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HomeMy WebLinkAbout00 Agenda Packet 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) THURSDAY, MARCH 24, 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. AGENDA MARCH 24, 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 s ubject matter may participate utilizing one of the three options listed on the back page of this agenda. ADJOURN TO CLOSED SESSION A. Closed Session Meeting Minutes: March 10, 2022 B. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) (City) Property: 72-880 Highway 111, Palm Desert (APN 640-120-020) City Negotiator: Todd Hileman/Martin Alvarez Other Party Negotiator: Seritage SRC Finance Property Owner: Seritage SRC Finance 2) (City) Property: 45653 Portola Avenue, Palm Desert (APN 627-351-010) City Negotiator: Todd Hileman/Andy Firestine/Martin Alvarez Other Party Negotiator: Not applicable Property Owner: City of Palm Desert 3) (City) Property: Consideration of a lease between Lift to Rise and the City of Palm Desert at the Parkview Office Complex (73-710 Fred Waring Drive, Suite No. 219, Palm Desert) City Negotiator: Todd Hileman/Veronica Chavez/Stephen Aryan Other Party Negotiator: Lift to Rise Property Owner: City of Palm Desert 4) (City) Property: 73000 Fred Waring Drive, Palm Desert (APN 622-160-034-2, 622-160-038-6, and 009-613-026-1) City Negotiator: Todd Hileman Other Party Negotiator: Friends of the Cultural Center, Inc., and McCallum Theatre Foundation, Inc. Under Negotiation: Rental payment and terms of rental payment C. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1) Potential cases: Two (2) AGENDA MARCH 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 3 RECONVENE THE CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MEETING a) Roll Call b) Pledge of Allegiance to the Flag – Councilmember Gina Nestande c) Inspiration/Invocation – Mayor Pro Tem Sabby Jonathan REPORT ON ACTION FROM CLOSED SESSION AWARDS, PRESENTATIONS, AND APPOINTMENTS 1. Presentation of a Proclamation declaring April 2022 as “DMV/Donate Life Month” in the City of Palm Desert (CC) ......................................................................... Page 11 CITY MANAGER COMMENTS 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 up to 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 24, 2022 (CC) (SA) (HA) ........................................... Page 13 Rec.: Approve as presented. 3. APPROVE CLAIMS AND DEMANDS WARRANTS: City: 3/4/2022 (CC) Page 23 Rec.: Receive and file. AGENDA MARCH 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 4 4. ORDINANCE No. 1379 to revise Chapter 11.01.080 (Parks, Prohibited conduct generally) of the Palm Desert Municipal Code relating to the improper feeding of wild or domestic birds (2nd reading) (CC) ............................................................... Page 41 Rec.: Waive further reading and adopt. 5. ORDINANCE No. 1380 to adopt the redrawing of Council Member District Boundaries (2nd reading) (CC) ........................................................................................... Page 43 Rec.: Waive further reading and adopt. 6. RESOLUTION authorizing the destruction of paper records that have been digitally imaged from the Development Services Department (Planning/Land Development Division), to rely on the electronic record as the official record (CC) ......... Page 49 Rec.: Waive further reading and adopt. 7. APPROVE an Agreement with Southern California Edison (SCE) to Retrofit SCE streetlights to LED (CC) ............................................................................. Page 55 Rec.: By Minute motion: 1. Authorize the City Manager to execute an Agreement with Southern California Edison to retrofit SCE streetlights under the LS-1 Option E Program; 2. Direct that the Municipal Code Chapter 24.16 Outdoor Lighting Requirements be amended (along with annual ordina nce updates) to recognize 4000 Kelvin color temperature as the City’s standard for all streetlights; and 3. Authorize staff to secure a streetlighting consultant to geo -locate all City-owned LS-2/LS-3 streetlight locations and develop photometric requirements prior to retrofitting any outstanding streetlight fixtures to LED for an amount not to exceed $15,000. 8. APPROVE Palm Desert’s 2022 Independence Day Celebration (CC) ...... Page 67 Rec.: By Minute Motion: 1. Preapprove and authorize expenditures in an amount not to exceed $75,000 ($46,000 to Pyro Spectaculars, Inc. and $29,000 to ancillary vendors) from the FY 2022/23 Budget for production of the 2022 Independence Day Celebration event; 2. Authorize City Manager to execute a one-year extension of Contract No. C37020A with Pyro Spectaculars, Inc., in the amount of $46,000 for the fireworks display; and 3. Authorize City Manager to execute any ancillary vendor contracts associated with production of celebration in an amount not to exceed $29,000. AGENDA MARCH 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 5 9. APPROVE an Amendment to Contract No. HA38270 with Liberty Landscaping, Inc., for landscape maintenance services at the Palm Desert Housing Authority properties for a two-year term in an annual amount not to exceed $348,553 (HA) ......................................................................................................... Page 103 Rec.: By Minute Motion, that the Authority Board, 1. Approve an Amendment (“Amendment”) to Contract No. HA38270 with Liberty Landscaping, Inc., for Landscape Maintenance Services, Landscape Maintenance Area No. 3, Project No. 903-20 (“Agreement”), effective July 1, 2022, for the Housing Authority owned properties (“Properties”) for a two-year term in an amount not to exceed $348,553 annually; 2. Authorize Staff and RPM Company, the Authority’s contracted management company, to assign additional services as determined to be necessary due to emergency actions and/or proactively responding to issues at the Authority properties; including expenditures, in an annual amount not to exceed $88,000 for such additional services; and 3. Authorize the Chairman and/or the Executive Director to execute the Amendment and any documents necessary to effectuate and implement the actions taken herewith. 10. APPROVE a one-year extension of Contract No. C41450 with Hinderliter De Llamas and Associates (HDL) to continue providing Business Licensing Administration on behalf of the City (CC) .................................................................................. Page 113 Rec.: By Minute motion, extend Contract No. C41450 with HDL for City business licensing administration. 11. APPROPRIATE $63,433.55 from unobligated general fund reserves and ratify the City Manager’s approval to purchase Arctic Wolf security services from Vector USA (CC)................................................................................................. Page 143 Rec.: By Minute Motion that the City Council: 1. Ratify the City Manager’s approval to purchase Arctic Wolf security services from Vector USA, and 2. Appropriate $63,433.55 from unobligated general fund reserves to Account Number 1104190-4336000. 12. APPROVE a Central Inventory of surplus land and land in excess of foreseeable need pursuant to Government Code Section 54230(a)(1) in connection with properties owned by the City of Palm Desert, Successor Agency to the Palm Desert Redevelopment Agency, and Palm Desert Housing Authority and direct the reporting of information regarding such properties to the California Department of Housing and Community Development pursuant to Government Code 54230(a)(2) (CC) ........................................................................................................ Page 171 Rec.: By Minute Motion, that the City Council: AGENDA MARCH 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 6 1. Approve the “Central Inventory” of surplus land and land in excess of foreseeable need in connection with properties owned by the City of Palm Desert, Successor Agency to the Palm Desert Redevelopment Agency, and Palm Desert Housing Authority, as outlined in the staff report, pursuant to Government Code Section 54230(a)(1); and 2. Authorize staff to report to the California State Department of Housing and Community Development (“HCD”) information about such properties pursuant to Government Code 54230(a)(2). 13. RECEIVE AND FILE the resignation of Parks and Recreation Commissioner Mike Hardin (CC) ................................................................................................. Page 177 Rec.: Receive and file with sincere regret. CONSENT ITEMS HELD OVER ACTION CALENDAR 14. RESOLUTION and ORDINANCE: Resolution to approve Recovered Organic Waste Procurement Policy and Ordinance to amend Chapter 3.30 to include the Recovered Organic Waste Product Procurement Policy (1st reading) (CC) ..................... Page 179 Rec.: That the City Council: 1. Waive further reading and adopt a resolution approving the Recovered Organic Waste Product Procurement Policy; and 2. Waive further reading and pass ordinance to second reading. 15. RESOLUTION to approve approval of actions in connection with the parcel identified as APN 694-120-028 and a portion of 694-120-029 related to compliance with the Surplus Land Act and an Exclusive Negotiation Agreement with Palm Communities (CC) ................................................................................... Page 197 Rec.: Waive further reading and adopt a resolution: 1. Declaring the 0.49-acre City-owned property located on the north side of Gerald Ford Drive between Cook Street and Portola Road and identified as a portion of APN 694-120-029 (the “Additional Parcel”) as “exempt surplus land” pursuant to Government Code Section 54221(f)(1)(A); 2. Authorizing the City Manager or his designee, with the consent of the City Attorney, to enter into a new Exclusive Negotiation Agreement (“ENA”) with Palm Communities for the purpose of negotiating the terms and conditions of an agreement for the sale of the City-owned property located on the north side of Gerald Ford Drive between Cook Street and Portola Avenue and identified as APN 694-120-028 to Palm Communities and the construction of a housing development on the AGENDA MARCH 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 7 Property and Additional Parcel that complies with Government Code Section 37364; and 3. Authorizing the staff and officers of the City to take such actions as they deem necessary or proper to effectuate the purposes of the Resolution. 16. REQUEST for feedback and direction on the consideration of a Council-initiated five district ballot measure for the 2022 ballot (CC) ......................................... Page 231 Rec.: By Minute Motion: That the City Council provide City staff feedback and direction on the consideration of a Council-initiated five district ballot measure for the 2022 ballot; or 1. Approve Resolution No. 2022-___ calling for the placement of a measure on the ballot for the November 8, 2022 general municipal election for the submission to the qualified voters of an ordinance to transition from two to five Council districts and a “by district” election system for all five districts. 2. Approve Resolution No. 2022-___ requesting the Board of Supervisors of the County of Riverside to consolidate a general municipal election to be held on November 8, 2022, with the statewide general elect ion to be held on that date pursuant to Elections Code Section 10403. 3. Approve Resolution No. 2022-___ providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a City measure to be submitted at the November 8, 2022 general municipal election. 17. AWARD Contract to American Asphalt South, Inc. of Riverside, California , for the 2021 Slurry Seal Project (Project No. 751-21) (CC) ................................ Page 261 Rec.: By Minute Motion: 1. Award Contract No. C42450 in the amount of $2,235,235 to American Asphalt South, Inc., of Riverside, California, for the 2021 Slurry Seal Project; 2. Authorize the Director of Finance to set aside a 10% contingency in the amount of $223,524; 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. 18. CONSIDERATION to require that a Specific Plan be prepared for the Palm Desert mall site. (CC) .......................................................................................... Page 287 Rec.: By Minute Motion, require that a Specific Plan be prepared for the Palm Desert Mall located at 72840 Highway 111, Palm Desert. AGENDA MARCH 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 8 PUBLIC HEARING 19. ORDINANCE No. 1378 to approve Zoning Ordinance Amendment 22-0001 to modify Palm Desert Municipal Code Section 25.34.060 regarding Time-Share Projects. (Continued from February 24, 2022) (CC) ............................................... Page 289 Rec.: By Minute Motion, continue Public Hearing to the meeting of April 28, 2022. ADJOURNMENT AGENDA MARCH 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 9 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 wai t 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 provide d 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, Anthony J. Mejia, 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 18th day of March 2022. Note: This agenda is subject to amendment up to 72 hours in advance of the meeting. _ Anthony J. Mejia, MMC, City Clerk [This page has intentionally been left blank.] Whereas, organ, eyes, tissue, marrow and blood donation are life- giving acts recognized worldwide as expressions of compassion to those in need; and Whereas, more than 106,000 individuals nationwide and more than 20,000 in California are currently on the national organ transplant waiting list, and on average, 17 people die each day while waiting due to the shortage of donated organs; and Whereas, a single individual’s donation of heart, lungs, liver, kidneys, pancreas and small intestine can save up to eight lives, tissue donation can save and heal the lives of more than 75 others, and a single blood donation can help three people in need; and Whereas, the need for donated organs is especially urgent in Hispanic, and African American communities; and Whereas, California residents can sign up to be an organ, eye and tissue donor when applying for or renewing their driver’s licenses or ID cards, or sign up with the Donate Life California Donor Registry online at any time by visiting www.donateLIFEcalifornia.org. Now, Therefore, I, Jan C. Harnik, Mayor of the City of Palm Desert, California, along with the entire City Council, do hereby proclaim the month of April 2022 as DMV / Donate Life Month in the City of Palm Desert and urge all citizens to check “YES!” when applying for or renewing their driver’s license or ID card. 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 24, 2022 CALL TO ORDER – 4:00 P.M. Mayor Harnik called the meeting to order at 4:00 p.m. ROLL CALL Present: Mayor Pro Tem/Vice Chair/Vice Chairman Sabby Jonathan Councilmember/Director/Member Kathleen Kelly Councilmember/Director/Member Gina Nestande Councilmember/Director/Member Karina Quintanilla Mayor/Chair/Chairman Jan C. Harnik Staff 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 AWARDS, PRESENTATIONS, AND APPOINTMENTS None. CITY MANAGER COMMENTS City Manager Todd Hileman gave an overview of the fires that occurred on Wednesday, February 23, 2022. He informed Council that it quickly became a 4-alarm fire and there were multiple structures and palm trees affected. He summarized the actions of the Fire Department and the support received from surrounding stations as well as from the American Red Cross, Desert Recreation District and the Family YMCA. He expressed his gratitude for the first responders and noted at one point there were over 100 firefighters onsite. Mr. Hileman then asked Public Affairs Manager Thomas Soule to share Page 13 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 2 information on upcoming events which included “Sunday Sounds” in the Amphitheater at Civic Center Park, the Wildflower festival, a blood drive and a used oil and oil filter recycling event. He noted additional information was shared at DiscoverPalmDesert.com. Mr. Hileman also congratulated longtime City employee and current Finance Director Janet Moore on her upcoming retirement, and introduced Mr. Justin McCarthy, former Assistant City Manager and Interim City Manager during Ms. Moore’s tenure. Ms. Moore thanked them for their kind words and expressed her appreciation for the City, its employees and its residents. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmember Quintanilla expressed her gratitude for Ms. Moore’s role and thanked her for providing information that helped her get up to speed when she first started. She also thanked the city employees, Sheriff’s deputies and the wide amount of fire support that prevented the fire from becoming a greater tragedy than it was. Councilmember Kelly expressed her gratitude for the emergency responders. She noted this occasion shows the tradition the Coachella Valley has of regional cooperation is impactful and staff goes through great efforts to ensure that the cooperation allows resources to be deployed when needed. Councilmember Kelly shared that Ms. Moore’s outlook on City finances is distilled, easily comprehended, and expressed her admiration for Ms. Moore’s compassion and resourcefulness when it came to affordable housing. Councilmember Nestande thanked Ms. Moore for helping her manage the City’sfinances during COVID in 2020 during lockdowns and an economic downturn while she was serving as Mayor, and wished her well in her retirement. Mayor Pro Tem Jonathan shared his gratitude for the public safety officials that avoided a massive tragedy with the recent fire. He also shared that he met Ms. Moore 40 years prior to working at City Hall and thanked her for all her years of service. Mayor Pro Tem Jonathan also spoke about the monthly newsletter and encouraged residents to sign up at Cityofpalmdesert.org/newsletter to receive information about Palm Desert happenings. He highlighted an article in the current newsletter about the City seeking Commission and Committee members. Mayor Harnik expressed that public safety is valued at the City of Palm Desert and the first responders’ work relative to the fire showed why that is an important value to have. She also spoke about Palm Desert’s sponsorship of the Choreography Festival on March 6, 2022 at the Gardens on El Paseo featuring the East Valley Dance Project, and encouraged residents to attend. Mayor Harnik then went on to thank Ms. Moore for sharing her time, knowledge, and experience with the City of Palm Desert. Page 14 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 3 NON AGENDA PUBLIC COMMENTS None. 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 27, 2022 (CC) (SA) (HA) Rec.: Approve as presented. 2. RECEIVE CLAIMS AND DEMANDS WARRANTS: City: 1/28/2022, 1/31/2022, and 2/4/2022 (CC); and Successor Agency: 1/31/2022 and 2/4/2022 (SA) Rec.: Receive and file. 3. RECEIVE AND FILE applications for an Alcoholic Beverage License for: (CC) a. Breakfast Republic & Eggies – 44491 Town Center Way, Suite A b. Shadow Mountain – 73800 Ironwood Street Item 3b was removed for consideration under “Consent Items Held Over”. 4. RESOLUTION of the Board of the Successor Agency to the Palm Desert Redevelopment Agency Finding that Real Property Identified as the approximate +/-93 acres from APN 694-310-002, 694-310-003, and a portion of 694-310-006 are Not Subject to Requirements of the Surplus Land Act. (SA) Rec.: That the Successor Agency Board: 1. Waive further reading and adopt Successor Agency Resolution No. SA- RDA 092 finding that the real property owned by the Successor Agency to the Palm Desert Redevelopment Agency (“SARDA”) located on the south side of Gerald Ford Drive, east of the Palm Desert Sheriff Station, identified as the approximate +/-93 acres from APN 694-310-002, 694- 310-003, and a portion 694-310-006 are not subject to requirements of the Surplus Land Act (SLA); 2. Authorize staff to submit a copy of this resolution to the California Department of Housing and Community Development (“HCD”); and 3. Authorize the Executive Director, its designee, and staff in consultation with SARDA legal counsel to take any other actions they deem appropriate or necessary and are consistent to effectuate the purpose of the proposed resolution. Page 15 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 4 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 Resolution No. 2022-12. 6. RESOLUTION to adopt goals and priorities for 2022 calendar year (CC) This item was removed for consideration under “Consent Items Held Over”. 7. RESOLUTION to oppose Initiative 21-0042A1 (CC) Rec.: Approve Resolution No. 2022-14 opposing Initiative 21-0042A1. 8. RESOLUTION to support net energy metering (CC) This item was removed for consideration under “Consent Items Held Over”. 9. APPROVE Amendment No. 1 to the City Manager’s Employment Agreement effective March 1, 2022 (Contract No. C41110) (CC) Rec.: By Minute Motion, Approve Amendment No. 1 to the City Manager’s Employment Agreement with L. Todd Hileman (Exhibit A) effective March 1, 2022. 10. APPROVE out-of-state travel for Special Programs Manager and Public Art Management Analyst to attend the 2022 Americans for the Arts Annual Conference from May 18-20, 2022 in Washington D.C. (CC) Rec.: By Minute Motion, authorize out-of-state travel for Special Programs Manager and Public Art Management Analyst to attend the 2022 Americans for the Arts Annual Conference from May 18-20, 2022 in Washington D.C. 11. APPROVE out-of-state travel for Permit Center Supervisor to attend the 2022 Central Square Permit Software Conference March 26-30, 2022 in Orlando, Florida (CC) Rec.: By Minute Motion, authorize the out-of-state travel for the Permit Center Supervisor to attend the 2022 Central Square Permit Software Conference March 26-30, 2022 in Orlando, Florida. Page 16 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 5 12. APPROVE reimbursement to La Quinta Brewing Company for its public art fee in the amount of $6,200 for Hazy Palms by Artist John Cuevas (CC) Rec.: By Minute Motion: 1. Authorize reimbursement to La Quinta Brewing Company of its public art fee in the amount of $6,200 for Hazy Palms by John Cuevas; and 2. Authorize the Mayor to execute the Public Art Agreement. 13. RECEIVE AND FILE the City of Palm Desert audited financial report for the fiscal year ended June 30, 2021 (CC) Rec.: Receive and file. 14. RECEIVE AND FILE the Independent Accountants’ Report on Agreed-Upon Procedures Performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2021 (CC) Rec.: Receive and file. 15. RECEIVE AND FILE the Palm Desert Recreational Facilities Corporation audited financial reports for the fiscal year ended June 30, 2021 (CC) Rec.: Receive and file. Main Motion: Approve items on the consent calendar, excluding Items 3b, 6 and 8. Moved by: Nestande/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried CONSENT ITEMS HELD OVER 3b. RECEIVE AND FILE applications for an Alcoholic Beverage License for Shadow Mountain – 73800 Ironwood Street (CC) Councilmember Kelly recused herself from this item. Main Motion: Receive and file. Moved by: Nestande/Quintanilla Vote and Action: 4 Yes/0 No/1 Absent (Kelly). Motion Carried 6. RESOLUTION NO. 2022-13 to adopt goals and priorities for 2022 calendar year (CC) Main Motion: Approve Resolution No. 2022-13 adopting the City Council’s goals and priorities for the 2022 calendar year. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried Page 17 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 6 8. RESOLUTION NO. 2022-15 to support net energy metering (CC) Main Motion: Approve Resolution no. 2022-15 in support of net energy metering. Moved by: Jonathan/Harnik Vote and Action: 5 Yes/0 No. Motion Carried ACTION CALENDAR 16. ORDINANCE NO. 1377 and RESOLUTION NO. 2022-16 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 (CC) This item was considered under “Public Hearing”. 17. ORDINANCE NO. 1376 amending Palm Desert Municipal Code Section 2.34.010, to base commissioner and committee member attendance upon the fiscal year (CC) Main Motion: Waive further reading and pass to second reading Ordinance No. 1376 amending Palm Desert Municipal Code Section 2.34.010 to base commissioner and committee member attendance upon a rolling 12 month period. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried 18. CONSIDERATION of an appeal to reaffirm City staffs’ decision to deny the issuance of ten Short-Term Rental (STR) permits related to the Planned Residential zoning district that do not comply with Palm Desert Municipal Code Chapter 5.10 Short-Term Rentals Section 5.10.070 because the ten properties do not exist within an Homeowners’ Association (HOA) as envisioned by that Chapter (CC) Ms. Nancy Tragarz, Appellant representative, provided a summary of the position of the members of the Ironwood Homeowners’ Association. Ms. Ellen Kane spoke in support of staff’s recommendation. Page 18 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 7 Main Motion: 1. Deny the applicants’ appeal for the reasons outlined in this report, thereby reaffirming City staffs’ decision to deny the issuance of ten STR permits that do not comply with Palm Desert Municipal Code (PDMC) Section 5.10.070 since they do not exist within an HOA as contemplated by that Section; and 2. Direct the STR Subcommittee to guide the drafting of a formal definition for an HOA, and initiate a Zoning Ordinance Amendment (ZOA) to Chapter 5.10, and present the ZOA to the City Council at a date uncertain. Moved by: Jonathan/Kelly Vote and Action: 5 Yes/0 No. Motion Carried 19. REQUEST FOR DIRECTION regarding recommendations contained in the 2021 Broker’s Report (CC) Main Motion: 1. Receive and file the 2021 Business Report; and 2. Direct City staff to initiate a Zoning Ordinance Amendment (ZOA) to execute the recommendations contained in the 2021 Commercial Broker’s Report to add new land use categories, remove certain land-uses from requiring a Conditional Use Permit, and to add new land use definitions to the Zoning Ordinance. Moved by: Kelly/Nestande Vote and Action: 5 Yes/0 No. Motion Carried 20. AUTHORIZE the advertisement of a Request for Proposal (RFP) for Automatic License Plate Recognition (ALPR) technology at selected intersections (CC) Main Motion: 1. Authorize the advertisement of a Request for Proposal (RFP) for Automatic License Plate Recognition (ALPR) technology at selected intersections and the formation of a selection committee consisting of member(s) of the Public Safety Commission, City Council, and staff; and 2. Appoint Mayor Pro Tem Jonathan to participate on the selection committee. Moved by: Kelly/Nestande Vote and Action: 4 Yes/0 No/1 Abstain (Quintanilla). Motion Carried 21. Approval of a Second Amendment to the Agreement for Law Enforcement Services between the City of Palm Desert and the County of Riverside (Contract No. C38780) (CC) Main Motion: Approve a second amendment to the agreement for law enforcement services between the City of Palm Desert and the County of Riverside (Contract No. C38780). Moved by: Kelly/Harnik Vote and Action: 5 Yes/0 No. Motion Carried Page 19 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 8 PUBLIC HEARING 16. ORDINANCE NO. 1377 and RESOLUTION NO. 2022-16 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 (CC) Main Motion: Waive further reading and: 1. Pass to second reading Ordinance No. 1377 approving Change of Zone 21-0001 to establish a higher residential density from five (5) units per acre to eight (8) units per acre and adoption of a Mitigated Negative Declaration in accordance with CEQA; and 2. Adopt Resolution No. 2022-16 approving a Tentative Parcel Map 38033, and Precise Plan 21-0008 to construct a 32 single-story unit condominium project, clubhouse, and pool/spa on 3.91 acres at the southwest corner of Gerald Ford Drive and Shepherd Lane. Moved by: Nestande/Harnik Vote and Action: 5 Yes/0 No. Motion Carried 22. REDRAWING of Council member district boundaries (CC) Mayor Harnik opened the public hearing. Ms. Joan Speer shared her opinion regarding redrawing the boundary and changing her district. Hearing no additional public comment, Mayor Harnik closed the public hearing. Main 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. Moved by: Quintanilla/Nestande Vote and Action: 5 Yes/0 No. Motion Carried 23. ORDINANCE NO. 1378 to approve the Zoning Ordinance Amendment to modify Palm Desert Municipal Code Section 25.34.060 regarding time-share projects (CC) Mayor Harnik opened the public hearing, and upon a request by staff, continued the public hearing to the next regular meeting of March 24, 2022. Mayor Harnik opened the public hearing, and at staff’s request, continued it to the next meeting of March 24, 2022. No public comment was offered. Page 20 DRAFT MINUTES – For discussion purposes only FEBRUARY 24, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 9 24. RESOLUTION NO. 2022-17 to approve an addendum to the Mitigated Negative Declaration and amendment to Tentative Parcel Map 37157 for Monterey Crossing, an 18-acre mixed use commercial development located at the northeast corner of Monterey Avenue and Dinah Shore Drive (CC) Mayor Harnik opened the public hearing and upon receiving no public comment, closed the public hearing. Main Motion: Waive further reading and adopt Resolution No. 2022-17 approving the addendum to a Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program and an amendment to Tentative Parcel Map 37157. Moved by: Kelly/Nestande 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 6:59 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 21 [This page has intentionally been left blank.] Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 [This page has intentionally been left blank.] Page 40 Page 41 Page 42 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM To: Honorable Mayor and Councilmembers From: Heather Horning, Assistant to the City Manager Date: March 24, 2022 Subject: Council Member District Boundary Map 3C At the March 10, 2022 City Council meeting during the presentation for Public Hearing Item 16, Redrawing of Council Member District Boundaries 4th Public Hearing, the population of District 1 was incorrectly stated to be 20.22% of the total population with a Citizen Voting Age Population (CVAP) of 37.4% Hispanic. The correct information was included in the staff report for this item and is as follows: Map 3C has a District 1 population of 19.05% of the total population with a CVAP of 50.4% Non- Latino White and 37.9% Hispanic. Page 43 Page 44 Page 45 ORDINANCE NO. 1380 the legislative body by voters of the district alone, as provided in Government 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 thirty (30) days after 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 98988.10029\34879464.3 Page 46 Page 47 98988.10029\34879464.3 ORDINANCE NO. 1380 Exhibit A Final District Boundary Map Page 48 RESOLUTION NO. 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, SETTING FORTH ITS FINDINGS AND AUTHORIZING THE DESTRUCTION OF PAPER RECORDS THAT HAVE BEEN DIGITALLY IMAGED FROM THE DEVELOPMENT SERVICES DEPARTMENT (PLANNING/LAND DEVELOPMENT DIVISION), TO RELY ON THE ELECTRONIC RECORD AS THE OFFICIAL RECORD WHEREAS, the Development Services Department of the City of Palm Desert, California, has imaged, in compliance with applicable state laws, official files, records, exhibits, permits, and other documents of said department; and WHEREAS, the images have been quality checked, and contain all significant details from the original and are an adequate substitute for the original document for all purposes for which the document was created or maintained; and WHEREAS, indexing has been verified/quality checked; and WHEREAS, the images have been placed on optical media that cannot be altered or changed (DVD-r, CD-R, or WORM), microfilm or microfiche; and WHEREAS, the optical media that cannot be altered or changed (DVD-r, CD-R, or WORM), microfilm or microfiche, has been stored in a safe and separate location. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: Section 1. That the above recitations are true and correct and constitute the findings of the Coty Council in this matter. Section 2. That it does hereby approve the destruction of the paper version of the documents, records or files as set forth in Exhibit “A” attached hereto, to rely on the images as the “Official Record” and will be retained for the applicable retention period. Section 3. That paper files dated 1984 to 2019 containing adjustments, administrative use permits, change of zones, conditional use permits, development plans, general files, general plan amendments, miscellaneous, parcel map waivers, precise plans, RV permits, sign applications, temporary use permits, tentative parcel maps, tentative tract maps, and variances have exceeded its retention period (Exhibit “A”). Page 49 RESOLUTION NO. 2022-____ 2 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council held on this 24th 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 50 RESOLUTION NO. 2022-____ 3 EXHIBIT “A” DESTRUCTION OF FILES FROM THE DEVELOPMENT SERVICES DEPARTMENT (PLANNING/LAND DEVELOPMENT DIVISION) THAT HAVE EXCEEDED ITS RETENTION PERIOD RETENTION NO. CONDITIONAL USE PERMITS, CHANGE OF ZONES, DEVELOPMENT PLANS, MISCELLANEOUS, PRECISE PLANS, SIGN PERMITS, AND TEMPORARY USE PERMITS (1997-2006) BOX NO. D-PL-38 PL-017 43775 DEEP CANYON ROAD - HOLD ARCHITECHS TUP 05-40 - 2005 PL-018 43775 DEEP CANYON ROAD - SACRED HEART CUP 92-7 - 1997 PL-017 43775 DEEP CANYON ROAD - SACRED HEART CHURCH TUP 06-26 - 2006 PL-017 43775 DEEP CANYON ROAD - SACRED HEART CHURCH SA 03-94 - 2004 PL-017 43775 DEEP CANYON ROAD - SACRED HEART PRESCHOOL SA 02-163 - 2002 PL-018 43775 DEEP CANYON ROAD - SACRED HEART DP 2178 - 1980 PL-018 43775 DEEP CANYON ROAD - SACRED HEART CHURCH CUP 85-2 AMENDMENT 1 - 2002 PL-018 43775 DEEP CANYON ROAD - SACRED HEART CHURCH CUP 85-2 AMENDMENT 2 - 2003 PL-017 43775 DEEP CANYON ROAD - SACRED HEART CHURCH MISC 04-02 - 2004 PL-017 44835 DEEP CANYON ROAD - ANDREW PIERCE CORP TUP 05-37 - 2005 PL-018/PL-025 44835 DEEP CANYON ROAD - LOHMAN ANDREW PIERCE CORP PP 97-7 CZ 97-7 - 1997 RETENTION NO. CHANGE OF ZONES, CONDITIONAL USE PERMITS, PRECISE PLANS, AND TENTATIVE TRACT MAPS (1997-2005) BOX NO. D-PL-39 PL-018 43775 DEEP CANYON - SACRED HEART CHURCH CUP 04-13 FILE 1 OF 2 - 2005 PL-018 43775 DEEP CANYON - SACRED HEART CHURCH CUP 04-13 FILE 2 OF 2 - 2005 PL-018/PL-025 43920 DEEP CANYON-SOUTHLAND COMMUNITIES-TT 28295 C/Z 96-5 C/Z 95-6 PP 95-10 - 1997 RETENTION NO. CONDITIONAL USE PERMIT, CHANGE OF ZONE, GENERAL PLAN AMENDMENTS, MISCELLANEOUS, PRECISE PLANS, SIGN APPLICATIONS, AND TENTATIVE TRACT MAPS (1996-2006) BOX NO. D-PL-40 PL-018 44300 DEEP CANYON - WORLD DEVELOPMENT THE GROVE - TT 24984 - 2000 PL-012/PL- 018/PL-025 44605 44675 DEEP CANYON - GPA 03-02, C/Z 03-01, PP 03-05 - 2004 PL-017 44755 DEEP CANYON - REBUILD LETTER - 2004 PL-017 44775 DEEP CANYON - ASSOC PSYCO THERAPY CENTER - SA 99-11 - 1999 PL-018 44775 DEEP CANYON - AFFILIATED PSYCHOTHERAPIST - PP 98-14 - 1999 PL-018/PL-025 44875 DEEP CANYON - DENNIS GODECKE - CUP 87-16, C/Z 97-1 - 1997 PL-017 44875 DEEP CANYON - GODECKE AND CLARK/PAINT COLORS - MISC - 2002 PL-017 45428 DEEP CANYON - MACDOUGALL AND KELLY/WALL - MISC - 1996 PL-017 45797 DEEP CANYON - TRIM COLOR - MISC - 2006 PL-017 45900 DEEP CANYON - ROMNEY/WALL - MISC - 2004 PL-018 45800 DEEP CANYON - AMBROSE - CUP 02-35 - 2002 PL-017 73055 DEER GRASS - FRED SANDS/DIRECTIONAL SIGN - SA - 2001 PL-017 43175 DELAWARE ST - SNIJDERS - RV 06-04 - 2006 PL-017 43175 DELAWARE ST - COLOR - MISC - 2006 Page 51 RESOLUTION NO. 2022-____ 4 RETENTION NO. ADJUSTMENTS, CONDITIONAL USE PERMITS, MISCELLANEOUS, PRECISE PLANS, SIGN PERMITS, TEMPORARY USE PERMITS, AND TENTATIVE TRACT MAPS (1986-2008) BOX NO. D-PL-41 PL-017 74855 Country Club-Desert Springs Marriott TUP 04-42/TUP 04-44/TUP 05-44/TUP 05-59/TUP 06-34 2005 PL-017 74855 Country Club - Tuscany Marriott Desert Springs - 1602 SA - 1989 PL-018 74855 Country Club - Desert Springs Marriott TT 21698 - 1986 PL-017 74855 Country Club - Mariposa Springs - 1984 SA - 1991 PL-017 74855 Country Club - Sprint Nextell - MISC 06-43 - 2006 PL-017/PL-018 74855 Country Club-Marriott Armadillo Joint Venture-PP 15-83/TT 19619/TUP 06-42/TUP 92-60 SA 98-59 2006 PL-018 76375 COUNTRY CLUB - SUNRISE DESERT PARTNERS - VESTING TT 28227 - 1995 PL-018 74350 Country Club - ALESSANDRO DRIVE - B-4 - CUP 07-02 - 2007 PL-018 73111 COUNTRY CLUB DRIVE - HOLLY NELSON - CUP 05-06 - 2006 PL-018 72840 Country Club - DAVIS ROAD - GARCIA - ADJ 08-86 -2008 PL-018 72850 DEERGRASS - ADJ 08-29 - 2008 PL-018 77555 DELAWARE - LUCKEROTH - CUP 01-18 - 2002 PL-017 77745 DELAWARE PLACE - SPENCER RESIDENCE MISC - 1997 PL-017 77575 DELAWARE PLACE - LARRY HAZELTON - MISC 05-35 - 2005 PL-018 77576 DELAWARE PLACE - BRENDA AND MIKE SCARCELLA - CUP 00-15 - 2000 PL-017 77577 DELAWARE - TUP 06-38 - 2006 PL-017 77635 DELAWARE - MISC 04-33 - 2004 PL-018 77685 DELAWARE - ADJ 06-03 - 2006 RETENTION NO. CHANGE OF ZONES, CONDITIONAL USE PERMITS, GENERAL PLAN AMENDMENTS, MISCELLANEOUS, PARCEL MAP WAIVERS, PRECISE PLANS, AND SIGN PERMIT (1984-2007) BOX NO. D-PL-42 PL-017 77747 DELAWARE - HTE 07-104, MISC 07-42 - 2007 PL-018 77905 DELAWARE - MISC 00-16, CUP 00-12 - 2000 PL-025 77935 DELAWARE - BARNETT - CZ 03-07 - 2003 PL-017 77935 DELAWARE - MISC 07-40 - 2007 PL-017 74755 DEL CORONODO DRIVE LOT 1 - MISC 05-22 - 2005 PL-017 74775 DEL CORONADO LOT 2 - MISC 05-23 - 2005 PL-017 99 DESERT FALLS DRIVE EAST - DESERT FALLS COUNTRY CLUB - SA 05-63 - 2005 PL-017 1111 DESERT FALLS PARKWAY - LINKS SIGN - 1989 PL-017 1111 DESERT FALLS PARKWAY - THE VILLAS AT DESERT FALLS - 1397 SA - 1987 PL-012/PL-025 73827 DESERT GARDEN TRAIL - MAZAHERI - GPA 03-83, CZ 08-83 - 1984 PL-017 73978 DESERT GARDEN TRAIL LANDSCAPE PLAN - 2006 PL-017 39830 DESERT GREENS DRIVE EAST – ADDRESS CHANGE - 2005 PL-017 46335 DESERT LILY DRIVE - SHALHOUB - PMW 03-16 - 2003 PL-017 46335 DESERT LILY DRIVE - PMW 03-16 - 2003 PL-018 46340 DESERT LILY DRIVE - MISC 99-9 - 1999 PL-017 47200 DESERT LILY DRIVE - JERRY PREECE - MISC 03-10 - 2003 PL-017 DESERT MIRAGE DRIVE - MISC 04-32 - 2004 PL-018 38770 DESERT MIRAGE - MISC 03-47 - 2003 PL-017 73230 DESERT ROSE DRIVE - WESLEY AND BONNIE SARTAIN - MISC 06-23 - 2006 PL-017 73295 DESERT ROSE DRIVE - MISC 99-12 - 1999 PL-017 73450 DESERT ROSE DRIVE - COLORS - 2007 PL-017 72731 DESERT VIEW - PAUL LEWIS – BOAT STORAGE - 1991 PL-017 72750 DINAH SHORE #102 - DECORATOR'S DEPOT - SA 02-150 – 2002 PL-017 72750 DINAH SHORE #103 - JET SPA USA - SA 02-142 - 2002 PL-018 39000 DESERT WILLOW DRIVE - PP 00-9 - 2002 PL-018 39000 DESERT WILLOW DRIVE - CUP 97-1 - 1997 PL-018 39005 DESERT WILLOW DRIVE - SONNENBLICK DEL RIO