HomeMy WebLinkAboutAgenda Package - Palm Desert City Council - Regular Meeting_Apr11_2024
PALM DESERT CITY COUNCIL
MEETING AGENDA
Thursday, April 11, 2024
4:00 p.m.
Council Chamber, City Hall
73-510 Fred Waring Drive
Palm Desert, California
This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert
Redevelopment Agency, and the Palm Desert Housing Authority. Pursuant to Assembly Bill 2449, this
meeting may be conducted as a hybrid meeting allowing public access via teleconference or in
person, and up to two Councilmembers may attend remotely.
WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website:
www.palmdesert.gov under the “Council Agenda” link at the top of the homepage, or on
the City’s YouTube Channel.
OPTIONS FOR PARTICIPATING IN THIS MEETING:
If unable to attend the meeting in person, you may choose from the following options:
OPTION 1: VIA EMAIL
Send your comments by email to: CouncilMeetingComments@palmdesert.gov.
Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the
record and distributed to the City Council. Emails will not be read aloud at the meeting.
OPTION 2: LIVE VIA ZOOM
Access via palmdesert.gov/zoom or zoom.us, click “Join Meeting” and enter Webinar ID 833
6744 9572.
1.
OPTION 3: LIVE VIA TELEPHONE
(213) 338-8477 and enter Meeting ID 833 6744 9572 followed by #.1.
Indicate that you are a participant by pressing # to continue.2.
During the meeting, press *9 to add yourself to the queue and wait for the Mayor or City
Clerk to announce your name/phone number. Press *6 to unmute your line and limit your
comments to three minutes.
3.
Pages
1.CALL TO ORDER - 4:00 P.M.
2.ROLL CALL
3.PLEDGE OF ALLEGIANCE
Councilmember Trubee
4.INSPIRATION
Mayor Quintanilla
5.AWARDS, PRESENTATIONS, AND APPOINTMENTS
6.CITY MANAGER COMMENTS
7.MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION
8.NONAGENDA PUBLIC COMMENTS
This time has been set aside for the public to address the City Council on issues
that are not on the agenda for up to three minutes. Speakers may utilize one of
the three options listed on the first page of the agenda. Because the Brown Act
does not allow the City Council to act on items not listed on the agenda,
members may briefly respond or refer the matter to staff for a report and
recommendation at a future meeting.
9.CONSENT CALENDAR
All matters listed on the Consent Calendar are considered routine and may be
approved by one motion. The public may comment on any items on the Consent
Agenda within the three-minute time limit. Individual items may be removed by
the City Council for a separate discussion.
RECOMMENDATION:
To approve the consent calendar as presented.
9.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING
AUTHORITY MINUTES
9
RECOMMENDATION:
Approve the Minutes of March 28, 2024.
9.b APPROVAL OF WARRANT REGISTERS 21
RECOMMENDATION:
Approve the warrant registers issued for the period 3/20/2024 to 3/29/2024.
9.c ADOPTION OF A RESOLUTION ADOPTING A POLICY FOR
CEREMONIAL PROCLAMATIONS AND RECOGNITIONS
49
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A POLICY FOR
CEREMONIAL PROCLAMATIONS AND RECOGNITIONS AND
RESCINDING RESOLUTION NO. 2022-25.”
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9.d ACCEPTANCE OF A RESIGNATION FROM THE MARKETING
COMMITTEE AND PARKS AND RECREATION COMMITTEE
55
RECOMMENDATION:
With regret, accept the resignation of Jan Hulahan from the
Marketing Committee.
1.
With regret, accept the resignation of Gerald Dawson from the
Parks & Recreation Committee.
2.
9.e APPOINTMENTS TO THE BUILDING BOARD OF APPEALS 57
RECOMMENDATION:
Appoint John Greenwood, Lindsey Holt, and Nicholas Latkovic to the
Building Board of Appeals for terms ending June 30, 2024.
9.f RATIFY LETTERS OF SUPPORT FOR THE CALIFORNIA STATE
UNIVERSITY, SAN BERNARDINO, AND CITY OF INDIAN WELLS
COMMUNITY PROJECT FUNDING REQUESTS
59
RECOMMENDATION:
Ratify issuance of a letter of support for the California State
University, San Bernardino (CSUSB), Community Project Funding
request for the Artificial Intelligence and Virtual Reality Research
and Retraining Center and Nursing Street Medicine Program.
1.
Ratify issuance of a letter of support for the City of Indian Wells’
Community Project Funding request to rebuilding the Emergency
Operation Center.
2.
9.g REQUEST FOR ADOPTION OF MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT
EMPLOYEE ORGANIZATION EFFECTIVE MARCH 25, 2024, THROUGH
JUNE 30, 2026
67
RECOMMENDATION:
Approve the Memorandum of Understanding (MOU) between the
City of Palm Desert and the Palm Desert Employee Organization
(PDEO) effective March 25, 2024, through June 30, 2026.
1.
Authorize the City Manager to take actions to implement the MOU
between the City of Palm Desert and PDEO.
2.
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9.h APPROVE A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY
OF PALM DESERT AND GLEN M. KAMMERER AND SHERILL R.
KAMMERER FOR AN APPROXIMATELY 1.01-ACRE SITE ON MOUNTAIN
VIEW, ASSESSOR’S PARCEL NO. 637-300-023
71
RECOMMENDATION:
Approve Purchase and Sale Agreement in substantial form for the
acquisition of APN 637-300-023.
1.
Authorize the Director of Finance to appropriate $1,640,359 from
undesignated General Fund Reserve monies to Account No.
1104159-4219100 for the Mountain View Flood Infrastructure
Improvements Project.
2.
Authorize the City Attorney to make any necessary nonmonetary
changes to agreements.
3.
Authorize the City Manager to execute all documents necessary to
effectuate this action.
4.
9.i APPROVE CHANGE ORDERS/AMENDMENT TO CONTRACTS NO.
C44620A-E FOR ON-CALL FACILITIES REPAIRS & IMPROVEMENTS IN
THE AMOUNT OF $1,500,000 (PROJECT NO. MFA00009)
95
RECOMMENDATION:
Approve the increase of the annual aggregate amount to Contracts
C44620A-E from $3,000,000 to $4,500,0000 for On-call Facilities
Repairs & Improvements.
1.
Authorize the City Manager to review and approve up to two, one-
year extensions per vendor contract for an aggregated amount not
to exceed $4,500,000.
2.
Authorize the City Manager or designee to review and approve
change orders for unanticipated conditions per Section 3.30.170
Section A of Ordinance No. 1335.
3.
Authorize the City Manager to execute the change orders and
amendments.
4.
9.j APPROVE AMENDMENT NO. 7 TO CONTRACT NO. C36620 WITH YMCA
FOR MANAGEMENT OF THE PALM DESERT AQUATIC CENTER
107
RECOMMENDATION:
Approve Amendment No. 7 to update the scope of work for
Contract No. C36620 with the Family Young Men’s Christian
Association of the Desert (“YMCA”), of Palm Desert, California.
1.
Authorize the City Attorney to make any necessary nonmonetary
changes to the amendment.
2.
Authorize the City Manager to execute Contract No. C36627,
Amendment No. 7 to Contract No. C36620.
3.
10.ACTION CALENDAR
The public may comment on individual Action Items within the three-minute time
limit. Speakers may utilize one of the three options listed on the first page of the
agenda.
City Council Meeting
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10.a INTRODUCE AN ORDINANCE RELATIVE TO THE PURCHASING
SYSTEM AND PUBLIC WORKS CONTRACTS AND MAKING FINDINGS
UNDER CEQA
223
RECOMMENDATION:
Introduce an Ordinance entitled, “AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REPLACING
CHAPTER 3.30 IN ITS ENTIRETY AND RESCINDING ORDINANCES NO.
224, 423, 586, 927, 928, 986, 1162, 1166, 1204, 1229, 1276, 1317, 1335
AND 1392 RELATIVE TO THE PURCHASING SYSTEM AND PUBLIC
WORKS CONTRACTS AND MAKING FINDINGS UNDER CEQA.”
City Council Meeting
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10.b SECOND AMENDED AND RESTATED DDLA, RELATED
RESOLUTIONS, LOANS IN THE AMOUNT OF $1,965,539 AND
$4,789,461 FROM THE AUTHORITY, AND ACTIONS RELATED TO
CONVEYANCE OF THE PARCELS IDENTIFIED AS APN 694-120-028
AND A PORTION OF 694-120-029 FOR AFFORDABLE HOUSING
251
RECOMMENDATION:
City Council: Adopt a Resolution entitled, “A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, APPROVING A SECOND “AMENDED AND
RESTATED DISPOSITION, DEVELOPMENT AND LOAN
AGREEMENT” REGARDING “PALM VILLAS AT MILLENIUM”
AMONG THE CITY, AS SELLER, THE PALM DESERT HOUSING
AUTHORITY, AS LENDER, AND PALM COMMUNITIES, A
CALIFORNIA LIMITED COMPANY, AS PURCHASER/
BORROWER/ DEVELOPER, IN CONNECTION WITH
APPROXIMATELY 10.49 ACRES OF PROPERTY OWNED BY
THE CITY, AND TAKING RELATED ACTIONS.”
1.
Housing Authority: Adopt a Resolution entitled, “A RESOLUTION
OF THE PALM DESERT HOUSING AUTHORITY APPROVING A
SECOND “AMENDED AND RESTATED DISPOSITION,
DEVELOPMENT AND LOAN AGREEMENT” REGARDING “PALM
VILLAS AT MILLENIUM” AMONG THE AUTHORITY, AS
LENDER, THE CITY OF PALM DESERT, AS SELLER, AND
PALM COMMUNITIES, A CALIFORNIA LIMITED COMPANY, AS
PURCHASER/ BORROWER/ DEVELOPER, IN CONNECTION
WITH APPROXIMATELY 10.49 ACRES OF PROPERTY OWNED
BY THE CITY, APPROPRIATING FUNDS IN CONNECTION
THEREWITH, AND TAKING RELATED ACTIONS.”
2.
Authorize the Authority to make two loans to the Developer for the
purchase of the Property and construction of the Project
($1,965,539 for Phase I and $4,789,461 for Phase II), to be repaid
from a percentage of residual receipts (i.e., net income) from the
Project over the term of the loans, with any accrued interest and
unpaid principal coming due 55 years from the completion of the
Project, with such loans being secured by a subordinate deed of
trust on the Project.
3.
Authorize the Director of Finance to appropriate $6,755,000 from
Unobligated Housing Asset Fund balance to the appropriate
budget line item.
4.
Authorize the Director of Finance to designate the proceeds of the
sale of the City-owned property for the purpose of future affordable
housing.
5.
Authorize Mayor/Chairman, staff, and legal counsel to negotiate,
execute and record agreements and necessary documents to
effectuate the resolutions, including the conveyance of the
Property, the funding commitments, and related actions for the
Project as set forth in the Second Amended and Restated DDLA.
6.
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10.c ADOPT THE PALM DESERT BROADBAND FEASIBILITY AND MASTER
PLAN STUDY AND APPROVE RELATED AMENDMENT
559
RECOMMENDATION:
Adopt the Palm Desert Broadband Feasibility and Master Plan
Study.
1.
Approve Amendment 10 to Contract No. C41690 with HR Green in
the amount of $19,884 for management of Request for Proposals
(RFP) and grant processes related to broadband.
2.
Direct staff to pursue grant funding for implementation of the
adopted Broadband Master Plan.
3.
Direct staff to release a Request for Proposals (RFP) to identify
any partner agencies to execute the adopted Broadband Master
Plan Study and middle-mile network.
4.
10.d ADOPTION OF A RESOLUTION ESTABLISHING PROCEDURES FOR
THE APPOINTMENT OF THE MAYOR AND MAYOR PRO TEM
681
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING
PROCEDURES FOR THE APPOINTMENT OF THE MAYOR AND
MAYOR PRO TEM AND RESCINDING RESOLUTION NO. 2021-61.”
11.PUBLIC HEARINGS
The public may comment on individual Public Hearing Items within the three-
minute time limit. The applicant or appellant will be provided up to five minutes
to make their presentation. Speakers may utilize one of the three options listed
on the first page of this agenda.
11.a INTRODUCTION OF AN ORDINANCE TO ADOPT A ZONING
ORDINANCE AMENDMENT TO IMPLEMENT RESIDENTIAL AND
MIXED-USE OBJECTIVE DESIGN STANDARDS AND MAKING A
FINDING OF EXEMPTION UNDER CEQA
687
RECOMMENDATION:
Introduction of an Ordinance entitled, “AN ORDINANCE OF THE CITY
COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING
THE PALM DESERT MUNICIPAL CODE TO ADD CHAPTER 25.42 –
MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
AND AMENDING OTHER CHAPTERS OF THE ZONING ORDINANCE,
AND MAKING A FINDING OF EXEMPTION UNDER CEQA”
12.INFORMATION ITEMS
13.ADJOURNMENT
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14.PUBLIC NOTICES
Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the
designated office for inspection of records in connection with this meeting is the
Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive,
Palm Desert. Staff reports for all agenda items considered in open session, and
documents provided to a majority of the legislative bodies are available for
public inspection at City Hall and on the City’s website at www.palmdesert.gov
by clicking “Council Agenda” at the top of the page.
Americans with Disabilities Act: It is the intention of the City of Palm Desert to
comply with the Americans with Disabilities Act (ADA) in all respects. If, as an
attendee or a participant at this meeting, or in meetings on a regular basis, you
will need special assistance beyond what is normally provided, the city will
attempt to accommodate you in every reasonable manner. Please contact the
Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to
inform us of your needs and to determine if accommodation is feasible.
AFFIDAVIT OF POSTING
I, Níamh M. Ortega, Assistant 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 and City website www.palmdesert.gov no less than 72
hours prior to the meeting.
/S/ Níamh M. Ortega
Assistant City Clerk
City Council Meeting
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1
Study Session of the Palm Desert City Council (CC), Successor Agency to the Palm
Desert Redevelopment Agency (SARDA), and Housing Authority (HA)
Minutes
March 28, 2024, 3:00 p.m.
Present: Mayor Pro Tem Jan Harnik, Councilmember Kathleen Kelly,
Councilmember Gina Nestande, Councilmember Evan Trubee,
Mayor Karina Quintanilla
Pursuant to Assembly Bill 2449, this meeting was conducted by teleconference and there was
in-person public access to the meeting location.
1. CALL TO ORDER - STUDY SESSION
A Study Session of the Palm Desert City Council was called to order by Mayor
Quintanilla on Thursday, March 28, 2024, at 3:05 p.m. in the Council Chamber, City
Hall, located at 73-510 Fred Waring Drive, Palm Desert, California.
2. STUDY SESSION TOPICS
2.a REQUEST FOR FEEDBACK ON THE FORMATION OF A LIBRARY
ADVISORY COMMITTEE AND A FOUNDATION
Director of Library Services Shaffer narrated a PowerPoint presentation and
responded to City Council inquiries.
2.b STUDY SESSION: UPDATE ON ANIMAL SERVICES CONTRACT WITH
RIVERSIDE COUNTY ANIMAL SERVICES
Development Services Director Cannone and Code Compliance Supervisor
Rodriguez narrated a PowerPoint presentation and responded to City Council
inquiries.
3. ADJOURNMENT
The City Council adjourned the Study Session at 3:50 p.m.
Respectfully submitted,
_________________________
Níamh M. Ortega
Assistant City Clerk/Assistant Secretary
_________________________
Anthony J. Mejia, MMC
City Clerk/Secretary
Page 9 of 855
Page 10 of 855
Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment
Agency, and Housing Authority
Regular Meeting Minutes
March 28, 2024, 3:30 p.m.
Present: Mayor Pro Tem Jan Harnik, Councilmember Kathleen Kelly,
Councilmember Gina Nestande, Councilmember Evan Trubee,
and Mayor Karina Quintanilla
1. CALL TO ORDER - CLOSED SESSION - 3:30 P.M.
A Regular Meeting of the Palm Desert City Council was called to order by Mayor
Quintanilla on Thursday, March 28, 2024, at 3:50 p.m. in the Council Chamber, City Hall,
located at 73-510 Fred Waring Drive, Palm Desert, California.
2. PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
None.
3. RECESS TO CLOSED SESSION
Mayor Quintanilla adjourned to Closed Session at 3:51 p.m.
4. CLOSED SESSION AGENDA
4.a Closed Session Meeting Minutes: March 14, 2024
4.b Conference with Real Property Negotiations pursuant to Government Code
Section 54956.8
4.b.1 Property Description: 73510 Fred Waring Drive and 74725 Hovley
Lane E
Agency: City of Palm Desert
City Negotiator: Todd Hileman/Chris Escobedo/Eric Ceja
Negotiating Parties: Crown Castle
Under Negotiation: Price and Terms
4.b.2 Property Description: 73710 Fred Waring Drive; 73520 Fred Waring
Drive; and 44400 Town Center Way
Agency: City of Palm Desert
City Negotiator: Todd Hileman/Chris Escobedo/Eric Ceja
Negotiating Parties: N/A
Under Negotiation: Price and Terms
4.c Conference with Labor Negotiators pursuant to Government Code Section
54957.6
Agency designated representatives: Todd Hileman/Chris Escobedo/Andrea Staehle
Employee organization: Palm Desert Employees Organization
Page 11 of 855
Palm Desert City Council Meeting Minutes
March 28, 2024
2
5. ROLL CALL - REGULAR MEETING - 4:00 P.M.
Following the closed session, the Mayor Quintanilla resumed the regular City Council
meeting at 4:32 p.m.
6. PLEDGE OF ALLEGIANCE
Councilmember Kelly led the Pledge of Allegiance.
7. INSPIRATION
Mayor Pro Tem Harnik provided words of inspiration.
8. REPORT OF CLOSED SESSION
City Attorney Shah stated that no reportable actions were taken by the City Council.
9. AWARDS, PRESENTATIONS, AND APPOINTMENTS
Felipe Ortiz, representing Assemblyman Greg Wallis, presented a proclamation to the
City of Palm Desert recognizing its achievement as the first city in the State of California
to become a Certified Autism Center.
10. CITY MANAGER COMMENTS
None.
11 . MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION
Councilmembers reported on their attendance at various meetings and events.
Councilmember Kelly congratulated the Joslyn Center for its efforts to become a
Certified Autism Center, and thanked the Slaughter family for their generous donation of
10 acres of open land in the foothills of Palm Desert.
12. NON-AGENDA PUBLIC COMMENTS
Brad Anderson, Rancho Mirage resident, suggested that public comment be taken at
the study session, closed session should be at the end of regular session.
Michael Nowacki, Palm Desert resident, urged the City Council to direct the City
Manager to issue a "cease and desist" letter for non -compliance with a bingo license.
13. CONSENT CALENDAR
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
To approve the consent calendar excluding Items 13.e and 13.f.
Motion Carried (5 to 0)
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Palm Desert City Council Meeting Minutes
March 28, 2024
3
13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING
AUTHORITY MINUTES
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
Approve the Minutes of March 14, 2024.
Motion Carried (5 to 0)
13.b APPROVAL OF WARRANT REGISTERS
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
Approve the warrant registers issued for the period 03/07/2024 to 03 /20/2024.
Motion Carried (5 to 0)
13.c ADOPTION OF ORDINANCE NO. 1409 A NOTICE OF EXEMPTION UNDER
CEQA AND APPROVE CHANGE OF ZONE 24-0001 TO CHANGE ZONING
DESIGNATION OF THE PROPERTIES LOCATED AT 73600 ALESSANDRO
DRIVE FROM DOWNTOWN EDGE TRANSITION OVERLAY (DE-O) TO
DOWNTOWN EDGE (DE)
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
Adopt Ordinance No. 1409 entitled “AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A NOTICE OF
EXEMPTION PURSUANT TO THE STATE OF CALIFORNIA ENVIRONMENTAL
QUALITY ACT (CEQA) AND APPROVING A CHANGE OF ZONE FROM DE-O
TO DE FOR THE PROPERTIES LOCATED AT 73600 ALESSANDRO DRIVE
(ASSESSOR’S PARCEL NUMBERS 627-153-018, AND 627-153-019) CASE
NO. CZ24-0001”
Motion Carried (5 to 0)
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Palm Desert City Council Meeting Minutes
March 28, 2024
4
13.d APPROVE CHANGE ORDER NO. 3 INCREASING CONTRACT NO. C41880
WITH MARIPOSA LANDSCAPES, INC., OF IRWINDALE, CALIFORNIA, IN AN
ANNUAL AMOUNT NOT TO EXCEED $150,000 AND ADD MAINTENANCE
SERVICES TO NON-LANDSCAPED AREAS (PROJECT NO. MLS00008)
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
1. Approve Change Order No. 3 to increase Contract No. C41880 with
Mariposa Landscapes, Inc. of Irwindale, California, in an annual amount of
$150,000 and add maintenance services to non-landscaped areas for a
total annual contract amount of $661,408.56.
2. Increase irrigation, plant, and related extra work and services to an annual
amount of $125,000.
3. Authorize the Finance Director to appropriate prorated funds in the
amount of $75,000 from Unobligated General Fund to Account No.
1104310-4332000, R/M Streets for Fiscal Year 2023/24.
4. Authorize the City Manager to approve change orders and amendments
associated with this contract based on staff’s recommendations.
5. Authorize the City Manager or designee to execute said change order.
Motion Carried (5 to 0)
13.g APPROVE CULTURAL ARTS COMMITTEE FISCAL YEAR 2024/25 WORK
PLAN
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
Approve the Cultural Arts Committee’s Fiscal Year 2024/25 Work Plan.
Motion Carried (5 to 0)
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Palm Desert City Council Meeting Minutes
March 28, 2024
5
13.h APPROVE A FINAL SETTLEMENT AGREEMENT WITH THE MILLENNIUM
PALM DESERT HOMEOWNERS’ ASSOCIATION (GENESIS HOA) TO
INSTALL PERIMETER LANDSCAPING AS REQUIRED IN THE ORIGINAL
SUBDIVISION LANDSCAPE PLAN
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
1. Approve a Final Settlement Agreement No. C47330 with the Millennium
Palm Desert HOA for a one-time reimbursement of the installation of 33
perimeter trees in an amount not to exceed $20,265.
2. Authorize the City Attorney to make any necessary non -monetary changes
to the agreement.
3. Authorize the City Manager to execute the agreement and any documents
necessary to effectuate the actions taken herewith.
Motion Carried (5 to 0)
13.i REJECT THE PROPOSAL TO PURCHASE A DIESEL STREET SWEEPER
AND APPROVE THE PROPOSAL TO PURCHASE A CNG STREET SWEEPER
FROM PB LOADER CORPORATION TO IMPROVE CITYWIDE ROADWAY
AND PARKING LOT MAINTENANCE
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
1. Reject previous request to purchase an Elgin Broom Bear Diesel Street
Sweeper from Haaker Equipment Company of La Verne, California.
2. Authorize the purchase of a CNG Powered Street Chassis with XBroom
(Street Sweeper) from PB Loader Corporation of Fresno, California, in the
amount of $624,527.35.
3. Authorize the Director of Finance to set aside a contingency of $25,000 for
any unforeseen fees and ancillary equipment.
4. Authorize the Finance Director to appropriate additional funds in the
amount of $170,333.08 from unobligated Equipment Replacement Fund
Balance to Account No. 5304310-4403000.
5. Authorize City Manager to approve the use of the contingency and any
documents necessary to effectuate actions taken herewith.
Motion Carried (5 to 0)
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Palm Desert City Council Meeting Minutes
March 28, 2024
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13.j ADOPT RESOLUTION NO. 2024-010 AUTHORIZING DESTRUCTION OF
OBSOLETE RECORDS FROM THE FINANCE DEPARTMENT
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
Adopt Resolution No. 2024-010 entitled, "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, SETTING FORTH
ITS FINDINGS AND AUTHORIZING THE DESTRUCTION OF PAPER
RECORDS FROM THE FINANCE DEPARTMENT, AS INDICATED ON THE
RECORDS RETENTION SCHEDULE (ADOPTED DECEMBER 15, 2022).
RECORDS FROM 1988-2018 (EXHIBIT A)"
Motion Carried (5 to 0)
13.k APPROPRIATE FUNDS FOR NEW LIBRARY FACILITY PROJECT AND
AWARD ARCHITECT CONTRACT NO. C47340 TO RICHÄRD KENNEDY
ARCHITECTS FOR CONCEPTUAL DESIGN SERVICES (PROJECT NO.
CFA00027)
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
1. Award Contract No. C47340 to Richärd Kennedy Architects for
Conceptual Design of New Library Facility in an amount not to exceed
$514,865 ($499,865 Basic Services + $15,000 reimbursables).
2. Authorize the Director of Finance to set aside a contingency amount of
$128,000 for unforeseen circumstances.
3. Authorize the Director of Finance to set aside $157,135 for pre-
construction services by other consultants still to be determined.
4. Authorize the Director of Finance to appropriate funds in the amount of
$800,000 from Uncommitted General Fund Reserves to Account Number
1104199-4501000 Inter-Fund Transfers Out.
5. Authorize the Director of Finance to transfer funds to the Library Transfer-
In Account No. 4520000-391000 and appropriate expenditure of funds to
Capital Projects Account No. 4524136-4400100 for this purpose.
6. Authorize the City Manager to review and approve written contract change
orders requests per Section 3.30.170 of the Palm Desert Municipal Code.
7. Authorize the City Attorney to make any necessary non -monetary changes
to the agreement.
8. Authorize the City Manager to execute the agreement and any documents
necessary to effectuate the actions taken herewith.
Motion Carried (5 to 0)
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Palm Desert City Council Meeting Minutes
March 28, 2024
7
13.l AWARD CONTRACT NO. C47350 TO CAL-STRIPE, INC., FOR ON-CALL
CITYWIDE STREET AND BIKE LANE STRIPING IMPROVEMENTS IN AN
ANNUAL AMOUNT NOT TO EXCEED $450,000 (MST00002)
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
1. Award a 27-month Contract No. C47350 to Cal-Stripe, Inc. for On-call
Citywide Street and Bike Lane Striping Improvements in an annual
amount not to exceed $450,000, with the option of two, one -year
extensions.
2. Authorize the City Manager to review and approve written contract
amendment and change order requests for unanticipated conditions per
Section 3.30.170 of the Palm Desert Municipal Code.
3. Authorize the City Attorney to make any necessary non -monetary changes
to the agreement.
4. Authorize the City Manager to execute the agreement and any documents
necessary to effectuate the actions taken herewith.
Motion Carried (5 to 0)
CONSENT ITEMS HELD OVER
13.e AUTHORIZE AN AMENDMENT TO CONTRACT NO. A43790 WITH FG
CREATIVE INCREASING COMPENSATION FOR PALM DESERT AQUATIC
CENTER MARKETING SERVICES
Public Affairs Manager Soule responded to City Council inquiries.
Motion by: Mayor Pro Tem Harnik
Seconded by: Councilmember Kelly
1. Authorize an amendment to Contract No. A43790 with FG Creative for
Palm Desert Aquatic Center marketing services to increase compensation
in the amount of $7,700.
2. Authorize the City Attorney to make any necessary nonmonetary changes
to the agreement.
3. Authorize the City Manager to execute said agreement on behalf of the
City.
Motion Carried (5 to 0)
Page 17 of 855
Palm Desert City Council Meeting Minutes
March 28, 2024
8
13.f AUTHORIZE AN AMENDMENT TO CONTRACT NO. C43370 TO INCREASE
THE CITY'S CONTRACT WITH FG CREATIVE FOR EL PASEO PARKING &
BUSINESS IMPROVEMENT DISTRICT MARKETING SERVICES
Motion by: Mayor Pro Tem Harnik
Seconded by: Councilmember Kelly
1. Authorize an amendment to Contract C43370 with FG Creative in the
amount of $15,000.
2. Authorize the City Attorney to make any necessary nonmonetary changes
to the agreement.
3. Authorize the City Manager to execute said agreement on behalf of the
City.
Motion Carried (5 to 0)
14. ACTION CALENDAR
14.a APPROVE AN EMERGENCY GRANT PROGRAM IN AN AGGREGATE
AMOUNT NOT TO EXCEED $1,500,000 FOR COMMERCIAL PROPERTY
OWNERS AND HOMEOWNERS ASSOCIATIONS LOCATED ALONG
INTERSTATE 10 AND AFFECTED BY TROPICAL STORM HILARY
Public Works Deputy Director Chavez narrated a PowerPoint presentation and
responded to City Council inquiries.
Motion by: Councilmember Nestande
Seconded by: Mayor Pro Tem Harnik
1. Approve emergency grant program in an aggregate amount not to exceed
$1,500,000 for commercial property owners and homeowners
associations located along Interstate 10 and impacted by Tropical Storm
Hilary.
2. Authorize the Finance Director to appropriate funds in the amount of
$1,500,000 from General Fund Emergency Reserves to Account No.
1104159-4219100.
3. Authorize the City Attorney to prepare all necessary documents and make
any non-monetary changes to the agreement.
4. Authorize City Manager to execute agreements and any documents
necessary to effectuate actions taken herewith.
Motion Carried (5 to 0)
Page 18 of 855
Palm Desert City Council Meeting Minutes
March 28, 2024
9
14.b APPROVE REPLACEMENT OF A BRONZE PLAQUE AT THE DESERT
HOLOCAUST MEMORIAL
Economic Development Deputy Director Lawrence presented a staff report and
responded to City Council inquiries.
Motion by: Councilmember Kelly
Seconded by: Councilmember Nestande
Approve replacement of a bronze plaque at the Desert Holocaust Memorial.
Motion Carried (5 to 0)
14.c APPROVE PLACEMENT OF PEACE POLE AT THE COMMUNITY ROSE
GARDEN IN CIVIC CENTER PARK
Economic Development Deputy Director Lawrence presented a staff report and
responded to City Council inquiries.
Motion by: Councilmember Trubee
Seconded by: Councilmember Nestande
Approve Placement of Peace Pole at the Community Rose Garden in Civic
Center Park.
Motion Carried (5 to 0)
14.d RESOLUTION NO. 2024-011 ESTABLISHING PROCEDURES FOR THE
SELECTION OF THE MAYOR AND MAYOR PRO TEM
City Clerk Mejia narrated a PowerPoint presentation and responded to City
Council inquiries.
Motion by: Councilmember Kelly
Seconded by: Mayor Pro Tem Harnik
Direct staff to proceed with preparing a seniority-based rotation, and to evaluate
whether there are any unknown issues related to th e policy for consideration at a
future meeting.
Motion Carried (4 to 0), with Mayor Quintanilla abstaining.
15. PUBLIC HEARINGS
None.
16. INFORMATION ITEMS
None.
Page 19 of 855
Palm Desert City Council Meeting Minutes
March 28, 2024
10
17. ADJOURNMENT
The City Council adjourned at 5:56 p.m.
Respectfully submitted,
_________________________
Níamh M. Ortega
Assistant City Clerk/Assistant Secretary
_________________________
Anthony J. Mejia, MMC
City Clerk/Secretary
Page 20 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/20/2024 - 3/31/2024
City of Palm Desert
Account Number
03/20/202400001504 Amazon Capital Services Inc.W1 Planning Com. Water Bottle43063001104111 1443L9QPJ7Y9 17.86
03/20/202402002359 QUINTANILLA, KARINAW1 Env. Policy 3.22.24 K. Quintan11501001100000 ADV MEI 3.22.24 111.00
03/20/202402002359 QUINTANILLA, KARINAW1 Env. Pol. 3.22.24 K. Quintanil11501001100000 ADV LDG 3.22.24 288.00
03/20/202402002359 QUINTANILLA, KARINAW1 Env. Pol. 3.22.24 K. Quintanil11501001100000 ADV MILE 3.22.24 180.90
Examined and Approved Total For Bank ID - W1
597.76City Manager
Examined and Approved
Mayor or Mayor Pro-Tem
Audited and Found Correct
Director of Finance
03/31/2024Report Date 1Page City and Housing
DocuSign Envelope ID: 0FE31934-EB45-4805-9A10-38D0E37A120E
Page 21 of 855
Page 22 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/22/2024 - 3/31/2024
City of Palm Desert
Account Number
03/22/202400001505 AMS CONNECTW1 R/M ALARM - CITY HALL43310001104340 4250079 154.00
03/22/202400001506 BEST BEST & KRIEGER LLPW1 MONTHLY RETAINER THRU 2/2443015001104120 990220 25,714.00
03/22/202400001506 BEST BEST & KRIEGER LLPW1 Article 34 LGL 2/2443015001104121 990130 1,636.80
03/22/202400001506 BEST BEST & KRIEGER LLPW1 HA LGL 2/2443015008714195 990130 1,864.40
03/22/202400001507 CORONA CLAY COMPANYW1 FREEDOM PARK FIELD STORM REPAI42191001104159 15358 4,368.75
03/22/202400001508 FG CREATIVE INCW1 PADDLE.NET* INISEVLTD43090002424549 10213 28.66
03/22/202400001508 FG CREATIVE INCW1 Retainer: monthly43090002424549 10213 950.00
03/22/202400001508 FG CREATIVE INCW1 Retainer: Strategic planning s43090002424549 10213 2,500.00
03/22/202400001508 FG CREATIVE INCW1 Online Advertising: Develop43090002424549 10213 1,500.00
03/22/202400001508 FG CREATIVE INCW1 Graphic Design:43090002424549 10213 500.00
03/22/202400001508 FG CREATIVE INCW1 Website Design and Updates43090002424549 10213 300.00
03/22/202400001508 FG CREATIVE INCW1 Retaininer: Mo Acct FB2443090002424549 10207 600.00
03/22/202400001508 FG CREATIVE INCW1 Public Relations FB2443090002424549 10207 500.00
03/22/202400001508 FG CREATIVE INCW1 Graphic Design FB2443090002424549 10207 200.00
03/22/202400001508 FG CREATIVE INCW1 Website Design & support FB2443090002424549 10207 300.00
03/22/202400001508 FG CREATIVE INCW1 Merchant Business 2/202443090001104430 10212 1,500.00
03/22/202400001509 IDEA PEDDLER LLCW1 Strategy & Acct Mgm Mar2443090001104417 2424 4,416.66
03/22/202400001509 IDEA PEDDLER LLCW1 Public Relations - Mar2443090001104417 2426 2,916.66
03/22/202400001509 IDEA PEDDLER LLCW1 Media Management - Mar2443090001104417 2427 4,416.66
03/22/202400001509 IDEA PEDDLER LLCW1 Social Media - Mar2443090001104417 2425 2,416.66
03/22/202400001510 INTERWEST CONSULTING GROUP INC.W1 PD UNSP UPDATE-JAN 2443005001104470 204992 9,787.44
03/22/202400001511 MICHAEL BAKER INTERNATIONAL INCW1 ENGINEERING SERVICES FOR THE50001032134633 1205591 18,409.85
03/22/202400001512 MUIR , SHAWNW1 2024 CPRS CONF MILEAGE -SM43115001104614 2024 CPRS-SM 17.29
03/22/202400001512 MUIR , SHAWNW1 2024 CPRS CONFERENCE REIMB -SM43120001104614 2024 CPRS-SM 415.00
03/22/202400001513 OTIS ELEVATOR COW1 MR24 ELEVATOR SVC SHERIFF CTR43695005104195 100401465738 210.05
03/22/202400001514 PALM DESERT CHAMBER OF COMMERCEW1 Business Breakfast 3/12/2443125001104430 75069 30.00
03/22/202400001514 PALM DESERT CHAMBER OF COMMERCEW1 Chamber Mixer LQ43125001104430 74987 10.00
03/31/2024Report Date 1Page City and Housing
DocuSign Envelope ID: 4C9DB7F0-AF2D-487F-8CAD-8EDB72BE37A3
Page 23 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/22/2024 - 3/31/2024
City of Palm Desert
Account Number
03/22/202400001515 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES JAN 2443310004254430 CAM012024 6,713.74
03/22/202400001515 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES FEB 2443310004254430 CAM022024 6,713.74
03/22/202400001515 PALM DESERT PACIFIC OWNER LLCW1 MALL CAM CHARGES DEC 2343310004254430 CAM122023 6,713.74
03/22/202400001516 RICHARDS WATSON & GERSHON INCW1 City LGL SVC - 1/2443015001104121 246803 649.28
03/22/202400001516 RICHARDS WATSON & GERSHON INCW1 MALL LGL SVC -1/2443093001104159 246803 51.94
03/22/202400001516 RICHARDS WATSON & GERSHON INCW1 HA LGL SVC-1/2443015008714195 246802 2,119.00
03/22/202400001516 RICHARDS WATSON & GERSHON INCW1 Arc Village LGL SVC - 1/2443015008734195 246802 286.95
03/22/202400001516 RICHARDS WATSON & GERSHON INCW1 UHC LGL SVC - 1/2443015008734195 246802 1,302.30
03/22/202400001516 RICHARDS WATSON & GERSHON INCW1 HAF LGL SVC - 1/2443015008734195 246802 6,379.08
03/22/202400001517 SIGNARAMAW1 FULL REFUND EASE24-000132211001100000 EASE24-0001 468.00
03/22/202400001518 STAPLES BUSINESS ADVANTAGEW1 Staples March42110001104417 3561717387 50.33
03/22/202400001518 STAPLES BUSINESS ADVANTAGEW1 6 Clear Folders S.Kolbeck42110001104150 3561224392 8.89
03/22/202400001518 STAPLES BUSINESS ADVANTAGEW1 Supplies for supply room42110001104159 3561224392 36.70
03/22/202400001518 STAPLES BUSINESS ADVANTAGEW1 Art & essay Suppl42110001104430 3559384865 22.42
03/22/202400001518 STAPLES BUSINESS ADVANTAGEW1 Art&Essay Supplies42110001104430 3559384866 40.77
03/22/202400001519 VINTAGE ASSOCIATESW1 August '23 Weather Event: Park42191001104159 231411 1,110.00
03/22/202400001519 VINTAGE ASSOCIATESW1 August '23 Weather Event: Park42191001104159 232258 9,040.35
03/22/202400001519 VINTAGE ASSOCIATESW1 August '23 Weather Event: Park42191001104159 232261 7,782.92
03/22/202400001519 VINTAGE ASSOCIATESW1 FB24 LMA 16 LANDSE MAINT-PARKS43320011104611 232141 26,098.00
03/22/202400001519 VINTAGE ASSOCIATESW1 LMA 16 COURT MAINT - PARKS43325011104611 232141 1,135.00
03/22/202400001519 VINTAGE ASSOCIATESW1 LMA 16 LANDSCAPE MAINT - COMM43910001104611 232141 837.00
03/22/202400001519 VINTAGE ASSOCIATESW1 LMA 16 LANDSCAPE MAINT - HAYST43320002764374 232141 3,650.00
03/22/202400001519 VINTAGE ASSOCIATESW1 LMA 16 - UNIVERSITY PARKS43320011104611 232141 2,200.00
03/22/202400001520 VITAC CORPORATIONW1 Live Captioning Services for C43620011104190 INVVIT121713 472.50
03/22/202400001521 Zoho CorporationW1 Manage Svc Desk Plus remai bal43620011104190 2397588 450.00
03/22/202402002361 ACCURATE FIRST AID SERVICESW1 FIRST AID SUPPLIES - CORPYARD42190001104330 C-2210 218.94
03/22/202402002361 ACCURATE FIRST AID SERVICESW1 FIRST AID SUPPLIES - CORPYARD42190001104330 C-2322 131.36
03/31/2024Report Date 2Page City and Housing
DocuSign Envelope ID: 4C9DB7F0-AF2D-487F-8CAD-8EDB72BE37A3
Page 24 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/22/2024 - 3/31/2024
City of Palm Desert
Account Number
03/22/202402002361 ACCURATE FIRST AID SERVICESW1 FIRST AID SUPPLIES - CORPYARD42190001104330 C-2359 148.11
03/22/202402002362 AIR & HOSE SOURCE INCW1 STREET MAINT SUPPLIES42190001104310 542568 69.60
03/22/202402002363 BECK OIL INCW1 SUPPLY OF GAS AND DIESEL FUEL42170001104331 101963 4,946.38
03/22/202402002364 BLINDS ETC.W1 BLINDS INSTALL - PW OFFICES43310001104340 24353 490.15
03/22/202402002365 BSN SPORTS LLCW1 SOCCER GOAL/NETS - PARKS42190001104611 924634261 4,696.58
03/22/202402002366 C A P I OW1 Webinar - Special Events43120001104430 20521 45.00
03/22/202402002367 CALIFORNIA BUILDING OFFICIALSW1 Webinar J. Finley & D. Olson43120001104420 17359 160.00
03/22/202402002367 CALIFORNIA BUILDING OFFICIALSW1 CALBO ABM Esmeralda-J. Finley43125001104420 17358 645.00
03/22/202402002367 CALIFORNIA BUILDING OFFICIALSW1 CALBO ABM Esmeralda-D. Olson43125001104420 17358 430.00
03/22/202402002368 CASH, PETTYW1 Soroptimist event 3/08/2443125001104150 CHAVEZ 3/11/24 60.00
03/22/202402002368 CASH, PETTYW1 livescan43056001104154 CARRANZA 2/29/24 62.00
03/22/202402002368 CASH, PETTYW1 mileage 1/30/2443115001104190 SANTOS 2/21/24 129.04
03/22/202402002368 CASH, PETTYW1 Art & Essay - Stationery42110001104430 DEBBIE 2/29/24 46.32
03/22/202402002368 CASH, PETTYW1 Pictures for 2024 student Art42190004364650 DEBBIE 3/17/24 20.58
03/22/202402002368 CASH, PETTYW1 Local Meetings43125004364650 LAWRENCE 2/28/24 48.08
03/22/202402002369 COACHELLA VALLEYW1 iHUB Furniture & Equipment par44001004254430 3946 10,000.00
03/22/202402002370 COACHELLA VALLEY WATER DIST.W1 21 CONSTRUCTION JAN2443510001104310 820221768036JN24 228.76
03/22/202402002370 COACHELLA VALLEY WATER DIST.W1 21 CONSTRUCTION FEB2443510001104310 820221768036FB24 177.24
03/22/202402002370 COACHELLA VALLEY WATER DIST.W1 68 CONSTRUCTION FEB2443510001104310 306749767878FB24 340.94
03/22/202402002371 CONSOLIDATED ELECTRICALW1 R/M BLDG SUPPLIES - CITY HAL43310001104340 5725-1107677 174.56
03/22/202402002371 CONSOLIDATED ELECTRICALW1 R/M BLDG SUPPLIES - CITY HALL43310001104340 5725-1113135 101.50
03/22/202402002371 CONSOLIDATED ELECTRICALW1 R/M LIGHTING - CITY HALL43310001104340 5725-1115650 125.74
03/22/202402002371 CONSOLIDATED ELECTRICALW1 R/M BUILDING SUPPLIES - CREDIT43310001104610 5725-1105076 -514.68
03/22/202402002371 CONSOLIDATED ELECTRICALW1 BLDG SUPPLIES - SHERIFF CENTER43695005104195 5725-1111994 375.79
03/22/202402002372 CSMFOW1 23/24 CSMFO Plaque Award43610001104150 INV-1114 50.00
03/22/202402002373 DANIEL HURTADOW1 Mileage 2/20-2/23/24 D Hurtado43115001104159 EMERCON02.20.24 353.22
03/22/202402002374 DATA TICKET INCW1 CITATTION PROCESSING FEB-2443090001104422 162800 344.81
03/31/2024Report Date 3Page City and Housing
DocuSign Envelope ID: 4C9DB7F0-AF2D-487F-8CAD-8EDB72BE37A3
Page 25 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/22/2024 - 3/31/2024
City of Palm Desert
Account Number
03/22/202402002375 Desert Sewer Supply IncW1 STREET MAIN SUPPLIES42190001104310 31795 556.02
03/22/202402002376 DESERT TREE SPRAYINGW1 FEB24 RODENT CONTROL - CC PARK43320011104610 2625 290.00
03/22/202402002376 DESERT TREE SPRAYINGW1 FEB24 RODENT CONTROL - PARKS43320011104611 2625 275.00
03/22/202402002376 DESERT TREE SPRAYINGW1 FEB24 RODENT CONTROL - GARDENS43910001104611 2625 80.00
03/22/202402002376 DESERT TREE SPRAYINGW1 FEB24 RODENT CONTROL - ENTRADA43921011104614 2625 130.00
03/22/202402002376 DESERT TREE SPRAYINGW1 FEB24 RODENT CONTROL - K/B43321002854374 2625 80.00
03/22/202402002377 DOKKEN ENGINEERINGW1 PROVIDE ENGINEERING AND44001002134359 45464 1,960.00
03/22/202402002378 ESCRIBE SOFTWARE LTD.W1 Agenda Management Software43620011104190 5840 17,640.00
03/22/202402002378 ESCRIBE SOFTWARE LTD.W1 Agenda Management Software43620011104190 5849 10,010.00
03/22/202402002379 EXCEL LANDSCAPE INCW1 STORM CLEANUP - FREEDOM42191001104159 108211 5,950.25
03/22/202402002380 FIDELITY NATIONAL TITLE COMPANYW1 Title Land Dnt 628-030-011&00943090001104430 30092537 2,180.00
03/22/202402002381 GANNETT CALIFORNIA LOCALIQW1 Legal Adv. Feb2443210001104111 0006276061 3,808.44
03/22/202402002382 GLS USW1 BBK Law Shipment43660001104150 5244909 3.80
03/22/202402002383 GREAT WESTERN INSTALLATIONSW1 R/M UNIVERSITY PARK43325011104611 2311109 1,995.00
03/22/202402002384 HYDRATE HQW1 WATER COOLER RENTAL43090001104340 CASD2277 590.00
03/22/202402002385 INTERNATIONAL ECONOMICW1 2024/25 Renewal IEDC43630001104430 292168IEDC2024 341.25
03/22/202402002386 IPERMITW1 REFUND 80% HVRC23-069932211001100000 HVRC23-0699 127.20
03/22/202402002387 JTB SUPPLY COMPANY INC.W1 PURCHASE OF TRAFFIC EQUIPMENT43325001104250 112917 2,183.44
03/22/202402002387 JTB SUPPLY COMPANY INC.W1 PURCHASE OF TRAFFIC EQUIPMENT43325001104250 112917 19.20
03/22/202402002388 KINCAID INDUSTRIES INCW1 R/M PLUMBING - FIRE STATION 3343310002304220 5357 300.00
03/22/202402002388 KINCAID INDUSTRIES INCW1 R/M PLUMBING - AQUATIC CTR43311012424549 5354 300.00
03/22/202402002388 KINCAID INDUSTRIES INCW1 R/M PLUMBING - SHERIFF CTR43695005104195 5369 300.00
03/22/202402002389 LAUTZENHISER'S STATIONERY INCW1 Minute Paper42110001104111 13095 651.65
03/22/202402002390 LOCK SHOP INC.W1 Shadw Mntn Lock servi43090001104430 117729 110.00
03/22/202402002390 LOCK SHOP INC.W1 DOOR LOCK SRVS - CORPYARD43310001104330 E628237 406.67
03/22/202402002390 LOCK SHOP INC.W1 DOOR LOCK SRV - PARKS43310001104611 A135774 165.89
03/22/202402002391 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 996714-013024 764.65
03/31/2024Report Date 4Page City and Housing
DocuSign Envelope ID: 4C9DB7F0-AF2D-487F-8CAD-8EDB72BE37A3
Page 26 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/22/2024 - 3/31/2024
City of Palm Desert
Account Number
03/22/202402002392 M & M SWEEPING INC.W1 JAN24 RES/COM ST SWEEPING43320001104310 66586 15,897.08
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - CY43310001104330 66586 340.00
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - CC PARK43321001104610 66586 764.00
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - PARKS43325011104611 66586 616.00
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - ENTRADA43921011104614 66586 247.00
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - AQUATIC43311012424549 66586 140.00
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - PRESIDE43091032774373 66586 593.00
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - PRESIDE43091032824373 66586 458.00
03/22/202402002392 M & M SWEEPING INC.W1 PARKING LOT SWEEPING - PARKVIE43696015104195 66586 188.00
03/22/202402002393 MEJIA, ANTHONYW1 Nestande Condolence Flowers42110001104110 MEJIA 3.8.24 177.79
03/22/202402002394 MILLER, BRIDGET MAEW1 Art Essay Award Ceremony Photo43092004364650 00761 300.00
03/22/202402002395 MMASCW1 Firehouse Lunch43125001104430 9161 15.00
03/22/202402002396 MOWERS PLUS INCW1 EQUIPMENT PURCHASE - CORPYARD44040001104331 290304 2,363.61
03/22/202402002397 OMNIS INCW1 PARKING LOT PAVEMENT MGMT43320001104313 24008 4,565.00
03/22/202402002398 PBK ARCHITECTS INCW1 FS 102 - NS FIRE STATION44001002354270 PP#10 17,436.11
03/22/202402002399 POWELL, ERICAW1 Office Supplies42110001104430 STAPLES ART ESSA 46.32
03/22/202402002399 POWELL, ERICAW1 Art Essay Award Cerem cookie43125004364650 ALBERTSONS ERICA 82.24
03/22/202402002400 POWERSTRIDE BATTERY COMPANY INCW1 TRAFFIC SIGNAL BATTERIES43325001104250 P699969 165.31
03/22/202402002401 Riverside County OfficeW1 Spons EconForcst Silvr 4/18/2443120001104430 2024-24 1,000.00
03/22/202402002402 SAM'S FENCE COMPANYW1 SUPPLY SNOW FENCE43320001104310 20950 4,396.22
03/22/202402002403 SENGA ENERGY LLCW1 REFUND 80% SOLR23-104032211001100000 SOLR23-1040 211.20
03/22/202402002404 STEVE OLSONW1 BOOT REIM S. OLSON 02232443915001104420 BOOTREIM 22324SO 250.00
03/22/202402002405 SUNBELT RENTALS INCW1 DUMP TRUCK RENTAL43430001104310 147778797-0001 2,955.60
03/22/202402002405 SUNBELT RENTALS INCW1 RENTAL EQ FOR LIC A TESTING43430001104310 147671243-0001 1,019.76
03/22/202402002405 SUNBELT RENTALS INCW1 CREDIT FOR RENTAL EQ43430001104310 147671243-0002 -564.35
03/22/202402002406 SUNPOWER CORPORATION SYSTEMW1 REFUND 80% SOLR23-095932211001100000 SOLR23-0959 211.20
03/22/202402002407 SUNRUN INSTALLATION SERVICES INCW1 REFUND 80% SOLR23-103932211001100000 SOLR23-1039 211.20
03/31/2024Report Date 5Page City and Housing
DocuSign Envelope ID: 4C9DB7F0-AF2D-487F-8CAD-8EDB72BE37A3
Page 27 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/22/2024 - 3/31/2024
City of Palm Desert
Account Number
03/22/202402002408 SUPERIOR READY MIX CONCRETEW1 STREET MAINT SUPPLIES42190001104310 404133 428.79
03/22/202402002409 THE RETAIL COACH LLCW1 Retail Mkt Analysis - Instl 443090001104430 5194 4,583.00
03/22/202402002409 THE RETAIL COACH LLCW1 Retail Mkt Analysis - Instll 343090001104430 5155 4,583.00
03/22/202402002410 TOPS N BARRICADES INC.W1 STREET AND TRAFFIC SUPPLIES42190001104310 1103348 151.22
03/22/202402002410 TOPS N BARRICADES INC.W1 RAIN JACKETS42190001104614 1105102 422.66
03/22/202402002411 UNITED STORM WATER INC.W1 CATCH BASIN / DRAIN43320004204314 SW41271 171,135.50
03/22/202402002412 VALLEY TRACTOR AND FORKLIFTW1 EQUIP REPAIRS - LIGHT TOWERS43340001104331 4989 577.95
03/22/202402002413 VARIETY-THE CHILDREN'SW1 Jan Harnik-Women of Wonder43886001104800 WOMEN OF WONDER 125.00
03/22/202402002413 VARIETY-THE CHILDREN'SW1 Evan Trubee-Women of Wonder43886001104800 WOMEN OF WONDER 125.00
03/22/202402002414 WAXIEW1 JANITORIAL SUPPLIES42190001104340 82199648 56.75
03/22/202402002415 WEST COAST ARBORISTS INCW1 August '23 Weather Event: Tree42191001104159 211492 20,132.00
03/22/202402002416 XPRESS GRAPHICSW1 MAILERS FOR WALK N ROLL PRJCT50001032134633 #24-60185 851.75
03/22/202402002417 ZUMAR INDUSTRIES INC.W1 SHIPPING COST - SIGNS42190001104310 8783FRT1 202.34
03/22/202402002417 ZUMAR INDUSTRIES INC.W1 STREET MAINT SUPPLIES42190001104310 8871 868.65
Examined and Approved Total For Bank ID - W1
503,647.91City Manager
Examined and Approved
Mayor or Mayor Pro-Tem
Audited and Found Correct
Director of Finance
03/31/2024Report Date 6Page City and Housing
DocuSign Envelope ID: 4C9DB7F0-AF2D-487F-8CAD-8EDB72BE37A3
Page 28 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/22/2024 - 3/31/2024
City of Palm Desert
Account Number
03/22/202400002528 RICHARDS WATSON & GERSHON INCW3 SA Bonds LGL SVC -1/2443015007034121 246802 22.07
03/22/202400002529 US BANKW3 2017A US BANK FEES 7/24-1/2514301007030000 7234037 1,458.33
03/22/202400002529 US BANKW3 2017B US BANK FEES 7/24-1/2514301007030000 7234037 1,458.33
03/22/202400002529 US BANKW3 2017A US BANK FEES 2/24-6/2443090007034195 7234037 1,041.67
03/22/202400002529 US BANKW3 2017B US BANK FEES 2/24-6/2443090007034195 7234037 1,041.67
Examined and Approved Total For Bank ID - W3
5,022.07City Manager
Examined and Approved
Mayor or Mayor Pro-Tem
Audited and Found Correct
Director of Finance
03/31/2024Report Date 7Page Successor Agency
DocuSign Envelope ID: 4C9DB7F0-AF2D-487F-8CAD-8EDB72BE37A3
Page 29 of 855
Page 30 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/25/2024 - 3/31/2024
City of Palm Desert
Account Number
03/25/202402002418 RIELY OSMONDW1 TOT Reimbursement31883001100000 TOT REIMB-OSMOND 4,254.61
03/25/202402002418 RIELY OSMONDW1 TOT Accrued Interest Reimb31998001100000 TOT REIMB-OSMOND 13.86
03/25/202402002418 RIELY OSMONDW1 TOT Late Penalty Reimb31998001100000 TOT REIMB-OSMOND 138.55
03/25/202402002418 RIELY OSMONDW1 ACH Processing Fee43630001104159 TOT REIMB-OSMOND 130.64
Examined and Approved Total For Bank ID - W1
4,537.66City Manager
Examined and Approved
Mayor or Mayor Pro-Tem
Audited and Found Correct
Director of Finance
03/31/2024Report Date 1Page City and Housing
DocuSign Envelope ID: AB0BAABD-F4D1-49AE-95FF-BF0ACEB32C74
Page 31 of 855
Page 32 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202400001523 AETNA RESOURCES FOR LIVINGW1 APR 2024 Employee Assistance43090001104154 E0313852 173.75
03/29/202400001524 AIR EXCHANGE INCW1 R/M PLYMOVENT EXHAUST SYSTEM43310002304220 91611061 600.45
03/29/202400001524 AIR EXCHANGE INCW1 R/M PLYMOVENT EXHAUST SYSTEM43310002304220 91611055 1,167.52
03/29/202400001525 ALZHEIMERS COACHELLA VALLEYW1 Harnik ACV Endless Poss. Reg.43886001104800 3.13.24 250.00
03/29/202400001526 AVENU MUNISERVICES LLCW1 TOT Compliance Review 202443090001104159 INV06-018108 67,527.62
03/29/202400001527 CDW LLCW1 FY2324 Monitor Replacement44040005304190 QG86173 254.50
03/29/202400001527 CDW LLCW1 Adapter Traffic42120001104190 PZ77794 106.88
03/29/202400001527 CDW LLCW1 2/1/24-2/29/24 AWS Consumption43620011104190 ZR00461582 699.51
03/29/202400001527 CDW LLCW1 FY2324 speaker/webcam Replace44040005304190 QF03048 18.76
03/29/202400001527 CDW LLCW1 FY2324 2 Laptops Replacement44040005304190 QC59044 2,223.87
03/29/202400001527 CDW LLCW1 FY2324 screen/stand Replace44040005304190 QC83316 2,116.99
03/29/202400001527 CDW LLCW1 FY2324 Phone Case Replacement44040005304190 QC59503 37.64
03/29/202400001527 CDW LLCW1 Dec23 AWS Consumption43620011104190 ZR00440425 672.17
03/29/202400001527 CDW LLCW1 Nov23 AWS Consumption43620011104190 ZR00429714 660.22
03/29/202400001527 CDW LLCW1 FY2324 speaker/webcam Replace44040005304190 QF03048 253.29
03/29/202400001528 CORONA CLAY COMPANYW1 FREEDOM PARK FIELD STORM R/M42191001104159 15460 4,368.75
03/29/202400001529 DESERT PUBLICATIONS INCW1 Fashion Week El Paseo 202443062011104800 993721 300,000.00
03/29/202400001530 FEDERAL EXPRESS CORP.W1 ICSC Lockbox43660001104110 8-431-83814 14.95
03/29/202400001530 FEDERAL EXPRESS CORP.W1 HDL Biz Lic Renewals43660001104422 8-431-83814 36.01
03/29/202400001530 FEDERAL EXPRESS CORP.W1 OVERNIGHT SHIP FOR DEPOSIT43660001104422 8-439-00196 44.25
03/29/202400001531 FIRSTCHOICE COFFEE SERVICEW1 COFFEE AND KITCHEN SUPPLIES42190001104340 736201 120.00
03/29/202400001532 HIGH TECH IRRIGATION INC.W1 IRRIGATION SUPPLIES - CC PARK43320011104610 784739 256.74
03/29/202400001532 HIGH TECH IRRIGATION INC.W1 PESTICIDES - ELDORADO43370011104614 784000 24.03
03/29/202400001533 HORIZON PROFESSIONAL LANDSCAPEW1 EXTRA WORK - PP I / II43321002774373 6694 1,280.00
03/29/202400001534 HR GREEN PACIFIC INCW1 TRAFFIC ENGINEERING / DESIGN50009062134250 172666 11,512.00
03/29/202400001535 IDEA PEDDLER LLCW1 Media Buys - February43221001104417 2439 83,262.98
03/29/202400001536 KEYSER MARSTON ASSOCIATES INCW1 Financial Analysis of UHC proj43090008734195 0038169 442.50
03/31/2024Report Date 1Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 33 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202400001537 KIMLEY-HORN AND ASSOCIATES INC.W1 Rail Station Feb '2443090001104430 27364532 61,032.46
03/29/202400001537 KIMLEY-HORN AND ASSOCIATES INC.W1 TRAFFIC OPERATION - AMEND 250009072134250 27443329 26,254.60
03/29/202400001538 MARIPOSA LANDSCAPES INCW1 EXTRA WORK - LMA 9 MEDIANS43370011104614 106782 378.00
03/29/202400001538 MARIPOSA LANDSCAPES INCW1 LMA 1 ALLOWABLE EXTRA WORK43370011104614 105707 3,115.43
03/29/202400001538 MARIPOSA LANDSCAPES INCW1 LMA 1 ALLOWABLE EXTRA WORK43370011104614 106070 2,622.56
03/29/202400001538 MARIPOSA LANDSCAPES INCW1 LMA 1 ALLOWABLE EXTRA WORK43370011104614 106863 1,468.03
03/29/202400001538 MARIPOSA LANDSCAPES INCW1 LMA 1 ALLOWABLE EXTRA WORK43370011104614 106866 3,273.79
03/29/202400001538 MARIPOSA LANDSCAPES INCW1 EXTRA WORK - ENTRADA DEL PASEO43921011104614 106025 788.85
03/29/202400001539 MARKS ARCHITECTS INCW1 ENG / DESIGN - PARKVIEW44001005104361 3023002.05 25,000.00
03/29/202400001540 OPENGOV INCW1 OMS Plus (50 users)7/24-11/2414301001100000 INV12945 19,859.02
03/29/202400001540 OPENGOV INCW1 OMS Plus (50 users)12/23-6/2443620011104190 INV12945 27,802.64
03/29/202400001541 OTIS ELEVATOR COW1 LATE FEES43090001104330 L10000058233 128.36
03/29/202400001541 OTIS ELEVATOR COW1 ELEVATOR SVC SHERIFF SUBST43695005104195 100401497202 210.05
03/29/202400001542 PALM DESERT CHAMBER OF COMMERCEW1 KQ, JH, KK PDACC Breakfast43125001104110 75068 90.00
03/29/202400001543 PURE WATER PARTNERS LLCW1 LATE FEES - CORP YARD43090001104330 1675987 104.00
03/29/202400001543 PURE WATER PARTNERS LLCW1 LATE FEES - CITY HALL43090001104340 1675987 104.00
03/29/202400001543 PURE WATER PARTNERS LLCW1 LATE FEES - FIRE STATIONS43310002304220 1675987 104.00
03/29/202400001543 PURE WATER PARTNERS LLCW1 3 WATER DISPENSERS - CORPYARD43090001104330 1675987 223.05
03/29/202400001543 PURE WATER PARTNERS LLCW1 3 WATER DISPENSERS - CITY HALL43090001104340 1675987 223.05
03/29/202400001543 PURE WATER PARTNERS LLCW1 1 WATER DISPENSER - PORTOLA CC43090001104344 1675987 74.35
03/29/202400001543 PURE WATER PARTNERS LLCW1 3 WATER DISPENSERS - FIRE STAT43310002304220 1675987 223.05
03/29/202400001544 SAME DAY EXPRESSW1 Maintenance of City's permanen43372004364650 030124 4,600.00
03/29/202400001545 SANT MADEW1 Website Hosting & Maintenance43620011104190 1002 700.00
03/29/202400001546 SHI INTERNATIONAL CORPORATIONW1 Cloud based dis Main JL24-FB2514301001100000 B18044637 4,833.80
03/29/202400001546 SHI INTERNATIONAL CORPORATIONW1 Cloud based disaster recovery43620011104190 B18044637 37,700.94
03/29/202400001547 STAPLES BUSINESS ADVANTAGEW1 OFFICE SUPPLIES - CITY HALL42110001104300 3561224429 75.30
03/29/202400001547 STAPLES BUSINESS ADVANTAGEW1 OFFICE SUPPLIES - CITY HALL42110001104300 3561717336 98.24
03/31/2024Report Date 2Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 34 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202400001547 STAPLES BUSINESS ADVANTAGEW1 OFFICE SUPPLIES - CITY HALL42110001104300 3561717335 12.19
03/29/202400001547 STAPLES BUSINESS ADVANTAGEW1 OFFICE SUPPLIES - CITY HALL42110001104300 3561717334 105.65
03/29/202400001547 STAPLES BUSINESS ADVANTAGEW1 Whiteboard & Notebook Sullivan42110001104150 3561717325 60.48
03/29/202400001547 STAPLES BUSINESS ADVANTAGEW1 Supplies for Supply Room42110001104159 3561717326 50.94
03/29/202400001547 STAPLES BUSINESS ADVANTAGEW1 Supplies for Supply Room42110001104159 3561717324 46.19
03/29/202400001548 THE ALTUM GROUPW1 ENG/DESIGN SRVS - ADA CAHUILLA43880002204800 9300 6,931.08
03/29/202400001548 THE ALTUM GROUPW1 DW "PARCEL A" PARKING LOT48092004414195 9301 668.00
03/29/202400001549 VERIZON WIRELESS SERVICES LLCW1 Sheriff Tower Dump-24142469043042001104210 9022349681 160.00
03/29/202400001549 VERIZON WIRELESS SERVICES LLCW1 EOC FEB08-MAR0722899501100000 9958516147 64.50
03/29/202400001550 VINTAGE ASSOCIATESW1 LMA 16 EXTRA WORK - HAYSTACK43321002764374 232259 324.52
03/29/202400001550 VINTAGE ASSOCIATESW1 LMA 16 EXTRA WORK - HOVLEY43320011104611 232257 1,455.78
03/29/202400001550 VINTAGE ASSOCIATESW1 FB24 LMA 16 - UNIVERSITY PARKS43320011104611 232142 2,200.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FB24 LMA 16 LANDS MAINT - PARK43320011104611 232142 23,098.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FB24 LMA 16 COURT MAINT -PARKS43325011104611 232142 1,135.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FB24 LMA 16 LANDS MAINT - COMM43910001104611 232142 837.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FB24 LMA 16 LANDS MAINT -HAYST43320002764374 232142 3,650.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FEB24 LMA 17 - CC PARK43320011104610 232001 16,200.00
03/29/202400001550 VINTAGE ASSOCIATESW1 LMA 17 EXTRA WORK - CC PARK43320011104610 232260 8,438.94
03/29/202400001550 VINTAGE ASSOCIATESW1 FEB24 LMA 17 - SPORTS FIELDS43371001104610 232001 4,500.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FEB24 LMA 17 - MAGNESIA FALLS43320011104611 232001 4,000.00
03/29/202400001550 VINTAGE ASSOCIATESW1 CREDIT MEMO INV#23147243320011104611 53513 -562.79
03/29/202400001550 VINTAGE ASSOCIATESW1 LMA 16 EXTRA WORK - PARKS43320011104611 232248 2,078.80
03/29/202400001550 VINTAGE ASSOCIATESW1 LMA 16 EXTRA WORK - COMM GAR43910001104611 232259 1,734.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FEB24 LMA 17 - AQUATIC CENTER43311012424549 232001 1,400.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FEB24 LMA 17 - PARKVIEW BLDG43696015104195 232001 2,000.00
03/29/202400001550 VINTAGE ASSOCIATESW1 FEB24 LMA 17 - STATE BLDG43696025104195 232001 300.00
03/29/202400001551 WEX HEALTH INCW1 FEB 2024 COBRA Monthly43090001104154 0001902467-IN 85.00
03/31/2024Report Date 3Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 35 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202400001552 WILLCORPW1 FREEDOM PARK STORM DAMAGES42191001104159 2193 37,459.44
03/29/202400001553 WILLDAN FINANCIAL SERVICESW1 Tax Consul Serv through 2/2322860006100000 010-57742 4,302.00
03/29/202400001553 WILLDAN FINANCIAL SERVICESW1 Prof SVC U-Park 2024 Issuance43090001104159 010-57737 2,048.00
03/29/202402002420 4IMPRINT INC.W1 ARBOR DAY SUPPLIES43905001104614 26921015 856.35
03/29/202402002421 ALIANZA RECYCLING AND RECOVERYW1 Recycling43090002364195 223197 152.53
03/29/202402002422 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78554 878.00
03/29/202402002422 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78558 560.00
03/29/202402002422 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78579 140.00
03/29/202402002422 AMERICAN FORENSIC NURSESW1 FY 23/24 Blood draws/DUI drug43904001104210 78593 70.00
03/29/202402002423 AQUATICS BY ARMANDOW1 Forklift Operator Training43090002424549 0746 750.00
03/29/202402002424 BECK OIL INCW1 SUPPLY OF GAS AND DIESEL FUEL42170001104331 103733 5,219.62
03/29/202402002425 BURRTECW1 Amended Franchise Agreement fo43090002364195 13124 25,109.01
03/29/202402002426 CALIFORNIA BUILDINGW1 TRAINING A. CASTRO43120001104422 17069 290.00
03/29/202402002427 CASC ENGINEERING ANDW1 MS4 / NPDES SUPPORT43090001104300 0050810 1,734.00
03/29/202402002428 CHARTER COMMUNICATIONSW1 MAR24 City Hall Internet43650001104190 0036098030124 115.27
03/29/202402002428 CHARTER COMMUNICATIONSW1 MAR24 Corp Yard Internet43650001104190 1093262030724 88.00
03/29/202402002428 CHARTER COMMUNICATIONSW1 MR24 73571 MAGNESIA FALLS-PDAC43650002424549 0525504031724 264.56
03/29/202402002429 CITY OF INDIAN WELLSW1 Carpet Cleaning-FS #5543042012304220 19-86 67.50
03/29/202402002430 COACHELLA VALLEY WATER DIST.W1 Nichols Dr43510001104611 822075444102MR24 190.34
03/29/202402002430 COACHELLA VALLEY WATER DIST.W1 74350 College Dr43510001104611 762703889274MR24 23.88
03/29/202402002430 COACHELLA VALLEY WATER DIST.W1 1150 WASHINGTON & I-1043510001104614 587615849914MR24 282.28
03/29/202402002430 COACHELLA VALLEY WATER DIST.W1 Portola Ave - Landscape43510001104614 805025629618MR24 71.03
03/29/202402002430 COACHELLA VALLEY WATER DIST.W1 iHUB CVWD (2/12 - 3/12)43950004254430 720041309104MR24 62.56
03/29/202402002431 COACHELLA VALLEY WATER DISTW1 Construction Inspec. Deposit43311008714195 001 6,435.00
03/29/202402002432 COUNTY OF RIVERSIDE SHERIFFW1 FY 23/24 Burglary Suppression42170001104210 SH0000045223 561.68
03/29/202402002432 COUNTY OF RIVERSIDE SHERIFFW1 FY 23/24 PD Police Motor Fuel42170001104210 SH0000045224 906.22
03/29/202402002433 D & B VISIONSW1 Consultant services for the Ci43090002364195 24-02 5,000.00
03/31/2024Report Date 4Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 36 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002434 DEPARTMENT OF INDUSTRIALW1 SEARS CONYNCE INSPCTN 202443310004254430 E2041857SB 225.00
03/29/202402002434 DEPARTMENT OF INDUSTRIALW1 SEARS CNVYNCE2 INSPCT 202443310004254430 E2041855SB 225.00
03/29/202402002434 DEPARTMENT OF INDUSTRIALW1 SEARS CNVYNCE3 INSP 202443310004254430 E2041854SB 225.00
03/29/202402002434 DEPARTMENT OF INDUSTRIALW1 SEARS CNYNC4 INSP 202443310004254430 E2041852SB 225.00
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC SRVS - CITY HALL43310001104340 246872 494.00
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC SRVS - CORPYARD43310001104330 246927 306.34
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC SRVS - CORPYARD43310001104330 246926 420.75
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC SRVS - HISTORICAL SOCIETY43310001104340 246871 148.50
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC SRVS - FS #3343310002304220 246875 750.91
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC SRVS - PARKVIEW43696015104195 245892 207.27
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC PM - CITY HALL / HS / PDC43310001104340 246874 213.00
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC PM - CIVIC CENTER PARK43310001104610 246874 264.00
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC PM - FREEDOM PARK43310001104611 246874 133.00
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC PM - FIRE STATION 3343310002304220 246874 1,882.00
03/29/202402002435 DESERT AIR CONDITIONING INC.W1 HVAC REPAIRS- AQUATIC CENTER43311012424549 246649 173.25
03/29/202402002436 DESERT ELECTRIC SUPPLYW1 STREET MAINT SUPPLIES42190001104310 S3169876.001 74.68
03/29/202402002436 DESERT ELECTRIC SUPPLYW1 STREET MAINT SUPPLIES42190001104310 S3171243.001 26.60
03/29/202402002437 DESERT ROSE SOCIETYW1 ROSE GARDEN PRUNING - CC PARK43320011104610 5070 975.00
03/29/202402002438 DISABILITY ACCESS CONSULTANTSW1 ADA CONSULTANT SERVICES43090001104159 24-048 5,850.00
03/29/202402002439 DISNEY DESTINATIONS LLCW1 Professional Development Conf43120008704195 1383654600176189 1,575.00
03/29/202402002440 DOVE PRINTINGW1 Printing and Distribution of43026001104417 4294 6,511.00
03/29/202402002441 DRAGON'S EXTERMINATORW1 EXTRA SRVS - PARKS43310001104611 89236188 240.00
03/29/202402002442 ENGLAND THIMS AND MILLER INCW1 CARTEGRAPH TRAINING43090001104190 211624 2,957.00
03/29/202402002442 ENGLAND THIMS AND MILLER INCW1 CARTEGRAPH TRAINING43090001104190 211990 2,062.50
03/29/202402002442 ENGLAND THIMS AND MILLER INCW1 CARTEGRAPH TRAINING43090001104190 212905 11,066.25
03/29/202402002443 FAIR HOUSING COUNCIL OFW1 CDBG 23-24 FEB2443880002204800 INV#8 1,635.42
03/29/202402002444 FIND FOOD BANKW1 FIND Food Bank to provide SB 143090002364195 382706 4,166.66
03/31/2024Report Date 5Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 37 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002444 FIND FOOD BANKW1 FINDT1MAR2443090002364195 382707 2,887.50
03/29/202402002445 FOSTER GARDNER INC.W1 FERTILIZER - CC PARK43320011104610 276872 502.97
03/29/202402002446 FULTON DISTRIBUTINGW1 JANITORIAL SUPPLIES - CORPYARD42190001104330 628316 413.61
03/29/202402002446 FULTON DISTRIBUTINGW1 JANITORIAL SUPPLIES - LMA 1642190001104611 628671 470.15
03/29/202402002446 FULTON DISTRIBUTINGW1 JANITORIAL SUPPLIES - PDAC42190002424549 628884 444.69
03/29/202402002447 GALLS LLCW1 COPS Uniforms43060011104211 027235002 34.45
03/29/202402002447 GALLS LLCW1 COPS Uniforms43060011104211 027216638 34.45
03/29/202402002447 GALLS LLCW1 COPS Uniforms43060011104211 027212870 20.43
03/29/202402002447 GALLS LLCW1 COPS Uniforms43060011104211 027081117 71.16
03/29/202402002447 GALLS LLCW1 COPS Uniforms43060011104211 027081109 126.19
03/29/202402002447 GALLS LLCW1 COPS Uniforms43060011104211 027024622 155.50
03/29/202402002448 GLOBAL CTI GROUP INC.W1 Mitel Phone System Service43620011104190 169996 7,598.00
03/29/202402002449 HAMMER PLUMBING AND PUMPINGW1 CAHUILLA RESTROOM PUMP SRV43310001104611 33726-1 395.00
03/29/202402002450 HERMANN DESIGN GROUP INCW1 DESIGN SERVICES - DW GREENS48092004414195 24031103 18,678.09
03/29/202402002451 HF&H CONSULTANTS LLCW1 JN24 Solid waste, recycling43090002364195 9720950 11,244.25
03/29/202402002452 HORIZON LIGHTING INC.W1 ELECT/LIGHTING - FS #7143310002304220 346104 1,026.35
03/29/202402002453 HOUSTON & HARRIS PCS INCW1 AUG23 Weather Event42191001104159 24-25845 2,063.25
03/29/202402002454 JACOBSSON ENGINEERINGW1 RTNT P116369/HA4514020600008710000 RTNT 330-2 -10,065.23
03/29/202402002454 JACOBSSON ENGINEERINGW1 One Quail Parking Lot43311008714195 330-2 141,204.70
03/29/202402002454 JACOBSSON ENGINEERINGW1 CO #1: Furnishing and installa43311008714195 330-2 60,100.00
03/29/202402002455 Jesus GardunoW1 02-24BOOTREIM-JG43915001104300 02-24BOOTREIM-JG 250.00
03/29/202402002456 JOE GONSALVES & SON CORPW1 Retainer for April '2443090001104112 161492 3,000.00
03/29/202402002457 JOVANNI JIMENEZW1 BOOT REIM J. JIMENEZ 03172443915001104420 BOOTREIM 31724JJ 250.00
03/29/202402002458 JR THOMAS GOLF CARS INCW1 GOLF CART REPAIR43340001104331 11113 1,451.26
03/29/202402002459 KINCAID INDUSTRIES INCW1 R/M PLUMBING - AQUATIC CTR43311012424549 5377 450.00
03/29/202402002459 KINCAID INDUSTRIES INCW1 R/M PLUMBING - AQUATIC CTR43311012424549 5379 300.00
03/29/202402002460 KNORR SYSTEMS INCW1 R/M EXTRAS - AQUATIC CENTER43311012424549 227913 387.12
03/31/2024Report Date 6Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 38 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002460 KNORR SYSTEMS INCW1 R/M EXTRAS - AQUATIC CENTER PU43311012424549 227919 2,820.90
03/29/202402002460 KNORR SYSTEMS INCW1 FB24 MONTHLY PM - AQUATIC CTR43311012424549 228453 2,970.00
03/29/202402002461 LILY YEHW1 Film Series 3-27-2443125004364650 00327 250.00
03/29/202402002462 LOCK SHOP INC.W1 DOOR LOCK SRV - CC PARK43310001104610 A135801 125.51
03/29/202402002462 LOCK SHOP INC.W1 DOOR LOCK SRV - PARKS43310001104611 A135801 159.95
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 997977-022124 664.33
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 974415-020224 723.00
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 STREET SAFETY SUPPLIES42190001104310 974828-021324 446.54
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS DEPT42190001104310 977193-021424 601.37
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 977196-021424 311.07
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 984995-021624 185.87
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 985756-020624 162.61
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS DEPT42190001104310 988127-020724 52.50
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 CORP YARD SUPPLIES42190001104310 988918-020724 350.02
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 STREET MAINT SUPPLIES42190001104310 991436-020824 358.60
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 CORP YARD SUPPLIES42190001104330 974422-020224 43.90
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 CORP YARD SUPPLIES42190001104330 983504-022624 366.52
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 R/M BUILDING SUPPLIES43310001104330 997974-022124 268.78
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 TEMP WORK STATIONS - CITY HALL42190001104340 968667-022024 368.38
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 MOVING CONTAINER - CITY HALL42190001104340 987214-022724 73.59
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 R/M BLDG SUPPLIES - CC PARK43310001104610 982698-022624 32.34
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 R/M BLDG SUPPLIES - CC PARK43320011104610 975045-022324 146.23
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 R/M BLDG SUPPLIES - CAHUILLA43310001104611 987686-022724 33.47
03/29/202402002463 LOWE'S HOME CENTERS INC.W1 IRRIGATION TOOLS42190001104614 973347-030424 372.56
03/29/202402002464 MAXWELL SECURITY SERVICESW1 AFTER-HOURS ALARM RESPONSE43090001104340 2403181 400.00
03/29/202402002465 MCI A VERIZON COMPANYW1 FEB24 Portola Telephone Srv43650001104344 409114776 137.87
03/29/202402002466 MISACW1 MISAC membership: C.Acoeda43630001104190 200006492 65.00
03/31/2024Report Date 7Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 39 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002467 MODERN MISTING SYSTEMSW1 MISTERS SERVICES - CC PARK43321001104610 13815 1,665.77
03/29/202402002467 MODERN MISTING SYSTEMSW1 MISTERS SERVICES - CC PARK43321001104610 13795 10,697.50
03/29/202402002468 MOWERS PLUS INCW1 BATTERY FOR GENERATOR43340001104331 291139 543.83
03/29/202402002468 MOWERS PLUS INCW1 SMALL EQUIPMENT REPAIRS43340001104331 291659 235.75
03/29/202402002468 MOWERS PLUS INCW1 EQUIPMENT SUPPLIES - CC PARK42190001104610 290600 67.02
03/29/202402002469 NEW WEST LANDSCAPEW1 Landscape Maint Sp 129/7343370008734195 Q4 202302-11 300.00
03/29/202402002470 OMEGA INDUSTRIAL SUPPLIES INCW1 STREET MAINT SUPPLIES42190001104310 155118 701.69
03/29/202402002471 OZZIE'S INTERNATIONALW1 R/M VEHICLE #065 - OWNED43340001104331 35516 68.92
03/29/202402002471 OZZIE'S INTERNATIONALW1 R/M VEHICLE #086 - LEASED43340001104331 35376 61.53
03/29/202402002472 PALM DESERT ACE HARDWAREW1 STREET MAINT SUPPLIES42190001104310 244730 24.77
03/29/202402002472 PALM DESERT ACE HARDWAREW1 R/M BUILDING SUPPLIES43310001104330 244770 69.98
03/29/202402002472 PALM DESERT ACE HARDWAREW1 SMALL TOOLS - CITY HALL42190001104340 244634 88.30
03/29/202402002472 PALM DESERT ACE HARDWAREW1 SMALL TOOLS - CITY HALL42190001104340 244679 56.00
03/29/202402002472 PALM DESERT ACE HARDWAREW1 BUILDING SUPPLIES-CITY HALL42190001104340 244815 90.45
03/29/202402002472 PALM DESERT ACE HARDWAREW1 R/M BLDG MATERIALS - CITY HALL43310001104340 244835 71.92
03/29/202402002472 PALM DESERT ACE HARDWAREW1 R/M BLDG MAATERIALS - CC PARK43310001104610 244882 14.42
03/29/202402002472 PALM DESERT ACE HARDWAREW1 SMALL TOOLS - FREEDOM42190001104611 244879 68.93
03/29/202402002472 PALM DESERT ACE HARDWAREW1 SUPPLIES - FREEDOM42190001104611 244884 16.15
03/29/202402002472 PALM DESERT ACE HARDWAREW1 LANDSCAPE SUPPLIES - FREEDOM42190001104611 244944 16.18
03/29/202402002473 PATTON DOOR & GATEW1 R/M OVERHEAD DOORS - CY43310001104330 95099 350.00
03/29/202402002473 PATTON DOOR & GATEW1 R/M OVERHEAD DOORS - FS #7143310002304220 95211 125.00
03/29/202402002474 PENTA, RYLANDW1 Coffee - Coffee with the Mayor43090001104110 RPENT REIMB25820 60.00
03/29/202402002475 PLAZA TOWINGW1 Sheriff Towing43042001104210 24-0110-28994 240.00
03/29/202402002476 POWELL, ERICAW1 Local Meetings43125004364650 ERICA CAC 3 13 187.02
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - CORPYARD43090001104330 304597 104.50
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - HS43090001104340 304600 49.50
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - CITY HALL43090001104340 304601 137.50
03/31/2024Report Date 8Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 40 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL -PORTOLA CC43090001104344 304599 74.50
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - ARTIST C43885001104800 304609 99.00
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - FS #3343310002304220 304606 88.00
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - FS #6743310002304220 304607 71.50
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - FS #7143310002304220 304608 71.50
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - SHERIFF C43695005104195 304604 88.00
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL - PARKVIEW43696015104195 304602 82.50
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL- STATE BLDG43696025104195 304603 88.00
03/29/202402002477 POWERFUL PEST MANAGEMENTW1 MAR24 PEST CONTROL -HENDERSON43698005104195 304605 132.00
03/29/202402002478 POWERS AWARDSW1 COPS Badges43060011104211 157645 14.01
03/29/202402002479 POWERSTRIDE BATTERY COMPANY INCW1 GOLF CART BATTERY43340001104331 P700131 479.49
03/29/202402002480 PPG ARCHITECTURAL FINISHESW1 STREET MAINT SUPPLIES42190001104310 972220001421 70.19
03/29/202402002481 QUINN COMPANYW1 EQUIPMENT RP-CAT SKID STEER43340001104331 WOA30002293 611.10
03/29/202402002481 QUINN COMPANYW1 TEMP PORTABLE GEN - FS 3343310002304220 E2926302 5,027.60
03/29/202402002482 RETAIL MARKETING SERVICESW1 CART SERVICE-FEB 2443090001104422 191167 660.00
03/29/202402002483 RIOS, FREDDYW1 02-24BOOTREIM-FR43915001104300 02-24BOOTREIM-FR 250.00
03/29/202402002484 RIVERSIDE COUNTY SHERIFF-PSECW1 FY 23/24 PD Police Radio Opera43042001104210 PE0000001613 136.83
03/29/202402002484 RIVERSIDE COUNTY SHERIFF-PSECW1 FY 23/24 Citizens on Patrol ra43060011104211 PE0000001612 656.81
03/29/202402002485 S&S FLEET SERVICESW1 ANNUAL DOT INSP TRAIL/VEHICLE43340001104331 544 990.00
03/29/202402002486 SCAGW1 SCAG REG CONF-R. CANNONE43120001104470 GA24-032024-0152 200.00
03/29/202402002487 SHASTA FIRE PROTECTIONW1 ANNUAL FIRE SPRINKLER INSP-CY43090001104330 8574 1,100.00
03/29/202402002488 SIGNATURE TINTW1 SIGNS - CIVIC CENTER PARK43310001104610 1716 612.33
03/29/202402002489 SKYLINE SAFETY AND SUPPLYW1 CORP YARD SUPPLIES42190001104330 8223 262.30
03/29/202402002490 SO CAL GASW1 45480 Portola Avenue43512001104344 16752512422-MR24 84.31
03/29/202402002490 SO CAL GASW1 44400 Town Ctr Wy - FS#3343512002304220 06242756002-MR24 208.57
03/29/202402002490 SO CAL GASW1 73995 Country Club Dr - FS#7143512002304220 13562662000-MR24 96.36
03/29/202402002490 SO CAL GASW1 73200 Mesa View Dr. - FS#6743512002304220 05412483009-MR24 142.30
03/31/2024Report Date 9Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 41 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002490 SO CAL GASW1 72559 Hwy 111-Henderson43698005104195 08946430827-MR24 14.89
03/29/202402002491 SOURCE GRAPHICSW1 Plotter Paper42120001104190 132783 276.36
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (3) Desert Mirage (38601 Cook)43510002734680 700017585033NV23 20.00
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (4) Primrose (75530 Hovley)43510002734682 700017585033NV23 15.26
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (21) Monterey Meadows (73100 H43510002754680 700017585033NV23 14.98
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (20) The Glen (40730 M)43510002754681 700017585033NV23 15.42
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (18) Hovley Estates (40962 C /43510002754682 700017585033NV23 35.04
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (19) Sonata I (40794)43510002754683 700017585033NV23 15.83
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (5) Sonata II (73500 Hovley)43510002754684 700017585033NV23 16.09
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (7) Hovley Collection (73145 H43510002754685 700017585033NV23 30.84
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (8) La Paloma I (40970 A/7362543510002754686 700017585033NV23 35.04
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (10) La Paloma II (40970 Rosar43510002754687 700017585033NV23 15.42
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (14) La Paloma III (40741 Sola43510002754693 700017585033NV23 15.42
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (11) Sandpiper (40751 / 40972)43510002754694 700017585033NV23 28.63
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (12) Sandpiper West (40753 / 443510002754695 700017585033NV23 30.84
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (13) Hovley West (40762 Hov)43510002754696 700017585033NV23 14.68
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (1) Canyon Cove (Calliandra)43510002764374 700017585033NV23 36.71
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (22) Presidents Plaza E/W43514002774373 700017585033NV23 340.62
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (2) Vineyards (43430 Stony)43510002784374 700017585033NV23 15.42
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (6) The Grove (44225 Deep Cyn)43510002814374 700017585033NV23 32.46
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (15) Presidents Plaza III (73143514002824373 700017585033NV23 294.26
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (23) Presidents Plaza III (73143514002824373 700017585033NV23 74.19
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (17) Portola Place (44221)43510002834374 700017585033NV23 15.83
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (9) Kaufman/Broad (73502 FS)43510002854374 700017585033NV23 16.61
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (16) Palm Desert CC (77925 Sta43510002994374 700017585033NV23 21.03
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 PD Srv Area 19 LS-1-E43514001104250 700400365524FB24 2,889.25
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (14) SHEPHERD N/O CHINOOK43514001104250 700413950271FB24 14.51
03/31/2024Report Date 10Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 42 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (16) A STREET S/O 42ND43514001104250 700413950271FB24 27.92
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (21) DAISY/SHEPARD43514001104250 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (28) ALPINE / SHEPHERD43514001104250 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (29) (Shepard Lane / Scholar L43514001104250 700413950271FB24 27.92
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (32) (Jeri Lane)43514001104250 700413950271FB24 14.51
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (33) SHEPHERD /PORTOLA43514001104250 700413950271FB24 14.51
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (34) PETUNIA ll (Windflower/Sh43514001104250 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (35) COLLEGE VIEW lll (Acad/Sh43514001104250 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 Traffic lamps LS-243514001104250 700524045271FB24 339.02
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 Street lites LS-343514001104250 600001510277FE24 397.07
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 TRAFFIC SIGNALS TC-143514001104250 600001002544FB24 8,973.50
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 74705 42nd PED43514001104330 700117253442MR24 1,675.66
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 73510 FW City Hall43514001104340 700116008610MR24 8,524.07
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 73710 FW Pumpstation43514001104610 700169234934MR24 5,009.18
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 CC Park - San Pablo43514001104610 700167703344MR24 8,044.43
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 73296 Alessandro WW43514001104614 700646851517MR24 98.58
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 73751 Magnesia Falls Dr POOL43514002424549 700019219986MR24 10,008.26
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (6) PARKVIEW ESTATES43514002724374 700413950271FB24 441.12
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (7) DESERT MIRAGE/COOK43514002734680 700413950271FB24 70.55
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (8) SANDCASTLES43514002734681 700413950271FB24 160.52
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (12) HOVLEY/HEMMINGWAY43514002734682 700413950271FB24 19.10
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (25) DIAMONDBACK43514002754643 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (1) MONTEREY / MEAD. ASSMT43514002754680 700413950271FB24 69.99
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (3) SONATA-HOVLEY43514002754683 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (4) HOVLEY-POSADA-FONDA43514002754684 700413950271FB24 29.02
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (10) HOVLEY COLLECTION43514002754685 700413950271FB24 29.02
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (13) AVE ARCADIA/HOVLEY43514002754686 700413950271FB24 13.96
03/31/2024Report Date 11Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 43 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (17) AVE. ROSARIO/HOVLEY43514002754687 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (22) HOVLEY LN/SANDPIPER43514002754694 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (23) HOVLEY LN/SANDPIPER W43514002754695 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (24) 40764 HOVLEY CT43514002754696 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (18) PALM CT/HOVLEY LN43514002754697 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (2) HAYSTACK LIGHTING DIST.43514002764374 700413950271FB24 32.13
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (5) VINEYARDS43514002784374 700413950271FB24 115.54
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (9) GROVE43514002814374 700413950271FB24 341.14
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (19) FRANK SINATRA W/O PORTOLA43514002854374 700413950271FB24 29.02
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (20) COLLEGE VIEW/SHEPPARD43514002874374 700413950271FB24 27.92
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (30) SUNDANCE W (Kokopelli / S43514002874681 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (26) PETUNIA I (Petunia / Shep43514002874682 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (27) PETUNIA I (W Petunia/Shep43514002874682 700413950271FB24 13.96
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (31) SUNDANCE E (Chinook / She43514002874683 700413950271FB24 14.51
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (11) PALM DESERT C.C.43514002994374 700413950271FB24 3,130.04
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (15) MICHIGAN / CA43514002994374 700413950271FB24 101.97
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (1) 73710 / 73720 FW STE43514005104195 700485107855MR24 3,871.85
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 73710 FW STE20443514005104195 700835256536MR24 57.35
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (2) 73710 FW Dr DR2 / HM143696015104195 700485107855MR24 492.79
03/29/202402002492 SOUTHERN CALIFORNIA EDISONW1 (3) 73720 FW Dr HM43696025104195 700485107855MR24 471.97
03/29/202402002493 SOUTHWEST AQUATICSW1 JAN24 R/M LAGOON - CC PARK43320011104610 01-21414 5,144.00
03/29/202402002494 SPERIDIAN TECHNOLOGIES LLCW1 Solution Checkpoint 1 Signoff43900001104190 32223 108,180.00
03/29/202402002495 STENO SOLUTIONS TRANSCRIPTIONW1 Sheriff Transcrp-T23353004643042001104210 43711 217.26
03/29/202402002496 STERLING ADMINISTRATIONW1 FEB24 Admin Fee43090001104154 763207 150.50
03/29/202402002497 SUSTAINOVATION LLCW1 One Day Workshop Training 343121011104154 20240314 8,000.00
03/29/202402002498 T-MOBILE USA INCW1 Sheriff Timing Advance43042001104210 9561931466 25.00
03/29/202402002499 THE SIGN WORKSW1 SANDSTONE ROCK SIGN - HOMME43325011104611 6949 1,910.93
03/31/2024Report Date 12Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 44 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002500 TOPS N BARRICADES INC.W1 STREET SAFETY SUPPLIES42190001104310 1105146 96.03
03/29/202402002501 TORRES, FRANCISCOW1 03-24BOOTREIM-FT43915001104300 03-24BOOTREIM-FT 250.00
03/29/202402002502 TPX COMMUNICATIONSW1 Internet/Phone Svc 2/23-3/2243650001104190 177621502-0 5,600.02
03/29/202402002503 UNIFIRST CORPORATIONW1 INDUSTRIAL UNIFORM RENTAL42140001104310 2200097218 88.85
03/29/202402002503 UNIFIRST CORPORATIONW1 INDUSTRIAL UNIFORM RENTAL42140001104310 2200099683 88.85
03/29/202402002503 UNIFIRST CORPORATIONW1 INDUSTRIAL UNIFORM RENTAL42140001104310 2200102533 87.89
03/29/202402002504 VALLEY TRACTOR AND FORKLIFTW1 FORKLIFT REPAIR43340001104331 5023 476.36
03/29/202402002505 VERIZON SELECT SERVICES INCW1 FEB24 Toll Free43650001104159 131822689FEB24 2.23
03/29/202402002506 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5671680 856.61
03/29/202402002506 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5673368 1,302.05
03/29/202402002506 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5674105 1,713.23
03/29/202402002507 WEBSTAURANT STORE INCW1 Supplies - recycling container42190002364195 95248230 2,958.89
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - PARKS43320011104611 211748 11,319.25
03/29/202402002508 WEST COAST ARBORISTS INCW1 PALM PRUNING - MEDIANS43370011104614 211445 46.00
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - MEDIANS43370011104614 211748 40,630.15
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - DESERT MIRA43095002734680 210613 1,072.35
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - THE GLEN43095002754681 210613 1,787.25
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - HOVLEY ESTA43095002754682 211748 357.45
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - SONATA I43095002754683 210613 1,310.65
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - SONATA II43095002754684 210613 2,263.85
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - LA PALOMA I43095002754686 210613 476.60
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - LA PALOMA I43095002754693 210613 953.20
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - SANDPIPER C43095002754694 210613 1,429.80
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - SANDPIPER C43095002754695 210613 953.20
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - PALM COURT43095002754697 210613 357.45
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - THE GROVE43095002814374 210613 2,144.70
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - PORTOLA PL43095002834374 210613 953.20
03/31/2024Report Date 13Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 45 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - KAUFMAN/BRO43095002854374 209785-A 2,859.60
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - COLLEGE VIE43095002874374 210613 953.20
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - SUNDANCE W43095002874681 210613 834.05
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - PETUNIA I43095002874682 210613 1,072.35
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - SUNDANCE E43095002874683 210613 1,310.65
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - COLLEGE VIE43095002874684 210613 834.05
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - PDCC43095002994374 210613 3,693.65
03/29/202402002508 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - DW43320004414195 210613 14,774.60
03/29/202402002509 WEST COAST SAND & GRAVEL INCW1 STREET MAINT SUPPLIES42190001104310 696609 386.93
03/29/202402002510 XEROX FINANCIAL SERVICESW1 2/29-3/28 Copier Lease43420001104190 5491404 2,851.42
03/29/202402002511 XPRESS GRAPHICSW1 Tamarisk Undergrounding Survey43610001104417 24-60718 62.65
03/29/202402002511 XPRESS GRAPHICSW1 FirstFriday_4x4_Card_Final43610001104417 24-60577 190.36
Examined and Approved Total For Bank ID - W1
1,491,593.78City Manager
Examined and Approved
Mayor or Mayor Pro-Tem
Audited and Found Correct
Director of Finance
03/31/2024Report Date 14Page City and Housing
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 46 of 855
Check DateCheck Number Vendor NameBank ID
Check Register
Amount PaidInvoiceTransaction Desc
3/29/2024 - 3/31/2024
City of Palm Desert
Account Number
03/29/202400002530 WILLDAN FINANCIAL SERVICESW3 Series 2017 H-A Rating Upgrade43090007034195 010-57610 250.00
Examined and Approved Total For Bank ID - W3
250.00City Manager
Examined and Approved
Mayor or Mayor Pro-Tem
Audited and Found Correct
Director of Finance
03/31/2024Report Date 15Page Successor Agency
DocuSign Envelope ID: 854B4F4F-2186-432B-9C01-0973824EBE18
Page 47 of 855
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Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: ADOPTION OF A RESOLUTION ADOPTING A POLICY FOR
CEREMONIAL PROCLAMATIONS AND RECOGNITIONS
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ADOPTING A POLICY FOR CEREMONIAL PROCLAMATIONS AND
RECOGNITIONS AND RESCINDING RESOLUTION NO. 2022-25.”
