identify any disparities in access to opportunity. Most of the “High Resource” areas are rated with a lower economic domain score (0.25-0.50), which indicates relatively less positive economic outcome. It is unclear why the area north of Highway 111 scores lower in the economic domain, as it contains the Westfield Shopping Mall and College of the Desert, which hosts regular farmer’s markets and other activities. The majority of the City scores in the highest range for the education domain (>0.75), which indicates more positive education outcomes. The remaining areas score slightly lower (0.50- 0.75), which includes a primarily commercial area in the northwestern corner of Highway 111 corridor and the five country clubs that are rated “High Resource”, as well as a portion of Bighorn Golf Club and Ironwood Country Club on the southern City boundary. The entire City scores in the highest range for the environmental domain (0.75-1), which indicates more positive environmental outcomes. Figure 5 Page 660 TN/City of Palm Desert General Plan/Housing Element Housing Element III-43 There is no transportation score on the HCD data portal. However, all the “High Resource” areas score in the highest range of Jobs Proximity Index (>80), which indicates closest proximity (Figure 5). The area north of Highway 111 is well served with multiple bus routes (Routes 1, 1X, 4, 5, 6) provided by SunLine Transit Agency. The five country clubs north of Country Club Drive have access to transit service, with bus stops in the area served by SunLine Routes 4 & 5. SunLine also provides the SunDial paratransit service, which is available within ¾ of a mile on either side of a bus route for people who are functionally unable to use the fixed-route service either permanently or under certain conditions. The SunDial service covers the majority of the five country clubs and serves people with limited mobility. In summary, the City scores in mid-range and above for all individual and composite scores, except for the idiosyncrasy in economic domain score. There is no significant or obvious pattern of disparity in access to opportunity for City residents, including people with protected characteristics. This finding is consistent with the City’s 2017 AFH, which contains an analysis of access to opportunity involving education, employment, transportation, poverty and environmental health, and found no significant disparities in terms of race/ethnicity or between different neighborhoods/census tracts. The 2017 AFH also determined that Palm Desert residents generally enjoy better access to opportunity compared to the regional level, including more proficient schools, a low poverty rate, higher proximity to jobs, higher labor force participation, better transit access and lower transportation costs, and better environmental health. Currently, affordable housing in Palm Desert is located in seven of the 18 census tracts that occur in the City. While there may be small clusters of affordable housing developments, it is important to note that the City is comprised of many country clubs with defined boundaries, which leave limited options for new housing developments. The City and its Housing Authority have managed to disperse affordable units throughout the City so that overall, they are not concentrated geographically. The residents of affordable housing units share the same access to opportunity as the occupants of market rate housing units. Affordable housing projects include Housing Authority owned family and senior apartments, Housing Authority owned or assisted ownership projects, privately developed and assisted ownership projects, and privately developed rental properties. There are a variety of affordable housing units in the central Highway 111 corridor south of Fred Waring Drive, including family apartments for very low to moderate income tenants such as Neighbors Garden Apartments (24 two-bedroom units), Laguna Palms (48 studio, one-bedroom, and two-bedroom units), Palm Village Apartments (36 two-bedroom units), Santa Rosa Apartments (20 two-bedroom units), Taos Palms (16 two-bedroom units), Carel Trust (1 two- bedroom apartment), and Candlewood Apartments (30 one- and two-bedroom units). There are also senior apartments for very low to moderate income tenants, including The Pueblos (15 one- bedroom units), Catalina Gardens (72 studio and one-bedroom units), River Run One (2 studio apartments), Legend Gardens (assisted living facility with 10 one-bedroom units), and Atria Palm Desert (assisted living facility with 5 one-bedroom units). Residents enjoy walking access to the various retail, restaurants, grocery and personal services in the Highway 111 corridor and El Paseo commercial district. Within a half-mile distance, Abraham Lincoln Elementary School and Palm Desert Charter Middle School are located to the northeast, George Washington Charter School to the southeast, and Mirus Secondary School to the west. College of the Desert, the Palm Desert Branch Library, Civic Center Park and Palm Desert Aquatic Center are also located conveniently to the northwest within walking distance. Page 661 TN/City of Palm Desert General Plan/Housing Element Housing Element III-44 Additional affordable family apartments for very low to moderate income ranges are located west of the College of the Desert near the Highway 111 corridor, including One Quail Place (384 one- and two-bedroom units) and Desert Pointe (64 studio, one-bedroom, and two-bedroom units). The Portola Palms Mobile Home Park is located nearby, in between City parks and public schools, and includes 23 mobile homes for very low and low income ranges. In the central part of City, there are several affordable family housing projects for very low to moderate income households: Hovley Gardens Apartments (162 two- to four-bedroom rental units), Falcon Crest (93 three and four-bedroom single-family homes), and La Rocca Villas (27 one-bedroom apartments). There are also 11 self-help homes restricted to lower income households. This area includes James Earl Carter Elementary School, the City of Palm Desert Hovley Soccer Park, medical offices, restaurants, and a range of service commercial stores. The Palm Desert High School is located within a mile to the south. SunLine Bus Route 5 serves the area with stops nearby on Cook Street. To the east of Palm Desert High School is Desert Rose, a single-family project with 161 three and four-bedroom units restricted to purchasers in the very low, low, and moderate-income categories. Facilities within the project include community recreation and daycare. Desert Rose residents have relatively close access to amenities and services in the Highway 111 corridor to the south. On the east side of the City, California Villas, located in the Palm Desert Country Club community, provides 141 one-bedroom units to very low to moderate income households. In the same neighborhood there is Villas on the Green, which consists of 76 studio, one, and two-bedroom units for persons over 55 years of age. Another senior housing project, Carlos Ortega Villas (72 one- and two-bedroom units) is located further east immediately south of a neighborhood commercial plaza. Both of these senior apartments are available for the very low to moderate income categories. Joe Mann Park is located just west of Carlos Ortega Villas, and Gerald R. Ford Elementary School is within walking distance to the south of California Villas. SunLine Bus Routes 6 & 7 serve the area with stops on Fred Waring Drive and Washington Street. Several other affordable housing projects are scattered on the north side of the City, including a senior apartment, Las Serenas Apartments (150 one- and two-bedroom units), and two family properties, The Vineyards (52 one and two-bedroom reserved units) and The Enclave (64 one, two, and three bedroom units). All three projects are available to very low, low and moderate income categories. Depending on location, these projects may not have access to bus service in the immediate area, but are within a one-mile radius of neighborhood-serving commercial developments including grocery shopping and restaurants. None of the currently affordable housing apartments in the City are at risk of losing affordability restrictions during or within 10 years of the planning period. There are 67 restricted ownership units built or rehabilitated by private parties that are at risk of converting to market rate housing. These include individually owned single-family homes and mobile homes throughout the City. The City is committed to extending covenants as described in Program 3.C. In addition to planned and pending affordable housing projects described in the Land Inventory (Tables III-47 & III-48) of this Housing Element, the City will establish a pilot program to encourage development of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) as described in Program 1.G, in an effort to expand housing choices in the highest resource areas. Page 662 TN/City of Palm Desert General Plan/Housing Element Housing Element III-45 Disproportionate Housing Need and Displacement Risk As discussed under Existing Housing Stock (Table III-18), overcrowding is not a significant issue in the City of Palm Desert. As of the 2014-2018 ACS, only 4.0% of households in the City are considered overcrowded, with a higher percentage of renter households (8.0%, or 741 households) experiencing overcrowding. Among owners, 1.5 percent of households (218 households) experience overcrowding. A comparison to cost burden and severe cost burden based on 2010-2014 data in the AFH to 2013- 2017 data (Table III-43) shows that the percentage of cost burdened households dropped significantly for both renters and owners. However, nearly half (48.2%) of renters experience overpayment. The median rent ($1,260, Table III-44) in Palm Desert would result in a 4-person households with very low income ($37,650, Table III-42) to overpay. As the 2013-2017 CHAS shows in Table III- 43, 72.7% of all lower- income households in Palm Desert pay at least 30% of their income toward housing costs; among them, 67.8% of lower-income owner households are overpaying and 77.0% lower-income renter households are overpaying. However, as shown in Figure 6, overpayment by renters in 2019 was not a unique situation in Palm Desert, rather it is a chronic issue to be addressed both locally and regionally. Regionally, overpayment among renters tends to be higher in the western and eastern Coachella Valley, including the cities of Desert Hot Springs and Coachella and unincorporated areas of Riverside County. The City is in a generally similar but slightly better situation compared to the region. For example, a much lower percentage (9.18%) of the City’s family households with fewer than five persons experience severe housing cost burden compared to the Region’s (18.78%), and no Native American households in the City had severe housing cost Figure 6 Page 663 TN/City of Palm Desert General Plan/Housing Element Housing Element III-46 burdens while 19.53% of the Region’s households did. The City of Palm Desert sees a similar extent of renter overpayment to the cities of Rancho Mirage, Cathedral City, Palm Springs and Indio, but more overpayment than the cities of Indian Wells and La Quinta. In the Coachella Valley, overpayment among owners is less prevalent compared to renters. Most of the valley saw fewer than 60% of owners experience overpayment in 2019, including the entire City of Palm Desert. Certain portions of the City have fewer than 40% of owners overpaying for housing. Overpayment increases the risk of displacement for residents who can no longer afford their housing costs. The City has included all the programs under Goals 1 & 2 to carry out planned affordable housing projects and preserve and maintain existing affordable units. The City also aims to ensure adequate Section 8 housing assistance through outreach to the County Housing Authority. In addition to overpayment, over half (63.6%) of the housing stock in Palm Desert is older than 30 years, with approximately 11.4% over 50 years old. Older houses often require some type of repair or rehabilitation, and the cost of such repairs can be prohibitive, which makes the owner or renter live in unhealthy, substandard housing conditions or get displaced if the house is designated as uninhabitable and the owner does not complete repairs. However, older homes, particularly those built during the mid-century period in the City are sought after, and are more likely to be conserved. The City refers lower income households to SCE’s HVAC replacement program, averaging about 7 referrals annually when replacement of HCAC units is required. The City also runs a Home Improvement Program (HIP) to assist lower-income households with home repairs depending on funding availability. While only the Emergency Grant Component is currently funded, the City will consider CDBG funds to allow more participants in the HIP, especially for Figure 7 Page 664 TN/City of Palm Desert General Plan/Housing Element Housing Element III-47 the units identified as lacking adequate kitchen and plumbing facilities (Program 2.A). The City will continue to provide program materials in languages other than English, as needed (see Program 11.A). Homelessness According to the 2019 Homeless Point-In-Time (PIT) Count for Riverside County, there were 23 unsheltered homeless individuals in Palm Desert (see Table III-31). The City participates in CVAG’s Homelessness Initiative and the previous Homelessness Strategic Plan, and contributes over $100,000 annually to the Coachella Valley Association of Governments (CVAG) for regional homelessness services. The City permits homeless shelters in the Service Industrial (SI) zone and transitional and supportive housing in all residential zones. Program 5.D commits the City to bring its Zoning Ordinance in compliance with AB 101 for Low Barrier Navigation Center requirements on homeless shelters, and AB 139 for parking requirements at homeless shelters. Mortgage Loan Indicators Data related to home loan applications is made available annually through the Consumer Financial Protection Bureau, through the Home Mortgage Disclosure Act (HMDA). The data is organized by census tracts rather than local jurisdictions, and thus the following analysis is based on census tracts located entirely within the City of Palm Desert (451.14, 451.15, 451.16, 451.19, 449.29, 449.30, 449.19, 449.22, 449.27, 445.20, 514). Among first mortgage loan applications originated in Palm Desert in 2020, 76.4% were made to white applicants. For 16.3% of loans issued, race data was not available. Among first mortgage loan applications originated in Palm Desert in 2020, Asian (101, 3.2%), Black or African American (50, 1.6%), American Indian or Alaska Native (11, 0.3%) and Native Hawaiian or Other Pacific Islander (3, 0.1%) homebuyers received a small percentage of total mortgage loans. These percentages are lower than the corresponding race distribution of Palm Desert for white, Asian, and Black or African American groups. Considering the 16.3% of loans with unavailable data on race and geographical area covered in the analysis, the pattern is consistent with the City-wide race distribution. HMDA data combines data on Hispanic or Latino identity within other race categories; approximately 5.6% (180) of 3,199 loan applications that were originated went to borrowers identifying as Hispanic or Latino. The majority (447, 74.4%) of the 601 first mortgage loan applications that were denied were denied to white applicants (including 32 borrowers that also identified as Hispanic or Latino). Twenty (3.3%) applications were denied to Asian borrowers, nine (1.5%) were denied to borrowers identified as Black or African American, and two (0.3%) were denied to borrowers identified as American Indian or Alaska Native. The racial distribution in denied applications are proportional to that in originated loan applications and is considered consistent with the City-wide race distribution. In 2019, the origination rate to white applicants was marginally higher than in 2020, with 77.9% of the 1,783 first mortgage loans originated for home purchases going to white residents. Black (1.1 percent, or 19 loans) and Asian (3.4%, or 60 loans) residents had about the same share of loans originated in 2019 as compared to 2020. The origination rates for American Indian or Alaska Native (0.3%, or 5 loans) and Native Hawaiian or Other Pacific Islander (0.1%, or 2 loans) groups in 2019 were the same as in 2020. Race data was not available for 15.1% of first mortgage loans originated. Of the 402 first mortgage loans that were denied in 2019, 72.6% were denied to white applicants (292 loans, including 24 borrowers that also identified as Hispanic or Latino). Eight applications were denied to Asian borrowers, four each were denied to borrowers identified as Page 665 TN/City of Palm Desert General Plan/Housing Element Housing Element III-48 Black or African American and Native Hawaiian or Other Pacific Islander, and two were denied to American Indian or Alaska Native borrowers. Approximately 6.1% of loans originated and 8.5% of loans denied were for applicants who identify as Hispanic or Latino, though these loans are also counted within other race categories. As described in Programs 4.A and 11.A, the City will strive to ensure equal access to lending programs for people in all segments of the population and prevent any discriminatory practices based on race, color, national origin, religion, sex, age, or disability. Enforcement and Outreach Capacity The City complies with fair housing laws and regulation and enforces fair housing through periodical review of City policies and code for compliance with State law and investigation of fair housing complaints. In 2017, the City prepared an Assessment of Fair Housing (AFH) in association with its receipt of federal Community Development Block Grant (CDBG) funds. The City is set to meet housing element deadlines through efforts from both staff and consultants, and also update zoning laws and policies to ensure compliance with fair housing law upon adoption of the Housing Element update. The City has included an action in Program 9.A to update its Zoning Ordinance for density bonus requirements set forth in AB 2345. Program 8.A requires the City to maintain the Housing Overlay District and ADU standards in the Zoning Ordinance, and Program 1.G will create a pilot program to encourage accessory dwelling units dedicated as affordable units. Within a year of the Housing Element adoption, the City will ensure that the Zoning Code and land use policies comply with state laws and policies to allow a variety of housing types to serve all needs, encourage patterns of integration, and provide accommodations for protected classes. In addition to zoning and development standards, fair housing issues can also arise from rental, lending and purchase of housing including discriminatory behaviors by landlords, lenders, and real estate agents. Typical issues include refusal to grant reasonable accommodation requests or allow service animals, selective showing of property listings based on familial status, sex, religion, or other protected class, and more. The City complies with fair housing law on investigating such complaints by referring interested and concerned parties to Fair Housing Council of Riverside County (FHCRC). FHCRC is a non-profit organization approved by HUD that fights to protect the housing rights of all individuals and works with government offices to ensure fair housing laws are upheld. FHCRC services include anti-discrimination outreach and investigation, mediation of landlord-tenant disputes, credit counseling and pre-purchase consulting, first-time homebuyer workshops, and foreclosure prevention/loan modification services. Between Fiscal Years 2007/08 and 2015/16, a total of 152 housing discrimination complaints were filed by Palm Desert residents at the Fair Housing Council of Riverside County (FHCRC). The majority (59.9%) were on the basis of disability, followed by 14.5% on the basis of race and 6.6% on the basis of familial status (other categories each represented 5.3% or less of the total). FHCRC provided counseling related to lending discrimination for the City’s 2017 AFH. The AFH found that the census tracts with the highest loan denial rates (449.19 and 451.24) had low percentages of minority populations (10.7%). FHCRC’s comprehensive audit on rental, sales and lending in 2013 did not have specific findings to Palm Desert, but did indicate that discrimination occurred on the basis of race and national origin during the loan application process and sale and rental housing in Riverside County. Page 666 TN/City of Palm Desert General Plan/Housing Element Housing Element III-49 HUD’s Region IX Office of Fair Housing and Equal Opportunity (FHEO) provided case records for Palm Desert in July 2021. Fifteen fair housing cases were filed with their office during the previous planning period, with seven based on disability, four based on familiar status, three on retaliation, two on religion and one each based on race/sex/national origin. Note that three of the cases were filed on multiple bases. Six of these cases were closed due to no cause determination, and one case remains open. Seven cases were closed with successful conciliation/settlement for issues such as refusal to rent, discriminatory advertising/acts/terms and conditions, or failure to make reasonable accommodation. All but two of these cases were handled through the Fair Housing Assistance Program (FHAP), in which HUD funds state and local agencies that administer fair housing laws that HUD has determined to be substantially equivalent to the Fair Housing Act. The California Department of Fair Employment and Housing (DFEH) is the only certified agency for FHAP in California. Because state law has more protected classes than federal law, DFEH may have additional case records. A request was made in July to DFEH, but they were not able to provide data as of September 27, 2021. FHCRC and DFEH did not provide additional location details for cases either because they do not track the geographic origin of complaints or due to confidentiality concerns. The City continues to work with agencies and local organizations to affirmatively further fair housing through information dissemination, outreach and referral (Programs 4.A and 11.A). Sites Inventory The City examined the opportunity area map prepared by HCD and TCAC (Figure 1). The opportunity area map designates the majority of the City as “Highest Resource”, and the remaining as “High Resource”, which indicate areas whose characteristics have been shown by research to support positive economic, educational, and health outcomes for low-income families— particularly long-term outcomes for children. The City extends into the Santa Rosa Mountains in the south, and much of the area near the southern City boundary is designated as Open Space on the General Plan and not available for development. The City is primarily built out, and future housing development will occur as mainly infill projects and on the north side of the City which has larger vacant parcels. Using the statewide opportunity area map, local knowledge, and indicators of segregation, displacement risk, and access to opportunity as overlays to the City’s vacant land inventory, the City was able to identify sufficient sites for affordable units in Palm Desert’s sixth cycle inventory (See Land Inventory section of this Housing Element and Table III-47) in areas identified by TCAC/HUD as either “Highest Resource” or “High Resource” with the highest Jobs Proximity Index scores. As noted, there is no area of identified segregation in or near Palm Desert, and sites in the inventory are located in areas ranging from lowest to highest diversity ratings (Figure 2). However, some of the sites along the Highway 111 corridor are in areas with lower median incomes (<$55,000) and a slightly higher percentage of population below poverty level (<30%) and overpayment for housing. As shown in the inventory map associated with Table III-47, the sites identified for the inventory are located in different parts of the City in various zoning districts and dispersed to the extent possible with available lands, which will encourage a mix of household types across the City. Most of the sites identified for this Housing Element, primarily those located along the Highway 111 Page 667 TN/City of Palm Desert General Plan/Housing Element Housing Element III-50 corridor, will result in small-lot development and housing affordable to lower-income households. Above moderate income units are expected to be market-driven, single-family homes traditionally built in the City (see Table III-48). The above moderate income projects are located throughout the City, many of which are near affordable housing sites or part of the same project as affordable units (see map next to Table III-48). The vacant sites that are zoned suitably for multiple income categories are typically found on the central and north sides of the City, where larger vacant parcels are available for mixed-income projects which combat potential segregation and concentration of poverty by providing a variety of housing types to meet the needs of residents in these areas. Many sites identified for affordable housing are located along the Highway 111 corridor, which offers a variety of resources and amenities. Multiple bus routes serve the area, which provide local and regional connectivity in the City, Coachella Valley and Riverside County. The Highway 111 corridor area features walkable streets and neighborhoods, and provides walking access to retail, restaurants, grocery and personal services. Several elementary and middle schools are located nearby, as well as a community college and public facilities such as library and aquatic center. These future housing sites affirmatively further fair housing through their close proximity to jobs, neighborhood retail and services, education and transit, all of which can reduce the overall cost of living for lower-income households. The stores, restaurants and offices in both the Highway 111 and El Paseo commercial districts provide varied job opportunities. The City analyzed environmental constraints, including wildfire zones, 100-year flood zone, and 500-year flood zone, and confirmed that none of the sites identified are within or near any identified hazard zones. The sites identified in the vacant land inventory are not at risk of any environmental hazards. Evidence provided by the HUD tables and maps reveal there are no disparities in access to environmentally healthy neighborhoods. When compared with the Region, the City residents scored much higher. The City ranged from 53.59 for Whites to 62.28 for Asians. This is a much narrower range than the Region and demonstrates there are no significant differences in labor market access experienced by the different racial and ethnic populations living in Palm Desert. Contributing Factors Discussions with community organizations, government agencies, affordable housing developers, and the assessment of fair housing issues identified several factors that contribute to fair housing issues in Palm Desert, including: • Lack of affordable, accessible units in a range of sizes: Families with children and disabled people have a high need for affordable housing. • Lack of access to opportunity due to high housing costs including rising rents: Severe cost burdens greatly reduce the income available to meet other family needs including food, childcare, and medical expenses. This contributing factor also impacts households with one or more disabled member. Page 668 TN/City of Palm Desert General Plan/Housing Element Housing Element III-51 • Housing production out of balance with housing demand: New housing is needed to meet the housing needs of all income groups and fair housing protected classes. • Housing discrimination during the lending process Based on this assessment, most of these contributing factors can be attributed to a common issue of limited options and supply. The City identified three goals to further housing equity in Palm Desert: 1) preservation of affordability of housing units that could convert to market rate housing, 2) increasing the number of affordable units for families with children and people with disabilities or other special needs, 3) increasing awareness among residents of housing discrimination and how to file complaints with local, state and federal agencies. These goals target all contributing factors to fair housing issues identified above, and are incorporated into the Goals, Policies, and Programs section. Programs 4.A and 11.A focuses on information dissemination to all segments of the City population for affirmatively furthering fair housing and combating discrimination. Additionally, the City has incorporated meaningful actions that address disparities in housing needs and in access to opportunity for all groups protected by state and federal law, through preservation and new development of affordable housing and encouraging a variety of housing products including accessory dwelling units. (See Programs 1.A-G, 2.A, 2.B, 3.B-D) AFFORDABLE HOUSING DEVELOPMENTS The Palm Desert Housing Authority owns and operates approximately 1,114 rental housing units, and private developers own and operate approximately 319 rental units. An additional 227 units are anticipated. Additionally, the Housing Authority has assisted first-time lower income homebuyers in purchasing 301 ownership properties. Each development is described below. Palm Desert Housing Authority Owned and Assisted Rental Properties The Housing Authority owns eight (8) multi-family apartment complexes and seven (7) senior apartment complexes that provide affordable housing for lower income residents. Each of these complexes is described below. Combined, there are a total of approximately 1,114 affordable rental units that are Housing Authority owned and assisted. The number and mix of units and households fluctuates based on occupancy and turnover. The following breakdown is based on occupied units in January, 2021. Family Apartments: • One Quail Place provides 384 units, including 156 one-bedroom and 228 two-bedroom apartments, available to lower income ranges. There are 220 very low, 113 low, and 39 moderate income households currently living in the complex. • Desert Pointe is a 64-unit complex with 34 studio, 24 one-bedroom, and 6 two-bedroom units which currently house 38 very low-income households, 15 low-income households, and 8 moderate income household. Page 669 TN/City of Palm Desert General Plan/Housing Element Housing Element III-52 • Neighbors Garden Apartments has a total of 24 two-bedroom units, 15 of which are rented by very low-income households, 6 of which are low-income tenants, and 2 are rented to moderate income tenants. • Taos Palms provides 16 two-bedroom units to 10 very low, 4 low income households and 2 moderate income tenants. • California Villas is a 141-unit project which provides one-bedroom units to 90 very low, 35 low and 10 moderate income households. • Laguna Palms provides 48 units which include 4 studios, 18 one-bedroom, and 26 two- bedroom units to 30 very low income, 10 low income, and 6 moderate income tenants. • Palm Village Apartments provides 36 two-bedroom apartments. The property includes 20 very low income, 13 low income, and 2 moderate income tenants. • Santa Rosa Apartments provides 20 two-bedroom units to 13 very low income, 6 low income, and 1 moderate income tenants. Senior Apartments: • The Pueblos includes 15 one-bedroom units for 12 very low and 3 low income senior households. • Catalina Gardens provides 72 units, including 48 studio units and 24 one-bedroom apartments to 66 very low, 4 low, and 2 moderate income senior households. • Las Serenas Apartments has 150 units, including 100 one-bedroom and 50 two-bedroom units rented to 118 very low-income, 23 low-income, and 8 moderate-income seniors. • Candlewood Apartments provides a total of 30 units, including 26 one-bedroom units and 4 two-bedroom units to 22 very low, 5 low income and 3 moderate income senior households. • La Rocca Villas includes 27 one-bedroom apartments and houses 21 very low income, 4 low income and 2 moderate income residents. • Carlos Ortega Villas provides a total of 72 units, including 64 one-bedroom and 8 two- bedroom units, for 47 very low income, 22 low income, and 2 moderate income residents. Palm Desert Housing Authority and City Assisted Ownership Projects The Palm Desert Housing Authority and City provide financial assistance to eligible first-time homebuyers with down payment monies needed to secure financing toward the purchase of a new home in the Authority’s housing developments. • Desert Rose, a 161-unit single-family project, was developed in 1994. The three and four- bedroom units are restricted for a period of up to 45 years to purchasers in the very low, low, and moderate-income categories. Facilities within the project include community recreation and daycare. Page 670 TN/City of Palm Desert General Plan/Housing Element Housing Element III-53 • Falcon Crest provides 93 three and four-bedroom single-family homes for 13 low and 80 moderate income households. The project was completed in 2007 and 2008 and includes resale restrictions for a 45-year time period. Privately Developed and Assisted Ownership Projects The City and Palm Desert Housing Authority have provided various incentives to developers that dedicate units as affordable and carry affordability restrictions. • The Rebecca Road and San Marino Homes were part of the Acquisition Rehabilitation Resale program. Three (3) single-family homes were rehabilitated and resold with resale restrictions for low and moderate income households. • Coachella Valley Housing Coalition (CVHC) constructed a total of 11 self-help homes restricted to very low and low income households, that purchased the homes through low interest loans and sweat-equity programs. • Habitat for Humanity constructed 11 single-family homes, which are restricted to very low-income households that were purchased through low interest loans and sweat-equity programs. • Building Horizons homes were built as part of a vocational high school program, and provide 2 single-family homes for low-income households, with 30-year resale restrictions. • Portola Palms Mobile Home Park includes 23 mobile homes, 16 of which are very low income, and 7 of which are low income. The project includes resale restrictions for 30 years. • The Neighborhood Stabilization Program (NSP) was used to assist homeowners in the purchase of two (2) single-family properties. Privately Developed Rental Properties The City has provided various incentives to developers that dedicate units as affordable and carry affordability restrictions. Family Properties: • Hovley Gardens Apartments is a private project which received Agency assistance and tax credits, and constructed 162 two, three and four-bedroom rental units available to very low and low income households. • The Vineyards, which consists of a total of 260 units, includes 52 one and two-bedroom units reserved for very low, low and moderate income households. The units were created through the City’s density bonus program and the Agency has an option to purchase affordability of an additional 52 units in the future. Page 671 TN/City of Palm Desert General Plan/Housing Element Housing Element III-54 • The Enclave, which consists of a total of 320 units, includes 64 one, two, and three bedroom units reserved for very low, low and moderate income households. The units were created through the City’s density bonus program. • The Carel family has 1 two-bedroom apartment available to lower income residents. • L&T Development Company on Catalina Way includes 4 one-bedroom units for residents with low incomes. Senior Properties: • Atria Palm Desert, an assisted living facility, includes 5 one-bedroom apartments for residents with very low incomes. • Bernard on Catalina Way includes 4 studio apartments restricted to low and moderate income residents. • Legend Gardens is an assisted living facility that includes 10 one-bedroom apartments for residents with very low and low income levels. • River Run One includes 2 studio apartments for residents with very low and low incomes. • Villas on the Green, which consists of a total of 76 units, includes 15 studio, one, and two- bedroom units for persons over 55 years of age in the very low, low and moderate income categories. The units were created through the City’s density bonus program. Affordable Housing Units Built During the 2014-2021 Planning Period • Carlos Ortega Villas, a Palm Desert Housing Authority rental property described above, was built in 2015. It includes 72 affordable senior units and incorporates a variety of energy efficient design concepts, including passive heating and cooling, solar panels to generate electricity, solar thermal panels for heating water, and water-efficient landscaping and plumbing fixtures, with the long-term goal of having net zero energy usage. • The City secured an agreement with the Legend Gardens assisted living facility for 10 one- bedroom apartments for residents with very low and low income levels. CONSTRAINTS TO THE DEVELOPMENT OF HOUSING This section of the Housing Element analyzes the governmental, environmental, physical and economic constraints associated with the development of housing. These constraints can take many forms, but generally increase the cost of providing housing, which can have a potentially significant impact on affordable housing development. Page 672 TN/City of Palm Desert General Plan/Housing Element Housing Element III-55 Governmental Constraints Permit Processing Palm Desert has historically provided expeditious processing for planning entitlements. The City encourages the concurrent processing of applications and can complete the entitlement process on most projects in three to six months, depending on the approving body and the complexity of the application. The City requires tract map review and approval for all single-family home tracts and a precise plan for multi-family projects, both of which can be processed concurrently with any other permit that might be required. For either, the review process is a simple analysis that assures that the project’s design meets the requirements of the zone in which it occurs. Applications, when complete, are circulated to other City departments for comments. The project is then reviewed by the Architectural Review Commission (ARC) and approved by the Planning Commission. The ARC provides technical review of the proposal, including the provision of parking, trash enclosures and similar standards, and reviews the landscaping plans for water efficiency. The ARC meetings are public, but are not noticed hearings. ARC review is scheduled within two to three weeks of an application being found complete, and usually precedes Planning Commission hearing by three to four weeks. The ARC provides recommendations to the Planning Commission, which takes action on Precise Plan applications. Public notice and mailings are made 10 days prior to a Planning Commission hearing. The findings needed for approval of either a tract map or precise plan pertain to the project’s consistency with State law; the General Plan and Zoning Ordinance; public health and safety; and the site’s physical ability to accommodate the project. The findings focus on General Plan and Zoning consistency, are not subjective and do not pose a constraint to development. The average processing time for a typical application is 4 to 6 months, including the recently approved Montage single family homes, which received approval in 6 months, which is generally consistent with most Valley cities, and does not represent a constraint. The City also has a building permit streamlining process, for a fee, and allows “at risk” building permit applications, which can be submitted immediately following ARC review, and prior to Planning Commission approval. The City has not received any requests for streamlined processing under SB 35, and to date has relied on the requirements of law should an SB 35 project be proposed. In order to encourage development of affordable housing under SB 35, Program 1.H has been added to require the establishment of an SB 35 streamlining process within the first year of the planning period. Individual single-family homes do not require a public hearing and are approved by the Planning Department as part of the usual building plan checking process. Building permits are processed, generally in one to four months. Development of residential projects under the City’s recent General Plan update have been consistent with the densities allowed under the Land Use Map. The City’s processes are not a constraint to the provision of affordable housing. Page 673 TN/City of Palm Desert General Plan/Housing Element Housing Element III-56 Application Fees The City posts current fees and exactions that are applicable to proposed housing development projects on the City’s website, consistent with Government Code §65940.1(a)(1)(A). Table III-21, below, illustrates typical permit fees for a hypothetical single-family subdivision and an apartment project. Each fee is described in detail in subsequent sections of the Housing Element. The table is not meant to be exhaustive, but provides a general representation of typical development fees. Total fees for a 32-unit subdivision are estimated at approximately $19,041 131 per unit, 63% of which ($11,908) are impact fees which are not controlled by the City. Total fees for a 32-unit apartment complex are estimated at $7,498 589 per unit, 73% of which ($5,487) are non-City fees. For an affordable housing apartment project with an average per unit cost of $208,200 per unit, the City’s fees represent 3.6% of the cost of that unit, and are not a constraint to development. Furthermore, the City has the ability to waive fees for affordable housing projects, with the exception of fees not imposed by the City such as MSHCP fees, which further reduce the cost. The City’s development fees are not an impediment to the provision of housing. Table III-21 Typical Permit Fees for Housing Developments in Palm Desert Fee Type Typical Fees 32 Unit Subdivision1 32 Unit Apartment Project2 City Fees: Planning Department: Tentative Tract Map $3,308 n/a Tentative Parcel Map n/a $1,203 Environmental Assessment $276 $276 Precise Plan $2,894 $2,894 Public Works Department3: Grading Plan Check $3,023 $853 Subdivision Precise Grading Plan Check $3,500 n/a SWPPP/NPDES Plan Check $176 $176 PM10 Plan Check $78 $78 Signing and Striping Plan Check $1,110 $1,110 Traffic Signal Plan Check $1,480 $1,480 Signalization Impact Fee $1,600 $1,600 Drainage Impact Fee (location dependent) $1,500 $1,500 WQMP Fee (deposit) $3,700 $3,700 Building and Safety Department: Plan Check $46,080 $8,512 Inspection $72,960 $9,120 Permit Issuance $105 $105 New Construction Fee $25,600 $12,160 Fire Facilities Fee (location dependent) $22,688 $5,824 Art in Public Places Fee $41,080 $16,656 Subtotal, City Fees: $228,264 $64,353 Non-City Fees: Strong Motion Implementation Program (SMIP) Fee $2,136 $866 Multi-Species Habitat Conserv. Plan (MSHCP) Fee $43,872 $8,128 Page 674 TN/City of Palm Desert General Plan/Housing Element Housing Element III-57 Table III-21 Typical Permit Fees for Housing Developments in Palm Desert Fee Type Typical Fees 32 Unit Subdivision1 32 Unit Apartment Project2 Transportation Uniform Mitigation Fee (TUMF) $73,920 $42,560 Desert Sands Unified School District (DSUSD) Fee $261,120 $124,032 Subtotal, Non-City Fees: $381,048 $175,586 Total Cost: $609,312612,206 $239,939242,833 Total Cost Per Unit: $19,041131 $7,498589 1 Assumes a 10-acre subdivision (4 du/ac + 2 addl. acres), 32 single-family dwelling units. Each unit is 2,000 square feet and valued at $513,498 (average value from Table III-14). 2 Assumes a 2-acre parcel with 32-unit multi-family apartment complex. Each unit is 950 square feet and valued at $208,200 (average value from Table III-14). 