HOTEL - PP 01-25 - 2001 Page 52 RESOLUTION NO. 2022-____ 5 RETENTION NO. GENERAL FILES (2007-2013) BOX NO. D-PL-361 PL-002 LAFCO: NORTH OF I-10 FILE 3 - 2011 PL-002 LAFCO: NORTH OF I-10 FILE 4 - 2013 PL-002 LAFCO: NORTH OF I-10 FILE 5 - 2012 PL-002 LAFCO: GENERAL - 2010 CW-025 LANDSCAPE DESIGN GUIDE - 2009 CW-025 MASSAGE: GENERAL - 2010 CW-025 MCCALLUM EXPANSION - 2007 CW-025 MEDIUM DENSITY - 2004 CW-025 MORATORIUM - UNIVERSITY PARK - 2003 CW-025 NOISE ORDINANCE - 2008 CW-025 NON-MOTORIZED TRANSPORTATION PLAN - 2009 CW-025 PALM DESERT MOBILE ESTATES - 2008 CW-025 PALM DESERT MOBILE ESTATES APPRAISAL - 2011 CW-025 PALM SPRINGS ART MUSEUM - PALM DESERT CAMPUS - 2010 CW-025 PALM DESERT COUNTRY CLUB LEGAL - 2010 CW-025 PALM DESERT COUNTRY CLUB CODE VIOLATIONS/MAINTENANCE - 2009 CW-025 PALM DESERT COUNTRY CLUB GATEWAY PROJECT - 2007 CW-025 PALM SPRINGS UNIFIED NEEDS ASSESSMENT FILE 1 - 2007 RETENTION NO. GENERAL FILES (1988-2016) BOX NO. D-PL-363 CW-025 PALM SPRINGS UNIFIED NEEDS ASSESSMENT FILE 2 - 2008 CW-025 PENDING LEGISLATION - 2007 CW-025 PROJECT MANAGEMENT - 2006 CW-025 PROPERTY ACQUISITION - FROMME PROPERTY (CONFIDENTIAL) - 2009 CW-025 PROPERTY ACQUISITION - K. RUST PROPERTY (CONFIDENTIAL) - 2012 CW-025 PROPERTY ACQUISITION - ROCKE PROPERTY (CONFIDENTIAL) - 2012 CW-025 PROPERTY ACQUISITION - SNELLENBERGER (CONFIDENTIAL) - 2012 CW-025 PROPERTY EXCHANGE - D. NELSON - (CONFIDENTIAL) - 2010 CW-025 PROPERTY TRANSFER FORMS - 1989 CW-025 PURCHASE ORDERS - 2009 CW-025 QUICKSILVER HOTEL - 2016 CW-025 REAL FACTS - 2007 CW-025 RIVERSIDE COUNTY COMMENTS - 2006 CW-025 SAGE PLACE INFO (CITY ATTORNEY) - 1988 CW-025 SCAG RTP & GROWTH - 2003 CW-025 SARGENT TOWN PLANNING SPECIFIC PLANNER/EIR 170-ACRE PARCEL - 2015 CW-025 SCHOOLS BY DESIGN - 2010 CW-025 SCHOOL DISTRICT BOUNDARIES - 2001 CW-034 SHAH LITIGATION - 1990 CW-025 SMOKING ORDINANCE COMMITTEE - 2009 CW-025 SMOKING ORDINANCE INFORMATION - 2009 Page 53 RESOLUTION NO. 2022-____ 6 RETENTION NO. GENERAL AND PROJECT FILES (1984-2019) BOX NO. D-PL-364 GENERAL FILES: CW-025 STRATEGIC PLANNING PROCESS - 1984 CW-025 STRATEGIC PLANNING 2010 - 1997 CW-025 SOLAR PANELS - 43250 ALABAMA STREET - 2012 CW-025 SUBCONTRACTOR SUBSTITUTION HEARINGS - CARLOS ORTEGA VILLAS -2014 CW-025 SUBCONTRACTOR SUBSTITUTION HEARINGS - AQUATIC CENTER - 2011 CW-025 SUPER TARGET - 2008 CW-025 SUSTAINABILITY PLAN & GHG INVENTORY - 2009 CW-025 SUSTAINABILITY PLAN & GREENHOUSE GAS - 2009 CW-025 TIMESHARE FEES - 2007 CW-025 UNIVERSITY PLANNING COMMITTEE - 2009 CW-025 UNIVERSITY FIRE STATION - 2008 CW-025 UNIVERSITY HIGH SCHOOL - 2004 CW-025 UNLAWFUL CAMPING - 2009 CW-025 VALET PARKING ORDINANCE - 2007 CW-025 VILLA PORTOFINO - 2010 CW-025 WILLDAN: CODE SERVICES - 2017 PL-025 ZONING ORDINANCE UPDATE - 2008 PROJECT FILES: PL-018 73400 EL PASEO - CODA GALLERY FAÇADE ENHANCEMENT - MISC 15-328 - 2015 PL-018 73445 EL PASEO #101 - LORNA CHANGE FAÇADE CHANGES - MISC 14-219 - 2014 PL-018 73712 ALESSANDRO DRIVE #B-2 - PATH PILATES & YOGA - AUP 16-37 - 2016 PL-017 73135 AMBER STREET - RV STORAGE - RV 17-161 - 2017 PL-017 73342 BURSERA WAY - RV STORAGE - RV 18-0002 - 2018 PL-017 74868 COUNTRY CLUB DRIVE - THE VINE WINE BAR - ENT 19-0001 - 2019 PL-018 77734 COUNTRY CLUB DRIVE #F - ALPS VILLAGE RESTAURANT - CUP 15-382 - 2016 PL-018 77734 COUNTRY CLUB DRIVE #B - GOLF CARS DISPLAY - AUP 14-272 - 2015 PL-017 77750-77780 COUNTRY CLUB DRIVE - COUNTRY CLUB MARKETPLACE SIGN-SA 15-302 - 2016 PL-017 73640 EL PASEO - CAFÉ DES BEAUX OUTDOOR DINING - CDP 13-210 - 2014 PL-017 73660 EL PASEO - MELISSA MORGAN ART SIGN - SARC 19-0004 - 2019 PL-017 75048 GERALD FORD DRIVE - UNIVERSITY CENTRE SIGN PROGRAM - SARC 19-0002 - 2019 PL-018 73101 HIGHWAY 111 - RIGHT-OF-WAY VACATION - PMW 15-383 - 2016 PL-018 73703 HIGHWAY 111 - CASUELAS CAFÉ/MERGE FOUR PARCELS - PMW 15-326 - 2016 PL-018 45400 LARKSPUR LANE - EL PASEO HOTEL/MERGE LOTS - PMW 15-365 - 2016 PL-018 74898 LESLIE AVENUE - CARPORT EXCEPTION - MISC 19-0002 - 2019 Page 54 Contract No. ___________ STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Andy Ramirez, Deputy Director of Public Works REQUEST: Authorize an Agreement with Southern California Edison (SCE) to Retrofit SCE streetlights to LED Recommendation: By Minute Motion: 1. Authorize the City Manager to execute an Agreement with Southern California Edison to retrofit SCE streetlights under the LS-1 Option E Program; 2. Direct that the Municipal Code Chapter 24.16 Outdoor Lighting Requirements be amended (along with annual ordinance updates) to recognize 4000 Kelvin color temperature as the City’s standard for all streetlights; and, 3. Authorize staff to secure a streetlighting consultant to geo-locate all City- owned LS-2/LS-3 streetlight locations and develop photometric requirements prior to retrofitting any outstanding streetlight fixtures to LED for an amount not to exceed $15,000. Strategic Plan Objective: The LS-1 Option E agreement aligns with the City’s strategic plan to be a responsible steward of the City’s natural resources by reducing greenhouse gas emissions and reducing per-capita consumption of energy. Background: The California Public Utilities Commission (CPUC) and Southern California Edison (SCE) opened a Streetlight Acquisition Program in 2012 that allowed municipal agencies to purchase SCE streetlights within their respective jurisdictions. For several years, various cities obtained ownership of these streetlights and retrofitted fixtures from high pressure sodium vapor (HPSV) lamps to energy efficient LEDs leading to lower electricity use, lower greenhouse gas emissions, and lower electricity costs. Additionally, these cities further reduced their long-term billing costs by managing their own operations and maintenance program. Due to SCE billing rates continuing to rise each year, and as much as 9 percent in 2021, the Public Works Department (Department) researched the feasibility of participating in the Streetlight Acquisition Program. Staff contacted Daniel Soltero, Energy Program Manager for Western Riverside Council of Governments (WRCOG), who assisted several municipalities with acquiring streetlight assets from SCE. Mr. Soltero informed staff that the Streetlight Acquisition Program Page 55 Contract No. __________ March 24, 2022 - Staff Report SCE Streetlight LED Retrofit Page 2 of 5 ended in August of 2015. This conclusion was also confirmed by SCE and the Coachella Valley Association of Governments (CVAG). Since the sunset of the Streetlight Acquisition Program, other cities have attempted to gain ownership of SCE streetlights by various means including eminent domain. No city has been successful in obtaining the ownership of SCE streetlights using eminent domain. Fortunately, the Department learned of another green initiative that commenced in January of 2016, known as the LS-1 E Option tariff program (LS-1 Option E). In this program, a customer city enters into an agreement whereby SCE funds the retrofit of their fixtures to energy efficient LED lighting. Within the City of Palm Desert, there are currently 513 SCE owned streetlights located within residential and arterial areas (refer to vicinity map). These LS-1 fixtures are unmetered streetlights owned, operated, and maintained by SCE. Under the LS-1 Option E program, there is no up-front cost to the City. To pay for the improvements, an Energy Efficiency Premium Charge (EEPC) would be added to the existing streetlighting bill. Color and Brightness of Streetlights The proposed change of street lighting from the standard High Pressure Sodium Vapor (HPSV) lamps to LED will impact the visual appearance of the lighting throughout the City, most notably related to the light color. Color temperature is a characteristic of visible light and is stated in units of temperature, known as Kelvin (K). Light temperature runs on a color spectrum numbered from zero (0) to ten thousand (10,000). As indicated in the chart below, lower temperatures produce a redder light, medium temperatures produce a whiter light, and higher temperatures produce a bluer light. Currently, signalized intersections at Fred Waring and San Pablo and the street entrance to the College of the Desert off San Pablo utilize a 4,000 K color temperature. Overall, this neutral color improves visibility and decreases concealment in public settings, thus contributing to increased safety. Page 56 Contract No. __________ March 24, 2022 - Staff Report SCE Streetlight LED Retrofit Page 3 of 5 To maintain City-wide consistency, staff recommends 4,000 K as the City standard for residential and commercial streetlighting. Reduction of Light Pollution Through careful photometric planning, LED lighting contributes to the reduction of light pollution helps maintain the valley’s dark skies. As demonstrated in the photographs below, LED technology is designed to direct light toward the street and sidewalk areas. This feature reduces light spillover toward windows and unwanted areas. In the event there are challenges with lighting spillover, shielding can be installed by SCE to minimize any nuisance impacts. Greenhouse Gas Emissions Per SCE, the existing HPSV lights are currently utilizing 268,301 kWh annually. The new LED lights will only utilize approximately 94,000 kWh per year. This equates to an energy savings of approximately 174,300 kWhs per year. Inputting this figure into the Environmental Protection Agency Greenhouse Gas reduction calculator, the City is to expect an annual reduction of 136 tons of carbon dioxide emissions. Timeline and Recycling Commitment Should the City proceed with this agreement, SCE would manage the project from start to finish with a current wait time of approximately five months prior to commencing installation. Fixture replacements do not require outages and are conducted safely without disruption to area residents. SCE has emphasized their commitment to being good stewards of the environment through recycling. Therefore, upon removal of old high pressure vapor lamps, fixtures are properly broken down into smaller components for recycling. RPEC Approval Process On Monday, February 28, 2022, a staff report was presented to the Resource Preservation & Enhancement Committee (RPEC) for review of the program and the committee unanimously recommended that the City Council accept the proposed recommendations. Page 57 Contract No. __________ March 24, 2022 - Staff Report SCE Streetlight LED Retrofit Page 4 of 5 Fiscal Analysis Implementing the LS-1 Option E program will not have a negative impact to the general fund. As part of the program, SCE will pay the upfront cost to change all LS-1 streetlights to LED. Under the LS-1 Option E program, an EEPC would be added to the existing streetlighting bill to pay for this program. The chart below demonstrates how the City will realize an annual energy cost savings of approximately $16,477 for the first 20 years. This equates to a cumulative savings of $329,540 over 20 years. At the conclusion of the EEPC 20-year payback period, it is estimated that the annual cost savings will increase to more than $26,072, assuming electricity rate increases are consistent with historic averages. Should electricity rates increase at a greater rate, there is a potential for greater cost savings. Page 58 Contract No. __________ March 24, 2022 - Staff Report SCE Streetlight LED Retrofit Page 5 of 5 SCE has also confirmed that as of March 1, 2019, customer cities are eligible to receive the Distribution Pole-Mounted Streetlight Discount. This discount will be applied to the monthly bill as a credit of $4.29 per distribution pole-mounted streetlight. Currently, the City has 153 SCE distribution pole-mounted lights. Therefore, the City will realize a monthly credit of $682.38 or $8,188.56 annually. Following the completion of the LS-1 streetlight retrofit program, staff will secure a streetlighting consultant to geo-locate all City-owned LS-2/LS-3 streetlight locations and develop photometric requirements prior to retrofitting any outstanding streetlight fixtures to LED technology. An amount not to exceed $15,000 for this work will be allocated in the Public Works Administration Account 1104300-43090000, Prof-Tech Other. Although this account currently has a negative balance of $14,683.79, staff expects to offset the excess with savings from other Public Works Administration accounts. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Veronica Chavez Veronica Chavez Director of Finance Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman, City Manager: L. Todd Hileman VENDOR: Southern California Edison Business Customer Division 2244 Walnut Grove Avenue Rosemead, CA 91770 ATTACHMENTS: LS-1 Option E Agreement Streetlight Location Map COD Streetlight Map Page 59 Southern California Edison Original Cal. PUC Sheet No. 57074-E Rosemead, California (U 338-E) Cancelling Cal. PUC Sheet No. Sheet 1 SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 3241-E R.O. Nichols Date Filed Jun 30, 2015 Decision 14-10-046 Senior Vice President Effective Jun 1, 2016 1P8 Resolution   Contract No. ___________ Page 60 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 1 This Schedule LS-1 Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement Rate Agreement (Agreement), effective this day of _, _(Effective Date), is entered into between Southern California Edison Company (SCE) and ________, an SCE customer taking service on Schedule LS-1 (Applicant), referred to collectively as "Parties," and individually as "Party." This Agreement provides for SCE, at Applicant’s request, to replace the existing street lighting fixtures serving Applicant’s premises with Light Emitting Diode (LED) street lighting fixtures to achieve energy efficiency benefits for Applicant, as set forth in Special Condition 14, Option E, Energy Efficiency-Light Emitting Diode (LED) Fixture Replacement, of Schedule LS-1. The Parties agree as follows: 1. LED FIXTURES SCE shall install, own, operate, and maintain LED Fixtures for Applicant as set forth in Exhibit "A" attached hereto and incorporated herein by this reference. The LED Fixtures provided hereunder shall at all times remain the property of SCE. 2. LED FIXTURE REPLACEMENT COSTS 2.1 The replacement costs of the LED Fixtures provided hereunder shall be borne by Applicant. 2.2 Applicant shall pay the charge for the LED Fixtures Replacement rate, which includes an Energy Efficiency Premium Charge (EEPC) and a Base LED Charge, under Option E of Schedule LS-1. Applicant elects Option E in lieu of an upfront, one-time payment of the replacement costs. 2.3 SCE does not guarantee that any energy or bill savings will accrue to Applicant as a result of the LED Fixture replacements. 3. COMMENCEMENT OF SERVICE The Parties agree that SCE has the right to charge Applicant, and Applicant has an obligation to pay SCE, for the charges set forth in Schedule LS-1, Option E, commencing on the date SCE begins serving the LED Fixtures installed pursuant to this Agreement. 4. TERM AND TERMINATION 4.1 This Agreement shall be effective as of the Effective Date and shall continue for a term of twenty (20) years from the commencement of service as specified in Section 3 above (Term). 4.2 Applicant may terminate this Agreement at any time during the Term upon a thirty (30) - day advance written notice, provided that Applicant, prior to or within the 30-day advance notice period, assigns the Agreement to any New Party In (NPI) that owns, rents or leases the premises served by the street lighting fixtures replaced under this Agreement and will take service under Option E of Schedule LS-1 effective as of the date of termination; otherwise, Applicant shall pay a one-time termination charge equal to the present value of the balance of the EEPC of Option E over the remaining Term. The present value is determined based on SCE’s authorized rate of return on rate base, or discounted rate of 7.90%. 24th March 2022 City of Palm Desert Contract No. __________ Page 61 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 2 5. AMENDMENTS; ASSIGNMENTS 5.1 Any changes or amendments to this Agreement must be in writing and must be executed by the Applicant and SCE and, if required, be approved by the California Public Utilities Commission (Commission). 5.2 Applicant shall not assign this Agreement without the prior written consent of SCE; provided, however, that Applicant may assign the Agreement pursuant to the terms and conditions of Section 4.2 above, and the NPI must assume all rights and obligations under this Agreement for the remaining Term. Any assignment and assumption shall be in a form acceptable to SCE. 6. NOTICE Any notice either Applicant or SCE may wish to provide the other regarding this Agreement must be in writing. Such notice must be either hand-delivered or sent by U.S. certified or registered mail, postage prepaid, to the person designated to receive notice for the other Party below, or to such other address as either may designate by written notice. Notices delivered by hand shall be deemed effective when delivered. Notices delivered by mail shall be deemed effective when received, as acknowledged by the receipt of the certified or registered mailing. Applicant: SCE: (Name) Business Customer Division (Title) Southern California Edison Company   2244 Walnut Grove Avenue (Address) Rosemead, CA 91770 (City, State, Zip) 7. NONWAIVER The failure of either Party to enforce any of the terms and conditions or to exercise any right or privilege in this Agreement shall not be construed as a waiver of any such term and conditions or rights or privileges, and the same shall continue and remain enforce and effect as if no such failure to enforce or exercise had occurred. 8. SEVERABILITY In the event that any of the provisions, or portions thereof, of this Agreement are held to be unenforceable or invalid by the Commission, or any court of competent jurisdiction, the validity and enforceability of the remaining provisions or any portion thereof shall not be affected. 9. APPLICABLE LAWS, RULES, AND REGULATIONS This Agreement shall be subject to, and interpreted under the laws, rules, decisions and regulations of the State of California, without regard to its conflict of laws principles, the Commission, and SCE's Commission-approved tariffs. City of Palm Desert L. Todd Hileman, City Manager 73510 Fred Waring Drive Palm Desert, CA 92260 Contract No. _________ Page 62 SOUTHERN CALIFORNIA EDISON COMPANY SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT RATE AGREEMENT Form 14-965 06/2016 3 10. CALIFORNIA PUBLIC UTILITIES COMMISSION JURISDICTION 10.1 This is a filed form tariff agreement authorized by the Commission for use by SCE. No officer, inspector, solicitor, agent or employee of SCE has any authority to waive, alter, or amend any part of this Agreement except as provided herein or authorized by the Commission. This Agreement is to be used in conjunction with Schedule LS-1 and supplements the terms and conditions of the Applicant's electric service under Schedule LS-1. 10.2 This Agreement shall at all times be subject to such changes or modifications by the Commission as said Commission may, from time to time, direct in the exercise of its jurisdiction. 10.3 Notwithstanding any other provisions of this Agreement, SCE has the right to unilaterally file with the Commission, pursuant to the Commission's rules and regulations, an application for change in rates, charges, classification, service, or rule or any agreement relating thereto. 11. ENTIRE AGREEMENT This Agreement, including SCE’s Commission-approved tariffs, constitutes the complete agreement and understanding between the Applicant and SCE regarding the LED Fixtures replacement costs. Prior agreements, representations, understandings, whether expressed or implied, and communications, oral or written, between the Applicant and SCE shall not be construed to be a part of this Agreement. 12. AUTHORIZATION SIGNATURE In witness whereof, the Parties hereto have caused this Agreement to be signed by their duly authorized representatives. APPLICANT BY: NAME: TITLE: DATE SIGNED: SOUTHERN CALIFORNIA EDISON COMPANY BY: NAME: TITLE: DATE SIGNED: L. Todd Hileman City Manager March 24, 2022 Contract No. _________ Page 63 Form 14-965 06/2016 4 SOUTHERN CALIFORNIA EDISON COMPANY EXHIBIT “A” SCHEDULE LS-1 OPTION E, ENERGY EFFICIENCY-LIGHT EMITTING DIODE (LED) FIXTURE REPLACEMENT APPLICANT CUSTOMER ACCOUNT NO. SERVICE ACCOUNT NO. (Additional account numbers/addresses may be attached hereto.) SERVICE ADDRESS APPLICANT REQUESTED READY TO SERVE DATE    ASAP  SCE READY TO SERVE DATE DESCRIPTION OF LED FIXTURES/SCOPE OF WORK: SPECIFY HOW MANY STREET LIGHTING FIXTURE REPLACEMENTS ARE BEING REQUESTED AND AGREED TO UNDER THIS AGREEMENT AND OTHER RELEVANT DETAILS. W.O. No(s): CITY OF PALM DESERT Contract No. __________ Page 64 Page 65 3/8/22, 1:49 PM 43900 San Pablo Ave - Google Maps https://www.google.com/maps/@33.7321942,-116.3824797,3a,25.1y,341.19h,93.25t/data=!3m6!1e1!3m4!1sWh0Wq_NKa6QUgt-WXDKG5g!2e0!7i16…1/1 Image capture: Aug 2021 © 2022 Google Street View - Aug 2021 Palm Desert, California Google 43900 San Pablo Ave Page 66 CONTRACT NO. C37020A STAFF REPORT CITY OF PALM DESERT PUBLIC AFFAIRS DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Vanessa Mager, Management Analyst REQUEST: Approval of Palm Desert’s 2022 Independence Day Celebration Recommendation By Minute Motion: 1. Preapprove and authorize expenditures in an amount not to exceed $75,000 ($46,000 to Pyro Spectaculars, Inc. and $29,000 to ancillary vendors) from the FY 2022/23 Budget for production of the 2022 Independence Day Celebration event; 2. Authorize City Manager to execute a one-year extension of Contract No. C37020A with Pyro Spectaculars, Inc. in the amount of $46,000 for the fireworks display; and 3. Authorize City Manager to execute any ancillary vendor contracts associated with production of celebration in an amount not to exceed $29,000. Strategic Plan Approval of Palm Desert’s 2022 Independence Day Celebration would help address the following priorities as specified in the 2013-2033 Strategic Plan, Envision Palm Desert – Forward Together: − Economic Development Priority 3: Create and attract entertainment and events to enhance and expand the Palm Desert economy and lifestyle. − Tourism and Marketing Priority 2: Grow existing events and develop new events to enhance the desirability of Palm Desert as a year-round destination. Background For more than three decades the City of Palm Desert has produced a large-scale Independence Day Celebration, which attracts more than 10,000 spectators to Civic Center Park. For most of those 30 years, the fireworks have been provided without incident by Pyro Spectaculars, Inc. In 2018, the City entered a new three-year contract with Pyro Spectaculars that authorized two one-year extensions. In 2021, Council approved the first of the one-year extensions and Staff is seeking approval of a second one-year extension to the contract with Pyro Spectaculars for a total amount of $46,000 for FY 2022/23. Page 67 March 24, 2022 - Staff Report CONTRACT NO. C37020A Approval of Palm Desert’s 2022 Independence Day Celebration Page 2 of 2 Additional festivities for this year’s event include food trucks and other vendors, children’s activities, a color guard presentation, and a live music followed by the 20-minute fireworks display synchronized to patriotic music simulcast on local radio stations. Anticipated expenditures for the celebration include professional sound and lighting services in conjunction with the concert, two live onsite radio remotes, radio promotion, shuttle service for attendees between the Gardens on El Paseo and the park, event insurance, health department permit, golf cart rentals, two-way radios for staff and other agencies to communicate during the event, and other related expenditures. Fiscal Analysis Funding for this event in the amount not to exceed $75,000 will be included as part of the FY 2022/2023 Financial Plan and available in City-Produced Events Account No. 1104416- 4306101. LEGAL REVIEW DEPARTMENT REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Thomas Soule Thomas Soule Public Affairs Manager Veronica Chavez Veronica Chavez Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman APPLICANT: NONE ATTACHMENTS: 1. Original Professional Service Agreement with Pyro Spectaculars, Inc 2. Agreement to extend the term of Contract No. C37020A Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Contract No. C37020A AMENDMENT NO. 2 This AMENDMENT No. 2 (“Amendment”), to Contract No. C37020A is entered into as of March 25, 2022 (“Effective Date”) between the City of Palm Desert, a municipal corporation organized under the laws of the State of California (the "City") and Pyro Spectaculars, Inc., a California Corporation, (the "Vendor"). The City and the Consultant may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS A. The City and Consultant desire to enter into this Amendment No. 2 to the Agreement. B. The Parties entered into that certain Professional Services Agreement (“Agreement”) Contract No. C37020A by and between City of Palm Desert and Pyro Spectaculars, Inc., dated May 10, 2018 (“Contract”). NOW, THEREFORE, the Parties agree to amend the Agreement as follows: 1. Per Exhibit B, an additional Production Date, July 4, 2022, is added. 2. Compensation. For vendor services, as specified in Exhibit A attached hereto, Vendor shall receive a total of Forty-Six Thousand Dollars and no cents ($46,000.00), as specified in Exhibit C. 3. City’s Representative (Section 3.23). Shall be Vanessa Mager, Management Analyst. 4. City and Vendor acknowledge that City has agreed to sign Vendor’s standard “Production Agreement”, attached hereto as Exhibit D, and incorporated herein by this reference, with the agreement by both parties that this “City of Palm Desert Professional Services Agreement” controls to the extent of any inconsistency between the two agreements. All other terms of the Contract to remain unchanged and in full force and effect. IN WITNESS THEREOF, the Parties have executed this Extension on the date first above written. CITY OF PALM DESERT By: _______________________________ L. TODD HILEMAN, CITY MANAGER ATTEST: By: __________________________________ CITY CLERK By: __________________________________ CITY ATTORNEY PYRO SPECTACULARS, INC. By: ______________________________ Its: _______________________________ Printed Name: ________________________ QC: ID#_____________ ________ _________ Page 91 Contract No. C37020A EXHIBIT A A. City hereby engages Vendor to provide to City fireworks displays upon all of the promises, terms and conditions hereinafter set forth, including Vendors Production Agreement attached hereto and incorporated herein by this reference. B. Vendor shall choreograph a fireworks display of approximately twenty (20) minutes duration to patriotic music, the final version must be approved by the City. C. The display shall be conducted in accordance with the latest edition of the CALIFORNIA CODE OF REGULATIONS TITLE 19 PUBLIC SAFETY CHAPTER 6 FIREWORKS AND NATIONAL FIRE PROTECTION ASSOCIATION (NFPA) STANDARD 1123, code for fireworks display and related requirements for firing a display. D. All fireworks material shall be clearly marked, indicating the type of shell and shall be delivered to the site no earlier than the day before firing (unless an alternative day is agreed upon with the fire authority.) Vendor shall be available at the display site for a representative of the Fire Marshal's office to conduct an inspection and inventory of the fireworks shells at least six (6) hours prior to the display being prepared for firing. Each shell shall be specifically labeled and inventoried for easy review and identification by the Fire Marshal's representative(s). E. The vendor shall provide necessary safety equipment, and all tools and materials, including, but not limited to, mortar racks, lumber and stakes, etc., which may be required for the firing of the display. F. Fire extinguishers of appropriate classification and approved as operational shall be accessible and in plain view of pyrotechnic crew from the time the fireworks arrive on site until all fireworks are completely removed from the site. G. The vendor shall be responsible for removing all live debris, large fireworks debris, pyrotechnic equipment, packing materials, etc. Removal of all materials shall be completed within approximately three (3) hours after firing of the display. H. The vendor shall provide protection to minimize damage to the area caused by the firing of shells. The vendor shall assume all responsibility and liability in connection with the storage of fireworks and/or firing materials. I. The vendor shall obtain all required fireworks display permits and licenses from the City necessary to conduct the fireworks display. J. The vendor is the primary vendor ("prime vendor") for purposes of the contract and shall be responsible for completely supervising and directing the setup and discharge of the fireworks display. Subcontractors who perform work under the contract shall be responsible to the prime vendor. The prime vendor agrees that it is fully responsible for the acts and omissions of its subcontractors and of persons employed by subcontractors as it is for the acts and omissions of its own employees. Page 92 Contract No. C37020A EXHIBIT B SCHEDULE OF SERVICES A. The fireworks display will be held on Monday, July 4, 2022, promptly at 9 p.m. B. City representative will work with contractor to coordinate arrangements such as route map, staging locations, etc. at least three weeks prior to event. Page 93 Contract No. C37020A EXHIBIT C COMPENSATION A. $23,754 deposit to be paid by April 1. B. Balance to be paid within ten (10) days after the event. NOTE: Not obtaining business license will delay in payment. Page 94 Contract No. C37020A EXHIBIT D VENDOR PROPSAL Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 STAFF REPORT PALM DESERT HOUSING AUTHORITY JOINT PUBLIC WORKS AND DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Randy Chavez, Landscape Supervisor Jessica Gonzales, Senior Management Analyst REQUEST: Approval of an Amendment to Contract No. HA38270 with Liberty Landscaping, Inc., for Landscape Maintenance Services at the Palm Desert Housing Authority Properties for a two-year term in an annual amount not to exceed $348,553. ______________________________________________________________________ Recommendation By Minute Motion, that the Authority Board, 1) Approve an Amendment (“Amendment”) to Contract No. HA38270 with Liberty Landscaping, Inc., for Landscape Maintenance Services, Landscape Maintenance Area No. 3, Project No. 903-20 (“Agreement”), effective July 1, 2022, for the Housing Authority owned properties (“Properties”) for a two-year term in an amount not to exceed $348,553 annually; and 2) Authorize Staff and RPM Company (“RPM”), the Authority’s contracted management company, to assign additional services as determined to be necessary due to emergency actions and/or proactively responding to issues at the Authority properties; including expenditures, in an annual amount not to exceed $88,000 for such additional services; and 3) Authorize the Chairman and/or the Executive Director to execute the Amendment and any documents necessary to effectuate and implement the actions taken herewith. Monies have been included in the FY 2022/2023 proposed Palm Desert Housing Authority’s operating budget, in the appropriate Authority accounts. Housing Commission Recommendation The Housing Commission reviewed this recommendation at its regular meeting of March 2, 2022, and approved it unanimously. Strategic Plan This request does not apply to a specific strategic plan goal. Page 103 March 24, 2022 – STAFF REPORT Housing Authority – Amendment to Contract No. HA38270 with Liberty Page 2 of 3 Executive Summary Approval of this request will authorize an extension to Contract HA38270 (“Contract”) with Liberty Landscaping, Inc. (“Liberty”) for annual landscape maintenance services (“Services”) at the Palm Desert Housing Authority (“Authority”) properties for an additional two years, beginning July 1, 2022, with a 4.2% increase to the current fee per service basis. Estimated cost for a twelve (12) month period is $348,553 for contract Services plus extra work in the amount not to exceed $88,000 (which is 25% of the overall contract amount). The existing Contract terminates on June 30, 2022, and allows the parties to the Contract to extend the term for an additional two (2) one-year terms. Liberty has been the Authority’s landscape maintenance contractor for Palm Desert Housing Authority properties since July 1, 2014, and has been performing satisfactory under its current Contract obligations. Staff recommends that the Authority continue to contract with Liberty for these services to maintain continuity and quality of landscape standards. Background Analysis On May 23, 2019, the Authority approved a Contract with Liberty, for the purpose of providing landscape maintenance services at fifteen (15) multi-family and senior Authority properties. The original Contract term was for a three-year period (July 1, 2019 - June 30, 2022). As permitted under the Contract, by written consent of both the Authority and Liberty, and approval by the Authority Board, an amendment to the Contract may be approved. This request will extend Liberty’s Contract for Services at the Properties for an additional two years beginning July 1, 2022 and terminating June 30, 2024. The proposed Amendment to Liberty will continue to provide the same scope of Services at the Properties. The current Contract fee will increase by 4.2% per service basis for the extended contract term. Liberty has demonstrated that there has been an increase in the price for their costs of goods, fuel, materials and required labor rates including prevailing wages associated in the Services. Considering this increase, the annual cost is $348,553 for contract services plus extra work in the amount not to exceed $88,000. Extra work and services cover unquantifiable activities that may arise and are necessary for landscape maintenance services that are not part of the landscape maintenance contract. All other provisions of the contract remain unchanged. Staff has reviewed the proposal from Liberty and finds it acceptable as it will provide the same level of performance and continuity in the quality of landscape standards. Therefore, Staff is herein recommending approval of an amendment to Contract No. HA38270 with Liberty for an additional two (2) years for landscaping maintenance services, effective July 1, 2022. Page 104 March 24, 2022 – STAFF REPORT Housing Authority – Amendment to Contract No. HA38270 with Liberty Page 3 of 3 Fiscal Analysis The fiscal impact to the Housing Authority of the Amendment extending the term of the Agreement is the same as it is currently. Although there has been a slight increase in the per property per month cost, staff believes the not to exceed amount is sufficient to accommodate the needs of the complexes for the extended contract term. Actual expenditures will be paid from the FY 2022/2023 monies that have been included in the proposed FY 2022/2023 Authority’s operating budget, in the appropriate Authority account. CONTRACTOR: Liberty Landscaping, Inc. 5212 El Rivino Road Riverside, CA 92509 ATTACHMENTS: 1. Liberty Letter Request for Extension and Increase (dated February 11, 2022) 2. Liberty Operating Cost Analysis 3. Draft Amendment No. 1 LEGAL REVIEW DEPT. REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Special Counsel to the Authority Martin Alvarez Martin Alvarez Director of Development Services Department Andy Ramirez Andy Ramirez Deputy Director of Public Works Department Veronica Chavez Veronica Chavez Director of Finance Andy Firestine Andy Firestine Assistant City Manager e Director, L. Todd Hileman: L. Todd Hileman Page 105 Page 106 Page 107 Contract No. ________ AMENDMENT NO.1 TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE PALM DESERT HOUSING AUTHORITY AND LIBERTY LANDSCAPING, INC. 1. Parties and Date. This Amendment No. 1 to the MAINTENANCE SERVICES AGREEMENT is made and entered into as of this 1ST day of July, 2022, by and between the Palm Desert Housing Authority (“Housing Authority”) and Liberty Landscaping, Inc., a Corporation with its principal place of business at 5212 El Rivino, Riverside, CA 92509 (Contractor). The Housing Authority and Contractor are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. 2.1 Agreement. The Housing Authority and Contractor have entered into an agreement entitled Maintenance Services Agreement dated May 23, 2019 (“Agreement” or “Contract”) for the purpose of retaining the services of Contractor to provide Landscape Services for Project 903-20 Landscape Maintenance Area No. 3. 2.2 Amendment. The Housing Authority and Contractor desire to amend the Agreement to extend the term and for additional compensation. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3.1.2 of the Agreement. 3. Terms. 3.1 Term. Section 3.1.2. of the Agreement is hereby amended in its entirety to read as follows: 3.1.1 The term of this Agreement shall be from July 1, 2022 to June 30, 2024, 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. 3.2 Compensation. Section 3.3.1. of the Agreement is hereby amended in its entirety to read as follows: 3.2.1 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 Forty-Eight Thousand Five Hundred Fifty-Two and 60/100 ($348,552.60) without written approval of City's Director of Public Works or his/her designee. Extra Work may be authorized, as described below, and if authorized, Page 108 Contract No. ______________ Page 2 of 4 Revised 11-2-20 BBK 72500.00001\32445060.1 will be compensated at the rates and manner set forth in this Agreement. 3.3 “Exhibit C” is hereby deleted in its entirety and replaced with Exhibit 1 attached hereto and incorporated herein by reference. 3.4 Continuing Effect of Agreement. Except as amended by this Amendment No. 1 all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 3.5 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1. 