BACKGROUND/ANALYSIS:
On April 14, 2022, the City Council adopted Resolutio n No. 2022-25 establishing a policy for
ceremonial proclamations and recognitions. The adopted policy provides guidance to staff on
the processing of requests, sets eligible and ineligible subjects and topics, and requires that the
Mayor and Mayor Pro Tem concur on the issuance of proclamations and recognitions.
The City Council is requested to adopt the proposed resolution to formalize recent practices
related to the recognition of outgoing members of the City’s Boards, Commissions, Committees,
and Task Forces (“Appointed Bodies”). This update would provide recognition of outgoing
members as follows:
Incomplete/partial term: A Certificate of Recognition signed by the Mayor and presented
at the Appointed Body’s meeting by the assigned City Council Liaison. The Planning
Commission and Architectural Review Commission do not have a City Council Liaison,
therefore the Mayor will be requested to present the certificate at the meeting.
Completion of one term or service totaling 4+ years: Presentation of a small “Thank
You” clock or a similar item presented at the Appointed Body’s meeting by the assigned
City Council Liaison. The Planning Commission and Architectural Review Commission
do not have a City Council Liaison, therefore the Mayor will be requested to present the
certificate at the meeting
Completion of two terms or service totaling 8+ years: Presentation of a large “Thank
you” clock or similar item presented at the Appointed Body’s meeting by the assigned City
Council Liaison. The Planning Commission and Architectural Review Commission do not
have a City Council Liaison, therefore the Mayor will be requested to present the
certificate at the meeting.
Completion of three or more terms or service totaling 12+ years: Presentation of a
large “Thank You” clock or similar item presented by the Mayor at a City Council meeting.
Declining a Presentation: If the outgoing member declines a presentation, the certificate
or clock may be mailed or picked up.
Page 49 of 855
City of Palm Desert
Resolution – Policy for Ceremonial Proclamations and Recognitions
Page 2 of 2
The City Council Ad Hoc Committee on Boards and Commission, consisting of Councilmember
Kelly and Mayor Pro Tem Harnik, expressed support for the proposed resolution.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
There is a minimal financial impact associated with the purchase of “Thank You” clocks and
similar items, ranging from $100 to $200 each. Sufficient funding is available in the City Clerk’s
Office Supplies budget.
ATTACHMENT:
1. Draft Resolution - Redline
Page 50 of 855
RESOLUTION NO. 2024-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, ADOPTING A POLICY FOR
CEREMONIAL PROCLAMATIONS AND RECOGNITIONS
WHEREAS, the City Council occasionally wishes to recognize events,
accomplishments, or public service of individuals or organizations that significantly
benefit the community of Palm Desert, and
WHEREAS, for the purposes of consistency and fairness, the City Council has
determined that it is appropriate to establish protocols for ceremonial proclamations
and recognitions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert as follows:
SECTION 1. Purpose and Intent. The purpose of this Resolution is to
establish a policy regarding the processing of requests by individuals, groups, and
organizations for City proclamations and certificates.
SECTION 2. Authority-General. It is the intent of the City Council that City
staff first review all requests for proclamations and certificates from individuals,
groups, and organizations and forward them to the Mayor and Mayor Pro Tem with a
finding as to whether the request complies with the terms of this resolution. The Mayor
and Mayor Pro Tem are charged with the administration of requests and may approve
or deny such requests at their discretion consistent with this resolution. No
commission or committee, individual council member, or other City official shall issue
a proclamation or certificate on behalf of the City of Palm Desert without prior approval
of the Mayor and Mayor Pro Tem.
SECTION 3. Eligibility Criteria. The Mayor and Mayor Pro Tem may consider
requests for proclamations and certificates on the following subjects:
A. Significant Matters of Interest: Raise public awareness about matters of
significance that impact the residents and businesses in the City.
B. Observances/Celebrations: To highlight a special period of observance,
celebration, or recognition for community, regional, state, or national
occasions.
C. Local Businesses, Services, or Organizations: Requests to honor
businesses, services, or philanthropic organizations that are located or
operate in the City, that provide a significant level of services to residents
and businesses in the City.
D. Individuals: Recognition of individuals for extraordinary achievement or
outstanding community service.
E. Local Sports Teams: Recognition of sports teams based in the City, upon
the accomplishment of noteworthy achievements, programs, or milestones.
Page 51 of 855
RESOLUTION NO. 2024-
F. In Memoriam: Requests to honor the life of long-time or prominent Palm
Desert residents upon their death.
G. City Officials/Staff: Requests to honor city officials and employees for their
achievements or milestones of service.
H. Partner Public Officials: Requests to honor public officials from other
public entities who served on boards, committees, or commissions on which
the Palm Desert City Council also serves, upon the completion of their term
of office or chairpersonship.
SECTION 4. Impermissible Subjects. City staff shall not process requests for
proclamations or certificates on the following subjects:
A. Candidates: Requests to support candidates for elected public office.
B. Religion/Politics: Requests of a religious or political nature.
C. Contrary Policies: Campaigns or events contrary to City policies.
SECTION 5. Submission of Requests on Other Subjects. If it is not clear
whether a request for a proclamation or certificate falls inside or outside of a
permissible category as provided in this Resolution, staff should submit the matter to
the Mayor and Mayor Pro Tem for their consideration and determination.
SECTION 6. Signatures. All proclamations are intended to be signed by the
full City Council. In the event that an individual Council Member declines to sign a
particular proclamation, the Mayor may determine whether to proceed with only the
Mayor’s signature or the balance of the City Council.
SECTION 7. Presentation at City Council Meetings. Presentation of
proclamations and recognitions should occur outside the City Council meeting, such
as a specified event, via mail, or personal delivery. When necessary, individual
proclamations and recognitions may be presented at City Council meetings and staff
should endeavor to schedule proclamations and recognitions so that the total time for
those items is no more than ten (10) minutes per meeting.
Section 8. Recognition of Outgoing Members. Recognition of outgoing
Board, Commission, Committee, or Task Force (“Appointed Bodies”) members or
residents appointed to an outside agency (such as the Coachella Valley Mosquito
Control District, Palm Springs International Airport Commission, and Joslyn Cove
Senior Center Board) shall occur as follows:
A. Incomplete/Partial Term: A Certificate of Recognition signed by the Mayor
and presented at the Appointed Body’s meeting by the assigned City
Council Liaison. In the case of the Planning Commission, the Mayor will be
requested to present the certificate at the meeting.
B. Completion of One Term or Service Totaling 4+ Years: Presentation of
a small “Thank You” clock or a similar item presented at the Appointed
Body’s meeting by the assigned City Council Liaison. In the case of the
Page 52 of 855
RESOLUTION NO. 2024-
Planning Commission, the Mayor will be requested to present the clock at
the meeting.
C. Completion of Two Terms or Service Totaling 8+ Years: Presentation of
a large “Thank You” clock or similar item presented at the Appointed Body’s
meeting by the assigned City Council Liaison. In the case of the Planning
Commission, the Mayor will be requested to present the clock at the
meeting.
D. Completion of Three or More Terms or Service Totaling 12+ Years:
Presentation of a large “Thank You” clock or similar item presented by the
Mayor at a City Council meeting.
E. Declining a Presentation: If the outgoing member declines a public
presentation, the certificate or clock may be mailed or picked up.
Section 9. Certification. The City Clerk shall certify the adoption of this
Resolution.
ADOPTED ON ________________, 2024.
KARINA QUINTANILLA
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
Page 53 of 855
RESOLUTION NO. 2024-
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2024-__ is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on
_______________________, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of Palm Desert, California, on ___________________.
ANTHONY J. MEJIA
CITY CLERK
Page 54 of 855
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Erika Castellano, Assistant to the City Council
REQUEST: ACCEPTANCE OF A RESIGNATION FROM THE MARKETING
COMMITTEE AND PARKS AND RECREATION COMMITTEE
RECOMMENDATION:
1. With regret, accept the resignation of Jan Hulahan from the Marketing Committee.
2. With regret, accept the resignation of Gerald Dawson from the Parks & Recreation
Committee.
BACKGROUND/ANALYSIS:
On December 10, 2020, Jan Hulahan was appointed to the Marketing Committee as a
representative of a large hotel (JW Marriott) for a term ending June 30, 2024. On March 20, Ms.
Hulahan informed the City she would be transferring to a different location, resulting in a vacated
seat as of April 2, 2024.
On June 24, 2021, Gerald Dawson was reappointed to the Parks & Recreation Committee for a
term ending June 30, 2025. On March 22, 2024, Mr. Dawson informed the City he would be
resigning effective April 2, 2024, resulting in a vacant seat.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
There is no fiscal impact associated with this action.
Page 55 of 855
Page 56 of 855
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: APPOINTMENTS TO THE BUILDING BOARD OF APPEALS
RECOMMENDATION:
Appoint John Greenwood, Lindsey Holt, and Nicholas Latkovic to the Building Board of Appeals
for terms ending June 30, 2024.
BACKGROUND/ANALYSIS:
Pursuant to Palm Desert Municipal Code Chapter 2.18, the Building Board of Appeals (Board)
is charged with hearing appeals regarding the interpretation of the California Building Code, and
condemnation and abatement of dangerous structures. The Board may ratify alternate materials
and methods of construction that are not specifically recognized in the Californ ia Building Code.
The Board is comprised of five members and their decisions are final unless appealed to the
City Council. In the past 10 years, no appeals have been filed and therefore the Board has not
met in the same period.
It is anticipated that an appeal may be filed soon requiring a hearing before the Board. Currently,
two out of five members (Joseph Gaugush and Allan Levin) are appointed to the Board , which
is less than a quorum. Due to the urgency of considering the anticipated appeal, staff reac hed
out to the City Council Ad Hoc Committee on Boards and Commissions, consisting of
Councilmember Kelly and Mayor Pro Tem Harnik, who expressed support for a proposal to waive
interviews and appoint two members of the Planning Commission and one member of the
Architectural Review Commission to serve shortened terms through June 30, 2024. If there are
any delays in considering the appeal, the City Council may be requested to extend the
appointments for an additional six months.
City staff reached out to several members of the Planning Commission and Architectural Review
Commission to solicit volunteers to serve on the Board. John Greenwood and Lindsey Holt, of
the Planning Commission, and Nicholas Latkovic, of the Architectural Review Commission,
agreed to serve if appointed.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
There is no fiscal impact associated with this action.
Page 57 of 855
Page 58 of 855
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: RATIFY LETTERS OF SUPPORT FOR THE CALIFORNIA STATE
UNIVERSITY, SAN BERNARDINO, AND CITY OF INDIAN WELLS
COMMUNITY PROJECT FUNDING REQUESTS
RECOMMENDATION:
1. Ratify issuance of a letter of support for the California State University, San Bernardino
(CSUSB), Community Project Funding request for the Artificial Intelligence and Virtual Reality
Research and Retraining Center and Nursing Street Medicine Program.
2. Ratify issuance of a letter of support for the City of Indian Wells’ Community Project Funding
request to rebuilding the Emergency Operation Center.
BACKGROUND/ANALYSIS:
At the request CSUSB and the City of Indian Wells, the City Council Ad Hoc Committee on
Legislative Affairs authorized issuance of the subject letters and the City Council is requested to
ratify issuance of the letters of support for the following projects:
CSUSB: To establish an Artificial Intelligence (AI) and Virtual Reality (VR) Research and
Retraining Center and expansion of the Nursing Street Medicine Program.
City of Indian Wells: Demolition, design, and reconstruction of the Indian Wells Emergency
Operations Center, estimated at approximately $3 million.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENTS:
1. CSUSB - Letter of Support
2. City of Indian Wells – Letter of Support
Page 59 of 855
Page 60 of 855
Page 61 of 855
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Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Andrea Staehle, Human Resources Manager
REQUEST: REQUEST FOR ADOPTION OF MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT
EMPLOYEE ORGANIZATION EFFECTIVE MARCH 25, 2024, THROUGH
JUNE 30, 2026
RECOMMENDATION:
1. Approve the Memorandum of Understanding (MOU) between the City of Palm Desert and the
Palm Desert Employee Organization (PDEO) effective March 25, 2024, through June 30, 2026.
2. Authorize the City Manager to take actions to implement the MOU between the City of Palm
Desert and PDEO.
BACKGROUND/ANALYSIS:
The City recognizes the Palm Desert Employees Organization as the bargaining unit for general
non-exempt and exempt non-supervisory employees. Due to the City acquiring library services,
which includes employees working less than 20 hours per week, PDEO and the City met to
negotiate and agree upon an MOU regarding compensation and working conditions for these
future employees.
The City and PDEO’s negotiations team met on March 25, 2024, due to the collaboration from
both sides, the MOU was agreed upon that same day.
A summary of the tentative agreements include:
Term: March 25, 2024, through June 30, 2026.
COLA: 3.25% (July 1, 2024); 3.0% (July 1, 2025)
Bilingual Pay: $25 per pay period (test to confirm)
Employees required to work July 4 will receive an additional floating holiday to be used
the same year.
Sick Leave: California State Sick Leave laws (40 hours, maximum of 80 hours)
Staff is requesting approval of the MOU, as well as authority for the City Manager to implement
the MOU.
Legal Review:
This report has been reviewed by the City Attorney’s office.
Page 67 of 855
City of Palm Desert
Adoption of PDEO and City MOU for PT Employees
Page 2 of 2
FINANCIAL IMPACT:
Adjustments were made at midyear to accommodate the anticipated addition of part -time staff
at the library. The current year’s costs will be absorbed by the General Fund, and future years
are anticipated to be offset by an increase in property tax revenues related to library services.
The fiscal impact of the agreement for part-time employees at the library is estimated at $68,000
for FY 2023-24, $430,000 for 2024-25, and $445,000 for FY 2025-26, if fully staffed.
ATTACHMENTS:
1. City of Palm Desert and PDEO Memorandum of Understanding effective March 25, 2024,
through June 30, 2026
Page 68 of 855
MOU March 25, 2024 – June 30, 2026
City of Palm Desert and Palm Desert Employees Organization
Memorandum of Understanding (MOU)
Part-Time Employee Negotiations (Less Than 20 Hours Per Week)
This agreement is between the City of Palm Desert (City) and the Palm Desert Employees
Organization (PDEO). This agreement is in effect March 25, 2024 – June 30, 2026.
Compensation – Salary Schedule
The Grade, Step and Wage Rates Schedule for employees covered by this Agreement is set
forth in the Allocated Positions and Salary Resolution adopted by the City Council.
Salaries will be increased by the following amounts on the first full pay period following the
effective date:
A. July 1, 2024: The salary schedule will increase by 3.25%.
B. July 1, 2025: The salary schedule will increase by 3.0%.
Compensation – July 4 Holiday
Employees scheduled to work on the July 4 holiday shall be credited with a floating holiday
equivalent to assigned hours, which must be used during the same calendar year.
Compensation – Bilingual Pay
Employees who have the ability to provide bilingual services in Spanish or a City Manager-
approved second language may be designated as a bilingual employee required to use their skills
as a part of their City employment. This designation must be made by the appropriate department
head and approved by the City Manager or designee in writing. Designated employees shall
receive a stipend of $25 per pay period. Eligible employees must successfully complete an initial
assessment test to receive such designation. An employee who fails the assessment test may re-
take the test every six (6) months. Employees on any form of leave time in excess of (1) month
shall be ineligible to receive bilingual pay until the employee returns to duty. Employees receiving
bilingual pay may be used by any department to provide bilingual services.
Sick Leave Accrual and Maximums
Part-time employees who are under 20 hours shall receive the required California Paid Sick
Leave, currently 40 hours. These employees shall be subject to a maximum sick leave of 80
hours. Such employees who reach the maximum shall cease to receive sick leave until such time
as their balance falls below 80 hours, at which time they will begin acquiring hours until they reach
the maximum.
DocuSign Envelope ID: B2E75CF8-9EAA-478D-9011-14F3696A7F26
Page 69 of 855
MOU March 25, 2024 – June 30, 2026
PDEO Board CITY
____ __________________ ____ _________________
Date John Urkov Date L. Todd Hileman
PDEO Board Member City Manager
____ __________________ ____ _________________
Date Alex Vasquez Date Andrea Staehle
PDEO Board Member Human Resources Manager
____ __________________ ____ _________________
Date Kevin Swartz Date Shannon Vonnegut
PDEO Board Member Assistant Director of Library Services
____ __________________ ____ _________________
Date Jose Rojas Date Shawn Muir
PDEO Board Member Community Services Manager
____ __________________
Date Amber Molina
Human Resources Analyst
____ __________________
Date Isra Shah
City Attorney
DocuSign Envelope ID: B2E75CF8-9EAA-478D-9011-14F3696A7F26
3/26/2024
3/26/2024
3/26/2024
3/27/2024
3/26/2024
3/27/2024
3/27/2024
3/27/2024
3/27/2024
4/2/2024
Page 70 of 855
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Chris Escobedo, Assistant City Manager
Daniel Hurtado, Public Safety Analyst
REQUEST: APPROVE A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY
OF PALM DESERT AND GLEN M. KAMMERER AND SHERILL R.
KAMMERER FOR AN APPROXIMATELY 1.01-ACRE SITE ON MOUNTAIN
VIEW, ASSESSOR’S PARCEL NO. 637-300-023
RECOMMENDATION:
1. Approve Purchase and Sale Agreement in substantial form for the acquisition of APN 637-
300-023.
2. Authorize the Director of Finance to appropriate $1,640,359 from undesignated General
Fund Reserve monies to Account No. 1104159-4219100 for the Mountain View Flood
Infrastructure Improvements Project.
3. Authorize the City Attorney to make any necessary nonmonetary changes to agreements.
4. Authorize the City Manager to execute all documents necessary to effectuate this action.
BACKGROUND/ANALYSIS:
Between August 2022 and January 2023, California received approximately a year’s worth of
rainfall. Due to the heavy rain, significant ponding occurs at the approximately 77700 block of
Mountain View creating unsafe driving conditions. Unfortunately, even during regular storms,
this area ponds up because of the street configuration having a sump condition.
The homeowners are inconvenienced since the nature of this street frequently creates a low
spot that can hold about 4’ of water. During the Hillary Storm, they not only experienced that
depth of water but also significant wave action as cars were routed off Washington Street trying
to pass through this area. These waves almost had water enter their homes. During another
storm, on trash day, there was ponding that caused their trash cans to float, discharging their
contents through the street and creating a health hazard.
There is a vacant lot priced at $453,000.00 at this sump location that may be purchased and
graded as a retention basin to help contain these excessive flows. The intent would be to contain
the normal rainfall, thereby making this a safer street to travel on, and the surrounding
homeowners will no longer be inconvenienced. It would also be designed in such a way as to
reduce or minimize the flooding of this street to the top of the curb, or at least less than 1’, during
extraordinary events. Public Works can then support other critical areas of the City during storm
events and this basin will help the water percolate into the ground quicker, to avoid vector
accumulation.
Approval of the Purchase and Sale Agreement would allow the City to acquire the parcel to serve
a public benefit to the neighborhood and those utilizing that road. Staff will incorporate this
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City of Palm Desert
(Purchase and Sale Agreement Between COPD and Kammerer)
Page 2 of 2
parcel acquisition into a Capital Improvement Project for fiscal year 2024/2025, which will include
the design and construction of the project.
Legal Review:
The City Attorney has reviewed and approved the report and Purchase and Sale Agreement.
Strategic Plan:
The proposed purchase and sale agreement and development of the subject property align with
the City’s Envision Palm Desert Strategic Plan in the following sections:
Transportation – Priority 1: Create walkable neighborhoods and areas within Palm Desert that
Would include residential; retail; services and employment centers; and parks, recreation, and
open space to reduce the use of low occupancy vehicles.
Public Safety & Emergency Services – Priority 3: Help the community be more prepared for
disasters and public safety emergencies.
FINANCIAL IMPACT:
The total consideration to be paid by the buyer to acquire the property $453,000. The preliminary
cost estimate for the project total is $1,172,359. The total costs are estimated below and upon
appropriation, this project will be paid from the General Services Disaster Emergencies Account
No. 1104159 – 4219100.
Preliminary Project Cost Estimate
Infrastructure $947,816
Land Acquisition $453,000
Land Acquisition Fees $15,000.00
Entitlements $29,150
20% Contingency $195,393
Total Project Costs $1,640,359
ATTACHMENTS:
1. Purchase and Sale Agreement
2. Preliminary Cost Estimate
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PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS
This PURCHASE AND SALE AGREEMENT AND ESCROW INSTRUCTIONS (the “Agreement”)
is dated as of March 28, 2024 (the “Execution Date”) and is entered into by and between Glen
M. Kammerer and Sherill R. Kammerer, (“SELLER”) and CITY OF PALM DESERT, a California
charter city (“BUYER”).
RECITALS
A. The SELLER is the owner of the fee simple interest in that certain property referenced
as Assessor ’s Parcel No. 637-300-023 in the City of Palm Desert consisting of five (1) parcels of
land totaling approximately 1.01 acres in total size (the “Property”), as described on Exhibit “A,”
attached hereto and made a part hereof by this reference.
B. SELLER and BUYER agree that the purchase price is Four Hundred Fifty Three
Thousand and 00/100 Dollars ($453,000.00) available immediately at close of escrow, and
BUYER agrees to the purchase of the property “AS-IS”, except as specifically provided in this
Agreement.
NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants
and obligations contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the SELLER and BUYER hereto agree as
follows:
Section 1. Recitals.
The recitals set forth above are true and correct and incorporated herein by this reference.
Section 2. Purchase and Sale of Property.
Subject to all of the terms, conditions, and provisions of this Agreement and for the
consideration set forth below, SELLER hereby agrees to sell, convey, and transfer to BUYER
and BUYER hereby agrees to acquire all of the right, title, and interest of SELLER in and to the
Property.
The Property will be conveyed to BUYER when the Purchase Price is paid in full in
accordance with this Agreement.
Section 3. Consideration.
The total consideration to be paid by BUYER for the acquisition of the Property shall be
FOUR HUNDRED FIFTY THREE THOUSAND AND 00/100 Dollars ($453,000.00) (the
“Purchase Price”). The Purchase Price shall be payable by BUYER to SELLER in accordance
with the following terms and conditions:
(a) Initial Deposit. Within three (3) Business Days following the Opening of Escrow
(as defined below), Buyer shall deposit into Escrow (as defined below) the sum of Twenty-Two
Thousand, Five Hundred Dollars ($22,500.00), in the form of cash, which amount shall serve as
an earnest money deposit (“Earnest Money Deposit” or “Deposit”).
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(b) Closing Deposit. The Purchase Price, less the Earnest Money Deposit (“Closing
Deposit”), shall be paid by Buyer to Escrow Agent, in the form of Cash, pursuant to Section 6.
(c) Notwithstanding anything herein to the contrary, One Hundred Dollars ($100.00)
of the Earnest Money Deposit (the "Independent Consideration") shall not be refundable to
BUYER, but shall represent consideration for this Agreement and shall be paid to SELLER. The
Independent Consideration shall be paid to SELLER upon Closing or upon termination of this
Agreement. The Independent Consideration shall serve as consideration for the granting of the
time periods herein contained for BUYER to exercise BUYER's right to satisfy and approve all of
BUYER's conditions herein contained and shall not be applied toward the Purchase Price.
(d) If directed by BUYER, the Deposit will be invested by Escrow Holder in an
interest-bearing account at a financial institution acceptable to BUYER and SELLER, and all
such interest shall accrue to the benefit of BUYER and be deemed part of the Deposit.
Section 4. Opening of Escrow.
(a) The transfer and sale of the Property shall take place through escrow (the
“Escrow”), and such Escrow shall be administered by Alissa Vatter of Fidelity National Title (or
Seller ’s Choice – Please indicate if so). The Escrow for the Property shall be deemed open
(“Opening of Escrow”) upon the receipt by the Escrow Holder of a copy of this Agreement
executed by SELLER and BUYER. The date of Opening of Escrow shall be memorialized by
Escrow Holder in writing delivered to the parties.
(c) If this Agreement is terminated or Escrow is cancelled as a result of a default by
SELLER, then SELLER shall be solely responsible to the Escrow Holder for payment of all
customary and reasonable escrow cancellation charges to the Escrow Holder without further or
separate instruction to the Escrow Holder. If this Agreement is terminated or Escrow is cancelled
for any reason other than SELLER’s default, then BUYER shall be solely responsible for the
payment of all customary and reasonable escrow cancellation charges to the Escrow Holder
without further or separate instruction to the Escrow Holder.
Section 5. Due Diligence Period.
(a) As used in this Agreement, the term “Due Diligence Period” shall refer to a period
of time to expire at 5:00 p.m., Pacific Time, on the date which is sixty (60) days from the
Opening of Escrow to allow the BUYER the opportunity to investigate the condition and
suitability of the Property for BUYER’s intended use. In the event BUYER finds the Property
unsatisfactory for any reason, at its sole discretion, BUYER shall notify SELLER and Escrow
Holder in writing prior to the expiration of the Due Diligence Period and, thereafter, SELLER and
BUYER shall have no further obligation to each other, Escrow shall be cancelled and this
Agreement shall automatically terminate on the date of such election and the parties shall each
be relieved and discharged from all further responsibility or liability under this Agreement and
BUYER’s failure to give written notice of termination to SELLER on or before the expiration of
the Due Diligence Period shall constitute an election by BUYER to waive the termination right
contemplated under this Section 5 and proceed with this Agreement, subject to all the other
terms and conditions of this Agreement.
(b) SELLER hereby grants to BUYER for use by BUYER and its officers, directors,
employees, agents, representatives, tenants, prospective tenants, contractors, and other
persons accessing the Property by, through or with the permission or under the direction or
auspices of BUYER, a limited and revocable license to enter upon the Property for purposes of
(a) conducting BUYER’s due diligence inspection and/or (b) obtaining data and making surveys
and tests, determined reasonably necessary by BUYER to permit it to determine the physical
condition of the Property and any hazardous substances located thereon and to determine the
suitability of the Property for BUYER’s purposes, provided that, BUYER shall (i) give the
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SELLER forty eight (48) hours telephonic, electronic mail or written notice of any intended
access which involves work on the Property; and (ii) conduct no Invasive Investigations without
the written consent of the SELLER. In this regard, the term “Invasive Investigations” means
and refers to environmental testing, sampling, invasive testing, or boring into the soils. If
BUYER desires to conduct any Invasive Investigations, it will first provide SELLER with a written
statement describing the scope of any such Invasive Investigations. SELLER will not
unreasonably withhold, condition, or delay its consent to any such Invasive Investigations and
will be deemed to have given its consent to the specified scope of such Invasive Investigations if
SELLER does not (within three (3) business days following receipt of the proposed scope of
such Invasive Investigations) give BUYER a written statement identifying those items to which
SELLER has an objection.
(c) If not already provided by SELLER to BUYER, within five (5) days following the
Opening of Escrow, SELLER shall deliver to BUYER copies of the following materials (the
“Property Information”) which SELLER or any affiliate of SELLER has in its possession, or to
which SELLER or any affiliate of SELLER has access through the exercise of commercially
reasonable efforts:
(i) Copies of any existing title policy/commitment and any existing survey in
SELLER’s possession or control that relate to the Property, including complete and
legible copies of all instruments referred to in the title policy or commitment as conditions
or exceptions to the title of the Property;
(ii) All environmental reports, engineering studies, soil-bearing test data and
any similar reports and studies with respect to the Property;
(iii) All existing documents relating to the development rights pertaining to the
Property, including, without limitation, zoning, site plan, concurrency and other
developmental governmental permits and approvals; pending applications for approvals
and permits and materials in support of any such applications; and developer
agreements or other agreements with governmental entities;
(iv) All current tenant leases with any and all amendments;
(v) All service contracts, warranties, and tenant correspondence relating to
the Property;
(vi) Any declarations of easements, covenants and restrictions and/or
property owners’ association documents which pertain to the Property and any drafts of
any easements or declarations proposed to affect any portion of the Property; and
(vii) Such other items in Seller ’s possession or under Seller ’s control that
BUYER may reasonably request in connection with its inspection of the Property and
determination of the feasibility of the Project.
(d) Upon BUYER’s receipt of any Property Information, BUYER shall have the
unrestricted right to use such information, including reports and studies, in connection with
BUYER’s review of the Property and BUYER’s efforts to obtain its permits and approvals;
provided that any such use shall be without any representation or warranty from Seller of any
kind as to any information contained in such Property Information. BUYER shall have the right
to make copies of same at BUYER’s expense and to distribute the same to its attorneys and
consultants. To the extent that any new or updated information pertaining to the Property is
received by SELLER or any of its agents or employees while this Agreement is in effect,
SELLER promptly shall deliver a true, correct and complete copy of such new and/or updated
information to BUYER.
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Section 6. City Council Approval. As a condition precedent to BUYER’s obligation to
purchase the Property, BUYER’s city council shall have approved this Agreement and the
purchase of the Property (“Final Approval”). Notwithstanding anything to the contrary contained
herein, as of the date of this Agreement, said Final Approval has not yet been granted. Absent
Final Approval, BUYER shall have no obligation to purchase the Property from SELLER or
otherwise perform under this Agreement. BUYER’s representatives shall diligently pursue said
approval. Upon final consideration of this Agreement by the BUYER’s legislative body, the
BUYER shall issue formal notice to the Seller whether Final Approval is granted or denied. In
the event that Final Approval is denied (i) this Agreement shall be terminated and neither party
shall have any further rights or obligations hereunder, excepting any rights or obligations that
expressly survive termination, (ii) the escrow shall be canceled, and (iii) all documents and
funds shall be returned by the Escrow Holder to each party who deposited the same.
Section 7. Close of Escrow.
(a) As used herein, “Close of Escrow” means and refers to the date on which the
conditions set forth in this Agreement for the close of Escrow for the transfer of the Property
have been satisfied, and the Deed is recorded by the Escrow Holder. The Property shall be
transferred to BUYER at the Close of Escrow, provided that within the periods of time set forth in
this Agreement provided: (i) BUYER has not terminated this Agreement, (ii) BUYER has
accepted the Deed, and (iii) all other conditions of the Close of Escrow set forth in this
Agreement have been met and BUYER has paid, or caused to be paid to the Escrow Holder all
applicable escrow costs relating to such closing. The Close of Escrow shall occur on a date
designated by BUYER (on advance notice to SELLER) no later than thirty (30) days after the
later of (i) the expiration of the due diligence period or (ii) Final Approval.
(b) Conditions to Buyer ’s Performance. BUYER’s obligation to consummate the
Close of Escrow is conditioned on all of the following:
(1) SELLER’s Closing Deliveries. At Close of Escrow, SELLER shall deliver
the following to the Escrow Holder:
(i)The Deed, executed and acknowledged by SELLER, in the form
attached as Exhibit B.
(ii)an affidavit of non-foreign status of SELLER under the Foreign
Investment in Real Property Tax Act.
(iii)a settlement statement showing both the SELLER’s and the
BUYER’s credi ts and debits consistent with this Agreement (the “Settlement
Statement”).
(iv)any transfer declarations required by applicable law;
(v)an owner ’s affidavit in form and substance reasonably acceptable
to Escrow Holder to delete the non-survey related standard, pre-printed exceptions.
(vi)any other customary closing documents in form and substance
reasonably satisfactory to SELLER and BUYER to consummate the Transaction.
(2)Pre-Existing Obligations. There shall exist no leases, contracts or rights
of occupancy or other agreements or contracts with respect to the Property entered into
by SELLER that shall survive the Close of Escrow.
(3)Title Conditions Satisfied. The Escrow Holder shall be in a position to
issue the Title Policy to BUYER in the amount of the Purchase Price with respect to the
Property and subject only to the exceptions permitted by Section 9 of this Agreement.
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(4)SELLER’s Deliveries Complete. SELLER shall have delivered all of the
documents and other items required pursuant to Section 7(b)(1) and shall have
performed all other material obligations under this Agreement to be performed by
SELLER at or prior to the Close of Escrow provided that SELLER shall have a
reasonable opportunity to cure any such default after receiving written notice thereof
from BUYER.
(5)Representations True. All representations and warranties made by
SELLER in this Agreement shall be true and correct in all material respects on and as of
the Close of Escrow, as if made on and as of such date.
(c)Conditions to SELLER's Performance. SELLER's obligation to consummate the
Close of Escrow is conditioned on all of the following:
(1)BUYER's Closing Deliveries. At the Close of Escrow, BUYER shall
deliver the following:
(i)The Purchase Price less the Deposit, as adjusted for
apportionments and other adjustments required under this Agreement, plus any other
amounts required to be paid by BUYER at the Close of Escrow.
(ii)The Settlement Statement.
(iii)any transfer declarations required by applicable law;
(iv)any other customary closing documents in form and
substance reasonably satisfactory to BUYER to consummate the Transaction.
(2)BUYER's Deliveries Complete. BUYER shall have delivered all of
the documents and other items required pursuant to Section 6(c)(1) and shall have
performed all other material obligations to be performed by BUYER at or prior to the
Close of Escrow provided that BUYER shall have a reasonable opportunity to cure any
such default after receiving written notice thereof from SELLER.
(3)Representations True. All representations and warranties made
by BUYER in this Agreement shall be true and correct in all material respects on and as
of the Closing Date, as if made on and as of such date.
Section 8. Escrow Instructions.
SELLER and BUYER each agree to execute and deliver to the Escrow Holder the
customary supplemental written escrow instructions (consistent with the terms of this
Agreement) of the Escrow Holder. In the event of a conflict between the additional terms of
such customary supplemental escrow instructions of the Escrow Holder and the provisions of
this Agreement, this Agreement shall supersede and be controlling. Upon any termination of
this Agreement or cancellation of the Escrow, except as results from the default of SELLER,
BUYER shall be solely responsible for the payment of the escrow cancellation costs of the
Escrow Holder.
Section 9. Conveyance of Title.
(a) On or before the Close of Escrow, SELLER shall deliver to the Escrow Holder the
Grant Deed, in form attached hereto as Exhibit “B” (the “Deed”) duly executed and
acknowledged by SELLER. The Deed shall grant fee simple marketable title to the Property to
BUYER. The Escrow Holder shall be instructed to record the Deed in the Official Records of
Riverside County, California, if and when the Escrow Holder holds the funds for the SELLER as
set forth herein.
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(b) Within five (5) days following the Opening of Escrow, SELLER shall use
commercially reasonable efforts to cause to be delivered or otherwise made available to
BUYER a current preliminary report from a title company of BUYER’s choice (the “Title
Company”) covering the Property, together with full and legible copies of all supporting
documents (collectively, “Preliminary Report”), and may further order a survey of the Property
from a licensed surveyor sufficient to obtain an ALTA title insurance policy (“Survey”). The Title
Company shall issue an ALTA Owner ’s policy (“Title Policy”) at the Close of Escrow insuring fee
title in BUYER, subject only to the following matters:
(1) a lien for real property taxes, bond, or assessments not then
delinquent;
(2) matters of the Property’s title not disapproved by BUYER in
writing;
(3) all matters that affect title to the Property that would be revealed
by an accurate and complete survey of the Property as of the end of the Inspection Period;
(4) dedication of all streets abutting the Property;
(5) customary utility rights-of-way and easements that do not
materially interfere with the existing use of the Property;
(6) zoning and other governmental restrictions;
(7) matters common to any general area or subdivision in which the
Property is located;
(8) matters affecting the condition of the Property’s title created by or
with the consent of the BUYER or BUYER’s officers, employees or agents.
(9) such other title exceptions, if any, resulting from documents being
recorded or delivered through Escrow.
Section 10. Inspections and Review.
(a) BUYER acknowledges and agrees that the Property is being conveyed in
an "AS IS," “WHERE IS” condition and "WITH ALL FAULTS" as of the date of this Agreement
and the date of Close of Escrow. Except as expressly set forth in this Agreement, no
representations or warranties have been made or are made and no responsibility has been or is
assumed by SELLER or by any officer, person, firm, agent or representative acting or purporting
to act on behalf of SELLER as to the condition or repair of the Property or the value, expense of
operation, or income potential thereof, or as to any other fact or condition which has or might
affect the Property or the condition, repair, value, expense of operation or income potential of
the Property or any portion thereof. BUYER further acknowledges and agrees that it has relied
solely upon its own investigations of the Property and its own review of such information and
documentation as it has deemed appropriate and is satisfied with the opportunity afforded for
investigation. BUYER is not relying upon any statement or representation by SELLER or by any
officer, person, firm, agent or representative acting or purporting to act on behalf of SELLER
unless such statement or representation is specifically embodied in this Agreement, or the
Exhibits attached hereto. Except as expressly set forth herein, SELLER makes no
representations or warranties as to whether the Property contains any Hazardous Materials or
pertaining to the extent, location or nature of the same. Further, to the extent that SELLER has
provided to BUYER information from any inspection, engineering or environmental reports
concerning any Hazardous Materials, SELLER makes no representations or warranties with
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respect to the accuracy, completeness, methodology of preparation or otherwise concerning the
contents of such reports.
(b) The provisions of this Section 10 shall survive the Close of Escrow and
shall be binding upon BUYER.
(c) SELLER shall assist and cooperate with BUYER in endeavoring to
remove title exceptions unacceptable to BUYER, but SELLER shall have no obligation to cause
such objections to be removed or to expend any sums in such endeavor, except that SELLER
shall remove all monetary liens and encumbrances created by or as a result of SELLER’s
activities.
(e) SELLER covenants not to further encumber and not to place any further
liens or encumbrances on the Property, including, but not limited to, covenants, conditions,
restrictions, easements, liens, options to purchase, rights of first offer options to lease, leases,
tenancies, or other possessory interests.
(f) SELLER covenants not to authorize others to take any action that
adversely affects the physical condition of the Property or its soils to any material extent.
Section 11. Closing Costs, Possession.
(a) SELLER shall pay: (i) the cost of recording any releases of mortgages,
liens or encumbrances as required hereunder; (ii) one half of Escrow Agent’s fees and costs for
the Escrow, (iii) the cost of an ALTA Standard Owner ’s Policy in the amount of the Purchase
Price, (iv) Seller ’s share of prorations, and (v) Seller ’s attorneys’ fees. BUYER shall pay (i) the
premium for any requested ALTA extended coverage title policy, cost of the Survey and all
requested ALTA survey policy endorsements, (ii) the cost of recording the Deed and any
documentary or other transfer taxes payable on account of the conveyance of the Property to
BUYER, (iii) one half of Escrow Agent’s fees and costs for the Escrow; (iv) BUYER’s share of
prorations, and (v) Buyer ’s attorneys’ fees. Any other costs shall be divided among the parties
in accordance with practices as are customary for similar transactions in the region where the
Property is located.
(b) BUYER shall be entitled to exclusive possession of the Property
immediately upon the Close of Escrow.
Section 12. Representations and Warranties.
(a) SELLER hereby makes the following representations, covenants and
warranties:
(1) Power and Authority. SELLER has the legal power, right and
authority to enter into this Agreement and to execute the instruments and documents referenced
herein, and to consummate the transaction contemplated hereby.
(2) Requisite Action. SELLER has taken all requisite action and
obtained all requisite consents in connection with entering into this Agreement and the
instruments and documents referenced herein and the consummation of the transactions
contemplated hereby, and no consent of any other party is required.
(3) Enforceability of Agreement. The persons executing this
Agreement and any instrument or document referenced herein for or on behalf of SELLER have
been duly authorized to so act on behalf of SELLER and this Agreement and any such
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instrument or document is valid and legally binding on SELLER and enforceable against
SELLER in accordance with their respective terms.
(4) _No Litigation. There is no pending or, to the best of SELLER’s
knowledge, threatened claims, action, allegations or lawsuit of any kind, whether for personal
injury, property damage, property taxes, or otherwise, that could affect the Property.
(5) No Violation. Neither the execution of this Agreement or the other
instruments and documents referenced herein nor the performance by SELLER of its
obligations hereunder and thereunder shall result in a breach or constitute a default under any
agreement, document, instrument or other obligation to which SELLER is a party or by which
SELLER may be bound or under law, statute, ordinance, rule, governmental regulation, state
constitution, or any writ, injunction, order or decree of any court or governmental body
applicable to SELLER.
(6) Operation and Condition Pending Closing. Between the date of
this Agreement and the Close of Escrow hereunder, SELLER will continue to manage, operate,
and maintain the Property in the same manner as existed prior to the execution of this
Agreement.
(7) Contracts. There are no contracts or agreements to which
SELLER is a party relating to the operation, maintenance, development, improvement, or
ownership of the Property which will survive the Close of Escrow.
(8) Hazardous Substances. To SELLER’s knowledge, after due
inquiry, except as disclosed in any Phase I Environmental Inspection Report delivered by
SELLER to BUYER (the “Environmental Report”), the Property has not been used to generate,
manufacture, refine, transport, treat, store, handle, dispose, transfer, produce, or process
Hazardous Substances (defined below) or solid waste, except in compliance with all applicable
federal, state, and local laws, rules, and regulations, and Seller has not caused or knowingly
permitted and has no knowledge of the presence or any Release (defined below) of any
Hazardous Substances on or offsite the Property. For the purposes of this Agreement,
“Hazardous Substances” shall include, without limitation, asbestos, polychlorinated biphenyls,
and petroleum (including crude oil or any fraction thereof), and materials or substances defined
as “hazardous waste,” “hazardous substances,” “hazardous materials,” “pollutants,” or “toxic
substances” in the Comprehensive Environmental Response Compensation and Liability Act of
1980, as amended by the Superfund Amendments and Reauthorization Act of 1986 (PL
99-499); the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et. seq.; the Toxic
Substance Control Act, 15 U.S.C. Section 2601, et. seq.; the Resource Conservation and
Recovery Act, as amended, 42 U.S.C. Section 6901, et. seq.; the Federal Water Pollution
Control Act, as amended, 33 U.S.C. Section 1251, et. seq.; any environmental law promulgated
by the State of California; and in the rules or regulations adopted and guidelines promulgated
pursuant to said laws. “Release” shall mean releasing, spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, disposing or dumping.
All representations and warranties contained in this Section 12(a) are true and correct on
the date hereof and on the date of the Close of Escrow and shall survive the Close of Escrow.
(b) Warranties and Representations by BUYER. BUYER hereby makes the
following representations, covenants and warranties and acknowledges that the execution of
this Agreement by SELLER has been made in material reliance by SELLER on such covenants,
representations, and warranties:
(1) Subject to the Final Approval, BUYER has the legal right, power
and authority to enter into this Agreement and the instruments and documents referenced
herein and to consummate the transactions contemplated hereby. The persons executing this
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Agreement and such other instruments as may be referenced herein on behalf of BUYER
hereby represent and warrant that such persons have the power, right and authority to bind
BUYER.
(2) Except for the Final Approval, BUYER has taken all requisite
action and obtained all requisite consents in connection with entering into this Agreement and
the instruments and documents referenced herein and the consummation of the transactions
contemplated hereby, and no consent of any other party is required.
(3) Subject to the Final Approval, this Agreement is, and all
instruments and documents to be executed by BUYER pursuant to this Agreement shall be, duly
executed by and are or shall be valid and legally binding upon BUYER and enforceable in
accordance with their respective terms.
(4) Subject to the Final Approval, neither the execution of this
Agreement nor the consummation of the transaction contemplated hereby shall result in a
breach of or constitute a default under any other agreement, document, instrument, or other
obligation to which BUYER is a party or by which BUYER may be bound, or under law, statute,
ordinance, rule governmental regulation or any writ, injunction, order or decree of any court or
governmental body applicable to BUYER.
All representations and warranties contained in this Section 12(b) are true and correct on
the date hereof and on the date of the Close of Escrow and shall survive the Close of Escrow.
Section 13. Conflict of Interest.
No member, official or employee of either party having any conflict of interest, direct or
indirect, related to this Agreement and the use and development of the Property shall participate
in any decision relating to the Agreement. The parties represent and warrant that they do not
have knowledge of any such conflict of interest.
Section 14. Nonliability of Officials and Employees.
No officer, official or employee of either party shall be personally liable to the other party,
or any successor in interest of such other party, in the event of any default or breach or for any
amount which may become due hereunder, or on any obligations under the terms of this
Agreement.
Section 15. Indemnification.
BUYER agrees to indemnify and hold SELLER and its officers, employees, and agents
harmless from and against all damages, judgments, costs, expenses, and attorney’s fees
arising from or related to any act or omission of BUYER in performing its investigations of the
Property, except to the extent caused by the gross negligence or willful misconduct of SELLER.
SELLER shall give BUYER written notice of the occurrence of a claim, litigation or other matters
for which SELLER seeks indemnity under this Section as promptly as practicable following
SELLER’S knowledge of the occurrence of such matter and SELLER shall reasonably
cooperate with BUYER in the defense of any such claim or matter and shall not take any action
that would adversely affect BUYER’s defense of such matter.
Section 16. Default.
(a) Default by Buyer; Limitation on Liability; Liquidated Damages. IF BUYER
REFUSES OR FAILS TO CONSUMMATE THE CLOSE OF ESCROW UNDER THIS
AGREEMENT FOR ANY REASON OTHER THAN: (I) THE FAILURE OF AN EXPRESS
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CONDITION PRECEDENT TO BUYER’S OBLIGATION TO CLOSE, OR (II) ANY OTHER
EXPRESS RIGHT OF BUYER SET FORTH IN THIS AGREEMENT TO TERMINATE THIS
AGREEMENT, AND IF BUYER FAILS TO CURE ANY SUCH FAILURE TO COMPLETE THE
CLOSE OF ESCROW WITHIN TEN (10) DAYS FOLLOWING RECEIPT OF A WRITTEN
NOTICE FROM SELLER INDICATING THE NATURE OF ANY DEFAULT ON THE PART OF
BUYER, THE SELLER SHALL RETAIN THE DEPOSIT, PLUS ANY INTEREST ACCRUED
THEREON, AS SELLER’S SOLE REMEDY FOR BUYER’S FAILURE TO CLOSE OR FOR
ANY DEFAULT ON THE PART OF BUYER UNDER THIS AGREEMENT, AND IN SUCH A
CASE, BOTH PARTIES SHALL BE RELIEVED OF AND RELEASED FROM ANY FURTHER
LIABILITY HEREUNDER. THE PARTIES HAVE AGREED THAT SELLER'S ACTUAL
DAMAGES, IN THE EVENT OF A DEFAULT BY BUYER, WOULD BE EXTREMELY
DIFFICULT OR IMPRACTICABLE TO DETERMINE. SELLER AND BUYER AGREE THAT
THE DEPOSIT, PLUS ANY INTEREST ACCRUED THEREON, IS A FAIR AND REASONABLE
AMOUNT TO BE RETAINED BY SELLER AS AGREED AS LIQUIDATED DAMAGES IN
LIGHT OF SELLER’S REMOVAL OF THE PROPERTY FROM THE MARKET AND THE
COSTS INCURRED BY SELLER AND SHALL NOT CONSTITUTE A PENALTY OR A
FORFEITURE.
BY PLACING ITS INITIALS BELOW, EACH PARTY SPECIFICALLY CONFIRMS THE
ACCURACY OF THE STATEMENTS MADE ABOVE AND THE FACT THAT EACH PARTY
WAS REPRESENTED BY COUNSEL WHO EXPLAINED, AT THE TIME THIS AGREEMENT
WAS MADE, THE CONSEQUENCES OF THIS LIQUIDATED DAMAGES PROVISION.
INITIALS: SELLER: BUYER:
(b) Default By Seller; Other Failure To Consummate Agreement. IN THE
EVENT OF ANY DEFAULT ON THE PART OF SELLER UNDER THIS AGREEMENT, WHICH
SELLER FAILS TO CURE WITHIN TEN (10) DAYS FOLLOWING RECEIPT OF A WRITTEN
NOTICE, BUYER SHALL HAVE THE RIGHT, IN BUYER’S SOLE DISCRETION AND AS ITS
SOLE AND ONLY REMEDIES HEREUNDER TO THE EXCLUSION OF ALL OTHER
POTENTIAL REMEDIES, TO EITHER (I) TERMINATE THIS AGREEMENT AND RECEIVE
THE DEPOSIT PLUS ANY INTEREST ACCRUED THEREON, AND RECEIVE FROM SELLER
ALL OF PURCHASER’S OUT OF POCKET THIRD PARTY COSTS AND EXPENSES IN
CONNECTION WITH THIS TRANSACTION, IN WHICH EVENT THIS AGREEMENT SHALL
AUTOMATICALLY TERMINATE AND BE OF NO FURTHER FORCE OR EFFECT AND
NEITHER PARTY SHALL HAVE ANY FURTHER RIGHTS OR OBLIGATIONS HEREUNDER,
OTHER THAN PURSUANT TO ANY PROVISION HEREOF WHICH EXPRESSLY SURVIVES
THE TERMINATION OF THIS AGREEMENT; (II) BRING AN ACTION FOR SPECIFIC
PERFORMANCE; OR (III) WAIVE SUCH FAILURE OR BREACH AND PROCEED TO
CONSUMMATE THE PURCHASE OF THE PROPERTY, WAIVING ANY CLAIM AGAINST
SELLER AND RELEASING SELLER FROM ANY LIABILITY OR OBLIGATIONS IN
CONNECTION THEREWITH (PROVIDED THAT IN NO EVENT SHALL PURCHASER HAVE
THE RIGHT TO WAIVE ANY OF SELLER’S CONDITIONS PRECEDENT HEREUNDER).
INITIALS: SELLER: BUYER:
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Section 17. Broker Commissions. SELLER and BUYER each represent and warrant to the
other that no real estate agent or broker was involved in negotiating the transaction
contemplated herein except for CBRE, Inc. (Marco Rossetti, Brian Hutcherson and Matraya
Homans) (“BUYER’s Broker”) and The Pena Group (“Seller ’s Broker”). Buyer will pay to its
representative CBRE, Inc. a 3% commission for its efforts hereunder at the Close of Escrow,
separate and independent of the Purchase Price. Seller shall pay the Seller ’s Broker, The Pena
Group, a 3% commission at the Close of Escrow. In the event any other claims for real estate
commissions, fees or compensation (collectively “Compensation”) arise in connection with this
transaction, the party so incurring or causing such claims agrees to indemnify, defend and hold
harmless the other party from any loss or damage, including attorneys’ fees, which said other
party suffers because of said claims. Neither BUYER nor SELLER shall have any liability to
BUYER’s Broker if this transaction should fail to close for any reason whatsoever.
Section 18. Natural Hazard Disclosures. As used herein, the term “Natural Hazard Area”
shall mean those areas identified as natural hazard areas or natural hazards in the Natural
Hazard Disclosure Act, California Government Code Sections 8589.3, 8589.4 and 51183.5, and
California Public Resources Code Sections 2621.9, 2694 and 4136, and any successor statutes
or laws (collectively, the “Natural Hazards Laws”). SELLER shall provide BUYER with a Natural
Hazard Disclosure Statement (“Disclosure Statement”) in a form required by the Natural
Hazards Laws by not less than twenty (20) days prior to the end of the Due Diligence Period.
BUYER acknowledges that SELLER will retain the services of Escrow Holder, or its agent, to
examine the maps and other information made available to the public by government agencies
for the purpose of enabling SELLER to fulfill its disclosure obligations with respect to the Natural
Hazards Laws and to prepare the written report of the result of its examination (“Natural
Hazards Report”). BUYER acknowledges that the Natural Hazards Report will fully and
completely discharge SELLER from its disclosure obligations under the Natural Hazards Laws
and under California Civil Code Sections 1102 through 1102.17. BUYER acknowledges and
agrees that nothing contained in the Disclosure Statement releases BUYER from its obligation
to fully investigate and satisfy itself with the condition of the Property, including, without
limitation, whether the Property is located in any Natural Hazard Area. BUYER further
acknowledges and agrees that the matters set forth in the Disclosure Statement or Natural
Hazards Report may change on or prior to the Closing and that SELLER has no obligation to
update, modify or supplement the Disclosure Statement or Natural Hazards Report.
Section 19. Time of the Essence.
Time is of the essence with respect to the Close of Escrow and all of the provisions of
this Agreement.
Section 20. Miscellaneous.
(a) This Agreement may be executed in multiple counterparts, each of which
shall be deemed an original and together shall constitute one and the same agreement, with
one counterpart being delivered to each party hereto.
(b) All periods of time referred to in this Agreement shall include all
Saturdays, Sundays and state or national holidays, provided that if the date or last date to
perform any act or give any notice with respect to this Agreement shall fall on a Friday,
Saturday, Sunday or state or national holiday, such act or notice may be timely performed or
given on the next succeeding day which is not a Friday, Saturday, Sunday or state or national
holiday.