3 Does not include Half Street and Full Street Improvement Plan Check or Storm Drain Plan Check which are based on project-specific linear feet. Table III-22, below, identifies the City’s current (2021) Community Development/Planning fees for processing applications and permits. They have not increased since 2012 and are not considered a constraint to the development of affordable housing in the City. Table III-22 Community Development/Planning Fee Schedule, 2021 Permit Type Fee General Plan Amendment/Change of Zone $2,007 Architectural Review (single family) $226 Conditional Use Permit or Precise Plan $2,894 Environmental Assessment $276 Tentative Tract Map $3,308 Tentative Parcel Map $1,203 Source: “Community Development/Planning Fee Schedule,” Resolution 2012-37, City of Palm Desert, June 14, 2012. General Plan and Zoning Ordinance Constraints The residential districts of the Land Use Element allow a broad range of densities for all types of development: • Rural Neighborhood allows 0.05 to 1 units per acre • Golf Course & Resort Neighborhood allows up to 8 units per acre • Conventional Suburban Neighborhood allows 3 to 8 units per acre • Small Town Neighborhood allows 3 to 10 units per acre • Town Center Neighborhood allows 7 to 40 units per acre The General Plan also allows residential uses in Commercial designations: • Resort & Entertainment District allows up to 10 units per acre Page 675 TN/City of Palm Desert General Plan/Housing Element Housing Element III-58 • Regional Retail District allows 10 to 15 units per acre • Suburban Retail Center allows 10 to 15 units per acre • Neighborhood Center allows 10 to 15 units per acre • City Center/Downtown allows 12 to 40 units per acre The City’s Zoning designations parallel the General Plan and include: • Hillside Planned Residential District (HPR) (maximum 0.2 du/ac) • Estate Residential District (R-E) (0.5 to 1 du/ac) • Single-Family/Mobile Home District (R-1-M) (4 to 7 du/ac) • Single-Family District (R-1) (2 to 8 du/ac) • Mixed Residential District (R-2) (3 to 10 du/ac) • Multifamily Residential District (R-3) (7 to 40 du/ac) • Planned Residential District (PR) (4 to 40 du/ac) Density Bonus The Zoning Ordinance also includes density bonus provisions, incentives and concessions, housing overlays, and flexible development standards where applicable. Section 25.34.040 establishes eligibility criteria and general provisions for density bonuses. The number of additional dwelling units entitled depends on the number of very low, low, and moderate income units and senior units provided in the development, with a maximum increase of 35%. Additional concessions, such as reductions in development standards, may be approved, and special provisions are available for development of a childcare facility or donation of land to the City. Effective January 1, 2021, AB 2345 amends the state’s Bonus Density Law to increase the maximum density bonus from 35% to 50% for projects that provide at least: 1) 15% of total units for very low income households, 2) 24% of total units for low income households, or 3) 44% of total for-sale units for moderate income households. AB 2345 also decreases the threshold of set- aside low income units required to qualify for concessions or incentives, and decreases the number of parking spaces required for 2 and 3-bedroom units. Density bonus projects within ½ mile of a major transit stop may also qualify for reduced parking requirements. Program 9.A directs the City to amend the Zoning Ordinance to assure compliance with AB 2345. Housing Overlays The Senior Housing Overlay (SO) allows flexibility in density and development standards to reflect the unique requirements of persons over the age of 55. The SO allows for reductions in parking standards, and calculates units based on population per acre, rather than units per acre, to allow greater flexibility in the development process. In 2020, the City replaced the former Medium/High Density Housing Overlay District with the Housing Overlay District (HOD) to incentivize the development of new housing units at affordable rents. The HOD provides optional, flexible development standards, density bonuses, design criteria, and parking reductions for the development of a wide variety of housing products which provide a minimum of 20% of all units at income-restricted rents, or at least one unit for smaller residential projects. It also eliminates the public hearing requirements and waives City plan check/inspection fees and potentially other fees. The HDO was applied to all Housing Authority parcels and privately owned parcels listed in Table III-47, Vacant Land Inventory. Page 676 TN/City of Palm Desert General Plan/Housing Element Housing Element III-59 Residential Development Standards The development standards in the Zoning Ordinance are also not restrictive, as shown in Table III-23, below. Table III-23 Residential Zoning District Development Standards Standard Zoning District* R-E3 R-13 R-2 R-3 R-1-M1 HPR 4 PR5 ≥1ac ≥15,000s f ≥10,000s f but ≤15,000s f <10,000s f Units/Acre 1-2 2-3 3-4 5-8 3-10 7-40 7 1/5 ac 4-40 Lot Size, minimum 40,000 sf 15,000 sf 10,000 sf 8,000 sf 3,500 sf 3,000 sf 20 ac/ 5,000 sf --- --- Lot Size, maximum 1 ac No max 14,999 sf 9,999 sf No max No max No max --- --- Lot Width, minimum 150’ 90’ 90’ 70’ 50’ 40’ 500’ --- --- Lot Depth, minimum 200’ 125’ 100’ --- --- --- --- --- --- Lot Coverage, maximum 30% 35%2 35%2 35%2 60% 75% --- 10% 50% Setback Front/Side / Rear 30/10/5 0 25/15/20 20/8/20 20/5/15 12/5/1 5 10/8/1 0 20/10/1 0 -/-/- -/-/-8 Parking 2/unit9 2/unit9 2/unit9 2/unit9 2/unit9 2/unit9 2/unit9 2/unit 9 2/unit 9 Building Height, max 15’ (18’ ARC)7 15’ (18’ ARC)7 15’ (18’ ARC)7 15’ (18’ ARC) 30’ 40’ 18’ --- 40’ Group usable open space/du, minimum --- --- --- --- --- 300 sf --- --- --- * Residential development is allowed in all Commercial zones 1-7 Notes are provided in Zoning Ordinance Table 25.10-3. 8. Established in Precise Plan. 9. Except in HOD, where Studios and One Bedrooms are 1.5/unit. ARC = Architectural Review Commission Source: City of Palm Desert Zoning Ordinance, Table 25.10-3 The City’s development standards allow for two story development in the R-1 district (lot size <10,000 sf), 2.5 stories in the R-2 district, and 3 stories in the R-3 and PR districts. Common area requirements in the R-3 and PR zones are also typical of desert cities and allow for clustering of units to allow for common area amenities. Even with imposition of the City’s development Page 677 TN/City of Palm Desert General Plan/Housing Element Housing Element III-60 standards, and assuming a unit size of 1,000 square feet, with two parking spaces per unit and 40% open space, densities in excess of 22 units per acre could be achieved. Therefore, the City’s development standards are not a constraint on the development of housing. Accessory Dwelling Units The Zoning Ordinance was updated in 2020 to comply with new state legislation pertaining to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs). An ADU is an attached or detached residential unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence; it also includes efficiency units and manufactured homes. A JADU is no greater than 500 square feet in size, contained entirely within an existing or proposed single-family structure, including its own sanitation facilities or shares them with the single-family structure, and includes an efficiency kitchen. ADUs and JADUs are permitted on any lot in a residential or mixed use zone, with the exception of the Hillside Planned Residential (HPR) zone, and are also permitted in the Public/Institutional zone. As shown in the following table, between 2014 and 2020, a total of 162 ADU building permits were issued (average of 23 ADUs per year). Table III-24 ADU Building Permits, 2014-2020 Year No. of Permits Issued 2014 26 2015 19 2016 27 2017 26 2018 21 2019 19 2020 24 Total: 162 Short-term Rental Ordinance Section 5.10.050 of the Municipal Code defines short-term rental (STR) units as privately-owned residential dwellings rented for dwelling, lodging, or sleeping purposes for a period of less than 27 consecutive days. STRs are allowed in the RE (Residential Estate), HPR (Hillside Planned Residential), R3 (Residential Multiple Family) except for apartment units, and PR (Planned Residential) only within a Homeowners Association that allows for STRs with written approval. Homeowners are required to obtain a STR permit and collect transient occupancy taxes (TOT) at a rate of 11% of the rent charged. STRs provide homeowners with opportunities to increase their incomes, which can offset their housing costs. STRs are often rented by vacationers rather than permanent residents, and the added TOT revenues are not considered a constraint to housing. Furthermore, because only units within planned communities are allowed to have STRs, and these communities contain only market rate units, the presence of STRs in Palm Desert does not constrain the development of affordable housing. Page 678 TN/City of Palm Desert General Plan/Housing Element Housing Element III-61 Low Barrier Navigation Centers Assembly Bill (AB) 101 requires that Low Barrier Navigation Centers (LBNC) be a by-right use in areas zoned for mixed use and nonresidential zoning districts permitting multifamily uses. LBNCs provide temporary room and board with limited barriers to entry while case managers work to connect homeless individuals to income, public benefits, permanent housing, or other shelter. Program 5.D of this Housing Element directs the City to review and revise the Zoning Ordinance, as necessary, to ensure compliance with AB 101, and to modify the definition of “homeless shelter” to include this use. Zoning for Special Housing Types The Zoning Code also facilitates the development of other special housing types, as summarized in the table below. Group homes for 6 or more are permitted by right in the residential zones, and require a Conditional Use Permit in the commercial zones, to assure high quality of life for the residents. Reasonable accommodation measures for disabled residents are established in Zoning Code Section 25.64.050. Reasonable accommodation requires a no-fee application, and are approved at the staff level, subject only to the following standards: 1. The requested accommodation is requested by or on behalf of one or more individuals with a disability protected under the fair housing laws. 2. The requested accommodation is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling. 3. The requested accommodation will not impose an undue financial or administrative burden on the City as “undue financial or administrative burden” is defined in fair housing laws and interpretive case law. 4. The requested accommodation will not result in a fundamental alteration in the nature of the City’s zoning program, as “fundamental alteration” is defined in fair housing laws and interpretive case law. 5. The requested accommodation will not, under the specific facts of the case, result in a direct threat to the health or safety of other individuals or substantial physical damage to the property of others. Page 679 TN/City of Palm Desert General Plan/Housing Element Housing Element III-62 Table III-25 City of Palm Desert Zoning for Special Housing Types Housing Type Zoning Where Permitted Multi-family housing R-2, R-3 permitted use PR conditional use OP, PC-1, PC-2, PC-3, PC-4, SI conditional use P conditional use Factory-built, manufactured housing R-1-M conditional use P conditional use Mobile homes R-1-M conditional use P conditional use Manufactured home parks R-1-M conditional use Farmworker housing P conditional use Homeless shelter SI permitted use Emergency shelters PC-1, SI permitted use Transitional & supportive housing RE, R-1, R-2, R-3, R-1M, HPR, PR permitted use Single-room occupancy units SI conditional use Group home RE, R-1, R-2, HPR, PR permitted use OP, PC-1, PC-4, SI conditional use P conditional use Guest dwelling RE, R-1, R-2, HPR, PR permitted use Caretaker housing SI permitted use Assisted living R-1, R-2, R-3, PR conditional use ADUs and JADUs RE, R-1, R-2, R-3, R-1M, PR, P permitted use Infrastructure Requirements Most of the City is served by General Plan roads, water, and sanitary sewer facilities. Individual development projects are required to connect to water and sewer facilities and improve roadways in and adjacent to the project. Adjacent roadways must be improved to their ultimate half width and include curb, gutter and sidewalk. Roadway standards for local or neighborhood streets that allow parking on both sides must have a paved width of 40 feet. The City will allow deviations to these standards, including the narrowing of streets if on-street parking is restricted. Pursuant to SB 1087, the Coachella Valley Water District will be provided with the adopted Housing Element and required to establish specific procedures to grant priority service to affordable housing projects. As water and sewer services are installed in most neighborhoods in the City, the City’s water and sewer provider, the Coachella Valley Water District (CVWD), will not be constrained in providing services in the City. CVWD has an approved Urban Water Management Plan (UWMP), which was developed based on the City’s General Plan build out, which states that it has sufficient supplies available to meet the City’s built out demands. The District’s Cook Street Water Reclamation Plant (WRP-10), which provides sanitary sewer treatment for the City, has a combined secondary capacity of 18 million gallons per day, and in 2021 processed an average daily flow of approximately 9 million gallons per day. The District, Page 680 TN/City of Palm Desert General Plan/Housing Element Housing Element III-63 therefore, has more than enough capacity to treat wastewater generated by the City in the future, including sufficient capacity to accommodate the regional housing need. As referenced in its 2015 UWMP, CVWD’s long-range plans include adding treated and untreated Colorado River water to its urban water distribution system and using desalinated agricultural drain water for irrigation purposes. The City routinely consults and coordinates with CVWD to assure that services and facilities are adequate to meet the community’s needs. “Dry” utilities in the City include electricity, natural gas, telephone, cable, and solid waste collection and disposal. Southern California Edison (SCE) provides electricity to most of the City of Palm Desert. Imperial Irrigation District (IID) provides power to limited portions of the City, including most of the California State University/San Bernardino (CSSB) Coachella Valley Campus and the Avondale Country Club. Natural gas services and facilities are provided to most of the City by the Southern California Gas Company through regional high-pressure transmission lines and medium-pressure distribution lines. Development located west of the Palm Valley Stormwater Channel, parallel to Highway 74, is not connected to the natural gas system and uses propane gas as an alternative fuel source. Telecommunication services are provided to the City by Frontier Communications, Spectrum and other cell service providers. Solid waste collection and disposal is provided by Burrtec Waste & Recycling Services. The City coordinates with utility and service providers, as necessary, regarding the planning, designing, and siting of distribution and other facilities to assure the timely and environmentally sensitive expansion of facilities. Public Works Fees Table III-26 depicts the City’s Public Works Department engineering fees, including those associated with site preparation and infrastructure. Table III-26 Public Works Engineering Fees Grading Plan Check (per plan) $853 1st 3 acres $310/acre ea. add. acre Subdivision Precise Grading Plan Check $1,628 up to 8 lots; $78/lot each add. Hydrology Report Plan Check $352/acre SWPPP/NPDES Plan Check $176 PM10 Plan $78 Half Street Improvement Plan Check $891/1000 LF Full Street Improvement Plan Check $1,550/1000 LF Storm Drain Plan Check $1,550/1000 LF Signing and Striping Plan Check $1,110 Traffic Signal Plan Check $1,480 Faithful Performance Bonds 100% of Public Improvements + 25% of Grading Amount Labor & Materials Bond ½ of Faithful Performance Amount Signalization Impact Fee $50.00/residential unit Drainage Impact Fee $1,000-$4,000/ac. (based on location) MSHCP Fee 0-8 units/acre: $1,371 per unit 8.1-14 units/acre: $571 per unit 14+ units/acre: $254 per unit WQMP Fee $3,700 Sources: “Public Works Engineering Fees,” City of Palm Desert, June 27, 2017; MSHCP Local Development Mitigation Fee, Coachella Valley Conservation Commission, July 1, 2020. Page 681 TN/City of Palm Desert General Plan/Housing Element Housing Element III-64 Because individual projects vary greatly, it is not possible to determine an average cost per unit based on Public Works fees beyond the estimate provided in Table III-21; however, the limited impact fees charged by the City make it one of the less costly in the Coachella Valley in which to develop. These fees are not a constraint on the development of affordable housing. Building Code Requirements As with most communities in California, the City has adopted the California Building Code (CBC) and updates the Code periodically as State-wide updates are developed. Currently (2021), the City is enforcing the provisions of the 2019 CBC. The City cannot adopt standards that are less stringent than the CBC. The only local amendments made by the City are administrative and relate to the timing of payment of fees. These amendments have no impact on the provision of affordable housing. Since all communities in the State enforce similar provisions, the City’s CBC requirements are not an undue constraint on the development of affordable housing. Building Permit Fees5 The Building Department charges on a per square foot basis for building permit plan checks and inspections. For single-family custom or tract homes less than 2,500 square feet, the combined architectural and structural charge is $0.72 per square foot for plan check, and $1.14 per square foot for inspection. Fees vary slightly for other single-family housing types and sizes. For multi- family residential units, the combined architectural and structural plan check fee is $0.30 per square foot for projects less than 15,000 square feet, and $0.28 per square foot for projects larger than 15,000 square feet. Inspection fees are $0.36 per square foot for the smaller projects, and $0.30 per square foot for the larger projects. A flat fee of $105 is charged for permit issuance. In all cases, whether single family or multi-family, additional charges apply for plumbing and electrical inspections. New Construction Tax Per Ordinance No. 216, a new construction tax of $0.40 per square foot is charged on all new and additional square footage added to the building under roof (i.e. additional square footage for single- family dwelling additions, converting garages, atriums or patio areas to living space and all commercial additions). Low Income Housing Mitigation Fee Per City Resolution 90-130, all commercial development is assessed mitigation fees which are directed toward low income housing. Fees are paid at the issuance of building permits, according to the following schedule. 5 “Building and Safety Fee Schedule,” Resolution 2012-37, City of Palm Desert, June 22, 2012. Page 682 TN/City of Palm Desert General Plan/Housing Element Housing Element III-65 Table III-27 Low Income Housing Mitigation Fee Schedule Type of Development Fee General Mixed Commercial $1.00 per sq. ft. Professional Office $0.50 per sq. ft. Industrial $0.33 sq. ft. Resort Hotel (major amenities) $1,000 per room Non-Resort Hotel (limited amenities) $620 per room Fire Facilities Impact Mitigation Fee The Fire Facilities Impact Mitigation Fee, shown below, is charged in designated areas to supplement future fire protection needs. Table III-28 Fire Facilities Impact Mitigation Fee Schedule Type of Development Fee Residential: Low Density $709/unit Medium Density $306/unit High Density $182/unit Note: fee is charged only in designated areas Non-residential fees are not shown. Art in Public Places Fee Per Ordinance No. 473, the City charges an Art in Public Places fee. The residential fee is 0.25 of 1% of valuation of the structure. Individual single-family dwelling units not in a development are exempt from the first $100,000. Other Development Fees In addition to the City’s fees, residential developers are responsible for the payment of the State mandated school fees. School fees in the Desert Sands Unified School District (DSUSD) are currently (2021) $4.08 per square foot. Development in the Coachella Valley is also required to pay Transportation Uniform Mitigation Fees (TUMF) to the Coachella Valley Association of Governments (CVAG) to offset impacts to regional roads and transportation improvements. The fee is $2,310 per detached single-family unit, $1,330 per multi-family/mobile home unit, and $495 per nursing/congregate care unit. There is a 15% discount for transit-oriented development. Affordable housing is exempt from TUMF fees. The City is within the boundaries of the Coachella Valley Multiple Species Habitat Conservation Plan (CV MSHCP). As such, new development projects are required to pay local development mitigation fees for the acquisition and management of habitat lands. Fees are listed in Table III- 26. Page 683 TN/City of Palm Desert General Plan/Housing Element Housing Element III-66 The City’s Strong Motion Instrumentation Program (SMIP) fee is charged on new development. For residential development, the fee is 0.00013 of total valuation. Collected SMIP fees are passed through to the State Department of Conservation. Developers also must pay connection and/or metering fees for public utilities. These fees vary somewhat from one provider to the next, but since many of the utility companies in the Coachella Valley serve all the cities, the fees are consistent throughout the area. Code compliance for structural deficiencies or maintenance problems is processed as follows. A phone call and/or a site visit is made to inspect the reported problem and discuss correction of deficiencies with the owner. In most instances, this is sufficient to cause the violation to be corrected by the property owner. If the violation is not corrected, a notice is sent to the owner, giving the owner 20 days to correct the violation. The City has the ability to directly abate a violation if the owner is unwilling or cannot be located. All costs associated with abatement are billed to the property owner. If the owner is unwilling to pay, a lien is placed on the property. These procedures are typical of those employed by most cities in California and do not place an undue constraint on the development or maintenance of housing. Efforts to Remove Governmental Constraints No governmental constraints have been identified that have a significant adverse impact on housing development in Palm Desert. The City’s permitting process and infrastructure requirements are comparable to those of other Coachella Valley cities. Although some application fees have increased somewhat since the last planning period, they remain among the lowest in the region. General Plan and zoning land use designations allow for all types of development and a broad range of densities. Zoning Code Section 25.34.040 allows the City to grant density bonuses, offer incentives and concessions, and waive or reduce development standards for affordable housing projects that can result in identifiable cost reductions to the developer. The City’s housing policies and programs have been reviewed and revised, as necessary, to assure that governmental constraints are minimized. Policy 7 of this Housing Element allows the City Council to waive fees for affordable housing projects on a case-by-case basis. Non-Governmental Constraints In general, the City sees applications for building permits submitted within approximately 30 days of entitlement of a project. This process, however, is entirely under the control of the developer, and can vary substantially from one project to another. The City generally does not receive requests for projects below the density allowed for sites on its Vacant Land Inventory (Table III-47). Recent project applications rather have requested the maximum density for these sites (please see further discussion under Land Inventory, below). There are no non-governmental constraints that impact the City’s ability to meet its RHNA allocation by income category. On the contrary, the City’s processing times and costs have generated applications for 710 units affordable to very low and low income households, and 617 units affordable to moderate income households (see Pending Affordable Housing Projects, below). The constraints, expressed by the affordable housing community at City Housing Element workshops and study sessions, occur with State funding applications, not with non-governmental aspects of the development process. The City actively supports affordable housing project funding applications in order to overcome the constraint caused by State processes. Page 684 TN/City of Palm Desert General Plan/Housing Element Housing Element III-67 Economic Constraints Economic constraints are those associated with the cost of land and construction, and the ability to finance any housing, ranging from single-family homes to larger apartment or condominium projects. The cost of land varies somewhat from city to city in the Coachella Valley, but the cost of construction and the ability of homes and projects to financed is regional in nature. Land and Housing Costs The cost of land has the potential to impact the overall cost of housing. A survey of vacant residential lots in Palm Desert found that single-family properties range from approximately $156,000 to $1,400,000 per acre, with an average of $804,453 per acre.6 Multi-family properties average $391,598 per acre. As shown in Table III-19, according to ACS data, the median cost of existing homes in Palm Desert increased 9.0% between 2013 and 2018, from $308,000 to $335,400. According to a recent regional economic study, the median price in 2020 (3rd quarter) was $484,324 for existing homes and $621,938 for new homes.7 The American Community Survey determined that the median rental rate in the City in 2018 was $1,260. In order to update this information to current (2021) conditions, representative rental rates for non-subsidized apartments were collected and are provided in Table III-29, below. As shown, rents can range from $1,675 to $2,490 for a 3-bedroom unit. Additional analysis shows rents can range from $3,000 to $7,500 and higher for a 4+-bedroom unit.8 Table III-29 Median Gross Rent by Bedrooms No. of Bedrooms Median Gross Rent* No bedroom $729 1 bedroom $974 2 bedrooms $1,307 3 bedrooms $1,691 4 bedrooms $2,082 5+ bedrooms Not provided Median Gross Rent: $1,260 * estimated, renter-occupied housing units paying cash rent Source: American Community Survey 2014-2018 5-Year Estimates, Table B25031 6 LandWatch.com, accessed January 28, 2021. 7 “Inland Empire Quarterly Economic Report,” Year 32, Economics & Politics, Inc. October 2020. 8 Rent.com, accessed September 3, 2020. Page 685 TN/City of Palm Desert General Plan/Housing Element Housing Element III-68 Table III-30 Representative Apartment Market Rental Rates in Palm Desert, 2021 Project Name Unit Size Market Rental Rate The Regent 1 & 2 Bdrm $1,395-$1,685 Desert Fountains Studio, 1 & 2 Bdrm $915-$1,230 Desert Oasis Studio, 1, 2 & 3 Bdrm $1,195-$1,675 The Enclave 1, 2 & 3 Bdrm $1,660-$2,400 The Vineyards 1, 2 & 3 Bdrm $1,490-$2,490 Royal Palms 2 Bdrm $1,695 Construction Costs Construction costs vary widely depending on location, project site, bedroom count, finishes, fixtures, amenities, building type, and wage and hiring requirements. Other determining factors include terrain and soil conditions, environmental factors, and availability of infrastructure. In the Coachella Valley, construction costs for single-family dwelling units generally range from $235 to over $275 per square foot (excluding site improvements), varying based on the location, size, materials, fixtures, and finishes selected.9 Vertical multi-family construction costs generally range from $125 to $145 per square foot.10 A 2021 survey of regional affordable housing developers determined that the average construction cost for affordable housing in the valley is approximately $317,074 per unit/door. Financing Costs The cost of financing can also impact the development community’s ability to fund projects. Mortgage interest rates are currently near historic lows but fluctuate over time. Affordable housing typically relies on a mix of public and private financing sources, including tax credits, subsidies, grants, bond funds, and other funding sources, some of which are subject to rules and restrictions. Physical Constraints Age of Housing Stock As shown in Table III-15, 25,312 housing units in the City are over 30 years old, representing 63.6% of the housing stock. Maintenance in the City is not a significant issue; however, and the Palm Desert Housing Authority has programs in place to assist lower income households with home repairs and improvements. Condition of Housing Stock As shown in Table III-16, of 24,114 occupied housing units in Palm Desert, 67 (0.3%) lacked complete plumbing facilities, and 198 (0.8%) lacked complete kitchen facilities. Depending on overall conditions, these units could be considered substandard. 9 Gretchen Gutierrez, CEO, Desert Valleys Building Association, March 2021. 10 Chris Killian, Senior Vice President of Construction, National Core, March 2021. Based on a typical 50-75 unit project with 2 and 3 story garden style walkup buildings (Type V-Wood). Page 686 TN/City of Palm Desert General Plan/Housing Element Housing Element III-69 The Palm Desert Housing Authority manages the Housing Improvement Program (HIP), which is funded through CDBG. Currently, the emergency grant component is the only component that is funded. It assists homeowners with emergency health and safety repairs to their homes, such as roof repairs, water heater replacement, and ADA improvements. Four (4) households received emergency grants during the 2014-2021 planning period. Environmental Constraints The City is identified as Zones III and IV in the Uniform Building Code (UBC) for seismic activity. The UBC imposes certain standards for construction in these zones, which may add to the overall costs of housing. These standards, however, are necessary for the public health and safety, and are common throughout the Coachella Valley and California. None of the proposed sites occur on lands designated as Alquist-Priolo Earthquake Fault Zones by the State. There are no active faults on any of the sites proposed for development of affordable housing units in the City. The standards required to protect the City’s residents from seismic hazards are not considered a constraint to the provision of housing. There are no other environmental constraints to the development of housing. Energy Conservation In addition to the requirements of Title 24 of the Building Code, the City has enacted additional energy efficiency requirements, water conserving landscaping requirements, and has a number of energy conservation programs for residents. Although the cost of installation of energy efficient, “green” or similar products in a home or apartment may increase the initial cost, affordable housing providers in the Coachella Valley have indicated that the cost differential was becoming smaller as technologies improved; and that the long-term benefit to the home owners or renters was worth the added initial expense. These developers implement energy conserving construction to the greatest extent possible in their projects. Carlos Ortega Villas, an affordable senior housing project built in 2015, includes passive heating and cooling, solar panels for generating electricity, solar thermal panels for heating water, and water-efficient plumbing fixtures and landscape materials, with the long-term goal of having net zero energy usage. SPECIAL HOUSING NEEDS This section of the Housing Element quantifies households with special housing needs, such as farmworkers, the homeless, and seniors living in the City. These households can have housing needs which may be more difficult to address, and which require special attention. Farm Workers Farm workers are employed in agricultural industries, including livestock, crops, and nursery products, and typically perform manual and/or hand tool labor-plant, cultivate, harvest, or pack field crops. The industry is supported by both year-round and seasonal workers who typically earn low wages, have difficulty obtaining safe and affordable housing, and have limited access-other services, such as education, transportation, and health care. Seasonal or migrant workers who travel from their permanent homes-work during harvest periods may live in rooming houses, finished garages, trailers, or other temporary shelters. Page 687 TN/City of Palm Desert General Plan/Housing Element Housing Element III-70 Citrus, melon, vegetable, and nursery stock production is a key component of the Coachella Valley economy. However, agriculture is focused on the east end of the Coachella Valley, approximately 10 miles or more to the southeast. Farm worker households generally fall into low and very low income categories. Low income groups often need housing near work; for farmworkers, housing is most needed in rural, agricultural areas rather than urban areas. In the Coachella Valley, the principal housing options for migrant and local seasonal farm workers are family-owned homes, private rental houses, second units, apartments, and mobile homes. Palm Desert’s continued urbanization has eliminated commercial farming in the City, and no agricultural lands are designated in its General Plan. In 2018, there were 147 persons employed in “agriculture, forestry, fishing and hunting, and mining” in the City, which constitutes only 0.7% of the City’s civilian employed population 16 years and over, and likely consists of mining employees at local sand and gravel operations located in unincorporated County lands and the cities of Palm Springs and Indio. Demand for housing specifically targeted for farm workers has not been identified. Nevertheless, as with other special needs, farmworker households can benefit from rental subsidies provided by City and City incentives for developers to maintain affordable units that are available to all segments of the population. Homeless Homeless persons are those in need of temporary or emergency shelter and include a diverse population of individuals, including seniors, veterans, substance abusers, immigrants, physically or mentally disabled, and families with children. Homeless individuals may live in vehicles, encampments, abandoned buildings, outdoors, or homeless or transitional shelters. The Homeless Point-In-Time (PIT) Count is a federally mandated annual count of homeless individuals used to evaluate the extent of homelessness. The data provide a snapshot of homelessness on a particular date and time. The 2019 PIT Count for Riverside County determined there were 23 unsheltered homeless individuals in Palm Desert.11 Consistent with the HUD definition, the unsheltered PIT Count enumerates homeless individuals and families who are “living in a place not designed or ordinarily used as a regular sleeping accommodation for humans” (i.e., abandoned buildings, cars, parks, under bridges, bus stops, etc.). This estimate represents 0.04% of the City’s total 2019 population of 52,911 people.12 The actual number of homeless may be higher given that many individuals, particularly women and children, remain hidden for safety or stay in locations where they cannot be seen. It represents a 46.5% decrease over the 2018 PIT Count for Palm Desert (43 individuals). The reduction may be due, in part, to undercounts in earlier years and/or changes in counting and surveying methods, such as increased coverage by more volunteers, that were implemented in 2019. 11 2019 Riverside County Homeless Point-In-Time Count and Survey Report, County of Riverside Department of Public Social Services, page 60. 12 Department of Finance Table E-5, January 2019 estimates. Page 688 TN/City of Palm Desert General Plan/Housing Element Housing Element III-71 Table III-31 Palm Desert Unsheltered Homeless Characteristics, 2019 Number % of Total Race American Indian 2 9% Black 1 4% White 18 78% Multiple Races 1 4% Unknown Race 1 4% Ethnicity Hispanic 3 13% Non-Hispanic 16 70% Unknown Ethnicity 4 17% Gender Male 15 65% Female 8 35% Age Adults (>24 yrs) 20 87% Youth (18-24 yrs) 1 4% Unknown Age 2 9% TOTAL HOMELESS INDIVIDUALS = 23 Source: 2019 Riverside County Homeless Point-In-Time Count and Survey Report, County of Riverside Department of Public Social Services, page 60. As shown in Table III-31, the majority of homeless people in Palm Desert are white (78%), non- Hispanic (70%), male (65%), and adults over 24 years (87%). The following table describes homeless subpopulations in Palm Desert. Of the 15 individuals interviewed, 35% were chronically homeless, 22% had a physical disability, 22% had Post Traumatic Stress Disorder (PTSD), 17% were veterans, and 13% had mental health conditions. Some subpopulations could be higher, but the extent is unknown because 8 individuals were not interviewed for various reasons, including refusal to participate, sleeping, a language barrier, inability to respond, or physical barriers or unsafe site conditions. Page 689 TN/City of Palm Desert General Plan/Housing Element Housing Element III-72 Table III-32 Palm Desert Homeless Subpopulations, 2019 Subpopulation Number1 % of Total Veterans 4 17% Chronically Homeless 8 35% Substance Abuse 2 9% PTSD 5 22% Mental Health Conditions 3 13% Physical Disability 5 22% Developmental Disability 1 4% Victim of Domestic Violence 1 4% Jail release, past 12 months 3 13% Jail release, past 90 days 1 4% 1 Results of interviews with 15 homeless individuals. Actual numbers may be higher as 8 individuals were not interviewed. Source: 2019 Riverside County Homeless Point-In-Time Count and Survey Report, County of Riverside Department of Public Social Services, page 60. The City contributes over $100,000 annually to the Coachella Valley Association of Governments (CVAG) for regional homelessness services. The City is a participant in CVAG’s Homelessness Initiative and was also a participant of the previous Homelessness Strategic Plan, which built Roy’s Desert Resource Center (“Roy’s”) in the western Coachella Valley. The facility opened in December 2009 and provided emergency and transitional shelter and support services for homeless individuals. After the closure of Roy’s in 2017, there was a need for a homeless shelter or navigation center in the western Coachella Valley. Path of Life Ministries and now CVAG operates a program that placed people in permanent housing before addressing issues such as joblessness or behavioral health. Program results were positive, with 81% of the 242 people who exited the program in the first year able to find permanent housing, and all participants who exited the program more than doubling their monthly incomes. 13In late 2019, CVAG initiated an effort to advance the goals of CV Housing First through a collaborative approach called the Coachella Valley Homelessness Engagement & Action Response Team (CVHEART). The program is expected to establish a formal structure for regional homelessness policies and programs, identify funding opportunities for future projects, and expand multi-agency cooperation and participation. In addition to its own efforts to end homelessness, Palm Desert’s membership in CVAG will assure its continued participation in regional efforts. A number of other organizations provide shelter and services to the homeless throughout the Coachella Valley (see Table III-33 for a list of available homeless facilities in the Coachella Valley). Shelter from the Storm, which provides comprehensive services to victims of domestic violence in the Valley, operates its administrative offices in the City. Desert Horizon and Desert Vista permanent supportive housing is a program in the western Coachella Valley managed by Jewish Family Service of San Diego with 18 and 40 beds, respectively. Supportive services, 13 “CV Housing First Program Evaluation: Examining the Clients Served in the First Year: July 2017 to June 2018,” Health Assessment and Research for Communities, September 2018, page 55. Page 690 TN/City of Palm Desert General Plan/Housing Element Housing Element III-73 including living skills, budgeting instruction, case management, employment assistance, food distributions, advocacy, and community referrals and access to benefits, are provided. Residents contribute 30% of their income based on HUD guidelines. Table III-33 Coachella Valley Homeless Facilities and Services Organization Name Facility Name Total Beds Emergency Shelter Coachella Valley Rescue Mission Overnight shelter (families with children, individuals without children) 251 Coachella Valley Rescue Mission Overnight shelter (individuals without children) 49 Martha’s Village and Kitchen Inc. Renewing Hope Emergency Shelter 120 Operation Safe House Desert Emergency Shelter 20 Path of Life Ministries Inc. CVAG Emergency Shelter Project 12 Shelter from the Storm Domestic Violence Emergency Shelter 20 County of Riverside, Desert Healthcare District and Foundation1 Summer Homeless Survival Program (seasonal emergency cooling centers in Cathedral City, Palm Springs, Desert Hot Springs) 90 (30 in each city) Subtotal 472 (year-round) 90 (seasonal) Transitional Housing Operation Safe House Harrison House (youth, young adults) 15 Subtotal 15 Rapid Rehousing Coachella Valley Rescue Mission Rapid Re-Housing 5 Coachella Valley Rescue Mission State-funded Rapid Rehousing 13 Path of Life Ministries Inc. CVAG Rapid Re-Housing 2 Subtotal 20 Permanent Supportive Housing Desert AIDS Project Vista Sunrise Apartments 80 Jewish Family Services Desert Horizon 18 Jewish Family Services Desert Vista 40 Jewish Family Services Permanent Supportive Housing Expansion (new in 2018) 35 Riverside University Health System – Behavioral Health Behavioral Health – Coachella Valley Permanent Housing 25 Subtotal 118 Sources: “The Path Forward: Recommendations to Advance an End to Homelessness in the Coachella Valley,” Barbara Poppe and Associates, November 27, 2018, Appendix 3. 