3.6 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.7 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. [SIGNATURES ON FOLLOWING PAGE] Page 109 Contract No. ______________ Page 3 of 4 Revised 11-2-20 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 1 TO MAINTENANCE SERVICES AGREEMENT BETWEEN THE PALM DESERT HOUSING AUTHORITY AND LIBERTY LANDSCAPING, INC. IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the Maintenance Services Agreement as of the day and year first above written. PALM DESERT HOUSING AUTHORITY Approved By: Jan C. Harnik Chairman Attested By: Niamh M. Ortega, Secretary Approved As To Form: By: Best Best & Krieger LLP City Attorney LIBERTY LANDSCAPING, INC. Signature Name Title Signature Name Title Page 110 Contract No. ______________ Page 4 of 4 Revised 11-2-20 BBK 72500.00001\32445060.1 Exhibit 1 Page 111 [This page has intentionally been left blank.] Page 112 CONTRACT NO. C41450 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Eric Ceja, Deputy Director of Development Services REQUEST: Approve a one-year extension of Contract No. C41450 with Hinderliter De Llamas and Associates (HDL) to continue providing Business Licensing Administration on behalf of the City Recommendation By Minute Motion: Extend Contract No. C41450 with HDL for City business licensing administration. Strategic Plan • Economic Development – “Expand and raise awareness of business- friendly services in order to retain and attract businesses.” Background In May, 2021, the City entered into a contract with HDL to provide business licensing services. The contract term is in one-year increments and is eligible for three (3) one-year term extensions. This is the first extension request afforded under the Professional Services Agreement (PSA). The business license administration provided by HDL includes on-line applications, online renewals and payment processing. The online system provides a portal linked within the City’s website to maintain a seamless customer experience. The HDL system is also fully integrated into the California State Licensing Board and required regulatory State agencies related to the type of business or regulated industry. Since implementation of HDL’s administration of the City’s business licensing process, the City and its customers have benefited from increased turn-around processing times and an on-line payment and renewal option. Initial set-up took some adjustment by both HDL and City staff; however, both parties are communicative in resolving issues and nuances licensing related to cannabis businesses. Fiscal Analysis Based on the first year of service provided by HDL, $175,000 has been requested in the Page 113 March 24, 2022 - Staff Report CONTRACT NO. C41450 HDL Contract Extension Page 2 of 2 2022/23 Financial Plan in account number 1104422-4309000 for this purpose. 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 Director of Finance Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman, City Manager: L. Todd Hileman ATTACHMENT: 1. Original Professional Services Agreement with HDL 2. Agreement to extend the term of Contract No. C41450 Page 114 CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT Contract No. C41450 1. PARTIES ANC DATE This Agreement is made and entered into this 30th day of Apnl , 20 21 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") Hinderliter De Llamas and Associates (also known as HdL Companies), with its principal place of business at 120 S State College Blvd , Suite 200, Brea, CA 92821 ("Consultant") Crty and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties " 2 RECITALS. 21 Project The City is a public agency of the State of California and is in need of professional services for the following project BUSINFSS LICENSE ADMINISTRATION hereinafter referred to as "the Project") 2. 2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement Consultant is duly licensed and has the necessary qualifications to provide such services 3. TERMS31 Scope of Services and Term 3 1 1 General scone of Servirq , Consultant promises and agrees to furnish to the City all labor, matenals, fools. equipment, services, and incidental and customary work necessary to fully and adequately supply the 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 Ise 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 April 30, 2021 to Apnl 30, 2022, unless earlier terminated as provided herein The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than three (3) additional one-year terms Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines 3. 2 Responsibilities of Consultant. 3 2 1 InderjFndent Cnntrartor Cnntrnl anri Pat ment of Snhnrrtinatas The Services shall be performed by Consultant or under its supervision Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement City retains Consultant on an independent contractor basis and not as an employee Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control Consultant shall pay all wages, salanes, and other amounts due such personnel in connection with their performance of Services under this Page 115 Contract No. C41450 Agreement and as required by taw Consultant 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 Consultant 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 Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services 3 2 3 Conformance to A/\ table Renuirementc All work prepared by Consultant shall be subject to the approval or City 3 2 4 Substitution of Kev Personnel Consultant has represented to City that certain key personnel will perform and coordinate the Services Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon wntten approval of City In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause The key personnel for performance of this Agreement are as follows Connor Duckworth, Client Advisor 3 2 5 City's Representative The City hereby designates Janet Moore, Director of Finance, or his/her designee, to act as rts representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative") City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3 3 of this Agreement Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee 3 2 6 Consultant's Representative Consultant hereby designates Connor Duckworth, Client Advisor or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative") Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement The Consultant's Representative shall supervise and direct the Services, using his/her 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 7 Cnordinatinn of 4prvires Consultant 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 8 Standard of Care Performance of Emnlovees Consultant 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 Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services Consultant warrants that all employees and subconsultants G trdSNarprca Tapa+F,ranceasinee6 License Secs s4ldL Ar7Oament 0:21 Rare 0.30.21 err commend Onx Page 116 Contract No. C41450 shall have sufficient skill and experience to perform the Seances assigned to them Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement Consultant 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 Consultant's failure to comply with the standard of care provided herein Any employee of the Consultant or its sub -consultants 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 Consultant and shall not be re-employed to perform any of the Services or to work on the Project 3 2 9 Period of Performance Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 31 2 above ("Performance Time') Consultant shall also perform the Services in stnct accordance with any completion schedule or Project milestones described in Exhibits "A" or "B" attached hereto, or which may be separately agreed upon in writing by the City and Consultant ("Performance Milestones') Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. 3210 Laws and Reaulatinns Fmp/In =eiI ahnr fsrtrfiratinn Consultant shallkeepitselffullyinformedofandrncompliancewithalllocal, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, and shall give all notices required by law Consultant 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 Crty to terminate the Agreement for cause 3 2 10 1 Emi tpvmant FY.eibility nsult' t Consultant certifies that it fully complies with all requirements and restnrons 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 Consultant 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 Equal Opportunity Employment Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, 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 Consultant shall also 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 3 Safety Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property In carrying out its Services, the Consultant 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 appropnate to the nature of the work and the conditions under which the work is to be performed il'enelVeron ea TerisffIrerRe1Bue,neca -mono Sereee:..WI. Ageen mt 512: Rey 4 30.2' wconmer[:.docx 3. Page 117 Contract No. C41450 3 211 Insurance 3 211 1 Minimum Recirements Without limiting Consultant s indemnification of City, and prior to commencement of the Seances, Consultant shall obtain, provide and maintain at its own expense dunng 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 Consultant 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 B) Autpmobile Liabih [ insurance Consultant shall maintainautomobileinsuranceatleastasbroadasInsuranceServicesOfficeformCA0001covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non - owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident The City's Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement C) Professional Liahilt (Frrnrs R Omiaainna) insurancee Consultant shall maintain professional liability insurance {hat covers the Services to be performed in connection with this Agreement, in the minimum amount of $1 000,000 per claim and in the aggregate Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement D) Workers' Com nsation Insurance Consultant shall maintain Workers' Compensation Insurance (Statutory and Employer's Liability Insurance with limits of at least $1,000,000) Consultant shall submit to City, along with the certrficate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers and representatives E) Umbrella or Excess Liability insurance Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements In such circumstances, Consultant shall obtain and maintain an umbrella or excess liabdrty 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 1) 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, 2) Pay on behalf of wording as opposed to reimbursement, 3) Concurrency of effective dates with pnmary policies, and oledtnVeronca Tenelrna cel2es'Mss 1. r» servReilH2 lgieee,en 01.21 Rw,130 31 wcmr N1%.40OX 4- Page 118 Contract No C41450 4) Policies shall "follow form" to the underlying primary policies 5) Insureds under primary policies shall also be insureds under the umbrella or excess policies G) Cyber Liability Insurance Consultant shall procure and maintain Cyber Liability insurance with limits of $1.000,000 per occurrence/loss, which shall include the following coverage 1) Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information, including credit monitonng and regulatory fines arising from such theft, dissemination or use of the confidential information 2) Network security liability arising from the unauthorized use of, access to, or tampenng with computer systems 3) Liability ansing from the failure of technology products software) required under the contract for Consultant to properly perform the services intended 4) Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep -linking or framing, and infringement or violation of intellectual property rights 5) Liability arising from the failure to render professional services If coverage is maintained on a claims -made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the Agreement 3 211 2 Other Provisions or Reouirements A) Proof of Insurance Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers' compensation Insurance certificates and endorsements must be approved by City's Risk Manager prior to commencement of performance Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time S) Duration of Coverane Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injunes to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants C) Pnmary/Non-C ntributirne Coverage provided by Consultant 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 G HdalVerorlp Tapia%FiranceeBu,ress Lceneo $eruexstH4L.Agweaant 6 '.21 Rev 4.30 21 w coRUlmt4ocn 5- Page 119 Contract No. C41450 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 setf- insurance shall be called upon to protect it as a named insured D) Citv's Rlphts 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 Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments In the alternative, City may terminate this Agreement E) Acceptable Insurers AU 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 Bests 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, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss Consultant hereby waives its own nght of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants G) Enforcement of Contract Provisions (non Astor oil Consultant acknowledges and agrees that any actual or alleged failure on the part of the Cr y to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder H) Rqquirements Not Limiting Requirements of specific coverage features or limits contained in khis 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 Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shalt be available to the City 1) Notice of Cancellation Consultant 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 and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims G?RlaWcralce Terie'Fifls» t3usmess License $nnicas5t01 Acre *iI 5 1.21 Roo 430.2' w camm,ra.doc. 6- Page 120 Contract No C41450 arising out of the performance of the Agreement, under such policies This provision shall also apply to any excess/umbrella liability policies K) Prohibition of Undisclnsed Cnverane Limitatinns 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 Consultant's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurers limits of liability The policy(ies) shall not contain any cross -liability exclusions M) Pass Throuoh Clause Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant Consultant agrees to monitor and review all such coverage and assumes all responsibilrty for ensuring that such coverage is provided in conformity with the requirements of this section Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review N) CitVs Richt to Revise Soecifiratinns The City and the City's Risk Manager reserve the right at any lime during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant's compensation If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice 0) 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 Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant's performance under this Agreement, and that involve or may involve coverage under any of the required liability policies 0) Additional Insurance Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services 3. 3 Fees and Payments. 3 31 Compensation Consultant shall receive oompensafon, 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 proposed amount included in consultant proposal (Exhibit B) without wntten approval of the City Council or City Manager as applicable 3 3 2 Payment of Compensation Consultant shall submit to City monthly Cx lidalVoinwra Tapla1FIMIlOe1:,nCY. ulcer*. SeMCO*IdL rccm4n1 5121 Rev 4.3021 w commode. nw doca Page 121 Contract No. C91950 invoices which provide a detailed descnption of the Services and hours rendered by Consultant City shall, within 30 days of receiving such invoice, review the invoice and pay all non -disputed and approved charges If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein Consultant 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 Consultant to submit a timely invoice may constitute a waiver of its right to final payment Payment shall not constitute acceptance of any Services completed by Consultant The making of final payment shall not constitute a waiver of any ctairns by the City for any reason whatsoever 3.3 3 Reimbursement fj, r Expenses Consultant shall not be reimbursed for any expenses unless authorized in writing b9 City, or included in Exhibit "C" of this Agreement 3 3 4 Extra Work At any time during the term of this Agreement, City may request that Consultant 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 winch the Parties did not reasonably anticipate would be necessary at the execution of this Agreement Consultant shall not perform, nor be compensated for. Extra Work without written authonzation from the City. 3.4 Labor Code Requirements. 3 41 Prevailing Wages Consultant 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, Consultant agrees to fully comply with such Prevailing Wage Laws City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement Consultant 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 Consultant's principal place of business and at the project site It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777 5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives, free and harmless from any claim or liability ansing out of any failure or alleged failure to comply with the Prevailing Wage Laws 3 4 3 )_abor Certifications By its signature hereunder, Consultant 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 Worker's 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 5 Accounting Records 3 5.1 Mainterl nce an Ind ection Consultant shall maintain complete and accurate records with respecfto all costs aria expenses incurred under this Agreement All such records shall be clearly identifiable Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other 3':ba1Ve'onca 7avoisFn>1raUSUdnee: Ltonse $ lMteV41d. Pgrtomonl 3 1 21 Rev 4.30.11'A' oon'mels.da$ 8- Page 122 Contract No. C4t450 documents created pursuant to this Agreement Consultant 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 6 General Provisions. 3 6 1 Termination of Anreement 3.6.1. 1 r:rnrindc for Termination, City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least sixty (60) days before the effective date of such termination Consultant may, by written notice to City, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to City of such termination, and specifying the effective date thereof: at least ninety (90) days before the effective date of such termination Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation 3 61 2 Effect of Termination If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement Consultant shall be required to provide such document and other information within fifteen (15) days of the request 3 61 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 6 2 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 wnting for this purpose Consultant City 1-idL Companies 120 S State College Blvd., Suite 200 Brea CA 92821 ATTN George Bannrn, Sales and Marketing abonnin tbdlcompanies corn City of Palm Desert 73-510 Fred Wanng Drive Palm Desert, CA 92260 ATTN Janet Moore, Director of Finance imoore n cttvoloalmdesert oft) 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 3 6 3 rlwnprchin of Materials and Confidentiality Wswe,Eaica 7 p''Windnc 45u9e,eaf Limrop $5rvce5sHcL A®IeeAlnn 5 171 R0:r42O 21'w o3nlnen:f.dcc n- Page 123 Contract No C41450 3. 6 31 Documents & Data Licensing of Intellectual Pr ertv This Agreement creates a non-exclusive and perpetual license for Crdy, tocopy, use, moty, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data") All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City's express written permission Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished The reproduction expense shall be borne by City at the actual cost of duplication In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount Consultant shall have no nght to retain or fail to provide to City any such documents pending resolution of the dispute In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents 3.6 3 2 Pr9rwietary Information of Consultant As used in this Section, the term "proprietary information means any information that relates to Consultant's computer or data processing programs, data processing applications, routines, subroutines, techniques or systems, or business processes City shall hold in confidence and shall not disclose to any other party any of Consultant's proprietary information in connection with this Agreement, or otherwise learned or obtained by City in connection with this Agreement, unless disclosure is required under federal or state law including without limitation the Freedom of Information Act or the Public Records Request Act Consultant shall retain ownership and rights to all proprietary information. The obligations imposed by this Sectton shall survive any expiration or termination of this Agreement 3 6 3 3 Subconsultants Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents Data the subconsuttant prepares under this Agreement Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsuttants, or those provided to Consultant by the City 3 6 3 4 Right to Use City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City's sole nsk. If City uses or reuses the Documents & Data on any project other than this Project. a shall remove the Consultant's seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re -use of the Documents & Data on such other project Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City G S, da\Ve,men Tapaimer.thRunness 1.,m,a a $e,vi:edlbl. AO,marrt 5121 ROY 4.30.21 ci commonttdocx 10- Page 124 Contract No. C41450 upon completion, suspension, abandonment or termination Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant 3.6 3 5 Indemnification — Documents and Data Consultant shall defend, indemnify and hold the City, its directors, officials, officers. employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary nght of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted 3 6 3 6 Confidentiatdv All ideas, memoranda, specifications, plans procedures, drawings, descriptions, computer program data, input record data, written information. and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant Such materials shall not, without the pnor written consent of City, be used by Consultant for any purposes other than the performance of the Services Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known. to the related industry shall be deemed confidential Consuttant shall not use City's name or insignia, photographs of the Project, or any publrcrty pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City 3 6 3 7 Confidential Information The Cdy shall refrain from releasing Consultant's propnetary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information Consultant shall have five (5) working days after receipt of the release notice to give City wntten notice of Consultant's objection to the City's release of Proprietary Information Consultant shall indemnify, defend and hold harmless the City, and its officers, directors employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney's fees) arising out of a legal action brought to compel the release of Proprietary Information City shall not release the Proprietary Information after receipt of an objection notice unless either (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release. and/or (2) a final and non -appealable order by a court of competent junsdiction requires that City release such information 3 6 4 Cnnneration 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 3 6 5 Cookvrative Purchasmo City acknowledges and agrees that any other public agency within the Slate (e g , city, county. district, public authority, public agency, municipality or other political subdivision) may procure services that are substantially similar to any of the Services set forth in this Agreement, provided that such public agency executes a separate agreement with Consultant wherein the fees payable for the services rendered to such public agency are the responsibility of such public agency and not City i.VdolWronoa TogoffiMrx'SauneesUanse Serncdw1d1 Ageemmt 5 11 Rev 4.30.21 a eommeats docx 11- Page 125 Contract No. C41450 3 6 6 Indemnification 3 6 6 1 To the fullest extent permitted by law, Consultant shall defend (with counsel approved by the City), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and ail claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials officers, employees, subconsultants or agents in connection with the performance of the Consultant's Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attomey's fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restncted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents volunteers or representatives 3 6 6 2 If Consultant's obligation to defend, indemnify, and/or hold harmless arises out of Consultant's performance as a "design professional" (as that term is defined under Civil Code section 2782 8), then, and only to the extent required by Civil Code section 2782 8, which is fully incorporated herein, Consultant's indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant's liability for such claim, including the cost to defend, shall not exceed the Consultant's proportionate percentage of fault 3 6 7 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 3 6 8 Governing Law This Agreement shall be governed by the laws of the State of California Venue shall be in Riverside County 3 6 9 Time of Essence Time is of the essence for each and every provision of this Agreement 3.610 Citv's Riaht to Froqlow Other Consultants City reserves right to employ other consultants in connection with this Project 3 611 Successors and Assians This Agreement shall be binding on the successors and assigns of the Parties 3 612 As"vanment Suhrontractina Consultant shall not assign, sublet, or transfer this Agreement or any nghts under or interest in this Agreement without the written consent of the City, which may be withheld for any reason Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination Consultant shall not subcontract any portion of the Services 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 3 6 13 Constniction References Cat ions Since the Parties or their agents have participated fully in the preparation of this Agreemen;, the language of this Agreement shall be G:WnlVeroeieo Tapaffinannel8uaneet Ueenee SOrvbenMldL/grconxnt 5.121 Rev 45221 w'xoml3nla.50C.A 12 Page 126 Contract No C41450 construed simply, according to its fair meaning, and not stnctly for or against any Party Any term referencing time, days or penod for performance shall be deemed calendar days and not work days All references to Consultant include all personnel, employees, agents, and subconsuttants of Consultant. except as otherwise specified in this Agreement All references to City include its elected officials, officers, employees, agents, 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 descnbe the scope, content, or intent of this Agreement 3 614 Amendment Modification No supplement, modification, or amendment of this Agreement shall be binding unless executed in wnting and signed by both Parties. 3 615 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, pnvilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise 3 616 No Third -Party Reneficianes There are no intended third party beneficiaries of any right or obligation assumed by the Parties 3 617 Invalidity, Severability If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent junsdiction, the remaining provisions shall continue in full force and effect 3 618 Prohibited Interests Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant 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 Consultant, 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, dunng 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 3 619 Authority to Enter Ac eement Consultant 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 6 20 Counterparts This Agreement may be signed in counterparts, each of which shall constitute an original 3 6 21 Survival All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including; but not limited to, the indemnification obligations, shall survive any such expiration or termination SIGNATURES ON NEXT PAGE] C.ddoLVeronco loptfai90tto &la,noaa LI ona9 s¢MWard_ Awremnenl 2.21 HnV.:SU.11 w cVnAm,Ll uttx 13- Page 127 Contract No. C41450 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND HDL COMPANIES 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 HDL COMPANIES By L. TODD HILEMAN CITY MANAGER ATTEST By City Clerk APPROVED AS TO FORM obeli 'fangneaver By Best Best & Krieger LLP City Attorney REVIEWED BY JANET M MOORE Director of Finance e'rdalVorsacamapi*FiMrc<!Anincuuiunsc $cMiccS4dl A,r, 5121 REAP 4.30.21 w comm ects.docx writ By ;1/ Its PrintedName Gib„ PLEASE SEE THE ATTACHMENT 5/f/zoat 14- Page 128 C41450 Contract No. Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document STATE OF CALIFORNIA COUNTY OF kJ' Anle--61 On Mft S Sem' 20Z1 before me, easy". 04N''` r- Notary Public, personally ppeared n8 4..j who proifed to me on the basis of satisfactory evidence to be the peson se ann{(eher) is/are'subscnbed to the within instrument and acknowledged to me that helsMe1the r executed the same in histhew heirauthonzed capacity(ies)r and that by his/hoc/thew stgnature(sjin the instrument the persortescor the entity upon behalf of which the person($ -acted, executed the instrument AI111TIrt lituStut COMM #2295515 z Ilet;rr Public Catitornta Les Angeles County tteAnsit grm<. dune 29 2023t I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correctWITNESSmy 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 IndividualCorporate Officer Partner(s) Title(s) Limited r. General Attorney -In -Fact II Trustee(s) t,i Guardian/Conservator 11 OtherSignerisrepresenting Name Of Person(s) Or Entfy(tes) C.We1Ver.^rice Topdflrurtsenina3SLlcena6 SeiicaatHdL ACre&e001 1 ] I lieN 4'el 71 w Mn11111,11N :xxa A{essl..,r ( ceivece,r<...w% Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Named Above 15- Page 129 C41450 EXHIBIT "A" SCOPE OF SERVICES HDL COMPANIES PROPOSAL U.11.41WIuIVw' KVMi ,,iviunlfutmoss Lu:Is ieivsxsll EI. AOIOOORM 51.21 Rev 6,3521 wtOTmMIo doe.. Exhibit" As Contract No. Page 130 City of Palm Desert, CA TAX & FEE ADMINISTRATION SERVICES April 27, 2021 HdL° Companies SUBMITTED BY HdL Companies 120 S. State College Blvd., Suite 200 Brea, CA 92821 hdlcompanies.com CONTACTConnorDuckworth T: 714-879-5000 E: cduckworth@hdlcompanies.com Page 131 Scope of Service BACKGROUND: HdL Companies was founded in 1983 and since then has helped cities, counties, and special districts maximize revenues through allocation audits, financial and economic analysis As local tax experts, the firm also assists municipalities with Business License Administration Services, Business License Compliance and Audit Management, TOT Management, Short Term Rentals Discovery and Administration, Operations Support, Fee and Ordinance Analysis and other analytical services that allow cities and counties to expand the effectiveness of related internal operations Most of HdL's key staff members have extensive local government experience, having previously held positions in city management, finance, planning, economic development, or revenue collection As proposed, HdL will work with the City business license staff to assist with the administration of the City's business license program utilizing HdL's state of the art cloud -based business license software HdL's proposal for business license administration and management includes Business License Tax Oneratinns Management HdL will transfer the City's existing databases as they relate to business license tax into HdL's internal administration tools. HdL will maintain the data and provide access to or copies of data or reports atihe City's request While access to online systems will be available for the City to use at their discretion, the City will not be required to use or maintain any software in house for managing the business license registry HdL will work in conjunction with the City during the implementation, and on an ongoing basis, to establish clear primary roles for the City and HdL to jointly facilitate the program prior to implementation The City and HdL will mutually agree on procedures for administering the business tax on an ongoing basis Renewal Processing — Send active business license accounts a renewal notice within 45 days of the renewal period ending Accounts will receive all applicable forms necessary to complete the renewal process. New Account Processing — HdL will process any new business license applications and complete the new account registration process in a timely fashion HdL will also facilitate intra-city departmental approvals such as zoning, code compliance, fire inspection, and other regulatory related functions Delinquent Account Processing — HdL will endeavor to collect delinquent accounts through a senes of City approved processing methods This will include at minimum two follow up delinquent notices and up to two additional contacts via letter, email, or telephone Delinquent accounts will be collected with full penalties as allowed by the Municipal code or through current City practices Accounts that remain delinquent will be processed through the City approved processes established in HdL's collections component of the Compliance Management Program On -Line Filing & Payment Processing — HdL registers a City approved domain name which will serve as the starting point for all web -based activities This City specific site is designed to look and feel like the City's own web pages and ensures a level of continuity between the business community, the City, and HdL With HdL Flex File businesses can choose to file their new business registration as well as renew their license and make payments via our on-line filing portal In addition to filing and paying for taxes, businesses can obtain copies of applications, general support and FAQs, schedule appointments and request copies of their tax registration all with the click of a button Our on-line services underscore HdL's commitment to excellence in customer service and education by continually improving the registration and payment experience for the business community Payment Posting/Processing — HdL will process mail, online and phone payments in an expedited manner The City will process payments received in person at the counter License accounts will be updated daily with Page 132 payment information and revenues received by HdL will be disbursed to the City net HdL's service fees at an interval to be determined with the City during project implementation. HdL's payment acceptance process accepts the following payment types Check / Money Order! Cashier's Check E-CheckDebitCardsCreditCards (Visa, Mastercard, Discover, & American Express) Check by Phone Business Support Center — HdL will provide businesses with multiple support options far registenng, renewing, making payments and for general inquiries A toll -free number will be provided to businesses in order to access one of our license specialists Monday -Friday 8 00am to 5 Oopm Pacific Businesses will also have access to support via, e-mail, fax, and via the Business Support Center On -Line HdL constantly monitors quality control points to ensure courteous customer service, minimal hold times under 2 minutes and the return of voice messages the same business day Business License Tax - Revenue Discovery Enriched Data Portfolio / Lead Identification — Utilizing data provided by the City, as well as the HdL Enriched Data Portfolio (EDP), HdL's team builds an enhanced listing of entities subjected to Iicensure or taxation including, but not limited to, those businesses physically located in the City, itinerant businesses, and entities participating in the sharing economy such as short-term rentals (STRs), drive sharing services and others. These entities are electronically matched to the existing files of the City using advanced data matching algonthms, allowing HdL staff to identify which entities are compliant and which entities require follow up Field Surveys — Experienced field crews, equipped with the most advanced tools available (mobile mapping/GPS systems, tablet computers pre -loaded with various City and state-wide databases, etc) may canvass commercial areas of the City to develop and enhance the leads identified in the EDP Field Surveys provide additional inventories of active businesses as well as to provide on -site venfications of data culled from other sources Exception Resolution — Records are reviewed by our skilled team members, filtenng out records that may lead to erroneous contacts This extra step allows staff to find additional revenues not otherwise identifiable through electronic means and assists in reducing potential complaints levied at City staff and management from pursuit of false positives Compliance Communication and Outreach — Upon exception resolution, HdL staff initiates contact with the identified entities through a senes of City approved communication methods HdL makes every effort to simplify the process for taxpayers and utilizes a variety of mediums for communication including mail, telephone, email, and web -site access Potential non -compliant entities are notified of their options to comply or dispute their non -compliant status Initial notification packets include everything a business needs to become compliant and multiple methods of resolving their accounts Business Support Center — HdL operates a business support and service center where the business community can access expert staff during normal business hours Businesses calling our toll -free line can expect minimal hold times along with access to a variety of options which include filing support, payment options, resolution of specific tax issues and other services designed to reduce the burden of registering and filing taxes Our team of experts, including our resident Certified Revenue Officers (CRO), implements a business friendly and education centric approach to supporting the business community in all aspects of the management and compliance process Page 133 Business Support Center —Online — Businesses are encouraged to take advantage of the range of services available on-line, 24 hours a day, seven days a week. With HdL Flex File, businesses can choose to file their new business registration as well as make payments via our on-line filing portal In addition to filing and paying for taxes, businesses can obtain copies of applications, general support and FAQs, schedule appointments and request copies of their tax registration all with the click of a button Our on-line services underscore HdL's commitment to excellence in customer service and education by continually improving the registration and payment experience for the business community Document Submission / Processing — Whether the taxpayer chooses to respond by mail, email or our online filing website, each application submission is reviewed for completion and accuracy prior to processing Any additional documentation needed to complete the approval of a submission, such as a home occupation pennd, can also be requested or forwarded to other City departments either as a pre -requisite or as a courtesy to the business All submissions