(c) The unenforceability, invalidity, or illegality of any provision of this
Agreement shall not render the other provisions hereof unenforceable, invalid, or illegal.
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Section 21 Entire Agreement
(a) This Agreement and the exhibits attached hereto constitute the entire
understanding and Agreement of the parties.
(b) This Agreement integrates all of the terms and conditions mentioned
herein or incidental hereto with respect to the Property.
(c) The headings to the paragraphs of this Agreement are for convenience of
reference only, do not form a part of this Agreement and shall not in any way affect its
interpretation.
REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY
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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
as of the dates set forth below.
BUYER:
CITY OF PALM DESERT,
a California charter city
By: __________________________________ Date: ____________________
L. Todd Hileman, City Manager
ATTEST: APPROVED AS TO LEGAL FORM:
By: ____________________________ By: __________________________
Anthony Mejia, MMC, City Clerk City Attorney, Best Best & Krieger LLC
Date: __________________________ Date: ________________________
SELLER:
Glen M. Kammerer
By: ____________________________ Date: ___________________
Title:_____________________________________
Sherill R. Kammerer
By: ____________________________ Date: ___________________
Title:_____________________________________
EXHIBIT “A”
Legal Description
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APN 637-300-023 described as five (1) parcels of land totaling approximately 1.01 acres.
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EXHIBIT B
Form of Deed
[See attached]
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(Space Above This Line for Recorder ’s Use Only)
GRANT DEED
For valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the _____________________________________(“Grantor”), hereby grants to City of Palm
Desert, a California charter city (“Grantee”), the real property (the “Property”) located in the
City of Palm Desert, County of Riverside, California, known as [PROPERTY ADDRESS] and
more particularly described in Attachment No. 1 attached hereto and incorporated in this grant
deed (“Grant Deed”) by reference.
RECORDING REQUESTED BY AND
AFTER RECORDATION MAIL TO:
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, California 92260
Attention: Economic Development Director
This document is exempt from the payment of a recording fee
pursuant to Government Code §§ 6103, 27383
GRANTOR:
Date: _______________________, 20__By:[form document – do not execute]
Name:
[SIGNATURE MUST BE NOTARIZED]
Title:
Date: _______________________, 20__By:[form document – do not execute]
Name:
[SIGNATURE MUST BE NOTARIZED]
Title:
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ACK N OWLEDGME NTS
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.
On ____________________, before me, ____________________________, a Notary Public, personally
appeared _______________________________, who proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
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.
On ____________________, before me, ____________________________, a Notary Public, personally
appeared _______________________________, who proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
State of California )
County of ______________)
Signature
State of California )
County of _______________)
Signature
Authentisign ID: E8508466-7FEF-EE11-AAF0-6045BDDAA143
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ATTACHMENT NO. 1
LEGAL DESCRIPTIO N – PROPERTY
APN 637-300-023 described as five (1) parcels of land totaling approximately 1.01
acres.
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[CERTIFICATE OF ACCEPTANCE TO BE ATTACHED FOR RECORDING]
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Description Quantity Unit Unit Price Total Price
Planning (CUP)1 EA 2,000.00$ 2,000$
Preliminary Engineering 1 EA 20,000.00 20,000
Environmental Package 1 EA - -
Mitigation / Legal 1 EA 2,000.00 2,000
Agency Fees & Processing 1 EA 2,500.00 2,500
Miscellaneous 10%26,500.00 2,650
Total Entitlements 29,150$
Grading
Mobilization 1 LS 2,500.00$ 2,500$
Tribal Monitoring 1 MO - -
Earthwork 5,000 CY 20.00 100,000
Import - CY 10.00 -
Clear & Grub 1 AC 2,500.00 2,500
Erosion Control 1 AC 1,000.00 1,000
Storm Drain protection - LS 35,000.00 -
Construction Water/Sewer 1 MO 10,000.00 10,000
Sub Total Grading 116,000$
Pavement
Asphalt, Concrete Curb & Gutter
Remove & Replace existing gravel - SF 0.50$ -$
Pavement (3"AC/4"AB)- SF 3.50 -
6' PCC Sidewalk 900 LF 20.00 18,000
6" Curb - LF 19.00 -
6" Curb & Gutter - LF 25.00 -
Lighting 1 LS 10,000.00 10,000
Landscaping 1 LS 100,000.00 100,000
Landscape furniture 1 LS 25,000.00 50,000
Storm Drain Drywells 1 EA 25,000.00 25,000
Sub Total Paving 203,000$
Miscellaneous
Professional
Engineering 8.0%348,150$ 27,852$
Surveying 6.0%348,150 20,889
Legal & Title (CC&R's)0.0%348,150 -
Landscape Architect 10.0%348,150 34,815
Agency
Permits, Fees & Utilities 10.0%348,150 34,815
Bonds & Assurities 3.0%348,150 10,445
Land Acquisition 1 LS 500,000 500,000
Structures
Underground Electric - LF 150.00 -
Gas - LF 50.00 -
Misc Utility Trenching - LF 60.00 -
Sub Total Miscellaneous 628,816$
Sub Total Infrastructure 947,816$
Sub Total Entitlements 29,150$
20%Contingency 195,393
Total Project Costs 1,172,359$
This estimate represents best information & assumptions only. There are no representation concerning the estimated quantities and cost figures other than that all such
figures are estimates only; remember that fluctuations in construction cost factors or the actual quantities depicted at the time of bidding and/or construction can vary
greatly.
Mountain View Park / Retention Basin
637-300-023
Preliminary Cost Estimate
ENTITLEMENTS
INFRASTRUCTURE
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Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: APPROVE CHANGE ORDERS/AMENDMENT TO CONTRACTS NO.
C44620A-E FOR ON-CALL FACILITIES REPAIRS & IMPROVEMENTS IN
THE AMOUNT OF $1,500,000 (PROJECT NO. MFA00009)
RECOMMENDATION:
1. Approve the increase of the annual aggregate amount to Contracts C44620A-E from
$3,000,000 to $4,500,0000 for On-call Facilities Repairs & Improvements.
2. Authorize the City Manager to review and approve up to two, one-year extensions per vendor
contract for an aggregated amount not to exceed $4,500,000.
3. Authorize the City Manager or designee to review and approve change orders for
unanticipated conditions per Section 3.30.170 Section A of Ordinance No. 1335.
4. Authorize the City Manager to execute the change orders and amendments.
BACKGROUND/ANALYSIS:
On January 12, 2023, and August 24, 2023, the City Council awarded the On-Call Facilities
Repairs and Improvements Project contracts to:
1. PUB Construction, Inc. of Diamond Bar, California (C44620A)
2. Belfor USA Group of Riverside, California (C44620B)
3. Elite Customs Construction of San Jacinto, California (C44620C)
4. R&R B Inc dba Servpro of Chino/Chino Hills (C44620D)
5. Doug Wall Construction of Bermuda Dunes, California (C44620E)
The first three contracts were awarded in an aggregate amount not to exceed $750,000 per
fiscal year for three years. On April 27, 2023, the contracts were increased to an annual
aggregate contract amount of $3,000,000 to allow staff to address deferred maintenance issues
throughout the City. The last two contracts (C44620D and E) were added to the annual
aggregate amount on August 24, 2023.
After the award of these contracts, additional project needs were identified, and existing projects
were expedited for completion. The City Council approved an appropriation in the amount of
$1,810,316.74 from facility reserve funds on March 14, 2024, to complete several projects that
were new or had increased in scope.
Staff recommends approving the following:
Change Order 2 to Contracts C44620A and C44620C
Amendment No. 2 to Contract No. C 44620B
Change Order No. 1 to Contract Nos. C44620D and C44620E
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City of Palm Desert
Approve Increase for Facilities Contracts (C44620A-E)
Page 2 of 2
This will allow the contract aggregate annual amount to be increased by $1,500,000 for the
duration of the contract term and continue the progress in addressing deferred maintenance at
public facilities throughout the City.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
The approved Public Works Operations Budget and Capital Improvements Project (CIP) List for
Fiscal Year 2023/24 includes a total of $3.9M for repairs and improvements projects under
various accounts. Additional funding was identified after the award of these contracts that will
assist staff in completing additional projects quickly and efficiently by utilizing economies of scale
and bundling multiple projects. Therefore, On March 14, 2024, the City Council approved the
appropriation of $1,810,317. Projects and funding are as follows:
Description Account No. 2023-24
Budget
03/14/24
Appropriation
Est. Project
Cost
Corporation Yard Building
Improvements (CFA00016)
4004330-4400100 $350,000 $400,000 $750,000
Civic Center Dog Park
(CFA00011)
4004674-4400100 $450,000 $810,317 $1,260,317
Community Garden
Improvements (CLS00002)
4004618-4400100 $100,000 $50,000 $150,000
University Park East Community
Gardens (CLS00002)
4004618-4400100 $0 $150,000 $150,000
University Dog Park Fence
Replacement (CPK00006)
4004618-4400100 $200,000 $300,000 $500,000
Ironwood Park Improvements –
Restroom (MPK00008)
4004618-4400100 $0 $100,000 $100,000
Fire Station Improvements
(MFA00029-31)
2304220-4400100 $1,160,000 $0.00
$1,160,000
Aquatic Center Improvements
(CFA00009)
2424549-4400100 $1,700,000 $0.00
$1,700,000
Totals $3,960,000 $1,810,317 $5,770,317
Due to the appropriations, staff request approval to increase the annual aggregate to $4.5M for
the remainder of the contract term. No additional appropriation is requested at this time;
therefore, there is no additional financial impact on the general fund.
ATTACHMENTS:
1. C44620A Change Order No. 2
2. C44620C Change Order No. 2
3. C44620B Amendment No. 2
4. C44620D Change Order No. 1
5. C44620E Change Order No. 1
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Contingency:
Less: Expend. / Encumb. To Date:
Less: This Change Order Amount:
Contingency:
Less: Prior Change Order(s):
Less: This Change Order:
__________________________________________________________ dollars and ___/100 (___________)
Contractor shall construct, furnish all supervision, labor, services, equipment, and materials, and perform all
work necessary or required to fully complete the changes to the Contract described in this Change Order for
the amount agreed upon between the Contractor and the City of Palm Desert (“City”).
Contract Purpose:
Contractor Name:
C44620A
2
MFA00009
On-Call Facilities Repairs and Improvements Project
PUB Construction, Inc.
Additional On-Call Facilities Repairs and Improvements $ 1,500,000.00
$ 0.00 $ 1,500,000.00
$ 1,500,000.00
City staff have increased the use of this contract to address deferred maintenance needs and to take on new projects.
$ 750,000.00
$ 0.00
$ 750,000.00
$ 3,000,000.00
$ 1,500,000.00
-$ 3,750,000.00
$ 0.00
$ 2,250,000.00
$ 1,500,000.00
-$ 3,750,000.00
The amount of the contract will be increased by the sum of:
One Million Five Hundred Thousand 00 $ 1,500,000.00
$ 4,500,000.00
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Continued from Front
Contract No. _________ Contract Change Order No. ___
Contract Time Extension: __________________________
Contractor accepts the terms and conditions stated above as full and final settlement of any and all claims
arising out of or related to the subject of this Change Order and acknowledges that the compensation (time
and cost) set forth herein comprises the total compensation due for the work or change defined in the
Change Order, including all impact on any unchanged work. Execution of this Change Order by the
Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the City from
all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of
the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or
damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and
all consequential damages. The adjustments to the Contract Price and Contract Time in this Change Order
constitute the entire compensation and/or adjustment thereto due to Contractor, including but not limited to all
direct, indirect, consequential, profit, labor, equipment, tools, idle time, incidentals, and overhead (field and
home office) costs, due to Contractor arising out of or related to the change in the work covered by this
Change Order. The Contractor hereby releases and agrees to waive all rights, without exception or reservation
of any kind whatsoever, to file any further claim or request for equitable adjustment of any type, for any
reasonably foreseeable cause that shall arise out of, or as a result of, this Change Order and/or its impact on
the remainder of the work under the Contract. This Change Order will become a supplement to the Contract
and all provisions will apply hereto.
1. REQUESTED BY:
______________________
Department Director
2. ACCEPTED BY:
______________________
Contractor
3. CERTIFIED FUNDS
AVAILABLE
______________________
Finance Director 4. APPROVED BY:
______________________
City Manager
NOTE: No payments will be made prior
to City Manager Council approval
QC: _____
C44620A 2
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Page 1 of 2
AMENDMENT NO. 2 TO CONTRACT NO. C44620B THE MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY PALM DESERT AND BELFOR USA GROUP
1. Parties and Date.
This Amendment No. 2 to Contract No. C44620B, the Maintenance Services Agreement is
made and entered into as of this 11th day of April 2024, by and between the City of Palm Desert
(“City”) and Belfor USA Group, Inc. City and Contractor are sometimes individually referred to as
“Party” and collectively as “Parties.”
2. Recitals.
2.1 Agreement. The City and Contractor have entered into an agreement entitled
“Maintenance Services Agreement” dated January 12, 2023 (“Agreement”) for the purpose of
retaining the services of Contractor to provide facility repairs and improvements.
2.2 Amendment. The City Council on April 27, 2023, approved to increase the annual
aggregate amount of $3,000,000 for Fiscal Year 2023/2024 and Fiscal Year 2024/2025. The City
Council on April 11, 2024, approved to increase the annual aggregate amount from $3,000,000 to
$4,500,000 for the remaining contract term.
3. Terms.
3.1 Amendment. Section 3.3.1 of the Agreement is hereby amended in its entirety to
read as follows:
“Contractor shall receive compensation, including authorized reimbursements, for all
Services rendered under this Agreement at the rates set forth in Exhibit “C” of the original
agreement. The maximum compensation for Services to be provided pursuant to each Task Order
shall be set forth in the relevant Task Order. The total compensation, in the aggregate, sh all not
exceed $4,500,000, without the written approval of the City Council or City Manager, as applicable.”
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No. 2. From and after the date of this Amendment No. 2, whenever
the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as
amended by this Amendment No. 2.
3.3 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. 2.
3.4 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
3.5 Counterparts. This Amendment No. 2 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.
AMENDMENT NO. 2 TO CONTRACT NO. C44620B
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Page 2 of 2
MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY PALM DESERT AND BELFOR USA GROUP
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 to Contract
No. C44620B, a Maintenance Services Agreement, as of the 11th day of April, 2024.
CITY OF PALM DESERT
Approved By:
L. Todd Hileman
City Manager
Attested By:
Anthony J. Mejia
City Clerk
BELFOR USA GROUP
Signature
Name
Title
_______________
Attorney
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Contingency:
Less: Expend. / Encumb. To Date:
Less: This Change Order Amount:
Contingency:
Less: Prior Change Order(s):
Less: This Change Order:
__________________________________________________________ dollars and ___/100 (___________)
Contractor shall construct, furnish all supervision, labor, services, equipment, and materials, and perform all
work necessary or required to fully complete the changes to the Contract described in this Change Order for
the amount agreed upon between the Contractor and the City of Palm Desert (“City”).
Contract Purpose:
Contractor Name:
C44620C
2
MFA00009
On-Call Facilities Repairs and Improvements Project
Elite Customs Construction
Additional On-Call Facilities Repairs and Improvements $ 1,500,000.00
$ 0.00 $ 1,500,000.00
$ 1,500,000.00
City staff have increased the use of this contract to address deferred maintenance needs and to take on new projects.
$ 750,000.00
$ 0.00
$ 750,000.00
$ 3,000,000.00
$ 1,500,000.00
-$ 3,750,000.00
$ 0.00
$ 2,250,000.00
$ 1,500,000.00
-$ 3,750,000.00
The amount of the contract will be increased by the sum of:
One Million Five Hundred Thousand 00 $ 1,500,000.00
$ 4,500,000.00
Page 101 of 855
Continued from Front
Contract No. _________ Contract Change Order No. ___
Contract Time Extension: __________________________
Contractor accepts the terms and conditions stated above as full and final settlement of any and all claims
arising out of or related to the subject of this Change Order and acknowledges that the compensation (time
and cost) set forth herein comprises the total compensation due for the work or change defined in the
Change Order, including all impact on any unchanged work. Execution of this Change Order by the
Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the City from
all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of
the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or
damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and
all consequential damages. The adjustments to the Contract Price and Contract Time in this Change Order
constitute the entire compensation and/or adjustment thereto due to Contractor, including but not limited to all
direct, indirect, consequential, profit, labor, equipment, tools, idle time, incidentals, and overhead (field and
home office) costs, due to Contractor arising out of or related to the change in the work covered by this
Change Order. The Contractor hereby releases and agrees to waive all rights, without exception or reservation
of any kind whatsoever, to file any further claim or request for equitable adjustment of any type, for any
reasonably foreseeable cause that shall arise out of, or as a result of, this Change Order and/or its impact on
the remainder of the work under the Contract. This Change Order will become a supplement to the Contract
and all provisions will apply hereto.
1. REQUESTED BY:
______________________
Department Director
2. ACCEPTED BY:
______________________
Contractor
3. CERTIFIED FUNDS
AVAILABLE
______________________
Finance Director 4. APPROVED BY:
______________________
City Manager
NOTE: No payments will be made prior
to City Manager Council approval
QC: _____
C44620C 2
N/A
Page 102 of 855
Contingency:
Less: Expend. / Encumb. To Date:
Less: This Change Order Amount:
Contingency:
Less: Prior Change Order(s):
Less: This Change Order:
__________________________________________________________ dollars and ___/100 (___________)
Contractor shall construct, furnish all supervision, labor, services, equipment, and materials, and perform all
work necessary or required to fully complete the changes to the Contract described in this Change Order for
the amount agreed upon between the Contractor and the City of Palm Desert (“City”).
Contract Purpose:
Contractor Name:
C44620D
1
Multiple
MFA00009
On-Call Facilities Repairs and Improvements Project
R&R B dba Servpro of Chino/Chino Hills
Additional On-Call Facilities Repairs and Improvements $ 1,500,000.00
$ 0.00 $ 1,500,000.00
$ 1,500,000.00
City staff have increased the use of this contract to address deferred maintenance needs and to take on new projects.
$ 3,000,000.00
$ 0.00
$ 3,000,000.00
$ 3,000,000.00
$ 1,500,000.00
-$ 1,500,000.00
$ 0.00
$ 0.00
$ 1,500,000.00
-$ 1,500,000.00
The amount of the contract will be increased by the sum of:
One Million Five Hundred Thousand 00 $ 1,500,000.00
$ 4,500,000.00
Page 103 of 855
Continued from Front
Contract No. _________ Contract Change Order No. ___
Contract Time Extension: __________________________
Contractor accepts the terms and conditions stated above as full and final settlement of any and all claims
arising out of or related to the subject of this Change Order and acknowledges that the compensation (time
and cost) set forth herein comprises the total compensation due for the work or change defined in the
Change Order, including all impact on any unchanged work. Execution of this Change Order by the
Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the City from
all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of
the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or
damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and
all consequential damages. The adjustments to the Contract Price and Contract Time in this Change Order
constitute the entire compensation and/or adjustment thereto due to Contractor, including but not limited to all
direct, indirect, consequential, profit, labor, equipment, tools, idle time, incidentals, and overhead (field and
home office) costs, due to Contractor arising out of or related to the change in the work covered by this
Change Order. The Contractor hereby releases and agrees to waive all rights, without exception or reservation
of any kind whatsoever, to file any further claim or request for equitable adjustment of any type, for any
reasonably foreseeable cause that shall arise out of, or as a result of, this Change Order and/or its impact on
the remainder of the work under the Contract. This Change Order will become a supplement to the Contract
and all provisions will apply hereto.
1. REQUESTED BY:
______________________
Department Director
2. ACCEPTED BY:
______________________
Contractor
3. CERTIFIED FUNDS
AVAILABLE
______________________
Finance Director 4. APPROVED BY:
______________________
City Manager
NOTE: No payments will be made prior
to City Manager Council approval
QC: _____
C44620D 1
N/A
Page 104 of 855
Contingency:
Less: Expend. / Encumb. To Date:
Less: This Change Order Amount:
Contingency:
Less: Prior Change Order(s):
Less: This Change Order:
__________________________________________________________ dollars and ___/100 (___________)
Contractor shall construct, furnish all supervision, labor, services, equipment, and materials, and perform all
work necessary or required to fully complete the changes to the Contract described in this Change Order for
the amount agreed upon between the Contractor and the City of Palm Desert (“City”).
Contract Purpose:
Contractor Name:
C44620E
1
Multiple
MFA00009
On-Call Facilities Repairs and Improvements Project
Doug Wall Construction, Inc.
Additional On-Call Facilities Repairs and Improvements $ 1,500,000.00
$ 0.00 $ 1,500,000.00
$ 1,500,000.00
City staff have increased the use of this contract to address deferred maintenance needs and to take on new projects.
$ 3,000,000.00
$ 0.00
$ 3,000,000.00
$ 3,000,000.00
$ 1,500,000.00
-$ 1,500,000.00
$ 0.00
$ 0.00
$ 1,500,000.00
-$ 1,500,000.00
The amount of the contract will be increased by the sum of:
One Million Five Hundred Thousand 00 $ 1,500,000.00
$ 4,500,000.00
Page 105 of 855
Continued from Front
Contract No. _________ Contract Change Order No. ___
Contract Time Extension: __________________________
Contractor accepts the terms and conditions stated above as full and final settlement of any and all claims
arising out of or related to the subject of this Change Order and acknowledges that the compensation (time
and cost) set forth herein comprises the total compensation due for the work or change defined in the
Change Order, including all impact on any unchanged work. Execution of this Change Order by the
Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the City from
all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of
the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or
damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and
all consequential damages. The adjustments to the Contract Price and Contract Time in this Change Order
constitute the entire compensation and/or adjustment thereto due to Contractor, including but not limited to all
direct, indirect, consequential, profit, labor, equipment, tools, idle time, incidentals, and overhead (field and
home office) costs, due to Contractor arising out of or related to the change in the work covered by this
Change Order. The Contractor hereby releases and agrees to waive all rights, without exception or reservation
of any kind whatsoever, to file any further claim or request for equitable adjustment of any type, for any
reasonably foreseeable cause that shall arise out of, or as a result of, this Change Order and/or its impact on
the remainder of the work under the Contract. This Change Order will become a supplement to the Contract
and all provisions will apply hereto.
1. REQUESTED BY:
______________________
Department Director
2. ACCEPTED BY:
______________________
Contractor
3. CERTIFIED FUNDS
AVAILABLE
______________________
Finance Director 4. APPROVED BY:
______________________
City Manager
NOTE: No payments will be made prior
to City Manager Council approval
QC: _____
C44620E 1
N/A
Page 106 of 855
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: APPROVE AMENDMENT NO. 7 TO CONTRACT NO. C36620 WITH
YMCA FOR MANAGEMENT OF THE PALM DESERT AQUATIC CENTER
RECOMMENDATION:
1. Approve Amendment No. 7 to update the scope of work for Contract No. C3662 0 with the
Family Young Men’s Christian Association of the Desert (“YMCA”), of Palm Desert,
California.
2. Authorize the City Attorney to make any necessary nonmonetary changes to the
amendment.
3. Authorize the City Manager to execute Contract No. C36627, Amendment No. 7 to Contract
No. C36620.
BACKGROUND/ANALYSIS:
The YMCA has been the operator of the Palm Desert Aquatic Center since its opening in 2011.
Most recently, Contract No. C36620 was executed to continue the YMCA management of the
facility. This contract has been extended multiple times, and on December 14, 2023, the Ci ty
Council adopted Amendment No. 6 to extend the agreement through June 30, 2025.
Amendment No. 6 included an updated scope of work that shifted the responsibility for
procurement for the facility back to the City. Upon implementation, it was determined that the
procurement of low-cost, day-to-day items could be administered by YMCA.
Staff has negotiated changes to the scope of work with the YMCA to include a $500 spending
limit for YMCA staff. Orders of over $500 up to $2,000 may be made by the YMCA upon approval
by the City and in accordance with our Purchasing Policy. The City will continue procurement of
orders totaling over $2,000. In addition, the City will contract with a janitorial service to provide
a Day Porter and daily janitorial for the facili ty to bring service within an acceptable standard.
City and YMCA Staff agree with the updated scope of work included in the proposed Amendment
No. 7. Staff recommends approval of Amendment No. 7 to update the scope of work for
purchasing and janitorial responsibilities.
Legal Review:
This report has been reviewed by the City Attorney’s office.
Page 107 of 855
City of Palm Desert
Approve Amendment No. 7 PDAC Management Contract
Page 2 of 2
FINANCIAL IMPACT:
The approved Aquatic Facility Operations Budget for Fiscal Year 2023 -24 includes a total of
$1,962,500 for the management and operations of PDAC under the following accounts:
The costs associated with the updated scope of work do not increase the YMCA’s current
contract amount; however, the transfer of janitorial services to the City will increase the Aquatic
Center’s annual operations budget by $84,000 ($7,000 monthly). Costs for janitorial services
during the remainder of the current fiscal year (April-June) will be paid from available funds in
Account No. 2424549-4331101, Contracted Pool Service. Therefore, there is no additional
financial impact to the General Fund with approval of this amendment.
Staff will include funding for future janitorial services in the annual budget request.
ATTACHMENTS:
1. Exhibit A - Scope of Work (red-line)
2. C36620 Amendment No. 7
3. C36620 - Executed Agreement
FY 2023-24 Account No. Budget Total
Supplies 2424549-4219000 $ 20,000
Other Expenses 2424549-4309000 $ 100,000
Management Fee 2424549-4309300 $ 165,000
Food / Merchandise 2424549-4801100 $ 40,000
Contracted Labor 2424549-4802101 $1,637,500
$1,962,500
Page 108 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 1 of 19
SCOPE OF SERVICES
General Scope:
The Consultant will provide management and operations services for City of Palm Desert in
accordance with the Contract Documents at the Palm Desert Aquatic Center (PDAC), located at
73751 Magnesia Falls Drive, Palm Desert, CA 92260.
The City requests the Consultant to demonstrate their ability to provide and perform services for
the Aquatic Center including, but not limited to, management, operations, programming,
concessions, and janitorial services relating to the Aquatic Center as described in this Scope of
Services. The Aquatic Center consists of the following amenities:
50- Meter Pool with Diving Area
Recreation / Therapy Pool (with slides)
Children’s Pool with Water Play Structure
Concessions Area (675 Sq. Ft.)
Men’s and Women’s Locker Rooms
Family Restrooms and Changing Areas
Lifeguard Room / First Aid Room
Administration Offices
Multi-Purpose Room (842 Sq. Ft.)
Storage Room
Mechanical Room
Chemical Storage Areas
The City contracts the major pool mechanical maintenance of the Aquatic Center to a third-party
contractor and will work closely with the Consultant to ensure prompt service to the facility. All
utilities will be directly billed and paid for by the City.
All services provided by the Consultant must be performed to the industry standards and
compliant with all applicable local, county, state, and federal laws.
Page 109 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 2 of 19
1. Roles and Responsibilities
City of Palm Desert Family YMCA of the Desert
Day-to-Day Operation Janitorial
N/A
Admissions and program
operation
POS system
Janitorial
Program Development
Facility
Weekly walk-through
inspections
Execute maintenance
projects
Execute capital
improvement projects
Daily upkeep of pools,
slides, and other
equipment
Minor pool equipment
repairs and painting
Submit immediate
reports on maintenance
or CIP needs
Make recommendations
on maintenance or CIP
needs based on aquatic
industry standards
Human Resources
Management committee
Annual Wage Scale
Review
Aquatic Manager,
Operations Manager,
Lead Lifeguards and
Lifeguards
Recruitment
Competitive wages and
benefits
General staff training for
facility operation
Lifeguard certification
First aid/CPR/AED
Marketing and
Programs
City-operated marketing
program
New programs and
expanded hours to be
proposed by
management committee
Participate in monthly
marketing meetings
Staff and operate
programs in coordination
with City staff
Collaborate with City on
Concessions
Accountability Analysis of KPIs
MBi-monthly meetings
with management
committee
Develop and organize
financial projection and
analysis team
Collect data on
prescribed KPIs
MBi-monthly meetings
with management
committee
Page 110 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 3 of 19
Review monthly/quarterly
trends regarding budget,
visitors, KPI data
Assist with report
development and
presentation
Participation in financial
projection and analysis
team
Concessions Develop updated
schedule and menu
Determine need for
additional equipment
Operate concessions per
City guidance
Conduct inventory of
concessions supplies
2. Services to be Performed.
The Consultant will provide services, plans and procedures as described below for the day-to-day
management and operations of the facility:
Perform maintenance, cleaning, and minor repairs of all pools, equipment, and facilities.
Perform daily safety and compliance checks of all pools, decks, pool amenities, and
facilities. Notify City staff of all urgent issues immediately and routine concerns within
one business day.
Complete daily inspection report form for water slides and applicable attractions when in
use, and maintain on file.
Ensure the pool and support facilities meet cleanliness and hygiene standards.
Ensure all pools meet applicable Riverside County Health Department standard
compliance (chemicals, flow, filtration, etc.).
Manually check and record water chemistry in each pool every 2 hours (minimum) and
adjust chemicals as needed.
Maintain industry standards for water clarity and cleanliness on all pools.
Inspect and maintain records of all pools and equipment.
Monitor inventory levels of chemicals and other pool maintenance supplies for the
purpose of ensuring the availability of supplies as needed.
Monitor and inventory concessions supplies.
Prepare and process purchase orders for the purpose of securing needed supplies
according to City of Palm Desert purchasing policies and requirements.
Provide regular KPI data and reports as required for assigned equipment and programs.
Maintain equipment and chemical rooms to be free of non-essential equipment, used
parts, clutter and chemical spills.
Follow all required safety precautions when using hazardous materials, assigned tools,
and machinery.
Set up and/or move equipment (e.g., starting blocks, bleachers, diving boards etc.) for
the purpose of ensuring availability for patrons and programs.
Page 111 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 4 of 19
Maintain cleanliness of all facilities within the aquatic center: pools, drains, deck, locker
rooms, etc.
Perform facility painting and retouching as necessary to maintain a high-quality facility
facade.
Promote, and exemplify City of Palm Desert Mission, Vision and Core Values.
Exercise excellent customer service. Follow up on complaints, questions, and concerns;
respond to internal and external customer needs in a friendly, timely and efficient
manner.
Administer regular customer feedback and satisfaction surveys.
Comply with local jurisdictional requirements and industry standards as applicable
including but not limited to: California Pool Code, Model Aquatic Health Code, OSHA
Hazardous Communications Standard and OSHA Bloodborne Pathogens Standard.
3. Business Plan
Consultant shall provide a Business Plan to include the following:
Hours of operation (subject to change if approved in writing by the City)
o May through September
Monday – Friday 5:30 am – 7:00 pm
Saturdays 7:00 am - 7:00 pm
Sundays 8:00 am – 7:00 pm
o October through April
Monday – Friday 5:30 am – 7:00 pm
Saturdays 7:00 am - 5:00 pm
Sundays 8:00 am – 5:00 pm
Personnel requirements
Guidelines for policy development for programs and facility
4. Preventative Maintenance Plan
The Consultant shall adhere to the established comprehensive Preventative Maintenance Plan
provided by the City that includes, but is not limited to the following:
A. Facility Inspection Program
1. Details of facility inspections
2. Frequency of facility inspections
B. Routine Maintenance to be performed.
C. Expected Capital Improvement Items
The City will provide the following to be included in the Preventative Maintenance Plan:
A. Available PDAC As Built Plans
Page 112 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 5 of 19
B. Mechanical Equipment Inventory
1. Name and Model #
2. Manufacturer and contact info.
3. Local Vendor (as applicable)
4. Replacement and service details
C. Equipment Manuals
1. In the event an equipment manual is not available, the City shall attempt to provide a
satisfactory replacement from the equipment manufacturer.
2. If no manual is available, the Consultant shall provide a written document outlining
the standard operating procedures for maintaining and operating the applicable
piece of equipment.
5. Safety Plan
The Consultant shall provide and maintain a facility Safety Plan that includes, but is not limited to
the following:
A. Facility Staffing Plan
1. Code Compliance Staffing Plan
2. Zones of Patron Surveillance
3. Rotation Procedures
4. Alternation of Tasks
5. Supervision Protocols
B. Emergency Action Plans
1. Emergency procedures for anticipated emergencies at the aquatic center
2. Methods of communication
3. Required emergency equipment.
4. Emergency closure requirements
C. Biohazard Action Plan
1. Fecal vomit and blood contamination of the pool and facility surfaces
D. Pre-Service Training Plan
1. Facility policies and procedures to be included in training.
2. Demonstration of required Safety Team skills specific to PDAC
3. Documentation of training
E. In-Service Training Plan
1. In-service training frequency. A minimum of 4 hours of in-service training monthly is
required of all staff that regularly, or MAY perform lifeguard duties.
a. Makeup in-services may be held for approved absences and must comply with
the original in-service plan missed.
b. Lifeguards who do not meet the monthly in-service training requirement must
undergo Pre-Service Training prior to returning to Lifeguard duties.
2. In-service documentation
3. Certification maintenance
Page 113 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 6 of 19
4. Demonstration of Lifeguard Skill Proficiencies
5. Competency Demonstration Plan
a. Ability to reach the furthest edge of Zones of Surveillance within 20 seconds.
b. Ability to perform required emergency response skills.
c. Ability to perform Resuscitation and First Aid skills.
6. Recruitment and Hiring Plan
A. Recruitment and Hiring
1. Consultant will submit a written process for recruitment and hiring.
B. Organizational Chart and Staffing Levels
Consultant will provide and maintain an organizational chart depicting the management
approach and general staff responsibilities. Staffing levels will be maintained at a minimum
required based on the submitted and approved staffing plan (Safety Plan – Section 1) and
Zone Evaluation documentation.
Staffing and salary ranges are to be provided annually to the City of Palm Desert Director
of Public Works for approval.
Alternative organization and staffing plans that meet safety and operating requirements
may be submitted by the Consultant. All alternate staffing plans must be approved by the
City of Palm Desert before they are instituted.
C. All personnel will be easily identifiable by approved uniforms at all times while on duty.
D. Janitorial services for the facility will be completed by the Consultant and is typically
performed by Lifeguards and other staff on duty.
1. Regular locker room checks are expected to be performed throughout the day.
2. Locker room check sheets may be utilized at the discretion of the Consultant.
E. Position Descriptions
1. Descriptions for key positions listed above will be developed and maintained by the
Consultant.
7. Staff Training
A. PDAC staff will maintain the following minimum training credentials:
1. Aquatic Director / Manager
a. Certified Pool Operator (CPO) or Aquatic Facility Operator (AFO) or approved
equal.
2. Aquatic Director / Manager, Aquatics Coordinator, Facility Operations Manager, or
other staff
a. Lifeguard Instructor Certification (LGI)
3. Facility Operations Manager
a. Certified Pool Operator (CPO) or Aquatic Facility Operator (AFO) or approved
equal.
Page 114 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 7 of 19
4. Aquatics Front Desk & Concessions Manager
a. Food Manager Certification (must be from a school recognized by the Riverside
County Department of Environmental
Health: https://rivcoeh.org/sites/g/files/aldnop361/files/migrated/Portals-0-PDF-
Foods-31-09-DES-Food-Manager-Certification.pdf
5. Lifeguards
a. Lifeguarding with Bloodborne Pathogens Training, Administering Emergency
Oxygen, Asthma Inhaler Training, Epinephrine Auto Injector, First Aid for Public
Safety Personnel (Title 22) (American Red Cross or approved equal)
8. Operations Procedures
The Consultant will develop and maintain standard procedures that must be performed for the
proper maintenance and operations of the facility. These include but are not limited to:
Pool Chemical Parameters
Chemical Room Emergency Procedures
Hazard Identification and Communication
Safety and First Aid Equipment
Facility and Pool Cleanliness
Health Regulations
Discipline
Child Abuse Prevention
Lost and Found
Media Communication
Pool Water Contamination and Response
Biohazard Disposal
Report Writing
1.The designated shift supervisor oversees the facility and staff.
2. The minimum age for a lifeguard to lifeguard a body of water alone is 16 years of age.
3. Facility may not open to the general public without a minimum of 3 lifeguard certified staff
members present.
4. At the start of their shift, all certified staff members must be ready to perform assigned duties.
5. All schedules are posted in their respected offices and emailed to the staff in a timely manner.
6.Deck Lifeguards:
1. During high use times lifeguards will rotate regularly.
2. Lifeguards leaving the deck must perform regular locker room checks.
3. Elevated lifeguard stations shall be utilized as the standard for most lifeguard zones.
Page 115 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 8 of 19
a. Ground level stations may be utilized where appropriate.
b. Roving stations may not be utilized as a primary surveillance position. Roving
stations may be utilized as secondary lifeguards to a zone when necessary.
4. Rescue hip packs must be worn by all trained lifeguards at all times. Packs will be
adequately supplied with a resuscitation mask appropriate for adults and a mask
appropriate for children, or a universal mask and non-latex exam gloves.
7. Backup Duty Lifeguard:
1. When not needed on deck or to assist customers, Backup Duty Lifeguards shall:
a. check locker rooms for behavior issues or horseplay,
b. assist in rendering first aid to injured persons,
c. assist deck lifeguard as needed,
d. or perform cleanup and maintenance activities.
8. If a full complement of staff is not needed, the supervisor on duty may release excess
lifeguards from work.
9. No lifeguard will be scheduled to work more than 8 hours in one day.
10. Lifeguards will be trained to complete injury report forms for all injuries to be submitted to the
Aquatic Manager.
11. The Aquatic Manager shall notify the City of all required incidents.
12. The Lead Lifeguard is required to check and record pool chemistry every 2 hours.
13. Water chemistry shall be checked in the morning in enough time to adjust chemicals prior to
opening to the public.
14. Water chemistry shall be checked at closing and necessary chemical adjustments made prior
to staff leaving.
15. All staff will receive communications training, including verbal and non-verbal hand signals,
whistle blasts, radio contact, and written communication. Signs and brochures at the front desk
communicate safety rules. Management will share information at regular meetings and
Supervisors will convey information through in-service trainings or other methods as needed.
16. The concession stand adheres to all Riverside County health codes and regulations. All staff
handling unpackaged food must maintain current Riverside County Food Handler cards and be
overseen by a Food Safety Manager. A minimum of one Food Safety Manager shall be on staff
during the concession operation.
17. Locker rooms are monitored periodically by lifeguards. No food or drink is allowed in the locker
rooms. Towel snapping, running or rough play is not allowed. Children 5 years of age and older
are required to use the locker room of their own sex. Family changing rooms are also available.
Page 116 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 9 of 19
18. Any commercial advertisements, press releases, articles, or other media information using
the City’s name and/or logos shall be subject to the prior approval of the City.
19. All advertisements at the Aquatic Center are subject to approval by the City.
9. Financials
The Consultant shall develop and maintain financial procedures that align with the City’s financial
policies and procedures, including but not limited to:
Cash controls
Budget development
Payroll
Collections
Revenue reporting
Purchasing
Accounts payable
The Consultant shall keep complete and accurate books of revenues collected and will make all
records available to the City upon request. Books and records for the PDAC shall be maintained
separately from other facilities operated by the Consultant. The Consultant shall maintain
accounting books and records for a period of at least three years after the expiration or earlier
termination of the Agreement, and the City shall have the right to inspect and audit such books
and records during such period.
Financial and daily records shall meet the following criteria:
Record of all sales by means of a cash register, which will display the amount of each
sale and automatically issue a customer’s receipt. Beginning and ending cash register
readings shall be made a matter of daily record.
Entry of each and every Aquatic Center user’s name on entry log.*
A total count of Aquatic Center users at the end of each day and reconciliation of fee
category totals on cash register detail reports.
Ability to differentiate resident vs. non-resident visits.
Maintenance of a daily logbook detailing the number of Aquatic Center users by fee
category and total amount of cash collected by fee category.
Ability to record and report the number and type of discounts provided.
Page 117 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 10 of 19
Monthly and annual statements of gross revenues, including a budget comparison, a
variance report, and such other customary reports as may reasonably be requested by
the City.
*Except non-resident drop-in for recreation and lap swim. Groups or families must provide only
the primary/head of household or group lead’s contact information.
9.1 Cash Receipts
The Consultant shall collect daily fees and record them in the point-of-sale system. The city
shall provide deposit bags for daily cash receipts, which will be submitted to the city daily with a
daily register report or similar report that ties back to the cash receipts. Reports for weekends
and observed holidays shall be submitted on the following business day. Reports shall include
receivables for insurance-sponsored Senior/dependent benefit programs (i.e. Peerfit,
SilverSneakers, Medicare, etc.) and monthly lane rentals.
The Consultant shall submit a monthly revenue report to the city for deposit verification and
revenue reconciliation, which the city will reconcile during its normal bank reconciliation
processes.
The city may implement armored courier services or night deposit procedures depending on the
volume and frequency of cash collected at the PDAC.
9.2 Banking
The city shall maintain the PDAC cash balances in the main bank account of the city, utilizing
the pooled cash method of fund accounting. Upon contract execution, the Consultant shall begin
the process of sending accumulated funds back to the city. This process shall include the
reconciliation of all deposits in transit and outstanding checks.
The City shall provide a loan of $200,000 to the Consultant, to be held in the Consultant’s own
bank account, for the purpose of emergency payroll coverage.
The Consultant may request the establishment of a petty cash fund from the City if needed.
9.3 Reimbursements
The management fee and reimbursements for purchase of Consultant supplies purchases of
$2,000.00 or less will be made via check, ACH or wire transfer from the city to the Consultant in
accordance with the contract terms.
For payroll reimbursements, Consultant will provide the city with a report of payroll cash
requirements and any requested backup upon completion of each payroll process. The City
shall reimburse the Consultant via timely wire transfer on a schedule that aligns with the
Consultant’s payroll cash sweep deadlines.
9.4 Procurement and Invoice Processing
All procurement and invoice processing shall be in accordance with applicable city procurement
policies, and procedures, and within the approved budget. Expenditures of $500.00 or less may
be made directly by the Consultant to maintain adequate supplies for facility operation.
Expenditures of over $500.00 up to $2,000.00 may be made directly by the Consultant upon city
Page 118 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 11 of 19
approval. iInvoices of over $2,000.00 shall be paid directly by the city via city workflow routing.
The city shall provide the Consultant with the appropriate instructions on how to submit invoices
and other procurement documents for processing.
Upon execution, Consultant shall provide the city with any existing contracts for review by the
city’s procurement department.
10. Policies
The Consultant will develop and maintain policies and procedures, including but not limited to:
Pool Use and Safety Rules
Lifeguard Policy and Procedure Manual
Equipment Rental Procedures
Facility Rental, Group Use Requirements, and Fee Structure
Swim Testing
Signage Standards
11. Program Development
The Consultant shall develop a program plan to be reviewed and approved by the City. The
Program Plan shall include at a minimum.
Swim lessons
Lap swimming
Arthritis and/or Multiple Sclerosis classes
Red Cross certification courses
Yoga, spin, or other group fitness classes
Water games
The Consultant shall strive to make classes responsive to and/or inclusive to persons with
disabilities. A program registration process will be in place.
The Program Plan shall include program attendance goals and shall be reviewed by the
Consultant and the City of Palm Desert annually at a minimum.
The PDAC Program Plan may be updated or amended to meet City of Palm Desert goals
throughout the contract term. Any changes shall be agreed upon by the City of Palm Desert and
the Consultant.
Page 119 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 12 of 19
12. Key Performance Indicators
The Consultant shall gather data on a daily basis to report on required Key Performance Indicators
(KPIs). For general business practices, the following items or KPIs should be tracked by the Palm
Desert Aquatic Center management company. Additional items may be added in the future to
influence business and operational decisions. Some items may be removed in the future if they
are no longer meaningful for business updates.
Monthly reporting should be available to present to and discuss with the Palm Desert Aquatic
Center Business Committee. The report information requested may change depending on
updated strategies.
Depending on the metric, they may be included in Monthly, Quarterly or Annual reports.
Financial Programs Operations
Attendance/Passes Sold
Member Retention
Pass Renewals
Concessions Revenue
Rental Revenue
Swim Lesson Revenue
Concessions Per Cap
Program Attendance
Sessions
Held/Canceled
Rentals Held
Special Programs
Checklist Compliance
Closures
Incidents
Facility Audit Results
Pool Chemical Readings
Customer Satisfaction
Staff Turnover
Page 120 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 13 of 19
13. Reporting Standards
The Consultant shall regularly report on all required KPIs and topics according to required
timelines. Monthly reports will be delivered to the City of Palm Desert staff liaison of the PDAC
Business Committee. Quarterly reports will be presented at regular Parks and Recreation
meetings. Annual reports will be presented to the City Council. Reporting requirements include
but are not limited to the items below:
Subject Justification Target Information Reporting
Frequency
Attendance/Passes
Sold
Tracking attendance
and passes sold is
crucial for PDAC to
understand customer
engagement and
revenue generation. It
is also necessary to
understand the impact
of the aquatic center
services within the
community and the
impact of the use of
City resources.
Total attendance for
the month including
passes and
memberships sold.
Include comparisons to
prior years in the same
month. In addition, any
special programs, or
events with their
attendance should be
listed in addition to the
total.
Monthly
Quarterly
Annually
Member Retention Member retention is
essential for the
stability and growth of
a business. It directly
affects the recurring
revenue and the
establishment of a
loyal customer base.
Understanding and
analyzing retention
rates assist in
developing strategies
to retain existing
customers, ultimately
reducing the cost of
acquiring new ones.
Membership retention
is the percentage of
members that
continued their
membership or
renewed their
membership during the
reporting period.
• Monthly
• Quarterly
• Annually
Page 121 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 14 of 19
Subject Justification Target Information Reporting
Frequency
Concessions
Revenue/Per Cap
Concessions revenue
may serve as a
significant stream of
income for PDAC.
Monitoring this metric
helps in understanding
customer spending
patterns, optimizing
offerings, and
increasing profitability
by adjusting product
mixes and pricing
strategies.
Calculating
concessions per capita
is essential as it
reflects the average
spending of customers
per visit. This metric
assists in evaluating
the effectiveness of
sales strategies and
pricing, helping PDAC
optimize revenue
generation.
Concessions revenue
should be reported as
a total revenue line
item (Gross), and net
revenue which is the
gross revenue minus
expenses.
Additionally, specific
concessions items may
be reported to
maximize offerings.
Monthly during
summer months and
in the Annual Report.
Rental Revenue Rental revenue is a
critical source of
income for many
PDAC. Keeping track
of rental revenue
allows for effective
management of
available resources,
enabling adjustments
in pricing strategies
and identifying
opportunities to
expand services.
Rental revenue should
be reported to show
the number of rentals
offered and the amount
of revenue collected for
that reporting period.
This can also be
analyzed vs. the
previous year’s
reporting period to
show increases or
decreases in revenue.
• Monthly
• Quarterly
• Annually
Page 122 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 15 of 19
Subject Justification Target Information Reporting
Frequency
Swim Lesson
Revenue
Monitoring swim
lesson revenue is
crucial for PDAC. It
helps in gauging the
popularity of the
program, assesses
profitability, and
determines the
effectiveness of
marketing and
teaching strategies.
Each report should
indicate the number of
swim lessons taught,
the revenue from the
swim lessons and
increases or decreases
from previous reporting
periods.
• Session
• Monthly
• Quarterly
• Annually
Program Attendance
Sessions
Held/Canceled
Tracking the number
of sessions held
versus canceled is
crucial for maintaining
operational efficiency.
It helps in identifying
trends, managing
resources effectively,
and improving
scheduling to minimize
disruptions.
Monitoring program
attendance helps in
evaluating the success
and popularity of
various programs
offered. This data
guides PDAC in
making informed
decisions about
program
improvements,
resource allocation,
and future offerings.
Each program should
track attendance, spots
filled vs vacant and
whether the class or
session met minimum
sign ups or not. This
may help PDAC in
ensuring profitable
programs continue and
unprofitable programs
can be abandoned or
re-marketed to
increase participation.
• Quarterly
• Annually
Page 123 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 16 of 19
Subject Justification Target Information Reporting
Frequency
Special Events /
Programs
Monitoring the success
and attendance of
special programs is
important for PDAC to
understand their
impact on revenue and
customer engagement.
This data informs
future planning and
helps in tailoring
offerings to meet
customer demands.
Each special event
should track
attendance and
profitability to ensure
the special event met
profitability and
attendance goals. This
data can be utilized to
understand whether to
continue offering the
event or not.
• Post-event
• Annually
Checklist
Compliance
Ensuring checklist
compliance is vital for
maintaining
operational standards,
safety, and quality.
Tracking compliance
helps in mitigating
risks, ensuring
consistency, and
maintaining a positive
reputation.
Checklist Compliance
should be reported as
a percentage of total
compliance expected,
vs what was
completed. This will
help to ensure risk
management
operations are being
conducted.
• Monthly
• Quarterly
• Annually
Closures Documenting closures
is crucial for PDAC to
understand their
impact on revenue and
customer experience.
Analyzing closure data
helps in identifying
patterns, mitigating
issues, and developing
strategies to minimize
disruptions.
Closures data should
include the reason for
the closure and the
amount of revenue that
may have been lost
due to the closure.
Additionally, any extra
expenses incurred due
to the closure should
be tracked.
• Monthly
• Quarterly
• Annually
Page 124 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 17 of 19
Subject Justification Target Information Reporting
Frequency
Incidents Tracking incidents is
crucial for ensuring
customer safety and
satisfaction. It helps in
identifying potential
risks, improving safety
protocols, and
maintaining a secure
environment for
customers and staff.
Incidents should be
reported immediately to
appropriate offices and
then tracked to indicate
location and reason for
the incident. This data
can then be used to
mitigate future risks.
• Monthly
• Quarterly
• Annually
Facility Audit
Results
Monitoring facility audit
results is essential for
ensuring operational
standards and
compliance. This data
helps in identifying
areas for
improvement,
maintaining quality
standards, and
meeting regulatory
requirements.
Internal and external
audits should be report
as they occur and
given directly to the
City of Palm Desert.
Per audit
Pool Chemical
Readings
Monitoring pool
chemical readings is
critical for maintaining
a safe and hygienic
environment. This data
ensures compliance
with health and safety
standards, protecting
the well-being of
customers and staff.
Abnormalities may be
reported to the City of
Palm Desert as they
occur, however pool
readings should be
recorded and available
to be reported on as
needed.
Per occurrence
Page 125 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 18 of 19
Subject Justification Target Information Reporting
Frequency
Customer
Satisfaction
Assessing customer
satisfaction is
fundamental for PDAC
to understand the
quality of services
offered. This data
helps in identifying
areas for
improvement, retaining
customers, and
attracting new ones
through positive word-
of-mouth.
Customer satisfaction
measurements should
be taken after every
program and program
session and
periodically throughout
the year. Customer
satisfaction can then
be reported Quarterly
or Annually as needed.
• Quarterly
• Annually
Staff Hiring /
Retention
Tracking staff turnover
is important for PDAC
to assess employee
satisfaction, identify
retention issues, and
implement strategies
to improve workplace
culture and reduce
hiring and training
costs.
Tracking staff
recruitment is crucial
for PDAC to ensure
appropriate staffing
levels. Monitoring
recruitment efforts
helps in identifying
trends, optimizing the
hiring process, and
ensuring a skilled and
reliable workforce.
The number of staff
retained, and the
number of staff hired vs
the number needed for
operations. This can
help identify staffing
needs and increases in
marketing toward
staffing goals.
• Quarterly
• Annually
Page 126 of 855
Contract No. C36627
Amendment No. 7
Exhibit A
Page 19 of 19
Subject Justification Target Information Reporting
Frequency
Completed
Maintenance
Monitoring completed
maintenance tasks is
crucial for ensuring the
proper functioning of
equipment and
facilities. It helps in
preventing disruptions,
ensuring customer
satisfaction, and
maintaining a positive
reputation.
Regular maintenance
summaries should be
included in monthly
reports and major
maintenance projects
reported in annual
reports to show that
preventive
maintenance and
regular maintenance is
occurring.
• Monthly
• Annually
In-Service Training Ensuring in-service
training compliance is
vital for staff
development and
maintaining
operational standards.
It assists in enhancing
employee skills,
ensuring consistency
in service quality, and
adhering to regulatory
requirements.
In-service training
should be reported
annually to show a
complete in-service
training program and
that all staff members
are receiving the
required number of
training hours annually.
• Annually
Goal Updates Goals move the
business at PDAC
forward and the
reporting of goals
achieved or worked on
show the progress
management is
making toward the
future.
Goals should be
reported Quarterly and
Annually to ensure
continuous
improvement in
operations and
business.
• Quarterly
• Annually
The Consultant shall meet with City staff monthly to review operations, KPIs and other
topics. Goals and strategy meetings shall be held on a quarterly basis.
Page 127 of 855
Page 128 of 855
Contract No. C36620
AMENDMENT NO. 7 TO CONTRACT NO. C36620 - PROFESSIONAL SERVICES FOR
MANAGEMENT AND STAFFING OF THE PALM DESERT AQUATIC CENTER
BETWEEN THE CITY OF PALM DESERT AND FAMILY YMCA OF THE DESERT
1. Parties and Date.
This Amendment No. 7 to Contract No. C36620 - Professional Services for Management and
Staffing of The Palm Desert Aquatic Center is made and entered into as of this 11th day of April 2024,
by and between the City of Palm Desert (“City”) and Family YMCA of The Desert, a Nonprofit
Organization with its principal place of business at 43930 San Pablo Avenue, Palm Desert, CA 92260
(“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively
as “Parties”.
2. Recitals.
2.1 Agreement. The City and Consultant have entered into an agreement entitled Contract
No. C36620 - Professional Services for Management and Staffing of the Palm Desert Aquatic Center
dated May 10, 2018 (“Contract”) for the purpose of retaining the services of Consultant to provide
Management and Staffing of the Palm Desert Aquatic Center.
2.2 Amendment. The City and Consultant desire to amend the Agreement to update the
scope of work.
2.3 Amendment Authority. This Amendment No. 7 is authorized by Section 26 of the
Agreement.
3. Terms.
3.1 SECTION (1) TERM (1.1) of the Agreement is hereby amended in its entirety to read
as follows:
“Exhibit A is hereby deleted in its entirety and replaced with the attached Exhibit A
attached hereto and incorporated herein by reference.”
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 7, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of the
parties under this Amendment No. 7. From and after the date of this Amendment No. 7, whenever
the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as
amended by this Amendment No. 7.
3.3 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. 7.
3.4 Severability. If any portion of this Amendment No. 7 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue
in full force and effect.
3.5 Counterparts. This Amendment No. 7 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.
Page 129 of 855
Contract No. C36620
Page 2 of 3
[SIGNATURES ON FOLLOWING PAGE]
Page 130 of 855
Contract No. C36620
Page 3 of 3
SIGNATURE PAGE FOR AMENDMENT NO. 7 TO CONTRACT NO. C36620 – PROFESSIONAL
SERVICES FOR MANAGEMENT AND STAFFING OF THE PALM DESERT AQUATIC CENTER
BETWEEN THE CITY OF PALM DESERT AND FAMILY YMCA OF THE DESERT
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 7 to the
CONTRACT NO. C36620 – PROFESSIONAL SERVICES FOR MANAGEMENT AND STAFFING
OF THE PALM DESERT AQUATIC CENTER as of the day and year first above written.
CITY OF PALM DESERT
Approved By:
_______________________
L. Todd Hileman
City Manager
Attested By:
_______________________
Anthony J. Mejia
City Clerk
Approved As To Form:
By:
_______________________
Isra Shah
Best Best & Krieger LLP
City Attorney
FAMILY YMCA OF THE DESERT
_______________________
Signature
_______________________
Name
_______________________
Title
_______________________
Signature
_______________________
Name
_______________________
Title
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
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Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Cristal Ortega, Management Analyst II
REQUEST: INTRODUCE AN ORDINANCE RELATIVE TO THE PURCHASING
SYSTEM AND PUBLIC WORKS CONTRACTS AND MAKING FINDINGS
UNDER CEQA
RECOMMENDATION:
Introduce an Ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, REPLACING CHAPTER 3.30 IN ITS ENTIRETY AND
RESCINDING ORDINANCES NO. 224, 423, 586, 927, 928, 986, 1162, 1166, 1204, 1229, 1276,
1317, 1335 AND 1392 RELATIVE TO THE PURCHASING SYSTEM AND PUBLIC WORKS
CONTRACTS AND MAKING FINDINGS UNDER CEQA.”
BACKGROUND/ANALYSIS:
The Municipal Code (referred to as the “Code”) Chapter 3.3 0 underwent a comprehensive
update in March 2023. In alignment with the City’s objectives to enhance efficiency and
accountability, staff members identified further opportunities to streamline purchasing
processes.
This revision aims to simplify and streamline procurement for departments. Specifically, the
proposed changes include:
1. Minimum Procurement Level: The City Manager will now have authority to designate
Department Heads to approve awards up to $10,000 for public projects, contractual
services, materials, supplies, equipment, as well as professional services. The current
threshold is $2,000. This will allow departments to address small, routine, or urgent items
more quickly and efficiently.
2. Exception for Recurring Charges: Section 3.30.160, which specifies exceptions to
procurement methods, is clarified to make it easier for departments to procure routine,
recurring goods and services (Examples include: pest control services, HVAC
maintenance services, paint, and janitorial supplies).
3. More Flexibility for Vendor Quotes: Proposed changes will make it easier for
departments to obtain informal quotes for procurements of $75,000 or less —especially
for services in which there are few vendors servicing the local area (Examples include:
installation of pool pump equipment, emergency generator services, and custom signage.
4. Technology Exception: Adds a new exception that allows for continued licensing of key
software and hardware systems (For example, when the City selects a particular software
platform (Microsoft Office 365), we are limited to their licensing in future years, in order to
continue that service).
Page 223 of 855
City of Palm Desert
Purchasing Ordinance Update
Page 2 of 2
5. Non-Discrimination Policy: Adds new policy that seeks to ensure vendors who provide
goods and services to the City follow non-discriminatory practices in employment and
subcontracting.
In summary, revising the purchasing policy achieves several key goals:
Consistency: Ensuring uniformity in purchasing practices.
Simplicity: Streamlining routine and small purchases.
Flexibility: Allowing for adaptability in day-to-day operations.
By implementing these changes, efficiencies will be recognized through improved management
of procurement activities in each area of the procurement process, while adhering to best
practices for municipal governance.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
There is no financial impact from the proposed Ordinance, however, staff believes there will be
time-saving efficiencies created by streamlining the process for all purchasing and procurement
on behalf of the City.
ATTACHMENTS:
1. Draft Ordinance
2. Ordinance Text, Redline
Page 224 of 855
ORDINANCE NO. _________
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, REPLACING CHAPTER
3.30 IN ITS ENTIRETY AND RESCINDING ORDINANCES
NO. 224, 423, 586, 927, 928, 986, 1162, 1166, 1204, 1229,
1276, 1317, 1335 AND 1392 RELATIVE TO THE
PURCHASING SYSTEM AND PUBLIC WORKS
CONTRACTS AND MAKING FINDINGS UNDER CEQA.
WHEREAS, the City Palm Desert (“City”) periodically reviews the Palm Desert
Municipal Code (“Municipal Code”) to identify areas that need updating, clarification, and
revisions in accordance with state law;
WHEREAS, the last comprehensive update to the purchasing policies and
procedures, codified in Municipal Code Chapter 3.30, was in the year 2023;
WHEREAS, this update will ensure consistency amongst the various contracts and
purchases, simplify the procurement process while maintaining internal controls, allow for
flexibility and efficiencies, and ensure vendors follow non-discriminatory practices in
employment and subcontracting; and
WHEREAS, all other legal prerequisites to the presentation of this Ordinance have
occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA DOES ORDAIN AS FOLLOWS :
Section 1. Recitals. The City Council finds that the above recitals are true and
correct and, accordingly, are incorporated as a material part of this Ordinance.
Section 2. Amending Chapter 3.30. Chapter 3.30 (Purchasing System and Public
Works Contracts) of the Palm Desert Municipal Code is hereby amended to read in its
entirety as set forth in Exhibit “A” to this Ordinance, which is hereby incorporated by
reference herein.
Section 3. Severability. If any section, subsection, clause or phrase of this
Ordinance or any part thereof is for any reason held to be invalid, unconstitutional, or
unenforceable by the decision of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portion of the Ordinance. The City Council declares
that it would have passed each section, subsection, paragraph, sentence, clause, or
phrase thereof, irrespective of the fact that any one or more section, subsection,
sentence, clause or phrase would be declared invalid, unconstitutional or unenforceable.
Section 4. CEQA. The City Council hereby finds and determines that this
Ordinance is exempt from CEQA pursuant to State CEQA Guidelines section 15061(b)(3)
because it can be seen with certainty that the Ordinance would not have the potential or
Page 225 of 855
possibility for causing a significant effect on the environment. Specifically, the proposed
changes to the Municipal Code are primarily administrative in nature and clean-up various
inconsistencies that existed in the prior version of the Municipal Code. Moreover, many
of the changes are technical in nature and do not allow for specific development. In
reviewing the Ordinance the City Council has exercised its independent judgment and
has reviewed and considered the Ordinance in light of all testimony received, both oral
and written. Therefore, based upon the entire administrative record, the City Council
hereby determines that no further environmental review is required for the Ordinance.
SECTION 5. Publication. The City Clerk of the City of Palm Desert, California, is
hereby directed to publish a summary of this Ordinance in the Desert Sun, a newspaper
of general circulation, published and circulated in the City of Palm Desert, California, and
shall be in full force and effective thirty (30) days after its adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Palm Desert, California, on the ____ day of ______, 2024 by the following
roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________
Karina Qunitanilla, Mayor
ATTEST:
_____________________________
Anthony Mejia, City Clerk
City of Palm Desert, California
APPROVED AS TO FORM:
____________________________
Isra Shah, City Attorney
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EXHIBIT “A”
Page 227 of 855
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Palm Desert, California Municipal Code
Title 3 REVENUE FINANCE
Chapter 3.30 PURCHASING SYSTEM AND PUBLIC WORKS CONTRACTS
3.30.010 Purpose.
3.30.020 Definitions.
3.30.030 Purchasing officer.
3.30.040 Purchasing officer—Powers and duties.
3.30.050 General purchasing regulations, policies, and procedures.
3.30.060 Public projects.
3.30.070 Contractual services.
3.30.080 Professional services.
3.30.090 Materials, supplies, and equipmentSupplies.
3.30.095 Informal bidding procedure.
3.30.100 Formal bidding procedure.
3.30.110 Standard bid and proposal protest procedures.
3.30.120 Vendor price quotes procedure.
3.30.130 Proposal procedure.
3.30.140 Best competitive value procedure.
3.30.150 Alternative project delivery.
3.30.160 Exceptions to procurement methods.
3.30.170 Change orders.
3.30.180 Local business preference program.
3.30.190 Preference for recycled content.
3.30.010 Purpose.
The purpose of this chapter is to prescribe efficient policies and procedures for the
procurement of public projects, contractual services, professional services, and materials,
supplies, and equipmentsupplies to better serve the city’s residents. All purchasing will be done
with absolute integrity and equal opportunity will be provided to all, free of discrimination.
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3.30.020 Definitions.
The following terms, whenever used in this chapter, shall be construed as follows:
“City manager” means the city manager of the city or their designee.
“Coachella Valley” means the area between the Salton Sea on the south, the San Jacinto
and Santa Rosa Mountains on the west, and the Little San Bernardino Mountains on the east and
north.
“Contract” means any type of legally recognized city agreement for the procurement of
supplies, services, or for construction of public projects, including without limitation an award of a
grant or a real property agreement.
“Contractor” means any person or business having a contract with the city. For the
purpose of this chapter, the term “contractor” includes any person or business who is a party to a
real property agreement.
“Contractual services” mean all services, other than professional services, including, but
not limited to, repairs, maintenance work, software subscriptions, and rental equipment. The term
does not include services rendered by city officers or employees.
“Department” or “agency” means a department, agency, or other unit of the city
government whose affairs and funds are under the supervision and control of the city council.
“Designated position” means a city staff position authorized by the city manager to make
purchases consistent with this chapter subject to dollar limits set by the city manager.
“Domestic partner” means any person who has a currently registered domestic partnership
with a governmental body pursuant to State or local law authorizing such registration.
“Local business” means a vendor, contractor, or consultant who has a valid physical
business address located within one of the nine incorporated cities of the Coachella Valley, or
within an unincorporated area of Riverside County in the Coachella Valley within the boundaries
of the Coachella Valley Association of Governments, at least six months prior to bid or proposal
opening date, from which the vendor, contractor, or consultant operates or performs business on
a day-to-day basis, and holds a valid business license by a jurisdiction located in the Coachella
Valley. Post office boxes are not verifiable and shall not be used for the purpose of establishing
such physical address.
“Materials, supplies, and equipment” means any and all articles, things, or property, other
than real property, furnished to be used by any city agency.
“Paper products” include, but are not limited to, paper janitorial supplies, cartons,
wrapping, packaging, file folders, hanging files, corrugated boxes, tissue, and toweling, or as
otherwise defined in 14 CCR Section 18982(a)(51).
“Printing and writing papers” include, but are not limited to, copy, xerographic, watermark,
cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes,
book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters,
index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined
in 14 CCR Section 18982(a)(54).
Commented [1]: Since we have new definition of
“supplies” that includes materials and equipment,
suggest removing this definition and use “supplies”
throughout.
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“Professional services” means all services performed in a professional occupation
including, but not limited to, accounting, auditing, appraising, computer hardware and software
support, engineering, architectural, planning, environmental, redevelopment, financial, economic,
social services, legal, construction project management, communications, land surveying and
other similar professional functions which may be necessary for the operation of the city.
“Public project” means construction, reconstruction, erection, alteration, renovation,
improvement, and demolition work involving any publicly-owned, leased, or operated facility.
“Purchasing” means the procurement of public projects, contractual services, professional
services, and materials, supplies, and equipmentsupplies as needed by the city.
“Real property agreement” means any agreement for the sale, lease, or use of real
property owned by or in the lawful possession of the city, including without limitation concessions,
franchises, and easements.
“Recycled-content paper” means paper products and printing and writing paper that
consists of at least thirty percent, by fiber weight, postconsumer fiber, or as otherwise defined in
14 CCR Section 18982(a)(61).
“Subcontract” shall mean an agreement to: (i) provide supplies and/or services, including
construction labor, materials or equipment, to a contractor, if such supplies or services are
procured or used in the fulfillment of the contractor’s obligations arising from a contract with the
city; or (ii) to transfer the right to occupy or use all or a portion of a real property interest subject
to a property contract to a subcontractor and pursuant to which the contractor remains obligated
under the property contract.
“Subcontractor” means any person or business who enters into a subcontract with a
contractor. Such term shall include any person or business who enters into an agreement with
any subcontractor for the performance of 10 percent or more of any subcontract.
“Supplies” means any and all articles, things, goods, equipment, commodities, or property,
other than real property, furnished to be used by the City.”
3.30.030 Purchasing officer.
The purchasing officer shall be the city manager or designee. The city manager may
delegate some or all of the duties of that position to one or more subordinate employees. The
purchasing officer shall supervise the purchasing functions of the city. The purchasing officer is
authorized to establish methods and procedures for efficient and economical purchasing. (Ord.
1374 § 1, 2022; Ord. 1335 § 1, 2018)
3.30.040 Purchasing officer—Powers and duties.
The purchasing officer, in accordance with this chapter and any written policies and/or
procedures approved by the city manager consistent with this chapter, shall have the power to:
A Purchase and Contract. Purchase or contract for public projects, contractual
services, professional services, and materials, supplies, and equipmentsupplies required by the
city.
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B Purchasing Policies Procedures. Prepare and implement policies and procedures
governing the bidding, contracting, and purchasing of public projects, contractual services,
professional services, and materials, supplies, and equipmentsupplies for the city.
C Forms. Prescribe and maintain such forms as may be reasonably necessary to the
implementation of this chapter and any other policies and procedures approved by the city
manager consistent with this chapter.
D Surplus Materials, Supplies, and EquipmentSupplies. Establish policies and
procedures to sell, repurpose or dispose of any materials, supplies, and equipmentsupplies not
needed for public use or that are obsolete, damaged beyond repair, or may become unsuitable
for their intended use including establishing value thresholds for surplus.
E Purchase for Resale. Authorize the purchase of materials, supplies, and
equipmentsupplies for resale from such enterprises as the golf course, or visitor’s center to obtain
the best possible price for the desired merchandise by adopting a procedure approved by the city
manager. Such purchases shall not be subject to the award limits noted in this chapter, provided
funding is available within the appropriated budget.
F Bidder, Contractor and Vendor Lists and Catalogs. Develop and maintain any
bidder’s list, contractor’s list or vendor’s list necessary to the operation of this chapter and any
other policies and procedures approved by the city manager consistent with this chapter.
G Recycled Product Procurement Policy. Establish and maintain procedures and
specifications for the purchase of recycled-content paper and recycled-content paper products as
described in Section 3.30.190(A)(4).
3.30.050 General purchasing regulations, policies, and
procedures.
A Applicability of Chapter. The purchasing regulations contained in this chapter shall
apply to the procurement of public projects, contractual services, professional services, and
materials, supplies, and equipmentsupplies by the city.
B Purchasing Limits, Authorizations and Awards. The city manager may establish
dollar limits for authorizations and awards, consistent with this chapter, by designated positions,
for the procurement of public projects, contractual services, professional services, and materials,
supplies, and equipmentsupplies.
C Subsequent Contract Awards, Amendments, Extensions or Renewals.
Notwithstanding anything herein to the contrary, the city manager or designated position shall not
award a subsequent contract to the same individual or entity for the same or similar services on
the same project, or amend, extend or renew such a contract, without obtaining the next highest
approval authority (e.g., the city council for the city manager), when the award, amendment,
extension or renewal will result in the city paying an aggregate amount in excess of the approval
authority of the city manager to the individual or entity in any given fiscal year. For purposes of
this section, the phrase “same project” shall include an on-call or as-needed contract.
D Rejection of Bids and Proposals. At its discretion, the city council may reject any
and all bids, proposals, quotations, or prices secured through procurement methods consistent
with this chapter and take any other action deemed appropriate for the procurement of public
projects, contractual services, professional services, and materials, supplies, and
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equipmentsupplies.
E Appropriations Requirement. No contract or purchase shall be made unless the
director of finance shall have first confirmed that there is an unencumbered appropriation in the
fund against which such expenditure is to be charged sufficient to cover the amount of purchase
or contract, unless in cases of emergency.
F Performance Bonds. The city shall have authority to require a performance bond
before entering a contract in such an amount as it shall find reasonably necessary to protect the
best interests of the city.
G Confidentiality of Proposals. Contracts let pursuant to proposals permitting
negotiations shall be opened and their contents secured to prevent disclosure during the process
of negotiating with competing proposers. If proposals are opened publicly, only the names of the
proposers shall be revealed, while prices and other information concerning the proposals shall
not be disclosed until negotiations are complete and before award is made by the city council.
3.30.060 Public projects.
A Two Ten Thousand Dollars ($102,000) or Less. Public projects of Two Ten
Thousand Dollars ($210,000) or less may be awarded by a city department head the city manager
or designee after selecting a qualified contractor and negotiating a contract in the best interest of
the city.
B More than Ten Thousand Dollars ($10,000) to Seventy-Five Thousand Dollars
($75,000) or Less. Public projects of more than Ten Thousand Dollars ($10,000) to Seventy-Five
Thousand Dollars ($75,000) or less may be awarded by the city manager pursuant to the vendor
price quotes procedure (Section 3.30.120) after selecting a qualified contractor or any exception
consistent with this chapter. Utilization of the vendor price quotes requires the receipt of a minimum of two
quotes from responsible vendors. Public projects of up to Twenty-Five Thousand Dollars ($25,000)
may be awarded by a designated position, subject to the limits and authorizations established
under Section 3.30.050(B). The contract shall be awarded in the best interest of the city.
C More than Seventy-Five Thousand Dollars ($75,000) to Two-Hundred Fifty
Thousand Dollars ($250,000). Public projects of more than Seventy-Five Thousand Dollars
($75,000) to Two-Hundred Fifty Thousand Dollars ($250,000) shall, except as otherwise provided
in this chapter, be awarded by the city manager, to the extent the city council has budgeted funds
for the project, pursuant to the informal bidding procedure (Section 3.30.095) or any exception
consistent with this chapter and to the lowest responsible bidder.
D More than Two-Hundred Fifty Thousand Dollars ($250,000). Public projects of
more than Two-Hundred Fifty Thousand Dollars ($250,000) shall, except as otherwise provided
in this chapter, be awarded by the city council pursuant to the formal bidding procedure (Section
3.30.100) or any exception consistent with this chapter and to the lowest responsible bidder. The
city council may reject any or all bids received, and may waive any irregularities in each bid
received.
E Review and Approval of Plans and Specifications. The director of public works and
city engineer, or their designees, are authorized to review and approve engineering plans for all
public projects. This shall include the working details, drawings, plans and specifications prepared
for every public project, including emergency and change order work, which may affect the design
or operation of public improvements and which may bring into question the city’s liability for
dangerous conditions of public property.
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F Municipal Projects. Except on locally funded public projects of twenty-five
thousand dollars ($25,000) or less when the project is for construction work, or fifteen thousand
dollars ($15,000) or less when the project is for alteration, demolition, repair or maintenance work,
all contractors performing work on city public projects shall be subject to California Prevailing
Wage Law, codified at California Labor Code Section 1720 et seq., as it may be amended from
time to time, or otherwise proscribed by law. The only limitation on the provisions of this
subsection shall be in the event federal funding requirements supersede state prevailing wage
laws.
G Applicability of Public Contract Code.
1. Pursuant to Public Contract Code section 1100.7, the city is expressly exempt from
the Public Contract Code except to the extent the city has expressly adopted one or more
provisions of the Public Contract Code pursuant to the city charter, this code, city council
resolution or other city council action, or express terms of a city contract.
3.30.070 Contractual services.
A Tenwo Thousand Dollars ($102,000) or Less. Contractual services of Ten
Thousand Dollars ($10,000) or less may be awarded by the city manager or designee after
selecting a qualified vendor and negotiating a contract in the best interest of the city.