1 dhcd.org. Page 691 TN/City of Palm Desert General Plan/Housing Element Housing Element III-74 The City also addresses homelessness at the local level. It contracts with Riverside University Health System to provide a Behavioral Health Specialist and a Mental Health Peer Support Specialist in Palm Desert. It also contracts with the County of Riverside for a Homelessness Assistance Program in which two staff members offer resources through daily street outreach efforts. The City has awarded CBDG funds to local charities, including Martha’s Village & Kitchen, Coachella Valley Rescue Mission, and Catholic Charities, for the provision of homeless services, such as food, equipment, consumable supplies, and energy upgrades. The City permits homeless shelters in the Service Industrial (SI) zone. There are 344.17 acres of serviced, vacant land in this zone in the City, ranging in size from 1-20 acres. The Service Industrial zone is appropriate for such facilities because these lands are located on transit lines, near commercial and school sites, and in areas where other governmental services are available. The City currently has no requirement for parking for emergency shelters. AB 139 requires that parking be provided for employees of emergency shelters. Program 5.D. requires that the City add this requirement to the Zoning Ordinance in 2021-2022, as part of its annual Zoning Ordinance update. The City allows transitional and supportive housing in all residential districts subject to only those restrictions that apply to other residential uses of the same type in the same zone. The General Plan allows for an additional 8,049 residential units on 610 acres of vacant land in the City, in a range of densities, which will accommodate the City’s need for transitional and supportive housing. Seniors The Coachella Valley has a long-established reputation as a popular retirement destination. In 2018, the City had 17,582 residents over the age of 65, representing 33.7% of the population. These seniors were in a total of 11,302 households. Home ownership data shown in the table below indicates that approximately 22% of seniors are renters, and 78% are homeowners. Table III-34 City of Palm Desert Householders 65 Years and Over, by Tenure Householder Age Owner-Occupied Renter-Occupied Households % Households % Total, City of Palm Desert 14,842 100.0 9,272 100.0 Total, Non-Senior Households 6,018 40.5 6,794 73.3 Total, Householders 65 Years & Over 8,824 59.5 2,478 26.7 65 to 74 years 4,389 29.6 1,124 12.1 75 to 84 years 3,203 21.6 647 7.0 85 years and over 1,232 8.3 707 7.6 Source: American Community Survey 2014-2018 5-Year Estimates, Table B25007 According to the American Community Survey, an estimated 1,590 seniors have incomes below the poverty level, which represents 9.0% of all seniors in the City. The 2020 federal poverty guideline for one person is $12,760. The major source of income for most seniors is Social Page 692 TN/City of Palm Desert General Plan/Housing Element Housing Element III-75 Security, and the average Social Security monthly benefit is $1,503.14 Therefore, a single senior paying 30% of their monthly Social Security income on housing costs would pay $451 toward housing costs. However, Palm Desert median rents are $974 for a one-bedroom unit. A two-person senior household would have $902 available for housing costs, which would be sufficient for a one-bedroom unit. Therefore, Social Security alone cannot adequately cover housing costs for seniors living alone in the City. Table III-35 Senior Incomes Below the Poverty Level Age Group No. of Residents with Income in Past 12 Months Below Poverty Level 65 to 74 years 847 75 years and over 743 Total 1,590 Source: 2014-2018 ACS 5-Year Estimates, Table B17001 Special considerations affecting senior households include income limitations, access to health care and transportation, accommodations for physical disabilities and limitations, and long-term care concerns. Senior housing needs can include low-income apartments, retirement communities, independent living centers, assisted living centers, nursing homes, and hospice care centers. There are seven senior apartment projects in the City which are owned and operated by the Housing Authority, providing 380 units for very low, low and moderate income senior households. Nursing care facilities in the City include the Carlotta, with 192 beds; Manorcare Health Services, with 178 beds; and Monterey Palms, with 99 beds. Numerous senior communities are located in the City, including Atria Palm Desert, Atria Hacienda, Segovia, Palm Desert Senior Living Oahu Cottage, and Fountains at the Carlotta, Legend Gardens, which provide a range of services including medical transport, assistance with housekeeping and personal care, hospice and dementia care, and onsite recreational and social opportunities. Numerous senior support services are provided by various organizations, including those listed in the following table. Table III-36 Senior Resources Organization Services Provided Braille Institute Coachella Valley Neighborhood Center Rehabilitation, enrichment classes, in-home support for the visually impaired The Joslyn Center Health/fitness programs, social events, classes, Wellness Center, food distribution Eisenhower Memory Care Center Adult day center for neuro-cognitive impairments FIND Food Bank Food distribution Hidden Harvest Food distribution Jewish Family Services of the Desert Advocacy, case management services Riverside County Office on Aging Medical case management, counseling, transportation assistance, meals 14 Social Security Administration Fact Sheet, December 2019 Beneficiary Data. Page 693 TN/City of Palm Desert General Plan/Housing Element Housing Element III-76 Table III-36 Senior Resources Organization Services Provided Salvation Army Food distribution, social events, community programs Senior Advocates of the Desert Public benefits and social services assistance, emergency financial assistance SunLine Transit Agency For seniors and disabled residents: Half-Fare Program, Taxi Voucher Program, SunDial paratransit service, bus travel training The City’s Senior Housing Overlay provides flexible development standards for a variety of housing for residents age 55 and over, including attached or detached units for sale or rent and associated recreational facilities. Persons with Disabilities This population includes individuals with mental and physical disabilities that may require affordable housing with convenient access to public transportation and health care services, as well as structural adaptations to accommodate wheelchairs and other assistive devices. Housing needs can include independent home environments, homes with special modifications and design features, supervised apartments, inpatient and outpatient treatment programs, and senior care facilities. Individuals who are unable to work because of disability may require income support, and their limited incomes can severely restrict their ability to pay for housing and living expenses. The 2018 ACS identified 7,901 persons in the City with disabilities, of which 4,593 (58.1%) were persons over the age of 65. Individuals may be affected by one or more types of disability. The table below identifies the number of disabilities, by type, for Palm Desert residents. The most prevalent disabilities are ambulatory difficulties (26.3%) and hearing difficulties (19.5%). Page 694 TN/City of Palm Desert General Plan/Housing Element Housing Element III-77 Table III-37 City of Palm Desert Number of Disabilities, by Disability Type Number of Disabilities Percent of Total Disabilities Disabilities, ages 0-17 Hearing Difficulty 101 0.7% Vision Difficulty 182 1.3% Cognitive Difficulty 204 1.4% Ambulatory Difficulty 42 0.3% Self-Care Difficulty 8 0.1% Independent Living Difficulty * * Subtotal, ages 0-17 537 3.7% Disabilities, ages 18-64 Hearing Difficulty 549 3.8% Vision Difficulty 700 4.9% Cognitive Difficulty 1,170 8.1% Ambulatory Difficulty 1,405 9.8% Self-Care Difficulty 615 4.3% Independent Living Difficulty 1,004 7.0% Subtotal, ages 18-64 5,443 37.8% Disabilities, ages 65+ Hearing Difficulty 2,153 14.9% Vision Difficulty 776 5.4% Cognitive Difficulty 981 6.8% Ambulatory Difficulty 2,347 16.3% Self-Care Difficulty 748 5.2% Independent Living Difficulty 1,423 9.9% Subtotal, ages 65+ 8,428 58.5% Total Disabilities 14,408 100% Total Civilian Non-Institutionalized Population with a Disability 7,901 Source: American Community Survey 2014-2018 5-Year Estimates, Table S1810. * data not provided Facilities that provide specialized accommodations and services for the disabled are located in the City and Coachella Valley region and are identified in the “Seniors” discussion above, and “Persons with Developmental Disabilities” section below. In addition, Desert Vista Permanent Supportive Housing, a HUD-funded program, provides housing and services to 40 homeless individuals with disabilities. Clients pay up to 30% of their income based on HUD guidelines. The California Building Code requires that all new multi-family construction include a percentage of units accessible to persons with disabilities. The City of Palm Desert Building Department requires compliance with these standards as part of the Building Permit review and inspection Page 695 TN/City of Palm Desert General Plan/Housing Element Housing Element III-78 process. The City’s affordable housing projects include units for persons with disabilities. The City has housed between 91 and 188 disabled persons in its properties annually in recent years, varying from year to year. The City adheres to State guidelines regarding handicapped access and promotes the use of principles of architectural design that aid the disabled. The Americans with Disabilities Act (ADA) requires all new multi-family construction to include a percentage of units accessible to persons with disabilities. The City monitors and requires compliance with these standards as part of the building permit review, issuance, and inspection process. The City imposes no special requirements or prohibitions on the development of housing for persons with disabilities, beyond the requirements of the Americans with Disabilities Act. There is no concentration restriction for residential care homes. State and federal law does not permit the City to regulate group homes of 6 or fewer residents. Group homes of 7 or more residents are permitted, with approval of a conditional use permit, in the RE, R-1, R-2, HPR, and PR zones. Zoning Code Section 25.64.050 allows for reasonable accommodations in zoning and land use regulations, policies, and practices when needed to provide an individual with a disability an equal opportunity to use and enjoy a dwelling. Persons with Developmental Disabilities Per Senate Bill No. 812, the Housing Element must include analysis of the special housing needs of individuals with developmental disabilities. A developmental disability is defined by Section 4512 of the Welfare and Institutions Code as “a disability that originates before an individual becomes 18 years old, continues or can be expected to continue indefinitely, and constitutes a substantial disability for that individual.” This includes intellectual disabilities, cerebral palsy, epilepsy, autism, and related conditions, but does not include other handicapping conditions that are solely physical in nature. The California Department of Developmental Services (DDS) implements a statewide system of community-based services for people with developmental disabilities and their families. DDS contracts with the Inland Regional Center (IRC) in Riverside to provide and coordinate local services in Riverside County, including the City of Palm Desert. IRC currently (2021) serves 234 clients who are Palm Desert residents. Housing needs for individuals with developmental disabilities can range from traditional independent living environments, to supervised group quarters, to institutions where medical care and other services are provided onsite. Important housing considerations for this group include proximity to public transportation, accessibility of the home and surroundings, access to medical and other public services, and affordability. A variety of housing options and support services in the Coachella Valley are provided by local and regional service agencies, including the following: • Angel View, a non-profit organization based in Desert Hot Springs, operates 19 six-bed group homes for children and young adults with developmental and physical disabilities. The homes Page 696 TN/City of Palm Desert General Plan/Housing Element Housing Element III-79 provide 24-hour nursing and/or attendant care and can accommodate 100+ individuals at a time. There are 16 homes in the Coachella Valley, including 12 in Desert Hot Springs, 3 in Palm Springs, and 1 in Thousand Palms. • The Inland Regional Center uses person-centered planning when developing a Consumer’s Individual Program Plan (IPP). The IPP outlines the goals developed by the Consumer and their support team, as well as the services and supports they will receive to help achieve those goals. Many of the services/supports listed in the IPP are funded by Inland Regional Center. However, services and supports may also be provided by other agencies, such as the Social Security Administration, school districts, county agencies, etc. • Casas San Miguel de Allende in Cathedral City includes 48 apartment units for individuals with special needs or long-term disabilities. • Canyon Springs in Cathedral City is a State developmental center operated by DDS. It provides residential services, treatment, and job training for up to 55 adults with intellectual and developmental disabilities. Referrals for admission are made by the Inland Regional Center. Each person is assessed and participates in developing and carrying out an Individual Program Plan. Residents have opportunities to participate in a variety of integrated activities in natural environments at home, at work, and in the community. Other local agencies provide additional support services to the developmentally disabled population. Desert Arc, a non-profit organization based in Palm Desert, provides vocational training and employment to adult clients with developmental disabilities in the Coachella Valley and Morongo Basin. It operates on-site businesses at its primary campus in Palm Desert and two smaller workshop facilities. Most clients are placed by the Inland Regional Center. Of its 695 clients in 2019, 71 are Palm Desert residents. The City has a long-standing relationship with Desert ARC. During the 2014-2021 planning period, the City awarded it approximately $201,000 across four projects for various ADA facility improvements. The City is working with prospective developers to develop Arc Village, an entitled project that proposes 32 one-bedroom and 4 two-bedroom affordable housing units, a community center, swimming pool, and recreational space for special needs adults on the Desert Arc campus. The project would offer proximity to transit, Desert Arc, and its services and job opportunities. The City continues to work to facilitate completion of this project. Through its building permit review and inspection process, the City adheres to the Americans with Disabilities Act and California Building Code, which require that all multi-family development include a percentage of units that are accessible and “barrier-free” to disabled residents. The City will continue to coordinate with the Inland Regional Center and other appropriate agencies and organizations that serve this population. The City will continue to encourage developers to reserve a portion of affordable housing projects for the disabled, including those with developmental disabilities, and will continue to identify and pursue funding sources for special needs housing. Extremely Low-Income Households Extremely Low-Income (ELI) households are defined by HCD as those which earn less than 30% of the area median income (AMI). ELI households are a subset of the very low-income household category in a region. The AMI for a 4-person household in Riverside County is $75,300. ELI Page 697 TN/City of Palm Desert General Plan/Housing Element Housing Element III-80 household incomes are defined by HCD and HUD as those earning less than $26,200.15 These households are sensitive to unexpected changes in income and expenditures and typically require assistance for housing.16 Existing Needs Comprehensive Housing Affordability Strategy (CHAS) data are compiled by HUD to evaluate housing problems and needs, particularly for low income households, based on Census data. According to the latest CHAS data, 2,815 households (11.9% of total households) in Palm Desert are considered extremely low-income. More than half (55%) of ELI households are renters. Of all ELI households, the majority (82.6%) experience housing problems, including incomplete kitchen and plumbing facilities, overcrowding and severe overcrowding, and cost burden greater than 30% of income (overpayment). Nearly 82% are in overpayment situations, and 73.2% are in severe overpayment situations in which housing costs are greater than 50% of household income. Table III-38 Housing Problems for Extremely Low-Income Households Owners Renters Total Total Number of ELI Households 1,270 1,545 2,815 Percent with any housing problems* 79.5% 85.1% 82.6% Percent with Cost Burden >30% of income 79.5% 83.5% 81.9% Percent with Cost Burden >50% of income 68.9% 76.7% 73.2% Total Number of Households 14,270 9,455 23,730 * housing problems include incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room (overcrowding), and cost burden greater than 30% of income. Source: U.S. Department of Housing and Urban Development, CHAS, based on the 2012-2016 ACS. Projected Needs To calculate projected ELI housing needs, the City assumed 50% of its very low income Regional Housing Need Assessment (RHNA) consists of ELI households. From its very low income need of 675 units (see Table III-38), the City has projected a need of 337 units for ELI households. Housing Options Currently, more than 28% of the units within the City-owned affordable housing portfolio are designated for extremely low-income households. Extremely low income households are also eligible to receive rental assistance through the County of Riverside Housing Authority’s Housing Choice Voucher (Section 8) program. Small ELI households may also find affordable housing in Single Room Occupancy (SRO) hotels, accessory dwelling units (ADUs), and guest houses, which are typically affordable options. SROs are permitted in the SI zoning district with a Conditional Use Permit. ADUs are permitted in the RE, R-1, R-2, R-3, HPR, and PR zoning districts. Guest dwellings are permitted in the RE, R-1, R-2, HPR, and PR zoning districts. 15 Per HUD, the Extremely Low Income (ELI) income limit is the greater of either: 1) 60% of Very Low Income limit ($37,650), which equals $22,590, or 2) poverty guideline established by Dept. of Health and Human Services (HHS), which equals $26,200. 16 Palm Desert Housing Authority follows HCD requirements (not HUD) for ELI households. Page 698 TN/City of Palm Desert General Plan/Housing Element Housing Element III-81 Large Households Large households (those with 5 or more people) require larger homes with more bedrooms and may find it difficult to locate adequate and affordable housing if there is a limited supply of larger units. The cost of larger homes is typically higher than smaller units, and large families can experience a higher cost burden associated with housing. The 2018 ACS indicates there were 1,013 households with five or more persons in the City, which constitutes 4.2% of all households. This represents a 5.9% decrease from year 2011 (1,076 households). Of large households, 411 (40.6%) are owners and 602 (59.4%) are renters. ACS also identified a total of 2,446 housing units with 4 or more bedrooms, or 10.2% of all housing units in the City. This may suggest that there are generally a sufficient number of larger housing units to accommodate larger families. Table III-39 City of Palm Desert Household Size, by Tenure Household Size Owner-Occupied Renter-Occupied Households % Households % 1 person 4,897 33.0% 3,803 41.0% 2 persons 7,208 48.6% 3,108 33.5% 3 persons 1,602 10.8% 1,110 12.0% 4 persons 724 4.9% 649 7.0% 5 persons 302 2.0% 269 2.9% 6 persons 94 0.6% 200 2.2% 7 persons or more 15 0.1% 133 1.4% Total Households 14,842 100.0% 9,272 100.0% Total Households with 5+ Persons 411 2.8% 602 6.5% Source: American Community Survey 2014-2018 5-Year Estimates, Table B25009 Table III-40 City of Palm Desert Number of Bedrooms, by Tenure No. of Bedrooms Owner-Occupied Renter-Occupied Total Occupied Units No. of Units % No. of Units % No. of Units % 0 bedrooms 122 0.8% 572 6.2% 694 2.9% 1 bedroom 160 1.1% 2,511 27.1% 2,671 11.1% 2 bedrooms 5,838 39.3% 4,319 46.6% 10,157 42.1% 3 bedrooms 6,492 43.7% 1,654 17.8% 8,146 33.8% 4 bedrooms 1,926 13.0% 216 2.3% 2,142 8.9% 5+ bedrooms 304 2.0% 0 0.0% 304 1.3% Total 14,842 100.0% 9,272 100.0% 24,114 100.0% Source: American Community Survey 2014-2018 5-Year Estimates, Table B25042 Page 699 TN/City of Palm Desert General Plan/Housing Element Housing Element III-82 Despite the number of 4+-bedroom dwelling units in the current housing stock, renters occupied the majority (77.3%) of overcrowded units. Only 216 of 2,446 units with 4 or more bedrooms are rental units, indicating a need for additional large rental units. Prices for larger units tend to be affordable only to moderate and above moderate income households. Large, very low income households may find it difficult to find affordable and adequate housing. The City implements a number of housing programs to assist with finding adequate housing, including the provision of affordable housing units, mortgage and home ownership guidance, and home rehabilitation programs. Female-Headed Households Female-headed households can experience lower incomes, higher living expenses, higher poverty rates, and low rates of homeownership. Finding adequate and affordable housing is a high priority. Special considerations for this population include proximity to schools, childcare, employment, and health care. As shown in Table III-6, there are 2,858 single-parent-headed family households in Palm Desert, or 11.9% of all households. Male-headed family households comprise 4.3% of all households, and female-headed family households comprise 7.6%. The number of female-headed family households increased compared to 2010 (1,370 female-headed, 5.9% of total family households). ACS data from 2018 show of the estimated 1,828 households with a female householder (no husband present) in the City, approximately 41.3% had children under 18 years of age. Over one- third (34.8%) of all families with incomes below the poverty level are female-headed households. Table III-41 Female-Headed Household Characteristics Number Percent Total Households 24,114 100% Female-Headed Households, no spouse/partner present 1,828 7.6% Female-Headed Households with own children under 18 755 - Female-Headed Households without children under 18 1,073 - Total Families, Income in the Past 12 Months Below Poverty Level 2,098 100% Female Householders, Income in the Past 12 Months Below Poverty Level 731 34.8% Source: American Community Survey 2014-2018 5-Year Estimates, Table DP02; ACS 2018 Supplemental Estimates Detailed Table K201703 The City’s continued implementation of affordable housing projects, public outreach efforts on fair housing issues, and efforts to maintain affordability restrictions on affordable units will serve those female-headed households requiring housing assistance. Page 700 TN/City of Palm Desert General Plan/Housing Element Housing Element III-83 Affordable Units at Risk There are 67 restricted ownership units in the City which are at risk of losing their affordability restriction. These units were built or rehabilitated by private parties, such as Habitat for Humanity and Building Horizons through various programs in the past or are within existing projects. These units are single family homes and mobilehomes distributed throughout the City. None of the currently affordable housing apartments in the City are at risk of losing affordability restrictions during or within 10 years of the planning period. Maintenance of at-risk ownership housing units as affordable will depend largely on market conditions, the attractiveness of financial incentives, if warranted. Because all 67 of the ownership units are individually owned, controlling and maintaining affordability is particularly difficult. The City will, however, be required to release the restriction when sales occur, and has an opportunity at that time to renew affordability covenants. Program 3.C. addresses the preservation of these units. Riverside County Income Limits Income limits for affordability are established annually on a regional basis by the Department of Housing and Community Development. Table III-42 provides the current (2020) income limits applicable in Palm Desert. The median household income for a family of four in 2020 is $75,300. Table III-42 Riverside County Housing Program Income Limits 2020 Number of Persons in Family Income Category 1 2 3 4 Extremely Low $15,850 $18,100 $21,720 $26,200 Very low $26,400 $30,150 $33,900 $37,650 Lower $42,200 $48,200 $54,250 $60,250 Moderate $63,250 $72,300 $81,300 $90,350 Median $52,700 $60,250 $67,750 $75,300 Source: HCD 2020 State Income Limits Households Overpaying for Housing When a household pays more than 30% of its income toward its housing expenses, it is considered to be overpaying. The Comprehensive Housing Affordability Strategy (CHAS) database, provided by HUD and based on American Community Survey data, describes the number of households, by income, with housing cost burdens. The latest CHAS data for the 2013-2017 period for Palm Desert are shown in the following table. Of all owner households, 35.6% are overpaying for housing, and 18.0% are severely overpaying. The percentages are higher when analyzing lower- income households as a group. Of all lower-income owner households, 67.8% are overpaying, and 44.7% are severely overpaying. Page 701 TN/City of Palm Desert General Plan/Housing Element Housing Element III-84 The patterns are similar for renter households. Of all renter households, 48.2% are overpaying, and 24.7% are severely overpaying. Of all lower-income renter households, 77.0% are overpaying, and 46.1% are severely overpaying. Table III-43 Overpayment by Income Level, 2013-2017 Income Category1 Owners Renters Households Percent Households Percent Household Income less than or = 30% HAMFI: 1,270 1,545 Households overpaying 1,010 79.5% 1,290 83.5% Households severely overpaying 875 68.9% 1,185 76.7% Household Income >30% to less than or = 50% HAMFI: 1,195 1,215 Households overpaying 875 73.2% 1,125 92.6% Households severely overpaying 515 43.1% 725 59.7% Household Income >50% to less than or = 80% HAMFI: 2,020 2,250 Households overpaying 1,155 57.2% 1,445 64.2% Households severely overpaying 615 30.4% 400 17.8% Subtotal: All lower-income households 4,485 5,010 Subtotal: All lower-income HH overpaying 3,040 67.8% 3,860 77.0% Subtotal: All lower-income HH severely overpaying 2,005 44.7% 2,310 46.1% Household Income >80% to less than or = 100% HAMFI: 1,215 875 Households overpaying 530 43.6% 320 36.6% Households severely overpaying 240 19.8% 20 2.3% Household Income >100% HAMFI: 8,575 3,570 Households overpaying 1,505 17.6% 380 10.6% Households severely overpaying 325 3.8% 10 0.3% Total Households 14,270 9,455 Total Households Overpaying 5,075 35.6% 4,560 48.2% Total Households Severely Overpaying 2,570 18.0% 2,340 24.7% 1 HAMFI = HUD Area Median Family Income “Overpaying” is defined as spending >30% of gross household income on housing costs. “Severely overpaying” is defined as spending >50% of gross household income on housing costs. Source: U.S. Dept. of Housing and Urban Development, CHAS data for Palm Desert, based on 2013-2017 ACS. For all income levels, the 2013-2017 CHAS Databook identifies 5,075 owner households and 4,560 renter households paying 30% or more for housing, for a total of 9,635 households overpaying for housing. Affordability of Housing In order to determine the level of affordability for market housing in Palm Desert, a comparison of for-sale and for-rent market housing was undertaken. Table III-44 illustrates that a moderate income household of four in Palm Desert is able to find rental housing well within its ability to pay, but cannot afford to buy a median priced home. The table demonstrates that while rental units are affordable to moderate income households in the City, purchased units may not be affordable to these households. Page 702 TN/City of Palm Desert General Plan/Housing Element Housing Element III-85 Table III-44 Affordability of Housing, 2021 Type of Housing Cost Ownership Rental Median Single- Family Purchase Price $485,000 N/A Median Mortgage Costs (PITI) $2,780 N/A Rental Rate N/A $1,260 (median) $1,691 (3- bedroom) 30% of Moderate Household Income $2,259 $2,259 Affordability Gap $521 No Gap ($568-$999 positive) Regional Housing Needs Assessment Allocation The State and Southern California Association of Governments (SCAG) develop housing allocations for each Housing Element planning period. The Regional Housing Needs Assessment (RHNA) is a minimum projection of additional housing units needed to accommodate projected household growth of all income levels during the upcoming planning period. For the 2022-2029 planning period, Palm Desert’s share of the RHNA is 2,790 housing units, segmented into five income categories as shown below. Table III-45 RHNA by Income Category, 2022-2029 Units Extremely Low Income 337 Very Low Income 338 Low Income 460 Moderate Income 461 Above Moderate Income 1,194 Total Units Needed 2,790 Page 703 TN/City of Palm Desert General Plan/Housing Element Housing Element III-86 Quantified Objectives Housing Element law requires the City to estimate the number of affordable units likely to be constructed, rehabilitated, or conserved/preserved, by income level, during the upcoming (2022- 2029) planning period. As shown in the following table, the City reasonably expects that 2,790 housing units will be provided through new construction, and 67 through conservation. Table III-46 Quantified Objectives Matrix, 2022-2029 Income Category Activity Extremely Low Very Low Low Moderate Above Moderate Total New Construction 337 338 460 461 1,194 2,790 Rehabilitation 67 67 Conservation 67 67 LAND INVENTORY The City’s Regional Housing Needs Assessment for the 2022-2029 planning period projects that a total of 2,790 housing units will be needed in the City. Of these, 1,194 will be for above moderate income households, and 461 will be for moderate income households. In addition, the City expects to conserve a total of 67 units affordable to low income households, and rehabilitate 67 units with substandard sanitary facilities (see Quantified Objectives, above). Above moderate income units are expected to be market-driven, single-family homes traditionally built in the City. More than adequate approved projects are available for above moderate units, as shown in Table III-48. Moderate income units are expected to be a combination of market rate rental units and assisted units, based on the analysis provided in Table III-44, which shows that rental units are affordable to moderate income households, but ownership units are not. Two moderate income sites, shown with an asterix in Table III-47, are included in the Vacant Land Inventory to demonstrate that there is sufficient capacity for these units. The sites are identified as “DD” and “H” in the Table and on the land inventory map, and will result in 574 units, which exceeds the RHNA allocation of 461 units. Site DD (The Sands, described below) is entitled. Site H has completed a pre-application review, and is currently being processed. The remaining 1,135 housing units required for RHNA are for extremely low, very low, and low income households. The City has identified vacant land that will allow the development of 1,764 units for extremely low, very low and low income households, as shown in Table III-47. These lands include a combination of approved projects, projects currently being entitled, and vacant lands which all have the Housing Overlay District. Page 704 TN/City of Palm Desert General Plan/Housing Element Housing Element III-87 Land in the southern portion of the City is mostly built out, with only infill development opportunities available at higher densities. The Land Use Element increased densities and provides for the redevelopment of the downtown, including the San Pablo area, with a particular focus on more urban housing environments in flanking neighborhoods. The Land Use Element also includes the University Park area, which is designed to accommodate higher density. Table III-47 lists the available vacant lands in the City by Assessor’s Parcel Number and provides the size of each parcel and the potential number of units that could be developed on each. All lands shown in the Table have all utilities available immediately adjacent to them, including water, sewer, electricity, and natural gas. As shown on the corresponding map, inventory lands are geographically distributed throughout the City and not concentrated in any areas. As such, they affirmatively further fair housing principles. Lands provided in the inventory have been calculated at a density of 15 to 20 23 units per acre. Assuming The density range assumes that 80% intensity will be achieved based on: an average unit size of 1,000 square feet, 28 units per acre can be achieved with 3-story buildings, which is the current height limit in the Planned Residential (PR) zone. This also assumes common area open space in compliance with Zoning requirements, and surface parking. As this zone allows building coverage of 40%, there is more than sufficient space to accommodate the density assumed in the inventory. Further, the density assumptions are conservative compared to typically built densities in each of the zones. The most recent affordable housing projects built in the City were constructed at densities of 15 to 28 units per acre, including Carlos Ortega Villas, at 13 units per acre , and the City currently has entitled or proposed affordable housing projects at densities of 17.5 to 27 units per acre on parcels of 10 acres or more: • Tthe Sands, Site DD: 388 units on 17.5 acres (22/acre); • Pacific West, Site B, 270 269 units on 12 acres (23/acre); • Millennium private site, and 2 sites at Millennium, Site H, 330 units on 15 acres (22/acre), and • Millennium City site, Site C, 240 units on 10 acres, 24/acre). As described on page III-46, Infrastructure Requirements, water, sewer and dry utilities are all in place throughout the City, immediately adjacent to all the sites listed in Table III-47. The current pattern of projects being proposed in the City also shows that lLarge sites are not constrained from development, and are being developed currentlyas all four currently proposed projects listed here are on sites of 10 acres or larger. In addition, when the City adopted the Housing Overlay District, it placed it on all Inventory sites to increase capacity and allow higher densities on these properties. Page 705 TN/City of Palm Desert General Plan/Housing Element Housing Element III-88 Table III-47 Vacant Land Inventory of Sites for Extremely Low, Very Low, Low and Moderate Income Units Map Key Assessor’s Parcel No. GP Zoning (all HOD)** Acreage Allowable Density Realistic Density Potential Units Vacant Entitled Sites DD 624-040-037 Town Center Neighborhood P.R.-17.5 17.66 17.5 17.5 78 DD* 624-040-037 Town Center Neighborhood P.R.-17.5 17.66 17.5 17.5 310 E 694-520-013, - 014, -015, -017, -019 and -020 Small Town Neighborhood; Employment Center P.R.-19 8.05 19 18 21 Subtotal Entitled Sites 409 Vacant Sites in the Entitlement Process LL 627-122-013 and -003 Small Town Neighborhood R-2, HOD 1.43 3 to 10 20 28 B 694-310-006 Town Center Neighborhood P.R.-20 12 of 68.2 4 to 20 22.5 269 H 694-190-087 Town Center Neighborhood P.R.22 14.97 22 22 44 H* 694-190-087 Town Center Neighborhood P.R.22 14.97 22 22 286 C 694-120-0285 Town Center Neighborhood; Suburban Retail Center P.C.-(3), FCOZ 10 of 20.18 7 to 40 24 240 KK 622-370-014 Public Facility/Institu tional P 1.84 N/A N/A 36 Subtotal Sites in Entitlement Process 903 Vacant Sites A 685-010-005 Regional Retail P.C.-(3), P.C.D. 15 of 64.26 10 to 15 14 200 D 694-130-017 &- 018 Town Center Neighborhood P.R.-22 10.95 22 20 219 F 694-510-013 Town Center Neighborhood P.R.-22 16.32 22 20 326 PP 624-441-014 through -022 Small Town Neighborhood P.R.-6 1.31 3 to 10 8 10 QQ 624-440-032 through -036 Small Town Neighborhood P.R.-6 0.72 3 to 10 8 6 T 627-041-010 through 013, - 29, 031 - 033 Small Town Neighborhood/ Neighborhood Center R-3 1.36 7 to 40 15 20 Subtotal Vacant Sites 761 Total All Vacant Sites 2,093 * Moderate Income Site ** All sites in this Table have been assigned the Housing Overlay District. Page 706 TN/City of Palm Desert General Plan/Housing Element Housing Element III-89 Commercial Designated Sites Sites C and A are proposed on lands currently designated for Planned Commercial. In the case of Site C, the land is owned by the City, and is currently under contract for development of 240 affordable housing units for very low and low income households (please see discussion below, Pending Projects). This site has the HOD overlay, which allows parking reductions and fee waivers for the development of affordable housing units. Site A is part of a larger holding owned by a private party. The developer is preparing a Specific Plan which will include a minimum of 200 units affordable to very low and low income households. The Specific Plan, as allowed by State law, will include site-specific zoning standards to allow the development of these units. The Specific Plan submittal is expected in 2021-2022. Small Sites As described below, Site LL is City-owned, and will be developed for 28 units affordable to very low and low income households. The City will consolidate the lots when development occurs. As shown in the Table, approximately 2,449 093 units could be constructed on lands which are currently available for multiple family residential development. As several of these sites are larger, Program 1.F has been provided to encourage the subdivision of these sites to facilitate multi-family development, even though currently proposed projects for affordable housing in the City are on sites of 10 to 15 acres. This inventory accommodates land needed for very low, low and moderate income households, although as described above, moderate income households can afford market rate rentals in the City currently. According to the Fair Housing analysis (see “Existing Affordable Housing Programs” section), the City has a low segregation level, no racially or ethnically concentrated areas of poverty, equal access to opportunity, and no disproportionate housing needs. The sites identified above will not exacerbate any such conditions. Pending Affordable Housing Developments The following affordable projects are either entitled or proposed and anticipated to be built during the planning period. Entitled Projects • The Sands Apartments (Site DD) on Hovley Lane is approved for a total of 388 multi- family rental units. Of those, 78 are required to be affordable for very low income households through an approved Development Agreement that requires that the units be deed restricted. The balance are expected to be market units which will be affordable to moderate income households. • Palm Desert 103 (Site E) will include 21 one and two-bedroom rental units reserved for moderate income residents required by conditions of approval, which require that the units be deed restricted. The project will be developed by a private party. • In May 2020, the City conveyed 14 vacant parcels on Merle Street to the Coachella Valley Housing Coalition (CVHC) for the development of 14 detached single-family, self-help ownership homes for very low and low income households. CVHC will deed restrict the homes when they are developed. These lots are shown on the inventory as sites PP and QQ. Page 707 TN/City of Palm Desert General Plan/Housing Element Housing Element III-90 Projects Pending Entitlements • Sagecrest Apartments (Site LL) will be rebuilt into a minimum of 28 units for very low and low income households with the implementation of the Housing Overlay. The Housing Authority is currently seeking proposals for this project. This Housing Authority project is located at the corner of Santa Rosa and San Pasqual. The project will require a Precise Plan approval when the developer is selected. The units will be deed restricted for very low and low income households, and renters will be required to show proof of income. The DDA for the project includes a requirement that the units be built by 2024. • Pacific West (Site B) The Successor Agency to the Palm Desert Redevelopment Agency (SARDA) is under contract for the sale of 10± acres immediately east of the Sherriff’s station on Gerald Ford Drive, for the development of 270 269 units affordable to be deed restricted for very low and low income households. The project was approved by the Planning Commission in July of 2021. The developer is actively involved in securing CDLAC/TCAC and other funding, and expects to begin construction in 2023. • Millennium Private site (Site H) will include 66 affordable rental units with 44 to very low and low income and 22 to moderate, within a 330 unit market rate/moderate income project on 10 acres. The affordability of the very low, low and moderate income units have been secured in an approved Development Agreement, and will require deed restrictions. The project is proposed by a private housing developer. The project is being designed, and a Precise Plan application is expected in October of 2021. • Millennium City site (Site C) The City is currently under contract for the development of 240 units affordable to very low and low income households on 10 acres of land. The units will be deed restricted. The project will be developed by a private housing developer on City land. Entitlement applications are expected in 2022, financing will be secured in 2023. and construction is expected in 2024. • Arc Village (Site KK) will include 36 affordable rental units, including 32 one-bedroom units and 4 two-bedroom units, for special needs adults adjacent to the Desert Arc campus. The project will be developed by a private party. This project will require a Previse Plan application. These entitled and pending entitlement projects will result in a total of 716 units affordable to very low and low income households, and 596 units affordable to moderate income households. With completion of these projects, the City will need to accommodate an additional 419 units for very low and low income households, and would have an excess of 135 moderate income units when all entitled and pending entitlement sites in Table III-47 are developed. Table III-47 also shows that the City has capacity for 761 units on vacant sites, almost double the 419 needed during the planning period to complete the RHNA. Table III-48 provides a list of entitled projects which will be available for market housing, to accommodate the City’s RHNA for the above moderate income category. These projects include plans for single family homes, condominiums and townhomes, and apartments. These projects are Page 708 TN/City of Palm Desert General Plan/Housing Element Housing Element III-91 in various stages of development. Dolce is under construction. Stone Eagle, Big Horn Mountains, Big Horn Canyon, and Ponderosa Homes lots are recorded and only single family building permits are required. In the case of Montage, the project was approved in May, 2021 and is currently proceeding to record the Tract Map and secure grading and building permits. In the case of University Park, Millennium Apartments, Ponderosa Apartments, Precise Plan applications are required to allow development. University Park, the Santa Rosa Golf Course, the Catavina site and Villa Portofino require further subdivision and Precise Plan approvals. The various stages of development allow for staged development throughout the planning period. Table III-48 Vacant Above Moderate Income Sites Map Key Project Name Remaining Lots Projected Units 1 Stone Eagle 25 25 2 Big Horn Mountains 10 10 3 Big Horn Canyon 31 31 4 University Park – Phase I 1,069 1,069 5 University Park – Phase II 1,291 1,291 6 University Park – Phase III 196 196 7 Millennium Apartments 330 264 8 Former Santa Rosa Golf Course 300 300 9 Former Catavina Site 159 159 11 Villa Portofino – Lot 1 145 145 12 GHA Montage 63 63 13 Ponderosa Homes 99 80 14 Ponderosa Apartments 140 140 15 Dolce 127 127 16 Monterey Ridge 202 202 Total Units 4,187 4,102 The map below provides the location of the sites shown in the inventory tables. Page 709 TN/City of Palm Desert General Plan/Housing Element Housing Element III-92 Page 710 TN/City of Palm Desert General Plan/Housing Element Housing Element III-93 PUBLIC PARTICIPATION The first workshop held for the Housing Element update was with the Palm Desert Housing Authority Housing Commission on January 6, 2021. The Commission’s discussion centered on the City’s RHNA, the sites on the inventory, and the provision of units for seniors. The Commissioners indicated that senior units were needed at affordable rents, and that the upcoming planning period seemed to be well planned for, given the projects that were moving forward. The City made concerted efforts to reach all segments of the population for input into the Housing Element update. On January 21, 2021, the City held a workshop for the community. A mix of affordable housing developers, public agencies, interested parties and individuals were invited via email. Formal invitations were sent to 21 organizations, including Habitat for Humanity, Community Housing Opportunities Corp., Lift to Rise, and the Coachella Valley Housing Coalition. In addition, the workshop was advertised on the City’s web site, and in the Desert Sun newspaper. Accommodation was provided for persons requiring hearing or visual assistance for the virtual workshop, although none was requested from participants. Seventeen (17) people attended, and had an active and productive conversation. The workshop began with a short