are filed and stored electronically and made available to the City via standard reporting processes or upon request Invoicing — Once an application is approved, invoices are forwarded to the taxpayer indicating detailed tax calculations and balances owed Taxpayers are provided the opportunity to pay their balances via mail, online, or over the phone services Taxpayers will also have continued access to our Business Support Center for any questions or disputes ansing from the invoice process Registry Update — Upon collection of all requirements which may include the payment, application and/or other documentation, HdL will prepare a Registry Update package to include payment as well as copies of all taxpayer correspondence and other relevant information Data in the City registry file stored in the HdL Prime Software Suite is updated daily with packages from the Compliance Management Services Once completed, the business will be processed through the standard processes approved through the HdL Operations Management Component. Business License Tax — Audits Only Analysis & Selection — Audit candidates are selected using a variety of selection methodologies developed by our audit team using decades of business license tax audit expenence Preliminary analysts reports on each business selected are shared with the City prior to moving through the audit phases Audit Notification & Scheduling — Businesses selected by HdL and approved by the City are sent a letter notifying them of a scheduled Compliance Analysis Audit Every effort is made to promote a positive experience for the taxpayer A detailed description of the requirements and relevant documentation required for the audit is provided to the business 2 weeks in advance of the proposed audit date If the business is unable meet the audit date selected by the City all efforts to reschedule the audit to a more accommodating date will be made Businesses are also afforded the opportunity to schedule flexible appointment times by contacting the Business Support Center or visiting our online support center Compliance Analysis & Audit — The HdL audit team will audit the financial records of the business to determine compliance with business tax regulations HdL validates taxing variables such as gross receipts and other relevant information for determining compliance In addition to identifying underreporting issues, the HdL Audit Program will also focus on other compliance related issues such as assunng correct classifications, multiple location allocation, apportionment issues, and identifying business to business relationships that may create tax liability for 3nd parties Audit & Compliance Report — Upon completion of the audit and analysis, and pnor to additional actions, a compliance report will be generated and reviewed with the City The report will indicate specific results of the review and recommended future actions Documentation that substantiates the findings in the report will be included with the report to assist the City and HdL in determining next step of the process Page 134 Deficiency and Commendation Notification — Upon final review of the audit and analysis report businesses that are found to have deficiencies will be notified of the findings as well as the payment and appeal processes HdL will also work with businesses found to be defiaent to explain the current findings and educate taxpayers on proper future filing procedures so as to prevent future errors and deficiencies Businesses found to be in compliance, will be sent a commendation letter thanking them for their compliance Invoicing & Collections — Business found to be underreporting are invoiced through the standard City approved collections process Balances are collected and remitted along with supporting documentation to the City through the approved remittance processes Transient Occupancy Tax — Operations Management Services HdL's transient occupancy tax administration service goes beyond scheduled cyclical audits, providing compliance monitoring of each return as it is filed while unburdening the City from the day-to-day administration of the TOT revenue program Continual monitonng of returns is the optimal way to increase compliance: while maintaining positive relations with the City's lodging providers The program is education focused, ensunng that lodging providers are clear on reporting requirements and methodology HdL's tax administration professionals are available as needed to support both the City's team and the Citys lodging providers The City is kept up to date, with 24x7 online access to HdL's client portal containing real time access to registration and filing data, and management reporting HdL's TOT administration service incorporates all of the following Tax Registration Database Management— HdL will transfer the City's existing databases as they relate to TOT into HdL's internal administration tools HdLwill maintain the data, software, online filing portal for lodging providers, and online client portal for the City Return Processing — HdL will process TOT filings within 5 days of submission Accounts will receive all applicable forms necessary to complete the renewal process New Account Processing — HdL will process any new TOT registrations for Lodging Establishments that change hand or newly offered properties Payment Posting 1 Processing — HdL will process all payments made for new and existing lodging providers Accounts will be updated with payment information and revenues will be remitted to the City net HdL's fees on no less than a monthly basis On -Line Filing & Payment Processing — With input from the City, HdL crafts a customized website and domain for the City's taxpayers to submit online forms, returns, and payments along with other customer support related items Compliance Monitoring & Lodging Provider Audits — HdL will ensure accurate filings of TOT returns by consistently monitoring returns and educating lodging providers on filing requirements HdL will also provide cyclical compliance audits as mutually agreed to by the City and HdL, ensuring all providers are audited at least once every three years Reports — HdL's TOT administration service includes a variety of standard reports demonstrating account activity and filing trends Dunng service implementation HdL will work with the City to identify reporting requirements and frequency/method of delivery and will supplement our standard service with custom reports as needed to meet the City's requirements Page 135 Progress Payments — HdL's TOT administration service is billed monthly based on activity completed during the prior month. If standalone audits are conducted, they are billed only upon completion of the audit. Customer Support Center — HdL will provide lodging providers with muttiple support options for registering, filing returns, making payments and for general inquiries A toll -free number will be provided to businesses in order to access one of our tax specialists Lodging providers will also have access to support via e-mail, fax, and the online Business Support Center Annual Audit Plan — During implementation, HdL gathers all the historical data available from the City and leverages internal data sources and expertise to provide an analysis of all lodging providers, along with a recommended audit schedule This allows HdL to work cooperatively with the City to identify the entities that require attention first HdL works directly with the City to ensure consensus on the audit schedule for the program. Transient Occupancy Tax - Audit Onlv Service HdL's Transient Occupancy Tax Audit Service employs a business-fnendly approach which educates hoteliers in transient occupancy tax regulations and filing procedures, ensures compliance, and maximizes agency revenues The process incorporates the following Ordinance and Filing Procedure Review — Analysis of Transient Occupancy Tax ordinances and agency procedures are conducted to identify possible deficiencies or other administration related issues Recommendations are made by the audit team for items such as to best practices, form design, and potential ordinance modifications to insure the most effective policies and controls Analysis Report—HdL's audit team will obtain and conduct a review of the most recent 36 months of transient occupancy tax filings In order to verify and augment the data, the audit team will compile a variety of supplemental information on each property, including number of rooms, occupancy rate, physical condition, and business dynamics Data is then further scrutinized in order to identify unusual or suspicious reporting and/or other variables that indicate cause for further review Information and findings are documented in the analysis report for review with the Agency Analysis Review— Upon completion of the analysis report, meetings are scheduled with the agency to review the results as well as identify and recommend lodging providers who require additional investigation or examination to determine their compliance with the Agency's ordinance Audit Notification & Scheduling — Lodging providers selected by HdL and approved by the Agency for an audit are sent a letter and scheduled for a Compliance Analysis Audit Every effort is made to promote a positive experience for the taxpayer Lodging providers will be reminded of the documents required for the audit that were discussed in webinars and previous communications Lodging providers are afforded the opportunity to schedule flexible appointment times by contacting the Business Support Center or visiting our online support center Compliance Analysis & Audit — The HdL audit team reviews the books and records of the lodging provider to determine compliance with transient occupancy tax regulations HdL validates taxable gross rents, exemptions, bank statements, daily/monthly summanes, and other relevant information for determining compliance Supporting documentation for relevant items such as exemptions will also be documented for accuracy Audit & Compliance Report — Upon completion of the audit and analysis, and prior to additional actions, a compliance report is generated and reviewed with the Agency The report indicates specific results of the reviews and recommended actions Documentation will be included with the report to assist the Agency and HdL in determining next steps Page 136 Deficiency and Commendation Notification — Upon final review with the Agency, lodging providers that are found to have deficiencies are notified of the findings as well as payment and appeal processes Appointments are also scheduled to review the findings and educate taxpayers on proper filing procedures designed to prevent future errors and deficiencies Lodging providers found to be compliant are sent a commendation letter thanking them for their cooperabon and compliance Invoicing & Collections — Lodging providers found to be underreporting are invoiced through the standard Agency approved collections process identical to the procedures approved for other Programs Balances are collected and remitted along with supporting documentation to the Agency through approved remittance processes Short Term Rental - Operations Management Services The Short -Term Rental (STR) Program provided by HdL takes a unique approach In ensuring compliance and educating lodging providers, including short term rental hosts (STR Hosts), in transient occupancy tax regulations and filing procedures, regulatory permits and licensing, and other City specific goals and objectives HdL's program involves a modular, customer service centric approach, that reduces Crty administrative costs and provides the City with assurances of future compliance and reporting practices from the City's short-term rental lodging industry HdL's modular approach starts with a detailed analysis of STR listing on a vanety of published methods: including Airbnb, Home Away, VRBO: etc This process creates a full inventory of short-term rentals within the City's proscribed geographic boundary, including the full name of the owner and the physical address of the unit. Each STR is tracked and updated nightly with valuable data that can include items such as number of nights rented, average occupancy rates, room rates, as well as trend and usage reporting Following identification, HdL conducts a targeted education and compliance campaign designed to inform STR Hosts of their obligations to file and remit taxes and other requisite licenses and permits as may be needed Each lodging provider is provided a full overview of the requirements and how to best comply both in the present and the future During the registration process, HdL offers a variety of support options to the community including online filing, file -by -phone, email, and registration via standard mail HdL tax and license specialists are available throughout the process to provide support to the STR community and to assist in the registration process Once registered, accounts move into a standard administration process. HdL manages the filing of tax returns and other prerequisites on a quarterly or monthly basis, depending on City requirements This includes mailing of tax returns, processing of payments, customer support, delinquency follow up, and the development and management of an online portal for registration, filing, payments, and other support related needs STR Identification & Monitoring HdL compiles a Irst of all actively posted short term rentals available from a wide array of sources Lists are compiled and aggregated to accommodate duplicate listings from various sites During the identification and monitoring process. HdL will Scan over 20 different rental sites, including global aggregators like HomeAwayNRBO Airbnb, Turnkey coin, and Booking corn, national aggregators like Vacasa and Turnkey and small, local property management firms , Match Listings to specific parcels using GIS and property tax assessor data Page 137 Create comparison reports to determine which properties may already be compliant or registered and paying taxes Provide visual map of all listings within the City Record listing details such as start date, various sites linked to, other information necessary for documenting evidence of STR activity, and Continually monitor actively to identify and record new listings and closures to ensure accurate real-time identification and monitoring Edrrcatinn. Raoistration and Comnliance Using the list of active STR listings, HdL conducts a series of City approved education -based programs ranging from mailers to direct phone contacts Each packet contains all the information necessary to obtain registration and comply with local requirements HdL assists STR hosts throughout the program with information and support with all aspects of becoming compliant. During this program, HdL will Validate listing to ensure proper identification and filter out records that may lead to erroneous contacts Notify non -compliant entities with a senes of education -based packets designed to garner compliance Provide a support center for assistance with general questions, support and assistance with filing and paying returns Provide online portal with links to FAQs, education packets, and support for registering, filing returns, and making payments online Follow up with non -compliant accounts to obtain registration Work with City to identify additional requirements and ensure collection of data necessary to enforcement procedures Establish optional implementation items such as amnesty programs, back tax and penalty provisions, and other pre-registratron programs Page 138 EXHIBIT "B" COMPENSATION Business License Tax & Fee Administration Services Business License Operations Management Hybrid software implementation, hosting, use andsupport Business Tax Compliance (Discovery/Audits) Business Tax Collections Payment processing fees 15 001processed account + CPI 15,000 1 ° t year, $8,000 + CPI per year thereafter 35% of all collected revenue 25% of all collected revenue Agency funded - 2 9% credit cards, $0 50 eCheckConvenience fee - 2 9%. minimum $2 00 POTENTIAL FUTURE ADDITIONAL SERVICES Short Term Rental Operations Management $15 OO\monthly filing + CPI Short Term Rental Permitting S20\penmt application +CPI Short Term Rental Compliance Services 35% of all revenue collected Multiservice Discount Opportunity Eligible if bundled with HdL Sales Tax Services attime of agreement 1s1 year hybnd access cost is reduced to 58,000 (a $ 7,000 savings) In the event that this Agreement is renewed pursuant to Section 31 2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Pnce Index, All Urban Consumers. Los Angeles -Riverside -Orange Counties ] utdawmcrica-0.ffinsntezusbcs: L,cmle S ivcc:t:dt :V OKIII r[ 51.2f Rev A.30.21 w codnie t6do2x Page 139 Business License Service Agreement Final Audit Report 2021-05-07 Created 2021-05-07 By Veronica Tapia (vtapia@cityofpalmdesert org) Status Signed Transaction ID CBJCHBCAABAAe1 H5_nF5hKseToPNBsIAVAO7VDafUK5U Business License Service Agreement" History t Document created by Veronica Tapia (vtapia@cityofpalmdesert.org) 2021-05-07 -4 54. 59 PM GMT- IP address 64 60 5.80 E. Document emailed to Todd Hileman (thileman@cityofpalmdesert.org) for signature 2021-05-07 -4.56.21 PM GMT t Email viewed by Todd Hileman (thileman@cityofpalmdesert.org) 2021-05-07 - 5.07.48 PM GMT- IP address 104 143 198 160 Oe Document e-signed by Todd Hileman (thileman@cityofpalmdesert org) Signature Date 2021-05-07 - 5:08 07 PM GMT - Time Source server- IP address 47 184 100 74 O Agreement completed. 2021-05-07 - 5:08:07 PM GMT 0 Adobe Sign Page 140 Business License Service Agreement - signed Final Audit Report 2021-05-07 Created 2021-05-07 By Janet Moore gmoore@cityofpalmdesert.org) Status Signed Transaction ID CBJCHBCAABAAgkSu5mcMzN0Y90AgiuvJU38yunHLvGlb Business License Service Agreement - signed" History in Document created by Janet Moore (jmoore@cityofpalmdesert org) 2021.05.07 -6:31 38 PM GMT- IP address 64 60 5.80 A Document e-signed by Janet Moore (jmoore@cityofpalmdesert org) Signature Date 2021-05-07 - 6:33 03 PM GMT - Time Source server- IP address 64 60.5.80 Document emailed to Gloria Sanchez (gsanchez@cityofpalmdesert org) for signature 2021-05-07 - 6.33.07 PM GMT in Email viewed by Gloria Sanchez (gsanchez@cityofpalmdesert org) 2021-05-07 - 7.22.21 PM GMT- IP address 104 128.25 28 A Document e-signed by Gloria Sanchez (gsanchez@cityofpalmdesert.org) Signature Date 2021-05-07 - 7.22.49 PM GMT - Time Source server- IP address 64 60.5.80 c'. Document emailed to Robert Hargreaves (robert hargreaves@bbklaw com) for signature 2021-05-07 - 7 22 53 PM GMT 9 Email viewed by Robert Hargreaves (robert hargreaves@bbklaw com) 2021-05-07 - 8:12. 58 PM GMT- IP address 45.41 142 15 4 Document e-signed by Robert Hargreaves (robert.hargreaves@bbklaw com) Signature Date 2021-05-07 - 8 14 08 PM GMT - Time Source server- IP address 74 116.243.2 O Agreement completed 2021.05.07 -8.14.08 PM GMT 0 Adobe Sign Page 141 Contract No. C41450 -1- W:\Staff Reports - Shared 2\Staff Reports 2022-0324\5 - Clerk's Office - 2022-0324\10 HDL Contract Ext\03 Extension of HDL PSA (4.30.23).docx AGREEMENT TO EXTEND THE TERM OF A BUSINESS LICENSE ADMINISTRATION PROFESSIONAL SERVICES AGREEMENT This Agreement to Extend the Term of a Legal Services Agreement (this “Agreement”) is entered into by and among the City of Palm Desert (the “City”), and Hinderliter De Llamas and Associates, A Professional Corporation (“HDL”). RECITALS: A. The City, and HDL entered into that certain Professional Services Agreement No. C41450 dated April 30, 2021. B. The City wishes to continue to retain HDL to provide business license administration services to the City, and HDL wishes to continue to provide said services to the City. NOW, THEREFORE, the City and HDL agree as follows: Section 1. The term of such Professional Services Agreement, as amended, is hereby extended to April 30, 2023. All other provisions of such Professional Services Agreement shall remain the same. Section 2. The City Manager is hereby authorized to grant a further extension to the term of such Professional Services Agreement, as amended, to April 30, 2023. The City and HDL have executed this Agreement as of April 30, 2021. HDL: Hinderliter De Llamas and Associates, A Professional Corporation By: Title: By: Title: CITY: CITY OF PALM DESERT By: CITY MANAGER ATTEST: CITY CLERK Page 142 STAFF REPORT CITY OF PALM DESERT INFORMATION SYSTEMS DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Clayton von Helf, Information Systems Manager REQUEST: Appropriate $63,433.55 from unobligated general fund reserves and ratify the City Manager’s approval to purchase Arctic Wolf security services from Vector USA ___________________________________________________________________________ Recommendation By Minute Motion that the City Council, 1. Ratifies the City Manager’s approval to purchase Arctic Wolf security services from Vector USA, and 2. Appropriate $63,433.55 from unobligated general fund reserves to account number 1104190-4336000. Background Analysis Due to the conflict in Ukraine, IT staff are seeing warnings and alerts of increased malicious cyber activity. In response to this escalating threat, staff accelerated the purchase of Arctic Wolf Security Operations Solution. The solution will have two modules, Managed Detection and Response, and Managed Risk. The Managed Detection and Response module includes 24x7 monitoring of our network, two assigned security professionals to our team, a managed Intrusion Detection System, and monthly external vulnerability scanning. The Managed Risk module includes dynamic asset discovery, internal and external vulnerability assessments, and configurable reports and alerts. These modules will greatly improve the City’s cyber security posture. They will also meet many of the shortcomings highlighted in a recent cybersecurity review conducted by a third party. Arctic Wolf is a global leader in security operations and used by many other cities in our area. The service will be purchased using the NCPA government pricing contract, fulfilling the competitive bidding requirement (PDMC 3.30.160.E). Arctic Wolf is sold through Value Added Resellers. We will be using Vector USA, the vendor who installed and designed our current network environment, as our Arctic Wolf partner. Due to the critical nature of current cyber security needs, the City Manager authorized the purchase under an exception to the purchasing policy through a memo dated March 9, 2022. Page 143 March 24, 2022 - Staff Report Arctic Wolf Appropriation and Ratification Page 2 of 2 Fiscal Analysis Approval of staff’s request requires an appropriation from unobligated general fund reserves to account number 1104190-4336000 in the amount of $63,433.55. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER NA Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Veronica Chavez Veronica Chavez Director of Finance Todd Hileman Todd Hileman City Manager ATTACHMENTS: Exhibit “A” – Signed Proposal Page 144 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S Executive Proposal Prepared for: Clayton Von Helf –Information Systems Manager Prepared By: Scott Shiffer Sr. Account Executive –VectorUSA Alex Larsen Account Executive –Arctic Wolf Chris Kuriger Pre Sales Systems Engineer –Arctic Wolf City of Palm Desert Page 145 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N ST H E L E A D E R I N S E C U R I T Y O P E R A T I O N S Why Now?Why Arctic Wolf?Positive Organization Outcomes Challenges today: Lean security team w/ limited 24x7 monitoring ©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential 2 Security Outcome •Managed Detection and Response •Detect and respond to security events in 30 minutes or less, plus Containment capabilities for Endpoint & Server •2 Named & Dedicated Resources (Concierge Security Team) supporting Bank of Southern California •24x7 monitoring, alert triage, and threat hunting delivered by CST & 350+ Triage Engineers •Managed Risk •Unlimited scanning, internal, external, cloud and host-based systems. •Living breathing risk report •Concierge Team •Included in both services •Access to team on unlimited basis •Reporting, Meetings, Questions, escalations, etc. •Decrease Risk •Greatly reduce risk of Security Incident happening •Respond Quicker by leveraging Arctic Wolf Security experts 30min or les SLA •Arctic Wolf monitors All Attack Surfaces •Maintain reputation •Keep City of Palm Desert out of news vs being front page news if experiences Security incident •Cost Savings •Arctic Wolf vs Hiring FTE’s •Arctic Wolf vs DIY SOC •Arctic Wolf vs cost of Ransom •Save money for cyber insurance premiums •Just finished IT Audit and one of the pressing matters was a SIEM •Looking for holistic solution that can fulfill 24/7 threat monitoring •Clay has a lean team –very difficult to hire, train, retain enough Security expertise to monitor all of City of Palm Desert environment 24x7 •Solution that integrates with existing tools Page 146 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N ST H E L E A D E R I N S E C U R I T Y O P E R A T I O N SStrong adoption among Cities and Municipalities In California ©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential 3Page 147 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S 4©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential Cybersecurity Talent Gap in California –pulled March 1st, 2022. Retaining talent with experience in building/sustaining a SOC (security operations center) is very expensive IDG and Symantec: Global demand for the cybersecurity workforce is expected to rise to 6M this year with a projected shortfall of 1.5M jobs. This means that 25% of available jobs are not being filled. Recruiting Firm Robert Half: Employees across security organizations are seeing larger than average gains in pay with increases between 7-10% annually.How much does a cyber security engineer make in San Diego, California? As of March 1st, 2022, the average annual pay for a Cyber Security Engineer in Southern California is $123,367 a year. Just in case you need a simple salary calculator, that works out to be approximately $56.02 an hour. This is equivalent of $2,241/ week or $9,710 / month. Page 148 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N SPersonal | Predictable | Protection Concierge Security Team (CST) *$246K+in Value Per Year* 5©2022 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential EXPERTISE Deliver execution and operational excellence with skills required to detect advanced threats and manage risks in a way that’s customized to your environment. Security Operations Experts Hundreds of years of combined experience with cybersecurity accreditations like CISSP, HCISPP, CCSP, CISM, CRISC, GCIH Threat Hunting Hunting for suspicious activity across your environment Informed Incident Insights Filter out the noise to reveal what happened, and what to do about it STRATEGY Strategic security guidance drives continuous improvement that’s tailored to the specific needs of your organization. Security Posture Reviews Evaluate the root cause of threats and get prioritized recommendations to improve posture Named Advisors Trusted security operations experts paired with you to deliver tailored triage and strategic guidance Security Journey Guidance Quarterly reviews to help you design, implement, and achieve your security vision Your named Concierge Security Team will work with you to build and execute a Security Journey that meets your organization's goals and objectives while identifying opportunities to strengthen your security posture over time. Page 149 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N SPersonal | Predictable | Protection Arctic Wolf Triage Team 6©2022 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential COVERAGE Work around the clock to triage critical events and deliver actionable insights when you need them the most. 24x7 Continuous Monitoring Your environment is monitored around the clock for threats and risks Rapid Response Investigate and escalate critical events within thirty minutes Real-Time Remediation Rapidly contain incidents and get detailed guidance on remediation On-Demand Access To security analysts via telephone or email 24/7 INVESTIGATION Deliver execution and operational excellence with skills required to detect advanced threats and manage risks in a way that’s customized to your environment. Security Operations Experts Top-talent with hundreds of years of combined experience working for Military, Government and Public and Private sector organizations. Informed Incident Insights •Filter out the noise to reveal what happened, and what to do about it •Detect threats across network,endpoint, & cloud. •Expert analysis of IOCs across entire attack surface using a purpose-built cloud platform •Discover vulnerabilities and misconfigurations The 300+ Security Engineer and Security Analyst Triage Team works 24x7x365 to investigate alerts generated by the Arctic Wolf Platform. This team provides tactical support and guidance to customers and the Concierge Security Team during security events. Page 150 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S Arctic Wolf®Managed Risk includes: Arctic Wolf®Managed Detection and Response includes: •Fully managed and hosted SIEM •24x7 monitoring •2 Named Concierge Security Team to augment your team •BACKED BY 400 SECURITY ENGINEERS •External vulnerability scanning –scan run monthly •Monthly and quarterly reporting •Ad hoc reports •Custom rule creation •Managed IDS Pricing includes: Arctic Wolf Managed Security Awareness®includes: IT Benefits •Fully managed awareness program •Awareness coaching •Multiple integration options Employee Engagement •Friction free user experience •Gamification •Positive education and reinforcement More Than Training •Ongoing microlearning •Integrated phishing simulations •24x7 account takeover monitoring Managed Security Awareness Plus: Adds industry and role-based lessons. Content Compliance Pack: Adds compliance training lessons for users and groups. Quantify Your Cyber Risk Posture •Comprehensive risk profiling •Proactive notifications and alerts •Actionable reporting Internal Vulnerability Assessment •Dynamic asset discovery and credential scanning •Asset inventory, categorization, notes, and tags External Vulnerability Assessment •Asset discovery based on root domains and IP addresses •Automatic IP, domain, sub-domain detection Arctic Wolf Platform includes: •Unlimited log volume and events per second •Unlimited Data Ingestion •Use of AW Agent •90-day standard log retention (MDR) •Unlimited Data Retention (MR) The Arctic Wolf Platform is only required for Managed Detection and Response and Managed Risk solutions. Click here for more information Click here for more information Click here for more information Page 151 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S $500,000 or $1,000,000? 8©2021 Arctic Wolf Networks, Inc. All rights reserved. Classification: Public •$500,000 INCLUDED coverage with only two services (MDR+MR or MDR+MA) •$1,000,000 INCLUDED coverage with all three services (MDR+MR+MA)* •Arctic Wolf Service Assurance provides financial assistance for a wide range of cybersecurity incident costs, including: •Ransomware:Support for costs associated with a ransomware incident •BEC: Support for costs associated with a business email compromise that leads to funds transfer or other fraud •Compliance: Support for regulatory penalties, fines, or other related costs triggered by a cybersecurity incident •Cyber Legal Liability: Support for lawsuit costs resulting from a cyberattack, related to privacy, security, data loss or misuse, or more •Business Income Loss: Support for the financial impact of a cybersecurity incident that results in lost business income *$1,000,000 coverage requires a 3-year Arctic Wolf services contract *All claims are handled by third party provider Page 152 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S 9©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential Example of March Partnership Offer Details: March April May March 31st –April 30th *Onboarding Period Signature Date March 31st 2022 Subscription Term: 04/30/22 –04/30/23 Start Date: 04/30/22 -30 days for onboarding April 30th, Completion of onboarding and Beginning of subscription March 31st City of Palm Desert finalizes Partnership Page 153 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S FinishStart •Review Contracts •Define Project Plan and SLAs •Gather network sensor info •Ship network sensors Technical Kickoff •Install sensors, scanners, and agents at primary location(s) •Configure essential log sources •Setup portal users and basic escalation Essentials •Complete sensors, scanners, and agent deployment at remote location(s) •Configure internal, external, host-based vulnerability scans •Validate log source ingestion Readiness •Introduce Concierge Security Team •Review vulnerability scans •Customize log source alerts •Identify customized reporting needs •Train customer portal users •Get value from first call with CST Acceptance & Customization 10©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential Arctic Wolf Concierge Onboarding Dedicated: •Project Manager •Onboarding Engineer Most deployments completed within 30 days with about 10 hours invested from customer Page 154 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S 11 Arctic Wolf Overview The cybersecurity industry has an effectiveness problem. 