B More than Ten Thousand Dollars ($10,000) to Seventy-Five Thousand Dollars
($75,000) or Less. Contractual services of more than Ten Thousand Dollars ($10,000) to
Seventy-Five Thousand Dollars ($75,000) or less may be awarded by the city manager pursuant
to the vendor price quotes procedure (Section 3.30.120), best competitive value procedure
(Section 3.30.140), or any exception consistent with this chapter. Contractual services of up to
twenty-five thousand dollars ($25,000) may be awarded by a designated position, subject to the
limits and authorizations established under Section 3.30.050(B).
C More than Seventy-Five Thousand Dollars ($75,000) to Two-Hundred Fifty
Thousand Dollars ($250,000). Contractual services of more than Seventy-Five Thousand Dollars
($75,000) to Two-Hundred Fifty Thousand Dollars ($250,000) shall may be awarded by the city
manager pursuant to the informal bidding procedure (Section 3.30.095), best competitive value
procedure (Section 3.30.140), or any exception consistent with this chapter.
D More than Two-Hundred Fifty Thousand Dollars ($250,000). Contractual services
of more than Two-Hundred Fifty Thousand Dollars ($250,000) shall be awarded by the city council
pursuant to the best competitive value procedure (Section 3.30.140) or any exception consistent
with this chapter.
E Award. All contractual services shall be awarded in the best interest of the city,
determined in at the sole discretion of the city council, city manager, or designated position
authorized to award the contract.
3.30.080 Professional services.
A Ten Thousand Dollars ($10,000) or Less. Professional services of Ten Thousand
Dollars ($10,000) or less may be awarded by the city manager or designee after selecting a
qualified vendor and negotiating a contract in the best interest of the city.
B More than Ten Thousand Dollars ($10,000) to Seventy-Five Thousand Dollars
($75,000) or Less. Professional services more than Ten Thousand Dollars ($10,000) to of
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Seventy-Five Thousand Dollars ($75,000) or less may be awarded by the city manager pursuant
to the proposal procedure (Section 3.30.130), best competitive value procedure (Section
3.30.140), or any exception consistent with this chapter. Professional services of up to twenty-
five thousand dollars ($25,000) may be awarded by a designated position, subject to the limits
and authorizations established under Section 3.30.050(B).
C Seventy-Five Thousand Dollars ($75,000) to Two-Hundred Fifty Thousand Dollars
($250,000). Professional services of Seventy-Five Thousand Dollars ($75,000) to Two-Hundred
Fifty Thousand Dollars ($250,000) shall be awarded by the city manager pursuant to the proposal
procedure (Section 3.30.130), best competitive value procedure (Section 3.30.140), or any
exception consistent with this chapter.
D More than Two-Hundred Fifty Thousand Dollars ($250,000). Professional services
of more than Two-Hundred Fifty Thousand Dollars ($250,000) shall be awarded by the city council
pursuant to the best competitive value procedure (Section 3.30.140) or any exception consistent
with this chapter.
E Award. Contracts for professional services shall be awarded to the consultant who
will best serve the interests of the city, taking into account the demonstrated competence,
professional qualifications and suitability for the project in general. The city may consider cost of
professional services if determined to be a relevant factor under the circumstances, but cost shall
not be the sole determining factor.
3.30.090 Materials, supplies, and equipmentSupplies .
A Two Thousand Dollars ($2,000)Ten Thousand Dollars ($10,000) or Less.
Materials, supplies, and equipmentSupplies of Ten Thousand Dollars ($10,000)Two Thousand
Dollars ($2,000) or less may be awarded by a the city manager or designee department head after
selecting a qualified vendor and negotiating a contract in the best interest of the city.
B More than Ten Thousand Dollars ($10,000) to Seventy-Five Thousand Dollars
($75,000) or Less. Materials, supplies, and equipmentSupplies of more than Ten Thousand
Dollars ($10,000) to Seventy-Five Thousand Dollars ($75,000) or less may be awarded by the
city manager pursuant to the vendor price quotes procedure (Section 3.30.120), best competitive
value procedure (Section 3.30.140), or any exception consistent with this chapter. Priority for
awarding is to be given to the lowest price quote. Justification for award on basis other than
lowest price must be approved by the purchasing officer or designee. Materials, supplies, and
equipmentSupplies of up to twenty-five thousand dollars ($25,000) may be awarded by a
designated position, subject to the limits and authorizations established under Section
3.30.050(B).
C More than Seventy-Five Thousand Dollars ($75,000) to Two-Hundred Fifty
Thousand Dollars ($250,000). Materials, supplies, and equipmentSupplies of more than Seventy-
Five Thousand Dollars ($75,000) to Two-Hundred Fifty Thousand Dollars ($250,000) or less may
be awarded by the city manager pursuant to the informal bidding procedure (Section 3.30.095),
best competitive value procedure (Section 3.30.140), or any exception consistent with this
chapter. Priority for awarding is to be given to the lowest price quote. Justification for award on
basis other than lowest price must be approved by the purchasing officer Materials, supplies, and
equipment of up to twenty-five thousand dollars ($25,000) may be awarded by a designated
position, subject to the limits and authorizations established under Section 3.30.050(B). The
contract shall be awarded in the best interest of the city.
D More than Two-Hundred Fifty Thousand Dollars ($250,000). Materials, supplies,
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and equipmentSupplies of more than Two-Hundred Fifty Thousand Dollars ($250,000) shall,
except as otherwise provided in this chapter, be awarded by the city council pursuant to formal
bidding procedures and to the lowest responsible bidder or any exception consistent with this
chapter. The city council may reject any or all bids received and may waive any irregularities in
each bid received.
3.30.095 Informal bidding procedure.
A The informal bidding procedure shall follow the formal bidding procedure except that
the city shall maintain a list of prequalified vendors and contractors established by this chapter,
the notice inviting informal bids shall be provided to all vendors and contractors on the bidder list
and/or to a designated construction trade journals, or electronic bid platform not less than ten five
(105) calendar days before the date of opening bids, and award shall be by the city manager. The
development and maintenance of the vendor and contractors lists will be established by the
purchasing officer. Vendors and contractors must apply and be approved to be placed on a
prequalified vendoer list prior to the execution of any contract. Vendors may remain on the vendor
list no more than 24 months.
3.30.100 Formal bidding procedure.
A Uses of Formal Bidding Procedure. This formal bidding procedure shall be used
whenever formal bidding is required.
B Notice Inviting Formal Bids. Notice inviting formal bids shall be issued and at a
minimum: (1) describe the project; (2) state how to obtain more detailed information about the
project; (3) state the date, time and place for the submission of bids; and (4) include any other
information required by state or local law.
C Published Notice. The notice shall be published at least ten (10) calendar days
before the date of opening the bids on the city’s website and on an electronic bulletin board or an
Internet site that is a generally recognized source of local public works contract information.
D Bidder’s Security (Projects). All bids require one of the following forms of bidder’s
security: (1) cash; (2) cashier’s check made payable to the city; or (3) a bidder’s bond executed
by an admitted surety insurer made payable to the city. Such security shall be an amount at least
equal to ten percent of the amount bid. No bid shall be considered unless security in the form
above set forth is provided with the bid.
E Forfeiture of Security (Projects). If the successful bidder fails to execute the
contract and provide any required documentation, the bidder’s security shall be forfeited to the
city. The city council may, on refusal or failure of the successful bidder to execute such contract,
award the contract to the next lowest responsible bidder submitting a responsive bid. If the city
council awards the contract to the second lowest bidder, the amount of the lowest bidder’s security
shall be applied by the city to the difference between the low bid and the second low bid. The
surplus, if any, shall be utilized to offset any and all costs of preparation and printing of plans,
specifications, estimates of cost, publication of notices, and any surplus remaining shall be
returned to the lowest bidder who fails to execute the contract.
F Review of Bids. The city shall review all bids received for completeness, accuracy,
responsiveness to the notice inviting bids and bid documents, and the city’s experience with or
knowledge of the qualifications and reliability of each bidder and prepare a recommendation for
award to the city council. The city council may waive any irregularities in each bid received.
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G No Bids. If no bids are received, the city council may have the project done in any
manner that the city council may direct without further complying with this chapter.
H Award of Contract. The contract shall be awarded in accordance with all applicable
sections of this chapter. If two or more bids received are the same amount, the city council may
decide which bid to accept and award.
I Rejection of Bids. The city council may, in its sole and absolute discretion, reject
all bids presented. After all bids are rejected, the city council shall have the option of any of the
following:
1. Abandon the project;
2. Readvertise for bids in the manner described in this chapter;
3. Perform the work by employees of the city; or
4. Have the project done by force account, or procure materials, supplies,
and equipmentsupplies on the open market.
J Relief of Bidders. A bidder shall not be relieved of its bid unless by consent of the
city council nor shall any change be made in the bid because of mistake. The requesting party
should provide to the city council in written form the facts that establish to the satisfaction of the
city council that: (1) a mistake was made; (2) written notice was given to the city of that mistake
within five days, excluding Saturdays, Sundays, and state holidays, after the opening of the bids
specifying how the mistake occurred; (3) the mistake made the bid materially different than it was
intended to be; and (4) the mistake was made in filling out the bid and not due to error in judgment
or to carelessness in inspecting the site of the work, or in reading the plans or specifications.
If the protest does not comply with each of these requirements, the city may reject the
protest without further review. If the protest is timely and complies with the above requirements,
the city shall review the protest, any response from the challenged bidder(s), and all other relevant
information. The city will provide a written decision to the protestor in a reasonable amount of
time.
3.30.110 Standard Bid and Proposal Protest Procedures.
A Effect of Failure to Protest. The procedures set forth in this section are mandatory
and are the sole and exclusive remedy of a bidder, proposer or other vendor to dispute the award
of a contract that the city solicits through a competitive process. A protest that does not comply
with these procedures may be summarily rejected and the person submitting the protest shall be
deemed to have waived all rights to relief.
B Protests of Solicitation Method. By submitting a bid, proposal or other application
for a contract award, the bidder, proposer or other vendor shall be deemed to have waived all
rights to challenge the city’s method for procuring the contract or any discrepancy in the
solicitation process or documents. Bidders, proposers, or vendors may submit bids, proposals or
other applications under protest. Protests under this section shall be submitted in writing to the
official designated to receive the bid, proposal or other application and shall contain a full
summary of the factual and legal basis for the protest.
C Protests of Award. A bidder, proposer or other vendor applying for a city contract
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through a competitive process may submit a written protest of the award of the contract. The
protest shall identify and explain the factual and legal grounds for the protest. Any grounds not
raised in the written protest are deemed waived by the protesting bidder.
D Waiver. Any person that: (1) did not directly submit a bid or proposal, (2) is not
responsible or qualified to receive the contract, (3) failed to submit a responsive bid or proposal,
(4) is not in line to receive the contract or is otherwise ineligible to receive the contract, (5) is
otherwise not beneficially interested in the award, or (6) fails to submit a timely protest shall be
deemed to have waived the right to protest the award of the contract. Any protest deemed waived
will be subject to summary rejection without further consideration and the person will have no right
to any relief.
E Timing of Protest of Award. Protests shall be submitted in writing to the official
designated to receive the bid, proposal or other application within the following times:
1. If of another bidder, within five (5) calendar days after the bid opening date.
2. If the city makes a recommendation to the city council to award a proposal or
other application, then within five (5) calendar days following the issuance of the
recommendation and prior to the date of the award.
3. If in response to a notice of intent to reject a bid, proposal or other application,
then within five (5) calendar days following the issuance of the notice of intent.
F City Response. If the protest is timely and complies with the above requirements,
the city shall review the protest, any response from the challenged bidder, proposer or other
vendor, and all other relevant information. The city will provide a written decision to the protestor
in a reasonable amount of time. If the protest is in response to a recommendation of award to the
city council, then the protest will be considered concurrently with the award of the contract, and
the approval authority’s action is final.
G Conflicts. The protest procedures contained in this section shall not apply if a
particular solicitation contains a different protest procedure. This section does not limit or eliminate
a claimant’s obligations under the Government Claims Act, Government Code Section 900 et seq.
3.30.120 Vendor price quotes procedure.
City staff shall solicit from an approved list of vendors via posted notice, telephone request,
mail, email, electronic bid platform or any other reasonable solicitation method, price quotes
documented in writing. If unable to obtain a minimum of three (3) price quotes from approved
qualified vendors, staff shall document that reasonable efforts were made to obtain price quotes
including, that a notice was posted for not less than three (3) business days; that there were no
other vendors to solicit price quotes from; or that they solicited to other vendors and one or more
declined to provide a quote.staff shall procure by the best competitive value procedure (Section
3.30.140). The development and maintenance of the list of approved vendors will be established
by the purchasing officer.
3.30.130 Proposal procedure.
City staff shall solicit from an approved list of vendors via posted notice, telephone request,
mail, email, electronic bid platform or any other reasonable solicitation method, proposals
documented in writing. If unable to obtain a minimum of three (3) proposals from approved
qualified professional service firms, staff shall document that reasonable efforts were made to
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obtain proposals including, that a notice was posted for not less than three (3) business days; that
there were no other vendors to solicit proposals from; or that they solicited to other vendors and
one or more declined to provide a proposal., staff shall procure by the best competitive value
procedure (Section 3.30.140). The development and maintenance of the list of approved vendors
will be established by the purchasing officer.
3.30.140 Best competitive value procedure.
The best competitive value procedures utilizes request for qualifications (“RFQ”) and/or
request for proposals (“RFP”) to engage services on the basis of demonstrated competence and
qualifications for the types of services to be performed and at fair and reasonable prices to the
city. The following minimum guidelines and procedures shall be implemented.
A Notice Inviting RFQs or RFPs. At a minimum, the notice inviting RFQs or RFPs
shall: (1) describe the project; (2) state how to obtain more detailed information about the project;
(3) state the date, time and place for the submission of qualifications or proposals; (4) describe
general parameters for evaluation and selection; and (5) include any other information required
by state or local law.
B Published Notice. City staff shall solicit RFQs or RFPs via published notice on the
city’s website or a website that electronically receives bids for not less than five (5) calendar days.
C Review of Qualifications or Proposals. City will review and evaluate qualifications
or proposals based on the evaluation and selection criteria in the RFQs/RFPs and rank proposals
based on factors listed in the RFQ/RFP.
D Negotiation. Once proposals are ranked, city may negotiate a contract with the
highest ranked proposer only, may negotiate with multiple proposers, or may attempt to reach an
agreement with the highest ranked proposer before negotiating with other proposers in order of
ranking. City may also dispense with negotiations and recommend an award based on the
proposals.
E Award. Award will be made in accordance with this chapter.
F Rejection of Proposals or Qualifications. The city council may, in its sole and
absolute discretion, reject all qualifications or proposals presented and re-advertise.
3.30.150 Alternative project delivery.
As an alternative to the formal bidding procedure set forth in this chapter, the city may, for
public projects, cause to be prepared estimates and documents for the procurement of public
projects through alternative project delivery. Upon approval by the city council, the city may use
the following methods of project delivery: design-build, progressive design-build, and construction
manager/general contractor method. The purchasing officer is authorized to establish the
procurement procedures for these methods of project delivery. As used in this chapter:
A “Best value” means a value determined by evaluation of objective criteria that
relate to price, features, functions, life-cycle costs, experience, and past performance. A best
value determination may involve the selection of the lowest cost proposal meeting the interests
of the city and meeting the objectives of the project.
B “Construction Manager/General Contractor method” means a project delivery
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method in which a construction manager is procured to provide preconstruction services during
the design phase of the project and construction services during the construction phase of the
project. The contract for construction services may be entered into at the same time as the
contract for preconstruction services or at a later time. The execution of the design and the
construction of the project may be in sequential phases or concurrent phases. A Construction
Manager/General Contractor method contract shall be awarded on a best value or qualifications
basis.
C “Design-build” means a project delivery process in which both the design and
construction of a project are procured from a single entity. Design-build shall be awarded on a
best value basis.
D “Progressive design-build” means a project delivery process in which both the
design and construction of a project are procured from a single design-build entity that is selected
through a qualifications-based selection at the earliest feasible stage of the project. A progressive
design-build contract shall be awarded on a best value or qualifications basis.
E
3.30.160 Exceptions to procurement methods.
A Minimum Procurement Levels. When the city manager establishes a minimum
dollar threshold where the procurement of public projects, contractual services, professional
services, and materials, supplies, and equipmentsupplies are not subject to any of the required
procurement methods in this chapter. The city shall work to procure these items in the best interest
of the city.
B Disaster Relief. When in the case of a disaster, as further explained in Chapter
2.48, the requirements of this chapter do not apply.
C Emergency. While the need for occasional emergency purchases is recognized,
the practice must be curtailed as much as possible by anticipating needs so that normal
purchasing procedures may be used.
1. “Emergency” means a sudden, unexpected occurrence that poses a clear,
eminent danger requiring immediate action to protect the health and safety of the public,
including to prevent or mitigate the loss or impairment of life, health, property or public
services.
2. In the case of an emergency which requires the immediate procurement of
public projects, contractual services, professional services or materials, supplies, and
equipmentsupplies, the city manager may authorize the purchasing officer to procure these
items without regard to the provisions of this chapter; provided that a written public record
shall be kept showing the nature of the emergency and the city manager’s authorization to
proceed under the provisions of this section. The city manager shall terminate the
emergency action at the earliest possible date that conditions warrant.
D No Competitive Market. When the city council manager determines that a
competitive market does not exist or that the city will not gain a competitive advantage by using
the formal bidding procedure, the city may use any other procurement method.
E Competitive Bidding Already Completed. When the purchasing officer, with the
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approval of the city manager, determines that: (1) a competitive bid procedure has been
conducted by another public agency, including, but not limited to, another local agency, the state
through the California Multiple Award Schedule (CMAS), the federal government through the
General Services Administration (GSA), or a joint powers agency, authority or alliance that
procures competitive contracts; and (2) the price to the city is equal to or better than the price to
that public agency.
F State Purchase. When the purchase is made on behalf of the city by the State
Department of General Services.
G Mandated Expenditures. When expenditures are mandated by law or regulation,
such as county booking fees, utilities, postage (for delivery charges through the U.S. Postal
Service), waste disposal fees or other non-negotiable permit, use or application fees.
H Shared Services. When the city council or city manager authorizes the award and
execution of contracts for services, subject to the dollar limits consistent with this chapter, that are
provided by another government, public entity, joint powers authority, quasi-governmental entity,
special district or nonprofit entity that will maximize efficiency, increase cost effectiveness,
increase range of services, minimize duplication, provide training or education encourage
collaboration or standardize efforts, or leverage government resources.
I Best Interest of City. When the city council or city manager authorizes the award
and execution of contracts, subject to the dollar limits consistent with this chapter, without
competitive bidding provided that the city council or city manager finds that such award is in the
best interest of the city, or of the public health, safety, and welfare.
J Sole Source. When the city manager determines that there is only one source that
provides the needed public project, contractual service, professional service or materials,
supplies, and equipmentsupplies or a product to ensure compatibility with other city products and
equipment, the city shall work to procure these items in the best interest of the city.
K Purchase of Recurring Charges,.
1. The Purchasing purchasing Oofficer may create an open approved vendor list for
the purposes of providing specified services and goods for the fiscal year for ongoing cleanup,
maintenance and different routine items that are of a continuing nature. The development and
maintenance of the vendor list and specified services list will be established by the purchasing
officer.
2. Prior to each fiscal year, an invitation to provide pricing for certain goods or
services should be posted and remain posted through the fiscal year to offer vendors to provide
pricing throughout the year and provide equal bidding opportunities. Additions to the vendor list
may be approved continuously by the purchasing officer. Prices from each vendor shall be
obtained in a manner to ensure competitive pricing, in the best interest of the city. Vendors shall
be required provide updated pricing annually.
3. The aggregate yearly threshold for each vendor may be determined by the city
council, at the recommendation of the city managershall not exceed $25,000. A vendor list may
be approved by the city council as often as necessary but not less than once every twenty four
(24) months.
4. Vendors may remain on the list without reapplying for three (3) years plus two one-
year extensions at the request of city staff.
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5. Utilization of vendors on the list is to be prioritized by pricing, then by other
appropriate criteria including quality, capability, availability, or similar criteria. Exceptions to the
prioritization of pricing is subject to approval by the finance director or designee.
L Technology Recurring Charges:
1. When renewing maintenance/support services, license(s), or addressing similar
needs for existing technology systems (software and hardware) procurement is permissible
directly from the original developer/manufacturer or sole source provider if the city manager has
determined that negotiations have yielded the best price, terms, and conditions.
2. When renewing maintenance/support services, license(s), or addressing similar
needs for existing technology systems (software and hardware) procurement is permissible
directly from a vendor/reseller previously selected following the City’s procurement standards;
provided, that (1) the vendor/reseller has been used continuously since such selection, (2) the
renewal involves no substantive changes, and (3) the city manager determines that proceeding
with the vendor/reseller serves the City’s best interests.
M Otherwise Authorized. When otherwise authorized by this chapter or applicable
law.
3.30.170 Change orders.
B The city manager or designee shall have authority to approve change orders for
public projects, contractual services, professional services, and materials, supplies, and
equipmentsupplies previously awarded by the city manager, provided that change orders
aggregated with the original contract do not exceed Two-Hundred Fifty Thousand Dollars
($250,000)Seventy-Five Thousand Dollars ($75,000), subject to an unencumbered appropriation
in the fund against which such expenditure is to be charged.
C During the award of a contract by the city council, the council may give the city
manager the authority to approve change orders, specific to that contract, based on either a
percentage of the contract or a specific dollar amount. If no specific authority is given by the city
council, the city manager may approve change orders for a city council awarded contract subject
to the dollar limits consistent with this chapter, provided such change orders are within the
approved contingency.
D Change orders in excess of the city manager’s authority may be approved by the
city manager and submitted to city council for ratification under the following circumstances:
1. The failure to immediately issue a change order may result in significant project
cost increases or an unacceptable project delay due to work stoppage or other inefficiencies;
2. A special meeting or a regularly scheduled meeting of the city council is not
scheduled within a reasonable period of time to sufficiently remedy the problem; and
3. Funding for the change order is currently available within the appropriated budget.
3.30.180 Local business preference program.
A Statement of Policy. It is the policy of the city to promote employment and business
opportunities for local residents and firms on all contracts and give preference to local residents,
workers, businesses, contractors, and consultants to the extent consistent with the law and
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interests of the public.
B Local Preference in Purchasing. In the bidding of, or letting for procurement of,
supplies, materials, and equipment, as provided in this chapter, the purchasing officer may give
a preference to local businesses in making such purchase or awarding such contract in an amount
not to exceed five percent of the local business’ total bid price. Total bid price shall include not
only the base bid price but also adjustments to that base bid price resulting from alternates
requested in the solicitation. In order for a local business to be eligible to claim the preference,
the business must request the preference in the solicitation response and provide a copy of its
current business license from a jurisdiction in the Coachella Valley.
C Local Preference in Professional Services. In awarding contracts for professional
services, including consultant services, preference to local business shall be given whenever
practicable pursuant to this chapter consistent with the statement of policy in subsection A of this
section. The contractor or consultant will also, to the extent legally possible, solicit applications
for employment and proposals for subcontractors and sub-consultants for work associated with
the proposed contract from local residents and firms as opportunities occur and hire qualified local
residents and firms whenever feasible. In order for a local business to be eligible to claim the
preference, the business must request the preference in the solicitation response and provide a
copy of its current business license from a jurisdiction in the Coachella Valley.
D Exceptions to Local Business Preference Policy. The preference set forth in this
section shall not apply to the following purchases or contracts:
1. Goods or services provided under a cooperative purchasing agreement;
2. Purchases or contracts which are funded in whole or in part by a
governmental entity and the laws, regulations, or policies governing such funding prohibit
application of that preference;
3. Purchases made or contracts let under emergency or noncompetitive situations;
4. Purchases with an estimated cost of twenty-five thousand dollars or more;
5. Application of the local business preference to a particular purchase,
contract, or category of contracts for which the city council is the awarding authority may be
waived at the city council’s discretion;
6. Public projects;
7. Bids that are nonresponsive.
E Quality and Fitness. The preferences established in this section shall in no way be
construed to inhibit, limit or restrict the right and obligation of the purchasing officer to compare
quality and fitness for use of supplies, materials, equipment, and services proposed for purchase
and compare the qualifications, character, responsibility, and fitness of all persons, firms, or
corporations submitting bids or proposals. In addition, the preferences established in this section
shall in no way be construed to prohibit the right of the city council or the purchasing officer from
giving any other preference permitted by law or this chapter.
F Verification of Local Business Preference Eligibility. Any vendor or consultant
claiming to be a local business, shall so certify in the bid. The purchasing officer shall not be
required to verify the accuracy of any such certifications, and shall have sole discretion to
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determine if a vendor or consultant meets the definition of “local business.”
G Enforcement.
1. The information furnished by each bidder requesting a local business preference
shall be under penalty of perjury.
2. No person or business shall knowingly and with intent to defraud, fraudulently
obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or
attempting to obtain or retain certification as a local business for the purpose of this section.
3. No person or business shall willfully and knowingly make a false statement with
the intent to defraud, whether by affidavit, report, or other representation, to a city official or
employee for the purpose of influencing the certification or denial of certification of any entity as
a local business.
4. A business which has obtained city certification as a local business by reason of
having furnished incorrect supporting information or by reason of having withheld information, and
which knew or should have known the information furnished was incorrect or the information
withheld was relevant to its request for certification, and which by reason of such certification has
been awarded a contract to which it would not otherwise have been entitled, shall:
a. Pay to the city any difference between the contract amount and what the
city’s costs would have been if the contract had been properly awarded;
b. In addition to the amount described in subsection (G)(4)(a), be assessed a
penalty in an amount of not more than ten percent of the amount of the contract involved;
and
c. Be subject to debarment from future award of contracts from the city.
5. The penalties identified in subsection (G)(4) shall also apply to any business that
has previously obtained proper certification and, as a result of a change in its status would no
longer be eligible for certification, fails to notify the purchasing officer of this information prior to
responding to a solicitation or accepting a contract award.
3.30.190 Preference for recycled content.
A Environmentally Preferable Practices. The city will act to make resource
conservation an integral part of its waste reduction and recycling programs. The practice of
discarding materials used in the city facilities is wasteful of natural resources, energy, and money.
1. The city will integrate the concept of resource conservation, including waste
reduction and recycling, into its environmental programs.
2. The city will decrease the amount of waste of consumable materials by:
a. Reducing the consumption of consumable material wherever possible.
b. Fully utilizing all material prior to disposal.
c. Minimizing the use of nonbiodegradable products wherever possible.
3. The city will cooperate with, and participate in, recycling efforts being made
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by the city and county. As systems for recovering waste and recycling develop within the
city limits, the city will participate by appropriately separating and allowing recovery of
recyclable waste products.
4. All vendors providing paper products and printing and writing paper shall:
a. Provide recycled-content paper products and recycled-content printing and
writing paper that consists of at least thirty percent, by fiber weight, postconsumer fiber, if
fitness and quality are equal, and available at equal or lesser price.
b. Provide paper products and printing and writing paper that meet Federal
Trade Commission recyclability standard as defined in 16 Code of Federal Regulations
(CFR) Section 260.12.
c. Certify in writing, under penalty of perjury, the minimum percentage of
postconsumer material in the paper products and printing and writing paper offered or sold
to the city. This certification requirement may be waived if the percentage of postconsumer
material in the paper products, printing and writing paper, or both can be verified by a product
label, catalog, invoice, or a manufacturer or vendor internet website.
d. Certify in writing, on invoices or receipts provided, that the paper products
and printing and writing paper offered or sold to the city is eligible to be labeled with an
unqualified recyclable label as defined in 16 Code of Federal Regulations (CFR) Section
260.12.
B Representatives of the city will actively advocate, where appropriate, for resource
conservation practices to be adopted at the local, regional, and national levels.
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.
3.30.200 Nondiscrimination in contracting.
A. Statement of Policy.
1. It is the policy of the city to promote the principles of equal opportunity in its contracting
activities by assuring that those seeking to do business with the city will treat contractors,
subcontractors, and employees equally and will not engage in discrimination against their contractors,
subcontractors, or employees because of their actual or perceived race, color, religion, ancestry,
national origin, disability, medical condition, marital status, domestic partner status, sex, gender,
gender identity, gender expression, or sexual orientation or as a member of any other protected class.
2. It is also the policy of the city to ensure that work performed on behalf of the city is
done in a cost effective and high quality manner
B. Basic Contract Requirement Prohibiting Discrimination. The city shall not enter into
any contract valued at more than $10,000 with any contractor, unless such contractor agrees to be
bound by contract to provisions prohibiting discrimination in employment and the provision of
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employment benefits on the basis of actual or perceived race, color, religion, ancestry, national origin,
disability, medical condition, marital status, domestic partner status, sex, gender, gender identity,
gender expression, or sexual orientation as these terms are defined by California law, or association
with members of classes protected under this Section or in retaliation for opposition to any practices
forbidden under this Section, against any person seeking accommodations, advantages, facilities,
privileges, services, or membership in all business, social, or other establishments or organizations,
operated by that contractor, and shall require such contractor to include a similar provision in all
subcontracts.
C. Certification. Every contractor certify compliance with the City’s nondiscrimination
policy prior to contract award in a form acceptable to the city manager. No contract shall be awarded
until the contractor has submitted to the city such certification. The certification shall contain the
following:
1. Contractor certifies and represents that, during the performance of the contract, the
contractor and any other parties with whom it may subcontract shall adhere to the city’s
nondiscrimination policy as provided in the Section.
2. Contractor shall, in all solicitations or advertisements for applicants for employment
placed by or on behalf of this contract, state that it is an “equal opportunity employer” or that all
qualified applicants will receive consideration for employment without regard to their actual or
perceived race, color, religion, ancestry, national origin, disability, medical condition, marital status,
domestic partner status, sex, gender, gender identity, gender expression, or sexual orientation.
3. If requested to do so by the purchasing officer, contractor shall provide the city with
access to copies of relevant records pertaining or relating to its employment practices, except to the
extent such records or portions of such records are confidential or privileged under state or federal
law.
4. Nothing contained in this contract shall be construed in any manner so as to require
or permit any act which is prohibited by law.
5. The contractor shall include the provisions set forth in paragraphs (1)—(4) of this
Subsection (C) of this Section, inclusive, in each of its subcontracts.
D. Investigation and Monitoring. All contracts shall include appropriate provisions that will allow
the purchasing officer to review, monitor, and investigate compliance with this Section and to require
each contractor to allow and provide full access to all applicable records, rules, regulations,
documents, and other pertinent data necessary for the qualitative and quantitative evaluation of each
contractor’s compliance with the provisions of this Section.
E. Enforcement.
1. In the event the purchasing officer determines the contractor is not in substantial
compliance with the provisions of this Section, the purchasing officer may recommend to the city
manager, the initiation of one or more of the following rights and remedies described in this
subsection, in addition to any rights and remedies otherwise provided in the applicable contract or by
law or equity:
a. Termination of the contract and bar the contractor from bidding on future
contracts with the city for two (2) years from the effective date of the contract termination;
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b. Assess liquidated damages in the amounts specified in the contract where it is
found the contractor willfully violated the requirements of this Section; and
c. Seek recovery of reasonable attorneys’ fees and costs incurred for
enforcement of this Section.
2. The purchasing officer shall issue written findings and mail a copy of the findings to
the contractor by first class mail and by any other means provided in the contract.
F. Appeals.
1. Within five (5) business days of the notice of the purchasing officer’s findings, the
contractor may file a written appeal of the purchasing officer’s determinations to the city clerk.
2. The city clerk shall set the matter for hearing and shall cause a Notice of Hearing to
be given to the contractor and to such other persons as may have identified themselves as interested
in the decision.
3. The hearing shall be conducted as an independent reexamination of the matter before
an independent hearing officer. The contractor shall have the burden of proof in all cases, and if the
contractor fails to appear either in person or by counsel, or fails to present or offer any evidence, the
hearing officer may adopt the decision of the purchasing officer or may decide the matter upon the
record with or without taking any additional evidence. Any oral or documentary evidence may be
received, but the hearing officer shall exclude irrelevant, immaterial or unduly repetitious evidence.
The hearing officer’s decision shall be made upon substantial evidence. In other words, if an essential
finding is based upon hearsay or secondary evidence, such evidence must be of the type which would
be admissible in a court of law as proof of such finding.
4. Upon the hearing of the appeal the hearing officer may refer the matter back to the
purchasing officer with directions for further consideration, or the hearing officer may reverse, affirm,
or modify the decision as may appear just and reasonable in light of the evidence presented. The
decision of the hearing officer shall be supported by written findings and shall include the reasons for
the ruling. Notice of the hearing officer’s decision shall be served on the contractor, the purchasing
officer, and the city clerk. The hearing officer’s decision shall be final.
G. Exceptions and Waivers.
1. The city manager may waive the requirements of this Section under the following
circumstances:
a. Whenever the city manager finds that there is only one prospective contractor
willing to enter into a real property agreement with the city for use of city property on the terms
and conditions established by the city, or that the needed goods, services, construction
services for a public work or improvement, or interest in or right to use real property are
available only from a sole source, and the prospective contractor is not currently disqualified
from doing business with the city, or from doing business with any governmental agency
based on any contract compliance requirements;
b. Where the city manager determines that the contract or real property
agreement is necessary to respond to an emergency which endangers the public health or
safety and no entity which complies with the requirements of this Section capable of
responding to the emergency is immediately available; provided that such certification must
be made prior to or within five (5) business days of execution of the contract or real property
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agreement on behalf of the city;
c. Where the city attorney certifies in writing to the city council that the contract
involves specialized litigation requirements such that it would be in the best interests of the
city to waive the requirements of this Section; provided such certification is made prior to
execution of the contract on behalf of the city.
2. This Section shall not apply where the prospective contractor is a public entity and the
city manager finds that supplies, services, construction for a public project or improvement or interest
in or right to use real property of comparable quality or accessibility as are available under the
proposed contract or property contract are not available from another source, or that the proposed
contract or property contract is necessary to serve a substantial public interest.
3. This Section shall not apply where the city manager finds that the requirements of this
Section will violate or are inconsistent with the terms or conditions of a grant, subvention or agreement
with a public agency or the instructions of an authorized representative of any such agency with
respect to any such grant, subvention or agreement, provided that the contracting officer has made
a good faith attempt to change the terms or conditions of any such grant, subvention or agreement
to authorize application of this Section.
4. Upon the request of a potential contractor or upon the purchasing officer’s own
initiative, after taking all reasonable measures to find an entity that complies with the law, the city
manager may waive any or all of the requirements of this Section for any contract, real property
agreement, or bid package advertised and made available to the public, or any competitive or sealed
bids received by the city under the following circumstances:
a. Where the city manager determines that there are no qualified responsive
bidders or prospective contractors who could be certified as being in compliance with the
requirements of this Section and that the contract or real property agreement is for supplies,
services, or a public project that is essential to the city or city residents; or
b. Where the city manager determines that transactions entered into pursuant to
bulk purchasing arrangements through federal, State, or regional entities which actually
reduce the city’s purchasing costs would be in the best interests of the city; or
c. Where the city manager determines that the requirements of this Section would
result in the city’s entering into a contract with an entity that was set up, or is being used, for
the purpose of evading the intent of this Section, which is to prohibit the city from entering into
contracts with entities that discriminate based on the criteria set forth in this Section.
5. The waiver authority granted to the city manager in this Subsection shall be subject to
the requirements that:
a. All proposed waivers must set forth the reasons the city manager is requesting
the waiver, what steps were taken to find an entity that complies with this Subsection and why
the waiver does not defeat the intent of this Section, which is to prohibit the city from entering
into contracts with entities that discriminate based on the criteria set forth in this Chapter.
Such waivers shall be filed with the city clerk and a notice of such waiver shall be presented
to the city council on the next available city council agenda; and
b. For any contract or real property agreement subject to approval by the city
council, the city manager shall include a statement in the approving resolution and related
staff report whether any waiver under this Section is proposed for that contract.”
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Page 1 of 6
CITY OF PALM DESERT AND PALM DESERT HOUSING AUTHORITY
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Jessica Gonzales, Housing Manager
REQUEST: SECOND AMENDED AND RESTATED DDLA, RELATED RESOLUTIONS,
LOANS IN THE AMOUNT OF $1,965,539 AND $4,789,461 FROM THE
AUTHORITY, AND ACTIONS RELATED TO THE CONVEYANCE OF THE
PARCELS IDENTIFIED AS APN 694-120-028 AND A PORTION OF 694-120-
029 FOR AFFORDABLE HOUS
RECOMMENDATION:
1. City Council: Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A SECOND “AMENDED AND
RESTATED DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT” REGARDING
“PALM VILLAS AT MILLENIUM” AMONG THE CITY, AS SELLER, THE PALM DESERT
HOUSING AUTHORITY, AS LENDER, AND PALM COMMUNITIES, A CALIFORNIA
LIMITED COMPANY, AS PURCHASER/ BORROWER/ DEVELOPER, IN CONNECTION
WITH APPROXIMATELY 10.49 ACRES OF PROPERTY OWNED BY THE CITY, AND
TAKING RELATED ACTIONS.”
2. Housing Authority: Adopt a Resolution entitled, “A RESOLUTION OF THE PALM DESERT
HOUSING AUTHORITY APPROVING A SECOND “AMENDED AND RESTATED
DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT” REGARDING “PALM VILLAS AT
MILLENIUM” AMONG THE AUTHORITY, AS LENDER, THE CITY OF PALM DESERT, AS
SELLER, AND PALM COMMUNITIES, A CALIFORNIA LIMITED COMPANY, AS PURCHASER/
BORROWER/ DEVELOPER, IN CONNECTION WITH APPROXIMATELY 10.49 ACRES OF
PROPERTY OWNED BY THE CITY, APPROPRIATING FUNDS IN CONNECTION
THEREWITH, AND TAKING RELATED ACTIONS.”
3. Authorize the Authority to make two loans to the Developer for the purchase of the Property
and construction of the Project ($1,965,539 for Phase I and $4,789,461 for Phase II), to be
repaid from a percentage of residual receipts (i.e., net income) from the Project over the
term of the loans, with any accrued interest and unpaid principal coming due 55 years from
the completion of the Project, with such loans being secured by a subordinate deed of trust
on the Project.
4. Authorize the Director of Finance to appropriate $6,755,000 from Unobligated Housing Asset
Fund balance to the appropriate budget line item.
5. Authorize the Director of Finance to designate the proceeds of the sale of the City-owned property
for the purpose of future affordable housing.
6. Authorize Mayor/Chairman, staff, and legal counsel to negotiate, execute and record
agreements and necessary documents to effectuate the resolutions, including the conveyance
of the Property, the funding commitments, and related actions for the Project as set forth in the
Second Amended and Restated DDLA.
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City of Palm Desert and Housing Authority
Second Amended and Restated DDLA - Palm Communities
Page 2 of 6
BACKGROUND/ANALYSIS:
On October 13, 2022, City Council approved the conveyance of a City owned 10 -acre parcel
identified as APN 694-120-028 and a 0.49-acre parcel identified as a portion of APN 694-120-
029 (the "Property") to Palm Communities, Inc. ("Developer") and the Authority Board approved
two loans from the Authority’s Low and Moderate Income Housing Asset Fund (“Housing Fund”)
in the total amount of $6,755,000 to the Developer pursuant to a Disposition, Development and
Loan Agreement, dated November 23, 2022 ("DDLA"), for the purchase of the Property and
construction of 239 affordable housing units and two manager units in two phases ("Project").
As part of the approval, the Developer was authorized to submit applications to the various
financial funding sources identified for the Project. The application submitted to the California
Debt Limit Allocation Committee ("CDLAC") did not score sufficient points for an allocation of
tax-exempt bonds ("Tax-Exempt Bonds") and federal and state tax credits ("Tax Credits").
However, the Project did receive a $6,700,000 loan from the County of Riverside ("County") as
well as 45 project-based vouchers ("PBVs").
The Developer requested an amendment to the DDLA to extend the escrow closing to June
2026, extend the Project completion date to June 30, 2028, modify the Project to consist of only
one phase, modify the City and Authority's affordability restrictions, require the City to provide a
land carry-back loan in the amount of $3,425,000 (fair market purchase price), and decrease the
Authority's loans from $6,755,000 to $3,330,000. The purpose of this amendment was to allow the
Project to receive additional points in the MHP Loan application, an additional funding source the
Developer was seeking. On June 14, 2023, the City Council and Authority approved an
Amended and Restated Disposition and Development Agreement, dated June 22, 2023 (the
“First Amended and Restated DDLA”) in accordance with their request.
Developer was not successful in the MHP Loan application and is now requesting amendments
to the First Amended and Restated DDLA pursuant to the proposed Second Amended and
Restated DDLA. However, the Project did receive an additional 75 PBVs from the County.
Attached is the proposed Second Amended and Restated DDLA among the City, Authority and
Developer. Adoption of the resolutions will approve the Second Amended and Restated DDLA
with the Developer.
The Second Amended and Restated DDLA stipulates that the City convey the Property to the
Developer in two phases and provides two loan commitments from the Authority in the amounts
of $1,965,539 and $4,789,461. The second Amended and Restated DDLA requires the City to
sell the Property to the Developer for a total of $3,425,000. The Second Amended and Restated
DDLA also increases the Authority Loan from $3,330,000 to two loans totaling $6,755,000 from
the Housing Fund. The affordability restrictions will remain unchanged from the First Amended
and Restated DDLA. Finally, the resolutions approving the Second Amended and Restated
DDLA authorize the City/Authority's staff and legal counsel to proceed to execute and record
any agreements and documents deemed necessary for the conveyance of the Property and the
financing and construction of the Project, and the Second Amended and Restated DDLA
includes the City Manager's right to terminate agreement if the Developer fails to obtain an award of
Tax Credits by the end of 2024.
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City of Palm Desert and Housing Authority
Second Amended and Restated DDLA - Palm Communities
Page 3 of 6
If the required funding sources are awarded to the Project, the Property owned by the City will
be sold, subject to satisfaction of the conditions to closing for a two-phased Project, which are
typical closing conditions for a DDLA. Conditions to the closing of the sale of the two parcels
include the recording of a parcel map, payment of grading permit fees and all final parcel map
fees and recording of certain easements (which may occur at the close of escrow) for access
over a portion of adjacent property owned by the City (providing access to remove sand adjacent
to a future boundary wall).
The attached City and Authority resolutions approve the Second Amended and Restated DDLA,
including the exhibits attached thereto, substantially in the form presented to the City Council
and Authority Board at this meeting ("Second Amended and Restated DDLA Documents") and
authorize staff and officers of the City and Authority to finalize, execute and record the Second
Amended and Restated DDLA Documents, as applicable, and any other agreements and
documents necessary to implement the Second Amended and Restated DDLA Documents at the
closing of escrow.
Project: The Project will be operated for a period of fifty-five (55) years following the date of
Certificate of Occupancy ("COO") for each phase of the Project to provide rental housing
affordable to persons and families of low and extremely low income in accordance with the
affordability restrictions contained in the Second Amended and Restated DDLA and the Tax-
Exempt Bonds, 4% Federal Tax Credits, State Tax Credits, County Loan and PBVs being used
to finance the two phases of the Project. To the extent necessary, the Authority will subordinate
the deed of trust securing the two Loans (as described below) to the liens and encumbrances
of the Project's construction and permanent lenders. However, the City and Authority will not
subordinate their interests in the Density Bonus Housing Agreements (described below) or the
Authority Housing Agreements (described below) to such liens or encumbrances.
Contractor. The Project contractor will be an affiliate of the Developer. In lieu of requiring multiple
bids from third party contractors, City staff has confirmed that the contract price is reasonable
given the requirement of State and Federal prevailing wages, increasing interest rates and
construction costs. However, the Second Amended and Restated DDLA requires, as a condition
to closing, that the Developer provide to the Authority the primary construction lender's cost
analysis, or, alternatively, that the Developer pay for a City obtained cost review.
Density Bonus Housing Agreements. In order to develop the 241-unit Project (121 units in
Phase I and 120 units in Phase II), the approved entitlements include the use of the City's
Density Bonus Ordinance, which also allows for fewer parking spaces to be included in the
Project than required by the City's Municipal Code. The Density Bonus provision was able to
be used by the Project because at least 20% of the units will be restricted to very-low Income
households. The two Density Bonus Housing Agreements have a term of fifty-five (55) years
from COO and restricts 12 units in each phase to very-low income households, for a total of 24
Density Bonus units.
Authority Loan Terms. The Authority Loans shall be in the principal amount of $1,965,539
(Phase I) and $4,789,461 (Phase II) and be made from the Authority's Housing Fund, and
commence as of the effective date of the Loan Agreements and have a term of fifty-five (55)
years from the COO, bear simple interest at three percent (3%) per annum and will be repaid
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City of Palm Desert and Housing Authority
Second Amended and Restated DDLA - Palm Communities
Page 4 of 6
from a proportional share (50%) of the Project's residual receipts and the Authority Loans will be
due and payable at the end of the loan term. The Phase I Authority Loan will be used to acquire
the Phase I parcel and the Phase II Authority Loan will be used to acquire the Phase II parcel
and for some of the Phase II costs of construction.
Authority Housing Agreements. The Housing Agreements for the Project will restrict all units in
the Project to households that have incomes that do not exceed the following percentages of
the Riverside County area median (AMI) income:
• Phase I: 36 units restricted to 30% of the AMI or less (approximately 30% of the units),
61 units restricted to 59% of the AMI or less (approximately 50% of the units), and 23 units
restricted to 80% of the AMI or less (approximately 20% of the units). One three-bedroom
unit will be set-aside for the onsite manager.
• Phase II: 36 units restricted to 30% of the AMI or less (approximately 30% of the units), 60
units restricted to 59% of the AMI or less (approximately 50% of the units), and 23 units
restricted to 80% of the AMI or less (approximately 20% of the units). One two-bedroom unit
will be set-aside for the onsite manager.
Total development costs for the Project, including land costs, are estimated at $153,839,000
($82,160,000 (Phase I) and $71,679,000 (Phase II)). The Project is intended to be funded by
leveraging multiple funding sources including: Tax-Exempt Bond proceeds, 4% Federal Tax
Credits, State Tax Credits, a $6,700,000 County Loan, an aggregate of one-hundred and twenty
(120) PBVs provided by the County, deferred developer fee, and the Authority Loans.
In order to evaluate the Developer's funding request, the Authority engaged the services of
Keyser Marston Associates, Inc. ("KMA"), a state-wide provider of affordable housing consulting
services, to provide technical assistance related to determining whether or not the Project's
updated pro forma projections, feasibility and the request for the Loans were reasonable.
In evaluating the Developer's request for the Authority Loans to assist with the purchase of the
Property and construction of the Project in two phases, KMA conducted a detailed review of the
Developer's proforma. The Project's assumptions, methodologies, and calculations were
reviewed and evaluated for reasonableness and accuracy. KMA presented its analysis in a
financial gap analysis memorandum, dated March 27, 2024, which is attached to this staff report.
KMA's analysis concluded that the Project still has a $6,755,000 financial gap, or $28,000 per
unit, thus the Developer's request for financial assistance is still warranted. In comparison, the
Authority agreed to provide $22,400 per unit in assistance to the Vitalia project in August 2021
and $41,100 per unit to the Urban Housing Community ("UHC") project in July 2022
.
KMA concludes in their financial gap analysis memorandum:
1. The $638,300 per unit estimate for total development costs are reasonable given the Project
scope of work, federal and state prevailing wage requirements, increasing interest rates and
current inflationary market conditions.
2. The total development costs decreased by 1% since the last KMA analysis in June 2023
due to the Developer removing the TUMF and SCE fees as they will be waived or refunded.
3. While the financial gap remains at $6,755,000, the Authority will be providing the land
purchase price ($3,425,000) from the Housing Fund. Therefore, the City will receive an
Page 254 of 855
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Second Amended and Restated DDLA - Palm Communities
Page 5 of 6
upfront payment for the Site (in two payments as each parcel is conveyed).
4. For RHNA purposes, the City will be able to add 120 extremely-low income units to the City's
housing inventory as well as 119 low income units (59% AMI and 80% AMI) and two above
moderate units.
5. The Project meets the State law requirements for use of monies in the Housing Fund because
at least 30% of the Housing Fund monies are being spent on extremely-low income
households and no more than 20% of the Housing Funds monies are being used to benefit
households earning 60% to 80% AMI.
By making the Authority Loans to the Developer, the City and Authority will benefit from 239 units
restricted to extremely-low and low income households for a term of 55-years.
Therefore, staff requests approval of the actions described herein in order to allow the Developer
to meet the deadline to submit an application to the CDLAC/TCAC. If the City Council and
Authority Board approve such request and the Developer is awarded the proposed funding
sources, staff and legal counsel will finalize the Second Amended and Restated DDLA,
including the exhibits thereto, which were provided in substantial form at this meeting, and any
other documents deemed necessary or proper for the conveyance of the Property and the
financing and construction of the Project.
Legal Review:
This report and resolutions have been reviewed by the Special Legal Counsel.
Strategic Plan:
One of the priorities of the City's Envision Palm Desert Strategic Plan, as part of Land, Use,
Housing and Open Space, 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
lower income households.
FINANCIAL IMPACT:
An appropriation from the Authority's Housing Asset Fund will be necessary in an amount not
to exceed $6,755,000, or $28,800 per unit. Funds are available from the Authority's Housing
Asset Fund unobligated fund balance. The above- identified funding will only be provided upon
the Developer's satisfaction of the Second Amended and Restated DDLA terms and conditions
contained therein, including, but not limited to, providing proof, satisfactory to the Authority, that
the Developer has financing commitments from all other sources of financing necessary to fund
the Project as permit ready.
The financial impact to the City is that the Second Amended and Restated DDLA provides the
City with upfront cash payments for the Site as each parcel is conveyed. As such, the City will
convey the Site to the Developer and receive $3,425,000. Staff recommend designating the
proceeds of the sale of the Property for future affordable housing purposes.
Page 255 of 855
City of Palm Desert and Housing Authority
Second Amended and Restated DDLA - Palm Communities
Page 6 of 6
ATTACHMENTS:
1. City Resolution - Palm Communities Second Amended and Restated DDLA
2. Authority Resolution - Palm Communities Second Amended and Restated DDLA
3. Second Amended and Restated DDLA – Palm Communities
4. Second Amended and Restated DDLA – Exhibits - Palm Communities
5. KMA Memorandum, (Palm Villas - Updated Financial Gap Analysis, dated 3/27/2024)
Page 256 of 855
RESOLUTION NO. ____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT APPROVING A SECOND “AMENDED AND RESTATED
DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT”
REGARDING “PALM VILLAS AT MILLENIUM” AMONG THE CITY, AS
SELLER, THE PALM DESERT HOUSING AUTHORITY, AS LENDER,
AND PALM COMMUNITIES, A CALIFORNIA LIMITED COMPANY, AS
PURCHASER/BORROWER/DEVELOPER, IN CONNECTION WITH
APPROXIMATELY 10.49 ACRES OF PROPERTY OWNED BY THE CITY,
AND TAKING RELATED ACTIONS
RECITALS:
A. The City of Palm Desert (“City”) owns that approximately ten and one-half (10.49)
acre site located in the City of Palm Desert, identified as APN 694-120-028 and a
portion of APN 694-120-029, as more particularly described in Exhibit A to the form of
the Amended and Restated Disposition, Development and Loan Agreement, dated as
of April 11, 2024 (“Second Amended and Restated DDLA”) by and among the City,
the Palm Desert Housing Authority (“Authority”) and Palm Communities (“Developer”)
attached hereto as Exhibit “A” (“Property”).
B. The City, Authority and Developer previously entered into a Disposition,
Development and Loan Agreement, dated November 23, 2022, and the Amended and
Restated Disposition and Development Agreement, dated June 22, 2023 (the “First
Amended and Restated DDLA”), to provide for the conveyance of the Property to the
Developer and the construction by the Developer of 239 affordable housing units,
which shall be made available to and occupied by low and extremely low income
households, and two on-site manager units (“Project”).
C. The City Council previously declared the Property exempt surplus land pursuant
to Government Code Section 54221(f)(1)(A) on the basis that the Project meets the
affordability and design requirements of Government Code Section 37364, and the
California Department of Housing and Community Development confirmed such
exemption in writing.
D. The Developer has applied for and received a density bonus (including reduced
parking and increased density) for the Project pursuant to City Resolution No. 2022-
24.
E. The City Council has determined in City Resolution No. 2022-24 that the Project
does not require additional review under the California Environmental Quality Act.
F. The City Council, Authority Board and Developer desire to enter into the Second
Amended and Restated DDLA to replace the First Amended and Restated DDLA and
provide, subject to the terms and conditions of the Second Amended and Restated
DDLA, for: (i) the City to process a Parcel Map to divide the Property into the Phase
I Parcel (consisting of approximately 6.02 acres) and Phase II Parcel (consisting of
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approximately 4.47 acres) and to convey the Property to the Developer in two phases;
(ii) the Developer to construct 121 units on the Phase I Parcel and 120 units on the
Phase II Parcel; (iii) the Authority to make a purchase money/ acquisition loan to the
Developer in the amount of $1,965,539 to purchase the Phase I Parcel and a purchase
money/ acquisition loan to the Developer in the amount of $4,789,461 to purchase the
Phase II Parcel; (iv) concurrently with the conveyance of the Phase I Parcel to the
Developer, the City and Developer to grant to each other reciprocal easements over
the Phase I and Phase II Parcel for ingress and egress; and (v) concurrently with the
conveyance of the Phase I Parcel to the Developer, the City to grant an easement
over Parcel 9, an adjacent City-owned parcel, to allow ingress and egress to the Phase
I Parcel through the Phase II Parcel, and an access easement over Parcel 9 to allow
the Developer to clear any accumulated sand against the Phase I and Phase II
boundary wall.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are a substantive part of
this Resolution.
SECTION 2. In accordance with Government Code Section 37364, the City
Council previously found that the Property can be used to provide housing affordable to
persons and families of low or moderate income and that this use is in the City’s best
interests. The City Council hereby confirms such finding and finds that the use of moneys
in the Authority’s Low and Moderate Income Housing Fund in accordance with the
Second Amended and Restated DDLA is of benefit to the project areas of the former Palm
Desert Redevelopment Agency.
SECTION 3. In accordance with Government Code Section 54221(f)(1)(A), the
City Council previously declared the Property exempt surplus land on the basis that the
Project meets the affordability and design requirements of Government Code Section
37364. The City Council hereby confirms such finding.
Section 4. [CEQA]
SECTION 5. The Second Amended and Restated DDLA, in the form attached
hereto as Exhibit “A”, is hereby approved. The City Manager of the City is hereby
authorized to execute and deliver the Second Amended and Restated DDLA, for and in
the name of the City, in substantially such form, with changes thereto as the City Manager
may deem appropriate or necessary and consistent with the purposes of this Resolution
(such approval to be conclusively evidenced by the execution and delivery thereof).
SECTION 6. The members of the City Council and the officers and staff of the City
are hereby authorized, jointly and severally, to take any other such actions as they deem
necessary or proper to effectuate the purposes of this Resolution and the Second
Amended and Restated DDLA including the exhibits thereto. Such actions include
negotiating and preparing agreements and documents, and any such actions previously
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taken are hereby ratified and confirmed. The City Manager of the City is authorized to
execute, deliver and record, on behalf of the City, all documents contemplated by the
Second Amended and Restated DDLA.
SECTION 6. The City Clerk shall certify to the adoption of this Resolution and the
same shall take effect and be in force.
PASSED, APPROVED, AND ADOPTED this ____ day of April, 2024.
AYES:
NOES:
ABSENT:
ABSTAIN:
KARINA QUINTANILLA
MAYOR
ATTEST:
ANTHONY J. MEJIA, CITY CLERK
Page 259 of 855
EXHIBIT “A”
Form of Second Amended and Restated DDLA
(Attached.)
Page 260 of 855
RESOLUTION NO. HA-________
A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY
APPROVING A SECOND “AMENDED AND RESTATED DISPOSITION,
DEVELOPMENT AND LOAN AGREEMENT” REGARDING “PALM
VILLAS AT MILLENIUM” AMONG THE AUTHORITY, AS LENDER, THE
CITY OF PALM DESERT, AS SELLER, AND PALM COMMUNITIES, A
CALIFORNIA LIMITED COMPANY, AS
PURCHASER/BORROWER/DEVELOPER, IN CONNECTION WITH
APPROXIMATELY 10.49 ACRES OF PROPERTY OWNED BY THE CITY,
APPROPRIATING FUNDS IN CONNECTION THEREWITH, AND TAKING
RELATED ACTIONS
RECITALS:
A. Pursuant to AB X1 26 (enacted in June 2011) and the California Supreme
Court’s decision in California Redevelopment Association, et al. v. Ana Matosantos, et
al., 53 Cal. 4th 231 (2011), the former Palm Desert Redevelopment Agency (“Former
Agency”) was dissolved as of February 1, 2012.
B. Pursuant to Health and Safety Code Section 34176(b), the City Council of
the City of Palm Desert (“City”) adopted Resolution No. 2012-07, electing for the City to
not retain the responsibility for performing housing functions previously performed by the
Former Agency, and determining that all of the assets, as allowed by law, and all rights,
powers, liabilities, duties, and obligations associated with the housing activities of the
Former Agency be transferred to the Palm Desert Housing Authority (“Authority”).
C. The City owns that approximately ten and one-half (10.49) acre site located
in the City, identified as APN 694-120-028 and a portion of APN 694-120-029, as more
particularly described in Exhibit A to the form of the Amended and Restated Disposition,
Development and Loan Agreement, dated as of April 11, 2024 (“Second Amended and
Restated DDLA”) by and among the City, the Authority and Palm Communities
(“Developer”) attached hereto as Exhibit “A” (“Property”).
D. The City, Authority and Developer previously entered into a Disposition,
Development and Loan Agreement, dated November 23, 2022, and the Amended and
Restated Disposition and Development Agreement, dated June 22, 2023 (the “First
Amended and Restated DDLA”), to provide for the conveyance of the Property to the
Developer and the construction by the Developer of 239 affordable housing units, which
shall be made available to and occupied by low and extremely low income households,
and two on-site manager units (“Project”).
E. The City Council, Authority Board and Developer desire to enter into the
Second Amended and Restated DDLA to replace the First Amended and Restated DDLA
and provide, subject to the terms and conditions of the Second Amended and Restated
DDLA, for: (i) the City to process a Parcel Map to divide the Property into the Phase I
Parcel (consisting of approximately 6.02 acres) and Phase II Parcel (consisting of
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approximately 4.47 acres) and to convey the Property to the Developer in two phases; (ii)
the Developer to construct 121 units on the Phase I Parcel and 120 units on the Phase II
Parcel; (iii) the Authority to make a purchase money/ acquisition loan to the Developer in
the amount of $1,965,539 to purchase the Phase I Parcel and a purchase money/
acquisition loan to the Developer in the amount of $4,789,461 to purchase the Phase II
Parcel; (iv) concurrently with the conveyance of the Phase I Parcel to the Developer, the
City and Developer to grant to each other reciprocal easements over the Phase I and
Phase II Parcel for ingress and egress; and (v) concurrently with the conveyance of the
Phase I Parcel to the Developer, the City to grant an easement over Parcel 9, an adjacent
City-owned parcel, to allow ingress and egress to the Phase I Parcel through the Phase
II Parcel, and an access easement over Parcel 9 to allow the Developer to clear any
accumulated sand against the Phase I and Phase II boundary wall.
NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals are true and correct and are a substantive part of
this Resolution.
Section 2. The Second Amended and Restated DDLA, in the form attached
hereto as Exhibit “A”, is hereby approved. The Executive Director of the Authority is
hereby authorized to execute and deliver the Second Amended and Restated DDLA, for
and in the name of the Authority, in substantially such form, with such changes thereto
as the Executive Director may deem appropriate or necessary and consistent with the
purposes of this Resolution (such approval to be conclusively evidenced by the execution
and delivery thereof).
Section 3. The Developer is hereby authorized to submit an application, including
the Second Amended and Restated DDLA, to the California Tax Credit Allocation
Committee for tax credits as contemplated by the Second Amended and Restated DDLA.
Section 4. The Director of Finance is hereby authorized to appropriate
$6,755,000 from the Unobligated Housing Asset Fund Balance to the appropriate budget
line item(s). The Board hereby finds that the use of the Housing Fund moneys in
accordance with the Second Amended and Restated DDLA is of benefit to the project
areas of the Former Agency.
Section 5. The Second Amended and Restated DDLA does not bind the
Authority to make the Authority loans unless the applicable tax credits and other debt and
equity necessary to complete the Project shall have been awarded/committed, and all
other conditions described in the Second Amended and Restated DDLA to the closing
shall have been satisfied.
Section 6. The members of this Board and the officers and staff of the Authority
are hereby authorized, jointly and severally, to take any other such actions as they deem
necessary or proper to effectuate the purposes of this Resolution and the Second
Amended and Restated DDLA, including the exhibits thereto. Such actions include
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negotiating and preparing agreements and documents, and any such actions previously
taken are hereby ratified and confirmed. The Executive Director of the Authority is
authorized to execute, deliver and record, on behalf of the Authority, all documents
contemplated by the Second Amended and Restated DDLA.
Section 7. The Secretary shall certify to the adoption of this Resolution and the
same shall take effect and be in force.
PASSED, APPROVED and ADOPTED ON THIS __ day of April 2024, by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
KARINA QUINTANILLA, CHAIRMAN
ATTEST:
ANTHONY J. MEJIA, SECRETARY
PALM DESERT HOUSING AUTHORITY
Page 263 of 855
EXHIBIT “A”
FORM OF SECOND AMENDED AND RESTATED DDLA
(Attached.)
Page 264 of 855
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AMENDED AND RESTATED DISPOSITION, DEVELOPMENT AND LOAN
AGREEMENT
AMONG
CITY OF PALM DESERT
PALM DESERT HOUSING AUTHORITY
AND
PALM COMMUNITIES
(PALM VILLAS AT MILLENNIUM)
Page 265 of 855
TABLE OF CONTENTS
PAGE
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Section 1.1 Definitions ................................................................................................................... 3
Section 1.2 Exhibits ........................................................................................................................ 8
ARTICLE 2. PREDISPOSITION CONDITIONS FOR CONVEYANCE OF
EACH PHASE 9
Section 2.1 City Right to Terminate for Failure to Timely Obtain Tax
Credits .......................................................................................................................... 9
Section 2.2 City Approvals ........................................................................................................... 9
Section 2.3 Parcel Map .................................................................................................................. 9
Section 2.4 Financing ..................................................................................................................... 9
Section 2.5 Permits.......................................................................................................................... 9
Section 2.6 Tax Credits .................................................................................................................. 9
Section 2.7 Loan Closings ............................................................................................................ 9
Section 2.8 Construction Plans .................................................................................................. 10
Section 2.9 Construction Contract ............................................................................................ 10
Section 2.10 Cost Estimate............................................................................................................ 10
Section 2.11 Construction Bonds ................................................................................................ 10
Section 2.12 Developer Organizational Documents .............................................................. 11
Section 2.13 Authority Loan ......................................................................................................... 11
Section 2.14 Tax Credit Equity .................................................................................................... 11
Section 2.15 City Easements ........................................................................................................ 11
Section 2.16 Phase II Conveyance .............................................................................................. 11
Section 2.17 HCD Confirmation of Exemption ...................................................................... 11
Section 2.18 AHAP ......................................................................................................................... 11
Section 2.19 Title Report ............................................................................................................... 11
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ARTICLE 3. DISPOSITION OF PROPERTY ...................................................................................... 11
Section 3.1 Conveyance of Phase I Parcel and Phase II Parcel ....................................... 11
Section 3.2 Purchase Prices ........................................................................................................ 11
Section 3.3 Deposit ....................................................................................................................... 11
Section 3.4 Opening Escrow ...................................................................................................... 12
Section 3.5 Close of Escrow ....................................................................................................... 13
Section 3.6 Costs of Escrow and Closing ............................................................................... 14
Section 3.7 Condition of Title .................................................................................................... 14
Section 3.8 Condition of Property ............................................................................................ 14
ARTICLE 4. CONSTRUCTION OF DEVELOPMENT .................................................................... 17
Section 4.1 Construction and Operation Consistent with Agreements .......................... 17
Section 4.2 Commencement of Development ....................................................................... 17
Section 4.3 Completion of the Development ......................................................................... 17
Section 4.4 Equal Opportunity................................................................................................... 17
Section 4.5 Construction Under Laws ..................................................................................... 17
Section 4.6 Progress Reports ...................................................................................................... 18
Section 4.7 Construction Responsibilities .............................................................................. 18
Section 4.8 Mechanics Liens, Stop Notices, and Notices of Completion ..................... 18
Section 4.9 Inspections ................................................................................................................ 19
Section 4.10 Records ...................................................................................................................... 19
Section 4.11 Certificate of Completion ..................................................................................... 19
ARTICLE 5. AUTHORITY LOAN PROVISIONS ............................................................................. 19
Section 5.1 Authority Loans ....................................................................................................... 19
Section 5.2 Use of Authority Loan ........................................................................................... 20
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Section 5.3 Delivery of Promissory Notes ............................................................................. 20
Section 5.4 Term of the Authority Loan ................................................................................. 20
Section 5.5 Interest ........................................................................................................................ 20
Section 5.6 Disbursement of Authority Loans ...................................................................... 20
Section 5.7 Repayment Schedule .............................................................................................. 21
Section 5.8 Reports and Accounting of Residual Receipts ............................................... 21
Section 5.9 Non-Recourse ........................................................................................................... 22
ARTICLE 6. ONGOING DEVELOPER OBLIGATIONS ................................................................ 22
Section 6.1 Applicability ............................................................................................................. 22
Section 6.2 Use of Development ............................................................................................... 22
Section 6.3 Maintenance.............................................................................................................. 23
Section 6.4 Taxes and Assessments ......................................................................................... 23
Section 6.5 Mandatory Language in All Subsequent Deeds, Leases and
Contracts .................................................................................................................... 23
Section 6.6 Management Agent ................................................................................................ 25
Section 6.7 Insurance Requirements ........................................................................................ 26
Section 6.8 Audits ......................................................................................................................... 29
ARTICLE 7. ASSIGNMENTS AND TRANSFERS ........................................................................... 29
Section 7.1 Definitions ................................................................................................................. 29
Section 7.2 Purpose of Restrictions on Transfer .................................................................. 29
Section 7.3 Prohibited Transfers ............................................................................................... 30
Section 7.4 Permitted Transfers ................................................................................................ 30
Section 7.5 Other Transfers with City Consent .................................................................... 31
Section 7.6 Termination of Limitations on Transfers ......................................................... 31
ARTICLE 8. DEFAULT AND REMEDIES .......................................................................................... 31
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Section 8.1 General Applicability ............................................................................................. 31
Section 8.2 Fault of City .............................................................................................................. 31
Section 8.3 Fault of Authority ................................................................................................... 31
Section 8.4 Fault of Developer .................................................................................................. 31
Section 8.5 Notice and Cure Period Regarding City/Authority Defaults ...................... 33
Section 8.6 Remedies ................................................................................................................... 33
Section 8.7 Rights of Mortgagees ............................................................................................. 34
Section 8.8 Remedies Cumulative ............................................................................................ 34
ARTICLE 9. SECURITY FINANCING AND RIGHTS OF HOLDERS ..................................... 34
Section 9.1 No Encumbrances Except for Development Purposes ................................. 34
Section 9.2 Holder Not Obligated to Construct .................................................................... 34
Section 9.3 Notice of Default and Right to Cure .................................................................. 34
Section 9.4 Failure of Holder to Complete Development .................................................. 35
Section 9.5 Right of Cure ............................................................................................................ 35
Section 9.6 Right of City to Satisfy Other Liens .................................................................. 35
Section 9.7 Holder to be Notified ............................................................................................. 36
Section 9.8 Estoppel Certificates .............................................................................................. 36
ARTICLE 10 GENERAL PROVISIONS ................................................................................................. 36
Section 10.1 Notices, Demands and Communications ......................................................... 36
Section 10.2 Non-Liability of Officials, Employees and Agents ....................................... 36
Section 10.3 Forced Delay ............................................................................................................ 37
Section 10.4 Inspection of Books and Records ....................................................................... 37
Section 10.5 Title of Parts and Sections .................................................................................... 37
Section 10.6 No Third-Party Beneficiaries ............................................................................... 37
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Section 10.7 Applicable Law ........................................................................................................ 37
Section 10.8 No Brokers ................................................................................................................ 37
Section 10.9 Legal Actions ........................................................................................................... 37
Section 10.10 Severability ............................................................................................................... 38
Section 10.11 Binding Upon Successors ..................................................................................... 38
Section 10.12 Parties Not Co-Venturers ...................................................................................... 38
Section 10.13 Discretion Retained by City ................................................................................. 38
Section 10.14 Time of the Essence ............................................................................................... 38
Section 10.15 Representation and Warranties of Developer ................................................. 38
Section 10.16 Entire Understanding of the Parties ................................................................... 39
Section 10.17 Amendments ............................................................................................................. 39
Section 10.18 Approvals .................................................................................................................. 39
Section 10.19 Counterparts ............................................................................................................. 39
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AMENDED AND RESTATED DISPOSITION, DEVELOPMENT, AND LOAN
AGREEMENT
(Palm Villas at Millennium)
This AMENDED AND RESTATED DISPOSITION, DEVELOPMENT AND LOAN
AGREEMENT (the “Agreement”) is dated as of April 11, 2024, and is entered into by and among
the CITY OF PALM DESERT, a municipal corporation (the “City”), the PALM DESERT
HOUSING AUTHORITY, a public body corporate and politic (the “Authority”) and PALM
COMMUNITIES, a California corporation (the “Developer”), each individually a “Party” and
collectively the “Parties,” with reference to the following facts, understandings and intentions of
the Parties:
RECITALS
A. Defined terms used but not defined in these recitals are as defined in Article 1 of
this Agreement.
B. The City owns that approximately ten and one-half (10.49) acre site located in the
City of Palm Desert as more particularly described in Exhibit A (the “Property”). The City intends
to process a Parcel Map to divide the Property into the Phase I Parcel (consisting of approximately
6.02 acres) and Parcel II Parcel (consisting of approximately 4.47 acres); the Phase I Parcel and
Phase II Parcel are described on Exhibits A-1 and A-2.
C. The Property has been declared exempt surplus land by the City Council of the City
under Government Code Section 54221(f)(1)(A) and has concluded based on the Developer’s site
plan and proposed affordability that proposed Development meets the affordability and design
requirements of Government Code Section 37364. The California Department of Housing and
Community Development has confirmed such exemption in writing.
D. The City, the Authority and the Developer previously entered into that certain
Disposition, Development and Loan Agreement dated November 23, 2022, as amended by that
certain Amended and Restated Disposition, Development and Loan Agreement dated June 22,
2023 (the “Existing DDLA”); this Agreement replaces the Existing DDLA.
E. The Developer intends to construct in two phases at least two hundred forty-one
(241) units of housing, two hundred thirty-nine (239) of which shall be made available to and
occupied by low-income households, very low-income households, and extremely low-income
households, and two (2) of which shall be on-site manager’s units.
F. The Developer intends to construct one hundred twenty-one (121) units on the
Phase I Parcel, with one hundred twenty (120) of the units restricted to Extremely-Low
Households, Very-Low Income Households and Low Income Households, at affordable rents, and
the other unit used as an on-site manager’s unit. The Phase I Development will be composed of
one, two and three bedroom units.
G. The Developer intends to construct one hundred twenty (120) units on the Phase II
Parcel, with one hundred nineteen (119) of the units restricted to Extremely-Low Households,
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Very-Low Income Households and Low Income Households, at affordable rents, and the other
unit used as an on-site manager’s unit. The Phase II Development will also be composed of one,
two and three bedroom units.
H. To effectuate this purpose, the City will convey the Property to the Developer in
two phases, subject to the terms and conditions of this Agreement.
I. To assist the Developer in acquiring the Phase I Parcel from the City, the Authority
intends to make a purchase money/acquisition loan to the Developer in the amount of
$1,965,539.00, subject to the terms and conditions of this Agreement. To assist the Developer in
acquiring the Phase II Parcel from the City and developing/construction the Phase II Development,
the Authority intends to make a purchase money and construction loan to the Developer in the
amount of $4,789,461, subject to the terms and conditions of this Agreement.
J. The Authority shall disburse the construction loan portion of the Phase II loan by
Authority itself, but upon request of Developer, will consider entering into an agreement with the
Developer’s construction lender for the Phase II Development providing that the construction
lender will disburse the remaining proceeds of the Authority’s loan following the Close of Escrow
to the construction lender for the payment of construction costs of the Phase II Development. The
agreement will provide that the Authority Loan funds will be disbursed pari-passu with the
construction lender’s loan. The construction lender shall not have a security interest in such
Authority funds.
K. Concurrently with the conveyance of the Phase I Parcel to the Developer, the
Developer and City intend to grant to each other reciprocal easements over the Phase I and Phase
II Parcel for ingress and egress. The Developer also intends to grant the Phase II Parcel owner
reasonable rights to use the Phase I Development’s common area facilities upon the completion of
the Phase II Development (the “Phase I and Phase II Access Easement”). The Parties intend that
the Phase I and Phase II Access Easement will include a provision that the Phase I and Phase II
Access Easement may be amended by the Parties if the City intends to convey the Phase II Parcel
to a party that is not affiliated with the Developer.
L. Concurrently with the conveyance of the Phase I Parcel to the Developer, the City
intends to grant (i) an easement over the Parcel 9, an adjacent City-owned parcel, to allow ingress
and egress to the Phase I Parcel through the Phase II Parcel (the “Parcel 9 Easement”); and (ii) an
access easement over Parcel 9 to allow the Developer and the Phase II Parcel owner to clear any
accumulated sand against the Phase I and the Phase II boundary wall (the “Maintenance
Easement”).
M. The City has determined that the Developer has the necessary expertise, skill and
ability to carry out the commitments set forth in this Agreement and that this Agreement is in the
best interests of, and will materially contribute to the implementation of, the City’s affordable
housing goals through the development of the Property.
N. Developer has applied for and received a density bonus (including reduced parking
and increased density) for both the Phase I Development and the Phase II Development.
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In consideration of the foregoing, and the mutual terms and conditions herein, the Parties
agree as follows:
AGREEMENT
The foregoing recitals are hereby incorporated by reference and made part of this
Agreement.
ARTICLE 1 DEFINITIONS AND
EXHIBITS
Section 1.1 Definitions. In addition to the terms defined elsewhere in this
Agreement, the following definitions apply throughout this Agreement. “Affordable Units” means
the Two Hundred Thirty-Nine (239) Units restricted by the Housing Agreements to be developed
on the Property to be occupied by Extremely-Low, Very-Low and Low-Income Households and
to be available at affordable rent as defined in accordance with Health & Safety Code Section
50053.