presntation, but was structured as a conversation among attendees, so that they could speak freely about issues of concern. Affordable housing developers, including CVHC and CHOC, indicated a strong desire to work with the City on projects, and clearly expressed their concerns regarding the funding of projects, which require too many funding sources in recent years. Strong support was expressed for the City’s increased density to 40 units per acre. The City concurs with developers’ concerns about funding sources, and has included programs for projects in this Element where the City will leverage its land to help with private developers’ funding applications. However, because of the Legislature’s removal of housing set aside for affordable housing, the City’s participation in projects will be more limited during the planning period, and the City’s focus in programs has shifted to work with private parties to construct the required units. A City Council study session was held on March 25, 2021, to discuss the status of the Housing Element update and the recently adopted RHNA allocation. The City Council listened to a staff- led presentation, and asked questions about various projects and sites on the City’s inventory. The focus of development in the University Park area for student and faculty housing for the future expansion of the universities in this area was considered a top priority. The Housing Element was posted on the City’s website in June of 2021. The City also held an additional Study Session with the City Council on amendments to the Housing Element on September 9, 2021. Following that Study Session, the revised Draft Element was posted on the City’s website, and notices sent to community organizations, all of the participants in the City’s previous workshops, and all those to whom workshop invitations had been sent to invite comments on the revised Element, prior to its resubmittal to HCD. No comments were received during the comment period. Finally, public hearings were held before the Planning Commission and City Council for the adoption of the Element, in ?? and ?? of 2021. Page 711 TN/City of Palm Desert General Plan/Housing Element Housing Element III-94 GOALS, POLICIES AND PROGRAMS Goal 1 A variety of housing types that meet all of the housing needs for all income groups within the City. Goal 2 The preservation and maintenance of the high quality of the City’s affordable housing supply. Policy 1 New affordable housing projects shall be encouraged in all areas of the City. Special attention will be made to distributing the units so that large concentrations of affordable housing in any one area are avoided. Program 1.A The City shall work with affordable housing developers, non-profit agencies and other stakeholders to implement the following affordable housing projects for extremely low, very low, low and moderate income households during the planning period. • 21 units at Palm Desert 103 (Site E): annually contact the landowner and provide them with current City programs and incentives for the construction of the remaining units within the project. • 36 units at Arc Village (Site KK): continue to work with Desert ARC and affordable housing developers to secure funding for these units for developmentally disabled persons. The City will participate in the preparation of applications for State funding and reinstate funding assistance when an application is prepared. • 66 units at Millennium (Site F): the City will continue to work with the developer to process the pending entitlements and finalize the affordable housing covenants consistent with the existing Development Agreement. The City will annually contact the land owners, promote the projects to the development community, and continue to extend approvals, as appropriate, to implement these projects. Responsible Agency: Community Development Department and Housing Authority Schedule: 2022-2027Continuous as these projects move forward Page 712 TN/City of Palm Desert General Plan/Housing Element Housing Element III-95 Program 1.B The City shall pursue the planning and implementation of the following projects for extremely low, very low, low and moderate income households during the planning period. The City will utilize public-private partnerships, grants and third party funding for these projects, and density bonus incentives. • 240 units at Millennium City Site (Site C): the City shall enforce the terms of its existing agreement with the developer of this project, including maintaining project schedules and expediting processing of applications. A minimum of 15% of the units will be reserved for extremely low income residents. • 28 units at Sagecrest Apartments (Site LL): the City will complete the RFP process in 2022, and establish an agreement with the successful developer for construction of the units by 2025. A minimum of 15% of the units shall be reserved for extremely low income residents. • 270 269 units at Gerald Ford, west of Portola (Site B): the City will maintain the schedule established in the existing agreement with the developer, participate in funding applications, and participate in the funding through the existing land sale agreement, to reach completion of construction by 2024. SARDA will issue RFPs and secure developers for these project, and negotiate timelines for development of the units during the planning period. The City will also write letters of support and lobby in favor of funding for these projects where appropriate. Responsible Agency: Community Development Department and Housing Authority Schedule: As described above, 2022-2025 Program 1.C The City shall encourage and facilitate the development by private parties of the following projects for extremely low, very low, low and moderate income units: • 200 units at Key Largo (Site A): the City will continue to work with the land owner in the completion of entitlement applications for the site, including the provision of Density Bonus incentives, fee waivers and other incentives as appropriate. • 78 units at the Sands (Site DD): the City will maintain contact with the land owner and participate in funding efforts as the developer applies for TCAC and other funds for the project. • 320 units within the University Neighborhood Specific Plan area (Site I/5): the City will maintain contact with the landowner and provide incentives, including Density Bonus and fee waivers, as appropriate, to encourage development of these properties for housing affordable to very low and low income households.. The City shall annually contact the owners/developers of these lands and review with them the incentives and financing options available through State and federal loan and grant programs, and local non-profit agencies to assure that all potential financial mechanisms are being considered for the project(s). The City will offer incentives, including Density Bonus, fee waivers and reduced building permit fees for those projects including a minimum of 15% of units affordable to extremely low income households. Responsible Agency: Planning Department Schedule: 2022-2029 Page 713 TN/City of Palm Desert General Plan/Housing Element Housing Element III-96 Program 1.D The City shall continue to implement the Self Help Housing program when funds are available. The City will work with agencies such as Habitat for Humanity and Coachella Valley Housing Coalition to identify funding and the location of these units. This includes the construction of the 14 homes on Merle, secured with CVHC. The City will implement the provisions of its agreement with CVHC to assure the completion of the 14 self-help units by 2024. Responsible Agency: Housing Authority Schedule: 2022-2024 for Merle lots, annually throughout planning period Program 1.E The City shall maintain its inventory of sites zoned for PR-20 or more, and R-3, and shall encourage the incorporation of extremely low, very low, low and moderate income housing units into these projects as they are brought forward. These sites are included in the Vacant Land Inventory (Table III-47), have been assigned the Housing Overlay District, and will be required, consistent with AB 330, to meet the densities cited in the Inventory. The City will post Table III- 47 on its website immediately upon adoption of the Element. The City shall, as part of its Annual Progress Report to HCD, analyze whether any Inventory site has been developed at a density less than that shown in Table III-47, and how any reduction was offset to assure that the City’s RHNA allocation can be met (no net loss). Responsible Agency: Planning Department. Schedule: As project applications are submitted2022 for posting of Table III-47, April of each year for Annual Progress Report. Program 1.F Although the affordable housing projects currently approved or being entitled in the City occur on parcels of 10 acres or more, tThe City will encourage further land divisions resulting in parcel sizes that facilitate multifamily development affordable to lower income households in light of state, federal and local financing programs (50-100 units) as development proposals are brought forward. The City will discuss incentives available for land divisions (2-5 acres) encouraging the development of housing affordable to lower income households with housing developers as proposals are brought forward. The City will offer incentives for land division encouraging the development of affordable housing including, but not limited to: • priority to processing subdivision maps that include affordable housing units, • expedited review for the subdivision of larger sites into buildable lots where the development application can be found consistent with the Specific Plan, • financial assistance (based on availability of federal, state, local foundations, and private housing funds). Responsible Agency: Planning Department Schedule: As projects are proposed Program 1.G The City shall establish a pilot program to encourage development of ADUs and JADUs that are dedicated as affordable units and made available for rent to low-income households for at least 30 years. The City program could include an incentive such as floor area bonus for the property owner; reductions in building plan check fees, and/or inspection fees. Page 714 TN/City of Palm Desert General Plan/Housing Element Housing Element III-97 Responsible Party: Planning Department Schedule: Develop and publish program on City website: 2021-2022, with regular Zoning Ordinance update Program 1.H The City shall establish an SB 35 planning application and process that contains the requirements of the law, the required objective development standards, and the processing requirements for these projects. Responsible Agency: Planning Department. Schedule: Fiscal Year 2021-2022 Policy 2 The City shall encourage the rehabilitation of existing housing units through a variety of programs. Program 2.A The City shall consider CDBG funds for the Home Improvement Program for single family homes by providing grants and low interest loans to program participants, with a focus on the 67 units identified as having substandard kitchen and bath facilities, and continuing to refer residents to the existing HVAC replacement program offered by SCE. The HIP program will be provided to the extent that funding is available, to up to five eight households each year, and referrals made for the SCE replacement program as they are received, on average to 7 residents annually. Responsible Agency: Housing Authority Schedule: Annually as funds are availablewith adoption of CDBG program funding Program 2.B The City shall develop a program for homeowner assistance for the rehabilitation of older and substandard housing units. Funding sources to be considered include CDBG, HIP, and other programs as identified. Responsible Agency: Community Development Department Schedule: Annually as funds are available Policy3 The City shall preserve existing affordable housing units. Program 3.A The Housing Authority shall continue to subsidize affordable housing units it owns now and in the future using operating revenues. Responsible Agency: Housing Authority Schedule: Annually in the Housing Authority Budget Program 3.B The Housing Authority shall maintain the existing resale restrictions and other subsidies on 301 ownership units. Responsible Agency: Housing Authority Schedule: Throughout the planning period Page 715 TN/City of Palm Desert General Plan/Housing Element Housing Element III-98 Program 3.C The City will research and identify ownership of the 67 ownership units at risk of losing affordability covenants during or immediately following this planning period, and work with owners to extend these covenants. Incentives could include: • financial assistance for the extension of covenants. • Offer HIP major rehabilitation loans to homeowners to secure extended restrictions. Responsible Agency: Housing Authority Schedule: Throughout planning period, one year prior to covenant expiration Program 3.D The Housing Authority owns approximately 1,114 existing rental housing units and will strive to maintain its ownership and/or long term affordability of these units by a third party. Should the Housing Authority sell any of its properties, the sale will include a deed restriction assuring that the same affordability levels as occur prior to sale are maintained for a period of at least 55 years. Responsible Agency: Housing Authority Schedule: Annually in the Housing Authority Budget Program 3.E The City shall coordinatewill host meetings between affordable housing developers and social service agencies when new projects are developed to encourage the integration of services such as child care, job training, vocational education, and similar programs into new affordable housing projects through direct contact with both parties. For on-site child care, the City shall consider allocation of the City’s Childcare Mitigation Fee to new projects which provide the service. Responsible Agency: Housing Authority, Community Development Department Schedule: As projects are proposed Policy 4 The City shall continue to strive to meet the State-mandated special shelter needs of large families, female headed households, single parent families, senior citizens, and disabled individuals and families, and shall consider including units for such households in its projects. Program 4.A The City shall continue to enforce the provisions of the Federal Fair Housing Act. The City shall continue its referral program to the Fair Housing Council of Riverside County, and shall maintain information at City Hall and affordable housing complexes. Brochures and flyers shall be available at Housing Authority properties, the Public Library, and City Hall, and at County social service agency offices in the City, in order to assure that they are available to all community members. Responsible Agency: City and Housing Authority Schedule: Brochures and flyers available at Housing Authority properties, Public Library, and CityBrochures updated and refilled as needed to assure they are always available. Page 716 TN/City of Palm Desert General Plan/Housing Element Housing Element III-99 Program 4.B The City shall work with the Senior Center and other appropriate agencies in the housing of disabled residents. The City will annually train staff at the Senior Center and Housing Authority properties in the needs of disabled residents, the requirements of the Americans with Disabilities Act, and the City’s Reasonable Accommodation policy. Responsible Agency: Senior Center Schedule: Annually through staff training program Program 4.C The City shall meet with non-profit developers and other stakeholders annually to establish and implement a strategy to continue to provide housing affordable to extremely low-income households. The City shall also consider applying for State and federal funding specifically targeted for the development of housing affordable to extremely low-income households, such as CDBG, HOME, Local Housing Trust Fund program and Proposition 1-C funds to the extent possible. The City shall continue to consider incentives, such as increased densities, modifications to development standards, priority processing and fee deferrals as part of the financing package for projects which include extremely low income units. Responsible Agency: City Schedule: As projects are proposedIn conjunction with development of projects described in Programs 1.A through 1.C. Policy 5 The City shall strive to provide shelter for the homeless and persons with disabilities. Program 5.A The City shall continue to work with CVAG on a regional solution for homelessness with the CV Housing First program, through a collaborative approach of the Coachella Valley Homelessness Engagement & Action Response Team (CVHEART). Responsible Agency: City Manager’s Office Schedule: Annually in the General Fund Budget Program 5.B The City will continue to coordinate with the Inland Regional Center, Desert Arc and other appropriate agencies and organizations that serve the developmentally and physically disabled population. The City will continue to encourage developers to reserve a portion of affordable housing projects for the disabled, including those with developmental disabilities. The City will support funding applications for such projects, and will consider fee waivers and reductions when these projects are proposed. Housing Authority properties are one of the vehicles available to encourage rental to developmentally disabled individuals. Responsible Agency: Planning Department Schedule: As projects are proposed Program 5.C The City shall encourage local organizations, such as the Coachella Valley Rescue Mission, Martha’s Village and Catholic Charities, to apply to the City for the award of CDBG funds for homeless services. Responsible Agency: Finance Department Schedule: Annually with CDBG funding cycle Page 717 TN/City of Palm Desert General Plan/Housing Element Housing Element III-100 Program 5.D Review and revise, as necessary, the Zoning Ordinance to ensure compliance with Assembly Bill (AB) 101 as it pertains to Low Barrier Navigation Centers, and AB 139 as it relates to parking for emergency shelters being required for employees only. Modify the definition of “homeless shelter” to include Low Barrier Navigation Centersthis use. Responsible Agency: Planning Department Schedule: 2022-2023 at regular Zoning Ordinance update Policy 6 The City shall continue to utilize restrictions, applicant screenings, and other appropriate mechanisms established as conditions of approval, restrictive agreements or other means in order to preserve affordable for sale housing units for the long term. Program 6.A The City shall keep in regular contact with the Riverside County Housing Authority to ensure that Section 8 housing assistance within the City is actively pursued. At least 30 households should be assisted every year. Responsible Agency: City and Housing Authority Schedule: Annually with annual compliance plan review Policy 7 The City Council shall consider, as an additional incentive, the reduction, subsidizing or deferring of development fees to facilitate the development of affordable housing. Policy 8 The City shall continue to address the needs of the senior population in development of housing. Program 8.A The City shall maintain the Housing Overlay District and Accessory Dwelling Unit standards in the Zoning Ordinance. Responsible Agency: Community Development Department Schedule: Annually review with state General Plan report Program 8.B The City shall continue to encourage the development of assisted living facilities for seniors. Responsible Agency: Community Development Department Schedule: As projects are proposed Policy 9 The City shall implement the State’s density bonus law. Program 9.A Revise the Zoning Ordinance to ensure compliance with AB 2345State law as it pertains to density bonus requirements throughout the planning period. Responsible Agency: Community Development Department Schedule: at regular Zoning Ordinance update Page 718 TN/City of Palm Desert General Plan/Housing Element Housing Element III-101 Policy 10 Promote the jobs/housing balance through the development of housing with convenient access to commercial land uses, schools, available public transport and employment centers. Policy 11 The City shall promote and affirmatively further fair housing opportunities throughout the community for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (FEHA), Government Code Section 65008, and any other applicable state and federal fair housing and planning law. Program 11.A Maintain andContinue to provide multilingual brochures and informational resources to inform residents, landlords, housing professionals, public officials, and others relevant parties about fair housing rights, responsibilities, and services. Responsible Agency: Housing Authority Schedule: Ongoing Program 11.B Coordinate with SunLine Transit Agency to expand services that provide reliable transportation options to low income, disabled, senior, and other residents with limited access. Responsible Agency: Community Development Department Schedule: 2022-2029 Policy 12 Encourage energy conservation through the implementation of new technologies, passive solar site planning and enforcement of building codes. Please also see the Energy and Mineral Resources Element. Program 12.A The City shall maintain an Energy Conservation Ordinance which mandates conservation in new construction beyond the requirements of the California Building Code. Responsible Agency: Planning Department Schedule: Annual review with state General Plan report Program 12.B The City shall encourage Green Building techniques, recycling in demolition, and the use of recycled, repurposed and reused materials in all new housing projects to the greatest extent possible. Responsible Agency: Planning Department, Building Department, Public Works Department Schedule: As projects are proposed Page 719 TN/City of Palm Desert General Plan/Housing Element Housing Element III-102 Appendix A Public Outreach Materials Page 720 COMMUNITY WORKSHOP NOTICE CITY OF PALM DESERT HOUSING ELEMENT COMMUNITY WORKSHOP Thursday, January 21, 2021 – 3:00 p.m. A community workshop for the City’s Housing Element Update (2021-2029 planning period) will be held Thursday, January 21, 2021, at 3:00 p.m. via Zoom. At this workshop, the City will discuss background information regarding its upcoming Housing Element Update including new State Housing Element law, the 2021-2029 Regional Housing Needs Assessment (RHNA) allocation for the City and take public comments on the Update from those attending. All members of the public are encouraged to attend. The Housing Element is a series of goals, policies, and implementation measures for the preservation, improvement, and development of housing, which would apply throughout the City. It meets the requirements of the California Department of Housing and Community Development, and State law. To participate in the workshop via Zoom, please RSVP by email to eceja@cityofpalmdesert.org, by 10:00 a.m. on the day of the meeting (requests received after 10:00 a.m. on meeting day may not be processed). Specific questions regarding the workshop or Housing Element may be directed to Eric Ceja, Principal Planner, at (760) 346-0611 or eceja@cityofpalmdesert.org. The City of Palm Desert promotes fair housing and makes all programs available to low-income families and individuals, regardless of race, religion, color, national origin, ancestry physical disability, mental disability, medical condition, marital status, political affiliation, sex, age, sexual orientation or other arbitrary factor. Page 721 AB 1486 - List of Developers that have notified the Department of Housing and Community Development of Interest in Surplus Land, Table Range A2:J486 Revised: 12/1/2020 County Organization CalHFA Certified Housing Sponsor?Address City State Zip Contact Phone Email Address RIVERSIDE COUNTY Green Development Company X 251 S Lake Ave #320 Pasadena CA 91105 Andrew Slocum (310) 467-9329 Andrew@greendev.co RIVERSIDE COUNTY A Community of Friends 3701 Wilshire Blvd, Ste 700 Los Angeles CA 90010 Mee Heh Risdon (213) 480-0809 mrisdon@acof.org RIVERSIDE COUNTY Affordable Homestead LLC 915 W Foothill Blvd Ste 488C Claremont CA 91711 William Leong (213) 375-8248 affordablehomestead@gmail.com RIVERSIDE COUNTY Bibi Foundation 1514 N. Raymond Ave Fullerton CA 92831 Riaz Chaudhary (714) 213-8650 Riaz@marrscorp.com RIVERSIDE COUNTY City Ventures, LLC 3121 Michelson Drive, Suite 150 Irvine CA 92612 Anastasia Preedge apreedge@cityventures.com RIVERSIDE COUNTY Coachella Valley Housing Coalition 45-701 Monroe Street, Suite G Indio CA 92201 Julie Bornstein (760) 347-3157 julie.bornstein@cvhc.org RIVERSIDE COUNTY Cypress Equity Investments 12131 Wilshire Blvd., Suite 801 Los Angeles CA 90025 Mike Diacos (310) 405-0314 mdiacos@cypressequity.com RIVERSIDE COUNTY Decro Corporation 3431 Wesley Street, Suite F Culver City CA 90232 Laura Vandeweghe (310) 595-4421 lvandeweghe@decro.org RIVERSIDE COUNTY Families Forward 8 Thomas Irvine CA 92618 Steven Moreno (949) 552-2729 smoreno@families-forward.org RIVERSIDE COUNTY Housing Innovation Partners 5151 Murphy Canyon Rd. #120 San Diego CA 92123 Jon Walters (619) 417-5361 jon@hipsandiego.org RIVERSIDE COUNTY Integrity Housing 4 Venture, Suite 295 Irvine CA 92618 Paul Carroll (949) 727-3656 paul@integrityhousing.org RIVERSIDE COUNTY Olivecs Foundation 328 E. Commonwealth Ave Fullerton CA 92832 Rubina Chaudhary (562) 972-2786 rubina@olivecs.org RIVERSIDE COUNTY The Kennedy Commission 17701 Cowan Ave. #200 Irvine CA 92614 Cesar Covarrubias (949) 250-0909 cesarc@kennedycommission.org RIVERSIDE COUNTY Universal Standard Housing 350 S Grand Avenue, Suite 3050 Los Angeles CA 90071 Eduardo Santana (213) 320-3554 esantana@ush.us RIVERSIDE COUNTY USA Properties Fund, Inc 3200 Douglas Blvd Ste 200 Roseville CA 95661 Gabriel Gardner (916) 239- 8458 ggardner@usapropfund.com RIVERSIDE COUNTY Workforce Homebuilders LLC 547 Via Zapata Riverside CA 92507 Tony Mize (951) 530-8172 tmize@workforcehomebuilders.com AFFORDABLE HOUSING DEVELOPERS National Community Renaissance 9421 Haven Aven., Rancho Cucamonga, CA 91730 CA Tony Mize, VP-Acquisitions 909-727-2783 tmize@nationalcore.org Lift To Rise 73-710 Fred Waring Dr. Suite 100, Palm Desert, CA 92260 CA 760-636-0420 info@lifttorise.org www.lifttorise.org Community Housing Opportunities Corporation 5030 Business Center Drive #260, Fairfield, CA 94534 CA Vince Nicholas Joy Silver Charles Liuzzo Yegor Lyashenko Minami Hachiya 707-759-6043 vnicholas@chochousing.org JSilver@chochousing.org CLiuzzo@chochousing.org YLyashenko@chochousing.org MHachiya@chochousing.org www,chochousing.org Coachella Valley Housing Coalition 45701 Monroe St, Indio CA 92201 CA Maryann Ybarra 760-347-3157 Maryann.Ybarra@cvhc.org www.cvhc.org Pacific West 430 E. State Street, Ste 100, Eagle, ID 83616 CA Darren Berberian 949-599-6069 DarrenB@tpchousing.com www.tpchousing.com Habitat for Humanity 72680 Dinah Shore Dr., #6, Palm Desert, CA 92211 CA 760-969-6917 www.hfhcv.org RIVERSIDE COUNTY Neighborhood Partnership Housing Services 9551 Pittsburgh Avenue Rancho Cucamonga CA 91730 Jenny Ortiz (909) 988-5979 jortiz@nphsinc.org RIVERSIDE COUNTY Habitat for Humanity for the Coachella Valley 72680 Dinah Shore Dr. #6 Palm Desert CA 92211 (760) 969-6917 executivedirector@hfhcv.org; info@hfhcv.org RIVERSIDE COUNTY Coachella Valley Association of Governments 73-710 Fred Waring Drive, Ste 200 Palm Desert CA 92260 Cheryll Dahlin Tom Cox (760) 346-1127 tcox@cvag.org RIVERSIDE COUNTY Lift to Rise 73-710 Fred Waring Drive, Suite 100 Palm Desert CA 92260 Araceli Palafox info@lifttorise.orgPage 722 Tuesday, January 12, 2021 at 08:21:03 Pacific Standard Time Page 1 of 2 Subject:Palm Desert Housing Element Update - Virtual Community Workshop No=ce - Join us! Date:Tuesday, January 12, 2021 at 8:19:19 AM Pacific Standard Time From:Kimberly Cuza <kcuza@terranovaplanning.com> BCC:Andrew@greendev.co <Andrew@greendev.co>, mrisdon@acof.org <mrisdon@acof.org>, affordablehomestead@gmail.com <affordablehomestead@gmail.com>, Riaz@marrscorp.com <Riaz@marrscorp.com>, apreedge@cityventures.com <apreedge@cityventures.com>, julie.bornstein@cvhc.org <julie.bornstein@cvhc.org>, mdiacos@cypressequity.com <mdiacos@cypressequity.com>, lvandeweghe@decro.org <lvandeweghe@decro.org>, smoreno@families-forward.org <smoreno@families-forward.org>, jon@hipsandiego.org <jon@hipsandiego.org>, paul@integrityhousing.org <paul@integrityhousing.org>, rubina@olivecs.org <rubina@olivecs.org>, tcox@cvag.org <tcox@cvag.org>, cesarc@kennedycommission.org <cesarc@kennedycommission.org>, esantana@ush.us <esantana@ush.us>, ggardner@usapropfund.com <ggardner@usapropfund.com>, tmize@workforcehomebuilders.com <tmize@workforcehomebuilders.com>, tmize@na=onalcore.org <tmize@na=onalcore.org>, JSilver@chochousing.org <JSilver@chochousing.org>, CLiuzzo@chochousing.org <CLiuzzo@chochousing.org>, YLyashenko@chochousing.org <YLyashenko@chochousing.org>, MHachiya@chochousing.org <MHachiya@chochousing.org>, Maryann.Ybarra@cvhc.org <Maryann.Ybarra@cvhc.org>, DarrenB@tpchousing.com <DarrenB@tpchousing.com>, jor=z@nphsinc.org <jor=z@nphsinc.org>, execu=vedirector@h_cv.org <execu=vedirector@h_cv.org>, info@h_cv.org <info@h_cv.org>, cdahlin@cvag.org <cdahlin@cvag.org>, info@li‘torise.org <info@li‘torise.org>, VNicholas@chochousing.org <VNicholas@chochousing.org>, Eric Ceja <eceja@cityofpalmdesert.org>, jgonzales@cityofpalmdesert.org <jgonzales@cityofpalmdesert.org>, Nicole Criste <ncriste@terranovaplanning.com>, Bi=an Chen <bchen@terranovaplanning.com> ADachments:image001.png Page 723 Page 2 of 2Page 724 Name Organization Email Jann Bueller City's Housing Commission jannb774@gmail.com Taylor Varner Libolt Lift to Rise taylor@lifttorise.org Melody Morrison tallgirlof3@gmail.com Donna ault City's Housing Commission donnaault@msn.com Dennis City's Housing Commission guinawcd@gmail.com Habitat for Humanity executivedirector@hfhcv.org Joy Silver Communities Housing Opportunities Corporation JSilver@chochousing.org Tony Mize National Core tmize@nationalcore.org Emilia Mojica Coachella Valley Housing Coalition Emilia.Mojica@cvhc.org Slawomir Rutkowski Coachella Valley Housing Coalition Slawomir.Rutkowski@cvhc.org Anna Tellez Coachella Valley Housing Coalition Anna.Tellez@cvhc.org Sheila McGrath Coachella Valley Housing Coalition Sheila.McGrath@cvhc.org Gretchen Gutierrez Desert Valley Builders Associations gg@thedvba.org Housing Element Workshop RSVP List - January 21, 2021 Page 725 PALM DESERT HOUSING ELEMENT UPDATEPage 726 Background and Requirements §The Housing Element is one of the Elements required in our General Plan §It is the only Element that must be updated on a regular schedule. §Upcoming planning period: 2022-2029 §The purpose of the Housing Element is to assure that the City facilitates the development of housing for all economic and social segments within the community. §The City has a long history of actively participating in the development of affordable housing, and currently owns 1,127 affordable housing units.Page 727 About Palm Desert §Current Population: 52,986 §Median Age: 53.0 years §Households: 24,114 §Median Household Income: $57,578 (below the County median of $66,964) §21,933 residents work (41% of the population) §Management (36%) §Service (25%) §Sales and office (28%) §39.6% of residents work in the CityPage 728 About Palm Desert §Median housing value is $335,400 §Median rent is $1,260 §959 housing units are overcrowded §218 overcrowded units are owner-occupied. §741 overcrowded units are renter-occupied. §9,635 households are overpaying for housing (more than 30% of income) §3,040 lower income owners are overpaying §3,860 lower income renters are overpayingPage 729 Regional Housing Need Allocation (RHNA) RHNA by Income Category, 2022-2029 RHNA Allocation Extremely Low Income 336 Very Low Income 337 Low Income 459 Moderate Income 460 Above Moderate Income 1,191 Total Units 2,783 January 6, 2021Page 730 Looking to the Future §There are several projects in development that will come forward in the 2022-2029 planning period: §270±units are in early development stages for 10 acres owned by the SARDA. §200±units are in early development stages on 10 acres owned by the City at Dinah Shore and Portola. §Minimum 28 units units at Sagecrest Apartments, at the corner of Santa Rosa and San Pasqual. §384 units next to Canterra Apartments, 61 of which will be reserved for low income households. §200± units at Dinah Shore and Key Largo, as part of a larger Specific Plan being prepared by a private developer. §14 self help ownership units on Merle, near Cook Street, through the Coachella Valley Housing Coalition. §The City will continue to work with the development community to facilitate additional projects as they are proposed. January 6, 2021Page 731 Available Sites January 6, 2021 §The City needs to identify sites for 1,592 units for very low, low and moderate income households. §The City has identified sites for 1,973 units for these income levels. §The City has approved projects which will provide 4,405 above moderate income units.Page 732 Next Steps §The Housing Element Draft will be completed in early spring, and submitted to the State for review. §Planning Commission and City Council hearings are expected in late summer of 2021. January 6, 2021Page 733 Discussion §We want your input. Please give us your feedback. January 6, 2021Page 734 Wednesday, September 1, 2021 at 15:47:59 Pacific Daylight Time Page 1 of 3 Subject:Palm Desert Housing Element Study Session Date:Friday, August 27, 2021 at 2:44:30 PM Pacific Daylight Time From:Kimberly Cuza <kcuza@terranovaplanning.com> To:Kimberly Cuza <kcuza@terranovaplanning.com> BCC:Andrew@greendev.co <Andrew@greendev.co>, mrisdon@acof.org <mrisdon@acof.org>, affordablehomestead@gmail.com <affordablehomestead@gmail.com>, mdiacos@cypressequity.com <mdiacos@cypressequity.com>, Riaz@marrscorp.com <Riaz@marrscorp.com>, tmize@workforcehomebuilders.com <tmize@workforcehomebuilders.com>, ggardner@usapropfund.com <ggardner@usapropfund.com>, esantana@ush.us <esantana@ush.us>, cesarc@kennedycommission.org <cesarc@kennedycommission.org>, apreedge@cityventures.com <apreedge@cityventures.com>, julie.bornstein@cvhc.org <julie.bornstein@cvhc.org>, lvandeweghe@decro.org <lvandeweghe@decro.org>, smoreno@families-forward.org <smoreno@families-forward.org>, jon@hipsandiego.org <jon@hipsandiego.org>, paul@integrityhousing.org <paul@integrityhousing.org>, rubina@olivecs.org <rubina@olivecs.org>, tcox@cvag.org <tcox@cvag.org>, tmize@naWonalcore.org <tmize@naWonalcore.org>, JSilver@chochousing.org <JSilver@chochousing.org>, Charles Liuzzo <cliuzzo@chochousing.org>, Yegor Lyashenko <YLyashenko@chochousing.org>, Minami Hachiya <MHachiya@chochousing.org>, Maryann Ybarra <maryann.ybarra@cvhc.org>, Darren Berberian <DarrenB@tpchousing.com>, jorWz@nphsinc.org <jorWz@nphsinc.org>, execuWvedirector@h\cv.org <execuWvedirector@h\cv.org>, cdahlin@cvag.org <cdahlin@cvag.org>, info@li]torise.org <info@li]torise.org>, Info HFHCV <info@h\cv.org>, Vince Nicholas <VNicholas@chochousing.org>, Eric Ceja <eceja@cityofpalmdesert.org>, Jessica Gonzales <jgonzales@cityofpalmdesert.org>, Nicole Criste <ncriste@terranovaplanning.com>, BiWan Chen <bchen@terranovaplanning.com>, Cynthia Michaels <cmichaels@terranovaplanning.com>, jannb774@gmail.com <jannb774@gmail.com>, taylor@li]torise.org <taylor@li]torise.org>, tallgirlof3@gmail.com <tallgirlof3@gmail.com>, donnaault@msn.com <donnaault@msn.com>, guinawcd@gmail.com <guinawcd@gmail.com>, execuWvedirector@h\cv.org <execuWvedirector@h\cv.org>, JSilver@chochousing.org <JSilver@chochousing.org>, tmize@naWonalcore.org <tmize@naWonalcore.org>, Emilia.Mojica@cvhc.org <Emilia.Mojica@cvhc.org>, Slawomir.Rutkowski@cvhc.org <Slawomir.Rutkowski@cvhc.org>, Anna.Tellez@cvhc.org <Anna.Tellez@cvhc.org>, Sheila.McGrath@cvhc.org <Sheila.McGrath@cvhc.org>, gg@thedvba.org <gg@thedvba.org> AJachments:image.png, PD HE Study Session NoWce.jpg As a participant in our community workshops for the City of Palm Desert’s Housing Element Update, we wanted to let you know of this upcoming Study Session. The Study Session will be a presentation followed by Planning Commission and City Council comments and questions, and we hope that you can attend and listen in. Following the Study Session, the City will post the revised Housing Element on its website for public comment, from September 10th through September 24th. We invite you to provide comments on the Element through this portal: Housing Element | City of Palm Desert Page 735 Page 2 of 3Page 736 Page 3 of 3 Page 737 Friday, September 3, 2021 at 13:49:22 Pacific Daylight Time Page 1 of 2 Subject:Palm Desert Housing Element Study Session Date:Friday, September 3, 2021 at 1:48:29 PM Pacific Daylight Time From:Kimberly Cuza <kcuza@terranovaplanning.com> BCC:josieare@gmail.com <josieare@gmail.com>, info@pdacc.org <info@pdacc.org>, gg@thedvba.org <gg@thedvba.org>, Jessica Gonzales <jgonzales@cityofpalmdesert.org>, Nicole Criste <ncriste@terranovaplanning.com> AEachments:image001.jpg, image002.jpg As a participant in our community workshops for the City of Palm Desert’s Housing Element Update, we wanted to let you know of this upcoming Study Session. The Study Session will be a presentation followed by Planning Commission and City Council comments and questions, and we hope that you can attend and listen in. Following the Study Session, the City will post the revised Housing Element on its website for public comment, from September 10th through September 24th. We invite you to provide comments on the Element through this portal: Housing Element | City of Palm Desert Page 738 Page 2 of 2 Page 739 Friday, September 10, 2021 at 15:13:32 Pacific Daylight Time Page 1 of 2 Subject:FW: Screen Shot of Housing Element Website Update Date:Friday, September 10, 2021 at 3:10:10 PM Pacific Daylight Time From:Nicole Criste <ncriste@terranovaplanning.com> To:Kimberly Cuza <kcuza@terranovaplanning.com> ABachments:image001.jpg, image002.png, image003.jpg, image004.jpg, image005.jpg For PDHE Appendix Nicole Sauviat Criste Principal TERRA NOVA PLANNING & RESEARCH, INC.