3,000 Vendors $120B Total Spend 3,950 Reported Breaches About Arctic Wolf 1,000+ Employees 2,500+ Customers 2012 Founded Industry Cybersecurity Challenges Audit/Compliance Drivers PCI DSS FFIEC-NCUA HIPAA Arctic Wolf Helps Detect and Respond to the Top 5 Attack Vectors: Industry average time to identify an intrusion is 206 days. Arctic Wolf does it in 30 minutes or less. Better Protection Against All Attack Types Of customers have phishing activity that is missed by email security but caught by Arctic Wolf Of customers have advanced threat activity being missed by security tools but caught by Arctic Wolf Of customers have some PII exposure and 5.5% have plaintext passwords exposed online Reduction in time to patch critical vulnerabilities after activating Arctic Wolf Dwell Time 0:30 Phishing 18% Advanced Threats 43% Account Takeover 70% Unpatched Vulnerabilities 35% •Malware/Ransomware •Phishing •PUP Adware •Account Hijacking •Unpatched Outdated Software Arctic Wolf®is the market leader in security operations. Using the cloud-native Arctic Wolf® Platform, we provide security operations as a concierge service.Highly trained Concierge Security®experts work as an extension of your team to provide 24x7 monitoring, detection, and response, as well as ongoing risk management to proactively protect systems and data while continually strengthening your security posture. ©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential NIST 800-171 23 NYCRR 500 Source: 2019 Ponemon Cost of Data Breach Incident Report 84 Days Mean Time to Contain (MTTC) 230 Days Mean Time to Identify (MTTI) 314 DAYS of organizations are unable to process +60% of their security data Source: Gartner 70%1.5M The security skills gap through 2020 Source: Gartner 20202019 Page 155 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S MDR / MR / –ANNUAL CONTRACT *Upon renewal of the Subscription of equal or greater Quantities and Subscription Terms, the Net Total price for will increase by 8.0 percent annually. ©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential 12Page 156 T H E L E A D E R I N S E C U R I T Y O P E R A T I O N S 13©2021 Arctic Wolf Networks, Inc. All rights reserved. | Classification: Confidential Signature & Acceptance Payment and Termination:All payments are due net 30 from the date of invoice.VectorUSA reserves the right to stop work,delay delivery of services and /or products for failure by customer to pay within terms of this agreement.VectorUSA reserves the right to deem this contract in default immediately and terminate it if the payment is delinquent more than thirty (30)days.If customer is in default in the payment of the Agreement charge(s)and fails to cure such default within ten (10)days after receiving written notification of such default,the Customer agrees to pay reasonable collection costs,late charges and /or Attorney Fees.Late charges,if levied,shall be assessed at 1.5%monthly or 18%annually. Contract:Unless otherwise agreed upon in writing this contract will be executed as a fixed price contract. Acceptance of Order:This quote is valid for 30 days.The prices,specifications and conditions are satisfactory and are hereby accepted. VectorUSA is authorized to do the work as specified.Signature and Purchase Order due upon acceptance. City of Palm Desert 73510 Fred Waring Dr Palm Desert, CA 92260 VRN 109633-001 Job Total $63,433.55 ________________________________________________________________________________ Authorized Signature Date ______________________________________________ Print Name Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Deborah Glickman, Management Analyst Jessica Gonzales, Senior Management Analyst REQUEST: Approve a Central Inventory of surplus land and land in excess of foreseeable need pursuant to Government Code Section 54230(a)(1) in connection with properties owned by the City of Palm Desert, Successor Agency to the Palm Desert Redevelopment Agency and Palm Desert Housing Authority and direct the reporting of information regarding such properties to the California Department of Housing and Community Development pursuant to Government Code 54230(a)(2). Recommendation By Minute Motion, that the City Council: 1. Approve the “Central Inventory” of surplus land and land in excess of foreseeable need in connection with properties owned by the City of Palm Desert, Successor Agency to the Palm Desert Redevelopment Agency and Palm Desert Housing Authority, attached hereto as Exhibit A, pursuant to Government Code Section 54230(a)(1); and 2. Authorize staff to report to the California State Department of Housing and Community Development (“HCD”) information about such properties pursuant to Government Code 54230(a)(2). Background: The Surplus Land Act, as amended, (Government Code § 54220 et seq.) (the “Act”), requires pursuant to Government Code Section 54230(a)(1), that on or before December 31 of each year, each county and city in the state must “make a central inventory of all surplus land, as defined in Government Code Section 54221(b), and all lands in excess of its foreseeable needs, if any, identified pursuant to Government Code Section 50569, located in all urbanized areas and urban clusters within the jurisdiction of the county or city that the county or city or any of its departments, agencies, or authorities owns or controls” (the “Central Inventory”). Government Code Section 54221(b) defines “surplus land” to mean land that is owned in fee simple by a local agency for which the local agency’s governing board takes formal action in a regular public meeting declaring that the land is surplus and not necessary for the agency’s use. Land shall be declared either “surplus land” or “exempt surplus land,” as supported by written Page 171 March 24, 2022 - Staff Report SLA – Central Inventory Page 2 of 3 G:\Econ Development\Deborah Glickman\Surplus Land Act\SR 3-24 - SLA.docx findings, before a local agency may take any action to dispose of it consistent with an agency’s policies or procedures. Surplus land must be made publicly available for purchase or lease through an HCD prescribed process, which includes distribution of a Notice of Availability (“NOA”) to a list of housing developers prepared and updated regularly by HCD and designated public entities. The disposition of exempt surplus land is not subject to the Act. The Central Inventory does not provide for the disposition of any property, and Staff will return to the City Council, Housing Authority or Successor Agency, as appliable, at future meetings to address the disposition of individual properties as appropriate. Pursuant to Government Code Section 54230(a)(2), each county and city shall make a description of each parcel described in Government Code Section 54230(a)(1) a matter of public record and shall report this information to HCD no later than April 1st of each year in a form prescribed by HCD (Table H), as part of its annual progress report submitted pursuant to Government Code Section 65400(a)(2). Each county and city shall provide the Central Inventory without charge, to those who request it. According to the Act, the City of Palm Desert (“City”) Central Inventory shall provide a description of each property that includes the following: • Street address or similar location information • Assessor’s parcel number • Existing use • Number of units • Whether the property is surplus land, exempt surplus land, or in excess of Palm Desert’s foreseeable need • Size in acres The information in the Central Inventory is to be used to complete Table H, which is the form prescribed by HCD for inclusion in the City’s annual progress report submitted pursuant to Government Code Section 65400(a)(2). The purpose of this request is to provide the City Council with the current Central Inventory, included hereto as Exhibit A, “City of Palm Desert Central Inventory”, pursuant to Government Code 54230(a)(1), for approval in accordance with the Act. The City of Palm Desert Central Inventory will serve as the central inventory for the City, Successor Agency to the Palm Desert Redevelopment Agency (“SARDA”) and Palm Desert Housing Authority (“Housing Authority”) properties. Concurrently, staff is seeking authorization to report this information to HCD in Table H pursuant to Government Code 54230(a)(2). Staff recommends that the City Council approve this recommendation and related actions. Page 172 March 24, 2022 - Staff Report SLA – Central Inventory Page 3 of 3 G:\Econ Development\Deborah Glickman\Surplus Land Act\SR 3-24 - SLA.docx Fiscal Impact: There is no fiscal impact associated with approval of the Central Inventory. LEGAL REVIEW DEPT. REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER MA/For Jim Grayson, RWG, City Special Legal Counsel Eric Ceja Eric Ceja Deputy Dir. of Development Services Martin Alvarez Martin Alvarez Dir. of Development Services Veronica Chavez Veronica Chavez Finance Director Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman ATTACHMENT: Exhibit A, “City of Palm Desert Central Inventory” Page 173 PALM DESERT CENTRAL INVENTORY March 24, 2022 Common Name Designation Address (Apprximate or Actual)APN Owner Acre Sf Current Use Monterey Crossing "Triangle Site" Excess of foreseeable needs 73420 Dinah Shore 694060010 City of Palm Desert 0.67 29185 Vacant/CVWD water main access Total 0.67 29,185 Alesandro Alley (non-contiguous) Excess of foreseeable needs 44870 San Antonio Circle, Palm Desert, CA 92260 627071067 SARDA 0.25 10890 Vacant Excess of foreseeable needs 44850 San Antonio Circle, Palm Desert, CA 92260 627071068 SARDA 0.38 16553 Vacant Excess of foreseeable needs Alessandro Alley 627071065 City of Palm Desert 0.16 6970 Vacant Excess of foreseeable needs 44887 San Antonio Circle, Palm Desert, CA 92260 627071069 SARDA 0.14 6098 Vacant Excess of foreseeable needs 44845 San Clemente Circle, Palm Desert, CA 92260 627071070 City of Palm Desert 0.38 16553 Vacant House Excess of foreseeable needs 44889 San Clemente Circle, Palm Desert, CA 92260 627071071 City of Palm Desert 0.14 6098 Vacant Excess of foreseeable needs San Clemente Circle, Palm Desert, CA 92260 627074014 SARDA 0.42 18295 Vacant Total 1.87 81457 Ocotillo Site Excess of foreseeable needs 45330 Ocotillo Drive, Palm Desert, CA 92260 627232005 City of Palm Desert 0.53 23156 Vacant Total 0.53 23,156 Entrada Del Paseo Excess of foreseeable needs Next to 72599 CA-111 640370018 City of Palm Desert 2.01 85365 Vacant Excess of foreseeable needs Next to 72559 CA-111, Palm Desert, CA 92260 640370016 City of Palm Desert 0.68 23823 Vacant Total 2.69 109,188 Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694190005 SARDA 5.00 217800 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694190006 SARDA 0.02 871 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694190007 SARDA 8.54 372002 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694190013 SARDA 2.55 111078 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694190014 SARDA 5.03 219107 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694190016 SARDA 0.21 9148 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694200003 SARDA 4.89 213008 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694200004 SARDA 7.90 344124 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694200006 SARDA 0.05 2178 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694200007 SARDA 8.81 383764 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694200011 SARDA 81.50 3550140 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694200012 SARDA 2.20 95832 Vacant Excess of foreseeable needs NEC of Portola and Frank Sinatra Dr 694200022 SARDA 42.85 1866546 Vacant Total 169.55 7,385,598 Palm Communities Exempt North East of Dinah Shore on Gerald Ford Drive 694-120-028 City of Palm Desert 10 435600 Vacant Total 10 435600 "170 Acre Site" Page 1 of 2 3/17/202212:31 PM Page 174 PALM DESERT CENTRAL INVENTORY March 24, 2022 Common Name Designation Address (Apprximate or Actual)APN Owner Acre Sf Current Use Desert Willow Lot Pad C Excess of foreseeable needs NEC of Desert Willow Dr and Country Club Dr 620-450-012 SARDA 16.91 736600.000 Vacant Excess of foreseeable needs NEC of Desert Willow Dr and Country Club Dr 620-450-013 SARDA 1.37 59,677 Vacant Excess of foreseeable needs NEC of Desert Willow Dr and Country Club Dr 620-450-015 City 0.04 1742 Vacant Total 18.32 798019 Desert Willow Lot Pad D Excess of foreseeable needs NEC of Desert Willow Dr and Country Club Dr 620-450-018 SARDA 0.67 29185 Vacant Excess of foreseeable needs NEC of Desert Willow Dr and Country Club Dr 620-450-020 SARDA 13.67 595465 Vacant Total 14.34 624650 Refuge Exempt South of Gerald Ford, West of Portola 694-310-002 SARDA 40.47 1762873 Vacant Exempt South of Gerald Ford, East of Monterey 694-310-003 SARDA 40.46 1762437 Vacant Exempt South of Gerald Ford, East of Monterey 694-310-006 SARDA 24.73 1077239 Vacant Exempt South of Gerald Ford, East of Monterey 694-310-006 SARDA 27.73 1207916 Vacant Total 133.4 5810465 Desert Willow Lot Pad A Excess of foreseeable needs East side of Desert Willow Drive, North of Country Club 620-400-025 SARDA 14.46 629877 Vacant Excess of foreseeable needs East side of Desert Willow Drive, North of Country Club 620-450-012 SARDA 16.91 736599 Vacant Excess of foreseeable needs East side of Desert Willow Drive, North of Country Club 620-450-013 SARDA 1.37 59677 Vacant Excess of foreseeable needs East side of Desert Willow Drive, North of Country Club 620-450-014 SARDA 0.45 19602 Vacant Excess of foreseeable needs East side of Desert Willow Drive, North of Country Club 620-450-017 SARDA 0.19 8276 Vacant Excess of foreseeable needs East side of Desert Willow Drive, North of Country Club 620-450-018 SARDA 0.67 29185 Vacant Excess of foreseeable needs East side of Desert Willow Drive, North of Country Club 620-450-020 SARDA 13.67 595465 Vacant Total 47.72 2078681 Haystack Excess of foreseeable needs Haystack Drive 630250022 SARDA 1.9 82764 Vacant Total 1.9 82764 Wallaroo Center Excess of foreseeable needs 44911 Cabrillo Avenue, Palm Desert, CA 92260 625-082-022 City of Palm Desert 0.27 11761 Vacant Building Excess of foreseeable needs 44911 Cabrillo Avenue, Palm Desert, CA 92260 625-082-023 City of Palm Desert 0.22 9583 Vacant Building Total 0.49 21344 Mountain View Excess of foreseeable needs 45656 Mountain View, Palm Desert, CA 92260 627-351-024 City of Palm Desert 0.17 7405 Vacant House Total 0.17 7405 Portola Excess of foreseeable needs 45653 Portola Ave 627-351-010 City of Palm Desert 0.23 10019 Vacant House Total 0.23 10019 Page 2 of 2 3/17/202212:31 PM Page 175 [This page has intentionally been left blank.] Page 176 Page 177 [This page has intentionally been left blank.] Page 178 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Trisha Stull, Management Analyst REQUEST: Adopt Resolution to approve Recovered Organic Waste Procurement Policy and Ordinance to amend Chapter 3.30 to include the Recovered Organic Waste Product Procurement Policy ____________________________________________________________________ Recommendation By Minute Motion, 1. Waive further reading and adopt Resolution No. ____ approving Recovered Organic Waste Product Procurement Policy; and 2. Waive further reading and pass Ordinance No. ____ to second reading. Strategic Plan The proposed action has no impact on the Strategic Plan. Background Analysis 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. Included in this new legislation are requirements around the procurement of recovered organic waste products and recycled-content paper products. Beginning January 1, 2022, SB 1383 requires jurisdictions to meet an annual procurement target of recovered organic waste products based on population. For the City of Palm Desert the annual target from 2022 to 2026 is 4,311 tons. Jurisdictions can fulfill this target by procuring any combination of compost, mulch, and renewable energy from anaerobic digestion and electricity from biomass conversion from qualifying facilities. Additionally, beginning January 1, 2022, SB 1383 requires jurisdictions to purchase recycled-content paper products that are recyclable. This builds upon existing laws (PCC Sections 22150-22154) to purchase products that contain minimum recycled content and adds requirements on product recyclability and recordkeeping. These Page 179 March 24, 2022 - Staff Report Recovered Organic Waste Product Procurement Page 2 of 2 product types may include, but are not limited to office supplies, writing and printing papers, printed materials, and paper janitorial supplies. The adoption of the Recovered Organic Waste Product Procurement Policy and inclusion of the policy in the city code will help the City meet its annual recovered organic waste product procurement target, as well as the recycled-content paper procurement requirements as described in SB 1383 regulations. Additionally, it will provide staff guidance on how to comply with these procurement and recordkeeping requirements. Fiscal Analysis There is no budgetary impact associated with the proposed adoption of the resolution and ordinance at this time. The City’s current practice is to purchase recycled-content paper and we currently procure recovered organic waste products from qualifying facilities. However, there may be additional costs to meet the State-mandated annual procurement target of recovered organic waste products which is higher than the current procurement level. These costs would be paid out of the following accounts as appropriate: R/M Civic Center Park Landscaping (1104610-4332001), R/M Parks Landscaping (1104611-4332001), R/M Medians (1104614-4337001) and R/M Desert Willow (4414195-4332000). Additionally, the City will be responsible for costs associated with record keeping and other SB 1383 related items which can be paid out of the Recycle Fund. 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 Finance Director Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman Attachments: Resolution Recovered Organic Waste Product Procurement Policy Ordinance Page 180 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING THE RECOVERD ORGANIC WASTE PRODUCT PROCUREMENT POLICY WHEREAS, 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 2016; and WHEREAS, SB 1383 included requirements around the procurement of recovered organic waste products and recycled-content paper products; and WHEREAS, the adoption of a Recovered Organic Waste Product Procurement Policy will help the City to: 1. Protect and conservate natural resources, water, and energy; 2. Minimize the City’s contribution to climate change, pollution, and solid waste disposal; and, 3. Comply with State requirements as contained in 14 CCR Division 7, Chapter 12, Article 12 (SB 1383 procurement regulations) to procure a specified amount of Recovered Organic Waste products to support Organic Waste disposal reduction targets and markets for products made from recycled and recovered Organic Waste materials, and to purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper whenever they perform satisfactorily and are available at a reasonably competitive price. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that it adopts the Recovered Organic Waste Product Procurement Policy; PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California at its regular meeting held this 24th 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 181 -1- City of Palm Desert Procurement Policy RECOVERED ORGANIC WASTE PRODUCT PROCUREMENT POLICY SECTION 1. PURPOSE A. It is the policy of the City of Palm Desert (City), applicable to all departments and divisions, to incorporate environmental considerations including recycled-content and recovered Organic Waste product use into purchasing practices and procurement as stated in Chapter 3.30.190 of the Palm Desert Municipal Code. This Recovered Organic Waste Product Procurement Policy (Policy) will help the City to: 1. Protect and conserve natural resources, water, and energy; 2. Minimize the City’s contribution to climate change, pollution, and solid waste disposal; and, 3. Comply with State requirements as contained in 14 CCR Division 7, Chapter 12, Article 12 (SB 1383 procurement regulations) to procure a specified amount of Recovered Organic Waste Products to support Organic Waste disposal reduction targets and markets for products made from recycled and recovered Organic Waste materials, and to purchase Recycled- Content Paper Products and Recycled-Content Printing and Writing Paper whenever they perform satisfactorily and are available at a reasonably competitive price. SECTION 2. DEFINITIONS A. “Annual Recovered Organic Waste Product Procurement Target” means the amount of Organic Waste in the form of a Recovered Organic Waste Product that the City is required to procure annually under 14 CCR Section 18993.1. This target shall be calculated by multiplying the per capita procurement target, which shall be 0.08 tons of Organic Waste per California resident per year, multiplied by the City’s residential population using the most recent annual data reported by the California Department of Finance. Annually, CalRecycle will provide notice to each City of its Annual Recovered Organic Waste Product Procurement Target by posting such information on CalRecycle’s website and providing written notice directly to the City. B. “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 policy. Page 182 -2- City of Palm Desert Procurement Policy C. “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 or as otherwise defined in 14 CCR Section 17896.2(a)(4). Compost eligible for meeting the Annual Recovered Organic Waste Product Procurement Target must be produced at a compostable material handling operation or facility permitted or authorized under 14 CCR Chapter 3.1 of Division 7 or produced at a large volume in-vessel digestion facility that composts on-site as defined and permitted under 14 CCR Chapter 3.2 of Division 7. Compost shall meet the State’s composting operations regulatory requirements. D. “Direct Service Provider” means a person, company, agency, district, or other entity that provides a service or services to City pursuant to a contract or other written agreement or as otherwise defined in 14 CCR Section 18982(a)(17). E. “Electricity Procured from Biomass Conversion” means electricity generated from biomass facilities that convert recovered Organic Waste, such as wood and prunings from the municipal stream, into electricity. Electricity procured from a biomass conversion facility may only count toward the City’s Annual Recovered Organic Waste Product Procurement Target if the facility receives feedstock directly from certain permitted or authorized compostable material handling operations or facilities, transfer/processing operations or facilities, or landfills, as described in 14 CCR Section 18993.1(i). F. “Organic Waste” means solid wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, food waste, yard trimmings, 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. G. “Paper Products” include, but are not limited to, paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling; or as otherwise defined in 14 CCR Section 18982(a)(51). H. “Printing and Writing Papers” include, but are not limited to, copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications; or as otherwise defined in 14 CCR Section 18982(a)(54). I. “Procurement of Recovered Organic Waste Products” shall mean purchase or acquisition (e.g., free delivery or free distribution from a hauler or other entity via a written agreement or contract), and end use by the City or others. The City’s Annual Recovered Organic Waste Product Procurement Target can be fulfilled Page 183 -3- City of Palm Desert Procurement Policy directly by the City or by Direct Service Providers through written contracts or agreements for Procurement of Recovered Organic Waste Products at the City’s behest. J. “Publicly-Owned Treatment Works” or “POTW” has the same meaning as in Section 403.3(r) of Title 40 of the Code of Federal Regulations. K. “Recovered Organic Waste Products” means products made from California, landfill-diverted recovered Organic Waste processed at a permitted or otherwise authorized operation or facility, or as otherwise defined in 14 CCR Section 18982(a)(60). Products that can be used to meet the Annual Recovered Organic Waste Product Procurement Target shall include Compost, SB 1383 Eligible Mulch, Renewable Gas from an in-vessel digestion facility, and Electricity Procured from Biomass Conversion as described herein and provided that such products meet requirements of 14 CCR, Division 7, Chapter 12, Article 12. L. “Recordkeeping Designee” means the public employee appointed by the City Manager or their designee to track procurement and maintain records of Recovered Organic Waste Product procurement efforts both by the City and others, if applicable, as required by 14 CCR, Division 7, Chapter 12, Articles 12 and 13. M. "Recyclability" means that the Paper Products and Printing and Writing Paper offered or sold to the City are eligible to be labeled with an unqualified recyclable label as defined in 16 Code of Federal Regulations Section 260.12 (2013). N. “Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper” means such products that consist of at least thirty percent (30%), by fiber weight, postconsumer fiber, consistent with the requirements of Sections 22150 to 22154 and Sections 12200 and 12209 of the Public Contract Code, and as amended, or as otherwise defined in 14 CCR Section 18982(a)(61). O. “Renewable Gas” 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). P. “SB 1383” means Senate Bill 1383 of 2016 approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants, as amended, supplemented, superseded, and replaced from time to time. Q. “SB 1383 Regulations” or “SB 1383 Regulatory” means or refers to, for the purposes of this policy, the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRecycle and adopted in 2020 that created Page 184 -4- City of Palm Desert Procurement Policy Chapter 12 of 14 CCR, Division 7 and amended portions of regulations of 14 CCR and 27 CCR. R. “SB 1383 Eligible Mulch” means mulch eligible to meet the Annual Recovered Organic Waste Product Procurement Target, pursuant to 14 CCR Chapter 12 of Division 7. This SB 1383 Eligible Mulch shall meet the following conditions for the duration of the applicable procurement compliance year, as specified by 14 CCR Section 18993.1(f)(4): 1. Produced at one of the following facilities: i. A compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), that is permitted or authorized under 14 CCR Division 7, other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10); ii. A transfer/processing facility or transfer/processing operation as defined in 14 CCR Sections 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR Division 7; or, iii. A solid waste landfill as defined in Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2. 2. Meet or exceed the physical contamination, maximum metal concentration, and pathogen density standards for land application specified in 14 CCR Sections 17852(a)(24.5)(A)1 through 3, as enforced by the individual agreements with the Direct Service Providers. S. “State” means the State of California. SECTION 3. RECOVERED ORGANIC WASTE PRODUCT PROCUREMENT 3.1 Procurement Target A. City will annually procure for use or giveaway a quantity of Recovered Organic Waste Products that meets or exceeds its Annual Recovered Organic Waste Product Procurement Target through the implementation of Sections 3 through 5 of this Policy. B. To be eligible to meet the Annual Recovered Organic Waste Product Procurement Target, products that may be procured include the following (provided that each product meets the criteria included in their respective definition in Section 2 of this Policy): 1. SB 1383 eligible Compost (as defined in Section 2.C). 2. SB 1383 Eligible Mulch (as defined in Section 2.R). Page 185 -5- City of Palm Desert Procurement Policy 3. Renewable Gas (in the form of transportation fuel, electricity, or heat) (as defined in Section 2.O). 4. Electricity procured from Biomass Conversion (as defined in Section 2.E). 3.2 Requirements for City Departments A. Compost and SB 1383 Eligible Mulch procurement. Divisions and departments responsible for landscaping maintenance, renovation, or construction shall: 1. Use Compost and SB 1383 Eligible Mulch produced from recovered Organic Waste, as defined in Section 2.B and 2.R of this Policy, for landscaping maintenance, renovation, or construction, as practicable, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3). 2. When City uses Compost and SB 1383 Eligible Mulch and the applications are subject to the City’s Water Efficient Landscaping Ordinance (WELO), pursuant to City Code Section 24.04, comply with one of the following, whichever is more stringent, (i) the City’s WELO, City Code Section 24.04, if more stringent than the State’s Model Water Efficient Landscape Ordinance (MWELO), or (ii) Sections 492.6 (a)(3)(B), (C), (D), and (G) of the State’s Model Water Efficient Landscape Ordinance, Title 23, Division 2, Chapter 2.7 of the CCR, as amended September 15, 2015, which requires the submittal of a landscape design plan with a “Soil Preparation, Mulch, and Amendments Section” to include the following: a. For landscape installations, Compost at a rate of a minimum of 4 cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six (6) inches into the soil. Soils with greater than six percent (6%) organic matter in the top six (6) inches of soil are exempt from adding Compost and tilling. b. Apply a minimum three (3) inch layer of mulch on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife, leave up to five percent (5%) of the landscape area without mulch. Designated insect habitat must be included in the landscape design plan as such. c. Procure organic mulch materials made from recycled or post- consumer materials rather than inorganic materials or virgin forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where Page 186 -6- City of Palm Desert Procurement Policy prohibited by local Fuel Modification Plan Guidelines or other applicable local ordinances. d. For all mulch that is land applied, procure SB 1383 Eligible Mulch that 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). 3. Keep records, including invoices or proof of Recovered Organic Waste Product procurement (either through purchase or acquisition), and submit records to the Recordkeeping Designee, on a quarterly schedule. The quarterly schedule shall be as follows: Recovered Organic Waste Product records are to be provided to the Recordkeeping Designee by April 15 for January 1 through March 31, July 15 for April 1 through June 30, October 15 for July 1 through September 30, and January 15 for October 1 through December 31. Records shall include: a. General procurement records, including: (i) General description of how and where the product was used and applied, if applicable; (ii) Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured; (iii) Type of product; (iv) Quantity of each product; and, (v) Invoice or other record demonstrating purchase or procurement. b. For Compost and SB 1383 Eligible Mulch provided to residents through giveaway events or other types of distribution methods, keep records of the Compost and SB 1383 Eligible Mulch provided to residents. Records shall be maintained and submitted to the Recordkeeping Designee in accordance with the requirements specified in Section 3.2.A.3. c. For procurement of SB 1383 Eligible Mulch, maintain an updated copy of the ordinance or enforceable mechanism(s) requiring that the mulch procured by the City or Direct Service Provider meets the land application standards specified in 14 CCR Section 18993.1, as it may be amended from time to time, as currently reflected in the Page 187 -7- City of Palm Desert Procurement Policy agreements with the Direct Service Providers. 4. When Procurement of Recovered Organic Waste Products occurs through a Direct Service Provider, enter into a written contract or agreement or execute a purchase order with enforceable provisions that includes: (i) definitions and specifications for SB 1383 Eligible Mulch, Compost, Renewable Gas, and/or Electricity Procured from Biomass Conversion; and, (ii) an enforcement mechanism (e.g., termination, liquidated damages) in the event the Direct Service Provider is not compliant with the requirements. B. Renewable Gas procurement (used for fuel for transportation, electricity, or heating applications). For Renewable Gas procurement, City shall: 1. Procure Renewable Gas made from recovered Organic Waste for transportation fuel, electricity, and heating applications to the degree that it is appropriate and available for the City and to help meet the Annual Recovered Organic Waste Product Procurement Target, which requires compliance with criteria specified in 14 CCR Section 18993.1. 2. Keep records in the same manner indicated in Section 3.2.A.3 for the amount of Renewable Gas procured and used by the City, including the general procurement record information specified in Section 3.2.A.3.a, and submit records to the Recordkeeping Designee on a quarterly schedule. The quarterly schedule shall be as follows: Renewable Gas records are to be provided to the Recordkeeping Designee by April 15 for January 1 through March 31, July 15 for April 1 through June 30, October 15 for July 1 through September 30, and January 15 for October 1 through December 31. City shall additionally obtain the documentation and submit records specified in Section 3.2.B.3 below, if applicable. 3. If the City procures Renewable Gas from a POTW, a. Annually verify that the Renewable Gas from the POTW complies with the requirements specified in 14 CCR Section 18993.1(h), including, but not limited to the exclusion in 14 CCR Section 17896.6(a)(1) and the items listed in this Section 3.2.B.3. b. Annually receive a record from the POTW documenting the tons of Organic Waste received by the POTW from: (i) a compostable material handling operation or facility as defined in 14 CCR Section 17852(a)(12), other than a chipping and grinding operation or facility as defined in 14 CCR Section 17852(a)(10), that is permitted or authorized under 14 CCR Division 7; (ii) transfer/processing facility or transfer/processing operation as defined in 14 CCR Sections 17402(a)(30) and (31), respectively, that is permitted or authorized under 14 CCR Division 7; or (iii) a solid waste landfill as defined in Page 188 -8- City of Palm Desert Procurement Policy Public Resources Code Section 40195.1 that is permitted under 27 CCR Division 2. c. Annually receive documentation from the POTW of the percentage of biosolids that the POTW produced and transported to activities that constitute landfill disposal in order to demonstrate that the POTW transported less than twenty-five percent (25%) of the biosolids it produced to activities that constitute landfill disposal. For the purposes of this Policy, landfill disposal is defined pursuant to 14 CCR Section 18983.1(a) and includes final disposition at a landfill; use of material as alternative daily cover or alternative intermediate cover at a landfill, and other dispositions not listed in 14 CCR Section 18983.1(b). Alternative daily cover or alternative intermediate cover are defined in 27 CCR Sections 20690 and 20700, respectively. d. Annually receive documentation that the POTW receives vehicle- transported solid waste that is an anaerobically digestible material for the purpose of anaerobic co-digestion with POTW treatment plant wastewater to demonstrate that the POTW meets the requirement of 14 CCR Section 18993.1(h)(2). e. City shall submit these records to the Recordkeeping Designee on an annual basis, not to exceed thirty (30) days from receipt of notification from the POTW. C. Electricity Procured from Biomass Conversion. For Electricity Procured from Biomass Conversion, City shall: 1. Procure electricity from a biomass conversion facility that receives feedstock from a composting facility, transfer/processing facility, a solid waste landfill, and/or receives feedstock from the generator or employees on behalf of the generator of the Organic Waste and to the degree that it is available and practicable for the City and to help meet the Annual Recovered Organic Waste Product Procurement Target, which requires compliance with criteria specified in 14 CCR Section 18993.1. 2. Maintain records and conduct the following recordkeeping activities: a. Keep records in the same manner indicated in Section 3.2.A.3 of this Policy for the amount of Electricity Procured from Biomass Conversion facilities, including the general procurement record information specified in Section 3.2.A.3.a. b. Receive written notification by an authorized representative of the biomass conversion facility certifying that biomass feedstock was received from a permitted solid waste facility identified in 14 CCR Section 18993.1(i). Page 189 -9- City of Palm Desert Procurement Policy c. Provide these records to the Recordkeeping Designee. 3.3 Requirements for Direct Service Providers A. Direct Service Providers of landscaping maintenance, renovation, and construction shall: 1. Use Compost and SB 1383 Eligible Mulch, as practicable, produced from recovered Organic Waste, as defined in Section 2.B and 2.R of this Policy, for all landscaping renovations, construction, or maintenance performed for the City, whenever available, and capable of meeting quality standards and criteria specified. SB 1383 Eligible Mulch used for land application shall comply with 14 CCR, Division 7, Chapter 12, Article 12 and must meet or exceed the physical contamination, maximum metal concentration and pathogen density standards specified in 14 CCR Section 17852(a)(24.5)(A)(1) through (3). 2. If Direct Service Provider is subject to the City’s WELO pursuant to City Code Section 24.04, comply with one of the following, whichever is more stringent: (i) the locally-adopted WELO that is more stringent than the State’s MWELO, or (ii) Sections 492.6 (a)(3)(B), (C), (D), and (G) of the State’s MWELO, Title 23, Division 2, Chapter 2.7 of the CCR, as amended September 15, 2015, which requires the submittal of a landscape design plan with a “Soil Preparation, Mulch, and Amendments Section” to include the following: a. For landscape installations, Compost at a rate of a minimum of 4 cubic yards per 1,000 square feet of permeable area shall be incorporated to a depth of six (6) inches into the soil. Soils with greater than six percent (6%) organic matter in the top six (6) inches of soil are exempt from adding Compost and tilling. b. Apply a minimum three- (3-) inch layer of mulch on all exposed soil surfaces of planting areas except in turf areas, creeping or rooting groundcovers, or direct seeding applications where mulch is contraindicated. To provide habitat for beneficial insects and other wildlife, leave up to five percent (5%) of the landscape area without mulch. Designated insect habitat must be included in the landscape design plan as such. c. Procure organic mulch materials made from recycled or post- consumer materials rather than inorganic materials or virgin forest products unless the recycled post-consumer organic products are not locally available. Organic mulches are not required where prohibited by local Fuel Modification Plan Guidelines or other applicable local ordinances. d. For all mulch that is land applied, procure SB 1383 Eligible Mulch Page 190 -10- City of Palm Desert Procurement Policy that 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). 3. Keep and provide records of Procurement of Recovered Organic Waste Products (either through purchase or acquisition) to Recordkeeping Designee, on a quarterly schedule. The quarterly schedule shall be as follows: Recovered Organic Waste Products records are to be provided to the Recordkeeping Designee by April 15 for January 1 through March 31, July 15 for April 1 through June 30, October 15 for July 1 through September 30, and January 15 for October 1 through December 31. Information to be provided shall include: a. General description of how and where the product was used and if applicable, applied; b. Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured; c. Type of product; d. Quantity of each product; and, e. Invoice or other record demonstrating purchase or procurement. B. Direct Service Provider of Organic Waste collection services shall assist the City to: 1. Procure sufficient Recovered Organic Waste Products to meet the City’s per capita procurement requirement and provide a specified quantity of Compost or SB 1383 Eligible Mulch to the City directly and to its customers via periodic “giveaways”. The remainder shall be distributed to other parties on behalf of the City as specified in an agreement with the Direct Service Provider. 2. Keep and provide records to the City including the following: a. Dates provided b. Source of product including name, physical location and contact information for each entity, operation or facility from whom the Recovered Organic Waste Products were procured; c. Type of product; d. Quantity provided; and, Page 191 -11- City of Palm Desert Procurement Policy e. Invoice or other record or documentation demonstrating purchase, procurement, and/or transfer of material. C. Renewable Gas procurement by Direct Service Providers 1. Direct Service Providers transporting solid waste, organic materials, and/or recyclable materials shall procure a specified percentage of their fuel as Renewable Gas if required to do so in RFPs and RFQs released by the City for such services or as required by permit, license, written agreement, or written contract with the City. 2. Departments releasing RFPs and RFQs for contractors that procure fuel in the course of their services to the City shall include a price preference to contractors that propose to use the amount or percentage of Renewable Gas specified in the RFP or RFQ to be eligible for said price preference. Such use, if it occurs, shall be documented in a written contract or agreement. 3. If Renewable Gas made from recovered Organic Waste is used by Direct Service Providers, Direct Service Providers shall submit information listed in Section 3.3.B.2.a-e on a schedule to be determined by City, but not less than annually to the Recordkeeping Designee. 4. Renewable Gas used by Direct Service Providers under Sections 3.3.A and 3.3.B shall comply with criteria specified in 14 CCR Section 18993.1. SECTION 4. RECYCLED-CONTENT PAPER PROCUREMENT 4.1 Requirements for City Departments A. All departments and divisions of City shall purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper pursuant to City Code Section 3.30. B. If fitness and quality of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper are equal to that of non-recycled items, all departments and divisions of City shall purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever available at the same or a lesser total cost than non-recycled items, consistent with the requirements of the Public Contracts Code, Sections 22150 through 22154 and Sections 12200 and 12209, as amended. C. All Paper Products and Printing and Writing Paper shall be eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013). Page 192 -12- City of Palm Desert Procurement Policy D. Provide records to the Recordkeeping Designee of all Paper Products and Printing and Writing Paper purchases on a quarterly schedule. The quarterly schedule shall be as follows: Paper Products and Printing and Writing Paper records are to be provided to the Recordkeeping Designee by April 15 for January 1 through March 31, July 15 for April 1 through June 30, October 15 for July 1 through September 30, and January 15 for October 1 through December 31.within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by a division or department or employee of the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Section 4.2.A.3-4 for recycled-content purchases, vendor name, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-Recycled-Content Paper Products and/or non-Recycled-Content Printing and Writing Paper are provided, include a description of why Recycled-Content Paper Products and/or Recycled- Content Printing and Writing Paper were not provided. 