“Annual Financial Statement” means for any calendar year: (i) the financial statement
of operating expenses and revenues for a Phase, prepared at the Developer’s expense, by an
independent certified accountant reasonably acceptable to the Authority, and showing the Residual
Receipts for the applicable calendar year; (ii) sufficient back-up data to support the revenues and
expenses claimed on the statement; and (iii) such additional information reasonably requested by
the Authority, all of which shall form the basis for determining Residual Receipts.
“Approved Financing” means the loans, equity, and other financing obtained by the
Developer for the purpose of financing the costs of the Development that are approved by the City
and consistent with the Financing Proposal.
“Approved Plans” means all designs for the Development approved by the City in
conjunction with the City Approvals prior to or concurrent with the Effective Date.
“Authority” is defined in the introductory paragraph of this Agreement.
“Authority Loans” or “Authority Loan”, as applicable, mean loans by the Palm Desert
Housing Authority to the Developer in the amount of: (i) $1,965,539 to pay the purchase price for
the Phase I Parcel and (ii) $4,789,461 to pay the purchase price for the Phase II Parcel and
construction costs for the Phase II Development.
“Building Permit” means the building permit and all other ministerial construction permits
required from the City to construct the Development.
“Certificate of Completion” is defined in Section 4.11.
“Certificate of Occupancy” means a final certificate of occupancy issued by the City for
the Development, or equivalent final inspection.
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“City” is defined in the introductory paragraph of this Agreement.
“City/Authority Documents” means, collectively, this Agreement, the Promissory Notes,
the Deed of Trusts, the Housing Agreements, the Notice of Restrictions for each phase of the
Development and any other documents executed by the City and/or the Authority and Developer.
“City Approvals” means the permits and entitlements issued by the City to allow for the
commencement of construction for the respective Phase.
“City Event of Default” is defined in Section 8.3.
“Close of Escrow” means the date on which a fee interest in each of the Phase I Parcel and
the Phase II Parcel is conveyed to the Developer, as appropriate.
“Construction Plans” means the final construction plans for the construction of the
Development as approved by the City in accordance with Section 2.5.
“Control” means the power to direct the day-to-day management responsibilities for the
activities of Developer, and, with respect to a limited liability company, means the: (1) managing
member or members; or (2) the right to exercise, directly or indirectly, more than fifty percent
(50%) of the voting rights attributable to the limited liability company.
“Declaration of Default” is defined in Section 8.5.
“Deeds of Trust” shall mean the deeds of trust, assignment of rents, and security
agreement placed on the Developer’s interest in the Phase I Parcel and Phase II Parcel, as security
for the Authority Loans by the Developer as trustor with the Authority as beneficiary, as well as
any amendments to, modifications of, and restatements of said deed of trusts, in the forms attached
hereto as Exhibit F.
“Defaulting Party” is defined in Section 8.5.
“Density Bonus Agreement” shall mean the Density Bonus Agreement for each Phase in
the form attached hereto as Exhibits D-1 and D-2
“Deposit” is defined in Section 3.3.
“Developer” has the meaning in the introductory paragraph of this Agreement.
“Developer Event of Default” is defined in Section 8.4.
“Development” means the development of two hundred forty-one (241) apartment units
to be developed on the Property.
“Effective Date” shall mean the later of: (i) the date the Developer has executed this
Agreement; (ii) the date the Authority has executed this Agreement and (iii) the date the City has
executed this Agreement.
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“Escrow” means the escrow opened with the Title Company to accomplish the transfer of
Phase I and Phase II, respectively, from the City to the Developer.
“Extremely Low Income” means a household with an income that does not exceed the
qualifying limits for extremely low-income households, adjusted for actual household size, for
Riverside County, as published and periodically updated by HCD under Section 50106 of the
California Health and Safety Code, or successor provision.
“Financing Proposal” means the Developer’s initial proposal for financing the acquisition
of the Property and the construction of the Development, including an estimate of the sources and
uses of funds, which is attached hereto as Exhibit K.
“Grading Permit” means the permit to commence grading on the Phase I Parcel and the
permit for the Phase II Parcel.
“Hazardous Materials” means any substance, material, or waste which is: (1) defined as
a “hazardous waste”, “hazardous material,” “hazardous substance,” “extremely hazardous waste,”
“restricted hazardous waste,” “pollutant” or any other terms comparable to the foregoing terms
under any provision of California law or federal law; (2) petroleum; (3) asbestos;
(4) polychlorinated biphenyls; (5) radioactive materials; (6) MTBE; or (7) determined by
California, federal or local government authority to be capable of posing a risk of injury to health,
safety or property. Without limiting the foregoing, Hazardous Materials means and includes any
substance or material defined or designated as hazardous or toxic waste, hazardous or toxic
material, a hazardous, toxic or radioactive substance, or other similar term, by any Hazardous
Materials Laws including any federal, state or local environmental statute, regulation or ordinance
presently in effect that may be promulgated in the future, as such statutes, regulations and
ordinances may be amended from time to time.
The term “Hazardous Materials” does not include: (1) construction materials, gardening
materials, household products, office supply products or janitorial supply products customarily
used in the construction or maintenance, of residential developments, or typically used in office or
residential activities; or (2) certain substances which may contain chemicals listed by the State of
California under California Health and Safety Code Sections 25249.8 et seq., which substances
are commonly used by a significant portion of the population living within the region of the
Development, including, but not limited to, alcoholic beverages, aspirin, tobacco products,
nutrasweet and saccharine, so long as such materials and substances are stored, used and disposed
of in compliance with all applicable Hazardous Materials Laws.
“Hazardous Materials Laws” means all federal, state, and local laws, ordinances,
regulations, orders and directives pertaining to Hazardous Materials in, on or under the
Development or any portion thereof.
“Housing Agreements” or “Housing Agreement”, as applicable, means the Housing
Agreements between the Developer and the Authority in the form of Exhibit H that will be
recorded against the Developer’s fee interest in the Phase I Parcel and Phase II Parcel and all
improvements thereon, and will restrict the household income levels for occupancy of the Units
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thereon to Extremely Low, Very-Low and Low Income Households and will restrict the rent to
affordable rent.
“Low Income Household” means a household with an income that does not exceed the
qualifying limits for lower income households, adjusted for actual household size, for Riverside
County, as published and periodically updated by HCD under Section 50079.5 of the California
Health and Safety Code, or successor provision.
“Maintenance Easement” means an easement over Parcel 9 prepared by the Developer
and approved by the City granting the Developer and the Phase II Parcel owner the right of access
to clear sand from the outside of the Phase I Wall and the Phase II Wall abutting the Maintenance
Easement area, substantially in the form of Exhibit B-3.
“Notices of Restrictions” or “Notice of Restrictions”, as applicable, shall mean the
Notices of Affordability Restrictions in the form attached hereto as Exhibit G, which are to be
recorded against the Phase I Parcel and the Phase II Parcel upon the closing of the sales thereof.
“Notice of Default” is defined in Section 8.5.
“Official Records” means the official land records of Riverside County.
“Parcel” means either the Phase I Parcel or the Phase II Parcel, as the context requires.
“Parcel Map” means the Parcel Map prepared by the Developer and approved by the City
subdividing the Property into the two Phases and recorded in the Official Records of the County
of Riverside with any recording costs paid by the Developer.
“Parcel 9” means the City-owned parcel abutting the Phase I Parcel and the Phase II Parcel
described in Exhibit A-3.
“Parcel 9 Easement” means the easement for ingress and egress of over a portion of Parcel
9 prepared by the Developer and approved by the City benefiting Parcel I and granting the right to
the Developer to improve the easement with street improvements, substantially in the form of
Exhibit B-2.
“Parties” means collectively the City, the Authority and the Developer and the term Party
refers to each of them individually.
“Phase” shall mean the Phase I Development or the Phase II Development, as the context
requires.
“Phase I Development” means the development of at least one hundred twenty-one (121)
units of housing, required offsite infrastructure improvements and parking constructed on the
Phase I Parcel, all as more fully set forth in the Scope of Development.
“Phase II Development” means the development of at least one hundred twenty (120)
units of housing, required offsite infrastructure improvements and parking constructed on the
Phase II Parcel, all as more fully set forth in the Scope of Development.
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“Parcel I and Parcel II Access Easement” means the reciprocal easement prepared by
the Developer and approved by the City for ingress and egress of over Parcel I and Parcel II and
granting the Phase II Parcel owner the right of reasonable access to the Phase I Development
common facilities, substantially in the form of Exhibit B-1.
“Phase I Parcel” means the property generally described in Exhibit A-1.
“Phase II Parcel” means the property generally described in Exhibit A-2.
“Promissory Notes” or “Promissory Note”, as applicable, shall mean the promissory
notes that will evidence the Developer’s obligation to repay the applicable Authority Loan for a
Phase as set forth in this Agreement, and shall be in the form of Exhibit E. Each Phase of the
Development will have its own Promissory Note and shall not be cross-collateralized.
“Property” means the property generally described in the legal description attached as
Exhibit A, consisting of the Phase I Parcel and the Phase II Parcel.
“Residual Receipts” in a particular calendar year for a Phase shall mean the cash (without
regard to the source) derived from the operation of such Phase of the Development minus the
following for that Phase, determined on a cash basis: (i) all real estate and personal property taxes
and assessments, insurance premiums and reasonable costs of maintenance, operation and
management incurred by the Developer in connection with the operation and maintenance,
(ii) property management fees not to exceed four and one-half percent (4.5%) of the gross revenue
of the Phase, (iii) the costs of servicing the senior construction loan/financing (and any approved
refinancing thereof) and other sources of permitted financing; (iv) amounts necessary to maintain
a guaranty or other form of security or bond for an operation reserve account, (v) amounts
deposited into a replacement initially capitalized reserve account in the minimum sum of Three
Hundred Twenty-Five Dollars ($325.00) per unit per annum, (vi) the repayment of any amounts
loaned by the Developer for material development costs which costs were not reasonably
foreseeable, (vii) deferred developer fees (viii) a limited partner monitoring fee in the annual
amount of Five Thousand Dollars ($5,000.00) per year unless fully paid a permanent loan
conversion; (ix) a managing general partner fee in the annual amount of Fifteen Thousand Dollars
($15,000.00), increasing three percent (3%) annually; and (xi) an administrative general partner
fee in the annual amount of Ten Thousand Dollars ($10,000.00), increasing three percent (3%)
annually. In no event shall depreciation/amortization be deducted from cash revenues. Residual
Receipts shall be determined by Developer and Authority on a cash basis without regard to any
carry-over profit or loss from any prior calendar year, and shall be determined annually, on or
before June 1st for the preceding calendar year. Any deferred developer fee, limited partner
monitoring fee, managing general partner fee, and administrative general partner fee may not
accrue interest.
“Schedule of Performance” means the schedule attached as Exhibit C setting forth the
schedule for the Developer’s acquisition and development of the Phase I Parcel and the acquisition
and development of the Phase II Parcel and the construction of the Phase I Development and the
Phase II Development and other deadlines.
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“Scope of Development” shall mean the description of the Development, including a basic
site plan, which will serve as a basis for the Developer’s application for the City Approvals. The
Scope of Development is attached to this Agreement as Exhibit I.
“Security Financing Interest” means a mortgage, deed of trust, or other reasonable
method of security encumbering the Developer’s fee interest in the Phase I Parcel and the Phase
II Parcel that: (i) meets the requirements of this Agreement; and (ii) secures any construction or
permanent loan shown on the Financing Proposal, or any refinancing approved by the Authority.
“TCAC” means the California Tax Credit Allocation Committee.
“TCAC Regulatory Agreement” means the regulatory agreement entered into between
the Developer and TCAC regulating the affordability of each Phase to be recorded as an
encumbrance on the Property.
“Title Company” means First American Title Company, or such other title company as
the Parties may mutually select.
“Title Report” is defined in Section 2.19.
“Transfer” has the meaning set forth in Section 7.1.
“Unit” means one of the residential units to be constructed on the Property.
“Very Low Income Household” means a household with an income that does not exceed
the qualifying limits for very low income households, adjusted for actual household size, for
Riverside County, as published and periodically updated by HCD under Section 50105 of the
California Health and Safety Code, or successor provision.
Exhibits. The following exhibits are attached to and incorporated in this Agreement:
Exhibit A: Legal Description of the Property
Exhibit A-1: Legal Description of Phase I Parcel
Exhibit A-2: Legal Description of Phase II Parcel
Exhibit A-3: Depiction of Parcel 9
Exhibit B-1: Phase I and Phase II Access Easement
Exhibit B-2: Parcel 9 Easement
Exhibit B-3: Maintenance Easement
Exhibit C: Form of Grant Deed
Exhibit D-1: Form of Phase I Density Bonus Agreement
Exhibit D-2: Form of Phase II Density Bonus Agreement
Exhibit E: Form of Promissory Note
Exhibit F: Form of Deed of Trust
Exhibit G-1: Form of Phase I Notice of Affordability Restrictions
Exhibit G-2: Form of Phase II Notice of Affordability Restrictions
Exhibit H-1: Form of Phase I Housing Agreement
Exhibit H-2: Form of Phase II Housing Agreement
Exhibit I: Scope of Development (Phase I and Phase II)
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Exhibit J: Schedule(s) of Performance (Phase I and Phase II)
Exhibit K-1: Financing Plan – Phase I
Exhibit K-2: Financing Plan – Phase II
ARTICLE 2
CONDITIONS FOR
CONVEYANCE OF EACH PHASE
Section 2.1 City Right to Terminate for Failure to Timely Obtain Tax Credits;
Other City Conditions Precedent to Conveyance. The City Manager may terminate this Agreement
on behalf of the City in his or her sole and absolute discretion if Developer fails to obtain by
December 31, 2024 an award of tax credits that is materially consistent with the Financing
Proposal. The requirements set forth in this Article 2 are conditions precedent to the City’s
obligation to convey a Phase to the Developer. The City has no obligation to convey a Phase to
the Developer unless the conditions precedent set forth in this Article 2 have been satisfied in the
manner set forth below and within the timeframe set forth in the Schedule of Performance. The
closing of the conveyance of the Phase I Parcel must occur on or before March 1, 2025 (or either
party who is not in default may terminate this Agreement by written notice to the other). The
closing of the conveyance of the Phase II Parcel must occur on or before March 1, 2026 (or either
party who is not in default may terminate this Agreement by written notice to the other).
Section 2.2 City Approvals. Prior to or concurrently with the conveyance of a
Phase, the Developer must have obtained the City Approvals for the Phase and the Developer must
have paid the required fees to the City and must have provided letters from the applicable bonding
company(s) agreeing to issue the required improvement bonds upon the Close of Escrow.
Section 2.3 Parcel Map. The Parcel Map subdividing the Property into the
Phase I Parcel and the Phase II Parcel must be approved by the City, in its sole and absolute
discretion, and the Developer; the Parcel Map must be been recorded prior to the Close of Escrow
for the conveyance of Phase I; and the Developer must have paid the costs related to recording the
Parcel Map. All applicable subdivision improvement agreements and “CC&Rs” and the like that
are conditions of approval of the Parcel Map must be executed and delivered/recorded prior to or
concurrently with the applicable Close of Escrow.
Section 2.4 Financing. The financing listed in the Financing Proposal shown in
Exhibit C for the appropriate Phase must close concurrently with the Close of Escrow for the
Phase.
Section 2.5 Permits. The City must have issued a “Ready to Issue” letter
regarding the Building Permit, and the Developer must have paid the Building Permit fees prior to
or concurrently with the applicable Close of Escrow, and must have executed and delivered all
agreements and other documents required in connection with the Building Permit (such as a
grading agreement).
Section 2.6 Tax Credits. The tax credits necessary to help finance the applicable
development must have been awarded, and Developer shall have provided evidence thereof to
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City, together with reasonable evidence that tax credit investors shall have legally committed to
provide equity funds sufficient to pay all development costs not being paid with loans/debt.
Section 2.7 Loan Closings. All loans necessary to finance costs in the City-
approved revised Financing Proposal/Plan shall have closed (or shall close concurrently with the
applicable Close of Escrow) such that the lenders are conditionally obligated to disburse their loan
funds (so that the applicable development can be completed), and copies of the applicable loan
documents (or drafts that are final in all material respects) shall have been provided to City.
Section 2.8 Construction Plans. The Developer shall prepare construction plans
for the construction of the development of each Phase. The final construction plans for the
development of each submitted by the Developer for City approval shall consist of all construction
documentation upon which the Developer and its contractors shall rely in building the Phase I
Development and the Phase II Development. Such construction plans shall include (without
limitation) final architectural drawings, landscaping plans and specifications, final elevations,
building plans and specifications (also known as “working drawings”). The construction plans
shall be based upon the Approved Plans and shall not materially deviate from them without the
written consent of the City. As set forth in Section 10.14, the Developer acknowledges that
execution of this Agreement by the City does not constitute approval by the City of any required
permits and in no way limits the discretion of the City in the permit approval process.
As part of the Developer’s application for a Building Permit, the City shall also have the
right to review and approve the proposed construction plans for conformance with the Approved
Plans and the other commitments made by the Developer to the City. The Developer
acknowledges that the City’s right to review and approve the proposed construction plans as
allowed by this paragraph is in addition to, and shall not be limited by, the City’s obligation to
review the Developer’s proposed construction plans for consistency with applicable building and
construction code requirements.
As approved, these construction plans for the applicable component of the Development
shall be referred to as the “Construction Plans”.
Section 2.9 Construction Contract. Developer shall have delivered to City a
copy of an executed Guaranteed Maximum Price or Stipulated Sum construction contract for the
applicable Phase, which shows a development cost consistent with the revised Financing
Proposal/Plan and equity and debt funds committed to the applicable development.
Section 2.10 Cost Estimate. The Developer’s construction lender must have
shared its construction cost estimate with the City or, in the alternative, if the construction lender
is unwilling to share its cost estimate, the City has obtained an independent cost estimate at the
Developer’s cost to confirm the reasonableness of the construction costs.
Section 2.11 Construction Bonds. At least seven (7) days prior to Close of
Escrow, the Developer shall deliver to the City forms of one (1) labor and material bond and one
(1) performance bond for the Development issued by a reputable insurance company licensed to
do business in California, and named in the current list of “Surety Companies Acceptable on
Federal Bonds” as published in the Federal Register by the Audit Staff Bureau of Accounts, U.S.
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Treasury Department, and reasonably acceptable to the City, each in a penal sum of not less than
one hundred percent (100%) of the scheduled cost of construction of the Phase for the City’s
review and approval. The bonds shall name the City as co-obligee. Upon receipt by the City of
the proposed payment and performance bonds, the City shall promptly review such bonds and
approve them if they satisfy the criteria set forth above and include any other modification
reasonably requested by the City. If the payment and performance bonds are not approved by the
City, the City shall set forth in writing and notify the Developer of the City’s reasons for
withholding such approval. The Developer shall thereafter submit revised payment and
performance bonds for City approval, which approval shall be granted or denied in five (5)
business days in accordance with the criteria and procedures set forth above.
Section 2.12 Developer Organizational Documents. The Developer has provided
the Developer organizational documents to the City for its review and the City has approved the
documents.
Section 2.13 Authority Loans. The Authority must be ready to make the
applicable Authority Loan in the amount necessary to acquire the Phase I Parcel or Phase II Parcel,
as appropriate, and the Developer shall have delivered the applicable City/Authority Documents,
duly executed, to the Authority.
Section 2.14 Tax Credit Equity. The City has approved the Developer’s proposed
uses of any tax credit equity paid as of the Close of Escrow to the Developer.
Section 2.15 City Easements. The Developer and City have agreed upon the final
forms of the Phase I and Phase II Access Easement, the Parcel 9 Easement and the Maintenance
Easement.
Section 2.16 Phase II Conveyance. As a condition to the Close of Escrow for the
Phase II Parcel only, the Close of Escrow for the Phase I Parcel shall have occurred, and Developer
shall not be in default under this DDLA or under the Authority loan relating to the Phase I Parcel.
Section 2.17 AHAP. The Developer and the Housing Authority of the County of
Riverside have entered into an Agreement to Enter into a Housing Assistance Payments Contract.
Section 2.18 Title Report Approved. The Developer has approved the following
preliminary report and the title exceptions therein (the “Title Report”) from the Title Company:
Amended Preliminary Report issued on August 22, 2022 under Order Number 997-30064151-A-
TC1. City shall not further encumber the Property after the date hereof without the prior written
consent of Developer.
ARTICLE 3
DISPOSITION OF PROPERTY
Section 3.1 Conveyances of Phase I Parcel and Phase II Parcel. Subject to the
satisfaction of the conditions to closing set forth above (which apply to each Phase, except as noted
in Section 2.15), the City will sell to the Developer, and the Developer will purchase from the City,
the Property under the terms, covenants, and conditions of this Agreement.
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Section 3.2 Purchase Prices. The Purchase Price for the Phase I Parcel shall be
One Million Nine Hundred Sixty-Five Thousand Five Hundred Thirty-Nine Dollars
($1,965,539.00). The Purchase Price for the Phase II Parcel shall be One Million Four Hundred
Fifty-Nine Thousand Four Hundred Sixty-One Dollars ($1,459,461.00).
Section 3.3 Deposits. Within thirty (30) days following the Effective Date,
Developer shall deposit $58,966.00 into Escrow as a good faith deposit for the acquisition of the
Phase I Parcel (the “Phase I Deposit”). Upon the Close of Escrow for Phase I, the Phase I Deposit
shall not be applied to the purchase price for the Phase II Parcel, but shall be returned to Developer,
as the Purchase Price is being paid by the loan from the Authority. If this Agreement is terminated
prior to the Close of Escrow for the Phase I Parcel for any reason other than a default by the
Developer, the Phase I Deposit shall be immediately refunded to the Developer upon the date the
Agreement is terminated.
Within thirty days after the Close of Escrow for Phase I Parcel, the Developer shall deposit
$43,784 into a Phase II Escrow as a good faith deposit for the acquisition of the Phase II Parcel
(the “Phase II Deposit”). Upon the Close of Escrow for Phase II, the Phase I Deposit shall not be
applied to the purchase price for the Phase II Parcel, but shall be returned to Developer, as the
Purchase Price is being paid by the loan from the Authority. If this Agreement is terminated as to
Phase II, and the termination is not due to a default by the Developer, the Phase II Deposit shall
be immediately refunded to the Developer upon the date the Agreement is terminated. The Phase
I Deposit and the Phase II Deposit shall each constitute liquidated damages to the City upon a
termination of this Agreement as to the applicable Phase/parcel due to a default by Developer.
BUYER ACKNOWLEDGES THAT BY ENTERING INTO THIS AGREEMENT,
SELLER MAY REMOVE THE PROPERTY FROM THE ACTIVE REAL ESTATE MARKET
AND THUS SUSTAIN MISSED OPPORTUNITIES AND EXTENDED CARRYING COSTS,
AS WELL AS OTHER DAMAGES. IN THE EVENT THAT THE ESCROW AND THIS
TRANSACTION FAIL TO CLOSE AS A RESULT OF THE DEFAULT OF BUYER IN THE
PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT, BUYER AND
SELLER AGREE THAT SELLER WILL SUSTAIN THESE AND OTHER DAMAGES, AND
THAT SELLER’S ACTUAL DAMAGES WOULD BE IMPRACTICABLE OR EXTREMELY
DIFFICULT TO DETERMINE. THE PARTIES THEREFORE AGREE THAT IN THE EVENT
THAT ESCROW AND THIS TRANSACTION FAIL TO CLOSE AS A RESULT OF A
MATERIAL DEFAULT OF BUYER, AND SELLER IS READY, WILLING AND ABLE TO
PERFORM ITS OBLIGATIONS HEREUNDER, SELLER, AS SELLER’S SOLE AND
EXCLUSIVE REMEDY, IS ENTITLED TO LIQUIDATED DAMAGES IN THE AMOUNT OF
THE INITIAL DEPOSIT THERETOFORE MADE. IN THE EVENT ESCROW FAILS TO
CLOSE SOLELY AS A RESULT OF BUYER’S DEFAULT AND SELLER IS READY,
WILLING AND ABLE TO PERFORM ITS OBLIGATIONS HEREUNDER, THEN (A) THIS
AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF BUYER AND SELLER
HEREUNDER AND THE ESCROW CREATED HEREBY SHALL TERMINATE, AND (B)
ESCROW AGENT SHALL, AND IS HEREBY AUTHORIZED AND INSTRUCTED TO,
RETURN PROMPTLY TO BUYER AND SELLER ALL DOCUMENTS AND INSTRUMENTS
TO THE PARTIES WHO DEPOSITED THE SAME. THE PAYMENT OF SUCH AMOUNT
AS LIQUIDATED DAMAGES IS NOT INTENDED AS A FORFEITURE OR PENALTY
WITHIN THE MEANING OF CALIFORNIA CIVIL CODE SECTIONS 3275 OR 3369 BUT IS
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INTENDED TO CONSTITUTE LIQUIDATED DAMAGES TO SELLER PURSUANT TO
CALIFORNIA CIVIL CODE SECTIONS 1671, 1676 AND 1677. SELLER HEREBY WAIVES
THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 3389. SELLER AND BUYER
ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE PROVISIONS OF
THIS SECTION 3.3(b), AND BY THEIR INITIALS IMMEDIATELY BELOW, AGREE TO BE
BOUND BY ITS TERMS.
SELLERS’ INITIALS:
__________________________
BUYER’S INITIALS
_________________
Section 3.4 Opening Escrow. To accomplish the transfer of the Phase I Parcel
and the Phase II Parcel from the City to the Developer, the Parties will promptly establish an
escrow for each transfer with the Title Company after the Effective Date. The Parties will execute
and deliver reasonable written instructions to the Title Company to accomplish the terms hereof,
which instructions must be consistent with this Agreement.
Section 3.5 Close of Escrow. The Close of Escrow shall occur within thirty (30)
days after the Developer has met all of the closing conditions as set forth in Article 2 above for a
particular Parcel, but in no event shall the Close of Escrow occur later than March 1, 2025 for the
Phase I Parcel, and in no event shall the Close of Escrow occur later than March 1, 2026 for the
Phase II Parcel. At the applicable Close of Escrow, the City shall convey a fee interest in the
applicable Parcel to the Developer by the delivery of a Grant Deed to Escrow in the form set forth
in the attached Exhibit C for recording at the Close of Escrow.
At the Close of Escrow for Phase I, the Developer shall execute and deliver to Escrow for
recording at the Close of Escrow, the Phase I and Phase II Access Easement, the Parcel 9 Easement
and the Maintenance Easement.
Developer’s obligation to proceed with the acquisition of the Property from the City
pursuant to the terms of this Agreement is subject to the fulfillment or waiver by Developer of
each and all of the conditions precedent described below (“Developer Conditions Precedent”). The
Developer Conditions Precedent are solely for the benefit of the Developer and shall be fulfilled
or waived within the time periods provided for herein, and in any event, no later than the date
specified in the Schedule of Performance.
There exists no condition, event or act which would constitute a breach or default under
this Agreement, the City Documents, the Development Approvals, or under any other project
financing agreements or contracts related to the Development, or which, upon the giving of notice
or the passage of time, or both, would constitute such a breach or default by the City.
Subject to payment of the applicable fees, City shall be ready to issue the building permit(s)
necessary for the Developer to Commence Construction of the Development.
The Title Company shall, upon payment of Title Company’s regularly scheduled premium,
be irrevocably committed to issue an owner’s title policy upon recordation of the applicable Grant
Deed insuring Developer’s interest in the Property, subject only to the exceptions in Section 3.7
below.
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The Parcel Map has been approved by the City and the Developer and has been recorded
or is ready to be recorded currently with the Close of Escrow in the Official Records of Riverside
County.
There shall be an absence of any condemnation, environmental or other pending
governmental or any type of administrative or legal proceedings with respect to the Property which
would materially and adversely affect Developer’s intended uses of the Property or the value of
the Property.
The City has executed and delivered to Escrow (x) the Phase I and Phase II Access
Easement, (y) the Parcel 9 Easement and (z) the Maintenance Easement.
The City has executed and delivered to Escrow applicable Housing Agreement and Notice
of Affordability Restrictions, duly executed and acknowledged.
There shall not have occurred between the Effective Date and the Closing a material
adverse change to the physical condition of the Property.
There is no existing, pending or threatened litigation, suit, action or proceeding before any
court or administrative agency affecting the City or the Developer or the Property that would, if
adversely determined, materially adversely affect the Development or the Developer’s or the
City’s ability to perform their obligations under this Agreement or the Developers’ ability to
develop and operate the Development.
Section 3.6 Costs of Escrow and Closing. The Developer must pay all of the
City’s and Authority’s legal fees and costs, the cost of title insurance, transfer tax, Title Company
document preparation, recordation fees, and the escrow fees of the Title Company, if any, and any
additional costs to close the applicable escrow. The costs borne by the Developer are in addition
to the Purchase Prices of the Parcels.
Section 3.7 Condition of Title. Upon the Close of Escrow for each Phase, the
Developer will take title subject to all title exceptions in the Title Report and all other liens,
encumbrances, clouds and conditions, rights of occupancy or possession, except, applicable
building and zoning laws and regulations;
(a) The conditions and easements on the Parcel Map;
(b) the Phase I and Phase II Access Easement;
(c) the applicable Housing Agreement;
(d) the applicable Density Bonus Agreement;
(e) the applicable Deed of Trust and Notice of Restrictions;
(f) any lien for current taxes and assessments or taxes and assessments
accruing subsequent to Close of Escrow;
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(g) the liens of any Approved Financing (approved by the City);
(h) any other matters created by or with the consent of Developer.
Section 3.8 Condition of Property; City Information. In fulfillment of the
purposes of Health and Safety Code Section 25359.7(a), to the City’s Current Actual Knowledge,
no release of Hazardous Materials has come to be located on or beneath the Property except as
previously disclosed by the City to the Developer. The Developer has completed all due diligence
activities, including but not limited to a physical adequacy determination of the Property, and may
not terminate this Agreement as a result of the purported physical unsuitability of the Property. As
used in this Agreement, the phrase “to the City’s Current Actual Knowledge” and words of similar
import shall mean the actual knowledge of the City Manager (the “City Representative”), on behalf
of the City, as of the Effective Date, without any duty of separate inquiry and investigation. The
City represents and warrants that the City Representative is that person affiliated with the City
most knowledgeable regarding the ownership and operation of the Property. Developer hereby
agrees that the foregoing person shall not have or incur any personal liability for the breach of any
representation or warranty in this Agreement, and that Developer’s sole remedy for any such
breach shall be against the City.
Section 3.9 “As is” Conveyance. Prior to the effective date, the Developer was
provided the opportunity to investigate the Property and has approved the physical condition of
the Property. The Developer specifically acknowledges and agrees that the City is selling each
Phase of the Property to the Developer and the Developer is buying each Phase of the Property
from the City (and all thereon) on an “as is with all faults” basis and that the Developer is not
relying on any representations or warranties of any kind whatsoever, express (except as expressly
set forth in this agreement) or implied, from the City as to any matters concerning the Property,
including without limitation: (1) the quality, nature, adequacy and physical condition of the
Property (including, without limitation, topography, climate, air, water rights, water, gas,
electricity, utility services, grading, drainage, sewers, access to public roads and related
conditions); (2) the quality, nature, adequacy, and physical condition of soils, geology, and
groundwater; (3) the existence, quality, nature, adequacy and physical condition of utilities serving
the Property; (4) the development potential of the Property, and the Property’s use, habitability,
merchantability, or fitness, suitability, value or adequacy of the Property for any particular
purpose; (5) public or private restrictions on the use of the Property; (6) the compliance of the
Property or its operation with any applicable codes, laws, regulations, statutes, ordinances,
covenants, conditions and restrictions of any governmental or quasi-governmental entity or of any
other person or entity; (7) the presence or absence of hazardous materials on, under or about the
Property or the adjoining or neighboring property; and (8) the condition of title to the Property.
The Developer affirms that the Developer has not relied on the skill or judgment of the City or any
of its agents, employees or contractors to select or furnish the Property for any particular purpose,
and that the City makes no warranty that the Property is fit for any particular purpose. The
Developer acknowledges that it shall use its independent judgment and make its own determination
as to the scope and breadth of its due diligence investigation which it shall make relative to the
Property and shall rely upon its own investigation of the physical, environmental, economic, and
legal condition of the Property (including, without limitation, whether the Property is located in
any area which is designated as a special flood hazard area, dam failure inundation area, earthquake
fault zone, seismic hazard zone, high fire severity area or wildland fire area, by any federal, state
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or local agency). The Developer undertakes and assumes all risks associated with all matters
pertaining to the Property’s location in any area designated as a special flood hazard area, dam
failure inundation area, earthquake fault zone, seismic hazard zone, high fire severity area or
wildland fire area by any federal, state or local agency.
Section 3.10 Survival. The terms and conditions of this Section expressly survive
the Close of Escrow. The City is not liable or bound in any manner by any oral or written
statements, representations, or information pertaining to the Property furnished by any contractor,
agent, employee, servant, or other person. The Developer acknowledges that the lease price will
reflect the “as is” nature of this sale and any faults, liabilities, defects, or other adverse matters that
may be associated with the Property. The Developer has fully reviewed the disclaimers and
waivers set forth in this Agreement with the Developer’s counsel and understands the significance
and effect thereof.
Section 3.11 Acknowledgment. The Developer acknowledges and agrees that:
(1) to the extent required to be operative, the disclaimers of warranties contained in this Section
are “conspicuous” disclaimers for purposes of all applicable laws and other legal requirements;
and (2) the disclaimers and other agreements set forth in such sections are an integral part of this
Agreement, that the lease price will be adjusted to reflect the same and that the City would not
have agreed to lease the Property to the Developer without the disclaimers and other agreements
set forth in this Section.
Section 3.12 Developer’s Release. The Developer, on behalf of itself and anyone
claiming by, through or under the Developer hereby waives its right to recover from and fully and
irrevocably releases the City and the Authority, and City Council members, Authority board
members and the officers, directors, representatives, consultants, employees and agents of City
and/or Authority (the “Released Parties”) from any and all claims, responsibility, and/or liability
that the Developer may have or hereafter acquire against any of the Released Parties for any costs,
loss, liability, damage, expenses, demand, action or cause of action arising from or related to:
(1) the condition (including any construction defects, errors, omissions or other conditions, latent
or otherwise), valuation, salability or utility of the Property, or its suitability for any purpose
whatsoever; (2) any presence of Hazardous Materials; and (3) any information furnished by the
Released Parties under or in connection with this Agreement.
Section 3.13 Scope of Release. The release set forth in Section 3.7(e) above
includes claims of which the Developer is presently unaware or which the Developer does not
presently suspect to exist which, if known by the Developer, would materially affect the
Developer’s release of the Released Parties. The Developer specifically waives the provision of
any statute or principle of law that provides otherwise. In this connection and to the extent
permitted by law, the Developer agrees, represents and warrants that the Developer realizes and
acknowledges that factual matters now unknown to the Developer may have given or may hereafter
give rise to causes of action, claims, demands, debts, controversies, damages, costs, losses and
expenses which are presently unknown, unanticipated and unsuspected, and the Developer further
agrees, represents and warrants that the waivers and releases herein have been negotiated and
agreed upon in light of that realization and that the Developer nevertheless hereby intends to
release, discharge and acquit the Released Parties from any such unknown causes of action, claims,
demands, debts, controversies, damages, costs, losses and expenses. Accordingly, the Developer,
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on behalf of itself and anyone claiming by, through or under the Developer, hereby assumes the
above-mentioned risks and hereby expressly waives any right the Developer and anyone claiming
by, through or under the Developer, may have under Section 1542 of the California Civil Code,
which reads as follows:
“A general release does not extend to claims which the creditor
or released party does not know or suspect to exist in his or her
favor at the time of executing the release, which if known by him
or her must have materially affected his or her settlement with
the debtor or released party.”
Developer’s Initials: __________
Notwithstanding the foregoing, this release does not apply to, nor will the City be released from,
the City’s actual fraud or misrepresentation.
ARTICLE 4
CONSTRUCTION OF DEVELOPMENT
Section 4.1 Construction and Operation Consistent with Agreements. Unless
modified by operation of Section 4.2, the Development must be constructed in accordance with
the Scope of Development, the Construction Plans and the terms and conditions of the Approved
Plans and the City Approvals. The Developer shall comply with all standards and requirements
for construction, use, operation, maintenance, management and encumbrance of the Development
which are set forth in this Agreement and the City Approvals. As between the City and the
Developer, the Developer shall be solely responsible for all costs necessary for the construction
and operation of the Development, including, but not limited to, any construction cost overruns.
Developer shall defend, indemnify and hold City harmless from and against any and all claims,
liabilities, damages, losses, costs and expenses arising directly or indirectly from or relating to any
allegations that City is liable for failure by Developer to pay prevailing wages and/or comply with
California Labor Code Sections 1720 et seq. (The foregoing is not an admission by Developer or
City that prevailing wages are required in connection with any development on either Phase.)
Section 4.2 Commencement of Developments; Interim Deadlines. The
Developer must commence construction of the Phase I Development no later than May 30, 2025.
The Developer must commence construction of the Phase II Development no later than May 30,
2026. For purposes of this Section 4.2, commencement of construction means the material
commencement of grading of the Phase.
Section 4.3 Completion of the Developments. Subject to Section 10.3 below,
the Developer must diligently prosecute to completion the construction of each Phase, and the
Phase I Development must be completed no later than May 30, 2027, and the Phase II Development
must be completed no later than May 30, 2028.
Section 4.4 Equal Opportunity. During the construction of the Development,
the Developer, and its successors, assigns, and subcontractors must not discriminate against any
employee or applicant for employment in connection with the construction of the Development on
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any basis listed in Section 12940 of the Government Code. Each of the following activities must
be conducted in a non-discriminatory manner: hiring; upgrading; demotion and transfers;
recruitment and recruitment advertising; layoff and termination; rate of pay and other forms of
compensation; and selection for training including apprenticeship.
Section 4.5 Construction Under Laws.
(a) Compliance with Project Documents. Developer shall construct the
Development in conformance with the Approved Plans, Approved Financing, and Financing
Proposal and consistent with the City Approvals. Developer shall notify the City in a timely
manner of any changes in the work required to be performed under this Agreement, including any
additions, changes, or deletions to the plans and specifications approved by the City.
(b) Compliance with Laws. Developer shall cause all construction work
to be performed in compliance with, without limitation: (1) all applicable laws, ordinances, rules
and regulations of federal, state, county or municipal governments or agencies now in force or that
may be enacted hereafter, including without limitation state prevailing wages pursuant to Labor
Code Sections 1770 et seq., and the regulations pursuant thereto; (2) all applicable federal and
state accessibility requirements; and (3) all directions, rules and regulations of any fire marshal,
health officer, building inspector, or other officer of every governmental agency now having or
hereafter acquiring jurisdiction. The work shall proceed only after procurement of each permit,
license, or other authorization that may be required by any governmental agency having
jurisdiction, and Developer shall be responsible to the City for the procurement and maintenance
thereof, as may be required of Developer and all entities engaged in work on the construction.
(c) Prevailing Wage Laws. The Project is a work of public improvement
such that Developer shall pay prevailing wages under California Labor Code Sections 1770 et seq.
and shall comply with the other requirements of such statutes. Developer shall defend, indemnify
and hold City and Authority harmless from and against any and all claims, liabilities, losses,
damages, costs and expenses arising from or relating to any failure by Developer to do so.
Section 4.6 Progress Reports. Until such time as the Developer has completed construction of
the Development, as evidenced by the Certificate of Completion, the Developer must provide the
City with quarterly progress reports regarding the status of the construction of the Development.
Section 4.7 Construction Responsibilities. The Developer shall comply with the
Schedule of Performance.
(a) The Developer is solely responsible for all aspects of the
Developer’s conduct in connection with the Development, including but not limited to the quality
and suitability of the Construction Plans, the supervision of construction work, and the
qualifications, financial condition, and performance of all architects, engineers, contractors,
subcontractors, suppliers, consultants, and property managers. Any review or inspection
undertaken by the City with reference to the Development is solely for the purpose of determining
whether the Developer is properly discharging its obligations to the City and should not be relied
upon by the Developer or by any third parties as a warranty or representation by the City as to the
quality of the design or construction of the Development.
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Section 4.8 Mechanics Liens, Stop Notices, and Notices of Completion. If any
claim of lien is filed against the Property or the Development or a stop notice is served on any
lender or other third party in connection with the Development, then the Developer must, within
twenty (20) days after such filing or service, either pay and fully discharge or cause the
Developer’s contractor to pay and fully discharge, the lien or stop notice, effect the release of such
lien or stop notice by delivering to the City a surety bond from a surety reasonably acceptable to
the City in sufficient form and amount, or provide the City with other assurance reasonably
satisfactory to the City that the claim of lien or stop notice will be paid or discharged.
(a) If the Developer fails to discharge any lien, encumbrance, charge,
or claim in the manner required in this Section or obtain a surety bond, then in addition to any
other right or remedy, the City may (but is under no obligation to) discharge such lien,
encumbrance, charge, or claim at the Developer’s expense. Alternatively, the City may require
the Developer to immediately deposit with the City the amount necessary to satisfy such lien or
claim and any costs, pending resolution thereof. The City may use such deposit to satisfy any
claim or lien that is adversely determined against the Developer.
(b) The Developer must file a valid notice of cessation or notice of
completion upon cessation of construction of the Development for a continuous period of thirty
(30) days or more and take all other reasonable steps to forestall the assertion of claims of lien
against the Property or the Development. The Developer authorizes the City, but without any
obligation, to record any notices of completion or cessation of labor, or any other notice that the
City deems necessary or desirable to protect its interest in the Development and Property.
Section 4.9 Inspections. The Developer must permit and facilitate, and require
its contractors to permit and facilitate, observation and inspection at the Development by the City
and the Authority during business hours with reasonable notice.
Section 4.10 Records. The Developer must maintain complete, accurate, and
current records pertaining to the Development for a period of seven (7) years after the creation of
such records, and permit any duly authorized representative of the City to inspect and copy records
during regular business days/hours. Records must be kept accurate and current, and shall be kept
at Developer’s corporate office at 100 Pacifica, Suite 203, Irvine, California. Upon reasonable
written notice from the City requesting to review specified Developer records, the Developer shall
deliver the records to the City’s offices within fifteen (15) days following the City’s request.
(a) The City will notify the Developer of any records it deems
insufficient. The Developer will have thirty (30) days after delivery of such a notice to correct any
deficiency in the records specified by the City in such notice, or if a period longer than thirty (30)
days is reasonably necessary to correct the deficiency, then the Developer must begin to correct
the deficiency within thirty (30) days and complete the correction of the deficiency as soon as
reasonably possible.
Section 4.11 Certificate of Completion. Promptly after completing the
Development on a Parcel (Phase I or II) in accordance with those provisions of this Agreement
that relate solely to the obligations of Developer to construct the Development (including the dates
for beginning and completion thereof), the City will provide a Certificate of Completion so
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certifying (the “Certificate of Completion”). The Certificate of Completion will be the conclusive
determination that certain covenants in this Agreement with respect to the obligations of the
Developer to construct the Development (excluding the Developer’s compliance with Section 4.6)
and the dates for the beginning and completion thereof have been met. The Certificate of
Completion shall be in such form as will enable such certificate to be recorded in the Official
Records. The Certificate of Completion will not constitute evidence of compliance with or
satisfaction of any obligation of the Developer to: (a) any holder of a Security Financing Interest.
The Certificate of Completion may not be deemed a notice of completion under the California
Civil Code.
ARTICLE 5
AUTHORITY LOAN PROVISIONS
Section 5.1 Authority Loans. Subject to the terms and conditions set forth in
this Agreement, the Authority shall make a loan to the Developer for the Phase I Development in
the original principal amount of $1,965,539 and a loan for the Phase II Development in the original
principal amount of not less than $4,789,461. The Authority Loan shall be evidenced by two
promissory notes: (a) a Promissory Note for the Phase I Development executed by Developer in
favor of City in the amount of $1,965,539 secured by the Deed of Trust executed by the Developer
as trustor in favor of the City as beneficiary and recorded against the Developer’s fee interest in
the Phase I Parcel. and (b) a Promissory Note for the Phase II Development executed by Developer
in favor of City in the amount not less than $4,789,461 secured by the Deed of Trust executed by
the Developer as trustor in favor of the City as beneficiary and recorded against the Developer’s
fee interest in the Phase II Parcel.
Section 5.2 Use of Authority Loan. The proceeds of the Authority Loans shall
be used to fund the acquisition (pay the purchase prices) of the Parcels, and the remainder of the
Authority Loan for the Phase II Development shall be used for construction costs of the Phase II
Development.
Section 5.3 Delivery of Promissory Notes; Recording of Housing Agreements;
Deeds of Trust; Notices of Restrictions. Prior to the Close of Escrow and in accordance with the
Schedule of Performance, the City shall cause escrow holder to first record the Subdivision Map.
Upon and as a condition to the Close of Escrow for a Parcel, the escrow holder shall first record
the applicable grant deed, and then the applicable Housing Agreement and Density Bonus
Agreement for that Phase, the applicable Notice of Restrictions and then the applicable Deed of
Trust for the applicable Agency Loan (with no intervening recordings). The Housing Agreement
and Notice of Restrictions shall remain in full force and effect for fifty-five (55) years after the
issuance of the final Certificate of Occupancy for the Development on the applicable Phase,
regardless of any repayment of the applicable Authority Loan following a Developer Event of
Default or otherwise. The Executive Director of the Authority shall have the authority to execute
reasonable subordination agreements subordinating the Authority Deed of Trust for a Phase to the
deeds of trust securing other construction and permanent financing, provided copies of the senior
loan documents shall have been provided for the City’s reasonable review.
Section 5.4 Term of the Authority Loan. Unless sooner due under the terms of
the applicable Note, all principal and interest on the applicable Authority Loan shall be due upon
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the earliest of: a Transfer of any portion of the applicable collateral Property or the Developer’s
interest in such Property other than a Transfer permitted or approved by the Authority as provided
in Section 10.6;
(a) the occurrence of a Developer Event of Default for which the
Authority exercises its right to cause the Authority Loan indebtedness to become immediately due
and payable, or
(b) a default under the Housing Agreement which has not been cured
within the time periods specified therein.
(c) Fifty-five (55) years from the date of the applicable final Certificate
of Occupancy.
Section 5.5 Interest; Payments. Simple interest at three percent (3%) per annum
shall accrue on the outstanding principal amount of the applicable Authority Loan except in a
Developer Event of Default, whereupon interest shall accrue from and after the date of the
applicable Promissory Note until paid at the rate of ten percent (10%) or the highest rate permitted
by law. Payments shall be structured as residual receipts payments over the course of the
applicable Authority Loan and shall first be applied to interest then to principal.
Section 5.6 Disbursement of Authority Loans; Disbursement of Authority Loan
for Phase I. The Authority shall deposit into Escrow the Phase I loan. The Phase I funds shall be
disbursed by escrow holder to pay the Phase I Purchase Price.
Section 5.7 Disbursement of Authority Loan for Phase II. The Authority shall
deposit into Escrow the Phase II loan in the amount of the Phase II Parcel purchase price. The
Authority shall also deposit into Escrow the remainder of such loan together with a counterpart of
the agreement with the primary construction lender governing that lender’s holding and
disbursement of the City’s construction loan funds, with instructions to deliver such funds to such
lender provided Escrow has an executed counterpart of such agreement from such lender that is to
be delivered to the Authority. If no such agreement is reached or executed and delivered, then
Authority shall disburse the construction loan portion of its Phase II loan, not more often that once
every thirty (30) days, pursuant to normal and reasonable construction loan disbursement
conditions, including that Developer not be in default under the applicable loan documents, that
Developer shall have submitted a draw request certifying that the Authority loan is “in balance”
(enough undisbursed funds from committed loans exist to pay all Project construction costs) and
specifying the costs to be paid (by line item in the budget) with reasonable evidence of such costs,
conditional partial mechanics lien releases from payees of the current draw and unconditional
partial mechanics lien releases for the costs/work paid with the previous draw of construction loan
funds.
Section 5.8 Repayment Schedule. The Authority Loans shall be repaid as
follows:
(a) Payments. Commencing on the first June 1st following the
completion of the Phase, and on each June 1st thereafter until the applicable Promissory Note is
paid in full, the Developer shall make repayments of the applicable Authority Loan from fifty
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percent (50%) of Residual Receipts. The Authority will share the fifty percent (50%) of Residual
Receipts payment with the other public entities providing loans to the Developer for the respective
Phase. The Authority’s percentage share of fifty percent (50%) of Residual Receipts shall be equal
to the percentage derived by dividing the Authority loan amount by the combined total of the
Authority Loan and the other public entity loans committed to the Developer. The Developer shall
provide the Authority, within one hundred eighty (180) days following the end of each calendar
year, an Annual Financial Statement showing the actual income and expenditures with respect to
the Development for the immediately preceding calendar year. Payments made shall be credited
first against accrued interest and then against outstanding principal.
(b) Payment in Full. All principal and interest, if any, on the applicable
Authority Loan shall, at the option of the Authority, be due and payable upon the earliest of: (1) a
Transfer other than a Transfer permitted or approved by the Authority as provided in Article 7
below; (2) the occurrence of an Event of Default for which the Authority exercises its right to
cause the applicable Authority Loan indebtedness to become immediately due and payable; or (3)
the maturity date of the applicable Promissory Note.
(c) Prepayment. The Developer shall have the right to prepay the
Authority Loans at any time.
Section 5.9 Reports and Accounting of Residual Receipts; Audited Financial
Statement. In connection with the annual repayment of the Authority Loans, the Developer shall
furnish to the Authority an Annual Financial Statement.
Section 5.10 Books and Records. The Developer shall keep and maintain full,
complete and appropriate books, record and accounts relating to the Development, including all
such books, records and accounts necessary or prudent to evidence and substantiate in full detail
the Developer’s calculation of the applicable Residual Receipts, at the Developer’s corporate
office currently at 100 Pacifica, Suite 203 in the City of Irvine. Books, records and accounts
relating to the Developer’s compliance with the terms, provisions, covenants and conditions of this
Agreement shall be kept and maintained in accordance with generally accepted accounting
principles consistently applied and shall be consistent with requirements of this Agreement which
provide for the calculation of Residual Receipts on a cash basis. All such books, records, and
accounts shall be open to and available for inspection by the Authority, its auditors or other
authorized representatives at reasonable intervals during normal business hours on reasonable prior
notice to the Developer. Copies of all tax returns and other reports that the Developer may be
required to furnish any governmental agency shall at all reasonable times be open for inspection
by the Authority at the place that the books, records and accounts of the Developer are kept. The
Developer shall preserve records on which any statement of Residual Receipts is based for a period
of not less than five (5) years after such statement is rendered.
Section 5.11 Non-Recourse. Following recordation of the applicable Deed of
Trust, and except as provided below, the Developer shall not have any direct or indirect personal
liability for payment of the principal of, or interest on, the applicable Authority Loan or the
performance of the covenants of the Developer under the applicable Deed of Trust. The sole
recourse of the Authority with respect to the principal of, or interest on, the applicable Promissory
Note and defaults by the Developer in the performance of its covenants under the applicable Deed
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of Trust shall be to the property described in such Deed of Trust; provided, however, that nothing
contained in the foregoing limitation of liability shall: (a) limit or impair the enforcement against
all such security for the applicable Promissory Note of all the rights and remedies of the Authority
thereunder; or (b) be deemed in any way to impair the right of the Authority to assert the unpaid
principal amount of the applicable Promissory Note as demand for money within the meaning and
intendment of Section 431.70 of the California Code of Civil Procedure or any successor provision
thereto.
The foregoing limitation of liability is intended to apply only to the obligation for the
repayment of the principal of, and payment of interest on the applicable Promissory Note, except
as hereafter set forth; nothing contained herein is intended to relieve the Developer of personal
liability for (1) fraud or willful misrepresentation; (2) the failure to pay taxes, assessments or other
charges (which are not contested by Developer in good faith) which may create liens on the
Property or Phase that are payable or applicable prior to any foreclosure under the applicable Deed
of Trust (to the full extent of such taxes, assessments or other charges); (3) the Developer’s
indemnification obligations under this Agreement; (4) misappropriation of any rents, security
deposits, insurance proceeds, condemnation awards or any other proceeds derived from the
collateral security and (5) payment to the Authority of any rental income or other income arising
with respect to the Property received by the Developer after the Authority has given notice to the
Developer of the occurrence of an Event of Default, subject to the rights of any lender providing
a loan secured by the Property to which Authority has subordinated the Deed of Trust.
ARTICLE 6
ONGOING DEVELOPER OBLIGATIONS
Section 6.1 Applicability. The conditions and obligations set forth in this
Article 6 apply throughout the term of the Regulatory Agreement, unless a different period of
applicability is specified for a particular condition or obligation.
Section 6.2 Use of Development. The Developer hereby agrees that, for the
entire Term, the Development will be used and continuously operated only as affordable housing
in accordance with all applicable requirements of the California Community Redevelopment Law
(the “Law”), including, but not limited to, the requirement that such housing be provided to
households described in Section 50079.5 of the Law, at rents not exceeding the amounts set forth
in Section 50053(b)(3). In the event of any conflict between the terms of this Agreement and the
Regulatory Agreement, the Developer shall comply with the stricter requirement. In addition, the
Developer shall comply with the TCAC Regulatory Agreement (each while they are in effect) all
other applicable laws, statutes, and regulations governing the Development, including, but not
limited to affordability restrictions of all other public entities encumbering the Phase and the
applicable requirements of Code Section 42, and all TCAC regulations, for such time that the
Development is subject to such regulations.
Section 6.3 Maintenance. The Developer agrees to maintain all interior and
exterior portions of the Development, including landscaping, of the Development in first-class
condition and repair and in a sanitary condition (and, as to landscaping, in a healthy condition,
subject to any restrictions on water use) and all applicable laws, rules, ordinances, orders, and
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regulations of all federal, state, municipal, and other governmental agencies and bodies having or
claiming jurisdiction and all their respective departments, bureaus, and officials.
(a) The Developer acknowledges the great emphasis the City places on
quality maintenance to protect its investment and to provide quality affordable and market-rate
housing for area residents. In addition, the Developer must keep the Development free from all
graffiti, and any accumulation of shopping carts, debris or waste material. The Developer must
promptly make all repairs and replacements necessary to keep the Development in first-class
condition and repair and promptly eliminate all graffiti and replace dead and diseased plants and
landscaping with comparable approved materials.
(b) In the event that the Developer breaches any of the covenants
contained in this Section and such default continues for a period of seven (7) days after written
notice from the City with respect to graffiti, debris, waste material, and general maintenance or
thirty (30) days after written notice from the City with respect to landscaping and building
maintenance, then the City, in addition to whatever other remedy it may have at law or in equity,
will have the right to enter upon the Property and perform or cause to be performed all such acts
and work necessary to cure the default. Under such right of entry, the City will be permitted (but
is not required) to enter upon the Property and perform all acts and work necessary to protect,
maintain, and preserve the Development and landscaped areas on the Property, and Developer
shall reimburse City for the costs thereof and a ten percent (10%) administrative charge within ten
(10) days after written demand with evidence of the costs.
Section 6.4 Taxes and Assessments. The Developer must pay all real and
personal property taxes, assessments and charges and all franchise, income, employment, social
security benefit, withholding, sales, and other taxes assessed against it, or payable by it, at such
times and in such manner as to prevent any penalty from accruing, or any lien or charge from
attaching to the Property; provided, however, that the Developer has the right to contest in good
faith, any such taxes, assessments, or charges. In the event the Developer exercises its right to
contest any tax, assessment, or charge against it, the Developer, on final determination of the
proceeding or contest, must immediately pay or discharge any decision or judgment rendered
against it, together with all costs, charges and interest.
Section 6.5 Mandatory Language in All Subsequent Deeds, Leases and
Contracts; Basic Requirement. The Developer may not restrict the rental, sale, lease, sublease,
transfer, use, occupancy, tenure, or enjoyment of the Development on any basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code. Developer or any person
claiming under or through the Developer may not establish or permit any such practice or practices
of discrimination or segregation with reference to the selection, location, number, use or
occupancy of tenants, lessees, subtenants, sublessees or vendees in the Development. The
foregoing covenant runs with the land.
Section 6.6 Provisions in Conveyance Documents. All deeds, leases or
contracts made or entered into by Developer, and its successor and assigns permitted under this
Agreement, as to any portion of the Property must contain therein the following language:
(1) In Deeds:
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“(1) Grantee herein covenants by and for itself, its successors and
assigns, and all persons claiming under or through them, that there shall be no discrimination
against or segregation of, any person or group of persons on account of any basis listed in
subdivision (a) and (d) of Section 12955 of the Government Code, as those bases are defined in
Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955
and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy,
tenure or enjoyment of the property herein conveyed, nor shall the grantee or any person claiming
under or through the grantee, establish or permit any practice or practices of discrimination or
segregation with reference to the selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees or vendees in the property herein conveyed. The foregoing covenant shall
run with the land.
(2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in
Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph
(1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code,
relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to
paragraph (1).”
(2) In Leases:
“(1) Lessee herein covenants by and for itself, its successors and
assigns, and all persons claiming under or through them, that there shall be no discrimination
against or segregation of, any person or group of persons on account of any basis listed in
subdivision (a) and (d) of Section 12955 of the Government Code, as those bases are defined in
Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955
and Section 12955.2 of the Government Code in the leasing, subleasing, transferring, use,
occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee or any person
claiming under or through the lessee, establish or permit any such practice or practices of
discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased.
(2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in
Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph
(1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code,
relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to
paragraph (1).”
(3) In Contracts:
“(1) There shall be no discrimination against or segregation of,
any person or group of persons on account of any basis listed in subdivision (a) and (d) of Section
12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision
(m) and paragraph (1) of subdivision (p) of Section 12955 and Section 12955.2 of the Government
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Code in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property nor
shall the transferee or any person claiming under or through the transferee establish or permit any
such practice or practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land.
(2) Notwithstanding paragraph (1), with respect to familial
status, paragraph (1) shall not be construed to apply to housing for older persons, as defined in
Section 12955.9 of the Government Code. With respect to familial status, nothing in paragraph
(1) shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code,
relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to
paragraph (1).”
Section 6.7 Management Agent. The Developer shall manage or cause the
Development to be managed in a prudent and business-like manner, consistent with good property
management standards for other comparable high quality, well-managed affordable rental housing
projects in the City of Palm Desert. The Developer shall be responsible for all repair and
maintenance functions of the Development, including ordinary maintenance and replacement of
capital items. The Developer shall ensure maintenance of units and common areas in accordance
with local health, building and housing codes. Developer may contract with an experienced
property management company or property manager, to operate and maintain the Development
(“Property Manager”). The Property Management contract shall be subject to prior written
approval by the City and shall contain a provision allowing the Developer, with the approval of
the lenders and the California Tax Allocation Committee, to terminate the contract without penalty
upon no more than thirty (30) days’ notice.
(a) The Developer will develop a management plan and deliver a copy
thereof to City as a condition to the closing of each Phase (a “Property Management Plan”). The
Property Management Plan shall include the following:
(1) The role and responsibility of the Developer and its
delegation of authority, if any, to the Property Manager;
(2) Personnel policy and staffing arrangements, including
ongoing training of staff in best practices for serving the Project tenants;
(3) Plans and procedures for publicizing and achieving early and
continued occupancy;
(4) Procedures for determining tenant eligibility, and selecting
tenants, and for certifying and annually recertifying household status, income and size;
(5) Plans for carrying out an effective maintenance and repair
program;
(6) Rent collection policies and procedures;
(7) Plans for enhancing tenant-management relations;
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(8) Appeal and grievance procedures;
(9) Description of how service staff and property management
staff will work together to prevent evictions and to facilitate the implementation of reasonable
accommodation policies.
(b) Upon a determination by the City that the Property Manager has
failed to operate the Development in accordance with the Management Plan, the City shall provide
written notice to the Developer specifying the Property Manager’s breach of the Management Plan
and providing the Developer at least thirty (30) days to cure the specified breach. Within thirty
(30) days the Developer must either use good faith efforts to cure the breach or, if such cure is of
the nature to take longer than thirty (30) days, the Developer shall commence the cure during the
thirty (30) day period and complete the cure by the conclusion of one hundred eighty (180) days
the Developer’s receipt of the City’s notice, or in such other time period as the parties may
mutually agree. If the Developer has failed to cure the breach of the Management Plan by the
expiration of the relevant cure period, the City may immediately provide a written notice to the
Developer requiring that the Developer promptly terminate the existing Property Manager and
contract with an alternative qualified management agent to operate the Project, each with the
approval of the lenders and the California Tax Allocation Committee, or to make such other
arrangements as the City deems reasonably necessary to ensure performance of the functions and
obligations set forth in the applicable Property Management Plan.
Section 6.8 Insurance Requirements; Required Coverage. The Developer must
maintain and keep in force, at the Developer’s sole cost and expense, the following insurance
applicable to the Development:
(a) Workers’ Compensation insurance, as required by the State of
California and consistent with statutory limits, and Employers’ Liability coverage, with limits not
less than One Million Dollars ($1,000,000) each accident for bodily injury or disease.
(b) Commercial General Liability insurance with limits not less than
One Million Dollars ($1,000,000) each occurrence and Five Million Dollars ($5,000,000)
aggregate combined single limit for Bodily Injury and Property Damage, including coverages for
Contractual Liability, Personal Injury, Broad form Property Damage, Products and Completed
Operations. Products and Completed Operations coverage must be obtained no later than
completion of construction of the Development. The Developer shall cause the Developer’s
general contractor to maintain Commercial General Liability insurance with limits not less than
Two Million Dollars ($2,000,000) each occurrence and Four Million Dollars ($4,000,000)
aggregate combined single limit for Bodily Injury and Property Damage, including coverages for
Contractual Liability, Personal Injury, Broad form Property Damage, Products and Completed
Operations.
(c) Commercial Automobile Liability insurance with limits not less
than One Million Dollars ($1,000,000) each occurrence combined single limit for Bodily Injury
and Property Damage, including coverages for owned, non-owned and hired vehicles, as
applicable; provided, however, that if the Developer does not own or lease vehicles, or operate any
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non-owned vehicles for purposes of this Agreement, then no automobile liability insurance will be
required and both Parties to this Agreement must initial this provision signifying same.
(d) Professional liability insurance in an amount not less than One
Million Dollars ($1,000,000) each occurrence and Two Million Dollars ($2,000,000) aggregate
policy limit. Developer may meet this requirement by requiring any design professional retained
by the Developer or general contractor to maintain professional liability insurance in the minimum
amounts specified in this subsection.
(e) Builders’ risk insurance during the course of construction (and upon
completion of construction, property insurance) covering the Development and covering all risks
of loss, excluding earthquake and including flood (if required), for one hundred percent (100%) of
the replacement value, with deductible, if any, acceptable to the City.
Section 6.9 Subcontractor’s Insurance. Developer must require and verify that
all subcontractors and agents working on the Development maintain Workers’ Compensation
insurance meeting all the requirements stated in this Section, and Developer must ensure that City
and the Authority are both additional insureds on insurance required from subcontractors as
described in subsection (c)(2) of this Section.
(a) General Requirements.
(1) Except for professional liability, the required insurance must
be provided under an occurrence form, and the Developer must maintain such coverage
continuously throughout the Term. Should any of the required insurance be provided under a form
of coverage that includes an annual aggregate limit or provides that claims investigation or legal
defense costs be included in such annual aggregate limit, such annual aggregate limit must be three
(3) times the occurrence limits specified above.
(2) All Commercial General Liability, Commercial Automobile
Liability and Property insurance policies (including builders’ risk) must be endorsed to name as
additional insureds the City, the Authority and their elected officials, officers, directors,
representatives, consultants, employees, and agents. The endorsement must include liability
arising out of work or operations performed by or on behalf of Developer including materials,
parts, or equipment furnished in connection with such work or operations and automobiles owned,
leased, hired or borrowed by or on behalf of Developer. For commercial general liability, the
policy must be endorsed with a form at least as broad as ISO form CG 20 10 11 85 or both CG 20
10 and CG 20 37 forms if later revisions used.
(3) Developer’s insurance must be primary to any other
insurance (including self-insurance) available to the City or the Authority (including elected
officials, officers, directors, representatives, consultants, employees, and agents) with respect to
any claim arising out of this Agreement. Any insurance maintained by the City or Authority shall
be excess of the Developer’s insurance and shall not contribute with it.
(4) No policy shall be canceled, limited, or allowed to expire
without renewal until after thirty (30) days written notice has been given to the City and Authority
by first class mail.
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(5) Insurance is to be placed with insurers with a current A.M.
Best’s rating of no less than A:VII, unless otherwise acceptable to the Entity. Exception may be
made for the State Compensation Insurance Fund when not specifically rated.
(b) Deductibles. Any deductibles or self-insured retentions must be
declared to and approved by City. At the option of City, either:
(1) Developer must reduce or eliminate such deductibles or self-
insured retentions as respects the City and its elected officials, officers, directors, representatives,
consultants, employees, and agents; or,
(2) Developer must provide a financial guarantee satisfactory to
City guaranteeing payment of losses and related investigations, claim administration, and defense
expenses.
(c) Subrogation Waiver. Developer hereby grants to City and the
Authority a waiver of any right to subrogation which any insurer of Developer may acquire against
the City by virtue of the payment of any loss under such insurance. Developer agrees to obtain
any endorsement that may be necessary to effect this waiver of subrogation. The Workers’
Compensation policy must be endorsed with a waiver of subrogation in favor of City for all work
performed by Developer, its employees, agents, and subcontractors. This provision applies
regardless of whether or not the City or Authority has requested or received a waiver of subrogation
endorsement from the insurer.
Section 6.10 Certificates of Insurance. As a condition to the Close of Escrow for
each Phase, the Developer must provide certificates of insurance, in form and with insurers
reasonably acceptable to the City, evidencing compliance with the requirements of this Section,
and must provide complete copies of such insurance policies, including endorsements as required
by this Section. However, failure to obtain the required documents before the work beginning
shall not waive Developer’s obligation to provide them. City reserves the right to require
complete, certified copies of all required insurance policies, including endorsements, required by
these specifications, at any time.
Section 6.11 Additional Coverage. Developer may carry, at its own expense, any
additional insurance it deems necessary or prudent. If Developer maintains higher levels than the
minimums shown above, City requires and shall be entitled to coverage for the higher limits
maintained by Developer. Any available insurance proceeds in excess of the specified minimum
levels of insurance and coverage shall be available to the City.
Section 6.12 Audits. The Developer must make available for examination at
reasonable intervals and during normal business hours to the Authority and the City all books,
accounts, reports, files, and other papers or property with respect to all matters covered by this
Agreement, and permit the Authority and the City to audit, examine, and make excerpts or
transcripts from such records, and such records shall be kept at 100 Pacifica, Suite 203 in the City
of Irvine. The Authority and the City may make audits of such records.
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ARTICLE 7
ASSIGNMENTS AND TRANSFERS
Section 7.1 Definitions. As used in this Article 7, the term “Transfer” means:
Any total or partial sale, assignment or conveyance, or any trust or power, or any transfer in any
other mode or form, of or with respect to this Agreement or of the Development or any part thereof
or any interest therein or any contract or agreement to do any of the same;
(a) Any total or partial sale, assignment or conveyance, or any trust or
power, or any transfer in any other mode or form, of or with respect to any ownership interest in
Developer or any contract or agreement to do any of the same;
(b) Any merger, consolidation, sale or lease of all or substantially all of
the assets of the Developer; or
(c) The leasing of part or all of the Development thereon; provided,
however, that leasing of the Units included within the Development to tenant occupants in
accordance with the Regulatory Agreement or the leasing of the Commercial Space in the
Development in accordance with this Agreement shall not be deemed a Transfer for purposes of
this Article 7.
Section 7.2 Purpose of Restrictions on Transfer. This Agreement is entered into
solely for the purpose of the development and operation of the Development and its subsequent
use in accordance with the terms hereof. The Developer recognizes that the qualifications and
identity of Developer are of particular concern to the City, in view of:
(a) The importance of the redevelopment of the Property to the general
welfare of the community;
(b) The land acquisition assistance and other public aids that have been
made available by law and by the government for the purpose of making such redevelopment
possible;
(c) The reliance by the City upon the unique qualifications and ability
of the Developer to serve as the catalyst for development of the Property;
(d) The fact that a change in ownership or Control of the Developer, or
of a substantial part thereof, or any other act or transaction involving or resulting in a significant
change in ownership or with respect to the identity of the parties in Control of the Developer is for
practical purposes a transfer or disposition of the Property;
(e) The fact that the Property is not to be acquired or used for
speculation, but only for development and operation by the Developer in accordance with this
Agreement and the Regulatory Agreement; and
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(f) The Developer further recognizes that it is because of such
qualifications and identity that the City is entering into this Agreement with the Developer and
that Transfers are permitted only as provided in this Agreement.
Section 7.3 Prohibited Transfers. Any Transfer made in contravention of this
Section and is void and are deemed to be a Developer Event of Default under this Agreement
whether or not the Developer knew of or participated in such Transfer. Except for permitted
Transfers described in Section 7.4, no Transfer shall be permitted in the absence of specific written
agreement by the City, and, unless approved by the City in writing, no Transfer or assignment will
be deemed to relieve the Developer or any other party from any obligations under this Agreement.
Section 7.4 Permitted Transfers. Notwithstanding the provisions of Section 7.3,
the following Transfers are permitted and are hereby approved by the City without further review.
Any consent by the City under this Section 7.4 shall constitute the consent of the Authority:
(a) Notwithstanding the provisions of Section 7.3, the following
Transfers shall be permitted and are hereby approved by the City:
(1) Any Transfer creating a Security Financing Interest
permitted pursuant to the approved Financing Proposal;
(2) Any Transfer of an entire Phase to a limited partnership in
which the Developer or an entity Controlled by the Developer is the administrative general partner
of such limited partnership (provided City shall have been given a copy of the limited partnership,
and copies of the organizational documents of the general partner).
(3) The Transfer of an entire Phase to a nonprofit managing
general partner pursuant to a right of first refusal agreement given by a limited partnership owner
of the Phase.
(4) The Transfer of an entire Phase to the administrative general
partner pursuant to an option agreement given by a limited partnership owner of the Phase.
(5) The admission of a tax credit investor limited partner to
Developer, and any subsequent transfer of investor limited partner interest thereafter.
(6) Any Transfer directly resulting from the foreclosure of a
Security Financing Interest or the granting of a deed in lieu of foreclosure of a Security Financing
Interest or as otherwise permitted under Article;
(7) The leasing of residential units within the Development in
accordance with the applicable Housing Agreement;
(8) The granting of reasonable easements or permits to facilitate
the Development of the Property.
Section 7.5 Other Transfers with City Consent. Any Transfers not permitted
under Section 7.4 shall require the prior written approval of the City Manager.
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(a) No Transfer of this Agreement permitted under this Section will be
effective unless, at the time of the Transfer, the transferor and transferee enter into and records an
assignment and assumption agreement in a form reasonably approved by the City Manager.
Section 7.6 Termination of Limitations on Transfers. The limitations on
Transfers set forth in this Article 7 shall apply with respect to the Property or a Phase until issuance
by the City of a Certificate of Completion for the Phase.
ARTICLE 8 DEFAULT
AND REMEDIES
Section 8.1 General Applicability. The provisions of this Article 8 govern the
Parties’ remedies for breach or failure of this Agreement. If a closing condition does not occur,
then either Party shall not be obligated to convey or accept the applicable parcel, may terminate
the obligation to convey/accept and the Deposit shall be returned to the Developer; however, the
foregoing does not relieve a party from the implied covenant of good faith and fair dealing (with
the understanding that such implied covenant does not apply to the City acting in its governmental
capacity).
Section 8.2 Fault of City. Each of the following events, if uncured after
expiration of the applicable cure period in constitutes a “City Event of Default”. The City, without
good cause, fails to sell the Property to the Developer in the manner set forth in Article 3 and the
Developer is otherwise entitled by this Agreement to such conveyance; or
(a) The City breaches any other material provision of this Agreement
which is materially adverse to Developer.
Section 8.3 Fault of Authority. Each of the following events, if uncured after
expiration of the applicable cure period, constitutes an “Authority Event of Default”:
(a) The Authority, without good cause, fails to disburse the Authority
Loan to the Developer in the manner set forth in Article 5 and the Developer is otherwise entitled
by this Agreement to the disbursement; or
(b) The Authority breaches any other material provision of this
Agreement which is materially adverse to Developer.
Section 8.4 Fault of Developer. Each of the following events, if uncured after
expiration of the applicable cure period, constitutes a “Developer Event of Default”:
(a) The Developer fails to exercise good faith and diligent efforts to
satisfy, within the time and in the manner set forth in Article 3, one or more of the conditions
precedent to the City’s obligation to convey the Property to the Developer;
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(b) The Developer refuses to accept conveyance from the City of the
Property within the time periods and under the terms set forth in Article 3 and fails to cure the
default within thirty (30) days after notice of default from City or Authority;
(c) The Developer fails to construct the Development in violation of
Article 4 cure the default within thirty (30) days after notice of default from City or Authority;
(d) The Developer fails to comply with any construction deadlines in
the Schedule of Performance.