® 42635 Melanie Place, Ste 101 PALM DESERT, CA. 92211 (760) 341-4800 FAX#: 760-341-4455 E-Mail: ncriste@terranovaplanning.com From: "eceja@cityofpalmdesert.org" <eceja@cityofpalmdesert.org> Date: Friday, September 10, 2021 at 2:54 PM To: Nicole Criste <ncriste@terranovaplanning.com> Cc: "jgonzales@cityofpalmdesert.org" <jgonzales@cityofpalmdesert.org> Subject: Screen Shot of Housing Element Website Update AVached is the screenshot for the HE website update. Page 740 Page 2 of 2 Thanks, Eric Ceja Deputy Director of Development Services Ph: 760.346.0611 Direct: 760.776.6384 eceja@cityofpalmdesert.org www.cityofpalmdesert.org Install the Palm Desert In Touch app to stay in touch with your community Android Apple Mobile Web Page 741 CHAPTER 8: SAFETY GENERAL PLAN | 109 8. SAFETY Overview The City of Palm Desert strives to maintain a high level of safety and to respect the natural setting of the community, while meeting the needs of residents, a thriving economy, and critical government functions. This element identifies priority public safety issues in Palm Desert and addresses potential hazards to people and property. Issues in this element include both natural and human-caused hazards. Goals, policies and actions in the Safety Element seek to enhance the safety of the community and foster long-term resilience to potential hazards. Statutory Requirements California law (Government Code Section 65302(a)) requires that a city’s general plan include: “a safety element for the protection of the community from any unreasonable risks associated with the effects of seismically induced surface rupture, ground shaking, ground failure, tsunami, seiche, and dam failure; slope instability leading to mudslides and landslides; subsidence… and other geologic hazards known to the legislative body; flooding; and wildland and urban fires. The safety element shall include mapping of known seismic and other geologic hazards. It shall also address evacuation routes …peak load water supply requirements, and minimum road widths and clearances around structures, as those items relate to identified fire and geologic hazards.” As required by state law, the Safety Element identifies forces of nature and events resulting from human action that have the potential to cause harm to life and property in the city. Identifying the source of such threats allows decision-makers to take preemptory action to minimize the damage, particularly as it relates to new development projects. In addition to State-mandated components, the Safety Element builds on the previous General Plan to emphasize the importance of police services and personal safety. This element presents existing conditions relative to public safety in Palm Desert and is organized to address the following six priority safety issues required by state law and identified by the City’s (2017) Local Hazard Mitigation Plan: • Seismic and geologic hazards • Flooding • Extreme weather • Fire Palm Desert is known for high quality emergency services Page 742 CHAPTER 8: GENERAL PLAN 110 | CITY OF PALM DESERT • Emergency preparedness • Human-caused and other hazards The Safety Element is consistent with and supports the other General Plan elements. The elements of the General Plan that most closely correlate to the Safety Element are the Land Use and Community Character Element, Public Utilities Element, Mobility Element, Housing Element, and Environmental Resources Element. While the Safety Element has a less direct relationship with the remaining General Plan elements, each element is important and collectively supports a comprehensive framework for Palm Desert’s future. Context The Safety Element addresses a broad range of issues and hazards that affect the community and residents of Palm Desert. Hazards and strategies from the Local Hazard Mitigation Plan (LHMP)1, Multi-Jurisdictional Hazard Mitigation Plan (MJHMP)2, Riverside County Unit Fire Plan, and Emergency Operations Plan (EOP) provide a foundation for policy development in this element. The Safety Element also reflects technical information on the extent and scope of hazards, as described in the City of Palm Desert Existing Conditions Report (2015). Relevant sections in the report include Section 7 (Geology and Soils), Section 8 (Hazards and Hazardous Materials), Section 9 (Hydrology and Water Quality), and Section 15 (Public Services, Utilities, and Recreation). These sections provide technical information on hazards, in addition to context regarding the local, state and federal regulatory framework. Related Plans The Safety Element supports and integrates several key plans that identify the City’s approach to assess and reduce risks from hazards. In addition to local plans and ordinances, several state and federal policies and programs shape the City’s approach to hazard mitigation. Two key local plans present programs and implementation strategies to assess and respond to hazards. The Local Hazard Mitigation Plan (LHMP) analyzes potential hazards in Palm Desert. Included in the LHMP is a comprehensive risk assessment that meets the requirements of the Disaster Mitigation Act (DMA) of 2000. The DMA requires local governments to prepare plans that identify hazards and risks in a community and to create appropriate mitigation. Additionally, the City maintains an Emergency Operations Plan (EOP) as a framework for implementation of the California Standardized Emergency Management System (SEMS) and the National Incident Management System (NIMS). The EOP facilitates multi-agency and multi- jurisdictional coordination for emergency operations across the region and state. The City of Palm Desert is also a participant in the Riverside County Operational Area Multi-Jurisdictional Local Hazard Mitigation Plan (LHMP) (Riverside County 2018). The County LHMP identifies the hazards, reviews and assesses past disaster occurrences, estimates the probability of future occurrences, and sets goals to 1 2017 Local Hazard Mitigation Plan, prepared by Eric Cadden, City of Palm Desert, 5/1/2017 https://www.cityofpalmdesert.org/our-city/departments/risk- management/emergency-services-/disaster-preparedness/local-hazard-mitigation- plan 2 County of Riverside Multi-Jurisdictional Local Hazard Mitigation Plan, July 2018 https://www.rivcoemd.org/LHMP Protecting community well-being and health remains a high priority for Palm Desert Page 743 CHAPTER 8: SAFETY GENERAL PLAN | 111 mitigate, reduce or eliminate long-term risk to people and property from natural and man-made hazards in the county and participating jurisdictions, including Palm Desert. As a contract city that receives fire services from Riverside County, which contracts with the California Department of Forestry and Fire Protection (Cal FIRE). The City’s fire response and preparedness planning is contained in the Riverside County Fire Department Strategic Plan3 prepared by the County and Cal FIRE. This plan outlines the activities necessary to reduce total government costs and citizen losses from wildland fires. A key component of this protection of assets at risk through focused pre-fire management prescriptions and increasing initial attack success. In addition, the City has adopted the California Fire Code with some adoptions within Chapter 15.264 of the Palm Desert Municipal Code. The adoptions within this Chapter are associated with local climatic, geologic, and topographical conditions within the City. Natural Hazards Seismic and Geologic Hazards Palm Desert is in a region bordered by mountain ranges on three sides. According to the state mapping of fault zones, pursuant to the Alquist-Priolo Earthquake Fault Zoning Act of 1972 (Public Resources Code Sections 2621–2630), the city and the sphere of influence (SOI) are not located in an active fault zone. Nonetheless, the area is bordered by three active faults. The closest fault to the community is the San Andreas Fault, located approximately four miles to the north. Other nearby faults include the San Jacinto Fault, located approximately 10 miles to the southwest, and the Elsinore Fault, located approximately 30 miles to the southwest. Figure 8.1 presents fault lines near Palm Desert and the sphere of influence. Fault rupture is a primary seismic hazard that describes the sudden release of energy which results from the sliding of one part of the earth’s crust past another. An earthquake, or ground shaking, is another type of primary seismic hazard. Thousands of earthquakes occur frequently in Southern California each year, although most do not cause significant damage or affect communities. The most recent earthquake in the Coachella Valley occurred on October 16, 1999, and registered as a magnitude (M) of 7.1. Relatively negligible damage was reported from the earthquake because of the epicenter’s remote location. Six major seismic events (magnitude 5.9 or greater) have been recorded in the Coachella Valley region in the past 100 years, with none occurring in Palm Desert (SCEC 2014). Although no active faults run through the community, Palm Desert’s soils and geologic characteristics result in other potential secondary seismic hazards. Due to a combination of steep slopes, unstable terrain, and proximity to earthquake faults, the southwestern portions of the city and the SOI are susceptible to landslide risks ranging from moderate to very high. Areas susceptible to landslide are shown in Figure 8.2. Susceptible areas include those identified in the Land Use and Community 3 California Department of Forestry and Fire Protection, Riverside County Fire Department Strategic Plan 2009-2029, http://rvcfire.org/stationsAndFunctions/AdminSppt/StrategicPlanning/Documents/St rategicPlan2009.pdf 4 Palm Desert Municipal Code, http://www.qcode.us/codes/palmdesert/view.php?topic=0&frames=off The San Andreas Fault located in close proximity to Palm Desert Terrain and steep slopes within Palm Desert Page 744 CHAPTER 8: GENERAL PLAN 112 | CITY OF PALM DESERT Character Element for development of new buildings and structures. As of 2015, no recent landslides had been reported in Palm Desert or the SOI. Local soil and fault characteristics also result in the potential for liquefaction. Liquefaction is the loss of soil strength caused by a sudden increase in pore water pressure during shaking and is one of the most destructive secondary effects of seismic shaking. The California Geological Survey does not identify liquefaction- susceptible areas for Palm Desert. However, the Riverside County Land Information System (Riverside County 2014) identifies that the majority of the city and the entire northern portion of the SOI are susceptible to moderate liquefaction potential. Page 745 CHAPTER 8: SAFETY GENERAL PLAN | 113 Figure 8.1 Faults and Fault Zones in Palm Desert Page 746 CHAPTER 8: GENERAL PLAN 114 | CITY OF PALM DESERT Figure 8.2 Landslide Susceptibility Page 747 CHAPTER 8: SAFETY GENERAL PLAN | 115 Wind Erosion Erosion is a normal geologic process whereby earth materials are loosened, worn away, decomposed, or dissolved and are removed from one place and transported to another. The City of Palm Desert and the SOI face exposure to potential erosion hazards due to wind. The geologic orientation of the hills and mountain ranges throughout the community provide little resistance to air flow down the Coachella Valley, resulting in increased rates of erosion. For example, the narrow San Gorgonio Pass actually accelerates the wind speed and further increases erosion rates. Other factors in the community exacerbate the potential for wind-blown sand hazards. Local bedrock is characterized by granite and metamorphic rock types, which are easily transported by the wind. Wind-blown hazards also follow slope and floodplains. Due to sparse desert vegetation, little groundcover exists to hold materials in place (County of Riverside 2000). As shown in Figure 8.3, the greatest areas of potential wind-blown hazards are located alongside the sand dunes on Highway I-10 and the Whitewater River. Page 748 CHAPTER 8: GENERAL PLAN 116 | CITY OF PALM DESERT Figure 8.3 Wind Erosion Hazard Page 749 CHAPTER 8: SAFETY GENERAL PLAN | 117 Flooding Flooding hazards in Palm Desert can result from stormwater flows and flash runoff from the Indio Hills and the foothills of the San Jacinto and San Bernardino Mountains. The threat of localized flash flooding is especially high during summer storms due to the high intensity and shorter duration of rainfall. Palm Desert has a history of flood events. Recent regional occurrences include the Riverside County floods in 1998 that resulted in reported damage of over $12 million. Locally, smaller flood incidents have also occurred in Palm Desert. Previous local events in Palm Desert include flash floods that occurred in 1998, in addition to flooding from Tropical Storms Kathleen and Doreen in 1976 and 1977 that caused extensive flood damage throughout the city (Riverside County 2012, City of Palm Desert 2017). In 2015, the Palm Desert Country Club neighborhood in the City experienced temporary flooding from an isolated high wind/storm event, with damages mainly from high winds and falling trees. Nonetheless, reported damages from these flood events in Palm Desert are low and far less extensive than the reported damages from the countywide floods of 1998. Areas of Palm Desert and the SOI are subject to inundation from flooding. The Federal Emergency Management Agency’s (FEMA’s) Digital Flood Insurance Rate Map (2017) identifies the following flood hazard zones: Zone A/AE/AO—100-year floodplain, designating a 1 percent or greater chance of flooding in a given year, with base flood elevations undetermined, determined, or 1- 3 feet average depth and Zone X—500-year floodplain, designating a 0.2 percent or greater chance of flooding in a given year; areas of average depths of less than 1 feet or with drainage areas less than 1 square miles; and areas protected by levees from 1 percent annual chance flood. North of Interstate 10, the majority of the northern portion of the SOI is within the 100- or 500-year flood zone. Additional 100- and 500-year flood zones are present throughout the southern City along the Whitewater River and its tributaries such as the Palm Valley System. The majority of the community south of the Whitewater River, however, are areas with reduced risk due to levee or not within any flood hazard zones. Figure 8.4 depicts the flood hazard zones in the City and SOI. Existing development in the 100-year flood zones are mainly located between Interstate 10 and Washington Street in the northern SOI. Part of the Palm Springs RV Resort and some commercial uses are located in the 100-year flood plain. There are existing residential and commercial development within the 500-year flood zones. The majority of Sun City Palm Desert, a retirement community in the northern SOI, are located in the 500-year flood zone. Several commercial plazas and single-family residences near Highway 111 in the western City are also located in the 500-year flood zone. Applications for development in Special Flood Hazard Areas (SFHAs) are subject to Palm Desert Municipal Code Title 28, Flood Damage Prevention. Title 28 defines SFHAs as an area in the floodplain subject to a one percent or greater chance of flooding in any given year, which corresponds to Zone A/AE/AO in figure 8.4. This title requires an applicant to obtain a development permit before construction or other development begins in any area of special flood hazard. Chapter 28.10 sets Page 750 CHAPTER 8: GENERAL PLAN 118 | CITY OF PALM DESERT provisions for flood hazard reduction, including standards of construction, for utilities, subdivisions, manufactured homes and recreational vehicles. While areas of community flood exposure are indicated by designated flood zones, other areas of Palm Desert are also susceptible to other types of localized flood risks. Stormwater runoff or the failure of infrastructure can result in additional flood events, both within and outside of designated flood zones. Stormwater drainage in Palm Desert is approaching the end of its useful life. Existing stormwater infrastructure throughout the Coachella Valley is more than 100 years old, requiring replacement to control groundwater levels and safely facilitate percolation of stormwater. As the community continues to urbanize, the need for improved stormwater infrastructure will increase. The possibility of dam failure poses additional potential flood hazards to Palm Desert. Although no dams or reservoirs are located in the community or SOI, the city is within the potential inundation area of the Wide Canyon Flood Control Dam. While the city is not expected to be impacted directly by a seiche, or wave, from the dam, Palm Desert is subject to potential flood hazards if the dam were to fail. Constructed in 1968 and located in Fun Valley, the dam has the potential to inundate not just Palm Desert but also other portions of the Coachella Valley. Page 751 CHAPTER 8: SAFETY GENERAL PLAN | 119 Figure 8.4 FEMA Flood Zones Page 752 CHAPTER 8: GENERAL PLAN 120 | CITY OF PALM DESERT Fire Palm Desert and the SOI are exposed to fire-related hazards from two potential sources: wildfires and fires that occur in urban settings. Fire hazards are highest in areas of the community near the wildland-urban interface (WUI). The WUI refers to areas where development abuts areas of wilderness or landscapes with higher fuel loads. Although Palm Desert does not have record of any reported fire incidents, the Riverside County LHMP indicates that from 2001 to 2017, at least 88 large fires (300 acres or greater in size) were reported in the county. Figure 8-5 presents the fire hazard severity zones in the City of Palm Desert and SOI. The California Department of Forestry and Fire Protection (Cal Fire) classified fire hazard severity zones based on fuel load, terrain, weather, and other relevant factors. The mapping also involved an extensive local review process, including by the Riverside County Fire Department based on an assessment of vegetation, slope, fire history, weather patterns, and the effects of flames, heat and flying fire embers. Collectively, areas designated in the fire hazard severity zones on Figure 8.5 face the highest risk of wildfires. Areas of local and state responsibility in these fire hazard severity zones are shown in Figure 8.5. All areas of the community in Very High Fire Hazard Severity Zone (VHFHSZ) and High Fire Hazard Severity Zone (HFHSZ) are located in the southern areas of the city and the SOI, with very limited VHFHSZ and HFHSZ in SRAs along the city’s urban edge (Cal Fire 2020). Within the city limits, the VHFHSZ overlaps minimally with some single-family residences on Canyon View Drive and Desert Vista Drive; however, there is no developable land in the VHFHSZ as it contains marginal hillside area behind single family residences and does not have any development potential. The small area of HFHSZ within the city limits covers undeveloped desert land and an aboveground water tank and has no development potential. Currently, the main evacuation route in the area is via Canyon View Drive, which will lead to Portola Avenue and Highway 74. A secondary evacuation route is available at the eastern end of Ridge View Way, via an access road along the eastern boundary of the Ironwood Country Club, to continue north or east into the roadway network. These areas that encroach into SRA/VHFHSZ within the city meet the minimum standard of two emergency evacuation routes as established in Government Code Section 65302.g. In the SOI, some single-family homes in Cahuilla Hills west of Highway 74 are located within the VHFHSZ, and some are limited to one local street leading to Highway 74 as an evacuation route. As urbanization expands south of Highway 111 in the southern portion of the SOI, the community will face heightened exposure to areas vulnerable to wildfire hazards. Increased infill and nonresidential development in the city can also increase the probability of urban fires due to increased potential for hazardous materials accidents, arson or other hazard events. Five federal agencies are responsible for wildland fire management—U.S. Forest Service, the Bureau of Indian Affairs, Bureau of Land Management, Fish and Wildlife Service, and National Park Service. Both state and local codes regulate the abatement of fire-related hazards. The California Health and Safety Code includes requirements for local jurisdictions to adopt and enforce the Uniform Building Code, including fire-related construction methods and exterior design measures. Special standards apply to structures in the state’s designated fire hazard severity zones. Page 753 CHAPTER 8: SAFETY GENERAL PLAN | 121 California Government Code Section 51182 further requires maintenance of defensible space of 100 feet from each side of a structure. The City of Palm Desert has incorporated state requirements with adoption of the 2019 edition of the California Building Standards Code, including the California Fire Code by reference in Municipal Code Title 15, Building and Construction. The state’s fire hazard severity zones shown in Figure 8.5 are incorporated and established in Palm Desert Municipal Code Section 15.26.010, supporting the City’s ability to enforce state standards applicable to areas of higher risk. Page 754 CHAPTER 8: GENERAL PLAN 122 | CITY OF PALM DESERT Figure 8.5 Fire Hazard Severity Zones Page 755 CHAPTER 8: SAFETY GENERAL PLAN | 123 Extreme Heat The climate in Palm Desert is hot and arid. Exposure to extreme heat or extended periods of high temperatures results in a variety of health effects, including increased heat-related mortality (Chestnut et al. 1998; Medina-Ramon et al. 2006). Because of a changing climate, Palm Desert is anticipated to experience increasing levels of heat. By 2100, the Riverside County region is anticipated to experience an increase ranging from 4.3°F to 8.7°F (Scripps Institution of Oceanography 2018). Similarly, Palm Desert is anticipated to experience an increase in the number of days when temperature exceeds 112.1°F, the local threshold for extreme heat. While Palm Desert’s historic number of extreme heat days through 2011 was four occurrences per year, by 2050 the number of extreme heat days could increase to 56 per year, on an average of 21 to 25 (Scripps Institution of Oceanography 2009 & 2018). Increased heat, when combined with drought and high winds, can exacerbate wildfire risk in and around Palm Desert. Climate Change Impacts and Adaptation As described in Chapter 6 Environmental Resources and above, climate change can have widespread impacts at different levels on the community. Climate change impacts temperature, precipitation and other natural processes, thus potentially affecting natural hazards including wildfire, flood, and extreme weather. Similar to the state trend, the projections show little variation in total annual precipitation in Palm Desert throughout this century. Palm Desert had an average annual rainfall of 3.8 inches during 1961 to 1990, which is almost 79 percent less than the average in California. Average rainfall in Palm Desert is predicted to increase up to 0.1 inches, with a 0.051 inches to 0.099 inches increase in maximum one-day precipitation throughout the century. These projected changes in precipitation are not expected to have a significant impact on Palm Desert compared to the current conditions. However, the maximum length of dry spell (days with precipitation < 1 mm) is projected to increase by 8 to 13 days in mid-century (2035- 2064), which can further drought and related hazards including wildfire. Human-Caused and Other Hazards Hazardous Materials A hazardous material is any material that, due to its quantity, concentration, or physical or chemical characteristics, poses a significant present or potential hazard to human health and safety or to the environment if released. Hazardous materials include, but are not limited to, hazardous substances, hazardous wastes, and any material that a business or local implementing agency has a reasonable basis to believe would be injurious to the health and safety of persons or would be harmful to the environment if released. While Palm Desert has nonresidential land uses, it has very few generators of hazardous or toxic materials. Potential uses associated with possible hazardous materials production may include commercial, quasi-industrial or medical operations. The city and SOI have one abandoned hazardous waste site that is designated by the US Environmental Protection Agency (EPA) as a Superfund site (EPA 2014). The site, Enfield Chemical, is located at 77539 Enfield Court, just south of Page 756 CHAPTER 8: GENERAL PLAN 124 | CITY OF PALM DESERT I-10 in Palm Desert. Although listed as a Superfund site, this site is not on the EPA National Priority List for cleanup, and only requires site cleanup and material removal. The potential for exposure to potentially hazardous materials in Palm Desert results primarily from the transport of hazardous materials. As of 2015, one registered transporter of hazardous materials is located in the community. In addition, major transportation corridors such as I-10 may be used to transport hazardous materials; accidents could result in release of hazardous materials. Major natural gas transmission lines provide another potential source of hazardous materials exposure. As of 2012, transmission lines for natural gas run parallel approximately two miles north of I-10 and transmission lines for hazardous liquid are located along the I-10 corridor (PHMSA 2012). The City jointly participated with Riverside County and other jurisdictions to adopt the Riverside County Hazardous Waste Management Plan. The plan supports the safe management of hazardous materials and waste products with identification of types of wastes and programs to manage them. Airport Operations Hazards Hazards from airports can result from accidents during takeoff and landing. Airports can also pose issues associated with land use incompatibilities. Bermuda Dunes Airport is the closest airport to the city and is located within the SOI. This privately owned public use airport encompasses over 90 acres. For the 12-month period ending April 30, 2014, the airport had approximately 27,000 aircraft flights at an average of 74 per day. Terrorism and Civil Disturbances Numerous targets and locations for potential terrorist and civil disturbances are present throughout California and Riverside County. Areas that may serve as targets include government facilities, schools, religious institutions, gathering places (for example, shopping centers, entertainment venues), medical clinics, utility infrastructure, transportation infrastructure, water storage facilities, locations of high-profile individuals, and financial institutions. Palm Desert contains potential target locations such as these and is regionally located near others. The Riverside County Emergency Management Office is actively involved with planning for terrorism and other human-caused events. Due to the sensitive nature of these threats, they are not addressed in extensive detail in this public document. Critical Facilities Critical facilities provide essential community functions that the City has prioritized as meriting additional attention for emergency preparation. These can include both public and private assets. Critical facilities identified in the City’s LHMP include City Hall, local fire stations, the Sheriff’s Station, the Palm Desert Corporation Yard, local schools, the waste water treatment plant, and the Joslyn Center. Emergency Preparedness and Coordination The City of Palm Desert actively prepares to safeguard the community from the numerous potential hazards that could occur. The City undertakes several emergency preparedness activities, establishing procedures and responsibilities for Page 757 CHAPTER 8: SAFETY GENERAL PLAN | 125 emergency response. Land use rules and service providers also play a role in achieving readiness for hazards and emergencies. Additionally, the City is supported by several other external entities to provide response services. Emergency Preparation The City of Palm Desert has established a framework for emergency preparation and response. Key preparation tasks and tools are outlined below, including an overview of roles identified in the EOP. Emergency Operations Center The City’s Desert Emergency Operations Center (EOC) is the central management entity responsible for directing and coordinating the various City departments and other agencies in their emergency response activities. The EOC also serves as the physical location from which information and resources are coordinated. The City’s Emergency Operations Plan establishes City Hall as the primary EOC, with an alternate center located at the City Corporation Yard. The EOP provides guidance for activation and deactivation of an Emergency Operations Center, including an action plan for the EOC in event of an emergency. Emergency Notification Program The City of Palm Desert is a member of Riverside County's Emergency Alert System (EAS). The EAS is a statewide network of commercial broadcasting stations and interconnecting facilities authorized by the Federal Communications Commission (FCC) to operate during national disasters or emergencies. The EAS provides immediate warnings for hazards such as flash floods, child abductions, or needs for evacuation. Emergency Services – Peak-Load Water Supplies The availability of water greatly affects the City’s ability to effectively respond to any occurrences of fire. Water services in the Coachella Valley come from the Coachella Valley Water District (CVWD). The CVWD provides domestic water services to Palm Desert using wells to extract groundwater from the Whitewater River subbasin. The groundwater supply consists of a combination of natural runoff, inflows from adjacent basins, returns from groundwater, recycled water, and imported water use. Drinking water is met primarily from groundwater sources, while irrigation water is supplied primarily from recycled wastewater and imported water. Annual demand for groundwater has exceeded the ability of the subbasin to recharge, resulting in overdraft conditions. The CVWD, recognizing the need for other sources of water to reduce demand on groundwater, initiated water reclamation in 1967 and currently operates six water reclamation plants (WRPs) in the valley. Recycled water from two of these facilities has served golf course and greenbelt irrigation in the Palm Desert area for many years, reducing demand on the groundwater basin. A third facility (WRP 7), located north of Indio, began providing recycled water for golf course and greenbelt irrigation in Palm Desert in 1997. The CVWD continues to expand recycled water services to golf courses and other nonpotable needs to reduce peak-load supply. Typically, demand is highest during summer months because of water needs for landscaping. Demand for recycled water exceeds the CVWD’s current supply and would require additional infrastructure for recycled water connections. The district has plans to expand pipeline connections to the Mid-Valley Pipeline (MVP) recycled water system, with the potential to connect Page 758 CHAPTER 8: GENERAL PLAN 126 | CITY OF PALM DESERT at least 10 additional golf courses. Completion of the MVP project would further reduce demands on groundwater and enhance the City’s ability to meet peak-load water supplies during an emergency. Emergency Access and Response Evacuation Routes Key evacuation routes in the city consist primarily of the north–south connections between Palm Desert and I-10 and Highway 111, including Monterey Avenue, Portola Avenue (following the planned construction of the interchange), Cook Street, and Washington Street. Both Monterey Avenue and Washington Street provide all- weather bridges to the highways. Cook Street and Portola Avenue also provide connections across the Whitewater River. Coordination with Riverside County will be critical to support connections to unincorporated SOI areas. Areas of the SOI north of Interstate 10 have higher potential for isolation in case of a hazard. In the southern SOI, areas along State Route 74 such as Royal Carrizo could face similar challenges of isolation in case of a hazardous event. A process to identify evacuation routes appropriate to given hazards is established in the City’s EOP. City departments are responsible for development of department- specific Standard Operating Procedures and Response Plans with evacuation routes, with varied priorities based on hazard. Emergency Access – Roadway Widths To ensure the community is accessible to emergency response personnel, the City establishes minimum roadway widths and access requirements. Section 26.40.040 of the Palm Desert Municipal Code establishes minimum roadway widths for subdivision development. Minimum widths range from 24 to 106 feet, with standards that vary based on street parking characteristics. To date, roadway widths or parked vehicles have not hindered emergency response access. Emergency Services Agencies and Organizations The City’s Risk Management Department coordinates and manages Palm Desert’s emergency services and providers. The City’s Risk Manager serves as the community’s emergency manager. Fire protection, first response emergency medical services, and natural disaster preparedness services in Palm Desert are provided by the Riverside County Fire Department (RCFD), in cooperation with the California Department of Forestry and Fire Protection (Cal Fire). As of 2015, Palm Desert had a total Fire Department staffing of 44 positions. Emergency Dispatch Services Regional communications and dispatch services are provided by the RCFD, which serves approximately 1,360,000 residents in an area spanning 7,200 square miles. RCFD is an all risk, full-service fire department with three fire stations located strategically throughout the City of Palm Desert to provide highly effective protection: Station 71 serving North Palm Desert at 73995 Country Club Drive, Station 33 serving Central Palm Desert at 44400 Town Center Way, and Station 67 serving South Palm Desert at 73200 Mesa View Drive. The city participates in a regional cooperative agreement and benefits from resources responding from other nearby stations, ensuring that peak loads and major incidents are handled promptly. Page 759 CHAPTER 8: SAFETY GENERAL PLAN | 127 In 2013, the RCFD responded to 133,536 total incidents and 8,172 calls for service in Palm Desert. The average en-route-to-on-scene response time was 3.6 minutes, with 86.2 percent of call response under 5 minutes. There are no service gaps in the city. All areas within the city, including those in SRAs/VHFHSZ, receive adequate emergency services. Flood Services Countywide, flood control services are provided by the Riverside County Flood Control and Water Conservation District. The district has the responsibility of protecting people, property and watersheds in the county from flood damage. District tasks include regulation of drainage and development in the floodplain, the construction of channels and flood facilities, and flood warning and early detection. Both the Coachella Valley Water District 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. The City participates in stormwater management related to the National Pollutant Discharge Elimination System (NPDES). For purposes of NPDES permits, the City serves as a co-permittee with the County of Riverside, CVWD, Riverside County Flood Control and Water Conservation District, and municipalities in the Whitewater River subbasin. Police Services The Riverside County Sheriff’s Department provides contract services in Palm Desert and the SOI as the Palm Desert Police Department (PDPD). Services include general law enforcement and police protection services. As of early 2015, the PDPD operated with 81 staff members. Regional Services and Coordination The City of Palm Desert participates in regional forums to monitor and coordinate emergency preparation tasks. The City participates in the Coachella Valley Emergency Managers Association, in addition to the Coachella Valley Association of Governments’ (CVAG) Public Safety Group. Both forums provide an opportunity to identify and prepare regional evacuation routes and other key emergency response tasks. In coordination with the RCFD Office of Emergency Services, the City of Palm Desert also plans for extreme heat conditions. Together with the County, the City operates two local cooling stations during extreme heat occurrences: the Joslyn Center located at 73750 Catalina Way, and the Palm Desert Community Center located at 43900 San Pablo Avenue. These cooling centers offer a safe, air-conditioned space in times of extreme heat. Page 760 CHAPTER 8: GENERAL PLAN 128 | CITY OF PALM DESERT Goals and Policies Goal 1. Leadership. City leadership that promotes collaboration within the region that sustains maximum resilience to emergencies and disasters. Policies 1.1 Hazards Information. Establish and maintain a database containing maps and other information that identifies and describes the community’s hazards. 1.2 Local Hazard Mitigation Plan. Maintain and regularly update the City’s Local Hazard Mitigation Plan (LHMP) as an integrated component of the General Plan, in coordination with Riverside County and other participating jurisdictions, to maintain eligibility for maximum grant funding. 1.3 Hazards Education. Consult with agencies and partners to provide public education materials on safe locations and evacuation routes in case of emergency or hazardous event. 1.4 Critical Facilities. Prepare existing critical facilities for resilience to hazards and develop new facilities outside of hazard-prone areas. 1.5 Emergency Plans and Processes. Consult with the Coachella Valley Emergency Managers Association and CVAG to maintain and update the City’s Emergency Operations Plan, and maintain SEMS compliant disaster preparedness plans for evacuation and supply routes, communications networks, and critical facilities’ capabilities. 1.6 Utility Reliability. Coordinate with providers and agencies including the CVWD and Southern California Edison for access to reliable utilities and water supply to minimize potential impacts of hazards and emergencies to pipelines and infrastructure. 1.7 Citizen Preparedness. Continue to promote citizen-based disaster preparedness and emergency response through Riverside County’s Community Emergency Response Team (CERT) training and certifications. Page 761 CHAPTER 8: SAFETY GENERAL PLAN | 129 Goal 2. Geologic hazards. A built environment that minimizes risks from seismic and geologic hazards, including hazards due to wind erosion. Policies 2.1 Seismic Standards. Consider exceeding minimum seismic safety standards for critical facilities that ensure building function and support continuity of critical services and emergency response after a seismic event. 2.2 Structural Stability. Maintain development code standards to prohibit siting of new septic tanks, seepage pits, drainage facilities, and heavily irrigated areas away from structure foundations to reduce potential soil collapse. 2.3 Seismic Retrofits to the Existing Building Stock. Create a phased program for seismic retrofits to existing public and private unreinforced buildings to meet current requirements. 2.4 Wind Hazards. Support integrated land management for site design and improvements that protect the natural and built environment, including both public and private structures, from hazardous wind events. Goal 3. Flood hazards. A community where flooding and inundation hazards are contained within areas reserved for open space. 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. 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. 3.5 Dam Failure. Disseminate information on dam inundation areas subject to potential risks of flooding in the event of dam failure or seismic hazard, including preparation for seiche events, which can be caused by seismic events and consist of the occurrence Page 762 CHAPTER 8: GENERAL PLAN 130 | CITY OF PALM DESERT of a standing wave that oscillates in a body of water, such as a dam. 3.6 Special Flood Hazard Areas. Locate new essential public facilities out of the Special Flood Hazard Areas (SFHAs) as identified in Municipal Code Title 28. Assess the conditions of existing utilities, roads, and other structures within the SFHAs, and implement risk reduction measures, where necessary. Goal 4. Fire hazards. Existing and future development is protected from wildfire hazards, with decreased frequency and intensity of wildfire incidents despite increased density and urbanization within the community. Policies 4.1 Fire Preparation. Maintain optimal fire readiness and response service in coordination with Riverside County and other agencies. Review inter- jurisdictional fire response agreements and ensure that the agreements and firefighting resources, including water supply, can meet current and future needs, including increased demand from new development and changing fire regimes. 4.2 Fire Hazard Severity Zones. Adopt and implement fire mitigation standards for areas designated as High and Very High Fire Hazard Severity Zones per CalFire, including safe access for emergency response vehicles, visible street signs, and water supplies for structural fire suppression. 4.3 Brush Clearance. Require new development and homeowners associations to maintain brush clearance criteria that meets 120% of the current state requirement for fire hazard severity zones in the city. 4.4 Inventory of Structures for Fire Risk. Prepare an inventory of all structures and ownership information for structures in each fire hazard severity zone in the city and the SOI. 4.5 Fire Education. Disseminate information on fire risks and minimum standards, including guidance for new development in the wildland- urban interface and fire hazard severity zones. 4.6 Future Emergency Service Needs. Require new developments and homeowners associations along the wildland urban interface to house the proper equipment and infrastructure to respond to wildland fire incidents. 4.7 Open Space Preservation. Consult with neighboring jurisdictions, private property owners, and other agencies to identify resource management activities that can both enhance open space areas and reduce wildland fire. Page 763 CHAPTER 8: SAFETY GENERAL PLAN | 131 4.8 New Essential Public Facilities. When planning new essential public facilities for the SOI, avoid locations within any state responsibility area or very high fire hazard severity zone. If not possible, mandate construction methods or other measures to ensure minimal damage to the facilities. 4.9 Existing development in Fire Hazard Zones. Direct the Planning Department Code Compliance Division to identify and track properties that are not in conformance with contemporary fire safe standards adopted by the City, especially of road standards and vegetative hazard. Reach out to these property owners during redevelopment or other permitting processes to work out a mitigation plan to achieve conformance. 4.10 Redevelopment in Fire Hazard Zones. Require all redevelopment in Very High Fire Hazard Severity Zones (VHFHSZ) to comply with the latest California Building Standards Code (Title 24), including the California Fire Code (Part 9). Coordinate with the Fire Department on evaluation of rebuilding after a large fire and require implementation of fire safe design and additional measures where necessary. 4.11 Long Term Fire Hazard Reduction. Coordinate with the Fire Department and consult with private property owners, homeowner associations and other organizations to identify roadside fuel reduction plan, otherwise provide for the long-term maintenance of defensible space clearances around structures, and include fire breaks in the VHFHSZ where appropriate. Goal 5. Extreme weather. Improved quality of life for residents, workers, and visitors during extreme heat events. Policies 5.1 Extreme Heat Vulnerabilities. Analyze and address groups with vulnerabilities to extreme heat, including youth, the elderly, nursing homes, or communities with older structures that lack adequate air conditioning. 5.2 Education on Extreme Heat. Educate visitors and residents on the risks of extreme heat using brochures, public service announcements, and other methods. 5.3 Backup energy sources. Obtain and install backup power equipment for critical public facilities to ensure they are functional during a power failure that might result from extreme weather. 5.4 Below ground utilities. Provide information and education to encourage private stakeholders with formation of assessment districts that would finance and replace overhead electric lines with subsurface lines that will not be affected by fallen trees and branches during windstorms. 5.5 Tree trimming. Support utility companies in their enforcement of the national guidelines on tree trimming and vegetation management Page 764 CHAPTER 8: GENERAL PLAN 132 | CITY OF PALM DESERT around electric transmission and communication lines to prevent or reduce the potential for felled branches or trees to cause power outages and disrupted communications. 5.6 Wind barriers. Encourage the preservation and establishment of additional wind barriers in the form of hedges and tree lines to reduce the effects of dust and sand. Goal 6. Human-caused hazards and hazardous materials. A safe community with minimal risk from hazardous materials and human-caused hazards. Policies 6.1 Site Remediation. Encourage and facilitate the adequate and timely cleanup of existing and future contaminated sites and the compatibility of future land uses. 6.2 Airport Hazards. Upon annexation of areas within the Bermuda Dunes Airport Land Use Compatibility Plan Area, adopt and implement airport compatibility zones for protection of people and property. 6.3 Airport compatibility. Require new development in the vicinity of Bermuda Dunes Airport to conform to the County’s airport land use and safety plans. Notwithstanding the allowable land use intensities and densities set forth by the Land Use and Community Character Element, there may be more restrictive density and intensity limitations on land use and development parameters, as set forth by the Airport Land Use and Compatibility Plan. Additionally, per the Airport Land Use Plan, there may be additional limits, restrictions, and requirements, such as aviation easements, height limits, occupancy limits, and deed restrictions, required of new developments within the vicinity of the airport. 6.4 Wildlife Hazards Study. New developments proposing golf course or significant open space and/or water features shall prepare a wildlife hazard study if the site is within the Airport Influence Area. 6.5 Airport Land Use Commission Review. Before the adoption or amendment of this General Plan, any specific plan, the adoption or amendment of a zoning ordinance or building regulation within the planning boundary of the airport land use compatibility plan, refer proposed actions for review, determination and processing by the Riverside County Airport Land Use Commission as provided by the Airport Land Use Law. Notify the Airport Land Use Commission office and send a Request for Agency Comments for all new projects, and projects proposing Page 765 CHAPTER 8: SAFETY GENERAL PLAN | 133 added floor area or change in building occupancy type located within the Bermuda Dunes Airport Influence Area. 6.6 Federal Aviation Administration Review. Projects that require an FAA notice and review will be conditioned accordingly by the City to obtain an FAA Determination of No Hazard to Air Navigation prior to issuance of any building permits. 6.7 Residential Development near airport. New residential development within Airport Compatibility Zone D shall have a net density of at least five dwelling units per acre. New dwelling units should not be permitted as secondary uses of the Urban Employment Center General Plan Designation within Airport Compatibility Zone C. 6.8 Nonresidential Development near airport. The land use intensity of nonresidential structures within Airport Compatibility Zones B1, C, and D shall be limited as set forth by Table 2A of the Airport Land Use Compatibility Plan. 6.9 Hospitals near airport. Prohibit hospitals within Airport Compatibility Zones B1 and C and discouraged in Airport Compatibility Zone D. 6.10 Stadiums and gathering spaces. Major spectator-oriented sports stadiums, amphitheaters, concert halls shall be discouraged beneath principal flight tracks. 6.11 Regional coordination. Promote coordinated long-range planning between the City, airport authorities, businesses and the public to meet the region's aviation needs. 