4.2 Requirements for Vendors A. All vendors that provide Paper Products (including janitorial Paper Products) and Printing and Writing Paper to City shall: 1. Provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non- recycled item, and available at equal or lesser price. 2. Only provide Paper Products and Printing and Writing Papers that meet Federal Trade Commission Recyclability standard as defined in Title 16 Code of Federal Regulations Section 260.12 (2013). 3. Certify in writing, under penalty of perjury, the minimum percentage of postconsumer material in the Paper Products and Printing and Writing Paper offered or sold to the City. This certification requirement may be waived if the percentage of postconsumer material in the Paper Products, Printing and Writing Paper, or both can be verified by a product label, catalog, invoice, or a manufacturer or vendor internet website. 4. Certify in writing, under penalty of perjury, that the Paper Products and Printing and Writing Paper offered or sold to the City is eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013). 5. Provide records to the Recordkeeping Designee of all Paper Products and Printing and Writing Paper purchased from the vendor on a quarterly schedule. The quarterly schedule shall be as follows: Paper Products and Printing and Writing Paper records are to be provided to the Recordkeeping Designee by April 15 for January 1 through March 31, July 15 for April 1 through June 30, October 15 for July 1 through September 30, and January Page 193 -13- City of Palm Desert Procurement Policy 15 for October 1 through December 31.within thirty (30) days of the purchase (both recycled-content and non-recycled content, if any is purchased) made by a division or department or employee of the City. Records shall include a copy of the invoice or other documentation of purchase, written certifications as required in Section 4.2.A.3-4 for recycled- content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non- Recycled-Content Paper Products and/or non- Recycled-Content Printing and Writing Paper are provided, include a description of why Recycled- Content Paper Products and/or Recycled-Content Printing and Writing Paper were not provided. B. All vendors providing printing services to the City via a printing contract or written agreement, shall use Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, or as amended by Public Contract Code Section 12209. SECTION 5. RECORDKEEPING RESPONSIBILITIES A. The Development Services department will be the responsible department and will select an employee to act as the Recordkeeping Designee that will be responsible for obtaining records pertaining to Procurement of Recovered Organic Waste Products and Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper. B. The Recordkeeping Designee will do the following to track Procurement of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper: 1. Collect and collate copies of invoices or receipts (paper or electronic) or other proof of purchase that describe the procurement of Printing and Writing Paper and Paper Products, including the volume and type of all paper purchases; and, copies of certifications and other required verifications from all departments and/or divisions procuring Paper Products and Printing and Writing Paper (whether or not they contain recycled content) and/or from the vendors providing Printing and Writing Paper and Paper Products. These records must be kept as part of City' documentation of its compliance with 14 CCR Section 18993.3. 2. Collect and collate copies of invoices or receipts or documentation evidencing procurement from all departments and divisions procuring Recovered Organic Waste Products and invoices or similar records from vendors/contractors/others procuring Recovered Organic Waste Products on behalf of the City to develop evidence of City meeting its Annual Recovered Organic Waste Product Procurement Target. These records must be kept as part of the City’s documentation of its compliance with 14 Page 194 -14- City of Palm Desert Procurement Policy CCR Section 18993.1. 3. Collect, collate, and maintain documentation submitted by the City, Direct Service Providers, and/or vendors, including the information reported to the Recordkeeping Designee in accordance with Sections 3.2.A.3, 3.2.B.2, 3.2.C.2, 3.3.A.3, 3.3.B.2, 3.3.C.3, 4.1.C, and 4.2.A.5. 4. Compile an annual report on the City’s direct procurement, and vendor/other procurement on behalf of the City, of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper, consistent with the recordkeeping requirements contained in 14 CCR Section 18993.2 for the Annual Recovered Organic Waste Product Procurement Target and 14 CCR Section 18993.4 for Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper procurement. This report shall be made available to the City’s responsible entity for compiling the annual report to be submitted to CalRecycle (which will include a description of compliance on many other SB 1383 regulatory requirements) pursuant to 14 CCR Division 7, Chapter 12, Article 13. SECTION 6. EFFECTIVE DATE OF POLICY This Policy shall go into effect immediately. Page 195 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 3.30 (PURCHASING SYSTEM AND PUBLIC WORKS CONTRACTS) OF THE PALM DESERT MUNICIPAL CODE TO INCLUDE THE RECOVERED ORGANIC WASTE PRODUCT PROCUREMENT POLICY. The City Council of the City of Palm Desert, DOES HEREBY ORDAIN, as follows: Section 3.30.190 of the Code of the City of Palm Desert, California, is hereby amended to include Section C as follows: 3.30 PURCHASING SYSTEM AND PUBLIC WORKS CONTRACTS 3.30.190 PREFERENCE FOR RECYCLED CONTENT. C. City employees shall refer to the adopted Recovered Organic Waste Product Procurement Policy for proper purchasing and recordkeeping procedures related to recovered organic waste products and recycled-content paper products and recycled-content printing and writing paper. PASSED, APPROVED, ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 24th 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 196 STAFF REPORT CITY OF PALM DESERT Development Services Department MEETING DATE: March 24, 2022 PREPARED BY: Jessica Gonzales, Senior Management Analyst REQUEST: Consideration for approval of actions in connection with the parcels identified as APN 694-120-028 and a portion of 694-120- 029 related to compliance with the Surplus Land Act and an Exclusive Negotiation Agreement with Palm Communities. Recommendation That the City Council, 1. Waive further reading and adopt City Resolution No. 2022-____, a resolution: (i) declaring the .49-acre City-owned property located on the north side of Gerald Ford Drive between Cook Street and Portola Road and identified as a portion of APN 694-120-029 (the “Additional Parcel”) as “exempt surplus land” pursuant to Government Code Section 54221(f)(1)(A); and (ii) authorizing the City Manager or his designee, with the consent of the City Attorney, to enter into a new Exclusive Negotiation Agreement (“ENA”) with Palm Communities for the purpose of negotiating the terms and conditions of an agreement for the sale of the City-owned property located on the north side of Gerald Ford Drive between Cook Street and Portola Avenue and identified as APN 694-120-028 (the “Property”) and the Additional Parcel to Palm Communities and the construction of a housing development on the Property and Additional Parcel that complies with Government Code Section 37364 ; and (iii) authorizing the staff and officers of the City to take such actions as they deem necessary or proper to effectuate the purposes of the Resolution. Strategic Plan Priority 2 of the City’s Envision Palm Desert Strategic Plan, as part of Land, Use, Housing and Open Space envision, is to facilitate development of high-quality housing for people of all income levels. This request meets that objective by diversifying the City’s housing stock for very low and lower income households. Executive Summary In 2021, the City Council approved Contract No. C41550A for an ENA with Palm Communities for the purpose of negotiating the terms and conditions of an agreement for Page 197 March 24, 2022 - Staff Report City - Declaration of Exempt Surplus and ENA with Palm Communities, Inc. Page 2 of 4 -2- P6401-0001\2537487v2.doc the sale of City-owned property located on the north side of Gerald Ford Drive between Cook Street and Portola Road (a vacant, approximately 10-acre parcel identified as APN 694-120-028) (the “Property) to Palm Communities for the construction of a housing development on the Property. The City’s ENA with Palm Communities expired on March 1, 2022. Palm Communities has requested to resume good faith negotiations for the sale of the Property. To accommodate the proposed housing development, Palm Communities requires the Additional Parcel and has requested the ENA to include the Additional Parcel as shown in the attached Exhibit B. Staff recommends that the City Council declare the Additional Parcel exempt surplus land pursuant to Government Code Section 54221(f)(1)(A). In addition, Staff recommends that the City enter into an ENA that includes the Property and the Additional Parcel. Background Analysis The California Surplus Land Act (Government Code 54220 et seq.) (“SLA”) governs the sale of surplus land. Land may be declared either “surplus land” or “exempt surplus land.” The SLA requires local agencies to comply with the SLA before taking action to dispose of surplus land. Government Code Section 54221(f)(1)(A) defines “exempt surplus land” to include surplus land that is transferred by a local agency pursuant to Government Code Section 37364. Government Code Section 37364 authorizes a city to sell land to provide housing affordable to persons and families of low or moderate income if certain conditions are met, including that not less than 40 percent of the total number of those housing units developed on the parcel shall be affordable to households whose incomes are equal to, or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low income households. Because the City plans to sell the Property for the development of a 100% affordable housing project that complies with Government Code Section 37364, the proposed sale of the Property met the criteria for “exempt surplus land” under Government Code Section 54221(f)(1)(A). The City Council previously adopted Resolution No. 2021-27 declaring the Property “exempt surplus land” pursuant to Government Code Section 54221(f)(1)(A). On May 26, 2021, the Department of Housing and Community Development (“HCD”) reviewed the City’s adopted Resolution No. 2021-27, declaring a Surplus Land Act exemption under Government Code section 54221(f)(1)(A) and provided confirmation that the declaration was acceptable. To accommodate parking and drainage for the proposed housing development, Palm Communities has requested the Additional Parcel. The proposed housing development on the approximately 10.49 acre site (the Property and the Additional Parcel) will still meet the requirements of Government Code Section 37364. Therefore, Staff recommends that Page 198 March 24, 2022 - Staff Report City - Declaration of Exempt Surplus and ENA with Palm Communities, Inc. Page 3 of 4 -3- P6401-0001\2537487v2.doc the City Council declare the Additional Parcel exempt surplus land pursuant to Government Code Section 54221(f)(1)(A). The City’s previous ENA with Palm Communities expired on March 1, 2022. In addition to recommending that the Council declare the Additional Parcel “exempt surplus land”, staff is requesting authorization for the City Manager to enter into a new ENA with Palm Communities (Exhibit C). This ENA consists of primarily the same business terms as the prior ENA, and, in addition, specifies that the terms and conditions pursuant to which the City will sell the Property and Additional Parcel to Palm Communities include that the housing development will comply with Government Code Section 37364. The ENA provides that: • The ENA, will be for a term of ninety (90) days, expiring on June 22, 2022. • The City Manager may, in his discretion, extend the June 22, 2022, termination date for a period of ninety (90) days to allow for continuing negotiations. • The City Manager may terminate the ENA on ten (10) days’ notice if Palm Communities fails to commence or continue good faith negotiations or for no cause. • Not later than sixty (60) days following the execution of the ENA, Palm Communities must: (i) perform due diligence on the Property and Additional Parcel; (ii) submit a preliminary schedule of a proposed closing and construction timeline; (iii) submit a preliminary pro forma, including funding sources; (iv) reimburse the City for any amount by which the cost of the City’s appraisal of the Property and Additional Parcel exceeds Two Thousand Five Hundred Dollars ($2,500.00); and (v) the ENA will be superseded upon the approval of a disposition and development agreement with respect to the [Property and Additional Parcel by the City and Palm Communities. Therefore, Staff recommends that the City enter into the ENA (Exhibit C) substantially in the form presented to Council. Staff recommends that the City Council approve this recommendation and related actions. Environmental Review Sales of surplus government property are exempt from the California Environmental Act (CEQA) pursuant to Title 14 Section 15312 of the California Code of Regulations. Page 199 March 24, 2022 - Staff Report City - Declaration of Exempt Surplus and ENA with Palm Communities, Inc. Page 4 of 4 -4- P6401-0001\2537487v2.doc Fiscal Analysis There is no immediate financial impact or budget action necessary as a result of the recommended actions. When staff returns to Council with the future approval of the DDA, the specific financial impactions will be provided. DEVELOPER: PALM COMMUNITIES 100 Pacifica, Suite 205 Irvine, CA 92618 ATTACHMENTS: City Resolution, 2022-___, Exhibit A Property and Additional Parcel Site Map, Exhibit B Draft ENA, Exhibit C LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Jessica Gonzales For RWG, City Special Legal Counsel Eric Ceja, for Martin Alvarez Director of Development Services Department Veronica Chavez Veronica Chavez Finance Director Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman, City Manager: L. Todd Hileman Page 200 RESOLUTION NO. 2022-___ -1- Error! Unknown document property name. RESOLUTION NO. 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING AN APPROXIMATELY .49-ACRE CITY-OWNED PARCEL LOCATED ON THE NORTH SIDE OF GERALD FORD DRIVE BETWEEN C OOK STREET AND PORTOLA ROAD TO BE EXEMPT SURPLUS LAND PURSUANT TO GOVERNMENT CODE SECTION 54221(f)(1)(A) AND APPROVING AN EXCLUSIVE NEGOTIATION AGREEMENT WITH PALM COMMUNITIES WITH RESPECT TO THE PROPOSED SALE OF THE .49 ACRE PARCEL AND AN ADJACENT APPROXIMATELY 10-ACRE CITY-OWNED PARCEL TO PALM COMMUNITIES AND THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT THEREON RECITALS: WHEREAS, the City of Palm Desert (“City”) is the owner in fee simple of that certain real property in the City located on the north side of Gerald Ford Drive between Cook Street and Portola Road (“Property”), which is currently vacant, approximately 10 acres in size, and identified as APN No. 694-120-028 and WHEREAS, the City desires to sell the Property for the development of an affordable housing project thereon to meet the objective of Land Use Housing and Open Space, Priority 2, which is to facilitate development of high quality housing for people of all income levels; and WHEREAS, Palm Communities previously submitted a proposal to the City to purchase the Property for the purpose of developing an affordable housing project on the Property consisting of 240 multi-family units, with 100 percent of the units restricted for rental to very low and low income households at affordable rents (“Proposal”); and WHEREAS, pursuant to Section 54221(b)(1) of the Surplus Land Act (Government Code Sections 54220-54234), on May 27, 2021, the City Council adopted its Resolution No. 2021-27, declaring the Property to be “exempt surplus land” pursuant to Government Code Section 54221(f)(1)(A), which defines “exempt surplus land” to include surplus land that is transferred pursuant to Government Code Section 37364; and WHEREAS, Government Code Section 37364 authorizes a city to sell, lease, exchange, quitclaim, convey, or otherwise dispose of real property to provide housing affordable to persons and families of low or moderate income provided that the following conditions are met: (a) Not less than 80 percent of the area of the parcel will be used for the development of housing; and (b) Not less than 40 percent of the total number of those housing units developed on the parcel shall be affordable to households whose incomes are equal to, Page 201 RESOLUTION NO. 2022-___ -2- Error! Unknown document property name. or less than, 75 percent of the maximum income of lower income households, and at least half of which shall be affordable to very low income households; and (c) Dwelling units produced for persons and families of low or moderate income under Government Code Section 37364 shall be restricted by regulatory agreement to remain continually affordable to those persons and families for the longest feasible time, but not less than 30 years, with such regulatory agreement recorded in the office of the county recorder in which the housing development is located; and WHEREAS, on May 26, 2021, the Department of Housing and Community Development (“HCD”) reviewed the City’s adopted Resolution No. 2021-27, declaring a Surplus Land Act exemption for the Property under Government Code Section 54221(f)(1)(A) and provided confirmation that the declaration was acceptable; and WHEREAS, in order to accommodate the housing development in compliance with the Proposal, Palm Communities requires an additional approximately 0.49 acre City- owned parcel identified as a portion of APN 694-120-029 which adjoins the Property (the “Additional Parcel”), for a total development site of approximately 10.49 acres in size. The Property and the Additional Parcel are described on Exhibit “A” and depicted on Exhibit “B”, which are attached hereto and incorporated herein by reference; and WHEREAS, because the proposed housing development on the approximately 10.49 acre site will still meet the requirements of Government Code Section 37364, Staff recommends that the City Council declare the Additional Parcel exempt surplus land pursuant to Government Code Section 54221(f)(1)(A); and WHEREAS, the City and Palm Communities previously entered into an Exclusive Negotiation Agreement (Contract No. C41550A) for the purpose of negotiating on an exclusive basis to establish the terms and conditions of an agreement for the sale of the Property to Palm Communities and the construction of a housing development on Property by Palm Communities in accordance with the Proposal and Government Code Section 37364; and WHEREAS, such Exclusive Negotiation Agreement ENA expired on March 1, 2022; and WHEREAS, Staff recommends that the City enter into a new Exclusive Negotiation Agreement (“ENA”) to include the Property and Additional Parcel; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS: SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution. SECTION 2. The City Council hereby declares pursuant to Government Code Sections 54221(b) and 54221(f)(1)(A) that the Additional Parcel is exempt surplus land Page 202 RESOLUTION NO. 2022-___ -3- Error! Unknown document property name. because the City intends to sell the Property and Additional Parcel pursuant to Government Code Section 37364 for the development of an affordable housing project on the Property and Additional Parcel that complies with the requirements of Government Code Section 37364. SECTION 3. The ENA attached hereto as Exhibit “C” is hereby approved. The City Manager or his designee, with the consent of the City Attorney, is hereby authorized to execute and deliver, for and in the name of the City, the ENA substantially in the form attached as Exhibit “C”. SECTION 4. Staff is hereby authorized and directed to provide a copy of this Resolution to the Department of Housing and Community Development (“HCD”) in the manner required by HCD. SECTION 5. The Staff and officers of the City are hereby authorized, jointly and severally, to take such actions as they deem necessary or proper to effectuate the purposes of this Resolution and all actions previously taken are hereby ratified. SECTION 6. The City Clerk shall certify as to the adoption of this Resolution. PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, on this 24th 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 203 RESOLUTION NO. 2022-___ -4- Error! Unknown document property name. EXHIBIT A Page 204 RESOLUTION NO. 2022-___ -5- Error! Unknown document property name. EXHIBIT B Page 205 RESOLUTION NO. 2022-___ -6- Error! Unknown document property name. EXHIBIT C EXCLUSIVE NEGOTIATING AGREEMENT THIS EXCLUSIVE NEGOTIATION AGREEMENT (the “Agreement”) is entered into ______________, 2022, by and between the City of Palm Desert, a municipal corporation (the “City”) and Palm Communities, a California corporation (the “Developer”), on the terms and provisions set forth below. THE CITY AND THE DEVELOPER HEREBY AGREE AS FOLLOWS: I. [§100] Negotiations A. [§101] Good Faith Negotiations The City and the Developer, acknowledging that time is of the essence, agree for the Negotiation Period (as defined below) to negotiate diligently and in good faith the terms and conditions pursuant to which the City may dispose of and the Developer may develop a certain +/-10.49 acres of real property (the “Site”). The Site is more particularly described in Exhibit A, “Legal Description,” attached hereto and incorporated herein by reference, and is shown on the “Map of the Site,” attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided below, the City agrees, that during the Negotiation Period it will not negotiate with any other person or entity regarding development of the Site or any portion thereof. Among the issues to be addressed during the Negotiation Period are: (1) the terms and conditions of conveyance of the Site to Developer (2) sale price for the Site; (3) Developer’s program to develop the Site; (4) design and aesthetic considerations of the development of the Site, including but not limited to configuration of the development, site density, site circulation and access to surrounding properties including a draft specific plan; (5) all planning and land entitlement processes and requirements, including preparation of a master plan and a specific plan approval process; (6) all permitting and environmental reviews and processes; and (7) other City and Palm Desert Housing Authority requirements pertaining to the development and use of the Site including financial assistance and affordability restrictions. B. [§102] Duration of this Agreement; Effective Date 1. This Agreement (the “Negotiation Period”) shall expire on June 30, 2022. 2. The City Manager may, in his or her sole discretion, agree to extend the Negotiation Period one (1) time for up to ninety (90) days to allow additional time for the parties to come to an agreement on the issues described in Section 101, as well as any other relevant issues. 3. In the event the Developer has not continued to negotiate diligently and in good faith, the City shall give written notice thereof to the Developer who shall then have ten (10) working days to commence negotiating in good faith. Following the receipt of such notice and the failure of the Developer to thereafter commence negotiating in good Page 206 RESOLUTION NO. 2022-___ -7- Error! Unknown document property name. faith within such ten (10) working days, this Agreement may be terminated by the City Manager. 4. This Agreement will be superseded upon approval by the City and the Developer of a Disposition and Development Agreement (“DDA”). C. [§103] Deposit The City and Developer acknowledge that the Developer has deposited with the City a deposit (the “Deposit”) in the amount of two thousand five hundred dollars ($2,500.00) which shall be used by the City to pay for the cost of an appraisal of the Site. II. [§200] Development Concept A. [§201] Scope of Development The negotiations undertaken pursuant hereto shall be based on a development concept that shall include the development on the Site as an affordable multi-family residential subdivision which complies with Government Code Section 37364. Not later than 60 days of the date of execution, the Developer shall do the following: • Perform due diligence on the Site. • Submit a preliminary schedule of a proposed closing and construction timeline. • Submit a preliminary pro forma, including funding sources. • Reimburse the City for any amount by which the cost of the appraisal of the Site exceeds two thousand five hundred dollars ($2,500.00). As soon as practicable following the date of execution hereof, the Developer shall commence and complete the actions on the Developer’s part described in Attachment 1 attached hereto and incorporated herein by this reference. B. [§202] Developer's Findings, Determinations Studies and Reports Upon reasonable notice, and as from time-to-time requested by the City, the Developer agrees to make oral and written progress reports advising the City on all matters and all studies being made by the Developer. In the event the City and the Developer do not enter into a DDA, the City may request that the Developer submit to the City copies of all studies and reports prepared for the proposed development of the Site by or for the Developer, to the extent the Developer is legally able to do so, and the City may request the right to the use and benefit from all such studies and reports. The Developer shall not unreasonably withhold or delay its consent to the City’s access and use of such studies and reports. Page 207 RESOLUTION NO. 2022-___ -8- Error! Unknown document property name. III. [§300] Sale of the Site The sale price and/or other consideration to be paid by the Developer for the Site under the DDA will be equal to at least the appraised fair market value of the Site, and will be subject to approval by the City Council after a public meeting(s) or public hearing(s) as required by law. IV. [§400] The Developer A. [§401] Office of the Developer The Principal office of the Developer is: Danavon L. Horn, President Palm Communities 100 Pacifica, suite 205 Irvine, CA 92618 Attn: Danavon Horn, President B. [§402] Members of the Developer The managing member of the Developer is: Danavon Horn, President C. [§403] Full Disclosure The Developer has made full disclosure to the City of its principals, officers, major stockholders, major partners, joint venturers, key managerial employees and other associates, and all other material information concerning the Developer and its associates. The Developer shall promptly notify the City Manager in writing of any significant change in the principals, associates, partners, joint venturers, negotiators, development manager, consultants, professional and directly-involved managerial employees of the Developer. Notwithstanding the foregoing, the Developer reserves the right at its discretion to join and associate with other entities in joint ventures, partnerships or otherwise for the purpose of developing the Site, provided that the Developer retains management and control of such entities and remains fully responsible to the City hereunder. V. [§500] Full Disclosure The Developer will be required to make and maintain full disclosure to the City of its methods of financing to be used in the acquisition and development of the Site. VI. [§600] City’s Responsibilities A. [§601] City Assistance and Cooperation The City shall cooperate fully in providing the Developer with appropriate information and assistance for development of the Site, including, but not limited to the following: • Appraisal of the Site, as funded by the Developer as herein provided. Page 208 RESOLUTION NO. 2022-___ -9- Error! Unknown document property name. • Provide a copy of existing Title Report. • Provide a right of access to the Site for due diligence investigations, pursuant to a right of entry agreement. B. [§602] City and City Council's Public Meeting(s) or Public Hearing(s) A DDA resulting from the negotiations hereunder shall become effective only after and if the DDA has been considered and approved by the City Council in the exercise of its sole discretion at a public meeting(s) or public hearing(s), as applicable, called for such purpose. VII. [§700] Real Estate Commissions The City shall not be liable for any real estate commissions or brokerage fees which may result from this Agreement or a DDA. VIII. [§800] Limitations of this Agreement By its execution of this Agreement, the City is not committing itself to or agreeing to undertake: (1) the sale of land; or (2) any other acts or activities requiring the subsequent independent exercise of discretion by the City or any department thereof. This Agreement does not constitute a disposition of property or exercise of control over property by the City. Execution of this Agreement by the City is merely an agreement to enter into a period of exclusive negotiations according to the terms hereof, reserving final discretion and approval by the City as to any DDA and all land decisions in connection therewith. [SIGNATURES ON FOLLOWING PAGE] Page 209 RESOLUTION NO. 2022-___ -10- Error! Unknown document property name. 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, a municipal corporation By: L. Todd Hileman City Manager PALM COMMUNITIES, a California corporation By: Danavon L. Horn President ATTEST: Niamh M. Ortega Deputy City Clerk APPROVED AS TO FORM: By: City Special Counsel Page 210 RESOLUTION NO. 2022-___ -11- Error! Unknown document property name. 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 211 RESOLUTION NO. 2022-___ Exhibit A -1- Error! Unknown document property name. EXHIBIT A LEGAL DESCRIPTION Page 212 RESOLUTION NO. 2022-___ Exhibit B -1- Error! Unknown document property name. EXHIBIT B Page 213 RESOLUTION NO. 2022-___ Attachment 1 -2- Error! Unknown document property name. ATTACHMENT 1 Palm Communities has submitted a formal planning application (“Entitlement Application”) for consideration and approval with the Architectural Review Commission, Planning Commission, and City Council. A complete Entitlement Application submittal requires that all items identified on Exhibit A of this attachment be met. The financial analysis review will be initiated upon execution of the ENA. At that time the Palm Desert Housing Authority (“Authority”) consultant, Keyser Marston Associates (“KMA”), will endeavor to complete the review within 3 weeks from that date, provided any additional information requested by KMA is promptly delivered. As a preliminary review of the responses and information provided on October 21, 2021, the following items need to be clarified and provided for the Financial Analysis review: 1. The 10 acre portion of the Site (APN 694-120-028) as described in the Exclusive Negotiation Agreement (“ENA”) is subject to a declaration pursuant to Government Code Sections 54221(b) and 54221(f)(1)(A) that it is exempt surplus land (City Resolution 2021-21). The development concept being proposed anticipates 10.49 acres of land. The disposition of the additional 0.49 acres, a portion of APN 694- 120-029, is subject to the Surplus Land Act (“SLA”) and it will require the City to initiate the process required under the SLA and obtain final approval from California Department of Housing and Community Development (“HCD”). Palm Communities must identify and submit a legal description of the 0.49 acres in order for the City to initiate the SLA process. 2. The Authority had stated that it was very concerned that the per unit costs for this Project were so much higher than a recent Authority approved project. The Developer will provide more information on why the costs of the referred Riverside project should be the basis for the costs estimate for this proposed project. It is also recommended that the Developer receive estimates from other, non-related, contractors. 3. The Developer needs to include the fair market value of the land in the pro forma. Since the Site size has increased, $3,147,000 should be the assumed purchase price at this time. The purchase price will be subject to adjustment to reflect the appraisal. 4. Given that Low and Moderate Income Housing Asset Funds will be used by the Housing Authority to fill the financial gap, the rental restrictions per State law (previously provided to the Developer) will be imposed in addition to the TCAC requirements. The pro forma provided assumes that only TCAC restrictions will be imposed. In addition, the Developer must submit a complete Precise Plan application, Tentative Parcel Map application, and Environmental Assessment Form (see Exhibit A for project entitlement application requirements). Page 214 RESOLUTION NO. 2022-___ Attachment 1 -3- P6401-0001\2533730v2.doc EXHIBIT A Proposed Palm Villas at Millennium Project Project Application Requirements 1) Precise Plan (PP) Application & Fees 2) Tentative Parcel Map (TPM) Application & Fees 3) Environmental Assessment (EA) Form & Fees TABLE 1 Project Application Fees Application Type Fee Precise Plan (PP)* $ 4,019.00 Tentative Parcel Map (TPM)* - Environmental Assessment (EA) $ 276.00 Preliminary WQMP $ 3,700.00 Total Fee $ 7,995.00 *The fee for the PP and TPM is combined 1) Precise Plan (PP) Completed Precise Plan Application and submittal of all required check list of items including execution of all required signatures. Here are preliminary comments for your proposed project: a. Site Plan i. Ensure all dimensions are labeled for Technology, Gerald Ford, Dinah Shore. Identify whether existing or proposed, including any dedications for site access. ii. Your plan shows access and driveway dimensions, however, also include dimensions of where right-of-way is proposed for access dedication to each parcel. iii. Label dimension of stalls. Refer to City Council Reso. 01-5 for minimum standards. Parking spaces cannot overhang over a sidewalk / pedestrian walkway / path of travel. Sheet 1 identifies two different standards for “standard spaces” and should clarify where each is used. Striping details must match requirements of resolution. iv. Map Legend should include the following: 1. Required and proposed number of parking spaces (including handicap) – Reference California Government Code Section for reduction to clarify that reduction for affordable is based on State requirement of 1.5 spaces for two- and three-bedroom units. Non-affordable units must comply with the minimum parking established by the Millennium Specific Plan and be reflected in the parking summary. 2. Lot coverage (percentage of land covered by building(s)) – Revise table to indicate max. allowable coverage is 50% per PR-22 zoning and Millennium Specific Plan. Page 215 RESOLUTION NO. 2022-___ Attachment 1 -4- P6401-0001\2533730v2.doc 3. Landscape percentage in and adjacent to the parking area – Indicate common open area per unit. Minimum requirement is 250 square feet per unit (See Millennium Specific Plan Page 25). b. Architectural Elevations i. Show screening for all roof-mounted equipment 1. HVAC and roof ladders will need to be screened. Downspouts and gutters should be shown if proposed. ii. Colored elevations, rendering and/or perspectives (separate sheet) 1. Provide elevations for all structures including the carports, and trash enclosures. c. Floor Plans i. Provide dimensions of interior rears, including the utility rooms to plan for appropriate sizing based on utilities. ii. Label utility rooms on floor plans for the apartment buildings. iii. Ensure the building pop-outs are labeled. 1. Staff recommends providing spot details for architectural elements for exterior details such as foam and window trim around doors and windows, cross section showing typical window recessing, and a reference showing the building plane change that occurs between the upper stories, and roof eave and fascia. d. Roof Plan 1. Staff recommends indicating that roof vents are painted to match tile roof. e. Building Code Analysis f. Cross Sections 1. Label height of street curb on cross sections. Provide at multiple points on site. g. Landscape Plans 1. Show location and distribution of shrubs on landscape planting plan. Identify the type and location of all proposed ground covers. 2. Minimum size for shrubs is 5-gallon. 3. Show info for landscape lighting. h. Preliminary Grading and Utility Plans i. Water Quality Management Plan (WQMP) j. Exterior Lighting Plan k. Color Material Board i. Board or sheet (maximum size of 8” x 13” by 3/8” thick) containing precise color swatches and material samples. ii. Provide physical sample board with submittal. l. 1000-Foot Radius Map i. 1,000-foot radius map for noticing due to the project site area exceeding 5- acres. m. Property Owner Information: Page 216 RESOLUTION NO. 2022-___ Attachment 1 -5- P6401-0001\2533730v2.doc i. (3) copies of adjacent property owners and their addresses for all parcels within 1,000 feet of the proposed project. n. Completed Site Address Form 2) Tentative Parcel Map (TPM) Complete the Tentative Parcel Map Application and submittal of all required check list of items including execution of all required signatures. 3) Environmental Assessment (EA) Complete the Environmental Assessment Form, and submittal of all required check list of items including execution of all required signatures: a. Attach any additional studies which elaborate (Millennium Specific Plan Mitigated Negative Declaration required Noise Impact Study, etc.). b. The Noise Study shall be based on existing conditions at the time of application. 4) Additional Plan submittals required for this project: a. Fence and Wall Exhibit – provide a site plan labeling proposed fence and wall exhibit to clearly show the proposed location and type for all fences or walls. This plan should also cover the temporary fence for phasing as well. b. A Project Phasing Map – A map and any necessary documentation that establishes the proposed phasing for all site improvements, off-site improvements, and utilities. c. Community Engagement Plan – provide the community engagement plan within 1,000 feet from your property for staff’s review and approval. 