(e) Any default by the Developer under the Housing Agreement shall
also be a Developer Event of Default under this Agreement and the Authority Loan Documents,
subject to any required notice and cure period under the Housing Agreement;
(f) A Transfer occurs, either voluntarily or involuntarily, in violation of
Article 7;
(g) Any representation or warranty contained in this Agreement or in
any application, financial statement, certificate, or report submitted to the City in connection with
this Agreement proves to have been incorrect in any material and adverse respect when made;
(h) A court having jurisdiction makes or enters any decree or order:
(1) adjudging the Developer to be bankrupt or insolvent; (2) approving as properly filed a petition
seeking reorganization of the Developer, or seeking any arrangement for the Developer, under the
bankruptcy law or any other applicable debtor’s relief law or statute of the United States or any
state or other jurisdiction; (3) appointing a receiver, trustee, liquidator, or assignee of the
Developer, in bankruptcy or insolvency or for any of their properties; or (4) directing the winding
up or liquidation of the Developer, if any such decree or order described in clauses (1) to (4),
inclusive, continued unstayed or undischarged for a period of ninety (90) days unless a lesser time
period is permitted for cure under any other mortgage on the Property, in which event such lesser
time period will apply under this subsection (i) as well; or the Developer, admits in writing its
inability to pay its debts as they fall due or voluntarily submits to or files a petition seeking any
decree or order of the nature described in clauses (1) to (4), inclusive;
(i) The Developer assigns its assets for the benefit of its creditors or
suffered a sequestration or attachment of or execution on any substantial part of its property, unless
the property so assigned, sequestered, attached or executed upon have been returned or released
within ninety (90) days after such event (unless a lesser time period is permitted for cure under
any other mortgage on the Property, in which event such lesser time period will apply under this
subsection as well) or prior to sooner sale under such sequestration, attachment, or execution;
(j) The Developer voluntarily suspends its business or, the Developer
is dissolved or terminated;
(k) There occurs any default declared by any entity under any loan
document to which City or Authority is not a party/beneficiary, and which is related to any loans
secured by a deed of trust on the Development or any such deed of trust or any regulatory
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agreement recorded against the Property (other than the Housing Agreement), after the expiration
of applicable cure periods in the applicable documents; or
(l) The Developer breaches any other provision of this Agreement and
fails to cure the default within thirty (30) days after notice of default from City or Authority, or
the Developer breaches any other provision of any Authority Loan Documents and fails to cure
the same within: (a) the cure period in the Authority Loan Documents, if any applicable to the
default; or (b) if no cure period applies, and the default is not included/described in the preceding
subsections, then Developer fails to cure the default within thirty (30) days after written notice
from Authority.
Section 8.5 Notice and Cure Period Regarding City/Authority Defaults. Before
initiating any action for relief against City or Authority for an alleged breach of this Agreement,
Developer must deliver to City or Authority, as applicable, a written notice of breach specifying
all of the reasons for the allegation of default with reasonable particularity. Within thirty (30)
days, City or Authority (as applicable) must either: (1) use good faith efforts to cure the breach
or, if such cure is of the nature to take longer than thirty (30) days, to follow the procedures
specified in subsection (b) below; or (2) if in the determination of the City or Authority, the event
does not constitute a breach of this Agreement, the City or Authority, as applicable, within thirty
(30) days of receipt of the Notice of Default, must deliver to Developer a notice which sets forth
with reasonable particularity the reasons that a default has not occurred. Failure to respond within
the thirty (30) day period may not be deemed an admission of the default.
(a) If the City or Authority, as applicable, believes that the Default
cannot practically be cured within the thirty (30)-day period, it shall not be in Default provided
that: (1) the cure is commenced during the thirty (30) day period after receipt of the Notice of
Default; (2) within the thirty (30) day period, the Defaulting Party provides a schedule to
Developer for cure, ; and (3) the cure is thereafter diligently prosecuted to completion, and City or
Authority as applicable uses good faith efforts to comply with the schedule.
Section 8.6 Remedies; City Remedies. With respect to an uncured Developer
Event of Default, the City shall be entitled to take any or all of the following remedies:
(a) Terminating this Agreement by giving written notice to the
Developer; provided, however, that the City’s remedies under this Article 8 and the
indemnification provisions of this Agreement survive such termination. If the City elects to
terminate this Agreement, the provisions of this Agreement that are specified to survive such
termination shall remain in full force and effect.
(b) Prosecuting an action for damages (excluding specific performance,
punitive damages and indirect consequential damages); or seeking any other remedy available at
law or in equity (excluding punitive damages and indirect consequential damages).
Section 8.7 Developer Remedies. With respect to an uncured City Event of
Default or Authority Event of Default, the Developer shall be entitled to take any or all of the
following remedies:
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(a) Terminating this Agreement by giving written notice to the
Developer; provided, however, that the Developer’s remedies under this Article 8 and the
indemnification provisions of this Agreement survive such termination. If the Developer elects to
terminate this Agreement, the provisions of this Agreement that are specified to survive such
termination shall remain in full force and effect.
(b) Prosecuting an action for damages (excluding specific performance,
punitive damages, lost profits and indirect consequential damages); or seeking any other remedy
available at law or in equity (excluding punitive damages and indirect consequential damages).
Section 8.8 Authority Remedies. With respect to an uncured Developer Event
of Default as to a Phase, the Authority shall be entitled to exercise any or all remedies permitted
at law or in equity, and any remedies under the Promissory Note and Deed of Trust for that Phase
(including acceleration of the applicable loan).
Section 8.9 Rights of Mortgagees. Any rights of the City or Authority under
this Article 8 will not defeat, limit or render invalid any Security Financing Interest permitted by
this Agreement or any rights provided for in this Agreement for the protection of holders of
Security Financing Interests.
Section 8.10 Remedies Cumulative. No right, power, or remedy given to the City
by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy;
and each and every such right, power, or remedy will be cumulative and in addition to every other
right, power, or remedy given by the terms of any such instrument, or by any statute or otherwise.
Neither the failure nor any delay to exercise any such rights and remedies will operate as a waiver
thereof, nor will any single or partial exercise of any such right or remedy preclude any other or
further exercise of such right or remedy, or any other right or remedy.
ARTICLE 9
SECURITY FINANCING AND RIGHTS OF HOLDERS
Section 9.1 No Encumbrances Except for Development Purposes.
Notwithstanding any other provision of this Agreement, mortgages and deeds of trust, or any other
reasonable method of security are permitted to be placed upon the Developer’s fee interest in the
Property, but only for the purpose of securing loans approved by the City under the approved
Financing Proposal. Mortgages, deeds of trust, or other reasonable security instruments securing
loans approved by the City under the approved Financing Proposal are each referred to as a
“Security Financing Interest.” The words “mortgage” and “deed of trust” as used in this
Agreement include all other appropriate modes of financing real estate acquisition, construction,
and land development.
Section 9.2 Holder Not Obligated to Construct. The holder of any Security
Financing Interest authorized by this Agreement is not obligated to construct or complete any
Development or to guarantee such construction or completion; nor will any covenant or any other
provision in conveyances from the City to the Developer evidencing the realty comprising the
Property or any part thereof be construed so to obligate such holder. However, no such holder
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shall devote the Property or any portion thereof to any uses, or to construct any Development
thereon, other than the Development provided for or authorized by this Agreement and the Housing
Agreement.
Section 9.3 Notice of Default and Right to Cure. Whenever the City under its
rights set forth in Article 8 of this Agreement delivers any notice or demand to the Developer with
respect to the commencement, completion, or cessation of the construction of the Development,
the City will at the same time deliver to each holder of record of any Security Financing Interest
creating a lien upon the Developer’s fee interest in the Property or any portion thereof, and the
Investor, a copy of such notice or demand provided City shall have been given written notice of
its address for notice by the Developer. Each such holder (insofar as the rights of the City are
concerned) has the right, but not the obligation, at its option, within ninety (90) days after the
delivery of the notice, to cure or remedy or commence to cure or remedy any such default or breach
affecting the Property which is subject to the lien of the Security Financing Interest held by such
holder and to add the cost thereof to the security interest debt and the lien on its security interest.
Nothing contained in this Agreement is deemed to permit or authorize such holder to undertake or
continue the construction or completion of the Development (beyond the extent necessary to
conserve or protect such Development or construction already made) without first having
expressly assumed in writing the Developer’s obligations to the City relating to such Development
under this Agreement under an assignment and assumption agreement prepared by the City and
recordable among the Official Records (the “Security Financing Interest Assignment”). The
holder in that event must agree to complete, in the manner provided in this Agreement (or as may
be amended by the Security Financing Interest Assignment; provided, however, the City is under
no obligation to extend the dates for performance set forth in this Agreement), the Development
to which the lien or title of such holder relates. Any such holder properly completing such
Development under this paragraph must assume all rights and obligations of Developer under this
Agreement and will be entitled, upon completion and written request made to the City, to a
Certificate of Completion from the City.
Section 9.4 Failure of Holder to Complete Development. In any case where six
(6) months after default by the Developer in completion of construction of the Development under
this Agreement, the holder of record of any Security Financing Interest, having first exercised its
option to construct under the Security Financing Interest Assignment, has not proceeded diligently
with construction (as reasonably determined by the City), the City and Authority must be afforded
those rights against such holder it would otherwise have against Developer under this Agreement.
Section 9.5 Right of Cure. In the event of a default or breach by the Developer
of a Security Financing Interest prior to the completion of the Development, and the holder has
not exercised its option to complete the Development on the Property, the City or Authority may
cure the default, prior to the completion of any foreclosure. In such event the City or Authority as
applicable will be entitled to reimbursement from the Developer of all costs and expenses incurred
bin curing the default. The City will also be entitled to a lien upon the Property or any portion
thereof to the extent of such costs and disbursements, or in the case of the Authority, the
Developer’s obligation to reimburse for costs and disbursements shall be included in the
obligations secured by the applicable Deed of Trust. The City agrees that such lien will be
subordinate to any Security Financing Interest, and the City will execute from time to time any
and all documentation reasonably requested by Developer to effect such subordination.
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Section 9.6 Right of City to Satisfy Other Liens. After the conveyance of title
to the Property or any portion thereof and after the Developer has had a reasonable time to
challenge, cure or satisfy any liens or encumbrances on the Property or any portion thereof, the
City will have the right to satisfy any such lien or encumbrances; provided, however, that nothing
in this Agreement will require the Developer to pay or make provision for the payment of any tax,
assessment, lien or charge so long as the Developer in good faith may contest the validity or
amount therein and so long as such delay in payment is not subject the Property or any portion
thereof to forfeiture or sale.
Section 9.7 Holder to be Notified. The Developer will insert each term
contained in this Article 9 into each Security Financing Interest or will procure acknowledgement
of such terms by each prospective holder of a Security Financing Interest prior to its coming into
any security right or interest in the Property or portion thereof.
Section 9.8 Estoppel Certificates. Any Party may at any time, and from time to
time, deliver written notice to another Party requesting such other party to certify in writing that,
to the knowledge of the certifying Party: (a) this Agreement is in full force and effect and a binding
obligation of the Parties; (b) this Agreement has not been amended or modified either orally or in
writing, or if so amended, identifying the amendments; and (c) the requesting Party is not in default
in the performance of its obligations under this Agreement, or if in default, the notice shall describe
the nature and amount of any such default. A Party receiving a request shall execute and return
such certificate within fifteen (15) days following receipt of the request. The City Manager is
authorized to execute any estoppel certificate requested by the Developer on behalf of the City.
The Authority’s Executive Director is authorized to execute any estoppel certificate requested by
the Developer on behalf of the Authority.
ARTICLE 10
GENERAL PROVISIONS
Section 10.1 Notices, Demands and Communications. Formal notices, demands,
and communications between the City and the Developer will be sufficiently given if, and not be
deemed given unless, dispatched by registered or certified mail, postage prepaid, return receipt
requested, or delivered by reputable overnight delivery service, to the principal office of the City
and the Developer as follows:
City and Authority: City of Palm Desert/Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Housing Division
Developer: Palm Communities
100 Pacifica, Suite 203
Irvine, CA 92618
Attn: President
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Such written notices, demands and communications may be sent in the same manner to such other
addresses as the affected Party may from time to time designate by notice as provided in this
Section.
Section 10.2 Non-Liability of Officials, Employees and Agents. No City Council
members, or Authority board members, or any of the officers, directors, representatives,
consultants, employees and agents of the City or Authority may be personally liable to the
Developer, or any successor in interest, in the event of any default or breach by the City or
Authority or for any amount which may become due to the Developer or successor or on any
obligation under the terms of this Agreement. Absent fraud or willful misconduct by the
responsible party, no members, officers, directors, representatives, consultants, employees and
agents of the Developer may be personally liable to the City or Authority, or any successor in
interest, in the event of any default or breach by the Developer or for any amount which may
become due to the City or Authority or successor or on any obligation under the terms of this
Agreement.
Section 10.3 Forced Delay. In addition to specific provisions of this Agreement,
any Party hereunder shall not be deemed to be in default with respect to a construction
obligation/deadline where delays or defaults are due to war; insurrection; strikes; lock-outs; riots;
floods; earthquakes; fires; casualties; acts of God; acts of the public enemy; epidemics; quarantine
restrictions; freight embargoes; lack of transportation; governmental restrictions or priority (except
for restrictions or priorities established by the Party required to perform the action required under
this Agreement); unusually severe weather; inability to secure necessary labor, materials or tools;
acts or the failure to act of any public or governmental agency or entity (except that acts or the
failure to act of a Party shall not excuse performance by such Party, including without limitation
the Developer’s inability to obtain financing for the Development or the economic infeasibility of
the Development) (“Force Majeure”). An extension of time for Force Majeure shall only be for
the period of the enforced delay, which period shall commence to run from the time of the
notification of the delay by the Party requesting the extension to the other Party. The Party
requesting an extension of time under this Section 10.3 shall give notice promptly following
knowledge of the delay to the other Party. If, however, notice by the Party claiming such extension
is sent to the other Party more than thirty (30) days after knowledge of the commencement of the
delay, the period shall commence to run upon the earlier of (i) thirty (30) days prior to the giving
of such notice or (ii) the date that the other Party received knowledge of the events giving rise to
the delay.
Section 10.4 Inspection of Books and Records. Upon request, the Developer
must permit the City and Authority to inspect at reasonable times and on a confidential basis those
books, records and all other documents of the Developer necessary to determine Developer’s
compliance with the terms of this Agreement. Title of Parts and Sections. Any titles of the articles,
sections or subsections of this Agreement are inserted for convenience of reference only and should
be disregarded in construing or interpreting any part of its provision.
Section 10.5 No Third-Party Beneficiaries. There are no third party beneficiaries
to this Agreement.
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Section 10.6 Applicable Law. This Agreement must be interpreted under and
under the laws of the State of California. Venue shall be Riverside County.
Section 10.7 No Brokers. Each Party represents to the other that it has not had
any contact or dealings regarding the Property, or any communication in connection with the
subject matter of this transaction, through any real estate broker or other person who can claim a
right to a commission or finder’s fee. If any broker or finder makes a claim for a commission or
finder’s fee based upon a contact, dealings, or communications, the Party through whom the broker
or finder makes this claim must indemnify, defend with counsel of the indemnified Party’s choice,
and hold the indemnified Party harmless from all expense, loss, damage and claims, including the
indemnified Party’s reasonable attorneys’ fees, if necessary, arising out of the broker’s or finder’s
claim. The provisions of this Section survive expiration of the Term or other termination of this
Agreement and will remain in full force and effect.
Section 10.8 Legal Actions. In the event any legal action is commenced to
interpret or to enforce the terms of this Agreement or to collect damages as a result of any breach
thereof, each Party shall bear their own attorneys’ fees and no attorneys’ fees may be awarded to
the Party prevailing in the action.
Section 10.9 Severability. If any term, provision, covenant or condition of this
Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the provisions will continue in full force and effect unless the rights and obligations
of the Parties have been materially altered or abridged by such invalidation, voiding or
unenforceability.
Section 10.10 Binding Upon Successors. This Agreement is binding upon and
inures to the benefit of the heirs, administrators, executors, successors in interest and assigns of
each of the Parties hereto, except that there may be no Transfer of any interest by any of the Parties
hereto except under the terms of this Agreement. Any reference in this Agreement to a specifically
named Party is deemed to apply to any successor, heir, administrator, executor or assignee of such
Party who has acquired an interest in compliance with the terms of this Agreement, or under law.
Section 10.11 Parties Not Co-Venturers. Nothing in this Agreement is intended to
or does establish the Parties as partners, co-venturers, or principal and agent with one another.
Section 10.12 Discretion Retained by City. The City’s execution of this
Agreement does not constitute approval by the City and in no way limits the discretion or any
governmental rights or powers of the City in the permit and approval process in connection with
construction of the Development.
Section 10.13 Time of the Essence. In all matters under this Agreement, the
Parties agree that time is of the essence.
Section 10.14 Representation and Warranties of Developer. The Developer
hereby represents and warrants to the City and Authority as follows:
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(a) Organization. The Developer is a duly organized, validly existing
corporation, is in good standing under the laws of the State of California and has the power and
authority to own its property and carry on its business as now being conducted.
(b) Authority of Developer. The Developer has full power and
authority to execute and deliver this Agreement and to perform and observe the terms and
provisions of all of the above.
(c) Authority of Persons Executing Documents. This Agreement and
all other documents or instruments executed and delivered, or to be executed and delivered, under
this Agreement have been executed and delivered by persons who are duly authorized to execute
and deliver the same for and on behalf of Developer, and all actions required under the Developer’s
organizational documents and applicable governing law for the authorization, execution, delivery
and performance of this Agreement and all other documents or instruments executed and delivered,
or to be executed and delivered, under this Agreement, have been duly taken.
(d) Valid Binding Agreements. This Agreement and all other
documents or instruments which have been executed and delivered under or in connection with
this Agreement constitute or, if not yet executed or delivered, will when so executed and delivered
constitute, legal, valid and binding obligations of the Developer enforceable against it in
accordance with their respective terms.
(e) No Breach of Law or Agreement. Neither the execution nor delivery
of this Agreement or of any other documents or instruments executed and delivered, or to be
executed or delivered, under this Agreement, nor the performance of any provision, condition,
covenant or other term hereof or thereof, will conflict with or result in a breach of any statute, rule
or regulation, or any judgment, decree or order of any court, City Council, commission or agency
whatsoever binding on the Developer, or any provision of the organizational documents of the
Developer, or will conflict with or constitute a breach of or a default under any agreement to which
the Developer is a party.
Section 10.15 Entire Understanding of the Parties. This Agreement constitutes the
entire understanding and agreement of the Parties. All prior discussions, understandings and
written agreements are superseded by this Agreement.
Section 10.16 Amendments. The Parties can amend this Agreement only by
means of a writing executed by the Developer, the Authority and the City.
Section 10.17 Approvals. Whenever this Agreement permits City approval,
consent, or waiver, to be authorized by the City Manager, the City Manager’s signature shall
constitute the approval, consent, or waiver of the City, without further authorization required from
the City Council unless required by law or the terms of this Agreement. Whenever this Agreement
permits Authority approval, consent, or waiver, to be authorized by the Authority’s Executive
Director, the Authority’s Executive Director signature shall constitute the approval, consent, or
waiver of the Authority, without further authorization required from the Authority’s governing
board unless required by law or the terms of this Agreement.
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Section 10.18 Counterparts; Multiple Originals. This Agreement may be executed
in counterparts, each of which is deemed to be an original.
The City, the Authority and the Developer are signing this Agreement as of the Effective
Date.
CITY:
CITY OF PALM DESERT,
a municipal corporation
By:
L. Todd Hileman
City Manager
DEVELOPER:
PALM COMMUNITIES,
a California corporation
By:
Danavon L. Horn
President
APPROVED AS TO FORM:
Richard, Watson & Gerson
By:
Special Counsel
AUTHORITY:
PALM DESERT HOUSING AUTHORITY
By: ___
L. Todd Hileman
Executive Director
APPROVED AS TO FORM:
Richard, Watson & Gerson
By:
Special Counsel
Page 311 of 855
Page 312 of 855
EXHIBIT A
LEGAL DESCRIPTION OF THE PROPERTY
The land referred to is situated in the City of Palm Desert, State of California, and is described as
follows:
THOSE PORTIONS OF PARCEL 8 AND PARCEL 9 OF PARCEL MAP NO. 36792, IN THE.
CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS
SHOWN BY MAP ON FILE IN BOOK 239 OF PARCEL MAPS, PAGES 9 THROUGH 15,
INCLUSIVE, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY
DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF SAID PARCEL 8; THENCE ALONG THE
SOUTH LINE OF SAID PARCEL 9, SOUTH 89°56’08” WEST 72.55 FEET TO A LINE THAT
IS PARALLEL WITH AND DISTANT EASTERLY 138.45 FEET, MEASURED AT RIGHT
ANGLES, FROM THE EAST RIGHT OF WAY LINE OF DINAH SHORE DRIVE, AS SHOWN
ON SAID PARCEL MAP NO. 36792; THENCE LEAVING SAID SOUTH LINE AND ALONG
SAID PARALLEL LINE, NORTH 0°00’00” EAST 31711 FEET; THENCE NORTH 90°00’00”
EAST 65.55 FEET TO A LINE THAT IS PARALLEL WITH AND DISTANT WESTERLY 7.00
FEET, MEASURED AT RIGHT ANGLES FROM THE WEST LINE OF SAID PARCEL 8;
THENCE NORTH 0°00’00” EAST 102.00 FEET ALONG LAST SAID PARALLEL LINE TO
A LINE THAT IS PARALLEL WITH AND DISTANT NORTHERLY 1,00 FEET; MEASURED
AT RIGHT ANGLES, FROM THE NORTH LINE OF SAID PARCEL 8; THENCE NORTH
90°00’00” EAST 275.69 FEET ALONG LAST SAID PARALLEL LINE TO AN
INTERSECTION WITH THE NORTHWESTERLY PROLONGATION OF THE
NORTHEASTERLY LINE OF SAID PARCEL 8; THENCE SOUTH 68°15’29” EAST 409,78
FEET ALONG SAID NORTHWESTERLY PROLONGATION AND SAID
NORTHEASTERLY LINE OF PARCEL 8 TO A TANGENT CURVE, CONCAVE
SOUTHWESTERLY HAVING A RADIUS OF 1445.00 FEET; THENCE SOUTHEASTERLY
ALONG SAID CURVE AND SAID NORTHEASTERLY LINE OF PARCEL 8 AN ARC
LENGTH OF 535.73 FEET, THROUGH A CENTRAL ANGLE OF 21°14’32” TO A NON-
TANGENT LINE, SAID NON- TANGENT LINE BEING PARALLEL WITH AND DISTANT
WESTERLY 36.00 FEET, MEASURED AT RIGHT ANGLES, FROM THE MOST EASTERLY
LINE OF SAID PARCEL 8; THENCE LEAVING SAID NORTHEASTERLY LINE OF
PARCEL 8, ALONG LAST SAID PARALLEL LINE, SOUTH 07°03’09” EAST 105.97 FEET
TO A POINT ON THE SOUTHEASTERLY LINE OF SAID PARCEL 8, BEING A NON-
TANGENT CURVE, CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 73.00 FEET,
A RADIAL LINE TO SAID POINT BEARS NORTH 36°36’07” WEST; THENCE ALONG THE
SOUTHEASTERLY LINE OF SAID PARCEL 8 THE FOLLOWING FIVE (5) COURSES,.
SOUTHERLY ALONG SAID NON-TANGENT CURVE AN ARC LENGTH OF 28.61 FEET,
THROUGH A CENTRAL ANGLE OF 22°27’11” TO THE BEGINNING OF A REVERSE
CURVE, CONCAVE NORTHWESTERLY HAVING A RADIUS OF 60.00 FEET; A LINE
RADIAL TO SAID BEGINNING OF CURVE BEARS SOUTH 59°03’18” EAST; THENCE
SOUTHWESTERLY LONG LAST SAID CURVE AN ARC LENGTH OF 38.39 FEET
THROUGH A CENTRAL ANGLE OF 36°39’18” TO THE BEGINNING OF A REVERSE
CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 336.00 FEET; A LINE
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RADIAL TO LAST SAID BEGINNING OF CURVE BEARS NORTH 22°24’00” WEST;
THENCE SOUTHEASTERLY ALONG LAST SAID CURVE AN ARC LENGTH OF 120.80
FEET; THROUGH A CENTRAL ANGLE OF 20°36’00”; THENCE SOUTH 47°00’00” WEST
102.69 FEET; THENCE NORTH 89°13’34” WEST 25.84 FEET TO THE BEGINNING OF A
NON-TANGENT CURVE, CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 1075.00
FEET, A LINE RADIAL TO SAID BE-GINNING OF CURVE BEARS NORTH 44°07’38”
EAST; THENCE ALONG THE SOUTHERLY LINE OF SAID PARCEL 8 THE FOLLOWING
TWO (2) COURSES NORTHWESTERLY ALONG LAST SAID CURVE AN ARC LENGTH
OF 829.14 FEET; THROUGH A CENTRAL ANGLE OF 44°11’30”; THENCE SOUTH
89°56’08” WEST 112.85 FEET TO SAID SOUTHWEST CORNER OF PARCEL 8 AND THE
POINT OF BEGINNING.
Page 314 of 855
EXHIBIT A-1
LEGAL DESCRIPTION OF PHASE I PARCEL
Page 315 of 855
EXHIBIT A-2
LEGAL DESCRIPTION OF PHASE II PARCEL
Page 316 of 855
EXHIBIT A-3
LEGAL DESCRIPTION OF PARCEL 9
Page 317 of 855
EXHIBIT B-1
PHASE II EASEMENT
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B-1-8
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B-1-9
P6401-0001\2940216v1.doc
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B-1-10
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Page 321 of 855
B-1-11
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B-1-12
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B-1-13
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B-1-14
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Page 325 of 855
B-1-15
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Page 326 of 855
B-1-16
P6401-0001\2940216v1.doc
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B-1-17
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Page 328 of 855
B-1-18
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Page 329 of 855
B-1-19
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B-1-20
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Page 331 of 855
EXHIBIT B-2
PARCEL 9 EASEMENT
Page 332 of 855
B-2-22
P6401-0001\2940216v1.doc
Page 333 of 855
B-2-23
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Page 334 of 855
B-2-24
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B-2-25
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B-2-26
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B-2-27
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B-2-28
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B-2-29
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B-2-30
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Page 341 of 855
EXHIBIT B-3
MAINTENANCE EASEMENT
Page 342 of 855
B-3-32
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B-3-33
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EXHIBIT C
FORM OF GRANT DEED
Recording Requested By:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attention: Housing Division
AFTER RECORDATION MAIL TO AND
MAIL TAX STATEMENTS TO:
_____________________________
100 Pacifica, Suite 203
Irvine, CA 92618
Attn: President
_______________ _______________________________________________________
SPACE ABOVE THIS LINE FOR RECORDER’S USE
APN# ________________
THE UNDERSIGNED GRANTOR(S) DECLARE(S):
Documentary Transfer Tax is $___________City Transfer Tax is $0
computed on full value of property conveyed, or
computed on full value less value of liens and/or encumbrances remaining at time of sale,
Unincorporated Area [___], County of Riverside
EXEMPT FROM BUILDING HOMES AND JOBS ACTS FEE PER GOVERNMENT CODE
27388.1(a)(2)
GRANT DEED
For valuable consideration, the receipt of which is hereby acknowledged,
City of Palm Desert, a municipal corporation (herein called “Grantor”) grants to
________________________, a California limited partnership (herein called “Grantee”), the real
property located at __________________________ in the City of Palm Desert, CA (the
“Property”), as legally described in the document attached hereto, labeled Exhibit A, and
incorporated herein by this reference, together with all of Grantor’s right, title and interest in and
to all easements, privileges and rights appurtenant to the Property, subject to (a) all non-delinquent
real property taxes, (b) all non-delinquent special assessments, if any, (c) all other liens, leases,
easements, encumbrances, covenants, conditions, restrictions and other matters of record, and
(d) all matters affecting the status of title that would be revealed by an accurate survey of the
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subject property. Grantor disclaims any and all express or implied warranties regarding the
Property other than the implied warranties stated in Section 1113 of the California Civil Code.
1. The Property is conveyed subject to the Amended and Restated Disposition,
Development and Loan Agreement dated in April, 2024, by and between Grantor and Palm
Communities, predecessor in interest to Grantee, (the “Agreement”). The Agreement shall apply
to this Grant Deed only until the termination of the Agreement by its terms and thereafter shall
have no further force or effect by reference in this Grant Deed.
2. Grantee herein covenants by and for itself, its successors and assigns that there shall
be no discrimination against or segregation of a person or of a group of persons on account of race,
color, religion, creed, national origin, ancestry, disability (actual or perceived), medical condition,
age, source of income, familial status, marital status, domestic partner status, sex, sexual
preference/orientation, Acquired Immune Deficiency Syndrome (AIDS) – acquired or perceived,
or any additional basis listed in subdivision (a) or (d) of Section 12955 of the Government Code,
as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, as such provisions
may be amended from time to time, in the sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the Property herein conveyed nor shall the Grantee or any person claiming under or
through the Grantee establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, vendees, or employees in the Property herein conveyed. The foregoing
covenant shall run with the land.
All deeds, leases or other real property conveyance contracts entered into by the Grantee
on or after the date of this Grant Deed as to any portion of the Property shall contain the following
language:
(a) In Deeds:
“Grantee herein covenants by and for itself, its successors and assigns that there
shall be no discrimination against or segregation of a person or of a group of persons
on account of race, color, religion, creed, national origin, ancestry, disability (actual
or perceived), medical condition, age, source of income, familial status, marital
status, domestic partner status, sex, sexual preference/orientation, Acquired
Immune Deficiency Syndrome (AIDS) – acquired or perceived, or any additional
basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as
those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph
(1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government
Code, as such provisions may be amended from time to time, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the property herein
conveyed nor shall the grantee or any person claiming under or through the grantee
establish or permit any such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees, vendees, or employees in the property herein
conveyed. The foregoing covenant shall run with the land.”
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(b) In Leases:
“The lessee herein covenants by and for the lessee and lessee’s heirs, personal
representatives and assigns and all persons claiming under or through the lessee
that his lease is made subject to the condition that there shall be no discrimination
against or segregation of any person or of a group of persons on account of race,
color, religion, creed, national origin, ancestry, disability (actual or perceived),
medical condition, age, source of income, familial status, marital status, domestic
partner status, sex, sexual preference/orientation, Acquired Immune Deficiency
Syndrome (AIDS) – acquired or perceived, or any additional basis listed in
subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are
defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, as
such provisions may be amended from time to time, in the leasing, subleasing,
transferring, use, occupancy, tenure or enjoyment of the land herein leased nor shall
the lessee or any person claiming under or through the lessee establish or permit
any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, sublessees,
subtenants, vendees, or employees in the land herein leased.”
(c) In Contracts:
“There shall be no discrimination against or segregation of any person or group of
persons on account of race, color, religion, creed, national origin, ancestry,
disability (actual or perceived), medical condition, age, source of income, familial
status, marital status, domestic partner status, sex, sexual preference/orientation,
Acquired Immune Deficiency Syndrome (AIDS) – acquired or perceived, or any
additional basis listed in subdivision (a) or (d) of Section 12955 of the Government
Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code, as such provisions may be amended from time to time, in the
sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property
nor shall the transferee or any person claiming under or through the transferee
establish or permit any such practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees, vendees, or employees of the land.”
3. The covenants contained in this Grant Deed shall be construed as covenants running
with the land.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Grantor has caused this Grant Deed to be executed by its
duly authorized representative.
Executed as of the __ day of _______________, 202_
CITY
CITY OF PALM DESERT
a municipal corporation
By: __________________________
Mayor
ATTEST:
By: __________________________
_____________, City Clerk
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EXHIBIT A
LEGAL DESCRIPTION OF LAND
THE LAND IN THE CITY OF PALM DESERT, IN THE COUNTY OF RIVERSIDE, STATE
OF CALIFORNIA, DESCRIBED AS FOLLOWS:
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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
County of
On 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.
(Seal)
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EXHIBIT D
FORMS OF DENSITY BONUS AGREEMENTS
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Exhibit D-1
Form of Density Bonus Agreement for Phase I
RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: _________________
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
This Document is recorded for the benefit of the City of Palm Desert and is exempt
from recording fees pursuant to Sections 6103, 27383 and 27388.1
of the California Government Code.
HOUSING AGREEMENT
(Density Bonus Agreement; Phase I)
by and between
the CITY OF PALM DESERT,
and
__________________________
DATED AS OF _________ ____, 202__
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HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the “Agreement”) is dated as of ______________ ___, 202__,
and is by and between the CITY OF PALM DESERT, a municipal corporation (the “City”), and
____________________________ (the “Owner”). City and Owner are sometimes referred to
herein individually as a “Party” and collectively as “Parties”.
RECITALS
This Agreement is predicated upon the following facts:
A. The Owner is the owner of the land described in “Exhibit A” attached hereto (the
“Property”).
B. The City, the Palm Desert Housing Authority (“Authority”) and Owner have
entered into that certain Amended and Restated Disposition, Development and Loan Agreement
dated in April, 2024 (“DDLA”), pursuant to which the City conveyed the Property to the Owner
for the development described in the DDLA (“Development” or “Apartment Community”) and
the Authority made a loan to Owner for the purchase price of the Property (“Authority Loan”).
Capitalized terms used but not defined herein shall have the meaning set forth in the DDLA.
C. Pursuant to the DDLA, the Owner executed a Promissory Note in favor of
Authority and a deed of trust in favor of Authority securing such Promissory Note and the
Authority is obligated to make disbursements of loan proceeds subject to and in accordance with
the DDLA.
D. Additionally, Owner has applied for and obtained a density bonus from the City for
the Development which permits greater density and less parking that would otherwise be required,
and in exchange, City also requires that the apartment units be so restricted of record, and that such
restrictions not be subordinate or subordinated to any deeds of trust or other consensual liens.
E. This Agreement is that density bonus restrictions agreement.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City and the Owner hereby agree as follows:
ARTICLE 1. DEFINITIONS AND INTERPRETATION.
1.1 Definitions.
Capitalized terms used herein shall have the following meanings unless the context in
which they are used clearly requires otherwise.
“Affordable Units” shall mean twelve (12) of the units in the Apartment Community
available to and occupied by, or held vacant for occupancy only by, Very Low Income Households
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and rented at an Affordable Rent. The Affordable Units will include the number of bedrooms
shown on the following table:
Bedroom
Size
Very Low
Income
Household
Units
One 2
Two 7
Three 3
Total: 12
“Affordable Rent” shall mean rent for an Affordable Unit, including a Reasonable Utility
Allowance, determined pursuant to California Health and Safety Code Section 50053(b) and the
state regulations adopted by the California Department of Housing and Community Development
(“HCD”) pursuant thereto, as amended from time to time, based upon the AMI adjusted for a
Household Size Appropriate to the Affordable Unit. More specifically, the maximum monthly
Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%)
of fifty percent (50%) of the AMI, adjusted for a Household Size Appropriate to the Affordable
Unit, divided by twelve.
“AMI” shall mean the area median income for Riverside County as published by the
California Department of Housing and Community Development pursuant to Health and Safety
Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state
regulations adopted pursuant to California Health and Safety Code Section 50052.5.
“Household Size Appropriate to the Affordable Unit” in the absence of pertinent federal
statutes or regulations applicable to the Apartment Community, shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h), as amended from time to time.
“Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a
tenant (not including telephone, internet or cable service) utilizing the utility allowance schedule
published annually by the Housing Authority of the County of Riverside.
“Required Covenant Period” shall mean the period commencing on the date all units in
the Apartment Community have been completed as evidenced by the City’s issuance of a final
Certificate of Occupancy for the Apartment Community, and ending as of the fifty-fifth (55th)
anniversary thereof.
“Very Low Income Household” shall mean persons and families who meet the fifty
percent (50%) or less of AMI income qualification limits set forth in California Health and Safety
Code Section 50105 and Title 25 of the California Code of Regulations, including Section 6910,
as such statute and regulations are amended from time to time.
1.2 Rules of Construction.
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1.2.1 The singular form of any word used herein, including the terms defined herein shall
include the plural and vice versa. The use herein of a word of any gender shall include correlative
words of all genders.
1.2.2 Unless otherwise specified, references to articles, sections, and other subdivisions
of this Agreement are to the designated articles, sections, and other subdivisions of this Agreement
as originally executed. The words “hereof,” “herein,” “hereunder,” and words of similar import
shall refer to this Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to effectuate the purposes
set forth in this Agreement and to sustain the validity hereof.
1.2.4 Headings or titles of the several articles and sections hereof and the table of contents
appended to copies hereof shall be solely for convenience of reference and shall not affect the
meaning, construction, or effect of the provisions hereof.
ARTICLE 2. ONGOING APARTMENT COMMUNITY OBLIGATIONS.
2.1 Apartment Community and Affordable Units.
The Owner shall develop and construct the Apartment Community on the Property in conformity
with the DDLA. Thereafter, during the Required Covenant Period, the Owner agrees that not less
than twelve (12) units in the Apartment Community shall be Affordable Units under this
Agreement, meaning that such units shall be continually available to and occupied by, or held
vacant for occupancy only by, Very Low Income Households. All of the rental units in the
Apartment Community shall be similarly constructed and all of the Affordable Units shall be
generally constructed at the same time as those units which are available to other tenants, and
distributed in terms of location throughout the Apartment Community. The Affordable Units shall
be of comparable quality to those rental units in the Apartment Community which are available to
other tenants. The Owner agrees that, to the extent commercially reasonable, Affordable Units
will not be underutilized. No persons shall be permitted to occupy any Affordable Unit in excess
of applicable limit of maximum occupancy set by the City’s Municipal Code and the laws of the
State of California.
2.2 Residential Rental Property.
The Owner covenants to operate the Apartment Community as residential rental property. During
the Required Covenant Period, the Affordable Units will be held and used for the purpose of
providing residential living, and the Owner shall own, manage and operate, or cause the
management and operation of, the Apartment Community to provide such affordable rental
housing. All of the rental units in the Apartment Community with the exception of one (1) manager
unit will be available for rental on a continuous basis to members of the general public and the
Owner will not give preference to any particular class or group in renting the units in the Apartment
Community, except as required under this Agreement. The Owner shall not convert any Affordable
Unit(s) to condominiums or cooperative ownership or sell condominium or cooperative conversion
rights to any Affordable Unit(s) during the term of this Agreement.
2.3 Very Low Income Households.
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2.3.1 Income Qualification; Initial Certification. Subject to the applicable provisions
hereof, throughout the Required Covenant Period, the Affordable Units restricted by this
Agreement will be exclusively occupied by, or available for occupancy only by Very Low Income
Households on a continuous basis. Prior to the rental or lease of an Affordable Unit and in
accordance with Section 2.6 hereof, the Owner will obtain and maintain on file a Household
Income Certification (“Income Certification”) substantially in the form attached hereto as Exhibit
“B” and incorporated herein by this reference for each Very Low Income Household, and shall
provide copies of same to the City at such times as the City may, from time to time, reasonably
require. In addition, the Owner will provide such further information as may reasonably be
required in the future by the City. The Income Certification shall be dated immediately prior to
the applicable household’s initial occupancy of an Affordable Unit. The Owner shall make a good
faith effort to verify that the income provided by an applicant in an Income Certification is accurate
by taking any one or more of the following steps as part of the verification process for all household
members over the age of eighteen (18) as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods;
• Obtain a true copy of an income tax return for the most recent tax year in which a return
was filed;
(ii) Obtain an income verification form from the household member’s current
employer;
(iii) Obtain an income verification form from the Social Security Administration
and/or the State Department of Social Services, or its equivalent, if the household member receives
assistance from either of those agencies;
(iv) If the household member is unemployed and has no tax return, obtain
another form of independent verification; or
(v) Obtain such other documentation as may be reasonably acceptable pursuant
to Title 25 of the California Code of Regulations, as amended from time to time, to verify income.
2.3.2 Certificate of Continuing Program Compliance; Annual Report. Throughout the
Required Covenant Period, the Owner will prepare and submit to the City, at such periodic
frequency as the City might reasonably require, but not more than once annually, a Certificate of
Continuing Compliance in substantially the form attached hereto as Exhibit “C” and incorporated
herein by this reference, and executed by the Owner. The Owner will also prepare and submit to
the City on or before each anniversary date of the commencement of the Required Covenant
Period, and for the preceding calendar year, a report in form and substance reasonably satisfactory
to the City summarizing the vacancy rate of the Apartment Community, including the number of
Affordable Units held vacant for occupancy by Very Low Income Households for such calendar
year.
2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent shall be
charged to the Very Low Income Household occupants of Affordable Units, as more specifically
described above.
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2.5 Rent Increases. Rents for Affordable Units may be increased not more than once per year
and twelve (12) months must have elapsed since the date of the tenant’s initial occupancy or the
last rent increase. The rents charged following such an increase, or upon a vacancy and new
occupancy by a Very Low Income Household shall not exceed an Affordable Rent. The Owner
shall, consistent with applicable law, give proper written notice to tenants of all rent increases, and
upon written request, provide the City with reasonable detail concerning the amount of and
rationale for such rent increases.
2.6 Income Recertification of Affordable Units. Annually, on the anniversary date of
occupancy of an Affordable Unit by a Very Income Household, the Owner shall obtain and
maintain on file an annual income certification, in form and substance reasonably satisfactory to
the City, from each household occupying an Affordable Unit, based upon the current income of
each household member over the age of eighteen (18). The Owner shall make a good faith effort
to verify that the income provided by the household is accurate in accordance with Section 2.3.1,
above.
2.6.1 A rental unit occupied by a household that qualifies as a Very Low Income
Household at the time the household first occupies an Affordable Unit shall be deemed to continue
to be so occupied until a recertification of such household’s income demonstrates that such
household no longer qualifies as a Very Low Income Household. At such time as a household
ceases to qualify as a Very Low Income Household based on income recertification, the Owner
shall designate the next available unit (one that is not occupied by a tenant) with the same number
of bedrooms as the occupied Affordable Unit and it shall be leased to a Very Low Income
Household, so that the number of Affordable Units occupied by or reserved for occupancy by Very
Low Income Households will remain constant. For purposes of this Agreement, such designated
unit will be considered an Affordable Unit if it is held vacant and available solely for occupancy
by a Very Low Income Household and, upon occupancy, the income eligibility of the household
as a Very Low Income Household is verified and the unit is rented at Affordable Rent.
2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit to a
Very Low Income Household, the Owner shall require the tenant to execute a written lease or
occupancy agreement. The Owner shall maintain on file throughout the Required Covenant Period
and for a four (4) year period thereafter, the executed lease or occupancy agreement of each tenant
occupying an Affordable Unit. The form of lease or occupancy agreement used by the Owner for
the lease or rental of Affordable Units shall be that which is reasonable and customary in residential
leasing. In addition, each lease or occupancy agreement for an Affordable Unit shall (i) provide
that the tenants of such Affordable Unit shall be subject to annual recertification of income and
subject to rental increases in accordance with Sections 2.5 and 2.6 of this Agreement, and (ii)
contain a provision to the effect that the Owner has relied on the income certification and
supporting information supplied by the tenant in determining qualification for occupancy of the
Affordable Unit, and that any material misstatement in such certification (whether or not
intentional) may be cause for immediate termination of such lease or occupancy agreement.
2.7.1 The Owner shall refrain from restricting the rental or lease of Affordable Units on
the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any
person.
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2.7.2 The covenants established herein shall, without regard to technical classification
and designation, be binding for the benefit and in favor of the City, and its successors and assigns,
and shall burden and run with the Property.
2.7.3 The City is deemed to be the beneficiary of the terms and provisions of the
covenants herein, both for and in its own right and for the purposes of protecting the interests of
the community and other parties, public or private, for whose benefit these covenants running with
the land have been provided.
2.8 Security Deposits. The Owner may require security deposits on Affordable Units in
amounts which are consistent with applicable law.
2.9 Additional Information; Books and Records. The Owner shall provide any additional
information concerning the Affordable Units reasonably requested by the City. The Owner will
maintain complete and accurate records pertaining to the Affordable Units throughout the
Covenant Period and for a four (4) year period thereafter. The City shall have the right upon
written notice of no less than two (2) business days to the Owner, at any time during normal
business hours of 9:00 am to 5:00 pm, to examine of all books, records or other documents
maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit,
including all executed leases or occupancy agreements and all Income Certifications, and obtain
copies of any requested executed leases, occupancy agreements and Income Certifications within
ten (10) business days following such examination and the City’s written request.
2.10 Specific Performance. The Owner hereby agrees that specific enforcement of the Owner’s
agreement to comply with the allowable rent and occupancy restrictions and covenants contained
herein is one of the reasons and consideration for the City having granted a density bonus and that,
in the event of the Owner’s breach of such requirements, potential monetary damages to the City,
as well as to existing and prospective Very Low Income Households, would be difficult, if not
impossible, to evaluate and quantify. Therefore, in addition to any other relief to which the City
may be entitled as a consequence of the breach hereof, the Owner agrees to the imposition of the
remedy of specific performance against it in the case of any event of default by the Owner in
complying with any provision of this Agreement beyond any applicable notice and cure period.
2.11 Audit. The City shall have the right to perform an audit of the Apartment Community to
determine compliance with the provisions of this Agreement. Such audit shall not be undertaken
more often than once each calendar year. All costs and expenses associated with the audit shall
be paid by the Owner.
2.12 Management. The Owner and/or the management agent (if not the Owner) shall operate
the Apartment Community in a manner that will provide decent, safe and sanitary residential
facilities to the occupants thereof, and will comply with provisions of this Agreement. Upon the
written request of the City, the Owner shall cooperate with the City in the periodic review (but not
more than once each calendar year) of the management practices and financial status of the
Affordable Units. The purpose of each periodic review will be to enable the City to determine if
the Affordable Units are being operated and managed in accordance with the requirements and
standards of this Agreement. Results of such City review shall be provided to the Owner, and the
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City shall have the authority to require the Owner to make modifications that are reasonably
necessary to ensure the objectives of this Agreement are met.
2.13 Binding for Term. It is intended by the Parties that except as may be otherwise expressly
provided herein, the provisions of this Agreement shall apply to the Apartment Community
throughout the entire term hereof, as established in Section 3.1 below.
ARTICLE 3. TERM AND RECORDATION.
3.1 Term of Agreement. This Agreement shall remain in full force and effect for the Required
Covenant Period, unless the Owner and the City agree, in writing, to terminate this Agreement
prior to the expiration of the Required Covenant Period. Unless terminated earlier pursuant to the
prior sentence of this Section 3.1, or Section 3.3 below, the Parties intend that the provisions and
effect of this Agreement and specifically of Article 2 hereof, shall remain in full force and effect
for the entire Required Covenant Period.
3.2 Agreement to Record. The Owner represents, warrants, and covenants that this Agreement
will be recorded in the real property records of Riverside County.
3.2 Suspension of Restrictions. Notwithstanding the generality of the foregoing provisions of
this Article 3 or any other provisions hereof, this Agreement and all of the terms and restrictions
contained herein shall be suspended for any period of involuntary noncompliance as a result of
unforeseen events such as fire or act of God which leaves the entire Apartment Community
uninhabitable (and the proceeds of insurance available to the Owner as a result thereof are
insufficient to reconstruct the Apartment Community), or a change in a federal or state law or an
action by the federal government, the State or a court of competent jurisdiction, after the date of
recordation hereof, that prevents the City from enforcing the provisions of this Agreement, or a
condemnation or a similar event.
ARTICLE 4. DEFAULT; REMEDIES.
4.1 An Event of Default. Each of the following shall constitute an “Event of Default” by the
Owner under this Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any of the
conditions, terms, or covenants of any agreement with the City concerning the Apartment
Community, or of this Agreement, if such failure remains uncured thirty (30) days after written
notice of such failure from the City to the Owner in the manner provided herein or, with respect to
a default that cannot be cured within thirty (30) days, if the Owner fails to commence such cure
within such thirty (30) day period or thereafter fails to diligently and continuously proceed with
such cure to completion. However, if a different period or notice requirement is specified under
any other section of this Agreement, then the specific provision shall control.
4.1.2 Any representation or warranty contained in this Agreement or in any application,
financial statement, certificate, or report submitted by the Owner to the City proves to have been
incorrect in any material respect when made.
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4.1.3 A court having jurisdiction shall have made or rendered a decree or order: (i)
adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition seeking
reorganization of the Owner or seeking any arrangement on behalf of the Owner under the
bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any
state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner
in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or
liquidation of the Owner, providing, however, that any such decree or order described in any of
the foregoing subsections shall have continued unstayed or undischarged for a period of ninety
(90) days.
4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or suffered
a sequestration or attachment or execution on any substantial part of its property, unless the
property so assigned, sequestered, attached, or executed upon shall have been returned or released
within ninety (90) days after such event (unless a lesser time period is permitted for cure hereunder)
or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner is diligently
working to obtain a return or release of the property and the City’s interests hereunder are not
imminently threatened in its reasonable business judgment, then the City shall not declare a default
under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or dissolved.
4.1.6 The seizure or appropriation of all or, in the reasonable opinion of the City, a
substantial part of the Apartment Community, except for condemnation initiated by the City or
any governmental agency or authority.
4.1.7 There should occur any default declared by any lender under any loan document or
deed of trust relating to any loan made in connection with the Apartment Community, which loan
is secured by a deed of trust or other instrument affecting the Apartment Community, and such
default remains uncured following the expiration of any applicable cure period.
4.2 City’s Option to Lease. [INTENTIONALLY OMITTED}
4.3 City Remedies. The City shall have the right to mandamus or other suit, action or
proceeding at law or in equity to require the Owner to perform its obligations and covenants under
this Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions
hereof, provided that in any such case the City has first provided the required notice of any alleged
default and the Owner has had the requisite opportunity to cure pursuant to Section 4.1.1, above.
4.4 Action at Law; No Remedy Exclusive. The City may take whatever action at law or in
equity as may be necessary to enforce performance and observance of any obligation, agreement
or covenant of the Owner under this Agreement. No remedy herein conferred upon or reserved by
the City is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law, in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver of such right or power, but any such right or power may be exercised
from time to time and as often as the City may deem expedient. In order to entitle the City to
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exercise any remedy reserved to it in this Agreement, it shall not be necessary to give any notice,
other than such notice as may be herein otherwise expressly required or required by law to be
given.
ARTICLE 5. GENERAL PROVISIONS.
5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in this
Agreement, except in the event of fraud, waste, or illegal acts, or with regard to any indemnity
obligations imposed upon the Owner under the terms of this Agreement, (i) no partner, member,
officer or director, as applicable, of the Owner (each, an “Owner Affiliate”) shall have any direct,
indirect or derivative personal liability for the obligations of the Owner under this Agreement, and
(ii) the City shall not exercise any rights or institute any action against any Owner Affiliate directly,
indirectly or derivatively for the payment of any sum of money that is or may become payable
hereunder.
5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the Apartment
Community in good condition and repair in accordance with the Ground Lease, and shall otherwise
comply with the Ground Lease and all laws, ordinances, rules, regulations, covenants, conditions,
restrictions, and orders of any governmental authority now or hereafter affecting the conduct or
operation of the Apartment Community or any part thereof or requiring any alteration or
improvement to be made thereon. The Owner shall not commit, suffer, or permit any act to be
done in, upon, or to the Apartment Community or any part thereof in violation of any such laws,
ordinances, rules, regulations, or orders. The Owner hereby agrees that the City may conduct from
time to time through representatives, upon reasonable notice of no less than twenty-four (24) hours,
on-site inspections and observation of: (i) the maintenance and repair of the Apartment
Community, including a review of all maintenance and repair programs and practices and all
reports and records pertaining thereto, including records of expenditures relating thereto; and (ii)
such other facilities, practices, and records of the Owner relating to the Affordable Units as the
City reasonably deems to be necessary or appropriate in order to monitor the Owner’s compliance
with the provisions of this Agreement.
5.3 Notices. All notices (other than telephone notices), certificates or other communications
(other than telephone communications) required or permitted hereunder shall be sufficiently given
and should be deemed given when sent by certified mail, postage prepaid, or twenty-four (24)
hours following delivery of such notice to Federal Express or similar commercial carrier for next
business day or overnight delivery, addressed as follows:
If to the City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Housing Division
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If to the Owner
100 Pacifica, Suite 203
Irvine, CA 92618
Attn: President
5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or
understood by any of the Parties, or by any third persons, as creating the relationship of employer
and employee, principal and agent, limited or general partnership, or joint venture between the
City and the Owner or the Owner’s agents, employees or contractors, and the Owner shall at all
times be deemed an independent contractor and shall be wholly responsible for the manner in
which it or its agents, or both, perform the services required of it by the terms of this Agreement
for the operation of the Apartment Community. The Owner has and hereby retains the right to
exercise full control of employment, direction, compensation and discharge of all persons assisting
in the performance of services hereunder. In regards to the on-site operation of the Apartment
Community, the Owner shall be solely responsible for all matters relating to payment of its
employees, including compliance with Social Security, withholding and all other laws and
regulations governing such matters. The Owner agrees to be solely responsible for its own acts
and those of its agents and employees.
5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim against
the City by any person the Owner may have employed or with whom the Owner may have
contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the
performance of any work or services with respect to the operation of the Affordable Units.
5.6 Conflict of Interests. No member, official or employee of the City shall make any decision
relating to this Agreement which affects his or her personal interests or the interests of any
corporation, partnership or association in which he or she is directly or indirectly interested. No
officer or employee of the Owner shall acquire any interest in conflict with or inimical to the
interests of the City.
5.7 Non-Liability of City Officials, Employees and Agents. No member, official, employee or
agent of the City shall be personally liable to the Owner, or any successor in interest, in the event
of any default or breach by the City or for any amount which may become due to the Owner or
successor in connection with this Agreement or on any obligation of the City under the terms of
this Agreement.
5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific provisions
of this Agreement, performance by either Party hereunder that relates to a construction obligation
shall not be deemed to be in default where it is due to an “Unavoidable Delay.” “Unavoidable
Delay” means a delay due to the elements (including unseasonable weather), fire, earthquakes or
other acts of God, strikes, pandemics, labor disputes, lockouts, shortages of construction materials
experienced generally in the construction industry in the local area, acts of the public enemy, riots,
insurrections or governmental regulation of the sale or transportation of materials, supply or labor;
provided, however, that to the extent a delay is caused by any other reason that the Owner
reasonably believes is beyond its control, the Owner may request, on a case-by-case basis, that the
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City excuse any such delay as an Unavoidable Delay and the City shall make its determination as
to whether such delay constitutes an Unavoidable Delay using its reasonable judgment.
5.9 Indemnity. The Owner shall indemnify, defend and hold harmless the City and all officials,
employees and agents of City (with counsel reasonably satisfactory to the City) against any costs,
liabilities, damages or judgments arising from claims or litigation of any nature whatsoever
brought by third parties and directly or indirectly arising from the Owner’s ownership or operation
of the Apartment Community, or the Owner’s performance of its obligations under this Agreement,
and in the event of settlement, compromise or judgment hold the City free and harmless therefrom.
Notwithstanding the foregoing, the indemnity provisions contained in this Section 5.9 shall not
apply with respect to any costs, liabilities, damages or judgments arising directly or indirectly from
the City’s rental of units within the Apartment Community as described in Section 4.2 hereof. The
provisions of this Section 5.9 shall survive the term of this Agreement.
5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this Agreement,
the rights and remedies of the Parties are cumulative, and the exercise or failure to exercise one or
more of such rights or remedies by either Party shall not preclude the exercise by it, at the same
time or different times, of any right or remedy for the same default or any other default by the
other Party. No waiver of any default or breach by the Owner hereunder shall be implied from
any omission by the City to take action on account of such default if such default persists or is
repeated, and no express waiver shall affect any default other than the default specified in the
waiver, and such wavier shall be operative only for the time and to the extent therein stated.
Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of
any subsequent breach of the same covenant, term or condition. The consent or approval by the
City to or of any act by the Owner requiring further consent or approval shall not be deemed to
waive or render unnecessary the consent or approval to or of any subsequent similar act. The
exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of any default
under this Agreement, nor shall it invalidate any act done pursuant to notice of default, or prejudice
the City in the exercise of any right, power, or remedy hereunder or under any agreements ancillary
or related hereto.
5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of
the State of California.
5.12 Severability. If any term, provision, covenant or condition of this Agreement is held in a
final disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall continue in full force and effect unless the rights and obligations of the
Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.
5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce the
terms of this Agreement or to collect damages as a result of any breach thereof, the Party prevailing
in any such action shall be entitled to recover against the Party not prevailing all reasonable
attorneys’ fees and costs incurred in such action (including all legal fees incurred in any appeal or
in any action to enforce any resulting judgment), as awarded by a court of competent jurisdiction.
5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit
of the permitted heirs, administrators, executors, successors in interest and assigns of each of the
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Parties. Any reference in this Agreement to a specifically named Party shall be deemed to apply
to any successor, heir, administrator, executor or assign of such Party who has acquired an interest
in compliance with the terms hereof or under law.
5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.
5.16 Approvals by the City. Any approvals required under this Agreement shall be made by the
City Manager or his or her designee, and shall not be unreasonably withheld, conditioned, delayed
or made, except where it is specifically provided herein that another standard applies, in which
case the specified standard shall apply.
5.17 Complete Understanding of the Parties. This Agreement and the attached Exhibits
constitute the entire understanding and agreement of the Parties with respect to the matters
described herein.
5.18 Covenants to Run With the Land. The Owner hereby subjects the Apartment Community
to the covenants, reservations, and restrictions set forth in this Agreement. The City and the Owner
hereby declare their express intent that the covenants, reservations, and restrictions set forth herein
shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s
successors in title to the Apartment Community; provided, however, that on the termination of this
Agreement said covenants, reservations and restrictions shall expire. Each and every contract,
deed or other instrument hereafter executed covering or conveying the Apartment Community or
any portion thereof shall conclusively be held to have been executed, delivered and accepted
subject to such covenants, reservations and restrictions, regardless of whether such covenants,
reservations and restrictions are set forth in such contract, deed or other instruments. No breach
of any of the provisions of this Agreement shall defeat or render invalid the lien of a mortgage or
deed of trust made in good faith and for value encumbering the Property or any interest of the
Owner therein.
5.19 Burden and Benefit. The City and the Owner hereby declare their understanding and intent
that: (i) the burden of the covenants, reservations, restrictions, and agreements set forth herein
touch and concern the Property and the Apartment Community, in that Owner’s legal interest in
the Apartment Community is rendered less valuable thereby, (ii) the covenants, reservations,
restrictions, and agreements set forth herein directly benefit the Property and the Apartment
Community (a) by enhancing and increasing the enjoyment and use of the Apartment Community
by certain Very Low Income Households, the intended beneficiaries of such covenants,
reservations, restrictions, and agreements, (b) by making possible the obtaining of advantageous
financing for the Property and the Apartment Community, and (c) by furthering the public
purposes advanced by the City, and (iii) the covenants, reservations, restrictions and agreements
set forth herein shall run with the Property and shall be binding for the benefit of and enforceable
by the City and its successors and assigns for the entire Term of this Agreement.
5.20 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original, but all of which shall constitute one and the same instrument.
5.21 Amendments. This Agreement may be amended only by the written agreement of the City
and the Owner.
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WHEREFORE, the undersigned has executed this Agreement as of the date first-above
written.
OWNER:
_____________________________
CITY:
CITY OF PALM DESERT
By: ________________________
Print Name: ___________________
Title: ________________________
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
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EXHIBIT “B”
HOUSEHOLD INCOME CERTIFICATION
(Attached)
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EXHIBIT “C”
CERTIFICATE OF CONTINUING COMPLIANCE
(Attached)
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Exhibit D-1
Form of Density Bonus Agreement for Phase II
RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: _________________
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
This Document is recorded for the benefit of the City of Palm Desert and is exempt
from recording fees pursuant to Sections 6103, 27383 and 27388.1
of the California Government Code.
HOUSING AGREEMENT
(Density Bonus Agreement; Phase II)
by and between
the CITY OF PALM DESERT,
and
__________________________
DATED AS OF _________ ____, 202__
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HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the “Agreement”) is dated as of ______________ ___, 202__,
and is by and between the CITY OF PALM DESERT, a municipal corporation (the “City”), and
____________________________ (the “Owner”). City and Owner are sometimes referred to
herein individually as a “Party” and collectively as “Parties”.
RECITALS
This Agreement is predicated upon the following facts:
A. The Owner is the owner of the land described in “Exhibit A” attached hereto (the
“Property”).
B. The City, the Palm Desert Housing Authority (“Authority”) and Owner have
entered into that certain Amended and Restated Disposition, Development and Loan Agreement
dated in April, 2024 (“DDLA”), pursuant to which the City conveyed the Property to the Owner
for the development described in the DDLA (“Development” or “Apartment Community”) and
the Authority made a loan to Owner for the purchase price of the Property and for construction
costs (“Authority Loan”). Capitalized terms used but not defined herein shall have the meaning set
forth in the DDLA.
C. Pursuant to the DDLA, the Owner executed a Promissory Note in favor of
Authority and a deed of trust in favor of Authority securing such Promissory Note and the
Authority is obligated to make disbursements of loan proceeds subject to and in accordance with
the DDLA.
D. Additionally, Owner has applied for and obtained a density bonus from the City for
the Development which permits greater density and less parking that would otherwise be required,
and in exchange, City also requires that the apartment units be so restricted of record, and that such
restrictions not be subordinate or subordinated to any deeds of trust or other consensual liens.
E. This Agreement is that density bonus restrictions agreement.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City and the Owner hereby agree as follows:
ARTICLE 1. DEFINITIONS AND INTERPRETATION.
1.1 Definitions.
Capitalized terms used herein shall have the following meanings unless the context in
which they are used clearly requires otherwise.
“Affordable Units” shall mean twelve (12) of the units in the Apartment Community
available to and occupied by, or held vacant for occupancy only by, Very Low Income Households
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and rented at an Affordable Rent. The Affordable Units will include the number of bedrooms
shown on the following table:
Bedroom
Size
Very Low
Income
Household
Units
One 2
Two 7
Three 3
Total: 12
“Affordable Rent” shall mean rent for an Affordable Unit, including a Reasonable Utility
Allowance, determined pursuant to California Health and Safety Code Section 50053(b) and the
state regulations adopted by the California Department of Housing and Community Development
(“HCD”) pursuant thereto, as amended from time to time, based upon the AMI adjusted for a
Household Size Appropriate to the Affordable Unit. More specifically, the maximum monthly
Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%)
of fifty percent (50%) of the AMI, adjusted for a Household Size Appropriate to the Affordable
Unit, divided by twelve.
“AMI” shall mean the area median income for Riverside County as published by the
California Department of Housing and Community Development pursuant to Health and Safety
Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state
regulations adopted pursuant to California Health and Safety Code Section 50052.5.
“Household Size Appropriate to the Affordable Unit” in the absence of pertinent federal
statutes or regulations applicable to the Apartment Community, shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h), as amended from time to time.
“Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a
tenant (not including telephone, internet or cable service) utilizing the utility allowance schedule
published annually by the Housing Authority of the County of Riverside.
“Required Covenant Period” shall mean the period commencing on the date all units in
the Apartment Community have been completed as evidenced by the City’s issuance of a final
Certificate of Occupancy for the Apartment Community, and ending as of the fifty-fifth (55th)
anniversary thereof.
“Very Low Income Household” shall mean persons and families who meet the fifty
percent (50%) or less of AMI income qualification limits set forth in California Health and Safety
Code Section 50105 and Title 25 of the California Code of Regulations, including Section 6910,
as such statute and regulations are amended from time to time.
1.2 Rules of Construction.
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1.2.1 The singular form of any word used herein, including the terms defined herein shall
include the plural and vice versa. The use herein of a word of any gender shall include correlative
words of all genders.
1.2.2 Unless otherwise specified, references to articles, sections, and other subdivisions
of this Agreement are to the designated articles, sections, and other subdivisions of this Agreement
as originally executed. The words “hereof,” “herein,” “hereunder,” and words of similar import
shall refer to this Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to effectuate the purposes
set forth in this Agreement and to sustain the validity hereof.
1.2.4 Headings or titles of the several articles and sections hereof and the table of contents
appended to copies hereof shall be solely for convenience of reference and shall not affect the
meaning, construction, or effect of the provisions hereof.
ARTICLE 2. ONGOING APARTMENT COMMUNITY OBLIGATIONS.
2.1 Apartment Community and Affordable Units.
The Owner shall develop and construct the Apartment Community on the Property in
conformity with the DDLA. Thereafter, during the Required Covenant Period, the Owner agrees
that not less than twelve (12) units in the Apartment Community shall be Affordable Units under
this Agreement, meaning that such units shall be continually available to and occupied by, or held
vacant for occupancy only by, Very Low Income Households. All of the rental units in the
Apartment Community shall be similarly constructed and all of the Affordable Units shall be
generally constructed at the same time as those units which are available to other tenants, and
distributed in terms of location throughout the Apartment Community. The Affordable Units shall
be of comparable quality to those rental units in the Apartment Community which are available to
other tenants. The Owner agrees that, to the extent commercially reasonable, Affordable Units
will not be underutilized. No persons shall be permitted to occupy any Affordable Unit in excess
of applicable limit of maximum occupancy set by the City’s Municipal Code and the laws of the
State of California.
2.2 Residential Rental Property.
The Owner covenants to operate the Apartment Community as residential rental property.
During the Required Covenant Period, the Affordable Units will be held and used for the purpose
of providing residential living, and the Owner shall own, manage and operate, or cause the
management and operation of, the Apartment Community to provide such affordable rental
housing. All of the rental units in the Apartment Community with the exception of one (1) manager
unit will be available for rental on a continuous basis to members of the general public and the
Owner will not give preference to any particular class or group in renting the units in the Apartment
Community, except as required under this Agreement. The Owner shall not convert any Affordable
Unit(s) to condominiums or cooperative ownership or sell condominium or cooperative conversion
rights to any Affordable Unit(s) during the term of this Agreement.
2.3 Very Low Income Households.
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2.3.1 Income Qualification; Initial Certification. Subject to the applicable provisions
hereof, throughout the Required Covenant Period, the Affordable Units restricted by this
Agreement will be exclusively occupied by, or available for occupancy only by Very Low Income
Households on a continuous basis. Prior to the rental or lease of an Affordable Unit and in
accordance with Section 2.6 hereof, the Owner will obtain and maintain on file a Household
Income Certification (“Income Certification”) substantially in the form attached hereto as Exhibit
“B” and incorporated herein by this reference for each Very Low Income Household, and shall
provide copies of same to the City at such times as the City may, from time to time, reasonably
require. In addition, the Owner will provide such further information as may reasonably be
required in the future by the City. The Income Certification shall be dated immediately prior to
the applicable household’s initial occupancy of an Affordable Unit. The Owner shall make a good
faith effort to verify that the income provided by an applicant in an Income Certification is accurate
by taking any one or more of the following steps as part of the verification process for all household
members over the age of eighteen (18) as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods;
• Obtain a true copy of an income tax return for the most recent tax year in which a return
was filed;
(ii) Obtain an income verification form from the household member’s current
employer;
(iii) Obtain an income verification form from the Social Security Administration
and/or the State Department of Social Services, or its equivalent, if the household member receives
assistance from either of those agencies;
(iv) If the household member is unemployed and has no tax return, obtain
another form of independent verification; or
(v) Obtain such other documentation as may be reasonably acceptable pursuant
to Title 25 of the California Code of Regulations, as amended from time to time, to verify income.
2.3.2 Certificate of Continuing Program Compliance; Annual Report. Throughout the
Required Covenant Period, the Owner will prepare and submit to the City, at such periodic
frequency as the City might reasonably require, but not more than once annually, a Certificate of
Continuing Compliance in substantially the form attached hereto as Exhibit “C” and incorporated
herein by this reference, and executed by the Owner. The Owner will also prepare and submit to
the City on or before each anniversary date of the commencement of the Required Covenant
Period, and for the preceding calendar year, a report in form and substance reasonably satisfactory
to the City summarizing the vacancy rate of the Apartment Community, including the number of
Affordable Units held vacant for occupancy by Very Low Income Households for such calendar
year.
2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent shall be
charged to the Very Low Income Household occupants of Affordable Units, as more specifically
described above.
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2.5 Rent Increases. Rents for Affordable Units may be increased not more than once per year
and twelve (12) months must have elapsed since the date of the tenant’s initial occupancy or the
last rent increase. The rents charged following such an increase, or upon a vacancy and new
occupancy by a Very Low Income Household shall not exceed an Affordable Rent. The Owner
shall, consistent with applicable law, give proper written notice to tenants of all rent increases, and
upon written request, provide the City with reasonable detail concerning the amount of and
rationale for such rent increases.
2.6 Income Recertification of Affordable Units. Annually, on the anniversary date of
occupancy of an Affordable Unit by a Very Income Household, the Owner shall obtain and
maintain on file an annual income certification, in form and substance reasonably satisfactory to
the City, from each household occupying an Affordable Unit, based upon the current income of
each household member over the age of eighteen (18). The Owner shall make a good faith effort
to verify that the income provided by the household is accurate in accordance with Section 2.3.1,
above.
2.6.1 A rental unit occupied by a household that qualifies as a Very Low Income
Household at the time the household first occupies an Affordable Unit shall be deemed to continue
to be so occupied until a recertification of such household’s income demonstrates that such
household no longer qualifies as a Very Low Income Household. At such time as a household
ceases to qualify as a Very Low Income Household based on income recertification, the Owner
shall designate the next available unit (one that is not occupied by a tenant) with the same number
of bedrooms as the occupied Affordable Unit and it shall be leased to a Very Low Income
Household, so that the number of Affordable Units occupied by or reserved for occupancy by Very
Low Income Households will remain constant. For purposes of this Agreement, such designated
unit will be considered an Affordable Unit if it is held vacant and available solely for occupancy
by a Very Low Income Household and, upon occupancy, the income eligibility of the household
as a Very Low Income Household is verified and the unit is rented at Affordable Rent.
2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit to a
Very Low Income Household, the Owner shall require the tenant to execute a written lease or
occupancy agreement. The Owner shall maintain on file throughout the Required Covenant Period
and for a four (4) year period thereafter, the executed lease or occupancy agreement of each tenant
occupying an Affordable Unit. The form of lease or occupancy agreement used by the Owner for
the lease or rental of Affordable Units shall be that which is reasonable and customary in residential
leasing. In addition, each lease or occupancy agreement for an Affordable Unit shall (i) provide
that the tenants of such Affordable Unit shall be subject to annual recertification of income and
subject to rental increases in accordance with Sections 2.5 and 2.6 of this Agreement, and (ii)
contain a provision to the effect that the Owner has relied on the income certification and
supporting information supplied by the tenant in determining qualification for occupancy of the
Affordable Unit, and that any material misstatement in such certification (whether or not
intentional) may be cause for immediate termination of such lease or occupancy agreement.
2.7.1 The Owner shall refrain from restricting the rental or lease of Affordable Units on
the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any
person.
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2.7.2 The covenants established herein shall, without regard to technical classification
and designation, be binding for the benefit and in favor of the City, and its successors and assigns,
and shall burden and run with the Property.
2.7.3 The City is deemed to be the beneficiary of the terms and provisions of the
covenants herein, both for and in its own right and for the purposes of protecting the interests of
the community and other parties, public or private, for whose benefit these covenants running with
the land have been provided.
2.8 Security Deposits. The Owner may require security deposits on Affordable Units in
amounts which are consistent with applicable law.
2.9 Additional Information; Books and Records. The Owner shall provide any additional
information concerning the Affordable Units reasonably requested by the City. The Owner will
maintain complete and accurate records pertaining to the Affordable Units throughout the
Covenant Period and for a four (4) year period thereafter. The City shall have the right upon
written notice of no less than two (2) business days to the Owner, at any time during normal
business hours of 9:00 am to 5:00 pm, to examine of all books, records or other documents
maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit,
including all executed leases or occupancy agreements and all Income Certifications, and obtain
copies of any requested executed leases, occupancy agreements and Income Certifications within
ten (10) business days following such examination and the City’s written request.
2.10 Specific Performance. The Owner hereby agrees that specific enforcement of the Owner’s
agreement to comply with the allowable rent and occupancy restrictions and covenants contained
herein is one of the reasons and consideration for the City having granted a density bonus and that,
in the event of the Owner’s breach of such requirements, potential monetary damages to the City,
as well as to existing and prospective Very Low Income Households, would be difficult, if not
impossible, to evaluate and quantify. Therefore, in addition to any other relief to which the City
may be entitled as a consequence of the breach hereof, the Owner agrees to the imposition of the
remedy of specific performance against it in the case of any event of default by the Owner in
complying with any provision of this Agreement beyond any applicable notice and cure period.
2.11 Audit. The City shall have the right to perform an audit of the Apartment Community to
determine compliance with the provisions of this Agreement. Such audit shall not be undertaken
more often than once each calendar year. All costs and expenses associated with the audit shall
be paid by the Owner.
2.12 Management. The Owner and/or the management agent (if not the Owner) shall operate
the Apartment Community in a manner that will provide decent, safe and sanitary residential
facilities to the occupants thereof, and will comply with provisions of this Agreement. Upon the
written request of the City, the Owner shall cooperate with the City in the periodic review (but not
more than once each calendar year) of the management practices and financial status of the
Affordable Units. The purpose of each periodic review will be to enable the City to determine if
the Affordable Units are being operated and managed in accordance with the requirements and
standards of this Agreement. Results of such City review shall be provided to the Owner, and the
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City shall have the authority to require the Owner to make modifications that are reasonably
necessary to ensure the objectives of this Agreement are met.
2.13 Binding for Term. It is intended by the Parties that except as may be otherwise expressly
provided herein, the provisions of this Agreement shall apply to the Apartment Community
throughout the entire term hereof, as established in Section 3.1 below.
ARTICLE 3. TERM AND RECORDATION.
3.1 Term of Agreement. This Agreement shall remain in full force and effect for the Required
Covenant Period, unless the Owner and the City agree, in writing, to terminate this Agreement
prior to the expiration of the Required Covenant Period. Unless terminated earlier pursuant to the
prior sentence of this Section 3.1, or Section 3.3 below, the Parties intend that the provisions and
effect of this Agreement and specifically of Article 2 hereof, shall remain in full force and effect
for the entire Required Covenant Period.
3.2 Agreement to Record. The Owner represents, warrants, and covenants that this Agreement
will be recorded in the real property records of Riverside County.
3.2 Suspension of Restrictions. Notwithstanding the generality of the foregoing provisions of
this Article 3 or any other provisions hereof, this Agreement and all of the terms and restrictions
contained herein shall be suspended for any period of involuntary noncompliance as a result of
unforeseen events such as fire or act of God which leaves the entire Apartment Community
uninhabitable (and the proceeds of insurance available to the Owner as a result thereof are
insufficient to reconstruct the Apartment Community), or a change in a federal or state law or an
action by the federal government, the State or a court of competent jurisdiction, after the date of
recordation hereof, that prevents the City from enforcing the provisions of this Agreement, or a
condemnation or a similar event.
ARTICLE 4. DEFAULT; REMEDIES.
4.1 An Event of Default. Each of the following shall constitute an “Event of Default” by the
Owner under this Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any of the
conditions, terms, or covenants of any agreement with the City concerning the Apartment
Community, or of this Agreement, if such failure remains uncured thirty (30) days after written
notice of such failure from the City to the Owner in the manner provided herein or, with respect to
a default that cannot be cured within thirty (30) days, if the Owner fails to commence such cure
within such thirty (30) day period or thereafter fails to diligently and continuously proceed with
such cure to completion. However, if a different period or notice requirement is specified under
any other section of this Agreement, then the specific provision shall control.