6.12 Railroad Safety. When considering development adjacent to the railroad right-of-way, work to minimize potential safety issues and land use conflicts associated with railroad adjacency. Page 766 Page 767 Page 768 Page 769 Page 770 Page 771 Page 772 Page 773 Page 774 City of Palm Desert Housing Element Second Draft Proposed Responses Page 1 of 13 Housing Stock Condition: The draft element was revised to state that the City reviewed Code Compliance Division case records for the period of 2014-2021 and found no open cases or citations issued for health and safety violations. However, the element still must estimate the number of units in needs of rehabilitation and replacement. Note: The element currently states (emphasis added) at page III-26: Another measure of potentially substandard housing is the number of housing units lacking adequate kitchen and plumbing facilities. In Palm Desert, there are 198 units (0.8% of all units) lacking complete kitchens and 67 units (0.3% of all units) lacking plumbing facilities. More rental units have deficiencies than homeowner units. These homes could potentially benefit from repair and rehabilitation programs, such as the HIP program described above. As shown in Table III- 46, Quantified Objectives, the City will use the HIP program to correct these deficiencies for the 67 units affected (see Program 2.A). In addition, the following text has been added to page III-27: To further evaluate housing conditions in Palm Desert, the Code Compliance Division queried its records on three separate occasions for residential property code violations, such as structural deficiencies, general deterioration, dilapidation, and faulty plumbing or electrical systems. As of February 2021, there were only 5 active cases of dwelling units with building code violations, all of which were associated with unpermitted construction activity. None of the cases cited structural deficiencies in need of replacement or rehabilitation. Therefore, the City is not aware of any units requiring substantial rehabilitation, other than those described above, and has included those 67 units shown in Table III-16 in its Quantified Objectives (also see Program 2.A). Progress in Meeting the RHNA: The revised element states that 310 units for Site DD will be affordable to moderate-income units but must also demonstrate affordability based upon actual or anticipated sale prices or rents. The following language has been added to page III-87: • The Sands Apartments (Site DD) on Hovley Lane is approved for a total of 388 multi- family rental units. Of those, 78 are required to be affordable for very low income households through an approved Development Agreement that requires that the units be deed restricted. The balance are expected to be market units which will be affordable to moderate income households based on the analysis provided in Table III-44, which shows that rental units are affordable to moderate income households. Sites Inventory: The revised draft element provides data on the City’s site inventory in Table III-47. However, the data is insufficient to determine the adequacy of all sites since the inventory aggregates available sites by Map Keys and APNs (Sites E, LL, A, D, F, P, QQ, and T). The inventory must provide a parcel listing of sites by APN, along Page 775 City of Palm Desert Housing Element Second Draft Proposed Responses Page 2 of 13 with parcel size, zoning, general plan designation, describing existing uses for any nonvacant sites and include a calculation of the realistic capacity of each site. Note: The Table is titled “Vacant Land Inventory…” so no “nonvacant sites” are included. Site A and F are each single parcel sites, and no change has been made. The other sites have been modified in Table III-47, as follows: Table III-47 Vacant Land Inventory of Sites for Extremely Low, Very Low, Low and Moderate Income Units Ma p Ke y Assessor’s Parcel No. GP Zoning (all HOD)** Acreag e Allowab le Density Realisti c Density Potenti al Units Vacant Entitled Sites B 694-310-006 Town Center Neighborhood P.R.-20 12 of 68.2 4 to 20 22.5 269 DD 624-040-037 Town Center Neighborhood P.R.-17.5 17.66 17.5 17.5 78 DD* 624-040-037 Town Center Neighborhood P.R.-17.5 17.66 17.5 17.5 310 E 694-520-019 Small Town Neighborhood; Employment Center P.R.-19 8.055.62 19 18 2117 694-520-020 Small Town Neighborhood; Employment Center P.R.-19 1.2 19 4 PP 624-441-014 through -022 Small Town Neighborhood P.R.-6 1.310.16 3 to 103 to 10 18 10 624-441-01624- 441-0155 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-016 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-017 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-018 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-019 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-020 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-021 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-022 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 QQ 624-440-032 through -036 Small Town Neighborhood P.R.-6 0.1472 3 to 10 81 16 Formatted Table Page 776 City of Palm Desert Housing Element Second Draft Proposed Responses Page 3 of 13 Table III-47 Vacant Land Inventory of Sites for Extremely Low, Very Low, Low and Moderate Income Units Ma p Ke y Assessor’s Parcel No. GP Zoning (all HOD)** Acreag e Allowab le Density Realisti c Density Potenti al Units 624-440-033 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 624-440-034 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 624-440-035 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 624-440-036 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 Subtotal Entitled Sites 409692 Vacant Sites in the Entitlement Process LL 627-122-013 and -003 Small Town Neighborhood R-2, HOD 1.430.16 3 to 10 20 283 627-122-013 Small Town Neighborhood R-2, HOD 1.27 3 to 10 20 25 B 694-310-006 Town Center Neighborhood P.R.-20 12 of 68.2 4 to 20 22.5 H 694-190-087 Town Center Neighborhood P.R.22 14.97 22 22 44 H* 694-190-087 Town Center Neighborhood P.R.22 14.97 22 22 286 C 694-120-0285 Town Center Neighborhood; Suburban Retail Center P.C.-(3), FCOZ 10 of 20.18 7 to 40 24 240 KK 622-370-014 Public Facility/Institu tional P 1.84 N/A N/A 36 Subtotal Sites in Entitlement Process 903634 Vacant Sites A 685-010-005 Regional Retail P.C.-(3), P.C.D. 15 of 64.26 10 to 15 14 200 D 694-130-017 &- 018 Town Center Neighborhood P.R.-22 10.958.4 3 22 20 219169 694-130-018 Town Center Neighborhood P.R.-22 2.52 22 20 50 F 694-510-013 Town Center Neighborhood P.R.-22 16.32 22 20 326 PP 624-441-014 through -022 Small Town Neighborhood P.R.-6 1.310.16 3 to 103 to 10 18 10 624-441-01624- 441-0155 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-016 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 Formatted Table Formatted Table Formatted Table Formatted Table Page 777 City of Palm Desert Housing Element Second Draft Proposed Responses Page 4 of 13 Table III-47 Vacant Land Inventory of Sites for Extremely Low, Very Low, Low and Moderate Income Units Ma p Ke y Assessor’s Parcel No. GP Zoning (all HOD)** Acreag e Allowab le Density Realisti c Density Potenti al Units 624-441-017 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-018 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-019 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-020 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-021 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 624-441-022 Small Town Neighborhood P.R.-6 0.16 3 to 10 1 1 QQ 624-440-032 through -036 Small Town Neighborhood P.R.-6 0.1472 3 to 10 81 16 624-440-033 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 624-440-034 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 624-440-035 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 624-440-036 Small Town Neighborhood P.R.-6 0.14 3 to 10 1 1 Subtotal Vacant Sites 761759 Total All Vacant Sites 2,0932,0 71 * Moderate Income Site ** All sites in this Table have been assigned the Housing Overlay District. Zoning for Lower-Income Households: Pursuant to Government Code section 65583.2, subdivision (c)(3)(A) and (B), the element must identify sites with zoning and densities appropriate to encourage and facilitate the development of housing for lower-income households based on factors such as market demand, financial feasibility, and development experience within zones. For communities with densities that meet specific standards (at least 30 units per acre for Palm Desert), this analysis is not required (Section 65583.2(c)(3)(B)). While the revised draft element provides some information on recent project densities, it does not discuss factors such as market demand or financial feasibility to support the densities identified on Table III-47. In addition, it appears that Site A, Site PP and Site QQ only allow a maximum of 10-15 units per acre but are being identified to accommodate the RHNA for lower-income households. As stated in the element, affordable housing projects in the City have had densities ranging Page 778 City of Palm Desert Housing Element Second Draft Proposed Responses Page 5 of 13 from 15-28 units per acre. The element does not provide sufficient evident that densities in in the10-15 range provide the financial feasibility needed to support housing affordable to lower-income households and should not identify sites within this density range as appropriate for the lower-income housing need. The element could reassign this capacity to the moderate-income housing need, or the City could rezone to higher density to continue utilizing those sites to accommodate the RHNA for lower-incoming households. Note: As the finding above relates to Sites PP and QQ, they are specifically described in the Element as being sold to the Coachella Valley Housing Coalition for self-help housing (page III- 88), and are entitled. Since the Element was submitted to HCD, CVHC has closed escrow, and construction will begin in April of 2022. This is substantial evidence that the density range is appropriate for affordable housing. The paragraph on that project under “Entitled Projects” has been modified as follows: • In May 2020, the City conveyed 14 vacant parcels on Merle Street to the Coachella Valley Housing Coalition (CVHC) for the development of 14 detached single-family, self-help ownership homes for very low and low income households. CVHC will deed restrict the homes when they are developed. The parcels closed escrow in December of 2021, and construction will start in April of 2022. CVHC will deed restrict 3 homes for very low income households, and 11 lots for low income households for a period of 45 years. These lots are shown on the inventory as sites PP and QQ. As it relates to Site A, the land is part of a larger Specific Plan being prepared by a private developer. The City wishes to see 200 of the 1500± units developed for affordable housing, and has made that clear to the developer. It does not, however, have the ability to rezone the property in the absence of the developer’s willingness to do so. Table III-47 shows that there is capacity for 2,071 units. Of those, 1,326 are either entitled or pending entitlement (730 for lower income units and 596 for moderate income units). The City’s RHNA for lower income units is 1,135, and 461 for moderate income units. There is a need for an additional 405 lower income units under the RHNA, after the entitled and pending entitlement sites are deducted. Table III-47 shows capacity for an additional 745 units on vacant land. So Table III-47 provides for 340 more units than the City requires to meet the RHNA. As already stated in the Element: These entitled and pending entitlement projects will result in a total of 730 units affordable to very low and low income households, and 596 units affordable to moderate income households. With completion of these projects, the City will need to accommodate an additional 405 units for very low and low income households, and would have an excess of 135 moderate income units when all entitled and pending entitlement sites in Table III-47 are developed. Table III-47 also shows that the City has capacity for 745 units on vacant sites, almost double the 405 needed during the planning period to complete the RHNA. Large Sites: Table III-47 includes sites larger than ten acres and states that these sites are not constrained from development based on proposed projects on ten acres or more being developed. While the draft element was slightly revised to account for densities and Page 779 City of Palm Desert Housing Element Second Draft Proposed Responses Page 6 of 13 to add the Carlos Ortega Villas project (p. III-87), the analyses must demonstrate developments of equivalent size were successfully developed during the prior planning period for an equivalent number of lower-income housing units as projected for these large sites or provide other evidence that the site is adequate to accommodate lower- income housing. (Gov. Code §65583.2, subd. (c) (2) (A) Additionally, the analysis should state whether larger sites such as Site A and Site F have the potential for being split and, if so, the element should contain a program or programs to facilitate the splitting of larger lots. The Element does provide evidence of existing development (entitled projects). In addition, the language on page III-85 has been modified as follows: Lands provided in the inventory have been calculated at a density of 15 to 23 units per acre. The density range assumes that 80% intensity will be achieved based on: an average unit size of 1,000 square feet, 28 units per acre can be achieved with 3-story buildings, which is the current height limit in the Planned Residential (PR) zone. This also assumes common area open space in compliance with Zoning requirements, and surface parking. As this zone allows building coverage of 40%, there is more than sufficient space to accommodate the density assumed in the inventory. Further, the density assumptions are conservative compared to typically built densities in each of the zones. The most recent affordable housing projects built in the City were constructed at densities of 15 to 28 units per acre, including Carlos Ortega Villas, at 13 units per acre , and the City currently has entitled or proposed affordable housing projects at densities of 17.5 to 27 units per acre on parcels of 10 acres or more: • The Sands, Site DD: 388 units on 17.5 acres (22/acre); • Pacific West, Site B, 269 units on 12 acres (23/acre); • Millennium private site, Site H, 330 units on 15 acres (22/acre), and • Millennium City site, Site C, 240 units on 10 acres, 24/acre). In addition to these projects, the City of La Quinta, east of Palm Desert, developed the Coral Mountain Apartments in 2018, providing 176 units on 11 acres of land, at a density of 16 units per acre. All four of the projects in the City and the La Quinta project are on large sites (10 acres or more), and have been built, entitled or are in the entitlement process. Significantly, the two most recent projects in which the City is participating, the Pacific West and Millennium City site, are 10 acres or more. Large sites are also included in Table III-47, sites A and F are both planned for larger sites. Although the sites are feasible at 15 and 16 acres, respectively, Program 1.F is also provided to encourage subdivision of these parcels to smaller sites, with the provision of incentives. Page 780 City of Palm Desert Housing Element Second Draft Proposed Responses Page 7 of 13 Program 1.F Although the affordable housing projects currently approved or being entitled in the City occur on parcels of 10 acres or more, the City will encourage further land divisions resulting in parcel sizes that facilitate multifamily development affordable to lower income households in light of state, federal and local financing programs (50-100 units) as development proposals are brought forward for sites A and F. The City will discuss incentives available for land divisions (2-5 acres) encouraging the development of housing affordable to lower income households with housing developers as proposals are brought forward. The City will offer incentives for land division encouraging the development of affordable housing including, but not limited to: • priority to processing subdivision maps that include affordable housing units, • expedited review for the subdivision of larger sites into buildable lots where the development application can be found consistent with the Specific Plan, • financial assistance (based on availability of federal, state, local foundations, and private housing funds). Responsible Agency: Planning Department Schedule: As projects are proposed Small Sites: The initial draft element identified sites at less than a half-acre and included several sites that appear to require consolidation. The revised draft element now states that site LL is City-owned and will be developed for 28 units and that the City will consolidate the lots when development occurs. However, the element still requires analysis to demonstrate the lot consolidation potential of other sites within the inventory such as Site D, Site PP, Site QQ, and Site T. For example, the analysis should describe the City’s role or track record in facilitating small-lot consolidation by affordability level, policies or incentives offered or proposed to encourage and facilitate lot consolidation, conditions rendering parcels suitable and ready for redevelopment, recent trends of lot consolidation, and information on the owners of each aggregated site. Site D is comprised of two lots of 8.4 and 2.5 acres – neither of these lots qualify as small sites. In regards to sites PP and QQ, as shown above, those sites are now owned by CVHC, and are scheduled for construction in April of 2022. Site T has been removed from the inventory. Processing and Permit Procedures: While the draft element was revised to describe approval procedures for the architectural review process, the element must still describe approval procedures for the Precise Plan review including a description of the approval bodies. The analysis must be revised to evaluate the Precise Plan processing and permit procedures and their impacts as potential constraints on housing supply and affordability. The description of the Precise Plan process was already in the Element at page III-53. The paragraph has been modified for clarity: The City requires tract map review and approval for all single-family home tracts and a precise plan for multi-family projects, both of which can be processed concurrently with any other permit Page 781 City of Palm Desert Housing Element Second Draft Proposed Responses Page 8 of 13 that might be required. For either, the review process is a simple analysis that assures that the project’s design meets the requirements of the zone in which it occurs. Applications for Precise Plans, when complete, are circulated to other City departments for comments. The project Precise Plan is then reviewed by the Architectural Review Commission (ARC) and approved by the Planning Commission. The ARC provides technical review of the proposalPrecise Plan application, including the provision of parking, trash enclosures and similar standards, and reviews the landscaping plans for water efficiency. The ARC meetings are public, but are not noticed hearings. ARC review is scheduled within two to three weeks of an application being found complete, and usually precedes Planning Commission hearing by three to four weeks. The ARC provides recommendations on the Precise Plan to the Planning Commission, which takes action on Precise Plan applications. Public notice and mailings are made 10 days prior to a Planning Commission hearing. The findings needed for approval of either a tract map or precise plan pertain to the project’s consistency with State law; the General Plan and Zoning Ordinance; public health and safety; and the site’s physical ability to accommodate the project. The findings focus on General Plan and Zoning consistency, are not subjective and do not pose a constraint to development. The average processing time for a typical application is 4 to 6 months, including the recently approved Montage single family homes, which received approval in 6 months, which is generally consistent with most Valley cities, and does not represent a constraint. The City also has a building permit streamlining process, for a fee, and allows “at risk” building permit applications, which can be submitted immediately following ARC review, and prior to Planning Commission approval. As described above, neither the process for a Precise Plan review, nor the time required are constraints to the development of housing. General: The revised element continues to include programs without specific metrics or objectives. Programs must demonstrate that they will have a beneficial impact within the planning period. Beneficial impact means specific commitment to deliverables, measurable metrics or objectives, definitive deadlines, dates, or benchmarks for implementation. Specific programs are addressed individually below. Without additional information, we are unable to guess whether this statement intends us to modify any others. Program 5.C (CDBG for Homelessness): The Program should be revised to state how the City will encourage organizations to apply and the role the City plays in delivering the funds. The program has been modified as follows: Program 5.C The City will continue to make direct appeals to shall encourage local organizations, such as the Coachella Valley Rescue Mission, Martha’s Village and Catholic Charities, to apply to the City for the award of CDBG funds for homeless services, including announcements on its website and social media of the availability of funds, the schedule for applications, and the award schedule, as Page 782 City of Palm Desert Housing Element Second Draft Proposed Responses Page 9 of 13 it has for many years. The City Council will continue to allocate available funds to these and other organizations that apply from its annual City allocation. Responsible Agency: Finance Department Schedule: Annually with CDBG funding cycle Program 8.A (Housing Overlay and ADUs): The Program should be revised to state what standards are being maintained and if there are any potential revisions to the zoning code that need to be implemented. If revisions are needed to comply with state law, then the program should commit to a definitive timeframe for implementation of those revisions. The intent of the Program was to provide policy support to assure that HOD and ADU were addressed in the Zoning Ordinance. The program has been modified regardless, to address the finding. Program 8.A The City shall maintain the Housing Overlay District to include flexible development standards, density bonuses, design criteria, and parking reductions for the development of a wide variety of housing products which provide a minimum of 20% of all units at income-restricted rents, or at least one unit for smaller residential projects, and to eliminate the public hearing requirements and waive City plan check/inspection fees and potentially other fees. Theand Accessory Dwelling Unit standards shall be maintained consistent with State law in the Zoning Ordinance. Responsible Agency: Community Development Department Schedule: Annually review with state General Plan report Program 11.B (Transit Agency): The Program should be revised to clarify how the City will coordinate and specific actions the City will take to ensure that transit is and will be available to residents with limited access. For HCD’s information, SunLine is a JPA over which the City has limited authority. A member of Council sits on the Board, as does a member of each of the member agencies’ Council. The program has been modified to the extent it can be. Program 11.B Continue to coordinate with SunLine Transit Agency by continuing to provide it with all development applications, to encourage it to expand services that provide reliable transportation options to low income, disabled, senior, and other residents with limited access. Responsible Agency: Community Development Department Schedule: 2022-2029 As noted in Finding A-3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows: Page 783 City of Palm Desert Housing Element Second Draft Proposed Responses Page 10 of 13 With the changes proposed herein, we believe that the analysis is sufficient. Individual programs are addressed below. Program 1.A (Affordable Housing Developers): This Program should be revised with specific timeframes (e.g., month and year) and benchmarks for the Village (KK) and Millennium (F) projects. The Program should be revised to provide specific timeframes and benchmarks for these developments and monitor these developments. The program has been modified as follows: Program 1.A The City shall work with affordable housing developers, non-profit agencies and other stakeholders to implement the following affordable housing projects for extremely low, very low, low and moderate income households during the planning period. • 21 units at Palm Desert 103 (Site E): annually contact the landowner and provide them with current City programs and incentives for the construction of the remaining units within the project. Meet with the land owner annually, and provide the requirements of the Development Agreement for the site to encourage its development. • 36 units at Arc Village (Site KK): For this Housing Authority-owned site, the Housing Authority and City will continue to work with Desert ARC and affordable housing developers to secure funding for these units for with priority to developmentally disabled persons. The Housing Authority and City will participate in the preparation of applications for State funding and reinstate funding assistance when an application is prepared. The Housing Authority and City will promote the site to developers through its website, and annually meet with Desert ARC to encourage development. • 66 units at Millennium (Site F): the City will continue to work with the developer to process the pending entitlements and finalize the affordable housing covenants consistent with the existing Development Agreement. The application is expected to be reviewed by the Planning Commission by March of 2022. Responsible Agency: Community Development Department and Housing Authority Schedule: Continuous as these projects move forward Program 1.B (Public/Private Partnerships): The program should be revised to monitor these developments and offer specific schedules for these monitoring activities. Additionally, the Program should be revised to provide back-up measures if any projects are subsequently denied. The programs have been modified to address scheduling. As regards monitoring, all three projects in 1.B are under existing agreements with the City, as described on page III-89 of the Element. The agreements are the monitoring tools and their provisions have been replicated below. There is no evidence provided by HCD that the projects will be denied, nor does the City have any evidence that denial is possible. No change can be made to address such a speculation. Page 784 City of Palm Desert Housing Element Second Draft Proposed Responses Page 11 of 13 Program 1.B The City shall pursue the planning and implementation of the following projects for extremely low, very low, low and moderate income households during the planning period. The City will utilize public-private partnerships, grants and third party funding for these projects, and density bonus incentives. 1.• 240 units at Millennium City Site (Site C): the City shall enforce the terms of its existing agreement with the developer of this project, including maintaining project schedules and expediting processing of applications. A minimum of 15% of the units will be reserved for extremely low income residents. Entitlement applications are expected in 2022, financing will be secured in 2023. and construction is expected in 2024. 2.• 28 units at Sagecrest Apartments (Site LL): the City Housing Authority will complete the RFP process in 2022, and establish an agreement with the successful developer for construction of the units by 20252024. A minimum of 15% of the units shall be reserved for extremely low income residents. The DDA for the project includes a requirement that the units be built by 2024. 3.• 269 units at Gerald Ford, west of Portola (Site B): the City will maintain the schedule established in the existing agreement with the developer, participate in funding applications, and participate in the funding through the existing land sale agreement, to reach completion of construction by 2024. The project was approved by the Planning Commission in July of 2021. The developer is actively involved in securing CDLAC/TCAC and other funding, and expects to begin construction in 2023. Responsible Agency: Community Development Department and Housing Authority Schedule: As described above, 2022-2025 Program 1.C (Encourage Housing for Lower-income Households): The Program should be revised to monitor these developments and offer specific schedules for these monitoring activities. The Program should also offer a definitive timeline other than the entire planning period and back-up measures if any projects are subsequently denied. Site I has been removed from the inventory, and deleted in the program. For the other two sites, the following modifications have been made. We do not have any reason to think that either project would be denied. Program 1.C The City shall encourage and facilitate the development by private parties of the following projects for extremely low, very low, low and moderate income units: • 200 units at Key Largo (Site A): the City will continue to work with the land owner in the completion of entitlement applications for the site, including the provision of Density Bonus incentives, fee waivers and other incentives as appropriate. The City will meet with the developer annually, and encourage the completion of the Specific Plan by December of 2024, and construction beginning in January of 2026. Formatted: Indent: Hanging: 0.36", Bulleted + Level: 1+ Aligned at: 0.25" + Indent at: 0.5", Don't keep withnext, Don't keep lines together, Tab stops: Not at 0.5" Formatted: Indent: Hanging: 0.41", Bulleted + Level: 1+ Aligned at: 0.25" + Indent at: 0.5", Don't keep withnext, Don't keep lines together, Border: Left: (Noborder), Tab stops: Not at 0.5" Page 785 City of Palm Desert Housing Element Second Draft Proposed Responses Page 12 of 13 • 78 units at the Sands (Site DD): the City will maintain contact with the land owner and participate in funding efforts as the developer applies for TCAC and other funds for the project. The City will process the pending application amendments by June of 2022, and assist in the preparation of funding applications by March of 2023, and construction beginning by June of 2024. • 320 units within the University Neighborhood Specific Plan area (Site I/5): the City will maintain contact with the landowner and provide incentives, including Density Bonus and fee waivers, as appropriate, to encourage development of these properties for housing affordable to very low and low income households. 1. The City will offer incentives, including Density Bonus, fee waivers and reduced building permit fees for those projects including a minimum of 15% of units affordable to extremely low income households. Responsible Agency: Planning Department Schedule: 2022-2029As provided above. Program 9.A (Density Bonus): The Program should be revised with a specific date for completing amendments. The program has been modified as follows: Program 9.A Revise the Zoning Ordinance to ensure compliance with State law as it pertains to density bonus by October of 2022 to address the changes contained in AB 2345, and as State law changesrequirements throughout the planning period. Responsible Agency: Community Development Department Schedule: at regular Zoning Ordinance update As noted in Finding A4, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. In addition: Program 1.H (SB 35): The Program should be revised to offer a definitive date for implementation of the SB 35 requirements (e.g., June 30, 2022). As it relates to Finding A4, the analysis of Precise Plan processing has been modified above. No constraint exists. As it relates to the program, it has been amended as follows: Program 1.H The City shall establish an SB 35 planning application and process that contains the requirements of the law, the required objective development standards, and the processing requirements for these projects. Responsible Agency: Planning Department. Formatted: Indent: First line: 0", Border: Left: (Noborder) Formatted: Indent: Left: 0.5", No bullets ornumbering, Tab stops: Not at 0.5" Page 786 City of Palm Desert Housing Element Second Draft Proposed Responses Page 13 of 13 Schedule: Fiscal Year 2021-June 2022 Public Participation: The draft element includes a revised summary of the public participation process (page III-93), which now states that the City held additional study sessions. However, it does not demonstrate that diligent efforts were made to involve all economic segments of the community in the development of the housing element, especially low- and moderate-income groups, nor does it address the availability of materials in multiple languages, surveys, or other efforts to involve such groups and persons in the element throughout the process. In addition, HCD understands the City made the element available to the public in June of 2021 prior to an additional study session on September 9, 2021. The element also states that following the September study session the revised draft element was posted on the City’s website. However, the element should indicate when the revised draft was made available for comments prior to submitting to HCD on September 28, 2021, if comments were received, and how those comments were incorporated. The text has been modified as follows: The Housing Element was posted on the City’s website in June of 2021. The City also held an additional Study Session with the City Council on amendments to the Housing Element on September 9, 2021. Following that Study Session, on September 10th, the revised Draft Element was posted on the City’s website, and notices sent to community organizations, all of the participants in the City’s previous workshops, and all those to whom workshop invitations had been sent to invite comments on the revised Element, prior to its resubmittal to HCD on September 28th. No comments were received during the comment periodthis time. Formatted: Superscript Page 787 CITY OF PALM DESERT LEGAL NOTICE CASE NOS. GPA 21-0002 NOTICE OF A PUBLIC HEARING BEFORE THE PALM DESERT CITY COUNCIL TO CONSIDER APPROVAL OF GENERAL PLAN AMENDMENT 21-0002 UPDATING THE CITY’S HOUSING ELEMENT AND SAFETY ELEMENT OF THE GENERAL PLAN The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the California Environmental Quality Act (CEQA), has prepared an Initial Study and Negative Declaration for the updates to the Housing and Safety Elements of the General Plan. Project Location/Description: Project Description: The Housing Element is one of the mandated Elements of the General Plan. It considers the future needs for housing in the City, with a particular focus on affordable housing and housing for special needs households, including the elderly, disabled persons, large families, single-parent households, and the homeless. It also provides the City’s decision-makers with Goals, Policies, and Programs intended to facilitate the development of housing to meet these needs. The period from 2022-2029 planning is being addressed in this Update. In addition, the City is required to evaluate and update its Safety Elements to address impediments to the development of housing sites within the City. Recommendation: Staff is recommending that the City Council adopt a resolution approving amendments to the City’s Housing and Safety Elements of the General Plan. Planning Commission Recommendation: The Planning Commission considered this item at their meetings on January 18, 2022, and February 1, 2022, voting 3-0 (Commissioners Pradetto and De Luna absent) in adopting Resolution No. 2804 recommending approval of the updates to the Housing and Safety Element to the City Council. Public Hearing: The public hearing will be held before the City Council on Thursday, March 10, 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 Draft Housing Element and Safety Element update are available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. at City Hall. Please submit written comments to the Development Services Department. 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: Eric Ceja, Deputy Director of Development Services/Economic Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611, Extension 384 eceja@cityofpalmdesert.org PUBLISH: DESERT SUN NIAMH M. ORTEGA FEBURARY 26, 2022 DEPUTY CITY CLERK Page 788 Page 789 Page 790 Page 791 Page 792 -1- CITY OF PALM DESERT CEQA Environmental Checklist & Environmental Assessment Project Title: Housing and Safety Element Updates, Case Number GPA 21-0002 Lead agency name and address: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Contact persons and phone number: Eric Ceja, Deputy Director Community Development Department City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 Project location: City-wide Project sponsor’s name and address: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 General Plan Designation: All Zoning: All Description of project: Housing Element Update As a required Element of the General Plan, the Housing Element analyzes the existing housing stock and existing and future needs for housing based on demographic data, and provides strategies to meet the housing needs of the City’s residents. The Housing Element focuses on affordable housing and housing for special needs populations, including seniors, disabled persons (including developmental disabilities), large families, single parent households, and the homeless. The Goals, Policies, and Programs identified in this Housing Element will assist the City’s decision makers in facilitating housing development and preservation to address the need. The City is complying with the mandatory update schedule for Housing Elements. This Update addresses the 2022-2029 planning period. During this period, the City has been allocated the following housing units under the Regional Housing Needs Allocation (RHNA) developed by the Southern California Association of Governments (SCAG): Table 1 Regional Housing Needs Allocation, 2022 to 2029 Income Category Number of Units Extremely low income 337 Very low income 338 Low income 460 Moderate income 461 Above moderate income 1,194 Total 2,790 Source: SCAG Page 793 -2- This Housing Element updated statistical figures from the previous planning period (primarily the 2010 Census information to 2018 American Community Survey information), and reassessed housing needs in the City based on changes in demographics and other conditions. For the land inventory identified for future housing development, some sites have been added/removed as availabilities and conditions change. All sites identified in the land inventory in this Update will be developed pursuant to applicable General Plan guidelines and zoning provisions. There is no significant change in policy other than updates in compliance with state legislation. AB 686 was passed by California Legislature in 2018 requiring that all housing elements due on or after January 1, 2021 must contain an Assessment of Fair Housing (AFH) consistent with the core elements of the analysis required by the federal Affirmatively Furthering Fair Housing (AFFH) Final Rule (2015). This Update includes an AFH that analyzes patterns of segregation and equal access to opportunity within the City, consistent with AFFH Final Rule. Safety Element Update The Safety Element Update addressed changes in the requirements of law including flood hazard, fire hazard mapping and emergency preparedness. The Safety Element Update reflects the current fire hazard mapping by CalFire and current FEMA flood hazard zones. The Update also expanded discussion on flood hazard, fire hazard and emergency response by referring to the City’s Municipal Code Title 28 Flood Damage Prevention, the Local Hazard Mitigation Plan adopted by the City in 2017 and Riverside County Multi-Jurisdictional Local Hazard Mitigation Plan approved by FEMA and adopted in 2018. It is important to note that neither the Housing Element Update nor the Safety Element Update will result in any physical development or change in the environment. Both Updates are policy documents which the City will use in reviewing and implementing development in the future, as projects are proposed. Utilities and Service Providers The following agencies and companies will provide service to the City: 1. Sewer: Coachella Valley Water District (CVWD) 2. Water: Coachella Valley Water District (CVWD) 3. Electricity: Southern California Edison (SCE) 4. Gas: Southern California Gas Company 5. Telephone: Frontier, Charter Spectrum 6. Storm Drain: City of Palm Desert Environmental Setting and Surrounding Land Uses Not applicable. The Updates apply to all lands throughout the City. Other public agencies whose approval is or may be required (e.g., permits, financing approval, or participation agreement.) None. Page 794 -3- ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED: The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. Aesthetics Agriculture and Forestry Resources Air Quality Biological Resources Cultural Resources Energy Geology /Soils Greenhouse Gas Emissions Hazards & Hazardous Materials Hydrology / Water Quality Land Use / Planning Mineral Resources Noise Population / Housing Public Services Recreation Transportation Tribal Cultural Resources Utilities/Service Systems Wildfire Mandatory Findings of Significance Page 795 Page 796 -5- EVALUATION OF ENVIRONMENTAL IMPACTS: 1) A brief explanation is required for all answers except “No Impact” answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A “No Impact” answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project falls outside a fault rupture zone). A “No Impact” answer should be explained where it is based on project-specific factors as well as general standards (e.g., the project will not expose sensitive receptors to pollutants, based on a project-specific screening analysis). 2) All answers must take account of the whole action involved, including off-site as well as on-site, cumulative as well as project-level, indirect as well as direct, and construction as well as operational impacts. 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. “Potentially Significant Impact” is appropriate if there is substantial evidence that an effect may be significant. If there are one or more “Potentially Significant Impact” entries when the determination is made, an EIR is required. 4) “Negative Declaration: Less Than Significant With Mitigation Incorporated” applies where the incorporation of mitigation measures has reduced an effect from “Potentially Significant Impact” to a “Less Than Significant Impact.” The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures from “Earlier Analyses,” as described in (5) below, may be cross referenced). 5) Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less than Significant with Mitigation Measures Incorporated," describe the mitigation measures, which were incorporated or refined from the earlier document and the extent to which they address site specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 8) This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to a project’s environmental effects in whatever format is selected. 9) The explanation of each issue should identify: a) The significance criteria or threshold, if any, used to evaluate each question; and b) The mitigation measure identified, if any, to reduce the impacts to less than significance. Page 797 -6- I. AESTHETICS Except as provided in Public Resources Code Section 21099, would the project: Potentially Significant Impact Less Than Significant with Mitigation Incorporated Less Than Significant Impact No Impact a) Have a substantial adverse effect on a scenic vista? ✓ b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings within a state scenic highway? ✓ c) In non-urbanized areas, substantially degrade the existing visual character or quality of public views of the site and its surroundings? (Public views are those that are experienced from publicly accessible vantage point). If the project is in an urbanized area, would the project conflict with applicable zoning and other regulations governing scenic quality? ✓ d) Create a new source of substantial light or glare, which would adversely affect day or nighttime views in the area? ✓ Setting The City of Palm Desert is located in the central Coachella Valley, which extends from the San Gorgonio Pass in the northwest and the Salton Sea in the southeast and is surrounded by the San Bernardino and Little San Bernardino, San Jacinto, and Santa Rosa Mountain Ranges. The San Bernardino, Santa Rosa, and San Jacinto Mountain Ranges rise significantly above the valley floor with peak elevations of 11,503, 8,715, and 10,834 feet, respectively. The surrounding mountains are of high aesthetic value across the valley, including the City of Palm Desert. The City regulates new development to ensure that it does not conflict with or adversely impact scenic resources. State-designated scenic highways in the City include State Route 74 and Highway 111, which is a California eligible state scenic highway. The Municipal Code imposes additional development standards for lands within the Scenic Preservation Overlay District (Section 25.28.080). Discussion of Impacts a-d) No Impact. The Housing and Safety Element Updates are policy documents, and will not impact aesthetics, scenic vistas or light and glare in the City. As future housing projects are proposed, they will be reviewed on a case-by-case basis for potential impacts on aesthetics. General Plan policies and zoning provisions limit building height and prevent construction of bulky buildings that may block scenic vistas. Conformance to Zoning standards, which limit height and mass of buildings, will assure that neither scenic vistas nor scenic quality will be significantly impacted by future development after completion of the Updates. Page 798 -7- A few of the sites in the land inventory are located in the general vicinity of State Route 74 and Highway 111, which are state-designated or eligible scenic highways. These sites do not host any scenic resources such as trees, rock outcroppings, or historical buildings, nor are they located within the Scenic Preservation Overlay District. No impact to these resources will occur. Future housing projects can generate new sources of light and glare; however, residential lighting is generally limited and of low intensity. The City regulates lighting levels and does not allow lighting to spill over onto adjacent property. Municipal Code Chapter 24.16 (Outdoor Lighting Requirements) provides lighting performance criteria and design guidelines for various light sources. The City’s plan check process includes detailed review of landscape and lighting plans. These City standards will assure that development occurring subsequent to the Update will not significantly add to light and glare in the City. No impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016; Palm Desert Municipal Code. Page 799 -8- II. AGRICULTURE RESOURCES In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state’s inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest Protocols adopted by the California Air Resources Board. Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non- agricultural use? ✓ b) Conflict with existing zoning for agricultural use, or a Williamson Act contract? ✓ c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section 12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? ✓ d) Result in the loss of forest land or conversion of forest land to non-forest use? ✓ e) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of Farmland, to non-agricultural use or conversion of forest land to non-forest use? ✓ Setting Agriculture has been a key component in the economy of the Coachella Valley and Riverside County historically. Today, commercial agricultural operations of scale are concentrated in the eastern valley. The City of Palm Desert is predominantly built out with existing urban uses, and does not contain agricultural uses. Per the Palm Desert General Plan and Zoning Ordinance, the City does not contain any land designated or zoned for agricultural uses. While not directly related to agriculture and forest uses, the General Plan includes a potential for golf course reuse that may allow community scale agricultural use. The City’s General Plan does not include Forestry or Forest Production designations, nor does the City have zones for these uses. No forestry or forest production lands occur in the desert climate in the valley. Page 800 -9- Discussion of Impacts a-e) No Impact. According to the Important Farmland Mapping by the Department of Conservation, all sites identified for future housing in the land inventory are designated as Urban and Built-Up Land or Other Land, except a small fraction of site E near Interstate 10 designated as Farmland of Local Importance. However, the site is designated as Planned Residential on the General Plan land use map, is surrounded by existing commercial and residential development, and has been designated for urban uses for years. The loss is considered to have already occurred. There is no land under Williamson Act contract in the City. All sites in the land inventory are designated as and zoned to allow for residential uses. There will be no conflict with any zoning for agricultural/timberland uses or a Williamson Act contract. This Update to the Housing and Safety Elements of the General Plan will not result in any new direct or indirect impact on any agricultural or forest land, nor would it result in the conversion of such land to non-agricultural or non-forest uses. No impact will occur. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016; Palm Desert Municipal Code; Important Farmland: 1984-2018, California Department of Conservation. Page 801 -10- III. AIR QUALITY Where available, the significance criteria established by the applicable air quality management district or air pollution control district may be relied upon to make the following determinations. Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Conflict with or obstruct implementation of the applicable air quality plan? ✓ b) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-attainment under an applicable federal or state ambient air quality standard ✓ c) Expose sensitive receptors to substantial pollutant concentrations? ✓ d) Result in other emissions (such as those leading to odors adversely affecting a substantial number of people? ✓ Setting The City of Palm Desert and the Coachella Valley are located in the Salton Sea Air Basin (SSAB), which covers part of Riverside County and all of Imperial County. The SSAB is characterized by the large scale sinking and warming of air within the semi-permanent subtropical high-pressure center over the Pacific Ocean. The flat terrain near the Salton Sea creates deep convective thermals during the daytime but equally strong surface-based temperature inversions at night. Once the air enters the valley, it gets trapped and influences the local climate. The SSAB is under the jurisdiction of the South Coast Air Quality Management District (SCAQMD). All development within the SSAB is subject to the 2016 SCAQMD Air Quality Management Plan (AQMP) and the 2003 Coachella Valley PM10 State Implementation Plan (2003 CV PM10 SIP). SCAQMD operates and maintains regional air quality monitoring stations at numerous locations throughout its jurisdiction. The City is located within Source Receptor Area (SRA) 30, which includes monitoring stations in Palm Springs and Indio, as well as in the unincorporated community of Thermal. Criteria air pollutants are contaminants for which state and federal air quality standards have been established. The Salton Sea Air Basin exceeds state and federal standards for fugitive dust (PM10) and ozone (O3), and is in attainment for PM2.5 except the City of Calexico. Ambient air quality in the SSAB, including the City of Palm Desert, does not exceed state and federal standards for carbon monoxide, nitrogen dioxides, sulfur dioxide, lead, sulfates, hydrogen sulfide, or vinyl chloride. Discussion of Impacts a-d) No Impact. The Housing and Safety Element Updates are policy documents, which in and of themselves will have no impact on air quality. As future housing projects are proposed, the City will undertake CEQA review and consider their potential impacts on air quality during construction and operation at the individual project level, including criteria pollutant emissions, Page 802 -11- impacts on sensitive receptors, and odors. All sites in the land inventory identified for future housing will be developed accordingly with their General Plan and zoning designations. Future development of these sites will be consistent with the 2016 AQMP, which was based, in part, on the land use plans of the jurisdictions in the region. All future projects will be subject to SCAQMD rules and regulations and City requirements for construction related activities to ensure compliance with the 2016 AQMP and 2003 SIP. Typical measures include, but are not limited to the implementation of fugitive dust control measures (SCAQMD Rule 403.1, Municipal Code Chapter 24.12) and the use of low VOC content coatings (SCAQMD Rule 1113). The City’s General Plan contains several policies under Goal 6. Air Quality that restrict sensitive uses within 500 feet of localized air pollution sources such as Interstate 10 and certain industrial facilities. If such separation distance is not possible, the City will require a health impact assessment (HIA) during project-level CEQA review. Future housing developments proposed under the Housing Element typically will not emit odors that would adversely affect a substantial number of people. Mitigation measures will be implemented, where necessary, in accordance with SCAQMD rules and City requirements to reduce potential impacts to less than significant levels. Mitigation Measures: None required Monitoring: None required Sources: SCAQMD AQMP, 2016; “2003 Coachella Valley PM10 State Implementation Plan,” August 1, 2003. Page 803 -12- IV. BIOLOGICAL RESOURCES Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in local or regional plans, policies, or regulations, or by the California Department of Fish and Game or U.S. Fish and Wildlife Service? ✓ b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California Department of Fish and Game or US Fish and Wildlife Service? ✓ c) Have a substantial adverse effect on federally protected wetlands (including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological interruption, or other means? ✓ d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? ✓ e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? ✓ f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat conservation plan? ✓ Setting The Coachella Valley is located within the Sonoran Desert subunit of the Colorado Desert. The Sonoran Desert contains a wide range of biological resources that are highly specialized and endemic to the region. The central portion of the valley, including the City of Palm Desert, is predominantly composed of sand dunes and sand fields that are divided into three sub-communities: active sand dunes, active sand fields, and stabilized and partially stabilized desert sand fields. Undeveloped portions of the City of Palm Desert host a variety of biological resources. Ten (10) special- status plant species and fifteen (15) special-status wildlife species are known to occur in the City. Due to the loss of viable habitat, some of these species have been listed as threatened or endangered by the federal and state governments. Page 804 -13- The City is within the boundaries of CVMSHCP, a comprehensive Multiple Species Habitat Conservation Plan/Natural Community Conservation Plan encompassing approximately 1,136,400 acres in the Coachella Valley. The City of Palm Desert is a Permittee to the CVMSHCP and as such subject to its provisions. The City is required to enforce the requirements of the Plan and will do so for all future housing projects. Discussion of Impacts a-f) No Impact. The Housing and Safety Element Updates will not generate any construction or development, nor will they impact biological resources. The sites identified for future housing in the land inventory are not located within or adjacent to a conservation area under the CVMSHCP. This Update does not expand new housing sites beyond what is currently allowed under the General Plan. There are generally no streams, rivers, wetlands or riparian habitat on those sites, nor on lands designated for housing in general. Because most of the identified sites are infill sites and occur in an urban setting, they have minimal potential to support wildlife movement or nursery sites. As future housing projects are proposed, the City will require the preparation of biological resource studies, where appropriate, and implementation of mitigation measures to protect biological resources as necessary. New development will be required to pay the Local Development Mitigation Fee (LDMF) implemented by the City under the CVMSHCP. Payment of the LDMF is intended to offset potential impacts of cumulative projects on covered biological species. The City’s General Plan Policy 3.3 under Goal 3. Passive Open Space calls for preservation of natural land features including important or landmark trees. This will be considered during individual project review. Overall, no impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016. Page 805 -14- V. CULTURAL RESOURCES Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Cause a substantial adverse change in the significance of a historical resource pursuant to § 15064.5? ✓ b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to § 15064.5? ✓ c) Disturb any human remains, including those interred outside of formal cemeteries? ✓ Setting The City of Palm Desert lies in the Coachella Valley, which has been home to the Cahuilla Indians for centuries. The Cahuilla Indians are a Takic-speaking people that before European settlement consisted primarily of hunters and gatherers who are generally divided into three groups based on their geographic setting: the Pass Cahuilla of the San Gorgonio Pass-Palm Springs area; the Mountain Cahuilla of the San Jacinto and Santa Rosa Mountains and the Cahuilla Valley; and the Desert Cahuilla of the eastern Coachella Valley. The Coachella Valley saw the first noted European explorations in the 1820’s. By the 1870’s non-native settlements began to occur across the Coachella Valley, as new federal laws opened lands for new settlers. The discovery of underground water sources began to increase farming activities throughout the Valley in the early 20th century. The modern community of Palm Desert was established on the north side of Highway 111, near a now extant water hole. After World War II, the Henderson brothers organized the Palm Desert Corporation to promote their new desert town. In 1946, they started constructing streets and commercial buildings which later became known as Palm Desert. The City soon joined the boom of country clubs and golf courses along with other communities in the Coachella Valley, and was officially incorporated as the 17th City in Riverside County in 1973. The City of Palm Desert Cultural Resources Preservation Committee maintains the Palm Desert Register, a listing of historical landmarks within the City, which includes seven landmarks. Municipal Code Title 29, Cultural Resources, contains provisions to prevent demolition and/or damage to historic resources. Discussion of Impacts a-c) No Impact. The Housing and Safety Element Updates are policy documents and will not impact cultural resources. The Safety Element Update primarily affects fire hazard zones and flood zones, both of which will be used in considering future housing development proposals, but neither of which will impact cultural resources. The sites identified for future housing in the land inventory are vacant and do not contain any known historical resources. When future housing projects are proposed on previously undeveloped Page 806 -15- lands, the City will require an archaeological study during the CEQA review, as required by the General Plan. Mitigation measures such as monitoring and recording and preservation of resources upon discovery will also be required as appropriate. During the Project-level CEQA process, the City will also conduct tribal consultation on potential cultural resources pursuant to AB 52 and/or SB 18. The consultation process is detailed in Section XVIII, Tribal Cultural Resources. There are no known cemeteries or Native American burial sites within the City. However, should human remains be discovered during construction of future housing projects, proper procedures are required under California Health and Safety Code Sections 7050.5 and 7052 and California Public Resources Code Section 5097. The state laws will assure that there will be no impact to cemeteries or human remains. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016. Page 807 -16- VI. ENERGY Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Result in potentially significant environmental impact due to wasteful, inefficient, or unnecessary consumption of energy resources, during project construction or operation? ✓ b) Conflict with or obstruct a state or local plan for renewable energy or energy efficiency? ✓ Setting Energy sources range from nuclear energy, fossil fuels (e.g. oil, coal and natural gas) to renewable sources (e.g. wind, solar, geothermal and hydropower). Southern California Edison (SCE) provides electrical services to the City of Palm Desert. Currently, SCE serves approximately 4.5 million residential service accounts, 575,000 commercial service accounts and 77,000 other accounts in its 50,000 square-mile service area.1 Natural gas is provided by the Southern California Gas Company (SoCalGas). Its service territory encompasses approximately 24,000 square miles in diverse terrain throughout Central and Southern California, from the City of Visalia to the Mexican border.2 Both SCE and SoCalGas offer various programs and incentives for all users to reduce energy consumption. The City of Palm Desert completed its Environmental Sustainability Plan in 2010, which includes measures on the built environment and energy management that promote energy efficiency and renewable power generation. Discussion of Impacts a, b) No Impact. The adoption of the Housing and Safety Element Updates will not generate construction or development directly, and will have no impact on energy resources. Mapping and text updates to the Safety Element relating to fire and flood zones will not impact energy resources. Future housing projects proposed under the Housing Element will utilize energy resources during both construction and operational activities. Construction components including equipment, fuels, materials, and management practices, would be subject to current SCAQMD rules and regulations such as source-specific standards for engines and limits on equipment idling durations. Regional, state, and federal laws and regulations are in place to ensure efficient energy use and will apply to future projects. These include the state Low Carbon Fuel Standard for construction equipment and heavy-duty vehicle efficiency standards, and vehicle fuel efficiency standards set by the EPA and CARB. Future housing developments would result in the consumption of petroleum-based fuels related to vehicular travel. While future housing projects have the potential to increase the overall City 1 Edison International and Southern California Edison, 2019 Annual Report. 2 SoCalGas, Company Profile, https://www.socalgas.com/about-us/company-profile, Accessed February 2021. Page 808 -17- VMTs, the proposed Update will not interfere with evolving fuel efficiency standards and will not result in wasteful, inefficient, or unnecessary consumption of transportation energy resources. Further, housing sites are located in areas where transit, services and job opportunities are nearby, allowing future residents to limit vehicle trips. All residential buildings will be constructed in accordance with the Building Code and California Green Building Standards (California Building Code Title 24) in effect at the time of development, which will ensure the most efficient construction/building technologies are used and benefit overall building operations. The 2019 CBC requires all residential buildings to be constructed net- zero-energy after 2020. Adherence to the applicable laws and standards enforced by government agencies, SCE and SoCalGas will ensure that future housing development is consistent with current energy standards and conservation goals laid out in the City’s Environmental Sustainability Plan (2010). No impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City’s Environmental Sustainability Plan (2010). Page 809 -18- VII. GEOLOGY AND SOILS Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Directly or indirectly cause potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ✓ ii) Strong seismic ground shaking? ✓ iii) Seismic related ground failure, including liquefaction? ✓ iv) Landslides? ✓ b) Result in substantial soil erosion or the loss of topsoil? ✓ c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on-or off-site landslide, lateral spreading, subsidence, liquefaction or collapse? ✓ d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial direct or indirect risks to life or property? ✓ e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems where sewers are not available for the disposal of waste water? ✓ f) Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? ✓ Setting The City of Palm Desert is located in the Coachella Valley on the northern end of the Salton Trough, a tectonic depression formed by regional faulting and extending from the San Gorgonio Pass to the Gulf of Mexico. The geology and seismicity of the valley are highly influenced by the tectonics of the San Andrea and San Jacinto fault systems. Page 810 -19- Episodic flooding of major regional drainages, including the Whitewater River, results in the deposition of sand and gravel on the valley floor. Strong sustained winds emanating from the San Gorgonio Pass cause wind erosion and transport and deposit dry, finely granulated, sandy soils on the valley floor. Regional soils range from rocky outcrops within the mountains bordering the valley to coarse gravels of mountain canyons and recently laid fine- and medium-grained alluvial (stream-deposited) and aeolian (wind-deposited) sediments on the central valley floor. Discussion of Impacts a-f) No Impact. The adoption of the Housing and Safety Element Updates will have no impact on geology and soils. Future development facilitated by the Housing Element Update will result in construction of buildings that will be affected by seismic events and soil composition. According to the City’s General Plan (Figure 8.1), there are no Alquist-Priolo Earthquake Fault Zones within the City. However, the active faults in the region are capable of generating strong earthquakes in the City; for example, the closest branch of the San Andreas Fault has a probable magnitude range of 6.8-8.0 on the Richter scale; the San Jacinto Fault and the Elsinore Fault, located 10 miles and 30 miles southwest of the City, respectively, have a probable magnitude range of 6.5-7.5. Future housing projects will be required to comply with the current edition of the California Building Code (CBC) which includes seismic safety specifications and requirements. Additionally, Palm Desert Municipal Code Section 25.28.110 sets development standards and requirements for areas in the Seismic Hazard Overlay District that must be incorporated into development proposals and requires in-depth geological soils investigations and technical studies. Sites planned for housing development and those identified in the land inventory are not within the Seismic Hazard Overlay on the City’s zoning map. As future housing projects are proposed, they will be required to address geologic and soil hazards during the CEQA process and incorporate mitigation, as necessary. Lands susceptible to landslide hazards are not designated for housing development. Liquefaction is generally not an issue in the City, as the depth to groundwater exceeds 50 feet. Future housing projects will be required to submit and implement a site-specific dust control mitigation plan as part of the grading permit process to minimize potential impacts caused by blowing dust and sand during construction. The City will also enforce NPDES standards, including a water quality management plan (WQMP) and Best Management Practices (BMPs) to prevent erosion or siltation on- or off-site. All sites identified in the land inventory are well-served by the sewer system, and future housing development will be required to connect to the sewer system. No impact will occur regarding septic tanks or alternative wastewater disposal systems. According to the Riverside County General Plan EIR (Figure 4.9.3), most of the City is of low paleontological sensitivity. Potential impacts to paleontological resources will be addressed at the individual project level and mitigation is required by the City as appropriate (General Plan Policies 9.6 & 10). No impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert Zoning Map; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016. Page 811 -20- VIII. GREENHOUSE GAS EMISSIONS Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? ✓ b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of greenhouse gases? ✓ Setting Certain gases in the earth’s atmosphere, classified as greenhouse gases (GHGs), play a critical role in determining the earth’s surface temperature. Prominent GHGs contributing to the greenhouse effect are CO2, methane (CH4), nitrous oxide (N2O), and fluorinated compounds. Sources of GHGs include both natural and anthropogenic (human-caused) processes. Anthropogenic emissions of these GHGs in excess of natural ambient concentrations are responsible for intensifying the greenhouse effect and have led to a trend of unnatural warming of the earth’s climate, known as global climate change or global warming. State laws, such as Assembly Bill 32 (AB 32) and Senate Bill 32 (SB 32), require all cities to reduce greenhouse gas emissions to 1990 levels by the year 2020. SB 32 is the extension of AB 32 which requires the state to reduce greenhouse gas emissions to 40 percent below 1990 levels by 2030. To protect air quality locally and contribute to the state mandate to reduce air quality emissions, the City of Palm Desert has adopted an Environmental Sustainability Plan (2010) that is consistent with the goals of AB 32 and S-3-05, which calls for a statewide GHG emission reduction to 80% below 1990 levels by 2050. GHG Thresholds On December 5, 2008, the SCAQMD formally adopted a greenhouse gas significance threshold of 10,000 MTCO2e/yr that only applies to industrial uses’ stationary sources where SCAQMD is the lead agency (SCAQMD Resolution No. 08-35). This threshold was adopted based upon an October 2008 staff report and draft interim guidance document that also recommended a threshold for all projects using a tiered approach. It was recommended by SCAQMD staff that 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? • Tier 2: Is the project compliant with a greenhouse gas reduction plan that is, at a minimum, consistent with the goals of AB 32? • Tier 3: Is the project below an absolute threshold (10,000 MTCO2e/year for industrial projects; 3,000 MTCO2e/year for residential and commercial projects)? • Tier 4: Is the project below a (yet to be set) performance threshold? • Tier 5: Would the project achieve a screening level with off-site mitigation? Discussion of Impacts a, b) No Impact. The adoption of the Housing and Safety Element Updates will have no impact on greenhouse gas emissions as they will not generate construction or development directly. Page 812 -21- Modifications to the Safety Element relating to fire and flooding areas will not impact greenhouse gas emissions. As individual housing projects are proposed in the future, they will be required to analyze potential impacts on GHG emissions using the tiered GHG thresholds by SCAQMD during the CEQA process. Future projects will be required to adhere to City and SCAQMD rules and regulations related to emission effective at the time development occurs. The 2019 California Building Code requires all residential buildings to be constructed net-zero-energy (ZNE), which will greatly reduce the GHG emissions of future housing projects. The Housing Element also identifies local conservation efforts and opportunities that will help reduce GHG emissions. No impact is anticipated regarding any conflict with the City’s Sustainability Plan and other applicable GHG policies and regulations. Mitigation Measures: None required Monitoring: None required Sources: Palm Desert General Plan, 2016; City’s Environmental Sustainability Plan (2010). Page 813 -22- IX. HAZARDS AND HAZARDOUS MATERIALS Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of hazardous materials? ✓ b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? ✓ c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-quarter mile of an existing or proposed school? ✓ d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, would it create a significant hazard to the public or the environment? ✓ e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project result in a safety hazard or excessive noise for people residing or working in the project area? ✓ f) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? ✓ g) Expose people or structures, either directly or indirectly, to a significant risk of loss, injury or death involving wildland fires. ✓ Setting A hazardous material is defined as a substance or combination of substances which may either (1) cause, or significantly contribute to an increase in mortality or an increase in serious irreversible or incapacitating reversible illness; or (2) pose a substantial present or potential hazard to human health or the environment when improperly treated, stored, transported, disposed of, or otherwise managed. The proper management of hazardous materials is a common concern for all communities, including the City of Palm Desert. Since the 1970s, governments at the federal, state, and local levels became increasingly concerned about the effects of hazardous materials on human health and the environment. Numerous laws and regulations were developed to investigate and mitigate these effects. As a result, the storage, use, generation, transport, and disposal of hazardous materials are highly regulated by federal, Page 814 -23- state, and local laws and regulations. The Palm Desert General Plan Safety Element addresses hazardous materials that may occur in the City and their management, as well as emergency access and response. Discussion of Impacts a-g) No Impact. The Housing and Safety Element Updates are policy documents and will have no impact on hazards and hazardous materials. As future housing projects are proposed, they will be required to consider and address such potential impacts at the project level during CEQA review; however, residential development typically involves minor use, storage, or transport of hazardous materials, and projects are not expected to have significant impacts. The Safety Element Update refers to the updated Local Hazard Mitigation Plan adopted by the City in 2017 and Riverside County Multi-Jurisdictional Local Hazard Mitigation Plan approved by FEMA and adopted in 2018, which provide current guidance on hazard mitigation and emergency response in and around the City. There are many schools located throughout the City, and some are close to the sites identified for future housing in the land inventory. However, as noted, housing development is unlikely to cause significant impacts on hazardous materials, and any such impact would be addressed at the individual project level. According to the California Department of Toxic Substances Control “EnviroStor” database and the State Water Resources Control Board GeoTracker database, the sites identified in the land inventory are not included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5. Future projects are not expected to create a hazard to the public or the environment. They will also be required to comply with police and fire department regulations including adequate emergency access and vehicle turn-around space. Part of the eastern City is located in the Bermuda Dunes Airport Compatibility Zones C and E per the Riverside County Airport Land Use Compatibility Plan (2004). The sites identified in the inventory for future housing development are located in the western half of the City and far from the airport compatibility zones and future noise contours (Exhibits BD-6 and BD-7). The Palm Springs International Airport is located at least 5.6 miles to the northwest. There are no other airports or airstrips located within two miles of the City. Therefore, the proposed Update will not result in a safety hazard or excessive noise for people on the identified housing sites. Primary emergency evacuation routes in the City include I-10, Highway 111, Monterey Avenue, Portola Avenue, Cook Street, and Washington Street. Future development on the sites identified in the inventory will have access to these routes. Future housing projects will be required to comply with police and fire department regulations to assure adequate emergency access and vehicle turn- around space. No impact to emergency access or evacuation routes is anticipated. The Safety Element Update includes the up-to-date fire hazard mapping by the California Department of Forestry and Fire Protection (CalFire). The sites identified for future housing in the inventory are not located within or near any state responsibility area or very high fire hazard severity zone. Future housing projects will be required to adhere to applicable fire codes and would be subject to Fire Department review and inspection. There will be no impact on exposing people or structures to a significant risk associated with wildfire hazards. Page 815 -24- Mitigation Measures: None required Monitoring: None required Source: City of Palm Desert General Plan, 2016; Riverside County Airport Land Use Compatibility Plan, December 2004; State Water Resources Control Board, GeoTracker, accessed April 2021; California Department of Toxic Substances Control “EnviroStor” Database, accessed April 2021; California Fire Hazard Severity Zone Viewer, https://gis.data.ca.gov/datasets/789d5286736248f69c4515c04f58f414, last updated January 13, 2020. Page 816 -25- X. HYDROLOGY AND WATER QUALITY Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Violate any water quality standards or waste discharge requirements or otherwise substantially degrade surface or ground water quality? ✓ b) Substantially decrease groundwater supplies or interfere substantially with groundwater recharge such that the project may impede sustainable groundwater management of the basin? ✓ c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river or through the addition of impervious surfaces, in a manner which would: (i) result in substantial erosion or siltation on- or off-site; ✓ (ii) substantially increase the rate or amount of surface runoff in a manner which would result in flooding on- or off-site; ✓ (iii) create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff; or ✓ (iv) impede or redirect flood flows? ✓ (d) In flood hazard, tsunami, or seiche zones, risk release of pollutants due to project inundation? ✓ (e) Conflict with or obstruct implementation of a water quality control plan or sustainable groundwater management plan? ✓ Setting Domestic Water The Coachella Valley Water District (CVWD) provides domestic water service to the City of Palm Desert. The District’s primary water source is groundwater extracted through a system of wells from the Whitewater River subbasin. In addition to groundwater, CVWD relies on imported water brought to the region by regional canals. CVWD’s domestic water system includes 97 wells with a total daily pumping capacity of 244 million gallons. CVWD has a total of 64 reservoirs, with an average storage capacity of 153.2 million gallons. CVWD also owns and operates the water distribution system, which is generally located under existing streets in the public right‐of-way. Page 817 -26- CVWD is responsible, under the California Water Code, for analyzing its current and future water supply, and assuring that sufficient supply is available to serve land uses within the District, through the preparation of an Urban Water Management Plan (UWMP). CVWD is required to periodically update the Plan. Wastewater Treatment Provider and Sewer System CVWD also provides sewer service to the City of Palm Desert. CVWD maintains sewer trunk lines ranging in size from 4 to 24 inches and five sewer lift stations in City boundaries. Effluent from the City is conveyed to CVWD’s Cook Street treatment plant (Water Reclamation Plant No. 10), which has a total capacity of 18 million gallons per day (mgd), including 15 mgd tertiary treatment capacity as of 2019. CVWD also implements the requirements of the Regional Water Quality Control Board pertaining to domestic water quality and wastewater discharge. Flood Control The City is located on the valley floor where rainfall averages 3 inches annually. Several watersheds drain the adjoining elevated terrain of the San Jacinto and Santa Rosa Mountains towards the valley floor. There are five stormwater channels in Palm Desert: the Whitewater River Channel, and its tributaries: Dead Indian Creek, the Deep Canyon Channel, the Palm Valley System, and the East Magnesia Channel. The City implements standard requirements for the retention of storm flows and participates in the National Pollution Discharge Elimination System (NPDES) to protect surface waters from pollution. Discussion of Impacts a-e) No Impact. The adoption of the Housing and Safety Element Updates will not impact hydrology and water quality. As future housing projects are proposed, they will be required to prepare a Water Quality Management Plan (WQMP) for surface waters in conformance with the NPDES and implement Best Management Practices (BMPs) to address the management of pollutants of concern that may be generated onsite, as identified by the WQMP. The City requires that all projects retain the 100-year storm on site. CVWD’s most recent Urban Water Management Plan (UWMP) indicates that sufficient water supplies are available to serve anticipated future growth.3 Housing sites identified in the Update are consistent with the General Plan, on which, in part, CVWD bases its demand and supply projections. Future projects will be required to comply with Title 24 provisions on efficient use of water. Because the sites identified in the land inventory will be developed according to their General Plan land use designations, CVWD will have adequate water supplies to serve those sites. The Safety Element updates the FEMA Flood Zones map (Figure 8.4). According to FEMA’s Flood Insurance Rate Maps, none of the sites identified in the land inventory are located in or adjacent to a 100-year or 500-year FEMA Flood Zone. The sites are not located in the vicinity of a water body or a dam, and are not subject to impacts of seiches or dam failure. The City is located inland and would not be subject to tsunami. While the General Plan identified potential inundation risk from the Wide Canyon Flood Control Dam located in the Fun Valley, it is managed by the Riverside County Flood Control and Water Conservation District under state laws to ensure dam safety. General Plan Policy 3.5 calls for disseminating information on dam inundation areas and 3 “2015 Urban Water Management Plan, Final Report,” CVWD, July 1, 2016. Page 818 -27- potential risks including dam failure, and no specific risk is identified for the future housing sites. Compliance with standard requirements will minimize any potential impacts regarding hydrology and water quality. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016; 2015 Urban Water Management Plan (Final Report), CVWD, July 1, 2016. Page 819 -28- XI. LAND USE AND PLANNING Would the project: Potentially Significant Impact Less Than Significant w/ Mitigation Less Than Significant Impact No Impact a) Physically divide an established community? ✓ b) Cause a significant environmental impact due to a conflict with any land use plan, policy, or regulation adopted for the purpose of avoiding or mitigating an environmental effect? ✓ Setting The City of Palm Desert seeks to maintain a desirable living environment and robust economy through careful planning of a diversity of land uses framed by preserved hillsides and desert open space. Except the larger vacant parcels in the northern City, infill development will be prioritized to balance growth and protection of the valued natural environment. Discussion of Impacts a-b) No Impact. The adoption of the Housing and Safety Element Updates will have no impact on land use and planning. The sites identified for future housing in the land inventory are designated for residential uses in the General Plan and Zoning Code, and will be developed under the applicable provisions. The identified sites are currently vacant, either surrounded by independently operated uses or individual parcels in a larger residential neighborhood. Future housing projects will not divide an established community, nor conflict with any plans, policy, or regulation on land use and planning. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; Palm Desert Municipal Code. Page 820 -29- XII. MINERAL RESOURCES Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? ✓ b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan or other land use plan? ✓ Setting The State of California has recognized the importance of mineral resources for construction materials and other economic purposes. The California Surface Mining and Reclamation Act of 1975 (SMARA) addresses the loss of regionally significant mineral deposits to urban development. The Act requires the Department of Conservation to create Production-Consumption Regions, which are areas where significant mineral resources of statewide importance and regional significance are produced and consumed, and a classification system that identifies lands where significant mineral resource deposits are located. The Palm Springs Production-Consumption Region covers approximately 631 square miles of the Coachella Valley from near Cabazon to Thermal, including the entire City of Palm Desert. Lands within the Production-Consumption Region are classified according to the presence of valuable mineral resources. The City is located within Mineral Resource Zone 3 (MRZ-3), defined as “areas containing known or inferred mineral occurrences of undetermined mineral resource significance.” Discussion of Impacts a, b) No Impact. The adoption and implementation of the Housing and Safety Element Updates will have no impact on mineral resources. According to the General Plan EIR, no known mineral sources exist in the City, and the significance of any mineral resource in MRZ-3 is considered speculative because no mining has historically occurred in the area. There are no active mining sites in the City. The sites identified in the land inventory are not designated, used, or planned for mineral resource extraction or development. Mitigation Measures: None required Monitoring: None required Sources: Palm Desert General Plan, 2016; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016; Update of Mineral Land Classification Map for Portland Cement Concrete-Grade Aggregate in the Palm Springs Production- Consumption Region, Riverside County, California (Special Report 198), California Geological Survey, 2007. Page 821 -30- XIII. NOISE Would the project result in: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Generation of substantial temporary or permanent increase in ambient noise levels in the vicinity of the project in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? ✓ b) Generation of excessive groundborne vibration or groundborne noise levels? ✓ c) For a project located within the vicinity of a primate airstrip or an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the project expose people residing or working in the project area to excessive noise levels? ✓ Setting In the City of Palm Desert, the predominant noise source is traffic (motor vehicles), followed by other noise generators such as construction activities, commercial activities and landscape equipment. Noise- sensitive receptors in the City include housing, schools, libraries, and senior care facilities. Effective methods to reduce the impacts of noise on sensitive land uses include vehicle trip reduction, noise barriers, and setbacks. City’s Noise Standards Table 7.1 Noise Compatibility Matrix of the General Plan defines the level of acceptable noise for different land uses in the City. Normally acceptable noise levels range from 50 to 65 dBA CNEL for multifamily residential development and 50 to 60 dBA CNEL for single-family residential development. These allowable noise levels do not include construction-related noise levels, as construction activities generate temporary noise. General Plan standards are supplemented by Municipal Code 9.24.030, Sound Level Limits, which regulate noise in different zones throughout the City. Discussion of Impacts a-c) No Impact. The adoption of the Housing and Safety Element Updates will have no impact on noise. As future housing projects are proposed, they will be required to assess noise impacts during the building permit and CEQA processes. The City may require site-specific noise studies to assess roadway and railroad noise impacts, where appropriate. The development of future housing projects will result in temporary construction noise. Construction noise is exempt from the noise standards set forth in Section 9.24.030 of the Municipal Code; however, it is restricted to generally less sensitive daytime hours on Monday through Saturday (excluding holidays, see Municipal Code Section 9.24.070). At buildout, the housing developments will be required to comply with the operational noise levels established in Page 822 -31- the Municipal Code related to residential property, which is 45 dBA between 10pm to 7am and 55 dBA from 7am to 10pm. Residential development is not a noise generator, and future housing projects are not expected to exceed City standards. Traffic noise generated on adjacent streets will be analyzed when projects are proposed, but generally can be mitigated if elevated through walls and setbacks on future projects. The potential noise impacts on sensitive receptors will be addressed in site-specific noise studies and project-level CEQA review. As noted in Section IX above, none of the sites identified in the land inventory are located within or near the noise contours of the Bermuda Dunes Airport. There are no other airports or airstrips within two miles of the City. No impact would occur. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; Palm Desert Municipal Code; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016. Page 823 -32- XIV. POPULATION AND HOUSING Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Induce substantial unplanned population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? ✓ b) Displace substantial numbers of existing people or housing, necessitating the construction of replacement housing elsewhere? ✓ Setting The City of Palm Desert has a current population of approximately 53,892 persons (2021), which is expected to grow to 64,100 in 2045. The City’s housing stock is a mix of single-family, multi-family, and mobile home development, and the majority (68.4%) of housing units are single-family homes. Discussion of Impacts a, b) No Impact. The adoption of the Housing and Safety Elements Update will not impact population or housing, as it does not generate any development. The Element includes goals, policies, and programs to facilitate housing development in the City to meet the need of its residents. The Housing Element does not create any immediate need of housing. As future housing projects are proposed, the programs identified in the Housing Element may apply and be implemented as appropriate. The Housing Element will not induce any growth beyond what is envisioned in the General Plan, and the City’s RHN allocation does not generate population in excess of existing forecasts. The sites identified in the land inventory are well served by utilities and the City’s roadway network. No utility or roadway extension are expected other than onsite connections. Because the identified sites for housing are vacant, future development will not displace people or housing. Overall, no impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: E-5 City/County Population and Housing Estimates, California Department of Finance, January 1, 2021; 2020-2045 RTP/SCS, Demographics and Growth Forecast Technical Report, Southern California Association of Governments, adopted September 3, 2020. Page 824 -33- XV. PUBLIC SERVICES Would the project result in: Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact Fire protection? ✓ Police protection? ✓ Schools? ✓ Parks? ✓ Other public facilities? ✓ Setting Fire Protection The City of Palm Desert contracts with the State of California (CalFire) and Riverside County Fire Department to receive fire protection services. Palm Desert has a total Fire Department staffing of 44 positions at the three fire stations (No.33, No.67, and No.71) within the City limits. The City also receives backup fire support from Station No. 55 in Indian Wells, and Stations No. 50 and No. 69 in Rancho Mirage, based on a regional cooperative agreement. Police Protection The City of Palm Desert contracts with the Riverside County Sheriff’s Department for police protection services. Staffing consists of 80 sworn officers, 36 of which are dedicated to the patrol division, with the remaining dedicated to special assignments such as the Traffic Division, Special Enforcement Team, the Motorcycle Enforcement Unit, K-9 Officer, Business District Team, School Resource Officers, the Coachella Valley Violent Crime Gang Task Force and Narcotics Enforcement. The City of Palm Desert currently provides about 1.56 sworn officers for every 1,000 residents. In 2013, the response time to the highest priority calls was within 5.58 minutes. Schools The City of Palm Desert is located within the jurisdictions of two school districts: Desert Sands Unified School District (DSUSD) and Palm Springs Unified School District (PSUSD). Parks The City of Palm Desert currently operates and maintains 203.9 acres of park land in twelve parks. Page 825 -34- Discussion of Impacts No Impact. The Housing and Safety Element Updates are policy documents, and will have no impact on public services. As future housing projects are proposed, they will be required to assess potential impacts on public services during CEQA review. The sites identified for future housing in the land inventory are generally located in developed areas of the City, and thus less likely to result in significant impacts on public services. The Safety Element Update includes current mapping by the California Department of Forestry and Fire Protection (CalFire), which shows lands designated for housing are located out of any State Responsible Areas or Very High Fire Hazard Severity Zones (VHFHSZ). Future housing development will be subject to all Municipal Code and RCFD Fire Protection Standards as well as Police Department regulations and procedures to assure adequate fire and general safety and emergency response. In addition, future projects will be required to pay City development impact fees to contribute its fair share of future facilities and apparatus. PSUSD and DSUSD implement mandated developer fees on new residential development per state law to mitigate potential impacts to school resources. Future housing projects will be required to provide on-site parks or pay in lieu fees to accommodate the increased demand created by new residents. These fees are designed to offset the population growth generated by new housing, and will be used by the City to purchase and improve park sites, consistent with General Plan standards. Overall, no impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert website, accessed April 2021; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016. Page 826 -35- XVI. RECREATION Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? ✓ b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? ✓ Setting The City of Palm Desert currently maintains and operates over 200 acres of park land in twelve public parks, two community centers, an Aquatic Center, and over 25 miles of multi-purpose trails. The City partners with the Desert Recreation District to provide recreational programs and activities for all ages year-round. Other recreational facilities in Palm Desert include three municipally owned golf courses and the Family YMCA located in Civic Center Park. City residents also enjoy access to numerous private golf courses, large open space reserves, the nearby Santa Rosa and San Jacinto Mountains National Park and other local and regional recreational resources. Discussion of Impacts a, b) No Impact. The Housing and Safety Element Updates will not impact recreation. The General Plan Environmental Resources and Land Use & Community Character Elements contain provisions to preserve and enhance open space and recreational amenities in the City, and also encourage open space and park facilities within each neighborhood concurrent with, or prior to its development. As future housing projects are proposed, they will be required to assess potential impacts on recreational resources at the individual project level, and include recreational facilities on-site. No impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert website, accessed April 2021; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016. Page 827 -36- XVII. TRANSPORTATION Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Conflict with a program plan, ordinance or policy addressing the circulation system, including transit, roadway, bicycle and pedestrian facilities? ✓ b) Would the project conflict or be inconsistent with CEQA Guidelines section 15064.3, subdivision (b)? ✓ c) Substantially increase hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? ✓ d) Result in inadequate emergency access? ✓ Setting Roadways in the City of Palm Desert are classified into various roadway types based on number of lanes and other facilities, including bicycle lanes, sidewalks and parkways. The City sets an acceptable Level of Service (LOS) for both roadway segments and intersection operations at LOS C or better; when physical constraints, land use compatibility or other urban design considerations make achieving LOS C impractical, LOS D shall be acceptable. Changes to California Environmental Quality Act (CEQA) Guidelines were adopted in December 2018, which require all lead agencies to adopt VMT as a replacement for automobile delay-based level of service (LOS) as the new measure for identifying transportation impacts for land use projects. This statewide mandate went into effect July 1, 2020. To aid in this transition, the Governor’s Office of Planning and Research (OPR) released a Technical Advisory on Evaluating Transportation Impacts in CEQA (December 2018). The City of Palm Desert has not adopted its own VMT guidelines. The County of Riverside adopted its Transportation Analysis Guidelines for Level of Service & Vehicle Miles Traveled in December 2020, which may be used upon approval of the City traffic engineer. Discussion of Impacts a-d) No Impact. The proposed Housing and Safety Element Updates will not generate construction or development, and will have no impact on transportation. As future housing projects are proposed, the City will require project-specific traffic impact analyses and VMT analyses, where appropriate. The projects will also be subject to City standards on roadway improvements, parking and emergency access, and will be required to pay their fair share toward offsite improvements. These requirements will be mandated through conditions of approval by the City. Prior to construction, site plans of future projects will be reviewed by both the Fire Department and Police Department plan to ensure safety measures are incorporated, including emergency access and geometric design. Page 828 -37- The sites identified for future housing in the land inventory are generally located on the City’s developed roadway network, and are not expected to interfere with the network. Most of the identified sites are close to transit routes, bicycle routes and pedestrian facilities, and future residents will be able to utilize multi-modal transportation. SunLine Transit Agency reviews and updates the transit service periodically to address ridership, budget and community demand needs. The City’s General Plan Goal 5 and Policies 5.1 through 5.6 also promote and encourage public and private transit service and the connections to bicycle and pedestrian networks. No impact would occur on the circulation system. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, August 2016. Page 829 -38- XVIII. TRIBAL CULTURAL RESOURCES a) Would the project cause a substantial adverse change in the significance of a tribal cultural resource, defined in Public Resources Code section 21074 as either a site, feature, place, cultural landscape that is geographically defined in terms of the size and scope of the landscape, sacred place, or object with cultural value to a California Native American tribe, and that is: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact i) Listed or eligible for listing in the California Register of Historical Resources, or in a local register of historical resources as defined in Public Resources Code section 5020.1(k), or ✓ ii) A resource determined by the lead agency, in its discretion and supported by substantial evidence, to be significant pursuant to criteria set forth in subdivision (c) of Public Resources Code Section 5024.1. In applying the criteria set forth in subdivision (c) of Public Resources Code Section 5024.1, the lead agency shall consider the significance of the resource to a California Native American tribe. ✓ Setting As discussed in the Section V, Cultural Resources, Cahuilla Indians are known to have lived in the Coachella Valley for thousands of years. They were Takic-speaking and lived in various groups in the area. Today, Native Americans of Pass or Desert Cahuilla heritage are mostly affiliated with one or more of the Indian reservations in and near the Coachella Valley, including the Cabazon, Augustine, Torres Martinez, Twenty-nine Palms, Agua Caliente, and Morongo. Numerous cultural resources are found throughout the valley which are considered non-renewable resources because they provide important information about the past. Discussion of Impacts a) i, ii) No Impact. The Housing and Safety Element Updates will have no impact on tribal cultural resources. The Update will not generate construction or development, nor does it expand sites for future housing development beyond what is allowed under the General Plan. Page 830 -39- According to the General Plan EIR, a total of 36 cultural resources containing prehistoric components have been recorded in the City of Palm Desert. The sites identified in the land inventory are not known to contain any tribal cultural resources. The City conducted AB 52 and SB 18 consultation for the proposed Update and sent out written letters to 16 tribes in July of 2021. The Agua Caliente Band of Cahuilla Indians responded, and indicated that they did not have concerns about the Update, and concluded consultation. No other consultation requests were received. As future housing projects are proposed, the City will undertake Tribal Consultation in conformance with AB 52 and/or SB 18 requirements, and incorporate requests and input from consultation in conditions of approval and/or as mitigation measures in the environmental review process. The City also requires an archaeological resources assessment for new development that involves ground disturbing activities and proper mitigation measures where necessary. These requirements assure that there will be no impact from the eventual development of housing sites in the City. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; City of Palm Desert General Plan Update & University Neighborhood Specific Plan Draft Environmental Impact Report, 2016. Page 831 -40- XIX. UTILITIES AND SERVICE SYSTEMS Would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Require or result in the relocation or construction of new or expanded water, wastewater treatment or storm water drainage, electric power, natural gas, or telecommunications facilities, the construction or relocation of which could cause significant environmental effects? ✓ b) Have sufficient water supplies available to serve the project and reasonably foreseeable future development during normal, dry and multiple dry years? ✓ c) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project’s projected demand in addition to the provider’s existing commitments? ✓ d) Generate solid waste in excess of State or local standards, or in excess of the capacity of local infrastructure, or otherwise impair the attainment of solid waste reduction goals? ✓ e) Comply with federal, state, and local management and reduction statutes and regulations related to solid waste? ✓ Setting Domestic Water The Coachella Valley Water District (CVWD) provides domestic water service to the City. The District’s primary water source is groundwater extracted through a system of wells from the Whitewater River subbasin, supplemented by imported water via regional canals. CVWD’s domestic water system includes 97 wells with a total daily pumping capacity of 244 million gallons. CVWD has a total of 64 reservoirs, with an average storage capacity of 153.2 million gallons. CVWD also owns and operates the water distribution system, which is generally located under existing streets in the public right‐of-way. CVWD is responsible, under the California Water Code, for analyzing its current and future water supply, and assuring that sufficient supply is available to serve land uses within the District, through the preparation of an Urban Water Management Plan (UWMP). CVWD is required to periodically update the Plan. Page 832 -41- Wastewater Treatment Provider and Sewer System The Coachella Valley Water District (CVWD) also provides sewer service to the City. CVWD maintains sewer trunk lines ranging in size from 4 to 24 inches and five sewer lift stations in City boundaries. Effluent from the City is conveyed to CVWD’s Cook Street treatment plant (Water Reclamation Plant No. 10), which has a total capacity of 18 million gallons per day (mgd), including 15 mgd tertiary treatment capacity as of 2019. CVWD also implements the requirements of the Regional Water Quality Control Board pertaining to domestic water quality and wastewater discharge. Stormwater Management Several watersheds drain the adjoining elevated terrain of the San Jacinto and Santa Rosa Mountains towards the valley floor. There are five stormwater channels in Palm Desert: Whitewater River Stormwater Channel, and its tributaries: Dead Indian Creek, the Deep Canyon Channel, the Palm Valley System, and the East Magnesia Channel. The City implements local stormwater management. Electric Power and Natural Gas Southern California Edison (SCE) provides electrical services to the City of Palm Desert. Many neighborhoods in the City were developed prior to the placement of underground electric facilities, and thus have overhead power lines. Natural gas is provided by the Southern California Gas Company (SoCalGas). Solid Waste Burrtec Waste and Recycling Services, LLC (Burrtec) provides solid waste disposal to the City through a franchise agreement. Non-hazardous household, commercial and most nonhazardous industrial solid waste collected is taken to the Edom Hill Transfer Station in Cathedral City, which is permitted to receive 3,500 tons of waste per day. From there solid waste is transported to the Lamb Canyon regional landfill, which is owned by the County of Riverside and had a remaining capacity of 19,242,950 cubic yards as of 2015. Discussion of Impacts a-e) No Impact. The Housing and Safety Element Updates will have no impact on utilities and service systems. As future housing projects are proposed, they will be required to assess potential impacts on utilities at the individual project level during CEQA review. CVWD undertakes long term planning for domestic water and wastewater treatment services within its service area. The sites identified for future housing in the land inventory will be developed according to their General Plan land use designations, and thus consistent with the plans of CVWD. As discussed in Section X, future projects are required by the City to provide adequate onsite drainage facilities to accommodate a 100-year controlling storm event and implement best management practices (BMPs) to minimize impacts on the public drainage system. The sites identified for housing in the land inventory are well served by utility services. Future housing development is expected to provide local connections to nearby existing SCE, SoCalGas, and Frontier Communications and/or Spectrum infrastructure. These service providers plan their infrastructure and services based on projected local development and growth. Local and regional solid waste facilities have sufficient capacities to serve the City and planned housing development. All future projects will be required to analyze their demand for utilities at the individual project level. Overall, no impact is anticipated. Page 833 -42- Mitigation Measures: None required Monitoring: None required Sources: Sanitary Sewer Management Plan, CVWD, December 1, 2019; 2015 Urban Water Management Plan (Final Report), CVWD, July 1, 2016; Solid Waste Information System, www2.calrecyle.ca.gov, CalRecycle, accessed April 2021. Page 834 -43- XX. WILDFIRE – If located in or near state responsibility areas or lands classified as very high fire hazard severity zones, would the project: Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Substantially impair an adopted emergency response plan or emergency evacuation plan? ✓ b) Due to slope, prevailing winds, and other factors, exacerbate wildfire risks, and thereby expose project occupants to, pollutant concentrations from a wildfire or the uncontrolled spread of a wildfire? ✓ c) Require the installation or maintenance of associated infrastructure (such as roads, fuel breaks, emergency water sources, power lines or other utilities) that may exacerbate fire risk or that may result in temporary or ongoing impacts to the environment? ✓ d) Expose people or structures to significant risks, including downslope or downstream flooding or landslides, as a result of runoff, post-fire slope instability, or drainage changes? ✓ Setting Wildfire is a nonstructural fire that occurs in vegetative fuels, excluding prescribed fire. Wildfires can occur in undeveloped areas and spread to urban areas where landscape and structures are not designed and maintained to be ignition resistant. A wildland-urban interface (WUI) is an area where urban development is located in proximity to open space or “wildland” areas. The potential for wildland fires represents a hazard where development is adjacent to open space or within close proximity to wildland fuels or designated fire severity zones. The California Department of Forestry and Fire Protection (CalFire) has mapped areas of significant fire hazards in the state through its Fire and Resources Assessment Program (FRAP). These maps place areas of the state into different fire hazard severity zones (FHSZ) based on a hazard scoring system using subjective criteria for fuels, fire history, terrain influences, housing density, and occurrence of severe fire weather where urban conflagration could result in catastrophic losses. 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 WUI. Southern portions of the City are susceptible to the risk of wildland fires. There are very high fire hazard severity zones (VHFHSZ) in both local and state responsibility areas in the southern Sphere of Influence (SOI). In the southeastern corner of the City, the state responsibility area encroaches into the City limits and includes very high and high fire hazard severity zones. The VHFHSZ overlaps with some residences on Canyon View Drive and Desert Vista Drive. The high fire hazard severity zone covers undeveloped desert land and an aboveground water tank. Page 835 -44- Discussion of Impacts a-d) No Impact. The adoption of the Housing Element Update will have no impact on wildfire. As required by state law, the Safety Element in the General Plan is also being updated, including the most recent fire hazard mapping by CalFire. This update will allow the City to accurately gage fire risk when development is proposed in the future. The sites identified for future housing in the land inventory are not located within or near any state responsibility area or very high fire hazard severity zone. These sites are in the urban area of the City and within the established roadway network. Future development on these sites will have access to primary emergency evacuation routes in the City, including I-10, Highway 111, Monterey Avenue, Portola Avenue, Cook Street, and Washington Street. Future housing projects will be reviewed for compliance with the Fire Department design guidelines. Potential wildfire- related risks due to project location and topography will be evaluated during CEQA review and in site-specific geotechnical studies, as discussed in Section VII. Overall, no impact is anticipated. Mitigation Measures: None required Monitoring: None required Sources: City of Palm Desert General Plan, 2016; Project materials; Google Earth Pro 7.3.3.7786; California Fire Hazard Severity Zone Viewer, https://gis.data.ca.gov/datasets/789d5286736248f69c4515 c04f58f414, last updated January 13, 2020. Page 836 -45- XXI. MANDATORY FINDINGS OF SIGNIFICANCE Potentially Significant Impact Less Than Significant with Mitigation Less Than Significant Impact No Impact a) Does the project have the potential to substantially degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self- sustaining levels, threaten to eliminate a plant or animal community, substantially reduce the number or restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of California history or prehistory? ✓ b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively considerable” means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects)? ✓ c) Does the project have environmental effects, which will cause substantial adverse effects on human beings, either directly or indirectly? ✓ a-c) No Impact. The Housing and Safety Element Updates will not impact the environment. As noted, the sites identified for future housing are not located within or adjacent to a conservation area designated by the CVMSHCP. The Element will not impact biological or cultural resources, nor human beings. The Safety Element is updated along with the Housing Element as required by state law, and both Elements are consistent with each other and the balance of the General Plan. The sites in the land inventory will be developed according to their General Plan land use and zoning designations. Such housing development will not impact long term environmental goals, as it is planned and covered in the General Plan and its Environmental Impact Report. Cumulative impacts of future housing development were addressed in the General Plan and its EIR, and will also be analyzed during the project-level CEQA review as individual projects are proposed. Page 837 Page 838 Page 839 Page 840 Page 841 Page 842 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: March 10, 2022 PREPARED BY: Randy Bowman, Deputy Director of Public Works Kevin Swartz, Associate Planner REQUEST: Conduct a public hearing for consideration of adoption of a Notice of Exemption in accordance with the California Environmental Quality Act (CEQA), and approval of a summary vacation of an unused portion of San Pablo Avenue right-of-way at the southeast corner of Fred Waring Drive and San Pablo Avenue to be in conformance with the City’s General Plan. Recommendation Waive further reading and adopt the following: 1. A Notice of Exemption in accordance with CEQA; and 2. Conduct a public hearing to receive public input and adopt City Council Resolution No. 2022- , approving a summary vacation of an unused portion of San Pablo Avenue right-of-way at the southeast corner of Fred Waring Drive and San Pablo Avenue to be in conformance with the City’s General Plan. Discussion The project is located on the southeast corner of San Pablo Avenue and Fred Waring Drive and abuts Santa Rosa Way to the south. The project area is undeveloped and flat. In 2014, the City dedicated a right-of-way along the perimeter of San Pablo Avenue for a future dedicated right-turn lane at the southeast corner of San Pablo Avenue and Fred Waring Drive. In November 2017, the City Council adopted an update to the City’s General Plan to guide the vision and policymaking decisions for the next few decades. As part of that update, the City Council adopted the One Eleven Development Code and subsequently, in June 2018, a comprehensive Zoning Ordinance and Zoning Map to be consistent with the land uses identified in the General Plan. As part of these actions, the City’s dedicated right-of-way and the adjacent five parcels (APNs: 627-101-002, 627-101-017, 627-101-033, 627-101-061, 627-101-062) totaling 1.54 acres were rezoned to Downtown Edge. In late 2018, the City Council authorized staff to negotiate with Chandi Group USA for a mixed- use project located on the City’s dedicated right-of-way and the adjacent five parcels site totaling 1.54 acres. The Disposition and Development Agreement (DDA) is with Chandi Enterprises, LLC (the “Developer”), a subsidiary of Chandi Group USA. On February 28, 2019, in Closed Session, the Council authorized staff to enter into an Exclusive Negotiating Agreement (ENA) with the Page 843 March 10, 2022 – CC Staff Report San Pablo Street Vacation Page 2 of 3 Developer (No. C38310, executed March 14, 2019). An amended and restated ENA was executed on December 25, 2019. On May 27, 2021, the City Council adopted Resolution No. 2021-28, approving Case Nos. PP/CUP 20-0003 and TPM 38023 to construct a three-story mixed-use building for the Developer on the City’s dedicated right-of-way and the adjacent five parcels site totaling 1.54 acres. On August 18, 2021, the City of Palm Desert and Chandi Enterprises, LLC, executed the Disposition and Development Agreement (DDA), which supersedes the ENA and became the governing document for the close of escrow. Section 5 (DDA). The requirements of parties: Conditions Precedent to Close of Escrow outlines requirements and conditions to close escrow benefiting the City (5.2) and conditions benefiting the developer (5.3). Prior to the close of escrow, the City will vacate the excess right-of-way for their use and will require that all permits are ready to be issued. The summary vacation must conform to the City’s General Plan, and pursuant to the California Streets and Highways Code, Division 9, Part 3, Chapter 4, Sections 8330 through 8336 for a “summary vacation,” allows the City Council to summarily vacate the excess right-of-way based on the following: • The area has not been paved and has not been used for the past five consecutive years for vehicular travel, and no public money has been used for its maintenance. • The area has been determined to be excess by the city, and there are no other public facilities located within it. • The area is not required for street or highway purposes. • The area does not contain public utility facilities that are in use or would be affected by the vacation. Staff finds that the summary vacation of the excess right-of-way is in conformance because the excess right-of-way does not serve a public benefit and supports General Plan Land Use & Community Character Goal 5, which promotes a variety of mixed-use, urban centers throughout the City that provide opportunities for shopping, recreation, commerce, employment, and arts and culture, specifically Policy 5.2 regarding the development of San Pablo Avenue between Fred Waring Drive and Highway 111. In addition, the summary vacation meets the California Streets and Highways Code, Division 9, Part 3, Chapter 4, Sections 8330 through 8336 criteria referenced above. The area is currently vacant, unpaved, and has not been used for the past five consecutive years for vehicular travel. No public money has been used for its maintenance, and there are no other public facilities located within it. The area is not deemed or required for street or highway purposes and does not contain public utility facilities that are in use or would be affected by the summary vacation. The Public Works Department has determined that the recent reconstruction of San Pablo Avenue, the right-of-way at the southeast corner of San Pablo Avenue and Fred Waring Drive exceeds what is needed for the new roadway configuration. In conjunction with the design of the San Pablo project, the City conducted a traffic study for the ultimate operational needs for the intersection, which includes a dedicated northbound right turn lane. Both phases of the San Pablo Avenue Streetscape Improvements project contributed to modifications of the intersection of San Page 844 March 10, 2022 – CC Staff Report San Pablo Street Vacation Page 3 of 3 Pablo Avenue and Fred Waring Drive. Today, the intersection represents the final configuration, and no further modifications are needed. Public Notice: Public noticing was conducted for the March 10, 2022, City Council meeting in accordance with the Palm Desert Municipal Code (PDMC) Section 25.60.060. A public hearing notice was published on Monday, February 27, 2022, in The Desert Sun, and staff did not receive any comments in opposition or in favor. On February 1, 2022, the Planning Commission recommended approval to the City Council and adopted Planning Commission Resolution No. 2806 in support of the right-of-way vacation. Environmental Review Staff is recommending that the City Council approve the subject resolution and adopt a Notice of Exemption for the purposes of CEQA since the summary vacation of the excess right-of-way is exempt from the CEQA pursuant to Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Director of Development Services Veronica Chavez Veronica Chavez Acting Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman APPLICANT: City of Palm Desert ATTACHMENTS: 1. Draft City Council Resolution No. 2022- 2. Notice of Exemption 3. Planning Commission Notice of Action dated February 2, 2022 4. Public Hearing Notice 5. Vacation Legal Description 6. Vicinity Map Page 845 RESOLUTION NO. 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, CONSIDERING ADOPTION OF A NOTICE OF EXEMPTION IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), AND APPROVAL OF A SUMMARY VACATION OF AN UNUSED PORTION OF SAN PABLO AVENUE RIGHT-OF-WAY UNDER PROVISIONS OF DIVISION 9, PART 3, CHAPTER 4 OF THE STREETS & HIGHWAYS CODE OF THE STATE OF CALIFORNIA AT THE SOUTHEAST CORNER OF FRED WARING DRIVE AND SAN PABLO AVENUE TO BE IN CONFORMANCE WITH THE CITY’S GENERAL PLAN WHEREAS, the San Pablo Avenue Phase improvements (Project Nos. 691-16 and 681-20) reconstructed San Pablo Avenue to its final width; and WHEREAS, the City Council of the City of Palm Desert (“City Council”) has determined that the excess public right-of-way exists along San Pablo Avenue at the intersection with Fred Waring Drive (“Excess ROW”); and WHEREAS, the City Council may vacate all or part of a street, highway, or public service easement pursuant to the Public Streets, Highways, and Service Easements Vacation Law (California Streets & Highways Code, § 8300 et seq.); and WHEREAS, the summary vacation proceedings are to be conducted pursuant to the provisions in sections 8330 through 8336, Chapter 4 of Part 3, Division 9, entitled “Summary Vacation,” of the California Streets and Highways Code; and WHEREAS, the City Council finds that the Excess ROW does not serve a public benefit; and WHEREAS, the Excess ROW satisfies the criteria for summary vacation pursuant to Sections 8331, 8333, 8344, and 8334.5 of the California Streets and Highways Code because the Excess ROW (1) has not been paved, has not been used for the past five consecutive years for vehicular travel, and no public money has been used for its maintenance; (2) has been determined to be excess by the City, and there are no other public facilities located within it; (3) is not required for street or highway purposes; and (4) does not contain public utility facilities that are in use or would be affected by the vacation; and WHEREAS, pursuant to Government Code section 65402(a), the Planning Commission of the City of Palm Desert reviewed the proposed vacation of the Excess ROW at its regularly scheduled meeting on February 1, 2022, and found that vacation of the Excess ROW conforms with the City’s General Plan; and Page 846 RESOLUTION NO. 2022- WHEREAS, all other legal prerequisites of the adoption of this Resolution have occurred; and WHEREAS, pursuant to California Streets and Highways Code section 8366, the City Clerk shall cause a certified copy of this Resolution, attested by the City Clerk under seal, to be recorded without acknowledgment, certificate of acknowledgment, or further proof in the Office of the Recorder of the County of Riverside, and no fee shall be charged for this recordation. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Order of Vacation. The City Council, under the authority vested in it by the California Streets and Highways Code, Division 9 - Change of Grade and Vacation, Part 3 - Public Streets, Highways, and Service Easements Vacation Law (Sections 8300 et seq.), Chapter 4 - Summary Vacation (Streets & Highways Code sections 8330 et seq.), hereby orders the vacation of Excess ROW (the right-of-way known as a portion of San Pablo Avenue described and as set forth in Exhibits "A" and "B" attached hereto and incorporated herewith). Section 3. Authority for Vacation. The Excess ROW satisfies the criteria for summary vacation pursuant to Sections 8331, 8333, 8344, and 8334.5 of the California Streets and Highways Code because the Excess ROW (1) has not been paved, has not been used for the past five consecutive years for vehicular travel, and no public money has been used for its maintenance; (2) has been determined to be excess by the City and there are no other public facilities located within it; (3) is not required for street or highway purposes; and (4) does not contain public utility facilities that are in use or would be affected by the vacation. Section 4. General Plan Conformity. The vacation of the Excess ROW has been found by the Planning Commission of the City of Palm Desert to be in conformity with the City of Palm Desert General Plan. Section 5. CEQA Finding. This action is categorically exempt from CEQA pursuant to Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. Section 6. Certification, Recordation, and Retention. Pursuant to California Streets and Highways Code section 8336, the City Clerk shall cause a certified copy of this Resolution, attested by the City Clerk under seal, to be recorded without acknowledgment, certificate of acknowledgment, or further proof in the Office of the Recorder of the County of Riverside, and no fee shall be charged for this recordation. The City Clerk shall permanently maintain a true and correct copy of this Resolution in the City Page 847 RESOLUTION NO. 2022- Clerk’s Office. Section 7. Effective Date. This Resolution shall become effective upon its adoption. Upon the recordation required hereby, the vacation is complete. PASSED, APPROVED AND ADOPTED by the Palm Desert City Council of the City of Palm Desert, California, at its regular meeting held on the 10th day of March 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ____________________________ ATTEST: JAN C. HARNIK, MAYOR __________________________________ NIAMH M. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 848 Notice of Exemption FORM “B” NOTICE OF EXEMPTION TO: Office of Planning and Research P. O. Box 3044, Room 212 Sacramento, CA 95812-3044 Clerk of the Board of Supervisors or County Clerk County of: FROM: City of Palm Desert 1. Project Title: San Pablo Avenue Summary Street Vacation 2. Project Applicant: City of Palm Desert 3. Project Location – Identify street address and cross streets or attach a map showing project site (preferably a USGS 15’ or 7 1/2’ topographical map identified by quadrangle name): The project is located on the southeast corner of San Pablo Avenue and Fred Waring Drive and abuts Santa Rosa Way to the south. 4. (a) Project Location – City: City of Palm Desert (b) Project Location – County: Riverside County 5. Description of nature, purpose, and beneficiaries of Project: In 2014, the City dedicated a right-of-way along the perimeter of San Pablo Avenue for a future dedicated right-turn lane at the southeast corner of San Pablo Avenue and Fred Waring Drive. The City has determined that the recent reconstruction of San Pablo Avenue, the right-of- way at the southeast corner of San Pablo Avenue and Fred Waring Drive exceeds what is needed for the new roadway configuration Today, the intersection represents the final configuration, and no further modifications are needed. The summary vacation conforms to the City’s General Plan and meets the California Streets and Highways Code, Division 9, Part 3, Chapter 4, Sections 8330 through 8336 criteria referenced above. 6. Name of Public Agency approving project: City of Palm Desert 7. Name of Person or Agency undertaking the project, including any person undertaking an activity that receives financial assistance from the Public City of Palm Desert Page 849 Notice of Exemption FORM “B” Agency as part of the activity or the person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the activity: 8. Exempt status: (check one) (a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA Guidelines § 15268) (b) Not a project. (c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA Guidelines § 15269(b),(c)) (d) Categorical Exemption. State type and class number: The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the CEQA, has determined that the proposed project request is categorically exempt under Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. Because of the categorical exemption, no further environmental review is necessary. (e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a)) (f) Statutory Exemption. State Code section number: (g) Other. Explanation: 9. Reason why project was exempt: 10. Lead Agency Contact Person: Kevin Swartz, Associate Planner Telephone: (760) 346-0611 11. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing. 12. Has a Notice of Exemption been filed by the public agency approving the project?  Yes  No 13. Was a public hearing held by the lead agency to consider the exemption?  Yes  No If yes, the date of the public hearing was: March 10, 2022 Signature:__________________________________ Date:_______________ Title:__________________________  Signed by Lead Agency  Signed by Applicant Date Received for Filing: (Clerk Stamp Here) Page 850 Notice of Exemption FORM “B” Authority cited: Sections 21083 and 21100, Public Resources Code. Reference: Sections 21108, 21152, and 21152.1, Public Resources Code. Page 851 Page 852 Page 853 Page 854 CITY OF PALM DESERT LEGAL NOTICE NOTICE OF A PUBLIC HEARING BEFORE THE PALM DESERT CITY COUNCIL TO CONSIDER A REQUEST BY THE CITY OF PALM DESERT FOR APPROVAL OF A SUMMARY VACATION OF AN UNUSED PORTION OF SAN PABLO AVENUE RIGHT-OF-WAY TO BE IN CONFORMANCE WITH THE CITY’S GENERAL PLAN. The City of Palm Desert (City), in its capacity as the Lead Agency for this project under the California Environmental Quality Act (CEQA), has reviewed and considered the proposed project exempt pursuant to Title 14 California Code of Regulations Section 15305 as a minor alteration in land use limitations. Project Location/ Description: Project Location: Southeast corner of San Pablo Avenue and Fred Waring Drive Project Description: With the recent reconstruction of San Pablo Avenue, the right-of-way at the southeast corner of San Pablo Avenue and Fred Waring Drive exceeds what is needed for the new roadway configuration. Both phases of the San Pablo Avenue Streetscape Improvements project contributed to modifications of the intersection of San Pablo Avenue and Fred Waring Drive. The intersection today represents the final layout; no further modifications are needed. Recommendation: Staff is recommending that the City Council adopts a resolution approving the project request. Public Hearing: The public hearing will be held before the City Council on March 10, 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/committees-and- commissions/planning-commission-information-center. Comment Period: The public comment period for this project is from February 27, 2022, to March 10, 2022. Public Review: The project application is available for public review Monday through Friday from 8:00 a.m. to 5:00 p.m. by contacting the project planner, Mr. Kevin Swartz. Please submit written comments to the Planning Division. 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: Kevin Swartz, Associate Planner City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 (760) 346-0611 kswartz@cityofpalmdesert.org PUBLISH: DESERT SUN CITY CLERK February 27, 2022 CITY COUNCIL SECRETARY Page 855 Page 856 Page 857 Page 858 Proposed ROW Vacation Page 859 [This page has intentionally been left blank.] Page 860 CITY OF PALM DESERT BUILDING & SAFETY DEPARTMENT INTEROFFICE MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM: Jason Finley, Chief Building Official DATE: March 3, 2022 SUBJECT: Approve Resolution No. 2022-07 approving a Historic District Designation for Sandpiper Condominiums Circle 2 Located on El Paseo Due to a publication error, this item needs to be reconsidered. Therefore, staff requests readoption of Resolution No. 2022-07 approving a Historic District Designation for Sandpiper Condominiums Circle 2 located on El Paseo. Page 861