5) Recommended submittal items for this project: a. Recommend that you provide additional three-dimensional (3D) renderings/perspectives. b. Provide additional line of sight perspectives. Show project buildings as viewed from adjacent public streets, communities, etc. Renderings which show the view of the buildings in relation to surrounding mountain views are recommended when presenting to public and surrounding communities. Page 217 Proposed Palm Communities Project Site Map APN 694-120-028 +/-10.0 acres APN 694-120-029 +/-0.49 acres Page 218 DRAFT for Discussion -1- P6401-0001\2637205v3.doc CONTRACT NO. _____________ EXCLUSIVE NEGOTIATION AGREEMENT THIS EXCLUSIVE NEGOTIATION AGREEMENT (the “Agreement”) is entered into ______________, 2022, by and between the City of Palm Desert, a municipal corporation (the “City”) and Palm Communities, a California corporation (the “Developer”), on the terms and provisions set forth below. THE CITY AND THE DEVELOPER HEREBY AGREE AS FOLLOWS: I. [§100] Negotiations A. [§101] Good Faith Negotiations The City and the Developer, acknowledging that time is of the essence, agree for the Negotiation Period (as defined below) to negotiate diligently and in good faith the terms and conditions pursuant to which the City may dispose of and the Developer may develop a certain +/-10.49 acres of real property (the “Site”). The Site is more particularly described in Exhibit A, “Legal Description,” attached hereto and incorporated herein by reference, and is shown on the “Map of the Site,” attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided below, the City agrees, that during the Negotiation Period it will not negotiate with any other person or entity regarding development of the Site or any portion thereof. Among the issues to be addressed during the Negotiation Period are: (1) the terms and conditions of conveyance of the Site to Developer (2) sale price for the Site; (3) Developer’s program to develop the Site; (4) design and aesthetic considerations of the development of the Site, including but not limited to configuration of the development, site density, site circulation and access to surrounding properties including a draft specific plan; (5) all planning and land entitlement processes and requirements, including preparation of a master plan and a specific plan approval process; (6) all permitting and environmental reviews and processes; and (7) other City and Palm Desert Housing Authority requirements pertaining to the development and use of the Site including financial assistance and affordability restrictions. B. [§102] Duration of this Agreement; Effective Date 1. This Agreement (the “Negotiation Period”) shall expire on June 30, 2022. 2. The City Manager may, in his or her sole discretion, agree to extend the Negotiation Period one (1) time for up to ninety (90) days to allow additional time for the parties to come to an agreement on the issues described in Section 101, as well as any other relevant issues. Page 219 -2- P6401-0001\2637205v3.doc 3. In the event the Developer has not continued to negotiate diligently and in good faith, the City shall give written notice thereof to the Developer who shall then have ten (10) working days to commence negotiating in good faith. Following the receipt of such notice and the failure of the Developer to thereafter commence negotiating in good faith within such ten (10) working days, this Agreement may be terminated by the City Manager. 4. This Agreement will be superseded upon approval by the City and the Developer of a Disposition and Development Agreement (“DDA”). C. [§103] Deposit The City and Developer acknowledge that the Developer has deposited with the City a deposit (the “Deposit”) in the amount of two thousand five hundred dollars ($2,500.00) which shall be used by the City to pay for the cost of an appraisal of the Site. II. [§200] Development Concept A. [§201] Scope of Development The negotiations undertaken pursuant hereto shall be based on a development concept that shall include the development on the Site as an affordable multi-family residential subdivision which complies with Government Code Section 37364. Not later than 60 days of the date of execution, the Developer shall do the following: • Perform due diligence on the Site. • Submit a preliminary schedule of a proposed closing and construction timeline. • Submit a preliminary pro forma, including funding sources. • Reimburse the City for any amount by which the cost of the appraisal of the Site exceeds two thousand five hundred dollars ($2,500.00). As soon as practicable following the date of execution hereof, the Developer shall commence and complete the actions on the Developer’s part described in Attachment 1 attached hereto and incorporated herein by this reference. B. [§202] Developer's Findings, Determinations Studies and Reports Upon reasonable notice, and as from time-to-time requested by the City, the Developer agrees to make oral and written progress reports advising the City on all matters and all studies being made by the Developer. In the event the City and the Developer do not enter into a DDA, the City may request that the Developer submit to the City copies of all studies and reports prepared for the proposed development of the Site by or for the Developer, to the extent the Page 220 -3- P6401-0001\2637205v3.doc Developer is legally able to do so, and the City may request the right to the use and benefit from all such studies and reports. The Developer shall not unreasonably withhold or delay its consent to the City’s access and use of such studies and reports. III. [§300] Sale of the Site The sale price and/or other consideration to be paid by the Developer for the Site under the DDA will be equal to at least the appraised fair market value of the Site, and will be subject to approval by the City Council after a public meeting(s) or public hearing(s) as required by law. IV. [§400] The Developer A. [§401] Office of the Developer The Principal office of the Developer is: Danavon L. Horn, President Palm Communities 100 Pacifica, suite 205 Irvine, CA 92618 Attn: Danavon Horn, President B. B. [§402] Members of the Developer The managing member of the Developer is: Danavon Horn, President C. [§403] Full Disclosure The Developer has made full disclosure to the City of its principals, officers, major stockholders, major partners, joint venturers, key managerial employees and other associates, and all other material information concerning the Developer and its associates. The Developer shall promptly notify the City Manager in writing of any significant change in the principals, associates, partners, joint venturers, negotiators, development manager, consultants, professional and directly-involved managerial employees of the Developer. Notwithstanding the foregoing, the Developer reserves the right at its discretion to join and associate with other entities in joint ventures, partnerships or otherwise for the purpose of developing the Site, provided that the Developer retains management and control of such entities and remains fully responsible to the City hereunder. Page 221 -4- P6401-0001\2637205v3.doc V. [§500] Full Disclosure The Developer will be required to make and maintain full disclosure to the City of its methods of financing to be used in the acquisition and development of the Site. VI. [§600] City’s Responsibilities A. [§601] City Assistance and Cooperation The City shall cooperate fully in providing the Developer with appropriate information and assistance for development of the Site, including, but not limited to the following: • Appraisal of the Site, as funded by the Developer as herein provided. • Provide a copy of existing Title Report. • Provide a right of access to the Site for due diligence investigations, pursuant to a right of entry agreement. B. [§602] City and City Council's Public Meeting(s) or Public Hearing(s) A DDA resulting from the negotiations hereunder shall become effective only after and if the DDA has been considered and approved by the City Council in the exercise of its sole discretion at a public meeting(s) or public hearing(s), as applicable, called for such purpose. VII. [§700] Real Estate Commissions The City shall not be liable for any real estate commissions or brokerage fees which may result from this Agreement or a DDA. VIII. [§800] Limitations of this Agreement By its execution of this Agreement, the City is not committing itself to or agreeing to undertake: (1) the sale of land; or (2) any other acts or activities requiring the subsequent independent exercise of discretion by the City or any department thereof. This Agreement does not constitute a disposition of property or exercise of control over property by the City. Execution of this Agreement by the City is merely an agreement to enter into a period of exclusive negotiations according to the terms hereof, reserving final discretion and approval by the City as to any DDA and all land decisions in connection therewith. [SIGNATURES ON FOLLOWING PAGE] Page 222 -5- P6401-0001\2637205v3.doc 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, a municipal corporation By: L. Todd Hileman City Manager PALM COMMUNITIES, a California corporation By: Danavon L. Horn President ATTEST: Niamh M. Ortega Deputy City Clerk APPROVED AS TO FORM: By: City Council Page 223 DRAFT for Discussion Exhibit A -1- P6401-0001\2637205v3.doc EXHIBIT A LEGAL DESCRIPTION Page 224 -2- P6401-0001\2637205v3.doc EXHIBIT B Page 225 DRAFT for Discussion Attachment 1 -1- P6401-0001\2637205v3.doc ATTACHMENT 1 Palm Communities has submitted a formal planning application (“Entitlement Application”) for consideration and approval with the Architectural Review Commission, Planning Commission, and City Council. A complete Entitlement Application submittal requires that all items identified on Exhibit A of this attachment be met. The financial analysis review will be initiated upon execution of the ENA. At that time the Palm Desert Housing Authority (“Authority”) consultant, Keyser Marston Associates (“KMA”), will endeavor to complete the review within 3 weeks from that date, provided any additional information requested by KMA is promptly delivered. As a preliminary review of the responses and information provided on October 21, 2021, the following items need to be clarified and provided for the Financial Analysis review: 1. The 10 acre portion of the Site (APN 694-120-028) as described in the Exclusive Negotiation Agreement (“ENA”) is subject to a declaration pursuant to Government Code Sections 54221(b) and 54221(f)(1)(A) that it is exempt surplus land (City Resolution 2021-21). The development concept being proposed anticipates 10.49 acres of land. The disposition of the additional 0.49 acres, a portion of APN 694- 120-029, is subject to the Surplus Land Act (“SLA”) and it will require the City to initiate the process required under the SLA and obtain final approval from California Department of Housing and Community Development (“HCD”). Palm Communities must identify and submit a legal description of the 0.49 acres in order for the City to initiate the SLA process. 2. The Authority had stated that it was very concerned that the per unit costs for this Project were so much higher than a recent Authority approved project. The Developer will provide more information on why the costs of the referred Riverside project should be the basis for the costs estimate for this proposed project. It is also recommended that the Developer receive estimates from other, non-related, contractors. 3. The Developer needs to include the fair market value of the land in the pro forma. Since the Site size has increased, $3,147,000 should be the assumed purchase price at this time. The purchase price will be subject to adjustment to reflect the appraisal. 4. Given that Low and Moderate Income Housing Asset Funds will be used by the Housing Authority to fill the financial gap, the rental restrictions per State law (previously provided to the Developer) will be imposed in addition to the TCAC requirements. The pro forma provided assumes that only TCAC restrictions will be imposed. In addition, the Developer must submit a complete Precise Plan application, Tentative Parcel Map application, and Environmental Assessment Form (see Exhibit A for project entitlement application requirements). Page 226 Attachment 1 -2- P6401-0001\2637205v3.doc EXHIBIT A Proposed Palm Villas at Millennium Project Project Application Requirements 1) Precise Plan (PP) Application & Fees 2) Tentative Parcel Map (TPM) Application & Fees 3) Environmental Assessment (EA) Form & Fees TABLE 1 Project Application Fees Application Type Fee Precise Plan (PP)* $ 4,019.00 Tentative Parcel Map (TPM)* - Environmental Assessment (EA) $ 276.00 Preliminary WQMP $ 3,700.00 Total Fee $ 7,995.00 *The fee for the PP and TPM is combined 1) Precise Plan (PP) Completed Precise Plan Application and submittal of all required check list of items including execution of all required signatures. Here are preliminary comments for your proposed project: a. Site Plan i. Ensure all dimensions are labeled for Technology, Gerald Ford, Dinah Shore. Identify whether existing or proposed, including any dedications for site access. ii. Your plan shows access and driveway dimensions, however, also include dimensions of where right-of-way is proposed for access dedication to each parcel. iii. Label dimension of stalls. Refer to City Council Reso. 01-5 for minimum standards. Parking spaces cannot overhang over a sidewalk / pedestrian walkway / path of travel. Sheet 1 identifies two different standards for “standard spaces” and should clarify where each is used. Striping details must match requirements of resolution. iv. Map Legend should include the following: 1. Required and proposed number of parking spaces (including handicap) – Reference California Government Code Section for reduction to clarify that reduction for affordable is based on State requirement of 1.5 spaces for two- and three-bedroom units. Non-affordable units must comply with the minimum parking established by the Millennium Specific Plan and be reflected in the parking summary. 2. Lot coverage (percentage of land covered by building(s)) – Revise table to indicate max. allowable coverage is 50% per PR-22 zoning and Millennium Specific Plan. Page 227 Attachment 1 -3- P6401-0001\2637205v3.doc 3. Landscape percentage in and adjacent to the parking area – Indicate common open area per unit. Minimum requirement is 250 square feet per unit (See Millennium Specific Plan Page 25). b. Architectural Elevations i. Show screening for all roof-mounted equipment 1. HVAC and roof ladders will need to be screened. Downspouts and gutters should be shown if proposed. ii. Colored elevations, rendering and/or perspectives (separate sheet) 1. Provide elevations for all structures including the carports, and trash enclosures. c. Floor Plans i. Provide dimensions of interior rears, including the utility rooms to plan for appropriate sizing based on utilities. ii. Label utility rooms on floor plans for the apartment buildings. iii. Ensure the building pop-outs are labeled. 1. Staff recommends providing spot details for architectural elements for exterior details such as foam and window trim around doors and windows, cross section showing typical window recessing, and a reference showing the building plane change that occurs between the upper stories, and roof eave and fascia. d. Roof Plan 1. Staff recommends indicating that roof vents are painted to match tile roof. e. Building Code Analysis f. Cross Sections 1. Label height of street curb on cross sections. Provide at multiple points on site. g. Landscape Plans 1. Show location and distribution of shrubs on landscape planting plan. Identify the type and location of all proposed ground covers. 2. Minimum size for shrubs is 5-gallon. 3. Show info for landscape lighting. h. Preliminary Grading and Utility Plans i. Water Quality Management Plan (WQMP) j. Exterior Lighting Plan k. Color Material Board i. Board or sheet (maximum size of 8” x 13” by 3/8” thick) containing precise color swatches and material samples. ii. Provide physical sample board with submittal. l. 1000-Foot Radius Map i. 1,000-foot radius map for noticing due to the project site area exceeding 5- acres. m. Property Owner Information: i. (3) copies of adjacent property owners and their addresses for all parcels within 1,000 feet of the proposed project. Page 228 Attachment 1 -4- P6401-0001\2637205v3.doc n. Completed Site Address Form 2) Tentative Parcel Map (TPM) Complete the Tentative Parcel Map Application and submittal of all required check list of items including execution of all required signatures. 3) Environmental Assessment (EA) Complete the Environmental Assessment Form, and submittal of all required check list of items including execution of all required signatures: a. Attach any additional studies which elaborate (Millennium Specific Plan Mitigated Negative Declaration required Noise Impact Study, etc.). b. The Noise Study shall be based on existing conditions at the time of application. 4) Additional Plan submittals required for this project: a. Fence and Wall Exhibit – provide a site plan labeling proposed fence and wall exhibit to clearly show the proposed location and type for all fences or walls. This plan should also cover the temporary fence for phasing as well. b. A Project Phasing Map – A map and any necessary documentation that establishes the proposed phasing for all site improvements, off-site improvements, and utilities. c. Community Engagement Plan – provide the community engagement plan within 1,000 feet from your property for staff’s review and approval. 5) Recommended submittal items for this project: a. Recommend that you provide additional three-dimensional (3D) renderings/perspectives. b. Provide additional line of sight perspectives. Show project buildings as viewed from adjacent public streets, communities, etc. Renderings which show the view of the buildings in relation to surrounding mountain views are recommended when presenting to public and surrounding communities. Page 229 [This page has intentionally been left blank.] Page 230 STAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: March 24, 2022 PREPARED BY: Heather Horning, Assistant to the City Manager REQUEST: Request for feedback and direction on the consideration of a Council- initiated five district ballot measure for the 2022 ballot. Recommendation That the City Council provide City staff feedback and direction on the consideration of a Council-initiated five district ballot measure for the 2022 ballot. OR 1. Approve Resolution No. 2022-___ calling for the placement of a measure on the ballot for the November 8, 2022 general municipal election for the submission to the qualified voters of an ordinance to transition from two to five Council districts and a “by district” election system for all five districts. 2. Approve Resolution No. 2022-___ requesting the Board of Supervisors of the County of Riverside to consolidate a general municipal election to be held on November 8, 2022, with the statewide general election to be held on that date pursuant to Elections Code Section 10403. 3. Approve Resolution No. 2022-___ providing for the filing of primary and rebuttal arguments and setting rules for the filing of written arguments regarding a City measure to be submitted at the November 8, 2022 general municipal election. Background The City Council is comprised of five Council members elected from two districts. Currently, one Council member is elected from District 1 that encompasses the Civic Center Core and approximately 20% of the City’s residents. Four Council members are elected from District 2, which includes the remainder of the City’s population (about 80% of the residents). At the January 27, 2022 City Council meeting staff received direction to prepare the resolutions that would be required to place on the ballot for the November 8, 2022 general election an ordinance to transition from two to five Council Member districts, with all Page 231 March 24, 2022 – Staff Report Ballot Measure for Five Districts Page 2 of 5 Council Members to be elected by district. Copies of the drafted resolutions are attached to this report. Councilmember Kelly proposed that the resolution calling for the placement of a measure on the ballot include language that states: “the majority of the Council affirms the superiority of the existing system in which most voters can help to select four Council members, but the frequency of public discussion advocating for splitting the city into more districts warrants asking the voters to affirm the Council's choice.” Staff has included an Alternate Resolution calling the election (Attachment 4) that incorporates this language in the recitals for City Council’s discussion and consideration. Information about the process and timeline of a Council-initiated ballot measure is outlined below. Staff has identified a few open questions during this process that are included below as well. Council-Initiated Ballot Measure Process Adopt Resolutions Under Elections Code section 9222, the City Council may submit a ballot measure directly to the voters to enact, amend, or repeal any ordinance at any general or special election. Unlike citizen-initiated ballot measures, there is no petition process. The ballot measure must be submitted at least 88 days before the election, or by August 12, 2022, for the November 8, 2022 general election. The City Council must adopt three resolutions in order to properly submit a ballot measure: (1) a resolution calling the election (with the actual ordinance attached) and directing the city attorney to prepare an impartial analysis of an initiative; (2) a resolution requesting that the election be consolidated with the statewide November 8, 2022 general election; (3) a resolution setting deadlines for filing primary and rebuttal arguments with the City Clerk. The draft resolutions are attached to this report as Attachment 1, 2, and 3 respectively. The City Clerk, who is the City’s Elections Official, must forward the adopted resolutions to the County at least 88 days before the election, or by August 12, 2022. Authorize Councilmember(s) to File Written Arguments for the Measure Elections Code section 9282 expressly allows “the legislative body, or member or members of the legislative body authorized by that body, or an individual voter who is eligible to vote on the measure, or bona fide association of citizens, or a combination of voters and associations” to file a written argument for or against a city measure. The City Council, if it chooses to, could designate one or two Councilmember(s) to author argument(s) at this meeting. The designated Councilmembers should prepare the arguments on their personal time and submit them directly to the City Clerk without further action or involvement by the City or City Council since public resources cannot be used for campaign activity. Page 232 March 24, 2022 – Staff Report Ballot Measure for Five Districts Page 3 of 5 Primary Argument Pursuant to Elections Code section 9282(c), the primary argument shall not exceed 300 words. The argument must be accompanied by the name(s) and signature(s) of the author(s) preparing the argument. The deadline to submit primary arguments to the City Clerk is August 22, 2022 at 5 p.m. Rebuttal Argument Once the City Clerk has selected an argument in favor and an argument against the measure to print in the voter information guide, the City Clerk must send a copy of the argument in favor to the author against, and a copy of the argument against to the author in favor. If an argument against the measure is submitted, the author(s) shall prepare a rebuttal argument. Pursuant to Elections Code section 9285(a)(3), the rebuttal argument shall not exceed 250 words. The deadline to submit rebuttal arguments to the City Clerk is September 1, 2022 at 5 p.m. City Clerk’s Selection of Arguments After the arguments are submitted, the City Clerk provides a 10 calendar day public examination period for arguments and for the impartial analysis. The City Clerk selects arguments and prepares sample ballot and ballot language to submit to the County for publication. Pursuant to Elections Code section 9287, if multiple arguments are submitted, the City Clerk, in selecting an argument to print in the voter information guide, must give preference to arguments submitted by the following in order of priority: • a Councilmember(s) authorized by the City Council • a voter, or bona fide association of citizens, or a combination of both, who are the sponsors or proponents of the measure • bona fide association of citizens • individual voters. In order for the City Clerk to determine whether a group qualifies as a bona fide association of citizens, the association must submit with its argument a copy of one of the following: • Articles of incorporation/association, partnership documents or similar documents; • Letterhead with the name of the organization and its principal officers; or, • If the association is primarily formed to support/oppose the measure, its filed statement of organization. Page 233 March 24, 2022 – Staff Report Ballot Measure for Five Districts Page 4 of 5 Requirements for Measure Approval In order for the measure to be approved, the measure would need to receive a simple majority vote. Then the City Council would need to adopt new district boundaries to create five districts pursuant to the state Fair Map Act. The current boundaries of District 1 will be reviewed and have the potential to be changed during this process. The first election cycle with the new districts would be at the November 2024 general election. Timeline The deadline for the City Clerk to submit the ballot measure to the County Registrar of Voters is August 12, 2022. The last regular City Council meeting before this deadline is July 14, 2022. If the City Councils wants to proceed with this process, staff recommends adopting the resolutions by June 2022 in order facilitate the processing timelines. Open Questions and Request for Direction or Follow-up from Staff Staff has identified several open questions that staff is requesting feedback or direction during the process of considering of this ballot measure including the following: • Does City Council have feedback on the draft resolutions? • Would the City Council like to designate a subcommittee to work with staff on the ballot language? • Should the City engage a consultant for public education purposes? • To what extend should District 1 boundaries be grandfathered in? • Would City Council like to designate drafters of the pro and/or con arguments for the ballot measure? Fiscal Analysis The estimated cost of placing the measure on the November 8, 2022 ballot, is $35,000. Funds have been requested as part of the 2022/2023 Financial Plan. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER Robert W. Hargreaves Robert W. Hargreaves City Attorney N/A L. Todd Hileman City Manager Veronica Chavez Veronica Chavez Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman ATTACHMENTS: 1. Resolution calling the election (with the actual ordinance attached) 2. Resolution requesting consolidating the election with the statewide November 8, 2022 general election Page 234 March 24, 2022 – Staff Report Ballot Measure for Five Districts Page 5 of 5 3. Resolution setting deadlines for filing primary and rebuttal arguments with the City Clerk 4. Alternate Resolution calling the election (with the actual ordinance attached) Page 235 Attachment 1 -1- RESOLUTION NO. 2022- ________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, CALLING FOR THE PLACEMENT OF A MEASURE ON THE BALLOT FOR THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF AN ORDINANCE TO TRANSITION FROM TWO TO FIVE COUNCIL DISTRICTS AND A “BY DISTRICT” ELECTION SYSTEM FOR ALL FIVE DISTRICTS WHEREAS, the City Council of the City of Palm Desert is comprised of five Council members elected from two districts; and WHEREAS, one Council member is elected from a district that includes the Civic Center Core and four Council members are elected from another district consisting of the remainder of the City of Palm Desert; and WHEREAS, Section 500 of the City Charter provides that City may adopt, make, exercise, and enforce all legislation, laws, and regulations to exercise all rights, powers, and privileges granted by the State of California; and WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and WHEREAS, the City Council would like to submit to the voters at the November 8, 2022 General Municipal Election a measure increasing the number of Council districts from two to five, with all Council members to be elected by district, where only voters who live in a district may vote for a Council member who lives in that district; and WHEREAS, the next regularly scheduled general election at which City Council members will be elected is November 8, 2022; and WHEREAS, the ordinance to be considered by the qualified voters are described and provided for in the ordinance/measure attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof, in accordance with all applicable laws. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. Recitals. The City Council of the City of Palm Desert, California, hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code section 9222, and any other applicable requirements of the laws of the State of California relating to the City, the City Council, hereby orders the Measure to be submitted to the voters of the City at the General Municipal Election to be held on Tuesday, November 8, 2022. Page 236 Attachment 1 -2- SECTION 3. The City Council, pursuant to California Elections Code section 9222, hereby orders that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 8, 2022, in addition to any other matters required by law, there shall be printed substantially the following ballot question: “Starting with the November 5, 2024 election, shall the number of City Council districts change from two to five, with the election system changing from one Council member of the City of Palm Desert elected by district and four Council members elected at large, to all five members of the City Council being elected by districts as described in Ordinance No. ____?” YES NO SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk not later than the deadline for submittal of primary arguments for or against the Measure. The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at (760) 776-6402 and a copy will be mailed at no cost to you.” SECTION 6. Notice of the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide, and a statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk. SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, November 8, 2022, file with the Board of Supervisors and the County Clerk – Registrar of Voters of the County of Riverside, State of California, a certified copy of this Resolution. Page 237 Attachment 1 -3- SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run. SECTION 10. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5). SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity. SECTION 12. This Resolution shall become effective upon its adoption. SECTION 13. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Palm Desert, California, on the 24th day of March, 2022, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ____________________________________ JAN C. HARNIK, MAYOR ATTEST: _______________________________________ ANTHONY J. MEJIA, CITY CLERK APPROVED AS TO FORM: ________________________________________ ROBERT HARGREAVES, CITY ATTORNEY Page 238 Attachment 1 -4- CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF PALM DESERT ) I, Anthony J. Mejia, City Clerk, hereby certify that the foregoing is a true copy of Resolution No. 2022 - ____, adopted by the City Council of the City of Palm Desert, California, at a regular meeting thereof held the 24th day of March, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT HARNIK _____ _____ _______ _______ JONATHAN _____ _____ _______ _______ NESTANDE _____ _____ _______ _______ QUINTANILLA _____ _____ _______ _______ KELLY _____ _____ _______ _______ WITNESS my hand and official seal of the City of Palm Desert this 24th day of March, 2022. Anthony J. Mejia, City Clerk Page 239 Attachment 1 -5- EXHIBIT “A” Ordinance Transitioning to Five “By District” Districts [attached behind this page] Page 240 Attachment 1 -6- ORDINANCE NO. ____ AN ORDINANCE OF THE PEOPLE OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 2.38.040 OF CHAPTER 2.38 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE TO TRANSITION FROM TWO TO FIVE DISTRICTS AND A “BY DISTRICT” ELECTION SYSTEM FOR ALL FIVE DISTRICTS WHEREAS, Section 2.38.040 of Chapter 2.38 to Title 2 of the Palm Desert Municipal Code provides that five Council members shall be elected from two districts, with one Council member elected “by district” from one district known as the Civic Center Core to include approximately twenty percent of the City’s residents, and the remaining four Council members elected at-large from the other larger surrounding district that covers the remaining eighty percent of the City’s residents; WHEREAS, the People of the City desire to amend Section 2.38.040 in order to increase the number of Council districts from two to five, with all Council members to be elected by district, where only voters who live in a district may vote for a Council member who lives in that district. NOW, THEREFORE, THE PEOPLE OF THE CITY OF PALM DESERT DO HEREBY ORDAIN AS FOLLOWS: Section 1. This Ordinance shall be known as the “Five District By-District Election System,” the full text of which is set forth in Attachment “1” attached hereto and incorporated herein by reference. Section 2. Approval by the City Council. This Ordinance was duly approved for placement on the ballot by a majority vote of all members of the City Council on March 24, 2022. Section 3. Approval by the Voters. Pursuant to Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of Palm Desert voting at the General Municipal Election of November 8, 2022. It shall be deemed adopted when the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter. Section 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. I hereby certify that this Five District By-District Election System Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Palm Desert on the 8th day of November, 2022. Page 241 Attachment 1 -7- AYES: NOES: ABSTAIN: ABSENT: ____________________________________ JAN C. HARNIK, MAYOR ATTEST: ______________________________________ ANTHONY J. MEJIA, CITY CLERK APPROVED AS TO FORM: ____________________________ ROBERT HARGREAVES, CITY ATTORNEY Page 242 Attachment 1 -8- Attachment 1 Palm Desert Municipal Code Title 2 ADMINISTRATION AND PERSONNEL Chapter 2.38 GENERAL MUNICIPAL ELECTIONS 2.38.040 Election of city council. 2.38.040 Election of city council. A. Definitions. The following definitions apply to this section: 1. “By district,” as used in this section, shall mean election of members of the city council by voters of the district alone. 