4.1.2 Any representation or warranty contained in this Agreement or in any application,
financial statement, certificate, or report submitted by the Owner to the City proves to have been
incorrect in any material respect when made.
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4.1.3 A court having jurisdiction shall have made or rendered a decree or order: (i)
adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition seeking
reorganization of the Owner or seeking any arrangement on behalf of the Owner under the
bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any
state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner
in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or
liquidation of the Owner, providing, however, that any such decree or order described in any of
the foregoing subsections shall have continued unstayed or undischarged for a period of ninety
(90) days.
4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or suffered
a sequestration or attachment or execution on any substantial part of its property, unless the
property so assigned, sequestered, attached, or executed upon shall have been returned or released
within ninety (90) days after such event (unless a lesser time period is permitted for cure hereunder)
or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner is diligently
working to obtain a return or release of the property and the City’s interests hereunder are not
imminently threatened in its reasonable business judgment, then the City shall not declare a default
under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or dissolved.
4.1.6 The seizure or appropriation of all or, in the reasonable opinion of the City, a
substantial part of the Apartment Community, except for condemnation initiated by the City or
any governmental agency or authority.
4.1.7 There should occur any default declared by any lender under any loan document or
deed of trust relating to any loan made in connection with the Apartment Community, which loan
is secured by a deed of trust or other instrument affecting the Apartment Community, and such
default remains uncured following the expiration of any applicable cure period.
4.2 City’s Option to Lease. [INTENTIONALLY OMITTED}
4.3 City Remedies. The City shall have the right to mandamus or other suit, action or
proceeding at law or in equity to require the Owner to perform its obligations and covenants under
this Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions
hereof, provided that in any such case the City has first provided the required notice of any alleged
default and the Owner has had the requisite opportunity to cure pursuant to Section 4.1.1, above.
4.4 Action at Law; No Remedy Exclusive. The City may take whatever action at law or in
equity as may be necessary to enforce performance and observance of any obligation, agreement
or covenant of the Owner under this Agreement. No remedy herein conferred upon or reserved by
the City is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law, in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power or shall
be construed to be a waiver of such right or power, but any such right or power may be exercised
from time to time and as often as the City may deem expedient. In order to entitle the City to
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exercise any remedy reserved to it in this Agreement, it shall not be necessary to give any notice,
other than such notice as may be herein otherwise expressly required or required by law to be
given.
ARTICLE 5. GENERAL PROVISIONS.
5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in this
Agreement, except in the event of fraud, waste, or illegal acts, or with regard to any indemnity
obligations imposed upon the Owner under the terms of this Agreement, (i) no partner, member,
officer or director, as applicable, of the Owner (each, an “Owner Affiliate”) shall have any direct,
indirect or derivative personal liability for the obligations of the Owner under this Agreement, and
(ii) the City shall not exercise any rights or institute any action against any Owner Affiliate directly,
indirectly or derivatively for the payment of any sum of money that is or may become payable
hereunder.
5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the Apartment
Community in good condition and repair in accordance with the Ground Lease, and shall otherwise
comply with the Ground Lease and all laws, ordinances, rules, regulations, covenants, conditions,
restrictions, and orders of any governmental authority now or hereafter affecting the conduct or
operation of the Apartment Community or any part thereof or requiring any alteration or
improvement to be made thereon. The Owner shall not commit, suffer, or permit any act to be
done in, upon, or to the Apartment Community or any part thereof in violation of any such laws,
ordinances, rules, regulations, or orders. The Owner hereby agrees that the City may conduct from
time to time through representatives, upon reasonable notice of no less than twenty-four (24) hours,
on-site inspections and observation of: (i) the maintenance and repair of the Apartment
Community, including a review of all maintenance and repair programs and practices and all
reports and records pertaining thereto, including records of expenditures relating thereto; and (ii)
such other facilities, practices, and records of the Owner relating to the Affordable Units as the
City reasonably deems to be necessary or appropriate in order to monitor the Owner’s compliance
with the provisions of this Agreement.
5.3 Notices. All notices (other than telephone notices), certificates or other communications
(other than telephone communications) required or permitted hereunder shall be sufficiently given
and should be deemed given when sent by certified mail, postage prepaid, or twenty-four (24)
hours following delivery of such notice to Federal Express or similar commercial carrier for next
business day or overnight delivery, addressed as follows:
If to the City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Housing Division
If to the Owner:
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_________________________
100 Pacifica, Suite 203
Irvine, CA 92618
Attn: President
5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or
understood by any of the Parties, or by any third persons, as creating the relationship of employer
and employee, principal and agent, limited or general partnership, or joint venture between the
City and the Owner or the Owner’s agents, employees or contractors, and the Owner shall at all
times be deemed an independent contractor and shall be wholly responsible for the manner in
which it or its agents, or both, perform the services required of it by the terms of this Agreement
for the operation of the Apartment Community. The Owner has and hereby retains the right to
exercise full control of employment, direction, compensation and discharge of all persons assisting
in the performance of services hereunder. In regards to the on-site operation of the Apartment
Community, the Owner shall be solely responsible for all matters relating to payment of its
employees, including compliance with Social Security, withholding and all other laws and
regulations governing such matters. The Owner agrees to be solely responsible for its own acts
and those of its agents and employees.
5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim against
the City by any person the Owner may have employed or with whom the Owner may have
contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the
performance of any work or services with respect to the operation of the Affordable Units.
5.6 Conflict of Interests. No member, official or employee of the City shall make any decision
relating to this Agreement which affects his or her personal interests or the interests of any
corporation, partnership or association in which he or she is directly or indirectly interested. No
officer or employee of the Owner shall acquire any interest in conflict with or inimical to the
interests of the City.
5.7 Non-Liability of City Officials, Employees and Agents. No member, official, employee or
agent of the City shall be personally liable to the Owner, or any successor in interest, in the event
of any default or breach by the City or for any amount which may become due to the Owner or
successor in connection with this Agreement or on any obligation of the City under the terms of
this Agreement.
5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific provisions
of this Agreement, performance by either Party hereunder that relates to a construction obligation
shall not be deemed to be in default where it is due to an “Unavoidable Delay.” “Unavoidable
Delay” means a delay due to the elements (including unseasonable weather), fire, earthquakes or
other acts of God, strikes, pandemics, labor disputes, lockouts, shortages of construction materials
experienced generally in the construction industry in the local area, acts of the public enemy, riots,
insurrections or governmental regulation of the sale or transportation of materials, supply or labor;
provided, however, that to the extent a delay is caused by any other reason that the Owner
reasonably believes is beyond its control, the Owner may request, on a case-by-case basis, that the
City excuse any such delay as an Unavoidable Delay and the City shall make its determination as
to whether such delay constitutes an Unavoidable Delay using its reasonable judgment.
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5.9 Indemnity. The Owner shall indemnify, defend and hold harmless the City and all officials,
employees and agents of City (with counsel reasonably satisfactory to the City) against any costs,
liabilities, damages or judgments arising from claims or litigation of any nature whatsoever
brought by third parties and directly or indirectly arising from the Owner’s ownership or operation
of the Apartment Community, or the Owner’s performance of its obligations under this Agreement,
and in the event of settlement, compromise or judgment hold the City free and harmless therefrom.
Notwithstanding the foregoing, the indemnity provisions contained in this Section 5.9 shall not
apply with respect to any costs, liabilities, damages or judgments arising directly or indirectly from
the City’s rental of units within the Apartment Community as described in Section 4.2 hereof. The
provisions of this Section 5.9 shall survive the term of this Agreement.
5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this Agreement,
the rights and remedies of the Parties are cumulative, and the exercise or failure to exercise one or
more of such rights or remedies by either Party shall not preclude the exercise by it, at the same
time or different times, of any right or remedy for the same default or any other default by the
other Party. No waiver of any default or breach by the Owner hereunder shall be implied from
any omission by the City to take action on account of such default if such default persists or is
repeated, and no express waiver shall affect any default other than the default specified in the
waiver, and such wavier shall be operative only for the time and to the extent therein stated.
Waivers of any covenant, term, or condition contained herein shall not be construed as a waiver of
any subsequent breach of the same covenant, term or condition. The consent or approval by the
City to or of any act by the Owner requiring further consent or approval shall not be deemed to
waive or render unnecessary the consent or approval to or of any subsequent similar act. The
exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of any default
under this Agreement, nor shall it invalidate any act done pursuant to notice of default, or prejudice
the City in the exercise of any right, power, or remedy hereunder or under any agreements ancillary
or related hereto.
5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of
the State of California.
5.12 Severability. If any term, provision, covenant or condition of this Agreement is held in a
final disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall continue in full force and effect unless the rights and obligations of the
Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.
5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce the
terms of this Agreement or to collect damages as a result of any breach thereof, the Party prevailing
in any such action shall be entitled to recover against the Party not prevailing all reasonable
attorneys’ fees and costs incurred in such action (including all legal fees incurred in any appeal or
in any action to enforce any resulting judgment), as awarded by a court of competent jurisdiction.
5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit
of the permitted heirs, administrators, executors, successors in interest and assigns of each of the
Parties. Any reference in this Agreement to a specifically named Party shall be deemed to apply
to any successor, heir, administrator, executor or assign of such Party who has acquired an interest
in compliance with the terms hereof or under law.
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5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.
5.16 Approvals by the City. Any approvals required under this Agreement shall be made by the
City Manager or his or her designee, and shall not be unreasonably withheld, conditioned, delayed
or made, except where it is specifically provided herein that another standard applies, in which
case the specified standard shall apply.
5.17 Complete Understanding of the Parties. This Agreement and the attached Exhibits
constitute the entire understanding and agreement of the Parties with respect to the matters
described herein.
5.18 Covenants to Run With the Land. The Owner hereby subjects the Apartment Community
to the covenants, reservations, and restrictions set forth in this Agreement. The City and the Owner
hereby declare their express intent that the covenants, reservations, and restrictions set forth herein
shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s
successors in title to the Apartment Community; provided, however, that on the termination of this
Agreement said covenants, reservations and restrictions shall expire. Each and every contract,
deed or other instrument hereafter executed covering or conveying the Apartment Community or
any portion thereof shall conclusively be held to have been executed, delivered and accepted
subject to such covenants, reservations and restrictions, regardless of whether such covenants,
reservations and restrictions are set forth in such contract, deed or other instruments. No breach
of any of the provisions of this Agreement shall defeat or render invalid the lien of a mortgage or
deed of trust made in good faith and for value encumbering the Property or any interest of the
Owner therein.
5.19 Burden and Benefit. The City and the Owner hereby declare their understanding and intent
that: (i) the burden of the covenants, reservations, restrictions, and agreements set forth herein
touch and concern the Property and the Apartment Community, in that Owner’s legal interest in
the Apartment Community is rendered less valuable thereby, (ii) the covenants, reservations,
restrictions, and agreements set forth herein directly benefit the Property and the Apartment
Community (a) by enhancing and increasing the enjoyment and use of the Apartment Community
by certain Very Low Income Households, the intended beneficiaries of such covenants,
reservations, restrictions, and agreements, (b) by making possible the obtaining of advantageous
financing for the Property and the Apartment Community, and (c) by furthering the public
purposes advanced by the City, and (iii) the covenants, reservations, restrictions and agreements
set forth herein shall run with the Property and shall be binding for the benefit of and enforceable
by the City and its successors and assigns for the entire Term of this Agreement.
5.20 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original, but all of which shall constitute one and the same instrument.
5.21 Amendments. This Agreement may be amended only by the written agreement of the City
and the Owner.
WHEREFORE, the undersigned has executed this Agreement as of the date first-above
written.
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OWNER:
_____________________________
CITY:
CITY OF PALM DESERT
By: ________________________
Print Name: ___________________
Title: ________________________
Page 398 of 855
CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
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EXHIBIT “B”
HOUSEHOLD INCOME CERTIFICATION
(Attached)
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EXHIBIT “C”
CERTIFICATE OF CONTINUING COMPLIANCE
(Attached)
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EXHIBIT E
FORM OF PROMISSORY NOTE
SECURED PROMISSORY NOTE
, 202___
Palm Desert, California
$ .00
FOR VALUE RECEIVED, the undersigned, _________________________ (“Maker” or
“Developer”), having its principal place of business at 100 Pacifica, Suite 203, Irvine, CA 92618
promises to pay to the order of the PALM DESERT HOUSING AUTHORITY (“Payee”), at 73-
510 Fred Waring Drive, Palm Desert, CA 92260, Attn: _____________________, or at such other
place as the holder of this Note from time to time may designate in writing, the principal sum of
$______________________ (the “Principal Amount”), together with interest on the unpaid
principal amount disbursed under this promissory note (“Note”) from time to time outstanding at
the “Applicable Interest Rate,” as defined below, in lawful money of the United States of America.
This Note is being delivered, and the loans evidenced hereby are being made, pursuant to the terms
of an Amended and Restated Disposition, Development and Loan Agreement between Developer
and Payee dated in April, 2024 (“DDLA”). All capitalized terms used herein which are not
separately defined herein shall have the meanings set forth therefor in the DDLA.
As of the date of this Note, $__________________ of principal has been disbursed to the City of
Palm Desert as a purchase money loan to Maker for its acquisition from the City of the property
encumbered by the deed of trust securing this Note (the “Property”).
[FOR PHASE II NOTE ONLY:][The remainder of the Principal Amount shall be disbursed as a
construction loan as described in Section 5.6 of the DDLA.]
“Applicable Interest Rate” means three percent (3%) per annum, simple interest, accruing on all
principal sums disbursed and outstanding, except that amounts not paid when due shall accrue
interest from the date due until the date paid at the lesser of: (i) ten percent (10%) per annum,
simple interest, or (ii) the maximum rate permitted by applicable law.
1. Payments. Payments under this Note shall be due and payable as follows: ____
percent of Residual Receipts, as defined in the DDLA, from the Development on the Property for
each calendar year shall be paid to Payee on an annual basis on the first June 1st after the issuance
of a final certificate of occupancy for such Development , and each June 1st thereafter (with respect
to the Residual Receipts for the preceding calendar year, until all outstanding principal and accrued
interest under this Note has been paid in full. Payments shall first be applied to accrued interest,
then to remaining outstanding principal. In addition, the entire amount of outstanding principal
and accrued interest and any additional amounts which become owing hereunder shall be paid by
Maker to Payee as of the earliest of: (i) an Event of Default by Maker under the DDLA (including,
without limitation, an uncured default under the Housing Agreement for the Property, any uncured
default under any other loan provided by Maker to Payee or any affiliate of Payee, and any uncured
default under any other Housing Agreement following the expiration of any applicable cure period
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executed by Payee or any affiliate of Payee in connection with the remainder of the Property
described in the DDLA); (ii) as provided in Section 4 below; or (iii) fifty-five (55) years after the
date a final certificate of occupancy is issued for the Development (the “Maturity Date”).
2. Secured by Deed of Trust. Repayment of this Note is secured by a deed of trust
(the “Deed of Trust”) executed by Maker for the benefit of Payee encumbering the Property
described in the Deed of Trust on which a portion of the Development described in the DDLA is
to be developed/constructed.
3. Prepayment. Maker shall have the right to prepay amounts owing under this Note
at any time, without premium.
4. Due on Sale or Encumbrance. In the event of any transfer of the Property, or any
portion thereof or interest therein, not permitted by the DDLA or approved in writing by Payee,
Payee shall have the absolute right at its option, without prior demand or notice, to declare all sums
secured hereby immediately due and payable. Failure of Payee to exercise the option to declare
all sums secured hereby immediately due and payable upon a Transfer will not constitute waiver
of the right to exercise this option in the event of any subsequent Transfer.
5. Miscellaneous.
(a) Governing Law. All questions with respect to the construction of this Note
and the rights and liabilities of the parties to this Note shall be governed by the laws of the State
of California.
(b) Attorneys’ Fees.
(i) Maker shall reimburse Payee for all reasonable attorneys’ fees, costs
and expenses, incurred by Payee in connection with the enforcement of Payee’s rights under this
Note, including, without limitation, reasonable attorneys’ fees, costs and expenses for trial,
appellate proceedings, out-of-court negotiations, workouts and settlements or for enforcement of
rights under any state or federal statute, including, without limitation, reasonable attorneys’ fees,
costs and expenses incurred to protect Payee’s security and attorneys’ fees, costs and expenses
incurred in bankruptcy and insolvency proceedings such as (but not limited to) seeking relief from
stay in a bankruptcy proceeding. The term “expenses” means any expenses incurred by Payee in
connection with any of the out-of-court, or state, federal or bankruptcy proceedings referred to
above, including, without limitation, the fees and expenses of any appraisers, consultants and
expert witnesses retained or consulted by Payee in connection with any such proceeding.
(ii) Payee shall also be entitled to its attorneys’ fees, costs and expenses
incurred in any post-judgment proceedings to collect and enforce the judgment. This provision is
separate and several and shall survive the merger of this Note into any judgment on this Note.
(c) Entire Agreement. This Note, the DDLA, the Deed of Trust and the
Housing Agreement required by the DDLA, Density Bonus Agreement, and the other documents
described in the DDLA constitute the entire agreement and understanding between and among the
parties in respect of the subject matter of such agreements and supersede all prior agreements and
understandings with respect to such subject matter, whether oral or written.
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(d) Time of the Essence. Time is of the essence with respect to every provision
hereof.
(e) Waivers by Maker. Maker waives: presentment; demand; notice of
dishonor; notice of default or delinquency; notice of acceleration; notice of protest and
nonpayment; notice of costs, expenses or losses and interest thereon; and diligence in taking any
action to collect any sums arising under this Note or in any proceeding against any of the rights or
interests in or to properties securing payment of this Note.
(f) Non-waivers. No previous waiver and no failure or delay by Maker in
acting with respect to the terms of this Note, the DDLA the Deed of Trust or any Housing
Agreement, shall constitute a waiver of any breach, default, or failure of condition under any of
them. A waiver of any term must be made in writing and shall be limited to the express written
terms of such waiver.
(g) Non-Recourse. Repayment of this Note and all other obligations of
Borrower hereunder, under the DDLA, Housing Agreement or Deed of Trust shall be a non-
recourse obligation of Borrower, such that the general partner of Maker shall not have any personal
obligation to make any payments or perform any other obligations of Maker.
(h) Cure by Limited Partner(s). Payee hereby agrees that any cure of any
default made or tendered by Maker’s limited partner (whose name and notice address is as set forth
below in this Section 5(h)) shall be deemed to be a cure by Maker and shall be accepted or rejected
on the same basis as if made or tendered by Maker.
Investor Limited Partner Name and Notice Address:
______________________
MAKER:
_______________________________
a California limited partnership
By:
Print Name:
Title:
Page 414 of 855
EXHIBIT F
FORM OF DEED OF TRUST
RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: _______________
SPACE ABOVE THIS LINE FOR RECORDER'S USE
DEED OF TRUST AND ASSIGNMENT OF RENTS
THIS DEED OF TRUST AND ASSIGNMENT OF RENTS (this “Deed of Trust”) is dated
as of _________, 202__, and is executed by ______________________ (“Trustor”), in favor of
FIRST AMERICAN TITLE COMPANY, as “Trustee,” for the benefit of the PALM DESERT
HOUSING AUTHORITY (“Beneficiary”).
Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO TRUSTEE IN TRUST,
WITH POWER OF SALE, that certain land in the City of Palm Desert, Riverside County,
California, described on Exhibit “A” attached hereto;
TOGETHER WITH the rents, issues and profits thereof and all leases and rental agreements
related thereto, SUBJECT, HOWEVER, to the right, power, and authority hereinafter given to
Trustor to collect and apply such rents, issues, and profits;
TOGETHER WITH all buildings and improvements of every kind and description now or
hereafter erected or placed thereon, and all fixtures, including but not limited to all gas and electric
fixtures, engines and machinery, radiators, heaters, furnaces, heating equipment, laundry
equipment, steam and hot water boilers, stoves, ranges, elevators and motors, bath tubs, sinks,
water closets, basins, pipes, faucets and other plumbing and heating fixtures, mantels, cabinets,
refrigerating plant and refrigerators, whether mechanical or otherwise, cooking apparatus and
appurtenances, and all shades, awnings, screens, blinds and other furnishings, it being hereby
agreed that all such fixtures and furnishings shall to the extent permitted by law be deemed to be
permanently affixed to and a part of the realty;
TOGETHER WITH all building materials and equipment now or hereafter delivered to the
premises and intended to be installed therein;
TOGETHER WITH all articles of personal property owned by the Trustor now or hereafter
attached to or used in and about the building or buildings now erected or hereafter to be erected on
the lands described which are necessary to the complete and comfortable use and occupancy of
such building or buildings for the purposes for which they were or are to be erected, including all
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other goods and chattels and personal property as are ever used or furnished in operating a building,
or the activities conducted therein, similar to the one herein described and referred to, and all
renewals or replacements thereof or articles in substitution therefor, whether or not the same are,
or shall be attached to the building or buildings in any manner.
All of the foregoing, together with the real property, is herein referred to as the “Property.”
For the purpose of securing (a) payment of the indebtedness evidenced by that certain promissory
note (the “Note”) of substantially even date herewith, in the stated principal sum of
$_______________________, executed by Trustor, as maker, in favor of Beneficiary, as payee,
and all amendments thereof; and (b) sums owing by Trustor to Beneficiary under this Deed of
Trust.
(2) That it shall faithfully perform each and every covenant contained in the Note, the
Disposition, Development and Loan Agreement (“Loan Agreement”) between Trustor and
Beneficiary dated substantially concurrently herewith and the Housing Agreement and other
documents described therein. Upon an Event Default under (and as defined in) the Loan
Agreement, Beneficiary may accelerate the loan evidenced by the Note, and if not paid, may
exercise any and all remedies permitted by law, including foreclosure of this Deed of Trust.
(3) To appear in and defend any action or proceeding purporting to affect the security hereof
or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost
of evidence of title and attorneys’ fees in a reasonable sum, in any such action or proceeding in
which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this
Deed of Trust.
(4) To pay at least ten (10) calendar days before delinquency all property taxes and
assessments and any other taxes affecting the Property, including assessments on appurtenant
water stock; when due, all encumbrances, charges and liens, with interest, on the Property or any
part thereof, which appear to be prior or superior hereto (provided, however, that Trustor may
dispute in good faith any such tax or assessment after posting bond on same).
(5) That should Trustor fail to make any payment or to do any act as herein provided, then
Beneficiary, without obligation so to do and without notice to or demand upon Trustor and without
releasing Trustor from any obligation hereof may: make or do the same in such manner and to
such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee
being authorized to enter upon the Property for such purposes with written notice to Trustor; appear
in and defend any action or proceeding purporting to affect the security hereof or the rights or
powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge
or lien which in the judgment of either appears to be prior or superior hereto; and, in exercising
any such powers, pay necessary expenses, employ counsel and pay its reasonable fees.
(6) To pay immediately and without demand all sums so expended by Beneficiary hereunder,
or under the Maintenance Agreement, in accordance with the terms thereof.
(7) The Trustor further covenants that it will not voluntarily create, suffer, or permit to be
created against the Property any lien or liens except for deeds of trust securing financing used to
pay for construction of the Project, as defined in the Loan Agreement (or securing refinancing of
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such construction loans) and further that it will keep and maintain the Property free from the claims
of all persons supplying labor or materials which will enter into the construction of any and all
buildings now being erected or to be erected on the Property, or will cause the release of or will
provide a bond against any such liens within ten (10) days of the attachment of the lien or liens.
(8) That any award of damages in connection with any condemnation for public use of or injury
to the Property or any part thereof is hereby assigned and shall be paid to Beneficiary who may
apply or release such moneys it receives in the same manner and with the same effect as above
provided for disposition of proceeds of fire or other insurance.
(9) That by accepting payment of any sum secured hereby after its due date, Beneficiary does
not waive its right either to require prompt payment when due of all other sums so secured or to
declare default for failure so to pay.
(10) That at any time or from time to time, without liability therefor and without notice, upon
written request of Beneficiary, and without affecting the personal liability of any person for
payment of the indebtedness secured hereby, Trustee may: reconvey any part of the Property;
consent to the making of any map or plat thereof; join in granting any easement thereon; or join in
any extension agreement or any agreement subordinating the lien or charge hereof.
(11) That upon written request of Beneficiary stating that all sums secured hereby have been
paid or forgiven by Beneficiary, and upon surrender of the Note to Trustee for cancellation and
retention and upon payment of its fees, Trustee shall reconvey, without warranty, the Property then
held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof
of the truthfulness thereof. The grantee in such reconveyance may be described as “the person or
persons legally entitled thereto.”
(12) That Trustor hereby absolutely and unconditionally assigns and transfers to Beneficiary all
the rents, income and profits of the Property encumbered hereby, and hereby give to and confer
upon Beneficiary the right, power and authority to collect such rent, income, and profits, and
Trustor irrevocably appoints Beneficiary Trustor’s true and lawful attorney at the option of
Beneficiary, at any time, to give receipts, releases and satisfactions and to sue, either in the name
of Trustor or in the name of Beneficiary, for all income, and apply the same to the indebtedness
secured hereby; provided, however, so long as no default by Trustor in the payment of any
indebtedness secured hereby shall exist and be continuing beyond any applicable cure period
expressly provided therein, then, Trustor shall have the right to collect all rent, income and profits
from the Property and to retain, use and enjoy the same. Upon any such default, Beneficiary may
at any time without notice, either in person, by agent, or by a receiver to be appointed by a court,
and without regard to the adequacy of any security for the indebtedness hereby secured, enter upon
and take possession of the Property or any part thereof, in its own name sue for or otherwise collect
such rents, issues and profits, including those past due and unpaid, and apply the same, less costs
and expenses of operation and collection, including reasonable attorney’s fees, upon any
indebtedness secured hereby, and in such order as Beneficiary may determine. The entering upon
and taking possession of the Property, the collection of such rents, issues and profits and the
application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder
or invalidate any act done pursuant to such notice.
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(13) That upon a Default by Trustor under the Loan Agreement (after all notice and cure periods
have elapsed), Beneficiary may declare all sums secured hereby immediately due and payable by
delivery to Trustee of written declaration of default and demand for sale and of written notice of
default and election to cause to be sold the Property, which notice Trustee shall cause to be filed
for record. Beneficiary also shall deposit with Trustee this Deed of Trust, the Note and all
documents evidencing expenditures secured hereby. After the lapse of such time as may then be
required by law following the recordation of the notice of default, and notice of sale having been
given as then required by law, Trustee, without demand on Trustor, shall sell the Property at the
time and place fixed by it in the notice of sale, either as a whole or in separate parcels, and in such
order as it may determine, at public auction to the highest bidder for cash in lawful money of the
United States, payable at time of sale. Trustee may postpone sale of all or any portion of the
Property by public announcement at such time and place of sale, and from time to time thereafter
may postpone such sale by public announcement at the time fixed by the preceding postponement.
Trustee shall deliver to such purchaser its deed conveying the Property so sold, but without any
covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall
be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or
Beneficiary as hereinafter defined, may purchase at the sale.
After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence
of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums
expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by
law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to
the person or persons legally entitled thereto.
(14) Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from
time to time, by instrument in writing, substitute a successor or successors to any Trustee named
herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged
and recorded in the office of the recorder of the county or counties where the Property is situated,
shall be conclusive proof of proper substitution of such successor Trustee or Trustees, who shall,
without conveyance from the Trustee predecessor, succeed to all its title estate, rights, powers and
duties. The instrument must contain the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded and the name and address of
the new Trustee.
(15) That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their
heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary
shall mean the owner and holder, including pledgees, of the Note, whether or not named as
Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender
includes the feminine and/or neuter, and the singular number includes the plural.
(16) If Trustor shall sell, convey, hypothecate, transfer, encumber or alienate the Property, or
any part thereof, or any interest therein, or any interest in Trustor is transferred, or Trustor shall be
divested of title or any interest in the Property in any manner or way, whether voluntarily or
involuntarily, without the prior written consent of the Beneficiary being first had and obtained (if
and to the extent such consent is required in the Loan Agreement or if the failure to get such
consent would be an Event of Default under the Loan Agreement), or if an Event of Default by
Trustor shall occur under the Loan Agreement, then Beneficiary shall have the right, at its option,
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to declare any indebtedness or obligations secured hereby, irrespective of the maturity date
specified in any note evidencing the same, immediately due and payable.
(17) That Trustor shall promptly pay when due the payments of interest, principal, and all other
charges accruing under any superior or prior trust deed, mortgage, or other instrument
encumbering the Property. Beneficiary shall have the right, but not the obligation, to cure any
defaults on any superior or prior deed of trust or promissory note secured thereby and upon curing
such default Trustor shall immediately reimburse Beneficiary for all costs and expenses incurred
thereby, together with interest thereon at the maximum legal rate permitted to be charged by non-
exempt lenders under the State of California, and Trustor’s failure to pay such amount on demand
shall be a breach hereof. Trustor’s breach or default of any covenant or condition of any superior
or prior trust deed, mortgage or other instrument encumbering the Property shall be a default under
this Deed of Trust, whereupon Beneficiary shall have the right to declare all sums under the Note
secured hereby immediately due and payable as provided in the Note.
(18) The undersigned Trustor requests that a copy of any Notice of Default and of any Notice
of Sale hereunder (and any other notices hereunder) be mailed to it at its address for notices in the
DDLA.
(19) Trustor shall not commit waste with respect to the Property.
(20) Any notices, requests or approvals given under this Deed of Trust from one party to another
must be in writing and may be personally delivered; or deposited with the United States Postal
Service, postage prepaid, for delivery by registered or certified mail, return receipt requested; or
sent by next business day delivery service such as FedEx, to the following address:
If to Borrower: Palm Desert Palm Villas Partners LP,
a California limited partnership
100 Pacifica, Suite 203
Irvine, CA 92618
Attn:
If to Beneficiary: Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Either party may change its address for notice by giving written notice of its change of address to
the other party. Notices are considered delivered on the date received if given next business day
delivery service and three (3) business days after mailing if sent by United States Postal Service
registered or certified mail. If a notice is sent by registered or certified mail and receipt is rejected
it shall be considered delivered on the date delivery was attempted by the United States Postal
Service.
(21) Beneficiary acknowledges that Trustor and the California Tax Credit Allocation
Committee have or intend to enter into, or concurrently with the execution and delivery of the
Loan Documents are entering into, a Regulatory Agreement (the “TCAC Regulatory Agreement”),
which constitutes the extended low-income housing commitment described in Section 42(h)(6)(B)
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of the Internal Revenue Code, as amended (the “Code”). Beneficiary acknowledges and agrees
that, in the event of a foreclosure of its interest under the Deed of Trust or delivery by the Trustor
of a deed in lieu thereof (collectively, a “Foreclosure”), the following rule contained in Section
42(h)(6)(E)(ii) of the Code shall apply: For a period of three (3) years from the date of Foreclosure,
with respect to any unit that had been regulated by the TCAC Regulatory Agreement, (i) none of
the eligible tenants occupying those units at the time of Foreclosure may be evicted or their tenancy
terminated (other than for good cause, including but not limited to, the tenants’ ineligibility
pursuant to Section 42 of the Code), (ii) nor may any rent be increased except as otherwise
permitted under Section 42 of the Code.
TRUSTOR:
______________________________
a California limited partnership
By:
Name:
Title:
Page 420 of 855
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State of California )
County of ______ )
On _________________________, before me, ,
(insert name and title of the officer) 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 (Seal)
Page 421 of 855
EXHIBIT "A"
DESCRIPTION OF LAND
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
[LEGAL DESCRIPTION TO BE PROVIDED.]
Page 422 of 855
EXHIBIT G-1
FORM OF PHASE I NOTICE OF AFFORDABILITY RESTRICTIONS
RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Executive Director
SPACE ABOVE THIS LINE FOR RECORDER’S USE
FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE §6103
NOTICE OF AFFORDABILITY RESTRICTIONS
IMPORTANT NOTICE TO OWNERS, PURCHASERS, TENANTS, LENDERS, BROKERS,
ESCROW AND TITLE COMPANIES, AND OTHER PERSONS, REGARDING
AFFORDABLE HOUSING RESTRICTIONS ON THE REAL PROPERTY DESCRIBED IN
THIS NOTICE: RESTRICTIONS HAVE BEEN RECORDED WITH RESPECT TO THE
PROPERTY DESCRIBED BELOW WHICH RESTRICT OCCUPANCY TO EXTREMELY
LOW, VERY LOW AND LOW-INCOME HOUSEHOLDS AND THE RENTS WHICH MAY
BE CHARGED. THESE RESTRICTIONS MAY LIMIT THE RENTS FOR EACH UNIT TO AN
AMOUNT WHICH IS LESS THAN FAIR MARKET RENT. THESE RESTRICTIONS LIMIT
THE INCOME OF PERSONS AND HOUSEHOLDS WHO ARE PERMITTED TO RENT AND
OCCUPY THE UNITS.
This NOTICE OF AFFORDABILITY RESTRICTIONS (the “Notice”), is dated as of
___________, ___, 202__, and is executed by ___________________, a __________________
(“Owner”), whose address is _________________, and by the PALM DESERT HOUSING
AUTHORITY (the “PDHA”) in connection with that certain Housing Agreement (LMIHF
Agreement, and City Loan Restrictions Agreement) among Owner, the City of Palm Desert and
the PDHA dated substantially concurrently herewith and recorded in the Official Records of
Riverside County substantially concurrently herewith (the “Housing Agreement”).
RECITALS
A. Owner owns the land described on Exhibit “A” in the City of Palm Desert, State of
California and the improvements thereon (the “Property”), which is [part of] APN
_________________ [ADDRESS?]
B. Owner, City and PDHA are entering into and recording the Housing Agreement
substantially concurrently herewith, which relates to and encumbers the Property.
A. Capitalized terms used herein but not defined shall have the meaning set
forth in the Housing Agreement.
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TERMS OF NOTICE
1. Requirement for Recorded Notice. This Notice is being executed and recorded
pursuant to California Health and Safety Code Section 33334.3(f)(3)(B).
2. Housing Agreement (Regulatory Agreement). This Notice is being recorded
substantially concurrently with the recordation of the Housing Agreement, which is incorporated
herein by reference.
3. General Recitation of Affordability Restrictions; Term. The Housing Agreement
restricts the occupancy of 120 rental units on the Property to occupancy by extremely low, very
low and low-income households as their principal residence at an affordable rent (as more
particularly described in and required by the Housing Agreement), and in compliance with
California Health & Safety Code Sections 50052.5, 50053, 50079.5, 50106 and Title 25 of the
California Code of Regulations Section 6910, et. seq., for a term commencing on the date thereof
and continuing until fifty-five (55) years after issuance of a Certificate of Occupancy by the City
of Palm Desert for the improvements required to be made by Owner to the Property under that
certain Amended and Restated Disposition, Development and Loan Agreement among Owner, the
PDHA and the City of Palm Desert dated in April, 2024. An additional unit is restricted to be used
by an on-site manager as its residence.
4. Summary of Affordable Housing Restrictions. The Housing Agreement restricts
the occupants (tenants) of the apartments on the Property to extremely low, very low and low
income households and restrict the amount of rent which may be charged for the apartment, as
follows:
(a) Thirty-six (36) units shall be restricted to households whose income does
not exceed thirty percent (30%) of Area Median Income (as defined below), adjusted by family
size appropriate to the unit. Such units consist of 6 one-bedroom units, 27 two-bedroom units, and
3 three-bedroom units;
(b) Sixty-one (61) units shall be restricted to households whose income does
not exceed fifty-fine percent (59%) of Area Median Income (as defined below), adjusted by family
size appropriate to the unit. Such units consist of 9 one-bedroom units, 48 two-bedroom units and
4 three-bedroom units.
(c) Twenty-three (23) units shall be restricted to households whose income
does not exceed eighty percent (80%) of Area Median Income, adjusted by family size appropriate
to the unit. Such units consist of 23 three-bedroom units.
(d) The remaining unit shall be used solely as a manager’s unit for on-site
apartment managers.
“Adjusted by family size appropriate to the unit” shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h). “Area Median Income” shall have the
meaning set forth in California Health and Safety Code Sections 50106 and 50079.5.
Rent Restrictions: Rent is restricted to an “affordable” rent for extremely low,
very low and low-income households pursuant to Section 50053(b) of the California Health &
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Safety Code. However, households at 59% of Area Median Income households are to pay
affordable rent based on 59% of the Area Median Income.
This Notice does not contain a full description of the details of all of the terms and
conditions of the Housing Agreement. You will need to obtain and read the Housing Agreement
to fully understand the restrictions and requirements which apply to the Property.
IN WITNESS WHEREOF, this Notice has been executed and made effective on the day
and year first above written.
PDHA:
PALM DESERT HOUSING AUTHORITY
By:
____________________,
Executive Director
OWNER:
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State of California )
County of ___________________ )
On _________________________, before me, ,
(insert name and title of the officer)
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 (Seal)
Page 426 of 855
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State of California )
County of _________________ )
On _________________________, before me, ,
(insert name and title of the officer)
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 (Seal)
Page 427 of 855
EXHIBIT “A”
LEGAL DESCRIPTION OF LAND
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
Page 428 of 855
EXHIBIT G-2
FORM OF PHASE II NOTICE OF AFFORDABILITY RESTRICTIONS
RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Executive Director
SPACE ABOVE THIS LINE FOR RECORDER’S USE
FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE §6103
NOTICE OF AFFORDABILITY RESTRICTIONS
IMPORTANT NOTICE TO OWNERS, PURCHASERS, TENANTS, LENDERS, BROKERS,
ESCROW AND TITLE COMPANIES, AND OTHER PERSONS, REGARDING
AFFORDABLE HOUSING RESTRICTIONS ON THE REAL PROPERTY DESCRIBED IN
THIS NOTICE: RESTRICTIONS HAVE BEEN RECORDED WITH RESPECT TO THE
PROPERTY DESCRIBED BELOW WHICH RESTRICT OCCUPANCY TO EXTREMELY
LOW, VERY LOW AND LOW-INCOME HOUSEHOLDS AND THE RENTS WHICH MAY
BE CHARGED. THESE RESTRICTIONS MAY LIMIT THE RENTS FOR EACH UNIT TO AN
AMOUNT WHICH IS LESS THAN FAIR MARKET RENT. THESE RESTRICTIONS LIMIT
THE INCOME OF PERSONS AND HOUSEHOLDS WHO ARE PERMITTED TO RENT AND
OCCUPY THE UNITS.
This NOTICE OF AFFORDABILITY RESTRICTIONS (the “Notice”), is dated as of
___________, ___, 202__, and is executed by ___________________, a __________________
(“Owner”), whose address is _________________, and by the PALM DESERT HOUSING
AUTHORITY (the “PDHA”) in connection with that certain Housing Agreement (LMIHF
Agreement, and City Loan Restrictions Agreement) among Owner, the City of Palm Desert and
the PDHA dated substantially concurrently herewith and recorded in the Official Records of
Riverside County substantially concurrently herewith (the “Housing Agreement”).
RECITALS
A. Owner owns the land described on Exhibit “A” in the City of Palm Desert, State of
California and the improvements thereon (the “Property”), which is [part of] APN
_________________ [ADDRESS?]
B. Owner, City and PDHA are entering into and recording the Housing Agreement
substantially concurrently herewith, which relates to and encumbers the Property.
C. Capitalized terms used herein but not defined shall have the meaning set forth in
the Housing Agreement.
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TERMS OF NOTICE
1. Requirement for Recorded Notice. This Notice is being executed and
recorded pursuant to California Health and Safety Code Section 33334.3(f)(3)(B).
2. Housing Agreement (Regulatory Agreement). This Notice is being recorded
substantially concurrently with the recordation of the Housing Agreement, which is incorporated
herein by reference.
3. General Recitation of Affordability Restrictions; Term. The Housing
Agreement restricts the occupancy of 119 units on the Property to occupancy by extremely low,
very low and low-income households as their principal residence at an affordable rent (as more
particularly described in and required by the Housing Agreement), and in compliance with
California Health & Safety Code Sections 50052.5, 50053, 50079.5, 50106 and Title 25 of the
California Code of Regulations Section 6910, et. seq., for a term commencing on the date thereof
and continuing until fifty-five (55) years after issuance of a Certificate of Occupancy by the City
of Palm Desert for the improvements required to be made by Owner to the Property under that
certain Amended and Restated Disposition, Development and Loan Agreement among Owner, the
PDHA and the City of Palm Desert dated in April, 2024. An additional unit is restricted to be used
by an on-site manager as its residence.
4. Summary of Affordable Housing Restrictions. The Housing Agreement
restricts the occupants (tenants) of the apartments on the Property to extremely low, very low and
low income households and restrict the amount of rent which may be charged for the apartment,
as follows:
(a) Thirty-six (36) units shall be restricted to households whose income does
not exceed thirty percent (30%) of Area Median Income (as defined below), adjusted by family
size appropriate to the unit. Such units consist of 6 one-bedroom units, 47 two-bedroom units, and
4 three-bedroom units;
(b) Sixty (60) units shall be restricted to households whose income does not
exceed fifty-fine percent (59%) of Area Median Income (as defined below), adjusted by family
size appropriate to the unit. Such units consist of 9 one-bedroom units, 47 two-bedroom units and
4 three-bedroom units.
(c) Twenty-three (23) units shall be restricted to households whose income
does not exceed eighty percent (80%) of Area Median Income, adjusted by family size appropriate
to the unit. Such units consist of 23 three-bedroom units.
(d) The remaining unit shall be used solely as a manager’s unit for on-site
apartment managers.
“Adjusted by family size appropriate to the unit” shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h). “Area Median Income” shall have the
meaning set forth in California Health and Safety Code Sections 50106 and 50079.5.
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Rent Restrictions: Rent is restricted to an “affordable” rent for extremely low,
very low and low-income households pursuant to
Section 50053(b) of the California Health & Safety Code.
However, the sixty (60) units with households of 59% of
Area Median Income households are to pay affordable rent
based on 59% of the Area Median Income.
This Notice does not contain a full description of the details of all of the terms and conditions of
the Housing Agreement. You will need to obtain and read the Housing Agreement to fully
understand the restrictions and requirements which apply to the Property.
IN WITNESS WHEREOF, this Notice has been executed and made effective on the day
and year first above written.
PDHA:
PALM DESERT HOUSING AUTHORITY
By:
____________________,
Executive Director
OWNER:
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State of California )
County of ___________________ )
On _________________________, before me, ,
(insert name and title of the officer)
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 (Seal)
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State of California )
County of _________________ )
On _________________________, before me, ,
(insert name and title of the officer)
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 (Seal)
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Exhibit H-1 goes here
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RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: _________________
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
This Document is recorded for the benefit of the City of Palm Desert and is exempt
from recording fees pursuant to Sections 6103, 27383 and 27388.1
of the California Government Code.
HOUSING AGREEMENT
(LMIHF Agreement; Phase I)
by and between the
PALM DESERT HOUSING AUTHORITY,
and
__________________________
DATED AS OF _________ ____, 202__
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HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the “Agreement”) is dated as of ______________ ___,
202__, and is by and between the PALM DESERT HOUSING AUTHORITY, a public body,
corporate and politic (the “Authority”)and ____________________________ (the “Owner”).
Authority, City and Owner are sometimes referred to herein individually as a “Party” and
collectively as “Parties”.
RECITALS
This Agreement is predicated upon the following facts:
A. The Owner is the owner of the land described in “Exhibit A” attached hereto (the
“Property”).
B. The City, the Authority and Owner have entered into that certain Amended and
Restated Disposition, Development and Loan Agreement dated in April, 2024 (“DDLA”),
pursuant to which the City conveyed the Property to the Owner for the development described in
the DDLA (“Development” or “Apartment Community”) and made a loan to Owner for the
purchase price of the Property (“City Loan”). Capitalized terms used but not defined herein shall
have the meaning set forth in the DDLA.
C. Pursuant to the DDLA, the Owner executed a Promissory Note in favor of
Authority and a deed of trust in favor of Authority securing such Promissory Note and the
Authority is obligated to make disbursements of loan proceeds subject to and in accordance with
the DDLA.
D. The Authority loan was made with moneys in the Low and Moderate Income
Housing Asset Fund established and held by the Authority as successor to the housing assets of
the former Palm Desert Redevelopment Agency, and California law and the DDLA require that
the Authority obtain recorded restrictions on the Property and Development thereon restricting the
apartment units on the Property to extremely low and low income households at an affordable rent.
E. Additionally, the Owner has applied for and obtained a density bonus from the City
for the Development which permits greater density and less parking than would otherwise be
required, and in exchange, the City also requires that the apartment units be so restricted, and that
such restrictions not be subordinate or subordinated to any deeds of trust or other consensual liens.
Such restrictions are contained in a separate Housing Agreement between the City and the Owner.
F. This Agreement is the restriction agreement described in Recital D above.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the City and the Owner hereby agree as follows:
ARTICLE 1. DEFINITIONS AND INTERPRETATION.
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1.1 Definitions.
Capitalized terms used herein shall have the following meanings unless the context in
which they are used clearly requires otherwise.
“Affordable Units” shall mean 120 of the 121 units in the Apartment Community
available to and occupied by, or held vacant for occupancy only by, Extremely Low Income
Households, 59% AMI Low Income Households and 80% AMI Low Income Households and
rented at an Affordable Rent. Specifically, the Affordable Units consist of 36 units for Extremely
Low Income Households, 61 units for 59% AMI Low Income Households and 23 units for 80%
AMI Low Income Households. The Affordable Units will include the number of bedrooms shown
on the following table:
Bedroom
Size
Extremely
Low
Income
Household
Affordable
Units
59% AMI
Low
Income
Household
Affordable
Units)
80% AMI
Low
Income
Household
Affordable
Units
One 6 9 0
Two 27 48 0
Three 3 4 23
Total 36 61 23
“Affordable Rent” hall mean rent for an Affordable Unit, including a Reasonable Utility
Allowance, determined pursuant to California Health and Safety Code Section 50053(b) and the
state regulations adopted by the California Department of Housing and Community Development
(“HCD”) pursuant thereto, as amended from time to time, based upon the AMI adjusted for a
Household Size Appropriate to the Affordable Unit. More specifically, (1) for each of the 36
Affordable Units reserved for Extremely Low Income Households, the maximum monthly
Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%)
of thirty percent (30%) of the AMI, adjusted for a Household Size Appropriate to the Affordable
Unit, divided by twelve, (2) for each of the 61 Affordable Units reserved for 59% AMI Low
Income Households, the maximum monthly Affordable Rent, including a Reasonable Utility
Allowance, may not exceed thirty percent (30%) of fifty-nine percent (59%) of the AMI, adjusted
for a Household Size Appropriate to the Affordable Unit, divided by twelve, and (3) for each of
the 23 Affordable Units reserved for 80% AMI Low Income Households , the maximum monthly
Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%)
of fifty-nine percent (59%) of the AMI, adjusted for a Household Size Appropriate to the
Affordable Unit, divided by twelve.
“AMI” shall mean the area median income for Riverside County as published by the
California Department of Housing and Community Development pursuant to Health and Safety
Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state
regulations adopted pursuant to California Health and Safety Code Section 50052.5.
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“Extremely Low Income Household” shall mean persons and families whose income
does not exceed the qualifying limits for extremely low income households set forth in California
Health and Safety Code Section 50106 and Title 25 of the California Code of Regulations, as such
statute and regulations may be amended from time to time.
“Household Size Appropriate to the Affordable Unit” in the absence of pertinent federal
statutes or regulations applicable to the Apartment Community, shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h), as amended from time to time.
“59% AMI Low Income Household” shall mean persons and families whose income does
not exceed the 59% of the AMI as set forth in California Health and Safety Code Section 50079.5
and Title 25 of the California Code of Regulations, including Section 6912, as such statute and
regulations may be amended from time to time.
“80% AMI Low Income Household” shall mean persons and families whose income does
not exceed the qualifying limits for lower income households set forth in California Health and
Safety Code Section 50079.5 and Title 25 of the California Code of Regulations, including Section
6912, as such statute and regulations may be amended from time to time.
“Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a
tenant (not including telephone, internet or cable service) utilizing the utility allowance schedule
published annually by the Housing Authority of the County of Riverside.
“Required Covenant Period” shall mean the period commencing on the date all units in
the Apartment Community have been completed as evidenced by the City’s issuance of a final
Certificate of Occupancy for the Apartment Community, and ending as of the fifty-fifth (55th)
anniversary thereof.
1.2 Rules of Construction.
1.2.1 The singular form of any word used herein, including the terms defined herein shall
include the plural and vice versa. The use herein of a word of any gender shall include correlative
words of all genders.
1.2.2 Unless otherwise specified, references to articles, sections, and other subdivisions
of this Agreement are to the designated articles, sections, and other subdivisions of this Agreement
as originally executed. The words “hereof,” “herein,” “hereunder,” and words of similar import
shall refer to this Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to effectuate the purposes
set forth in this Agreement and to sustain the validity hereof.
1.2.4 Headings or titles of the several articles and sections hereof and the table of contents
appended to copies hereof shall be solely for convenience of reference and shall not affect the
meaning, construction, or effect of the provisions hereof.
ARTICLE 2. ONGOING APARTMENT COMMUNITY OBLIGATIONS.
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2.1 Apartment Community and Affordable Units.
The Owner shall develop and construct the Apartment Community within a portion of the
Project on the Property in conformity with the DDLA. Thereafter, during the Required Covenant
Period, the Owner agrees that not less than 239 units in the Apartment Community shall be
Affordable Units, meaning that (a) 36 of such units shall be continually available to and occupied
by, or held vacant for occupancy only by, Extremely Low Income Households, (b) 61 of such units
shall be continually available to and occupied by, or held vacant for occupancy only by, 59% AMI
Low Income Households, and (c) 23 of such units shall be continually available to and occupied
by, or held vacant for occupancy only by, 80% AMI Low Income Households. All of the rental
units in the Apartment Community shall be similarly constructed and generally constructed at the
same time. The Affordable Units shall be of comparable quality to those rental units in the
Apartment Community which are available to other tenants. The Owner agrees that, to the extent
commercially reasonable, Affordable Units will not be underutilized. No persons shall be
permitted to occupy any Affordable Unit in excess of applicable limit of maximum occupancy set
by the City’s Municipal Code and the laws of the State of California, or by Authority Resolution
HA-84 adopted on December 14, 2017 (and the occupancy policy attached as Exhibit A thereto)
and any amendments or replacements thereof.
2.2 Residential Rental Property.
The Owner covenants to operate the Apartment Community as residential rental property.
During the Required Covenant Period, the Affordable Units will be held and used for the purpose
of providing residential living, and the Owner shall own, manage and operate, or cause the
management and operation of, the Apartment Community to provide such affordable rental
housing. All of the rental units in the Apartment Community with the exception of one
(1)manager’s units, will be available for rental on a continuous basis to members of the general
public and the Owner will not give preference to any particular class or group in renting the units
in the Apartment Community, except as required under this Agreement. The Owner shall not
convert any Affordable Unit(s) to condominiums or cooperative ownership or sell condominium
or cooperative conversion rights to any Affordable Unit(s) during the term of this Agreement.
2.3 Extremely Low, 59% AMI Low and 80% AMI Low Income Households.
2.3.1 Income Qualification; Initial Certification. Subject to the applicable provisions
hereof, throughout the Required Covenant Period, Affordable Units will be exclusively occupied
by, or available for occupancy only by, Extremely Low, 59% AMI Low and 80% AMI Low
Income Households as described above. Prior to the rental or lease of an Affordable Unit and in
accordance with Section 2.6 hereof, the Owner will obtain and maintain on file a Household
Income Certification (“Income Certification”) substantially in the form attached hereto as Exhibit
“B” and incorporated herein by this reference for each Extremely Low, 59% AMI Low and 80%
AMI Low Income Households, as applicable, and shall provide copies of same to the Authority at
such times as the Authority may, from time to time, reasonably require. In addition, the Owner
will provide such further information as may reasonably be required in the future by the Authority.
The Income Certification shall be dated immediately prior to the applicable household’s initial
occupancy of an Affordable Unit. The Owner shall make a good faith effort to verify that the
income provided by an applicant in an Income Certification is accurate by taking any one or more
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of the following steps as part of the verification process for all household members over the age
of eighteen (18) as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods;
(ii) Obtain a true copy of an income tax return for the most recent tax year in
which a return was filed;
(iii) Obtain an income verification form from the household member’s current
employer;
(iv) Obtain an income verification form from the Social Security Administration
and/or the State Department of Social Services, or its equivalent, if the household member receives
assistance from either of those agencies;
(v) If the household member is unemployed and has no tax return, obtain
another form of independent verification; or
(vi) Obtain such other documentation as may be reasonably acceptable pursuant
to Title 25 of the California Code of Regulations, as amended from time to time, to verify income.
2.3.2 Certificate of Continuing Program Compliance; Annual Report; Annual
Monitoring/Administration Fee. Throughout the Required Covenant Period, the Owner will
prepare and submit to the Authority, at such periodic frequency as the Authority might reasonably
require, but not more than once annually, a Certificate of Continuing Compliance in substantially
the form attached hereto as Exhibit “C” and incorporated herein by this reference, and executed
by the Owner. The Owner will also prepare and submit to the Authority on or before each
anniversary date of the commencement of the Required Covenant Period, and for the preceding
calendar year, a report in form and substance reasonably satisfactory to the Authority summarizing
the vacancy rate of the Apartment Community, including the number of Affordable Units held
vacant for occupancy by Extremely Low, 59% AMI Low and 80% AMI Low Income Households
for such calendar year. Owner shall pay an annual monitoring/administration fee in the amount of
Ten Thousand Dollars ($10,000.00), increasing by three percent (3%) annually, concurrently with
Developer’s annual payments of Residual Receipts to Authority under the Authority Loan.
2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent shall be
charged to the Extremely Low, 59% AMI Low and 80% Low Income Household occupants of
Affordable Units, as more specifically described above.
2.5 Rent Increases. Rents for Affordable Units may be increased not more than once per year
and twelve (12) months must have elapsed since the date of the tenant’s initial occupancy or the
last rent increase. The rents charged following such an increase, or upon a vacancy and new
occupancy by an Extremely Low, 59% AMI Low or 80% AMI Low Income Household, as
applicable, shall not exceed an Affordable Rent. The Owner shall, consistent with applicable law,
give proper written notice to tenants of all rent increases, and upon written request, provide the
Authority with reasonable detail concerning the amount of and rationale for such rent increases.
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2.6 Income Recertification of Affordable Units. Annually, on the anniversary date of
occupancy of an Affordable Unit by an Extremely Low, 59% AMI Low or 80% AMI Low Income
Household, as applicable, the Owner shall obtain and maintain on file an annual income
certification, in form and substance reasonably satisfactory to the Authority, from each household
occupying an Affordable Unit, based upon the current income of each household member over the
age of eighteen (18). The Owner shall make a good faith effort to verify that the income provided
by the household is accurate in accordance with Section 2.3.1, above.
2.6.1 A rental unit occupied by a household that qualifies as an Extremely Low, 59%
AMI Low or 80% AMI Low Income Household, as applicable, at the time the household first
occupies an Affordable Unit shall be deemed to continue to be so occupied until a recertification
of such household’s income demonstrates that such household no longer qualifies as an Extremely
Low, 59% AMI Low or 80% AMI Low Income Household, as applicable. At such time as a
household ceases to qualify as an Extremely Low, 59% AMI Low or 80% AMI Low Income
Household, as applicable, based on income recertification, the Owner shall designate the next
available unit (one that is not occupied by a tenant) with the same number of bedrooms as the
occupied Affordable Unit and it shall be leased to an Extremely Low, 59% AMI Low or 80% AMI
Low Income Household, as applicable, so that the number of Affordable Units occupied by or
reserved for occupancy by Extremely Low, 59% AMI Low or 80% Low Income Households will
remain constant. For purposes of this Agreement, such designated unit will be considered an
Affordable Unit if it is held vacant and available solely for occupancy by an Extremely Low, 59%
AMI Low or 80% AMI Low Income Household, as applicable, and, upon occupancy, the income
eligibility of the household as an Extremely Low, 59% AMI Low or 80% AMI Low Income
Household is verified and the unit is rented at Affordable Rent.
2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit to an
Extremely Low, 59% AMI Low or 80% AMI Low Income Household, the Owner shall require
the tenant to execute a written lease or occupancy agreement. The Owner shall maintain on file
throughout the Required Covenant Period and for a four (4) year period thereafter, the executed
lease or occupancy agreement of each tenant occupying an Affordable Unit. The form of lease or
occupancy agreement used by the Owner for the lease or rental of Affordable Units shall be that
which is reasonable and customary in residential leasing. In addition, each lease or occupancy
agreement for an Affordable Unit shall (i) provide that the tenants of such Affordable Unit shall
be subject to annual recertification of income and subject to rental increases in accordance with
Sections 2.5 and 2.6 of this Agreement, and (ii) contain a provision to the effect that the Owner
has relied on the income certification and supporting information supplied by the tenant in
determining qualification for occupancy of the Affordable Unit, and that any material misstatement
in such certification (whether or not intentional) may be cause for immediate termination of such
lease or occupancy agreement.
2.7.1 No Discrimination. Owner covenants, by and for itself and any successors in
interest, that there shall be no discrimination against or segregation of any person or group of
persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government
Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall Owner, itself or any
person claiming under or through it, establish or permit any such practice or practices of
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discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, subtenants, subleases or vendees in the Site.
2.7.2 Required Clauses. All deeds, subleases or contracts made relative to the Site, the
improvements thereon or any part thereof, shall contain or be subject to substantially the following
nondiscrimination and nonsegregation clauses:
"(1) Grantee herein covenants by and for itself, its successors and assigns, and
all persons claiming under or through them, that there shall be no discrimination against or
segregation of, any person or group of persons on account of any basis listed in subdivision (a)
and (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 and Section
12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the property herein conveyed, nor shall the grantee or any person claiming under or
through the grantee, establish or permit any practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the property herein conveyed. The foregoing covenant shall run with the
land.
(2) Notwithstanding paragraph (1), with respect to familial status, paragraph
(1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of
the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed
to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing
for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and
subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to paragraph
(1)."
(a) In leases: “The lessee herein covenants, by and for himself or
herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or
through him or her, and this lease is made and accepted upon and subject to the following
conditions:
(b) That there shall be no discrimination against or segregation of any
person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955
of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government
Code, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land
herein leased, nor shall the lessee, himself or herself or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subleases,
subtenants or vendees in the land herein leased.
(c) Notwithstanding paragraph (a), with respect to familial status,
paragraph (a) shall not be construed to apply to housing for older persons, as defined in Section
12955.9 of the Government Code. With respect to familial status, nothing in paragraph (a) shall
be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11 and 799.5 of the Civil Code, relating
to housing for senior citizens. Subdivisions (d) of Section 51 and Section 1360 of the Civil Code
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and subdivision (n), (o), and (p) of Section 12955 of the Government Code shall apply to paragraph
(a).”
(3) In contracts: “There shall be no discrimination against or segregation of
any person or group of persons on any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the
transferee, himself or herself or any person claiming under or through him or her, establish or
permit any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subleases, subtenants or vendees
in the land.
2.7.3 The Owner shall refrain from restricting the rental or lease of Affordable Units on
the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any
person.
2.7.4 The Owner shall refrain from restricting the rental or lease of Affordable Units on
the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any
person.
2.7.5 The Authority is the beneficiary of the terms and provisions of the covenants herein,
both for and in its own right and for the purposes of protecting the interests of the community and
other parties, public or private, for whose benefit these covenants running with the land have been
provided.
2.8 Security Deposits. The Owner may require security deposits on Affordable Units in
amounts which are consistent with applicable law.
2.9 Additional Information; Books and Records. The Owner shall provide any additional
information concerning the Affordable Units reasonably requested by the Authority. The Owner
will maintain complete and accurate records pertaining to the Affordable Units throughout the
Covenant Period and for a four (4) year period thereafter. The Authority shall have the right upon
written notice of no less than two (2) business days to the Owner, at any time during normal
business hours of 9:00 am to 5:00 pm, to examine of all books, records or other documents
maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit,
including all executed leases or occupancy agreements and all Income Certifications, and obtain
copies of any requested executed leases, occupancy agreements and Income Certifications within
ten (10) business days following such examination and the Authority’s written request.
2.10 Specific Performance. The Owner hereby agrees that specific enforcement of the Owner’s
agreement to comply with the allowable rent and occupancy restrictions and covenants contained
herein is one of the reasons and consideration for the Authority having entered into the DDLA,
and that, in the event of the Owner’s breach of such requirements, potential monetary damages to
the Authority and City, as well as to existing and prospective Extremely Low, 59% AMI Low or
80% AMI Low Income Households, would be difficult, if not impossible, to evaluate and quantify.
Therefore, in addition to any other relief to which the Authority or City may be entitled as a
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consequence of the breach hereof, the Owner agrees to the imposition of the remedy of specific
performance against it in the case of any event of default by the Owner in complying with any
provision of this Agreement beyond any applicable notice and cure period.
2.11 Audit. The Authority shall have the right to perform an audit of the Apartment Community
to determine compliance with the provisions of this Agreement. Such audit shall not be undertaken
more often than once each calendar year. All costs and expenses associated with the audit shall
be paid by the Owner.
2.12 Management. The management agent of the Owner and any other contractor of Owner
who provides services to occupants of the Apartment Community shall be subject to the reasonable
written approval of the Authority. The Owner and/or the management agent (if not the Owner)
shall operate the Apartment Community in a manner that will provide decent, safe and sanitary
residential facilities to the occupants thereof, and will comply with provisions of this Agreement.
Upon the written request of the Authority, the Owner shall cooperate with the Authority in the
periodic review (but not more than once each calendar year) of the management practices and
financial status of the Affordable Units. The purpose of each periodic review will be to enable the
Authority to determine if the Affordable Units are being operated and managed in accordance with
the requirements and standards of this Agreement. Results of such Authority review shall be
provided to the City and to the Owner, and the Authority shall have the right to require the Owner
to make modifications that are reasonably necessary to ensure the objectives of this Agreement are
met.
2.13 Binding for Term. t is intended by the Parties that except as otherwise expressly provided
herein, the provisions of this Agreement shall apply to the Apartment Community throughout the
entire term hereof, as established in Section 3.1 below.
ARTICLE 3. TERM AND RECORDATION.
3.1 Term of Agreement. This Agreement shall remain in full force and effect for the Required
Covenant Period, unless the Owner and the Authority agree, in writing, to terminate this
Agreement prior to the expiration of the Required Covenant Period. Unless terminated earlier
pursuant to the prior sentence of this Section 3.1, or Section 3.3 below, the Parties intend that the
provisions and effect of this Agreement and specifically of Article 2 hereof, shall remain in full
force and effect for the entire Required Covenant Period.
3.2 Agreement to Record. The Owner represents, warrants, and covenants that this Agreement
will be recorded in the real property records of Riverside County.
3.2 Early Termination of Restrictions. Notwithstanding the generality of the foregoing
provisions of this Article 3 or any other provisions hereof, this Agreement and all of the terms and
restrictions contained herein shall be suspended during involuntary noncompliance as a result of
unforeseen events such as fire or act of God which leaves the entire Apartment Community
uninhabitable (and the proceeds of insurance available to the Owner as a result thereof are
insufficient to reconstruct the Apartment Community), or a change in a federal or state law or an
action by the federal government, the State or a court of competent jurisdiction, after the date of
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recordation hereof, that prevents the Authority from enforcing the provisions of this Agreement,
or a condemnation or a similar event.
ARTICLE 4. DEFAULT; REMEDIES.
4.1 An Event of Default. Each of the following shall constitute an “Event of Default” by the
Owner under this Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any of the
conditions, terms, or covenants of any agreement with the Authority or the City concerning the
Apartment Community, or of this Agreement, if such failure remains uncured thirty (30) days after
written notice of such failure from the Authority to the Owner in the manner provided herein or,
with respect to a default that cannot be cured within thirty (30) days, if the Owner fails to
commence such cure within such thirty (30) day period or thereafter fails to diligently and
continuously proceed with such cure to completion. However, if a different period or notice
requirement is specified under any other section of this Agreement, then the specific provision
shall control.
4.1.2 Any representation or warranty contained in this Agreement or in any application,
financial statement, certificate, or report submitted by the Owner to the Authority or the City
proves to have been incorrect in any material respect when made..
4.1.3 A court having jurisdiction shall have made or rendered a decree or order: (i)
adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition seeking
reorganization of the Owner or seeking any arrangement on behalf of the Owner under the
bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any
state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner
in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or
liquidation of the Owner, providing, however, that any such decree or order described in any of
the foregoing subsections shall have continued unstayed or undischarged for a period of ninety
(90) days.
4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or suffered
a sequestration or attachment or execution on any substantial part of its property, unless the
property so assigned, sequestered, attached, or executed upon shall have been returned or released
within ninety (90) days after such event (unless a lesser time period is permitted for cure hereunder)
or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner is diligently
working to obtain a return or release of the property and the City’s and the Authority’s interests
hereunder are not imminently threatened in its reasonable business judgment, then the City shall
not declare a default under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or dissolved.
4.1.6 The seizure or appropriation of all or, in the reasonable opinion of the Authority, a
substantial part of the Apartment Community, except for condemnation initiated by the City, the
Authority or any other governmental agency or authority.
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4.1.7 The seizure or appropriation of all or, in the reasonable opinion of the Authority, a
substantial part of the Apartment Community, except for condemnation initiated by the City, the
Authority or any other governmental agency or authority.
4.1.8 There should occur any default declared by any lender under any loan document or
deed of trust relating to any loan made in connection with the Apartment Community, which loan
is secured by a deed of trust or other instrument affecting the Apartment Community, and such
default remains uncured following the expiration of any applicable cure period.
4.2 Option to Lease. [INTENTIONALLY OMITTED}
4.3 Authority Remedies. The Authority and City shall each have the right to mandamus or
other suit, action or proceeding at law or in equity to require the Owner to perform its obligations
and covenants under this Agreement or to enjoin acts or things which may be unlawful or in
violation of the provisions hereof, provided that in any such case the Authority has first provided
the required notice of any alleged default and the Owner has had the requisite opportunity to cure
pursuant to Section 4.1.1, above.
4.4 Action at Law; No Remedy Exclusive. The Authority and/or the City may take whatever
action at law or in equity as may be necessary to enforce performance and observance of any
obligation, agreement or covenant of the Owner under this Agreement. No remedy herein
conferred upon or reserved by the Authority or City is intended to be exclusive of any other
available remedy or remedies, but each and every such remedy shall be cumulative and shall be in
addition to every other remedy given under this Agreement or now or hereafter existing at law, in
equity or by statute. No delay or omission to exercise any right or power accruing upon any default
shall impair any such right or power or shall be construed to be a waiver of such right or power,
but any such right or power may be exercised from time to time and as often as the Authority may
deem expedient. In order to entitle the Authority or City to exercise any remedy reserved to it in
this Agreement, it shall not be necessary to give any notice, other than such notice as may be herein
otherwise expressly required or required by law to be given.
ARTICLE 5. GENERAL PROVISIONS.
5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in this
Agreement, except in the event of fraud, waste, or illegal acts, or with regard to any indemnity
obligations imposed upon the Owner under the terms of this Agreement, (i) no partner, member,
officer or director, as applicable, of the Owner (each, an “Owner Affiliate”) shall have any direct,
indirect or derivative personal liability for the obligations of the Owner under this Agreement, and
(ii) the Authority and the City shall not exercise any rights or institute any action against any
Owner Affiliate directly, indirectly or derivatively for the payment of any sum of money that is or
may become payable hereunder.
5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the Apartment
Community in good condition and repair and in a prudent and businesslike manner. The Owner
shall comply with all laws, ordinances, rules, regulations, covenants, conditions, restrictions, and
orders of any governmental authority now or hereafter affecting the conduct or operation of the
Apartment Community or any part thereof or requiring any alteration or improvement to be made
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thereon. The Owner shall not commit, suffer, or permit any act to be done in, upon, or to the
Apartment Community or any part thereof in violation of any such laws, ordinances, rules,
regulations, or orders. The Owner hereby agrees that the Authority may conduct from time to time
through representatives, upon reasonable notice of no less than twenty-four (24) hours, on-site
inspections and observation of: (i) the maintenance and repair of the Apartment Community,
including a review of all maintenance and repair programs and practices and all reports and records
pertaining thereto, including records of expenditures relating thereto; and (ii) such other facilities,
practices, and records of the Owner relating to the Affordable Units as the Authority reasonably
deems to be necessary or appropriate in order to monitor the Owner’s compliance with the
provisions of this Agreement.
5.3 Notices. All notices (other than telephone notices), certificates or other communications
(other than telephone communications) required or permitted hereunder shall be sufficiently given
and should be deemed given when mailed by certified mail, postage prepaid, or twenty-four (24)
hours following delivery of such notice to Federal Express or similar commercial carrier for
overnight or next business day delivery, addressed as follows:
If to the Authority or City:
Palm Desert Housing Authority
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Housing Division
If to the Owner:
_____________________________
100 Pacifica, Suite 203
Irvine, CA 92618
Attn: President
5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or
understood by any of the Parties, or by any third persons, as creating the relationship of employer
and employee, principal and agent, limited or general partnership, or joint venture between the
City and the Owner or the Owner’s agents, employees or contractors, or the Authority and the
Owner or the Owner’s agents, employees or contractors, and the Owner shall at all times be
deemed an independent contractor and shall be wholly responsible for the manner in which it or
its agents, or both, perform the services required of it by the terms of this Agreement for the
operation of the Apartment Community. The Owner has and hereby retains the right to exercise
full control of employment, direction, compensation and discharge of all persons assisting in the
performance of services hereunder. In regards to the on-site operation of the Apartment
Community, the Owner shall be solely responsible for all matters relating to payment of its
employees, including compliance with Social Security, withholding and all other laws and
regulations governing such matters. The Owner agrees to be solely responsible for its own acts
and those of its agents and employees.
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5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim against
the City or the Authority by any person the Owner may have employed or with whom the Owner
may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing
or the performance of any work or services with respect to the operation of the Affordable Units.
5.6 Conflict of Interests. No member, official or employee of the Authority or City shall make
any decision relating to this Agreement which affects his or her personal interests or the interests
of any corporation, partnership or association in which he or she is directly or indirectly interested.
No officer or employee of the Owner shall acquire any interest in conflict with or inimical to the
interests of the City or the Authority.
5.7 Non-Liability of City Officials, Employees and Agents. No member, official, employee or
agent of the City or the Authority shall be personally liable to the Owner, or any successor in
interest, in the event of any default or breach by the City or the Authority or for any amount which
may become due to the Owner or successor in connection with this Agreement or on any obligation
of the City or the Authority under the terms of this Agreement.
5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific provisions
of this Agreement, and except for performance under the DDLA (which is governed by the terms
of the DDLA), performance of a construction obligation by any Party hereunder shall not be
deemed to be in default where it is due to an “Unavoidable Delay.” “Unavoidable Delay” means
a delay due to the elements (including unseasonable weather), fire, earthquakes or other acts of
God, strikes, pandemics, labor disputes, lockouts, shortages of construction materials experienced
generally in the construction industry in the local area, acts of the public enemy, riots, insurrections
or governmental regulation of the sale or transportation of materials, supply or labor; provided,
however, that to the extent a delay is caused by any other reason that the Owner reasonably believes
is beyond its control, the Owner may request, on a case-by-case basis, that the City and/or
Authority excuse any such delay as an Unavoidable Delay and the City and Authority shall make
their determinations as to whether such delay constitutes an Unavoidable Delay using their
reasonable judgment.
5.9 Indemnity. The Owner shall indemnify, defend and hold harmless the Authority and the
City and all officials, employees and agents of the Authority and/or the City (with counsel
reasonably satisfactory to the Authority) against any costs, liabilities, damages or judgments
arising from claims or litigation of any nature whatsoever brought by third parties and directly or
indirectly arising from the Owner’s ownership or operation of the Apartment Community, or the
Owner’s performance of its obligations under this Agreement, and in the event of settlement,
compromise or judgment hold the City and the Authority free and harmless therefrom. The
provisions of this Section 5.9 shall survive the term of this Agreement.
5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this Agreement,
the rights and remedies of the Parties are cumulative, and the exercise or failure to exercise one or
more of such rights or remedies by either Party shall not preclude the exercise by it, at the same
time or different times, of any right or remedy for the same default or any other default by the
other Party. No waiver of any default or breach by the Owner hereunder shall be implied from
any omission by the Authority or the City to take action on account of such default if such default
persists or is repeated, and no express waiver shall affect any default other than the default
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specified in the waiver, and such wavier shall be operative only for the time and to the extent
therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed
as a waiver of any subsequent breach of the same covenant, term or condition. The consent or
approval by the City or the Authority to or of any act by the Owner requiring further consent or
approval shall not be deemed to waive or render unnecessary the consent or approval to or of any
subsequent similar act. The exercise of any right, power, or remedy shall in no event constitute a
cure or a waiver of any default under this Agreement, nor shall it invalidate any act done pursuant
to notice of default, or prejudice the Authority in the exercise of any right, power, or remedy
hereunder or under any agreements ancillary or related hereto.
5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of
the State of California.
5.12 Severability. If any term, provision, covenant or condition of this Agreement is held in a
final disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall continue in full force and effect unless the rights and obligations of the
Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.
5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce the
terms of this Agreement or to collect damages as a result of any breach thereof, the Party prevailing
in any such action shall be entitled to recover against the Party not prevailing all reasonable
attorneys’ fees and costs incurred in such action (including all legal fees incurred in any appeal or
in any action to enforce any resulting judgment), as awarded by a court of competent jurisdiction.
5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit
of the permitted heirs, administrators, executors, successors in interest and assigns of each of the
Parties. Any reference in this Agreement to a specifically named Party shall be deemed to apply
to any successor, heir, administrator, executor or assign of such Party who has acquired an interest
in compliance with the terms hereof or under law.
5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.
5.16 Approvals by the Authority or City. Any approvals required under this Agreement to be
made by the Authority shall be made by the Executive Director of the Authority or his or her
designee, and any approvals by the City shall be made by the City Manager or his or her designee.
Any such approval or consent shall not be unreasonably withheld, conditioned, delayed or made,
except where it is specifically provided herein that another standard applies, in which case the
specified standard shall apply.