2. “Geographical area making up the district” shall mean the district. B. Number of Districts. Pursuant to Government Code Section 34871(a), the city of Palm Desert is divided into five council districts. C. Boundaries and Numbering of Each District. i. Descriptions of the boundaries of the two districts and their numbering established by Ordinance No. 1356 are shown on Exhibit A of Ordinance No. 1356 along with a map entitled “City of Palm Desert District Map,” a copy of which shall be on file in the city clerk’s office. ii. For the transition to district elections for all five Council members pursuant to subsection F, descriptions of the boundaries of the five districts and their numbering shall be established pursuant to Elections Code section 21620 et seq. prior to the November 5, 2024 election. D. Election of City Council. Members of the city council shall be elected “by districts” from five districts as provided herein. One of the districts, including approximately twenty percent of the city’s residents, would encompass the Civic Center Core and elect one council member. The other four districts would include the remainder of the city (about eighty percent of the residents), with each district (approximately twenty percent of the city’s residents) to elect one council member. Except as provided in subsection F, entitled Transition to District Elections, a council member of a district must live in that district and must be a registered voter in that district to be eligible to hold office for that district. Only voters who live in a district shall be eligible to vote in the election for council member(s) of that district. Page 243 Attachment 1 -9- E. Amendment of District Boundaries. Pursuant to Elections Code Section 21621, as it may be amended, the city council shall adjust the boundaries of any of the districts following each decennial federal census. Using the census as a basis, the city council shall adjust the boundaries in compliance with all applicable provisions of law. At the time of any annexation of territory to the city, the city council shall designate, by resolution adopted by a vote of at least a majority of the city council, the contiguous district to which the annexed territory shall be a part and shall amend the district boundaries if necessary in accordance with Elections Code Section 21623, as it may be amended. Pursuant to Elections Code Section 21626, the term of office of any council member who has been elected and whose term of office has not expired shall not be affected by any change in the boundaries of the district from which he or she was elected, whether or not that council member is a resident within the boundaries of the district as adjusted. At the first election for council following adjustment of the boundaries of the districts, a person meeting the requirements of Government Code Section 34882 shall be elected to the city council for each district under the readjusted district plan that has the same district number as a district whose incumbent’s term on the council is due to expire. F. Transition to District Elections. In 2024, one council member shall be elected by Districts 1, 3, and 5. In 2026, one council members shall be elected from Districts 2 and 4. Terms of office shall be four years. Each incumbent council member elected at large shall be allowed to complete the term for which they are elected regardless of the district of residency so long as they otherwise remain eligible to hold the office and have not been removed for cause or elected to another office. G. The City Council may amend subsections A, C, E and F without voter approval. Page 244 Attachment 2 RESOLUTION NO. 2022- ______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF RIVERSIDE TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022 WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THAT DATE PURSUANT TO ELECTIONS CODE SECTION 10403 WHEREAS, on March 24, 2022, the City Council of the City of Palm Desert (“City Council”) adopted Resolution No. 2022- _______, calling a General Municipal Election to be held on November 8, 2022 for the purpose of submitting to the voters a proposed city council elections measure; and WHEREAS, it is therefore desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City of Palm Desert (“Palm Desert”) the precincts, polling places and election officers of the two elections be the same, and that the election department of the County of Riverside (“County”) canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Request for Consolidation. Pursuant to the requirements of Elections Code section 10403, the Board of Supervisors of the County of San Riverside (“Board of Supervisors”) is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of submitting to the voters the following city council elections measure: Section 2. Measure Language. The measure is to appear on the ballot as follows: “Starting with the November 5, 2024 election, shall the number of City Council districts change from two to five, with the election system changing from one Council member of the City of Palm Desert elected by district and four Council members elected at large, to all five members of the City Council being elected by districts as described in Ordinance No. ____?” YES NO Section 3. Canvass of Returns. The County election department is authorized to canvass the returns and perform all other proceedings incidental to and connected with the General Municipal Election. The Election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. Page 245 2 Pursuant to Elections Code sections 10403 and 10418, the election will be held and conducted in accordance with the provisions of law regulating the Statewide General Election. Section 4. Necessary Steps. The Board of Supervisors is requested to issue instructions to the County election department to take any and all steps necessary for the holding of the consolidated election. Section 5. Costs. The City Council determines and declares that the City will pay to the County the reasonable and actual expenses incurred by the County by the consolidation of the General Municipal Election with the Statewide General Election. The City shall reimburse the County for services performed when the work is completed and upon presentation to the City of a properly approved bill. The City Manager of the City of Palm Desert is authorized and directed to pay for the expenses incurred after receiving a statement from the County of Riverside. Section 6. Filing of Resolution. The City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the election department of the County of Riverside. Section 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Deputy City Clerk this 24th day of March, 2022. ____________________________________ JAN C. HARNIK, MAYOR ATTEST: ________________________________________ ANTHONY J. MEJIA, CITY CLERK APPROVED AS TO FORM: _______________________________________ ROBERT HARGREAVES, CITY ATTORNEY Page 246 3 CERTIFICATION STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF PALM DESERT I, Niamh M. Ortega, Deputy City Clerk, hereby certify that the foregoing is a true copy of Resolution No. 2022-____, adopted by the City Council of the City of Palm Desert, California, at a regular meeting thereof held the 24th day of March, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT HARNIK _____ _____ _______ _______ JONATHAN _____ _____ _______ _______ NESTANDE _____ _____ _______ _______ QUINTANILLA _____ _____ _______ _______ KELLY _____ _____ _______ _______ WITNESS my hand and official seal of the City of Palm Desert this 24th day of March, 2022. _____________________________ ANTHONY J. MEJIA, CITY CLERK Page 247 Attachment 3 RESOLUTION NO. 2022 -___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, PROVIDING FOR THE FILING OF PRIMARY AND REBUTTAL ARGUMENTS AND SETTING RULES FOR THE FILING OF WRITTEN ARGUMENTS REGARDING A CITY MEASURE TO BE SUBMITTED AT THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION WHEREAS, a General Municipal Election is to be held in the City of Palm Desert, California on November 8, 2022, at which there will be submitted to the voters the following measure: “Starting with the November 5, 2024 election, shall the number of City Council districts change from two to five, with the election system changing from one Council member of the City of Palm Desert elected by district and four Council members elected at large, to all five members of the City Council being elected by districts as described in Ordinance No. ____?” Yes No NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Primary Arguments. That the City Council authorizes (i) the City Council or any member(s) of the City Council, (ii) any individual voter eligible to vote on the above measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations, to file a written argument in favor of or against the City measure, accompanied by the printed name(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the argument until and including the date fixed below by the City Clerk, after which no arguments for or against the City measure may be submitted to the City Clerk. The deadline to submit arguments for or against the City Measure pursuant to this Resolution is declared by the City Clerk to be August 22, 2022 at 5:00 p.m. Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. Section 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the primary arguments for and against the City Measure which will be printed and distributed to the voters, the Page 248 2 Clerk shall send copies of the primary argument in favor of the Measure to the authors of the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than September 1, 2022, at 5:00 p.m. Rebuttal arguments shall be printed in the same manner as the primary arguments. Each rebuttal argument shall immediately follow the primary argument which it seeks to rebut. Section 3. Prior Resolutions. That all previous resolutions providing for the filing of primary and rebuttal arguments related to City measures are repealed. Section 4. November 8, 2022 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on November 8, 2022, and shall then be repealed. Section 5. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original Resolutions. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Deputy City Clerk this 24th day of March, 2022. __________________________ JAN C. HARNIK, MAYOR ATTEST: ________________________________________ ANTHONY J. MEJIA, CITY CLERK APPROVED AS TO FORM: _______________________________________ ROBERT HARGREAVES, CITY ATTORNEY Page 249 3 CERTIFICATION STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF PALM DESERT I, Niamh M. Ortega, Deputy City Clerk, hereby certify that the foregoing is a true copy of Resolution No. 2022-____, adopted by the City Council of the City of Palm Desert, California, at a regular meeting thereof held the 24th day of March, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT HARNIK _____ _____ _______ _______ JONATHAN _____ _____ _______ _______ NESTANDE _____ _____ _______ _______ QUINTANILLA _____ _____ _______ _______ KELLY _____ _____ _______ _______ WITNESS my hand and official seal of the City of Palm Desert this 24th day of March, 2022. _____________________________ ANTHONY J. MEJIA, CITY CLERK Page 250 Attachment 4 – Alternate Resolution -1- RESOLUTION NO. 2022- ________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, CALLING FOR THE PLACEMENT OF A MEASURE ON THE BALLOT FOR THE NOVEMBER 8, 2022 GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF AN ORDINANCE TO TRANSITION FROM TWO TO FIVE COUNCIL DISTRICTS AND A “BY DISTRICT” ELECTION SYSTEM FOR ALL FIVE DISTRICTS WHEREAS, the City Council of the City of Palm Desert is comprised of five Council members elected from two districts; and WHEREAS, one Council member is elected from a district that includes the Civic Center Core and four Council members are elected from another district consisting of the remainder of the City of Palm Desert; and WHEREAS, Section 500 of the City Charter provides that City may adopt, make, exercise, and enforce all legislation, laws, and regulations to exercise all rights, powers, and privileges granted by the State of California; and WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and WHEREAS, the majority of the Council affirms the superiority of the existing system in which most voters can help to select four Council members, but the frequency of public discussion advocating for splitting the city into more districts warrants asking the voters to affirm the Council's choice; and WHEREAS, the next regularly scheduled general election at which City Council members will be elected is November 8, 2022; and WHEREAS, the ordinance to be considered by the qualified voters are described and provided for in the ordinance/measure attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof, in accordance with all applicable laws. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. Recitals. The City Council of the City of Palm Desert, California, hereby finds that the foregoing recitals are true and correct and are incorporated herein as substantive findings of this Resolution. SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code section 9222, and any other applicable requirements of the laws of the State of California relating to the City, the City Council, hereby orders the Measure to be submitted to the voters of the City at the General Municipal Election to be held on Tuesday, November 8, 2022. Page 251 Attachment 4 – Alternate Resolution -2- SECTION 3. The City Council, pursuant to California Elections Code section 9222, hereby orders that the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 8, 2022, in addition to any other matters required by law, there shall be printed substantially the following ballot question: “Starting with the November 5, 2024 election, shall the number of City Council districts change from two to five, with the election system changing from one Council member of the City of Palm Desert elected by district and four Council members elected at large, to all five members of the City Council being elected by districts as described in Ordinance No. ____?” YES NO SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analysis to the City Clerk not later than the deadline for submittal of primary arguments for or against the Measure. The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters or by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-font bold type, the following: “The above statement is an impartial analysis of Ordinance or Measure ____. If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at (760) 776-6402 and a copy will be mailed at no cost to you.” SECTION 6. Notice of the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law. SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide, and a statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk. SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, November 8, 2022, file with the Board of Supervisors and the County Clerk – Registrar of Voters of the County of Riverside, State of California, a certified copy of this Resolution. Page 252 Attachment 4 – Alternate Resolution -3- SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days prior to being submitted for printing in the voter information guide. The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run. SECTION 10. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5). SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity. SECTION 12. This Resolution shall become effective upon its adoption. SECTION 13. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Palm Desert, California, on the 24th day of March, 2022, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ____________________________________ JAN C. HARNIK, MAYOR ATTEST: _______________________________________ ANTHONY J. MEJIA, CITY CLERK APPROVED AS TO FORM: ________________________________________ ROBERT HARGREAVES, CITY ATTORNEY Page 253 Attachment 4 – Alternate Resolution -4- CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF PALM DESERT ) I, Anthony J. Mejia, City Clerk, hereby certify that the foregoing is a true copy of Resolution No. 2022 - ____, adopted by the City Council of the City of Palm Desert, California, at a regular meeting thereof held the 24th day of March, 2022 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT HARNIK _____ _____ _______ _______ JONATHAN _____ _____ _______ _______ NESTANDE _____ _____ _______ _______ QUINTANILLA _____ _____ _______ _______ KELLY _____ _____ _______ _______ WITNESS my hand and official seal of the City of Palm Desert this 24th day of March, 2022. Anthony J. Mejia, City Clerk Page 254 Attachment 4 – Alternate Resolution -5- EXHIBIT “A” Ordinance Transitioning to Five “By District” Districts [attached behind this page] Page 255 Attachment 4 – Alternate Resolution -6- ORDINANCE NO. ____ AN ORDINANCE OF THE PEOPLE OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING SECTION 2.38.040 OF CHAPTER 2.38 TO TITLE 2 OF THE PALM DESERT MUNICIPAL CODE TO TRANSITION FROM TWO TO FIVE DISTRICTS AND A “BY DISTRICT” ELECTION SYSTEM FOR ALL FIVE DISTRICTS WHEREAS, Section 2.38.040 of Chapter 2.38 to Title 2 of the Palm Desert Municipal Code provides that five Council members shall be elected from two districts, with one Council member elected “by district” from one district known as the Civic Center Core to include approximately twenty percent of the City’s residents, and the remaining four Council members elected at-large from the other larger surrounding district that covers the remaining eighty percent of the City’s residents; and WHEREAS, the People of the City desire to amend Section 2.38.040 in order to increase the number of Council districts from two to five, with all Council members to be elected by district, where only voters who live in a district may vote for a Council member who lives in that district. NOW, THEREFORE, THE PEOPLE OF THE CITY OF PALM DESERT DO HEREBY ORDAIN AS FOLLOWS: Section 1. This Ordinance shall be known as the “Five District By-District Election System,” the full text of which is set forth in Attachment “1” attached hereto and incorporated herein by reference. Section 2. Approval by the City Council. This Ordinance was duly approved for placement on the ballot by a majority vote of all members of the City Council on March 24, 2022. Section 3. Approval by the Voters. Pursuant to Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of Palm Desert voting at the General Municipal Election of November 8, 2022. It shall be deemed adopted when the City Council has certified the results of that election by resolution and shall take effect ten (10) days thereafter. Section 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby. I hereby certify that this Five District By-District Election System Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Palm Desert on the 8th day of November, 2022. Page 256 Attachment 4 – Alternate Resolution -7- AYES: NOES: ABSTAIN: ABSENT: ____________________________________ JAN C. HARNIK, MAYOR ATTEST: ______________________________________ ANTHONY J. MEJIA, CITY CLERK APPROVED AS TO FORM: ____________________________ ROBERT HARGREAVES, CITY ATTORNEY Page 257 Attachment 4 – Alternate Resolution -8- Attachment 1 Palm Desert Municipal Code Title 2 ADMINISTRATION AND PERSONNEL Chapter 2.38 GENERAL MUNICIPAL ELECTIONS 2.38.040 Election of city council. 2.38.040 Election of city council. A. Definitions. The following definitions apply to this section: 1. “By district,” as used in this section, shall mean election of members of the city council by voters of the district alone. 2. “Geographical area making up the district” shall mean the district. B. Number of Districts. Pursuant to Government Code Section 34871(a), the city of Palm Desert is divided into five council districts. C. Boundaries and Numbering of Each District. i. Descriptions of the boundaries of the two districts and their numbering established by Ordinance No. 1356 are shown on Exhibit A of Ordinance No. 1356 along with a map entitled “City of Palm Desert District Map,” a copy of which shall be on file in the city clerk’s office. ii. For the transition to district elections for all five Council members pursuant to subsection F, descriptions of the boundaries of the five districts and their numbering shall be established pursuant to Elections Code section 21620 et seq. prior to the November 5, 2024 election. D. Election of City Council. Members of the city council shall be elected “by districts” from five districts as provided herein. One of the districts, including approximately twenty percent of the city’s residents, would encompass the Civic Center Core and elect one council member. The other four districts would include the remainder of the city (about eighty percent of the residents), with each district (approximately twenty percent of the city’s residents) to elect one council member. Except as provided in subsection F, entitled Transition to District Elections, a council member of a district must live in that district and must be a registered voter in that district to be eligible to hold office for that district. Only voters who live in a district shall be eligible to vote in the election for council member(s) of that district. Page 258 Attachment 4 – Alternate Resolution -9- E. Amendment of District Boundaries. Pursuant to Elections Code Section 21621, as it may be amended, the city council shall adjust the boundaries of any of the districts following each decennial federal census. Using the census as a basis, the city council shall adjust the boundaries in compliance with all applicable provisions of law. At the time of any annexation of territory to the city, the city council shall designate, by resolution adopted by a vote of at least a majority of the city council, the contiguous district to which the annexed territory shall be a part and shall amend the district boundaries if necessary in accordance with Elections Code Section 21623, as it may be amended. Pursuant to Elections Code Section 21626, the term of office of any council member who has been elected and whose term of office has not expired shall not be affected by any change in the boundaries of the district from which he or she was elected, whether or not that council member is a resident within the boundaries of the district as adjusted. At the first election for council following adjustment of the boundaries of the districts, a person meeting the requirements of Government Code Section 34882 shall be elected to the city council for each district under the readjusted district plan that has the same district number as a district whose incumbent’s term on the council is due to expire. F. Transition to District Elections. In 2024, one council member shall be elected by Districts 1, 3, and 5. In 2026, one council members shall be elected from Districts 2 and 4. Terms of office shall be four years. Each incumbent council member elected at large shall be allowed to complete the term for which they are elected regardless of the district of residency so long as they otherwise remain eligible to hold the office and have not been removed for cause or elected to another office. G. The City Council may amend subsections A, C, E and F without voter approval. Page 259 [This page has intentionally been left blank.] Page 260 CONTRACT NO. C42450 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: March 24, 2022 PREPARED BY: Ryan Gayler, Project Manager REQUEST: Award Contract No. C42450 in the amount of $2,235,235 to American Asphalt South, Inc. of Riverside, California for the 2021 Slurry Seal Project (Project No. 751-21). ___________________________________________________________________________ Recommendation By Minute Motion: 1. Award Contract No. C42450 in the amount of $2,235,235 to American Asphalt South, Inc. of Riverside, California, for the 2021 Slurry Seal Project; 2. Authorize the Director of Finance to set aside a 10% contingency in the amount of $223,524; 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. Funds are available in the Gas Tax Street Maintenance Fund, Account No. 2114311- 4332000, and the Measure “A” Street Maintenance Fund, Account No. 2134311-4332000. Background Analysis The 2021 Slurry Seal Project will use rubberized slurry seal to coat various streets within Palm Desert. The rubberized slurry has an elastic quality that prolongs street life beyond what is expected from conventional slurry. The project encompasses nearly 7.5 million square feet of the residential and collector streets within the Palm Desert Country Club community and arterial streets in the north sphere, north of Frank Sinatra. Included within the project are striping improvements for the roundabouts on Dinah Shore, east of Portola Avenue. There have been a significant number of vehicular collisions at the Athena Point / Dinah Shore roundabout which prompted a review of the design and proposed improvements. The improvements will begin narrowing the street at the approaches to the roundabouts to promote a reduction in speed. In addition, new signage will call attention to the upcoming roundabouts. The roundabouts will be monitored to determine if the improvements result in a reduction in the number of collisions. Page 261 March 24, 2022 - Staff Report Award Contract No. C42450 to American Asphalt South, Inc. (Project No. 751-21) Page 2 of 2 The project was advertised for bid, and on February 25, 2022, five bids were received electronically through the City’s bid management portal with the following results: Contractor Location Bid Amount American Asphalt South, Inc. Riverside, CA $2,235,235.00 Roy Allan Slurry Seal, Inc. Santa Fe Springs, CA $2,240,117.00 Pavement Coatings Company Jurupa Valley, CA $2,347,750.00 VSS International, Inc. West Sacramento, CA $2,380,120.00 All American Asphalt Corona, CA $2,400,000.00 The bid from American Asphalt South was reviewed and determined to be the lowest responsive bid. All the required forms have been submitted. American Asphalt South, Inc. has successfully completed many slurry seal projects for the City of Palm Desert, and Public Works staff has an excellent working relationship with the contractor. Fiscal Analysis The 2021 Slurry Seal Project is part of the City’s Street Maintenance Program and is included in the approved Capital Improvement Project (CIP) List for Fiscal Year 2021-22. There is no fiscal impact beyond the contract amount. Project Year Funding Source Description Budget for this Project* Total Cost 2021 Slurry Seal Project FY 21/22 Fund 211 Repair and Maintenance $2,000,000 $2,458,759 FY 21/22 Fund 213 $458,759 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Veronica Chavez Veronica Chavez Finance Director Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman, City Manager: L. Todd Hileman CONTRACTOR: American Asphalt South, Inc. 19792 El Rivino Road Riverside, CA 92509 ATTACHMENTS: Contractor’s Bid Agreement and Bonds Vicinity Map Page 262 City of Palm Desert 2021 Slurry Seal Project (22-06), bidding on 02/25/2022 2:00 PM (PST) Page 1 of 4 Printed 02/25/2022 PlanetBids, Inc.Page 263 City of Palm Desert 2021 Slurry Seal Project (22-06), bidding on 02/25/2022 2:00 PM (PST) Page 2 of 4 Printed 02/25/2022 PlanetBids, Inc.Page 264 City of Palm Desert 2021 Slurry Seal Project (22-06), bidding on 02/25/2022 2:00 PM (PST) Page 3 of 4 Printed 02/25/2022 PlanetBids, Inc.Page 265 City of Palm Desert 2021 Slurry Seal Project (22-06), bidding on 02/25/2022 2:00 PM (PST) Page 4 of 4 Printed 02/25/2022 PlanetBids, Inc.Page 266 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -1- CONTRACT FOR CONSTRUCTION This Contract for Construction (“Contract”), No. C42450, is made and entered into this 24th day of March, 2022, by and between City of Palm Desert, a Charter City and 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, sometimes hereinafter called the “City” and American Asphalt South, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: 2021 SLURRY SEAL PROJECT PROJECT NO. 751-21 The general items of work to be done hereunder consist of mobilization; application of rubberized crack seal material; installation of asphalt crack-fill material; application of rubberized slurry seal; installation of thermoplastic striping, pavement markings, and pavement markers; and installation of traffic control devices required during construction of the improvements and all appurtenant work as required by the plans and specifications. Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 60 Calendar Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Two million two hundred thirty-five thousand two hundred thirty-five and no cents Dollars ($2,235,235.00). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. Page 267 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -2- LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000.00 for each and every Day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook” or “Standard Specifications”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders Permits Page 268 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -3- Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. INDEMNIFICATION AND INSURANCE Indemnification To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; Page 269 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -4- Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees 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. The only limitations on this provision shall be those imposed by Civil Code section 2782. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. Insurance Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 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 $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 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 Contract, 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. 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, Page 270 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -5- automotive 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 in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; Pay on behalf of wording as opposed to reimbursement; and Concurrency of effective dates with primary policies; and Policies shall “follow form” to the underlying primary policies; and Insureds under primary policies shall also be insureds under the umbrella or excess policies. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees and volunteers. Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites. Other Provisions or Requirements 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. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 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, its agents, representatives, employees or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to Page 271 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -6- completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 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. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, 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 Contract. 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. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees and volunteers, 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, agents, officials, employees and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. 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. 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 Page 272 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -7- 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 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. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10 07 04) and completed operations (i.e. ISO Form CG 20 37 07 04) of Contractor. 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. 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. 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. City’s Right to Revise Requirements. 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 substantial additional 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. 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. Page 273 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -8- 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 Contract, and that involve or may involve coverage under any of the required liability policies. Additional Insurance. Contractor 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. 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. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 274 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -9- IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF PALM DESERT By: L. TODD HILEMAN, CITY MANAGER ATTEST: By: ANTHONY J. MEJIA, MMC City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney AMERICAN ASPHALT SOUTH, INC. By: Jeff Petty, President By: Tim Griffin, Secretary ____________________________________ Contractor’s License Number and Classification ____________________________________ DIR Registration Number (CONTRACTOR’S SIGNATURES MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED, IF APPLICABLE) END OF CONTRACT Page 275 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -10- 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 276 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -11- BOND FORMS Performance Bond KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert, a Charter City and 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, (hereinafter referred to as the “City”) has awarded to American Asphalt South, Inc., (hereinafter referred to as the “Contractor”) an agreement for Contract No. C42450, (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 January 31, 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, American Asphalt South, 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 Two million two hundred thirty-five thousand two hundred thirty-five and no cents DOLLARS, ($2,235,235.00), 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 (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, 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 part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by the City in enforcing such obligation. 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 the 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. 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 Page 277 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -12- 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: Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or Obtain a bid or bids for completing the Project in accordance with all terms and 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. Permit the City to complete the Project in any manner consistent with California 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. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 278 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -13- 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 The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________. (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) Page 279 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -14- 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 NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 280 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -15- 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 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. END OF PERFORMANCE BOND Page 281 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -16- Payment Bond (Labor and Materials). KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Palm Desert, a Charter City and municipal corporation organized and operating under the laws of the State of California (hereinafter designated as the “City”), by action taken or a resolution passed March 24, 2022, has awarded to American Asphalt South, Inc. hereinafter designated as the “Principal,” a contract for the work described as follows: Contract No. C42450 (the “Project”); and WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated January 31, 2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein 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 Two million two hundred thirty-five thousand two hundred thirty-five and no cents Dollars ($2,235,235.00) 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 Civil Code Section 9100, 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 Revenue and Taxation Code Section 18663, 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 the 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 Civil Code Section 9100 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 Page 282 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -17- 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 relating to any scheme or work of improvement herein above described, nor by any rescission or attempted 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 the 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 Civil Code Section 9100, and has not been paid the full amount of his claim. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract 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 Contract, including but not limited to, the provisions of Sections 2819 and 2845 of the California Civil Code. 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 Page 283 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -18- 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 NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 284 CONTRACT NO. C42450 2021 Slurry Seal Project 72500.00001\32656428.1 -19- 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 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. END OF PAYMENT BOND Page 285 Page 286 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT DATE: March 24, 2022 PREPARED BY: Eric Ceja, Deputy Director of Development Services REQUEST: Consideration to require that a Specific Plan be prepared for the Palm Desert Mall site. Recommendation By Minute Motion, require that a Specific Plan be prepared for the Palm Desert Mall location. Strategic Plan • Land Use, Housing & Open Space – Priority 1: “Enhance Palm Desert as a first- class destination for premier shopping and national retail businesses.” • Land Use, Housing & Open Space – Priority 5: Utilize progressive land use policies and standards to support ongoing and future needs.” Background Analysis The Palm Desert Mall location, bounded by Highway 111 to the south, Monterey Avenue to the east, and Town Center Way to the west, began operations in the early 1980s. In 2018, Unibail-Rodamco Westfield (URW) acquired the site and turned the property over to a receiver, Jones Lang LaSalle (JLL), for sale in 2021. Since the property has been in receivership, the City has taken a proactive approach by engaging with Coldwell Banker Richard Ellis (CBRE) for real estate consulting services. CBRE primarily focused on communicating with existing tenants and property owners, as well as advising the City on potential next steps. Through CBRE, the City staff has been informed that owner of the mall recently hired a special servicer to dispose of the asset. Staff has not been able to secure contact with the servicer to express our desire coordinate a long term plan for the mall’s redevelopment. Staff has also been informed that owner of the Sears building (Seritage) is interested in selling the site for the highest and best use, which may include the repurposing of the site for residential use. In order to protect the City’s long-term interests and vision for the site, staff recommends implementing a specific plan to ensure there is coordinated effort to address future land uses and circulation for the entire site. Page 287 March 24, 2022 – Staff Report Specific Plan for Mall Site Page 2 of 2 W:\Staff Reports - Shared 2\Staff Reports 2022-0324\5 - Clerk's Office - 2022-0324\18 PD Mall Site Specific Plan Req\Council Report - PD Mall Site Specific Plan Req..doc Specific Plan Staff recommends that the City Council require a Specific Plan for the mall’s properties prior to consideration of any future development proposals within the site. Based on the multiple ownership interests and shared Codes, Covenants, and Restrictions (CCRs), a coordinated and cohesive development plan is necessary prior to entertaining individual proposals that would require zoning and/or General Plan Amendments. A Specific Plan intends to identify the desired land uses, engage property owners, tenants, and the public, and provide environmental clearances through the California Environmental Quality Act (CEQA) to establish a plan for redevelopment of the mall properties. A Specific Plan process that engages these stakeholders and identifies key challenges and opportunities for the redevelopment of the site will ensure an orderly, coordinated, and compatible development of the mall’s properties. The Specific Plan requirement is supported by Palm Desert Municipal Code (PDMC) Section 25.78.080, which allows the City Council to require Specific Plans in certain zoning districts, including, but not limited to, the Planned Regional Commercial (PC3) zoning district. In doing so, the City Council is ensuring that the Specific Plan requirement is consistent with the General Plan, the Publics Welfare, Land Use Compatibility, Property Suitability, and CEQA. CEQA The requirement to include a Specific Plan for the orderly development of the mall site will not create any environmental im pacts at the site. It can be expected that a CEQA document, which analyzes the Specific Plan, will be prepared to evaluate any potential environmental impacts. 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 Veronica Chavez Veronica Chavez Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman Page 288 CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT CITY COUNCIL PUBLIC HEARING MEMORANDUM To: Honorable Mayor and Members of the City Council Todd Hileman, City Manager Robert Hargreaves, City Attorney From: Rosie Lua, Planning Manager Date: March 24, 2022 Subject: City Council Ordinance No. 1378, approving Zoning Ordinance Amendment 22-0001 to modify Palm Desert Municipal Code Section 25.34.060 regarding Time-Share Projects. Staff requests a continuance from the March 24, 2022 public hearing of the Zoning Ordinance Amendment regarding Time-Share Projects to the City Council meeting of April 28, 2022. This continuance will allow staff to consult with the City’s Short-Term Rental (STR) subcommittee to discuss the proposed ordinance. Page 289 [This page has intentionally been left blank.] Page 290