5.17 Complete Understanding of the Parties. The DDLA, this Agreement and the attached
Exhibits constitute the entire understanding and agreement of the Parties with respect to the matters
described herein.
5.18 Covenants to Run With the Land. The Owner hereby subjects the Apartment Community
to the covenants, reservations, and restrictions set forth in this Agreement. The Authority, the City
and the Owner hereby declare their express intent that the covenants, reservations, and restrictions
set forth herein shall be deemed covenants running with the land and shall pass to and be binding
upon the Owner’s successors in title to the Apartment Community; provided, however, that on the
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termination of this Agreement said covenants, reservations and restrictions shall expire. Each and
every contract, deed or other instrument hereafter executed covering or conveying the Apartment
Community or any portion thereof shall conclusively be held to have been executed, delivered and
accepted subject to such covenants, reservations and restrictions, regardless of whether such
covenants, reservations and restrictions are set forth in such contract, deed or other instruments.
No breach of any of the provisions of this Agreement shall defeat or render invalid the lien of a
mortgage or deed of trust made in good faith and for value encumbering the Property or any interest
of the Owner therein.
5.19 Burden and Benefit. The Authority, the City and the Owner hereby declare their
understanding and intent that: (i) the burden of the covenants, reservations, restrictions, and
agreements set forth herein touch and concern the Property and the Apartment Community, in that
Owner’s legal interest in the Apartment Community is rendered less valuable thereby, (ii) the
covenants, reservations, restrictions, and agreements set forth herein directly benefit the Property
and the Apartment Community (a) by enhancing and increasing the enjoyment and use of the
Apartment Community by certain Extremely Low, 59% AMI Low or 80% AMI Low Income
Households, the intended beneficiaries of such covenants, reservations, restrictions, and
agreements, (b) by making possible the obtaining of advantageous financing for the Property and
the Apartment Community, and (c) by furthering the public purposes advanced by the Authority
and the City, and (iii) the covenants, reservations, restrictions and agreements set forth herein shall
run with the Property and shall be binding for the benefit of and enforceable by the Authority and
the City and their successors and assigns for the entire term of this Agreement.
5.20 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original, but all of which shall constitute one and the same instrument.
5.21 Amendments. This Agreement may be amended only by the written agreement of the
Authority, the City and the Owner.
WHEREFORE, the undersigned has executed this Agreement as of the date first-above
written.
OWNER:
_____________________________
AUTHORITY:
PALM DESERT HOUSING AUTHORITY, a
public body, corporate and politic
By: ________________________
Print Name: ___________________
Title: ________________________
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Page 451 of 855
CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
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EXHIBIT “B”
HOUSEHOLD INCOME CERTIFICATION
(Attached)
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EXHIBIT “C”
CERTIFICATE OF CONTINUING COMPLIANCE
(Attached)
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Exhibit H-2 goes here
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RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: _________________
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
This Document is recorded for the benefit of the City of Palm Desert and is exempt
from recording fees pursuant to Sections 6103, 27383 and 27388.1
of the California Government Code.
HOUSING AGREEMENT
(LMIHF Agreement; Phase I)
by and between
the PALM DESERT HOUSING AUTHORITY
and
__________________________
DATED AS OF _________ ____, 202__
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HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the “Agreement”) is dated as of ______________ ___,
202__, and is by and between the PALM DESERT HOUSING AUTHORITY, a public body,
corporate and politic (the “Authority”),and ____________________________ (the “Owner”).
Authority, City and Owner are sometimes referred to herein individually as a “Party” and
collectively as “Parties”.
RECITALS
This Agreement is predicated upon the following facts:
A. The Owner is the owner of the land described in “Exhibit A” attached hereto (the
“Property”).
B. The City, the Authority and Owner have entered into that certain Amended and
Restated Disposition, Development and Loan Agreement dated in April, 2024 (“DDLA”),
pursuant to which the City conveyed the Property to the Owner for the development described in
the DDLA (“Development” or “Apartment Community”) pursuant to which the Authority made a
loan to Owner for the purchase price of the Property (“City Loan”). Capitalized terms used but not
defined herein shall have the meaning set forth in the DDLA.
C. Pursuant to the DDLA, the Owner executed a Promissory Note in favor of
Authority and a deed of trust in favor of Authority securing such Promissory Note and the
Authority is obligated to make disbursements of loan proceeds subject to and in accordance with
the DDLA.
D. The Authority loan was made with moneys in the Low and Moderate Income
Housing Asset Fund established and held by the Authority as successor to the housing assets of
the former Palm Desert Redevelopment Agency, and California law and the DDLA require that
the Authority obtain recorded restrictions on the Property and Development thereon restricting the
apartment units on the Property to extremely low and low income households at an affordable rent.
E. Additionally, the Owner has applied for and obtained a density bonus from the City
for the Development which permits greater density and less parking than would otherwise be
required, and in exchange, the City also requires that the apartment units be so restricted, and that
such restrictions not be subordinate or subordinated to any deeds of trust or other consensual liens.
Such restrictions are contained in a separate Housing Agreement between the City and the Owner.
G. This Agreement is the restriction agreement described in Recital D above.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Authority, the City and the Owner hereby agree as follows:
ARTICLE 1. DEFINITIONS AND INTERPRETATION.
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1.1 Definitions.
Capitalized terms used herein shall have the following meanings unless the context in
which they are used clearly requires otherwise.
“Affordable Units” shall mean 119 of the 120 units in the Apartment Community
available to and occupied by, or held vacant for occupancy only by, Extremely Low Income
Households, 59% AMI Low Income Households and 80% AMI Low Income Households and
rented at an Affordable Rent. Specifically, the Affordable Units consist of 36 units for Extremely
Low Income Households, 60 units for 59% AMI Low Income Households and 23 units for 80%
AMI Low Income Households. The Affordable Units will include the number of bedrooms shown
on the following table:
Bedroom
Size
Extremely
Low
Income
Household
Affordable
Units
59% AMI
Low
Income
Household
Affordable
Units)
80% AMI
Low
Income
Household
Affordable
Units
One 6 9 0
Two 27 48 0
Three 3 4 23
Total 36 61 23
“Affordable Rent” shall mean rent for an Affordable Unit, including a Reasonable Utility
Allowance, determined pursuant to California Health and Safety Code Section 50053(b) and the
state regulations adopted by the California Department of Housing and Community Development
(“HCD”) pursuant thereto, as amended from time to time, based upon the AMI adjusted for a
Household Size Appropriate to the Affordable Unit. More specifically, (1) for each of the 36
Affordable Units reserved for Extremely Low Income Households, the maximum monthly
Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%)
of thirty percent (30%) of the AMI, adjusted for a Household Size Appropriate to the Affordable
Unit, divided by twelve, (2) for each of the 60 Affordable Units reserved for 59% AMI Low
Income Households, the maximum monthly Affordable Rent, including a Reasonable Utility
Allowance, may not exceed thirty percent (30%) of fifty-nine percent (59%) of the AMI, adjusted
for a Household Size Appropriate to the Affordable Unit, divided by twelve, and (3) for each of
the 23 Affordable Units reserved for 80% AMI Low Income Households , the maximum monthly
Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%)
of fifty-nine percent (59%) of the AMI, adjusted for a Household Size Appropriate to the
Affordable Unit, divided by twelve.
“AMI” shall mean the area median income for Riverside County as published by the
California Department of Housing and Community Development pursuant to Health and Safety
Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state
regulations adopted pursuant to California Health and Safety Code Section 50052.5.
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“Extremely Low Income Household” shall mean persons and families whose income
does not exceed the qualifying limits for extremely low income households set forth in California
Health and Safety Code Section 50106 and Title 25 of the California Code of Regulations, as such
statute and regulations may be amended from time to time.
“Household Size Appropriate to the Affordable Unit” in the absence of pertinent federal
statutes or regulations applicable to the Apartment Community, shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h), as amended from time to time.
“59% AMI Low Income Household” shall mean persons and families whose income does
not exceed the 59% of the AMI as set forth in California Health and Safety Code Section 50079.5
and Title 25 of the California Code of Regulations, including Section 6912, as such statute and
regulations may be amended from time to time.
“80% AMI Low Income Household” shall mean persons and families whose income does
not exceed the qualifying limits for lower income households set forth in California Health and
Safety Code Section 50079.5 and Title 25 of the California Code of Regulations, including Section
6912, as such statute and regulations may be amended from time to time.
“Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a
tenant (not including telephone, internet or cable service) utilizing the utility allowance schedule
published annually by the Housing Authority of the County of Riverside.
“Required Covenant Period” shall mean the period commencing on the date all units in
the Apartment Community have been completed as evidenced by the City’s issuance of a final
Certificate of Occupancy for the Apartment Community, and ending as of the fifty-fifth (55th)
anniversary thereof.
1.2 Rules of Construction.
1.2.1 The singular form of any word used herein, including the terms defined herein shall
include the plural and vice versa. The use herein of a word of any gender shall include correlative
words of all genders.
1.2.2 Unless otherwise specified, references to articles, sections, and other subdivisions
of this Agreement are to the designated articles, sections, and other subdivisions of this Agreement
as originally executed. The words “hereof,” “herein,” “hereunder,” and words of similar import
shall refer to this Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to effectuate the purposes
set forth in this Agreement and to sustain the validity hereof.
1.2.4 Headings or titles of the several articles and sections hereof and the table of contents
appended to copies hereof shall be solely for convenience of reference and shall not affect the
meaning, construction, or effect of the provisions hereof.
ARTICLE 2. ONGOING APARTMENT COMMUNITY OBLIGATIONS.
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2.1 Apartment Community and Affordable Units.
The Owner shall develop and construct the Apartment Community within a portion of the
Project on the Property in conformity with the DDLA. Thereafter, during the Required Covenant
Period, the Owner agrees that not less than 239 units in the Apartment Community shall be
Affordable Units, meaning that (a) 36 of such units shall be continually available to and occupied
by, or held vacant for occupancy only by, Extremely Low Income Households, (b) 61 of such units
shall be continually available to and occupied by, or held vacant for occupancy only by, 59% AMI
Low Income Households, and (c) 23 of such units shall be continually available to and occupied
by, or held vacant for occupancy only by, 80% AMI Low Income Households. All of the rental
units in the Apartment Community shall be similarly constructed and generally constructed at the
same time. The Affordable Units shall be of comparable quality to those rental units in the
Apartment Community which are available to other tenants. The Owner agrees that, to the extent
commercially reasonable, Affordable Units will not be underutilized. No persons shall be
permitted to occupy any Affordable Unit in excess of applicable limit of maximum occupancy set
by the City’s Municipal Code and the laws of the State of California, or by Authority Resolution
HA-84 adopted on December 14, 2017 (and the occupancy policy attached as Exhibit A thereto)
and any amendments or replacements thereof.
2.2 Residential Rental Property.
The Owner covenants to operate the Apartment Community as residential rental property.
During the Required Covenant Period, the Affordable Units will be held and used for the purpose
of providing residential living, and the Owner shall own, manage and operate, or cause the
management and operation of, the Apartment Community to provide such affordable rental
housing. All of the rental units in the Apartment Community with the exception of one
(1)manager’s units, will be available for rental on a continuous basis to members of the general
public and the Owner will not give preference to any particular class or group in renting the units
in the Apartment Community, except as required under this Agreement. The Owner shall not
convert any Affordable Unit(s) to condominiums or cooperative ownership or sell condominium
or cooperative conversion rights to any Affordable Unit(s) during the term of this Agreement.
2.3 Extremely Low, 59% AMI Low and 80% AMI Low Income Households.
2.3.1 Income Qualification; Initial Certification. Subject to the applicable provisions
hereof, throughout the Required Covenant Period, Affordable Units will be exclusively occupied
by, or available for occupancy only by, Extremely Low, 59% AMI Low and 80% AMI Low
Income Households as described above. Prior to the rental or lease of an Affordable Unit and in
accordance with Section 2.6 hereof, the Owner will obtain and maintain on file a Household
Income Certification (“Income Certification”) substantially in the form attached hereto as Exhibit
“B” and incorporated herein by this reference for each Extremely Low, 59% AMI Low and 80%
AMI Low Income Households, as applicable, and shall provide copies of same to the Authority at
such times as the Authority may, from time to time, reasonably require. In addition, the Owner
will provide such further information as may reasonably be required in the future by the Authority.
The Income Certification shall be dated immediately prior to the applicable household’s initial
occupancy of an Affordable Unit. The Owner shall make a good faith effort to verify that the
income provided by an applicant in an Income Certification is accurate by taking any one or more
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of the following steps as part of the verification process for all household members over the age
of eighteen (18) as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods;
(ii) Obtain a true copy of an income tax return for the most recent tax year in
which a return was filed;
(iii) Obtain an income verification form from the household member’s current
employer;
(iv) Obtain an income verification form from the Social Security Administration
and/or the State Department of Social Services, or its equivalent, if the household member receives
assistance from either of those agencies;
(v) If the household member is unemployed and has no tax return, obtain
another form of independent verification; or
(vi) Obtain such other documentation as may be reasonably acceptable pursuant
to Title 25 of the California Code of Regulations, as amended from time to time, to verify income.
2.3.2 Certificate of Continuing Program Compliance; Annual Report; Annual
Monitoring/Administration Fee. Throughout the Required Covenant Period, the Owner will
prepare and submit to the Authority, at such periodic frequency as the Authority might reasonably
require, but not more than once annually, a Certificate of Continuing Compliance in substantially
the form attached hereto as Exhibit “C” and incorporated herein by this reference, and executed
by the Owner. The Owner will also prepare and submit to the Authority on or before each
anniversary date of the commencement of the Required Covenant Period, and for the preceding
calendar year, a report in form and substance reasonably satisfactory to the Authority summarizing
the vacancy rate of the Apartment Community, including the number of Affordable Units held
vacant for occupancy by Extremely Low, 59% AMI Low and 80% AMI Low Income Households
for such calendar year. Owner shall pay an annual monitoring/administration fee in the amount of
Ten Thousand Dollars ($10,000.00), increasing by three percent (3%) annually, concurrently with
Developer’s annual payments of Residual Receipts to Authority under the Authority Loan.
2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent shall be
charged to the Extremely Low, 59% AMI Low and 80% Low Income Household occupants of
Affordable Units, as more specifically described above.
2.5 Rent Increases. Rents for Affordable Units may be increased not more than once per year
and twelve (12) months must have elapsed since the date of the tenant’s initial occupancy or the
last rent increase. The rents charged following such an increase, or upon a vacancy and new
occupancy by an Extremely Low, 59% AMI Low or 80% AMI Low Income Household, as
applicable, shall not exceed an Affordable Rent. The Owner shall, consistent with applicable law,
give proper written notice to tenants of all rent increases, and upon written request, provide the
Authority with reasonable detail concerning the amount of and rationale for such rent increases.
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2.6 Income Recertification of Affordable Units. Annually, on the anniversary date of
occupancy of an Affordable Unit by an Extremely Low, 59% AMI Low or 80% AMI Low Income
Household, as applicable, the Owner shall obtain and maintain on file an annual income
certification, in form and substance reasonably satisfactory to the Authority, from each household
occupying an Affordable Unit, based upon the current income of each household member over the
age of eighteen (18). The Owner shall make a good faith effort to verify that the income provided
by the household is accurate in accordance with Section 2.3.1, above.
2.6.1 A rental unit occupied by a household that qualifies as an Extremely Low, 59%
AMI Low or 80% AMI Low Income Household, as applicable, at the time the household first
occupies an Affordable Unit shall be deemed to continue to be so occupied until a recertification
of such household’s income demonstrates that such household no longer qualifies as an Extremely
Low, 59% AMI Low or 80% AMI Low Income Household, as applicable. At such time as a
household ceases to qualify as an Extremely Low, 59% AMI Low or 80% AMI Low Income
Household, as applicable, based on income recertification, the Owner shall designate the next
available unit (one that is not occupied by a tenant) with the same number of bedrooms as the
occupied Affordable Unit and it shall be leased to an Extremely Low, 59% AMI Low or 80% AMI
Low Income Household, as applicable, so that the number of Affordable Units occupied by or
reserved for occupancy by Extremely Low, 59% AMI Low or 80% Low Income Households will
remain constant. For purposes of this Agreement, such designated unit will be considered an
Affordable Unit if it is held vacant and available solely for occupancy by an Extremely Low, 59%
AMI Low or 80% AMI Low Income Household, as applicable, and, upon occupancy, the income
eligibility of the household as an Extremely Low, 59% AMI Low or 80% AMI Low Income
Household is verified and the unit is rented at Affordable Rent.
2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit to an
Extremely Low, 59% AMI Low or 80% AMI Low Income Household, the Owner shall require
the tenant to execute a written lease or occupancy agreement. The Owner shall maintain on file
throughout the Required Covenant Period and for a four (4) year period thereafter, the executed
lease or occupancy agreement of each tenant occupying an Affordable Unit. The form of lease or
occupancy agreement used by the Owner for the lease or rental of Affordable Units shall be that
which is reasonable and customary in residential leasing. In addition, each lease or occupancy
agreement for an Affordable Unit shall (i) provide that the tenants of such Affordable Unit shall
be subject to annual recertification of income and subject to rental increases in accordance with
Sections 2.5 and 2.6 of this Agreement, and (ii) contain a provision to the effect that the Owner
has relied on the income certification and supporting information supplied by the tenant in
determining qualification for occupancy of the Affordable Unit, and that any material misstatement
in such certification (whether or not intentional) may be cause for immediate termination of such
lease or occupancy agreement.
2.7.1 No Discrimination. Owner covenants, by and for itself and any successors in
interest, that there shall be no discrimination against or segregation of any person or group of
persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government
Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease,
sublease, transfer, use, occupancy, tenure or enjoyment of the Site, nor shall Owner, itself or any
person claiming under or through it, establish or permit any such practice or practices of
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discrimination or segregation with reference to the selection, location, number, use or occupancy
of tenants, lessees, subtenants, subleases or vendees in the Site.
2.7.2 Required Clauses. All deeds, subleases or contracts made relative to the Site, the
improvements thereon or any part thereof, shall contain or be subject to substantially the following
nondiscrimination and nonsegregation clauses:
"(1) Grantee herein covenants by and for itself, its successors and assigns, and
all persons claiming under or through them, that there shall be no discrimination against or
segregation of, any person or group of persons on account of any basis listed in subdivision (a)
and (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926,
12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955 and Section
12955.2 of the Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or
enjoyment of the property herein conveyed, nor shall the grantee or any person claiming under or
through the grantee, establish or permit any practice or practices of discrimination or segregation
with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the property herein conveyed. The foregoing covenant shall run with the
land.
(2) Notwithstanding paragraph (1), with respect to familial status, paragraph
(1) shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of
the Government Code. With respect to familial status, nothing in paragraph (1) shall be construed
to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing
for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and
subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to paragraph
(1)."
(a) In leases: “The lessee herein covenants, by and for himself or
herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or
through him or her, and this lease is made and accepted upon and subject to the following
conditions:
(b) That there shall be no discrimination against or segregation of any
person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955
of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m)
and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government
Code, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the land
herein leased, nor shall the lessee, himself or herself or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subleases,
subtenants or vendees in the land herein leased.
(c) Notwithstanding paragraph (a), with respect to familial status,
paragraph (a) shall not be construed to apply to housing for older persons, as defined in Section
12955.9 of the Government Code. With respect to familial status, nothing in paragraph (a) shall
be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11 and 799.5 of the Civil Code, relating
to housing for senior citizens. Subdivisions (d) of Section 51 and Section 1360 of the Civil Code
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and subdivision (n), (o), and (p) of Section 12955 of the Government Code shall apply to paragraph
(a).”
(3) In contracts: “There shall be no discrimination against or segregation of
any person or group of persons on any basis listed in subdivision (a) or (d) of Section 12955 of the
Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and
paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code,
in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the
transferee, himself or herself or any person claiming under or through him or her, establish or
permit any such practice or practices of discrimination or segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subleases, subtenants or vendees
in the land.
2.7.3 The Owner shall refrain from restricting the rental or lease of Affordable Units on
the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any
person.
2.7.4 The Owner shall refrain from restricting the rental or lease of Affordable Units on
the basis of race, color, religion, sex, marital status, disability, ancestry or national origin of any
person.
2.7.5 The Authority is the beneficiary of the terms and provisions of the covenants herein,
both for and in its own right and for the purposes of protecting the interests of the community and
other parties, public or private, for whose benefit these covenants running with the land have been
provided.
2.8 Security Deposits. The Owner may require security deposits on Affordable Units in
amounts which are consistent with applicable law.
2.9 Additional Information; Books and Records. The Owner shall provide any additional
information concerning the Affordable Units reasonably requested by the Authority. The Owner
will maintain complete and accurate records pertaining to the Affordable Units throughout the
Covenant Period and for a four (4) year period thereafter. The Authority shall have the right upon
written notice of no less than two (2) business days to the Owner, at any time during normal
business hours of 9:00 am to 5:00 pm, to examine of all books, records or other documents
maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit,
including all executed leases or occupancy agreements and all Income Certifications, and obtain
copies of any requested executed leases, occupancy agreements and Income Certifications within
ten (10) business days following such examination and the Authority’s written request.
2.10 Specific Performance. The Owner hereby agrees that specific enforcement of the Owner’s
agreement to comply with the allowable rent and occupancy restrictions and covenants contained
herein is one of the reasons and consideration for the Authority having entered into the DDLA,
and that, in the event of the Owner’s breach of such requirements, potential monetary damages to
the Authority and City, as well as to existing and prospective Extremely Low, 59% AMI Low or
80% AMI Low Income Households, would be difficult, if not impossible, to evaluate and quantify.
Therefore, in addition to any other relief to which the Authority or City may be entitled as a
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consequence of the breach hereof, the Owner agrees to the imposition of the remedy of specific
performance against it in the case of any event of default by the Owner in complying with any
provision of this Agreement beyond any applicable notice and cure period.
2.11 Audit. The Authority shall have the right to perform an audit of the Apartment Community
to determine compliance with the provisions of this Agreement. Such audit shall not be undertaken
more often than once each calendar year. All costs and expenses associated with the audit shall
be paid by the Owner.
2.12 Management. The management agent of the Owner and any other contractor of Owner
who provides services to occupants of the Apartment Community shall be subject to the reasonable
written approval of the Authority. The Owner and/or the management agent (if not the Owner)
shall operate the Apartment Community in a manner that will provide decent, safe and sanitary
residential facilities to the occupants thereof, and will comply with provisions of this Agreement.
Upon the written request of the Authority, the Owner shall cooperate with the Authority in the
periodic review (but not more than once each calendar year) of the management practices and
financial status of the Affordable Units. The purpose of each periodic review will be to enable the
Authority to determine if the Affordable Units are being operated and managed in accordance with
the requirements and standards of this Agreement. Results of such Authority review shall be
provided to the City and to the Owner, and the Authority shall have the right to require the Owner
to make modifications that are reasonably necessary to ensure the objectives of this Agreement are
met.
2.13 Binding for Term. t is intended by the Parties that except as otherwise expressly provided
herein, the provisions of this Agreement shall apply to the Apartment Community throughout the
entire term hereof, as established in Section 3.1 below.
ARTICLE 3. TERM AND RECORDATION.
3.1 Term of Agreement. This Agreement shall remain in full force and effect for the Required
Covenant Period, unless the Owner and the Authority agree, in writing, to terminate this
Agreement prior to the expiration of the Required Covenant Period. Unless terminated earlier
pursuant to the prior sentence of this Section 3.1, or Section 3.3 below, the Parties intend that the
provisions and effect of this Agreement and specifically of Article 2 hereof, shall remain in full
force and effect for the entire Required Covenant Period.
3.2 Agreement to Record. The Owner represents, warrants, and covenants that this Agreement
will be recorded in the real property records of Riverside County.
3.2 Early Termination of Restrictions. Notwithstanding the generality of the foregoing
provisions of this Article 3 or any other provisions hereof, this Agreement and all of the terms and
restrictions contained herein shall be suspended during involuntary noncompliance as a result of
unforeseen events such as fire or act of God which leaves the entire Apartment Community
uninhabitable (and the proceeds of insurance available to the Owner as a result thereof are
insufficient to reconstruct the Apartment Community), or a change in a federal or state law or an
action by the federal government, the State or a court of competent jurisdiction, after the date of
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recordation hereof, that prevents the Authority from enforcing the provisions of this Agreement,
or a condemnation or a similar event.
ARTICLE 4. DEFAULT; REMEDIES.
4.1 An Event of Default. Each of the following shall constitute an “Event of Default” by the
Owner under this Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any of the
conditions, terms, or covenants of any agreement with the Authority or the City concerning the
Apartment Community, or of this Agreement, if such failure remains uncured thirty (30) days after
written notice of such failure from the Authority to the Owner in the manner provided herein or,
with respect to a default that cannot be cured within thirty (30) days, if the Owner fails to
commence such cure within such thirty (30) day period or thereafter fails to diligently and
continuously proceed with such cure to completion. However, if a different period or notice
requirement is specified under any other section of this Agreement, then the specific provision
shall control.
4.1.2 Any representation or warranty contained in this Agreement or in any application,
financial statement, certificate, or report submitted by the Owner to the Authority or the City
proves to have been incorrect in any material respect when made..
4.1.3 A court having jurisdiction shall have made or rendered a decree or order: (i)
adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition seeking
reorganization of the Owner or seeking any arrangement on behalf of the Owner under the
bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any
state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner
in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or
liquidation of the Owner, providing, however, that any such decree or order described in any of
the foregoing subsections shall have continued unstayed or undischarged for a period of ninety
(90) days.
4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or suffered
a sequestration or attachment or execution on any substantial part of its property, unless the
property so assigned, sequestered, attached, or executed upon shall have been returned or released
within ninety (90) days after such event (unless a lesser time period is permitted for cure hereunder)
or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner is diligently
working to obtain a return or release of the property and the City’s and the Authority’s interests
hereunder are not imminently threatened in its reasonable business judgment, then the City shall
not declare a default under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or dissolved.
4.1.6 The seizure or appropriation of all or, in the reasonable opinion of the Authority, a
substantial part of the Apartment Community, except for condemnation initiated by the City, the
Authority or any other governmental agency or authority.
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The seizure or appropriation of all or, in the reasonable opinion of the Authority, a
substantial part of the Apartment Community, except for condemnation initiated by the City, the
Authority or any other governmental agency or authority.
4.1.7 There should occur any default declared by any lender under any loan document or
deed of trust relating to any loan made in connection with the Apartment Community, which loan
is secured by a deed of trust or other instrument affecting the Apartment Community, and such
default remains uncured following the expiration of any applicable cure period.
4.2 Option to Lease. [INTENTIONALLY OMITTED}
4.3 Authority Remedies. The Authority and City shall each have the right to mandamus or
other suit, action or proceeding at law or in equity to require the Owner to perform its obligations
and covenants under this Agreement or to enjoin acts or things which may be unlawful or in
violation of the provisions hereof, provided that in any such case the Authority has first provided
the required notice of any alleged default and the Owner has had the requisite opportunity to cure
pursuant to Section 4.1.1, above.
4.4 Action at Law; No Remedy Exclusive. The Authority and/or the City may take whatever
action at law or in equity as may be necessary to enforce performance and observance of any
obligation, agreement or covenant of the Owner under this Agreement. No remedy herein
conferred upon or reserved by the Authority or City is intended to be exclusive of any other
available remedy or remedies, but each and every such remedy shall be cumulative and shall be in
addition to every other remedy given under this Agreement or now or hereafter existing at law, in
equity or by statute. No delay or omission to exercise any right or power accruing upon any default
shall impair any such right or power or shall be construed to be a waiver of such right or power,
but any such right or power may be exercised from time to time and as often as the Authority may
deem expedient. In order to entitle the Authority or City to exercise any remedy reserved to it in
this Agreement, it shall not be necessary to give any notice, other than such notice as may be herein
otherwise expressly required or required by law to be given.
ARTICLE 5. GENERAL PROVISIONS.
5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in this
Agreement, except in the event of fraud, waste, or illegal acts, or with regard to any indemnity
obligations imposed upon the Owner under the terms of this Agreement, (i) no partner, member,
officer or director, as applicable, of the Owner (each, an “Owner Affiliate”) shall have any direct,
indirect or derivative personal liability for the obligations of the Owner under this Agreement, and
(ii) the Authority and the City shall not exercise any rights or institute any action against any
Owner Affiliate directly, indirectly or derivatively for the payment of any sum of money that is or
may become payable hereunder.
5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the Apartment
Community in good condition and repair and in a prudent and businesslike manner. The Owner
shall comply with all laws, ordinances, rules, regulations, covenants, conditions, restrictions, and
orders of any governmental authority now or hereafter affecting the conduct or operation of the
Apartment Community or any part thereof or requiring any alteration or improvement to be made
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thereon. The Owner shall not commit, suffer, or permit any act to be done in, upon, or to the
Apartment Community or any part thereof in violation of any such laws, ordinances, rules,
regulations, or orders. The Owner hereby agrees that the Authority may conduct from time to time
through representatives, upon reasonable notice of no less than twenty-four (24) hours, on-site
inspections and observation of: (i) the maintenance and repair of the Apartment Community,
including a review of all maintenance and repair programs and practices and all reports and records
pertaining thereto, including records of expenditures relating thereto; and (ii) such other facilities,
practices, and records of the Owner relating to the Affordable Units as the Authority reasonably
deems to be necessary or appropriate in order to monitor the Owner’s compliance with the
provisions of this Agreement.
5.3 Notices. All notices (other than telephone notices), certificates or other communications
(other than telephone communications) required or permitted hereunder shall be sufficiently given
and should be deemed given when mailed by certified mail, postage prepaid, or twenty-four (24)
hours following delivery of such notice to Federal Express or similar commercial carrier for
overnight or next business day delivery, addressed as follows:
If to the Authority or City:
Palm Desert Housing Authority
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Housing Division
If to the Owner:
__________________________
100 Pacifica, Suite 203
Irvine, CA 92618
Attn: President
5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted or
understood by any of the Parties, or by any third persons, as creating the relationship of employer
and employee, principal and agent, limited or general partnership, or joint venture between the
City and the Owner or the Owner’s agents, employees or contractors, or the Authority and the
Owner or the Owner’s agents, employees or contractors, and the Owner shall at all times be
deemed an independent contractor and shall be wholly responsible for the manner in which it or
its agents, or both, perform the services required of it by the terms of this Agreement for the
operation of the Apartment Community. The Owner has and hereby retains the right to exercise
full control of employment, direction, compensation and discharge of all persons assisting in the
performance of services hereunder. In regards to the on-site operation of the Apartment
Community, the Owner shall be solely responsible for all matters relating to payment of its
employees, including compliance with Social Security, withholding and all other laws and
regulations governing such matters. The Owner agrees to be solely responsible for its own acts
and those of its agents and employees.
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5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim against
the City or the Authority by any person the Owner may have employed or with whom the Owner
may have contracted relative to the purchase of materials, supplies or equipment, or the furnishing
or the performance of any work or services with respect to the operation of the Affordable Units.
5.6 Conflict of Interests. No member, official or employee of the Authority or City shall make
any decision relating to this Agreement which affects his or her personal interests or the interests
of any corporation, partnership or association in which he or she is directly or indirectly interested.
No officer or employee of the Owner shall acquire any interest in conflict with or inimical to the
interests of the City or the Authority.
5.7 Non-Liability of City Officials, Employees and Agents. No member, official, employee or
agent of the City or the Authority shall be personally liable to the Owner, or any successor in
interest, in the event of any default or breach by the City or the Authority or for any amount which
may become due to the Owner or successor in connection with this Agreement or on any obligation
of the City or the Authority under the terms of this Agreement.
5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific provisions
of this Agreement, and except for performance under the DDLA (which is governed by the terms
of the DDLA), performance of a construction obligation by any Party hereunder shall not be
deemed to be in default where it is due to an “Unavoidable Delay.” “Unavoidable Delay” means
a delay due to the elements (including unseasonable weather), fire, earthquakes or other acts of
God, strikes, pandemics, labor disputes, lockouts, shortages of construction materials experienced
generally in the construction industry in the local area, acts of the public enemy, riots, insurrections
or governmental regulation of the sale or transportation of materials, supply or labor; provided,
however, that to the extent a delay is caused by any other reason that the Owner reasonably believes
is beyond its control, the Owner may request, on a case-by-case basis, that the City and/or
Authority excuse any such delay as an Unavoidable Delay and the City and Authority shall make
their determinations as to whether such delay constitutes an Unavoidable Delay using their
reasonable judgment.
5.9 Indemnity. The Owner shall indemnify, defend and hold harmless the Authority and the
City and all officials, employees and agents of the Authority and/or the City (with counsel
reasonably satisfactory to the Authority) against any costs, liabilities, damages or judgments
arising from claims or litigation of any nature whatsoever brought by third parties and directly or
indirectly arising from the Owner’s ownership or operation of the Apartment Community, or the
Owner’s performance of its obligations under this Agreement, and in the event of settlement,
compromise or judgment hold the City and the Authority free and harmless therefrom. The
provisions of this Section 5.9 shall survive the term of this Agreement.
5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this Agreement,
the rights and remedies of the Parties are cumulative, and the exercise or failure to exercise one or
more of such rights or remedies by either Party shall not preclude the exercise by it, at the same
time or different times, of any right or remedy for the same default or any other default by the
other Party. No waiver of any default or breach by the Owner hereunder shall be implied from
any omission by the Authority or the City to take action on account of such default if such default
persists or is repeated, and no express waiver shall affect any default other than the default
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specified in the waiver, and such wavier shall be operative only for the time and to the extent
therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed
as a waiver of any subsequent breach of the same covenant, term or condition. The consent or
approval by the City or the Authority to or of any act by the Owner requiring further consent or
approval shall not be deemed to waive or render unnecessary the consent or approval to or of any
subsequent similar act. The exercise of any right, power, or remedy shall in no event constitute a
cure or a waiver of any default under this Agreement, nor shall it invalidate any act done pursuant
to notice of default, or prejudice the Authority in the exercise of any right, power, or remedy
hereunder or under any agreements ancillary or related hereto.
5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the laws of
the State of California.
5.12 Severability. If any term, provision, covenant or condition of this Agreement is held in a
final disposition by a court of competent jurisdiction to be invalid, void or unenforceable, the
remaining provisions shall continue in full force and effect unless the rights and obligations of the
Parties have been materially altered or abridged by such invalidation, voiding or unenforceability.
5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce the
terms of this Agreement or to collect damages as a result of any breach thereof, the Party prevailing
in any such action shall be entitled to recover against the Party not prevailing all reasonable
attorneys’ fees and costs incurred in such action (including all legal fees incurred in any appeal or
in any action to enforce any resulting judgment), as awarded by a court of competent jurisdiction.
5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit
of the permitted heirs, administrators, executors, successors in interest and assigns of each of the
Parties. Any reference in this Agreement to a specifically named Party shall be deemed to apply
to any successor, heir, administrator, executor or assign of such Party who has acquired an interest
in compliance with the terms hereof or under law.
5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.
5.16 Approvals by the Authority or City. Any approvals required under this Agreement to be
made by the Authority shall be made by the Executive Director of the Authority or his or her
designee, and any approvals by the City shall be made by the City Manager or his or her designee.
Any such approval or consent shall not be unreasonably withheld, conditioned, delayed or made,
except where it is specifically provided herein that another standard applies, in which case the
specified standard shall apply.
5.17 Complete Understanding of the Parties. The DDLA, this Agreement and the attached
Exhibits constitute the entire understanding and agreement of the Parties with respect to the matters
described herein.
5.18 Covenants to Run With the Land. The Owner hereby subjects the Apartment Community
to the covenants, reservations, and restrictions set forth in this Agreement. The Authority, the City
and the Owner hereby declare their express intent that the covenants, reservations, and restrictions
set forth herein shall be deemed covenants running with the land and shall pass to and be binding
upon the Owner’s successors in title to the Apartment Community; provided, however, that on the
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termination of this Agreement said covenants, reservations and restrictions shall expire. Each and
every contract, deed or other instrument hereafter executed covering or conveying the Apartment
Community or any portion thereof shall conclusively be held to have been executed, delivered and
accepted subject to such covenants, reservations and restrictions, regardless of whether such
covenants, reservations and restrictions are set forth in such contract, deed or other instruments.
No breach of any of the provisions of this Agreement shall defeat or render invalid the lien of a
mortgage or deed of trust made in good faith and for value encumbering the Property or any interest
of the Owner therein.
5.19 Burden and Benefit. The Authority, the City and the Owner hereby declare their
understanding and intent that: (i) the burden of the covenants, reservations, restrictions, and
agreements set forth herein touch and concern the Property and the Apartment Community, in that
Owner’s legal interest in the Apartment Community is rendered less valuable thereby, (ii) the
covenants, reservations, restrictions, and agreements set forth herein directly benefit the Property
and the Apartment Community (a) by enhancing and increasing the enjoyment and use of the
Apartment Community by certain Extremely Low, 59% AMI Low or 80% AMI Low Income
Households, the intended beneficiaries of such covenants, reservations, restrictions, and
agreements, (b) by making possible the obtaining of advantageous financing for the Property and
the Apartment Community, and (c) by furthering the public purposes advanced by the Authority
and the City, and (iii) the covenants, reservations, restrictions and agreements set forth herein shall
run with the Property and shall be binding for the benefit of and enforceable by the Authority and
the City and their successors and assigns for the entire term of this Agreement.
5.20 Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be an original, but all of which shall constitute one and the same instrument.
5.21 Amendments. This Agreement may be amended only by the written agreement of the
Authority, the City and the Owner.
WHEREFORE, the undersigned has executed this Agreement as of the date first-above
written.
OWNER:
_____________________________
AUTHORITY:
PALM DESERT HOUSING AUTHORITY, a
public body, corporate and politic
By: ________________________
Print Name: ___________________
Title: ________________________
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Page 482 of 855
CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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CALIFORNIA ALL-PURPOSE 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 ____________, 2022, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
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EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
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EXHIBIT “B”
HOUSEHOLD INCOME CERTIFICATION
(Attached)
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EXHIBIT “C”
CERTIFICATE OF CONTINUING COMPLIANCE
(Attached)
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EXHIBIT I
SCOPE OF DEVELOPMENT (PHASE I AND PHASE II)
Pursuant to that certain Amended and Restated Disposition, Development and Loan
Agreement (“DDLA”) dated in 2024 executed by and among the City of Palm Desert, a municipal
corporation (the “City”), the Palm Desert Housing Authority, a public body corporate and politic
(the “Authority”) and Palm Companies, LLC (“Palm”), the single asset tax credit limited
partnership created and controlled by Palm and approved by the City Manager as the entity who
will take title to the Property at the Close of Escrow shall develop a two hundred forty-one (241)
unit multifamily rental housing development, including units for extremely low, very low, and low
income households (i.e., the Development) on the Property. All capitalized terms not defined
herein shall have the meaning ascribed to such terms in the DDLA.
The Development shall conform to plans approved by City (Precise Plan 22-0003/Tentative
Parcel Map 38366, and Environmental Assessment 22-0003), including all conditions and
mitigation measures imposed by the City in connection with the entitlement/development approval
process of the City. This shall include any subsequent updates or extensions to the approvals as
approved by the City.
The Development shall be constructed on the Property (such property consisting of
approximately 10.49 acres of city-owned vacant land located at the north side of Gerald Ford
Drive, between Portola Road and Cook Street in the City of Palm Desert). The
project/development, which will be called “Palm Villas at Millennium”, will be built as in two
phases, and each phase will include on on-site manager’s unit. The quality of construction shall be
of a high level.
PHASES: The Development shall be constructed in two phases, one phase on the Phase I Parcel
and the second Phase on the Phase II Parcel. Phase I shall consist of 120 affordable units and one
manager’s unit; Phase II shall consist of 119 affordable units and one manager’s unit.
HOUSING TYPE
Palm Villas at Millennium will target families with incomes from 30% to 80% AMI and will
consist of a mix of one, two and three-bedroom units. Units will be restricted by recorded Housing
Agreements on each Phase (one with the City in connection with a density bonus; the other with
the Authority, required due to the Authority’s purchase money loan for Phase I and purchase
money and construction loan for Phase II, as described in the DDLA). One two-bedroom unit and
one three-bedroom unit, respectively, will be used for the on-site property managers.
SITE AMENITIES---TO BE CONSTRUCTED AS PART OF PHASE I, UNLESS LOCATED ON PHASE II
PARCEL
(31) Community Center
o Leasing Office
o Computer Lab
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o Flex-Space
(32) Surveillance Cameras
(33) Picnic Areas (covered)
(34) Laundry Facilities
(35) Tot-Lot/Playground (covered)
(36) Swimming Pool(s):
- One pool will be a minimum of 935 square feet and shall include pool restrooms; the
other pool will be a minimum of 700 square feet
- Alternatively, a single pool, no smaller than 1600 square feet, shall be completed
• On-Site Property Management
• Gated Access
• Assigned Parking
CONSTRUCTION TYPE & ARCHITECTURAL GOALS
All buildings will be garden style Type V walk-ups with concrete slab-on-grade foundations. The
building architecture will be designed to blend with the character of the area and will incorporate
Universal Design concepts throughout that emphasizes overall project accessibility. The site will
have a spacious feel with open desert landscaped areas and surface parking. Construction of the
project is subject to California State prevailing wages, and may be subject to Federal Davis Bacon
prevailing wages.
SUSTAINABLE BUILDING / GREEN BUILDING PRACTICES
Palm Communities strives to implement building technologies that produce “green” and
sustainable developments. Palm Villas at Millennium will be built per minimum TCAC
requirements, which based on current regulations includes achieving minimum CalGreen and CAS
compliance.
UNIT AMENITIES
• Energy Star Appliances
o Oven/Stove
o Refrigerator
o Dishwasher
o Garbage Disposal
• Solid Surface Countertops
• Upgraded Cabinets
• Central Air Conditioning/Heating
• Window Blinds
• Carpet/Vinyl or Tile
• Patio or Balcony
SOCIAL SERVICE PROGRAMS
• Service amenities will be conducted in the community buildings and available for all
tenants free of charge. A program coordinator will be hired to provide family appropriate
classes for the residents, as well as collaborate with outside nonprofits and agencies to
expand program options. Residents will have input as to which classes and programs are
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offered at the center. Typically, the classes will include the following:
English as a Second Language
• Literacy Programs
• Computer Training
• “Basics of Life” Courses
• Entering the Workforce Courses
• Nutrition and Wellness Programs
The developer shall commence and complete the Development in accordance with the
Schedule of Performance. The Development shall conform to and shall complete and satisfy any
and all conditions from the City’s entitlement approval of Project number PP22-0003/TPM 38366.
I. DEVELOPMENT STANDARDS
The Improvements shall conform to all applicable Governmental Requirements, including
without limitation local subdivision, zoning, building code and other applicable ordinances,
resolutions, policies, applicable general and Specific Plans, and regulations of the City of Palm
Desert (“City Ordinances”) and the following development standards:
A. General Requirements:
1. Vehicular Access. The placement of vehicular driveways shall be
coordinated with the needs of proper street traffic flow as approved by the City in accordance with
City Ordinances. In the interest of minimizing traffic congestion, the City of Palm Desert will
control the number and location of curb breaks for access to the Site for off-street parking and
truck loading. All access driveways shall require written approval of the City.
2. Building Signs. Signs shall be limited in size, subdued and otherwise
designed to contribute positively to the environment. Signs identifying the building use will be
permitted, but their height, size, location, color, lighting and design will be subject to City
approval, and signs must conform to the City Ordinances.
3. Screening. All outdoor storage of materials or equipment shall be enclosed
or screened to the extent and in the manner required by the City.
4. Landscaping. The developer shall provide and maintain landscaping
within the public rights-of-way and within setback area along all street frontages and conforming
to the plans as hereafter approved by the City. Landscaping shall consist of trees, shrubs and
installation of an automatic irrigation system adequate to maintain such plant material. The type
and size of trees to be planted, together with a landscaping plan.
5. Utilities. All utilities on the Property provided to service the units
constructed by developer shall be underground at developer’s expense.
6. Building Design. Buildings shall be constructed such that the
Improvements shall be of high architectural quality, and shall be effectively and aesthetically
designed and in conformance with City approvals.
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7. Energy Considerations. The design of the Improvements shall include,
where feasible, energy conservation construction techniques and design, including co-generation
facilities and active and passive solar energy design. The developer shall be required to
demonstrate consideration of such energy features during the design review process and to
consistency with energy conservation provisions of the building code.
8. Site Preparation. Palm, at its cost and expense, shall prepare Property (also
sometimes referred to herein as the “Site”) for development. Such Site preparations shall consist
of the complete demolition and removal of all existing improvements if any.
9. Environmental Impact Mitigation Measures. To the extent required
under the terms of the DDLA, the developer shall implement any and all mitigation measures
and/or mitigation monitoring requirements as identified in any certified environmental document
or mitigated negative declaration certified in connection with the project.
10. Construction Fence. The developer shall install a temporary construction
chain link fence. The construction fence shall be maintained free of litter and in good repair for
the duration of its installation.
11. Development Identification Signs. Prior to commencement of
construction on the Site, the developer shall prepare and install, at its cost and expense, one sign
on the barricade around the Site which identifies the development. The sign shall be at least four
(4) feet by six (6) feet and be visible to passing pedestrians and vehicular traffic. The design of
the sign, as well as the proposed location, shall be submitted to the City and Authority for review
and approval prior to installation. The sign shall, at a minimum, include:
- Illustration of development
- Development name
- Palm
- Logo of the City of Palm Desert
- List of City Council Members
- Information number
- Completion Date
B. Design Features:
The following design features are considered essential components to the
Improvements:
Handicapped Units – An agreed upon number of units are to be fully handicapped
accessible in compliance with State Housing Code – Title 24 requirements.
Overall Design Quality, Materials, Colors, Design Features – Quality of design is
important, materials and colors are to be approved by City.
Housing Type – The project shall consist of development of a multi-family
apartment complex with two hundred forty-one (241) units, in the two Phases described
above.
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Mobility – All facilities shall comply, to the extent feasible, with current CTCAC
standards.
Green Building Standards – All facilities shall comply, to the extent feasible, with
CTCAC minimum green building standards.
II. DEMOLITION AND SOILS
Except to the extent otherwise expressly provided in the DDLA, the developer assumes all
responsibility for surface and subsurface conditions at the Site, and the suitability of the Site for
the Improvements. The developer has undertaken all investigation of the Site as it shall deem
necessary and has not received or relied upon any representations of City or the Authority, or their
respective officers, agents and employees.
III. SPECIAL AMENITIES
The developer shall undertake all improvements required by the City as a condition of
development of the Site, as more particularly provided in the City approvals given for the Site.
IV. MAINTENANCE OF SITE
The developer shall maintain the site free of all weeds and trash prior to start of
construction.
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EXHIBIT J
SCHEDULES OF PERFORMANCE (PHASE I AND PHASE II)
All of the construction deadlines described below shall be subject to extension as a result “Force
Majeure” in accordance with Section 10.3 of the DDLA.
PHASE I SCHEDULE OF PERFORMANCE:
# TASK DEADLINE
1 Open escrow for Phase I Parcel Promptly after execution of DDLA
2 Developer shall obtain the City Approvals
and obtain permit ready letter for all permits
necessary to construct the Development, and
pay the grading permit fees and all Final Map
fees, and shall cause all security required for
the Final Map under the conditions thereto
(including security under the Subdivision
Improvement Agreement, which must be
signed and delivered as a condition to Close
of Escrow).
Prior to or concurrent with the conveyance
of the Phase I Parcel.
3 Developer shall submit evidence of financing
commitments consistent with the Financing
Plan.
At least thirty (30) days prior to Close of
Escrow.
4 All construction financing to close, and
evidence of committed equity to be provided
(all consistent with final Project Budget)
By or concurrently with Close of Escrow
5 Closing of the conveyance of the Phase I
Parcel
January 1, 2025
6 Developer and City to execute and deliver all
documents required for Closing into Escrow,
as applicable, and satisfy all applicable
closing conditions
Prior to Close of Escrow.
7 Developer commences Construction March 30, 2025
8 Completion of Grading October 1, 2025
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# TASK DEADLINE
9 Completion and issuance of final Certificate
of Occupancy
May 30, 2027
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PHASE II SCHEDULE OF PERFORMANCE:
# TASK DEADLINE
1 Parties to open escrow for the conveyance of
the Phase II Parcel.
Upon closing of conveyance of Phase I
Parcel.
2 Developer shall obtain the City Approvals
and obtain permit ready letter for all permits
necessary to construct the Development, and
pay the grading permit fees and all Final Map
fees, and shall cause all security required for
the Final Map under the conditions thereto
(including security under the Subdivision
Improvement Agreement, which must be
signed and delivered as a condition to Close
of Escrow).
Prior to or concurrent with the conveyance
of the Phase II Parcel.
3 Developer shall submit evidence of financing
commitments consistent with the Financing
Plan.
At least thirty (30) days prior to Close of
Escrow.
4 All construction financing to close, and
evidence of committed equity to be provided
(all consistent with final Project Budget)
By or concurrently with Close of Escrow
5 Closing of the conveyance of the Phase II
Parcel
March 1, 2026
6 Developer and City to execute and deliver all
documents required for Closing into Escrow,
as applicable, and satisfy all applicable
closing conditions
Prior to Close of Escrow.
7 Developer commences Construction May 30, 2026
8 Completion of Grading October 1, 2026
9 Completion and issuance of final Certificate
of Occupancy
May 30, 2028
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EXHIBIT K-1
FINANCING PLAN – PHASE I
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APPENDIX A - TABLE 1
ESTIMATED DEVELOPMENT COSTS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Land Assemblage Costs
Acquisition Price 2 121 Units $16,248 /Unit $1,966,000
Closing Costs 0%of Purchase Price 0
Total Land Assemblage Costs 121 Units $16,200 /Unit $1,966,000
II.Direct Costs 3
Off-site Improvements 4 Allowance $4,487,000
On-site Improvements 262,231 Sf Land $34 /Sf Land 8,953,000
Extraordinary Costs 5 121 Units $8,653 /Unit 1,047,000
Residential Structure 122,513 Sf GBA $251 /Unit 30,752,000
Community Building 3,781 Sf GBA $519 of Construction Costs 1,963,000
Furnishings, Fixtures & Equipment 121 Units $620 of Construction Costs 75,000
Contractor Fees / General Requirements 14%of Construction Costs 6,621,000
Construction Insurance / Bonds 1%of Construction Costs 538,000
Contingency Allowance 5%of Other Direct Costs 2,718,000
Total Direct Costs 121 Units $472,300 /Unit $57,154,000
III.Indirect Costs
Architecture, Engineering & Consultants 4%of Direct Costs $2,133,000
Permits & Fees 6 121 Units $21,033 /Unit 2,545,000
Taxes, Insurance, Legal & Accounting 2%of Direct Costs 1,396,000
Marketing & Leasing 121 Units $496 /Unit 60,000
Developer Fee 7 10,070,000
Contingency Allowance 3%of Other Indirect Costs 500,000
Total Indirect Costs 121 Units $138,000 /Unit $16,704,000
IV.Financing Costs
Tax-Exempt Bonds Interest 8 $44,853,250 TEBs 8.00%Interest $4,662,000
Taxable Bonds Interest $0 Txble Bonds 8.00%Interest 0
Financing Fees
Construction Loan $44,853,250 Loan 1.11 Points 498,000
Permanent Loan $13,910,000 Loan 1.14 Points 159,000
Issuance Costs $44,853,250 TEBs 0.52 Points 231,000
Tax Credit Fees 121 Units $1,044 /Unit 126,000
Capitalized Reserves
Operating Reserves $186,046 /Mo 3 Months 558,000
SLP Fee 20 Years $5,000 /Year 100,000
Total Financing Costs 121 Units $52,300 /Unit $6,334,000
V.Total Development Costs 121 Units $679,000 /Unit $82,158,000
1
2
3
4
5
6
7
8
Based on Developer's estimates, which KMA determined to be reasonable based on experience.
Based on City appraisal from June 2022.
Project will be required to pay both Federal and State prevailing wages.
Includes solar, swimming pool and parking space shade covers.
Maximum developer fee allowed by TCAC.
Assumes a 24-month development period and a 65% average outstanding balance.
All offsite improvements required will be constructed in Phase I.
Does not include SCE and TUMF fees, which will be waived or refunded.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 1; jlr; 3/26/2024
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APPENDIX A - TABLE 2A
AFFORDABILITY MIX
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
Number Applicable Utility Applicable
of Units TCAC Rent HCD Rent DB Rent Gross Rent Allowance Net Rent
30% TCAC, ELI HCD, VLI DB 12 30% AMI ELI HCD VLI HCD
1-Bdrm Units 2 $524 $567 $945 $524 $29 $495
2-Bdrm Units 7 $629 $638 $1,063 $629 $24 $605
3-Bdrm Units 3 $727 $709 $1,181 $709 $20 $689
30% TCAC, ELI HCD 24 30% AMI ELI HCD N/A
1-Bdrm Units 4 $524 $567 N/A $524 $29 $495
2-Bdrm Units 20 $629 $638 N/A $629 $24 $605
3-Bdrm Units 0 $727 $709 N/A $709 $20 $689
30% TCAC, 59% HCD 14 30% AMI 59% Low N/A
1-Bdrm Units 9 $524 $1,115 N/A $524 $29 $495
2-Bdrm Units 1 $629 $1,254 N/A $629 $24 $605
3-Bdrm Units 4 $727 $1,394 N/A $727 $20 $707
30% TCAC, Low HCD 10 30% AMI Low N/A
1-Bdrm Units 0 $524 $1,134 N/A $524 $29 $495
2-Bdrm Units 0 $629 $1,276 N/A $629 $24 $605
3-Bdrm Units 10 $727 $1,418 N/A $727 $20 $707
60% TCAC, 59% HCD 47 60% AMI 59% Low N/A
1-Bdrm Units 0 $1,049 $1,115 N/A $1,049 $29 $1,020
2-Bdrm Units 47 $1,258 $1,254 N/A $1,254 $24 $1,230
3-Bdrm Units 0 $1,454 $1,394 N/A $1,394 $20 $1,374
60% TCAC, Low HCD 13 60% AMI Low N/A
1-Bdrm Units 0 $1,049 $1,134 N/A $1,049 $29 $1,020
2-Bdrm Units 0 $1,258 $1,276 N/A $1,258 $24 $1,234
3-Bdrm Units 13 $1,454 $1,418 N/A $1,418 $20 $1,398
Manager Unit 1
1-Bdrm Units 0
2-Bdrm Units 0
3-Bdrm Units 1
PBV Overhang 60 FMR Tenant Rent Overhang
Utility
Allowance
Net
Overhang
1-Bdrm Units 15 $1,772 $495 $1,277 $29.37 $1,248.00
2-Bdrm Units 28 $2,211 $605 $1,606 $24.06 $1,582.00
3-Bdrm Units 3 $2,977 $689 $2,288 $20.48 $2,268.00
3-Bdrm Units 14 $2,977 $707 $2,270 $20.48 $2,250.00
Note: Rents are based on 2023 rents and the utility allowances are based on Developer CAUC estimates on 3/12/24 for all electric building.
TOTAL UNITS 121 AVERAGE AFFORDABILITY:45%
1-Bdrm Units 15 POTENTIAL GROSS INCOME - BASE:$1,347,475
2-Bdrm Units 75 POTENTIAL GROSS INCOME - PBV:$1,215,840
3-Bdrm Units 31
PBV SUBSIDY 60 LMIHAF City Regulatory Agreement:120
1-Bdrm Units 15 ELI HCD Units 36
2-Bdrm Units 28 VLI HCD Units 0
3-Bdrm Units 17 59% HCD Units 61
Low HCD Units 23
TCAC Regulatory Agreement:
30% AMI Units 60 Density Bonus City Regulatory Agreement
40% AMI Units 0 VLI HCD Units 12
50% AMI Units 0
60% AMI Units 60
70% AMI Units 0
Total Restricted Units 120
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; AFF - Ph 1; jlr; 3/26/2024
Page 506 of 855
APPENDIX A - TABLE 2B
STABILIZED NET OPERATING INCOME
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 1 121 Units $928 /Unit/Mo $1,347,475
Projected Gross Income - PBV Subsidy 1 60 PBVs $1,689 /Unit/Mo 1,215,840
Miscellaneous Income 2 121 Units $12 /Unit/Mo 18,000
Projected Gross Income $2,581,315
(Less) Vacancy & Collection Allowance 2 5%of PGI (129,065)
Effective Gross Income $2,452,249
II.Operating Expenses 2
General Operating Expenses 121 Units $8,130 /Unit $983,712
Property Taxes & Assessments 121 Units $58 /Unit 7,000
Social Services 121 Units $653 /Unit 78,972
County Monitoring Fee 121 Units $100 /Unit 12,100
City Monitoring Fee 121 Units $41 /Unit 4,961
Bond Issuer Fee Allowance 5,000
Replacement Reserves 121 Units $350 /Unit 42,350
Total Operating Expenses 121 Units $9,373 /Unit $1,134,095
III.Net Operating Income $1,318,154
1
2
See Table 2A.
Based on Developer estimates, which KMA determined to be reasonable based on experience.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 1; jlr; 3/26/2024
Page 507 of 855
APPENDIX A - TABLE 3
FINANCIAL GAP ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Available Funding Sources
A.Permanent Loan 1.20 DCR $1,098,462 Debt Svc $13,910,000
7.50%Interest 40 Years
B.Federal Tax Credit Equity $40,147,466 Gross TC $0.86 Equity $34,523,000
C.State Tax Credit Equity $22,659,500 Gross TC $0.78 Equity $17,618,000
D.County Loan 2 121 Units $55,400 /Unit $6,700,000
E.Contributed Developer Fee 3 0%of Developr Fee $0
F.Deferred Developer Fee 74%of Developr Fee $7,441,000
Total Available Funding Sources 121 Units $662,700 /Unit $80,192,000
II.Financial Gap Calculation
Total Development Costs $82,158,000
(Less) Available Funding Sources (80,192,000)
Financial Gap 121 Units $16,200 /Unit $1,966,000
III.Authority Funding Sources
HOME Funds $0
LMIHAF Funds 1,966,000
PLHA Funds 0
Total Authority Assistance 121 Units $16,200 /Unit $1,966,000
1
2
3
Based on Developer estimates, which KMA determined to be reasonable based on experience.
Previously awarded by County for entire Project; however, County has verified willingness to allow the entire amount to be used
in Phase I only.
Per TCAC draft guidelines, a portion of the deferred fee may be requried to be contributed to the Project.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 1; jlr; 3/26/2024
Page 508 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year $1,347,475 $1,381,161 $1,415,691 $1,451,083 $1,487,360 $1,524,544 $1,562,657 $1,601,724 $1,641,767 $1,682,811
Projected Gross Income - PBV Subsidy 102.5%/Year 1,215,840 1,246,236 1,277,392 1,309,327 1,342,060 1,375,611 1,410,002 1,445,252 1,481,383 1,518,418
Miscellaneous Income 102.5%/Year 18,000 18,450 18,911 19,384 19,869 20,365 20,874 21,396 21,931 22,480
Projected Gross Income $2,581,315 $2,645,847 $2,711,994 $2,779,793 $2,849,288 $2,920,521 $2,993,534 $3,068,372 $3,145,081 $3,223,708
(Less) Vacancy & Collection Allowance 5%of PGI (129,065)(132,292)(135,599)(138,989)(142,464)(146,026)(149,676)(153,418)(157,254)(161,185)
Effective Gross Income $2,452,249 $2,513,555 $2,576,394 $2,640,804 $2,706,824 $2,774,495 $2,843,857 $2,914,954 $2,987,827 $3,062,523
II.Operating Expenses
General Operating Expenses 103.5%/Year $983,712 1,018,142 1,053,777 1,090,659 1,128,832 1,168,341 1,209,233 1,251,556 1,295,361 1,340,698
Property Taxes & Assessments 102.0%/Year 7,000 7,140 7,283 7,428 7,577 7,729 7,883 8,041 8,202 8,366
Social Services 103.5%/Year 78,972 81,736 84,597 87,558 90,622 93,794 97,077 100,474 103,991 107,631
County Monitoring Fee 103.5%/Year 12,100 12,524 12,962 13,415 13,885 14,371 14,874 15,395 15,933 16,491
City Monitoring Fee 103.0%/Year 4,961 5,110 5,263 5,421 5,584 5,751 5,924 6,101 6,284 6,473
Bond Issuer Fee 103.5%/Year 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814
Replacement Reserves 103.5%/Year 42,350 43,832 45,366 46,954 48,598 50,299 52,059 53,881 55,767 57,719
Total Operating Expenses $1,134,095 $1,173,659 $1,214,604 $1,256,979 $1,300,835 $1,346,223 $1,393,196 $1,441,810 $1,492,122 $1,544,192
III.Net Operating Income $1,318,154 $1,339,897 $1,361,790 $1,383,825 $1,405,989 $1,428,272 $1,450,661 $1,473,144 $1,495,705 $1,518,331
(Less) Annual Debt Service (1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(Less) AGP Asset Management Fee 2 103.0%/Year (5,000)(5,150)(5,305)(5,464)(5,628)(5,796)(5,970)(6,149)(6,334)(6,524)
(Less) MGP Asset Management Fee 2 103.0%/Year (10,000)(10,300)(10,609)(10,927)(11,255)(11,593)(11,941)(12,299)(12,668)(13,048)
IV.Cash Flow Available for Distribution $204,692 $225,985 $247,415 $268,972 $290,645 $312,421 $334,289 $356,234 $378,242 $400,298
V.Deferred Developer Fee Payment 3 $7,441,000 $204,692 $225,985 $247,415 $268,972 $290,645 $312,421 $334,289 $356,234 $378,242 $400,298
Accrued Payment 204,692 430,677 678,092 947,064 1,237,709 1,550,130 1,884,419 2,240,652 2,618,894 3,019,192
VI.Residual Receipts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VII.Authority Loan
Beginning Balance $1,966,000 $2,024,980 $2,083,960 $2,142,940 $2,201,920 $2,260,900 $2,319,880 $2,378,860 $2,437,840 $2,496,820
Beginning Balance (Interest Calc)1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
Add: Interest 3.00%58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
(Less) Payments 4 11.34%0 0 0 0 0 0 0 0 0 0
Ending Balance 2,024,980 2,083,960 2,142,940 2,201,920 2,260,900 2,319,880 2,378,860 2,437,840 2,496,820 2,555,800
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 509 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
$1,724,881 $1,768,003 $1,812,204 $1,857,509 $1,903,946 $1,951,545 $2,000,334 $2,050,342 $2,101,601 $2,154,141
1,556,378 1,595,287 1,635,170 1,676,049 1,717,950 1,760,899 1,804,921 1,850,044 1,896,295 1,943,703
23,042 23,618 24,208 24,813 25,434 26,069 26,721 27,389 28,074 28,776
$3,304,301 $3,386,908 $3,471,581 $3,558,371 $3,647,330 $3,738,513 $3,831,976 $3,927,775 $4,025,970 $4,126,619
(165,215)(169,345)(173,579)(177,918)(182,366)(186,925)(191,598)(196,388)(201,298)(206,331)
$3,139,086 $3,217,563 $3,298,002 $3,380,452 $3,464,964 $3,551,588 $3,640,378 $3,731,387 $3,824,672 $3,920,289
1,387,623 1,436,190 1,486,456 1,538,482 1,592,329 1,648,061 1,705,743 1,765,444 1,827,234 1,891,188
8,533 8,704 8,878 9,055 9,236 9,421 9,609 9,802 9,998 10,198
111,398 115,297 119,332 123,509 127,832 132,306 136,936 141,729 146,690 151,824
17,068 17,666 18,284 18,924 19,586 20,272 20,981 21,716 22,476 23,262
6,667 6,867 7,073 7,285 7,504 7,729 7,961 8,200 8,446 8,699
7,053 7,300 7,555 7,820 8,093 8,377 8,670 8,973 9,287 9,613
59,739 61,830 63,994 66,234 68,552 70,951 73,434 76,005 78,665 81,418
$1,598,081 $1,653,852 $1,711,572 $1,771,309 $1,833,132 $1,897,116 $1,963,335 $2,031,868 $2,102,795 $2,176,201
$1,541,005 $1,563,711 $1,586,430 $1,609,144 $1,631,831 $1,654,472 $1,677,042 $1,699,519 $1,721,876 $1,744,088
(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(6,720)(6,921)(7,129)(7,343)(7,563)(7,790)(8,024)(8,264)(8,512)(8,768)
(13,439)(13,842)(14,258)(14,685)(15,126)(15,580)(16,047)(16,528)(17,024)(17,535)
$422,385 $444,486 $466,582 $488,654 $510,681 $532,641 $554,510 $576,265 $597,878 $619,323
$422,385 $444,486 $466,582 $488,654 $510,681 $532,641 $554,510 $576,265 $425,606 $0
3,441,576 3,886,062 4,352,644 4,841,298 5,351,978 5,884,619 6,439,129 7,015,394 7,441,000 7,441,000
$0 $0 $0 $0 $0 $0 $0 $0 $172,272 $619,323
$2,555,800 $2,614,780 $2,673,760 $2,732,740 $2,791,720 $2,850,700 $2,909,680 $2,968,660 $3,027,640 $3,067,079
1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
0 0 0 0 0 0 0 0 (19,541)(70,251)
2,614,780 2,673,760 2,732,740 2,791,720 2,850,700 2,909,680 2,968,660 3,027,640 3,067,079 3,055,808
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 510 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
$2,207,994 $2,263,194 $2,319,774 $2,377,768 $2,437,212 $2,498,143 $2,560,596 $2,624,611 $2,690,226 $2,757,482
1,992,295 2,042,103 2,093,155 2,145,484 2,199,121 2,254,099 2,310,452 2,368,213 2,427,419 2,488,104
29,495 30,232 30,988 31,763 32,557 33,371 34,205 35,060 35,937 36,835
$4,229,785 $4,335,529 $4,443,917 $4,555,015 $4,668,891 $4,785,613 $4,905,253 $5,027,885 $5,153,582 $5,282,421
(211,489)(216,776)(222,195)(227,750)(233,444)(239,280)(245,262)(251,394)(257,679)(264,121)
$4,018,296 $4,118,753 $4,221,722 $4,327,265 $4,435,447 $4,546,333 $4,659,991 $4,776,491 $4,895,903 $5,018,301
1,957,379 2,025,887 2,096,794 2,170,181 2,246,138 2,324,752 2,406,119 2,490,333 2,577,495 2,667,707
10,402 10,610 10,822 11,038 11,259 11,484 11,714 11,948 12,187 12,431
157,138 162,637 168,330 174,221 180,319 186,630 193,162 199,923 206,920 214,162
24,076 24,919 25,791 26,694 27,628 28,595 29,596 30,632 31,704 32,814
8,960 9,229 9,506 9,791 10,085 10,387 10,699 11,020 11,350 11,691
9,949 10,297 10,658 11,031 11,417 11,816 12,230 12,658 13,101 13,559
84,268 87,217 90,270 93,429 96,699 100,083 103,586 107,212 110,964 114,848
$2,252,171 $2,330,797 $2,412,169 $2,496,385 $2,583,544 $2,673,749 $2,767,106 $2,863,726 $2,963,722 $3,067,212
$1,766,124 $1,787,956 $1,809,553 $1,830,880 $1,851,902 $1,872,584 $1,892,885 $1,912,765 $1,932,182 $1,951,088
(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(9,031)(9,301)(9,581)(9,868)(10,164)(10,469)(10,783)(11,106)(11,440)(11,783)
(18,061)(18,603)(19,161)(19,736)(20,328)(20,938)(21,566)(22,213)(22,879)(23,566)
$640,571 $661,590 $682,349 $702,814 $722,949 $742,715 $762,074 $780,984 $799,401 $817,278
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$640,571 $661,590 $682,349 $702,814 $722,949 $742,715 $762,074 $780,984 $799,401 $817,278
$3,055,808 $3,042,127 $3,026,061 $3,007,641 $2,986,900 $2,963,874 $2,938,607 $2,911,143 $2,881,535 $2,849,838
1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
(72,661)(75,045)(77,400)(79,721)(82,005)(84,248)(86,443)(88,588)(90,677)(92,705)
3,042,127 3,026,061 3,007,641 2,986,900 2,963,874 2,938,607 2,911,143 2,881,535 2,849,838 2,816,112
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 511 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 31 Year 32 Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39 Year 40
$2,826,419 $2,897,080 $2,969,506 $3,043,744 $3,119,838 $3,197,834 $3,277,780 $3,359,724 $3,443,717 $3,529,810
2,550,307 2,614,064 2,679,416 2,746,401 2,815,061 2,885,438 2,957,574 3,031,513 3,107,301 3,184,983
37,756 38,700 39,668 40,659 41,676 42,718 43,786 44,880 46,002 47,152
$5,414,482 $5,549,844 $5,688,590 $5,830,805 $5,976,575 $6,125,989 $6,279,139 $6,436,117 $6,597,020 $6,761,946
(270,724)(277,492)(284,429)(291,540)(298,828)(306,299)(313,956)(321,805)(329,850)(338,097)
$5,143,758 $5,272,352 $5,404,161 $5,539,265 $5,677,747 $5,819,690 $5,965,183 $6,114,312 $6,267,170 $6,423,849
2,761,077 2,857,714 2,957,734 3,061,255 3,168,399 3,279,293 3,394,068 3,512,861 3,635,811 3,763,064
12,680 12,933 13,192 13,456 13,725 13,999 14,279 14,565 14,856 15,153
221,658 229,416 237,446 245,756 254,358 263,260 272,474 282,011 291,881 302,097
33,962 35,151 36,381 37,655 38,972 40,336 41,748 43,209 44,722 46,287
12,042 12,403 12,775 13,158 13,553 13,960 14,378 14,810 15,254 15,712
14,034 14,525 15,034 15,560 16,104 16,668 17,251 17,855 18,480 19,127
118,868 123,028 127,334 131,791 136,403 141,178 146,119 151,233 156,526 162,004
$3,174,320 $3,285,171 $3,399,896 $3,518,630 $3,641,515 $3,768,694 $3,900,318 $4,036,544 $4,177,530 $4,323,444
$1,969,438 $1,987,182 $2,004,265 $2,020,635 $2,036,232 $2,050,996 $2,064,864 $2,077,769 $2,089,640 $2,100,405
(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(12,136)(12,500)(12,875)(13,262)(13,660)(14,069)(14,491)(14,926)(15,374)(15,835)
(24,273)(25,001)(25,751)(26,523)(27,319)(28,139)(28,983)(29,852)(30,748)(31,670)
$834,568 $851,219 $867,177 $882,388 $896,792 $910,327 $922,928 $934,528 $945,056 $954,438
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$834,568 $851,219 $867,177 $882,388 $896,792 $910,327 $922,928 $934,528 $945,056 $954,438
$2,816,112 $2,780,426 $2,742,850 $2,703,465 $2,662,354 $2,619,609 $2,575,329 $2,529,620 $2,482,595 $2,434,375
1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
(94,667)(96,555)(98,365)(100,091)(101,725)(103,260)(104,689)(106,005)(107,199)(108,264)
2,780,426 2,742,850 2,703,465 2,662,354 2,619,609 2,575,329 2,529,620 2,482,595 2,434,375 2,385,092
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 512 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 41 Year 42 Year 43 Year 44 Year 45 Year 46 Year 47 Year 48 Year 49 Year 50
$3,618,055 $3,708,507 $3,801,219 $3,896,250 $3,993,656 $4,093,498 $4,195,835 $4,300,731 $4,408,249 $4,518,455
3,264,608 3,346,223 3,429,879 3,515,626 3,603,516 3,693,604 3,785,944 3,880,593 3,977,608 4,077,048
48,331 49,539 50,778 52,047 53,349 54,682 56,049 57,451 58,887 60,359
$6,930,994 $7,104,269 $7,281,876 $7,463,923 $7,650,521 $7,841,784 $8,037,829 $8,238,774 $8,444,744 $8,655,862
(346,549)(355,213)(364,093)(373,195)(382,525)(392,088)(401,891)(411,938)(422,236)(432,792)
$6,584,445 $6,749,057 $6,917,783 $7,090,728 $7,267,996 $7,449,696 $7,635,938 $7,826,836 $8,022,507 $8,223,070
3,894,771 4,031,088 4,172,176 4,318,203 4,469,340 4,625,767 4,787,668 4,955,237 5,128,670 5,308,173
15,456 15,765 16,081 16,402 16,730 17,065 17,406 17,754 18,109 18,472
312,671 323,614 334,941 346,664 358,797 371,355 384,352 397,804 411,728 426,138
47,907 49,584 51,319 53,115 54,974 56,899 58,890 60,951 63,084 65,292
16,183 16,668 17,169 17,684 18,214 18,760 19,323 19,903 20,500 21,115
19,796 20,489 21,206 21,949 22,717 23,512 24,335 25,186 26,068 26,980
167,675 173,543 179,617 185,904 192,411 199,145 206,115 213,329 220,795 228,523
$4,474,459 $4,630,753 $4,792,509 $4,959,920 $5,133,183 $5,312,502 $5,498,090 $5,690,165 $5,888,955 $6,094,694
$2,109,986 $2,118,304 $2,125,274 $2,130,808 $2,134,813 $2,137,194 $2,137,848 $2,136,671 $2,133,552 $2,128,376
(16,310)(16,799)(17,303)(17,823)(18,357)(18,908)(19,475)(20,059)(20,661)(21,281)
(32,620)(33,599)(34,607)(35,645)(36,715)(37,816)(38,950)(40,119)(41,323)(42,562)
$2,061,056 $2,067,906 $2,073,364 $2,077,340 $2,079,741 $2,080,470 $2,079,423 $2,076,493 $2,071,569 $2,064,532
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$2,061,056 $2,067,906 $2,073,364 $2,077,340 $2,079,741 $2,080,470 $2,079,423 $2,076,493 $2,071,569 $2,064,532
$2,385,092 $2,210,282 $2,034,696 $1,858,491 $1,678,609 $1,493,059 $1,301,859 $1,105,042 $902,653 $694,751
1,966,000 1,966,000 1,966,000 1,858,491 1,678,609 1,493,059 1,301,859 1,105,042 902,653 694,751
58,980 58,980 58,980 55,755 50,358 44,792 39,056 33,151 27,080 20,843
(233,789)(234,566)(235,185)(235,636)(235,909)(235,991)(235,873)(235,540)(234,982)(234,184)
2,210,282 2,034,696 1,858,491 1,678,609 1,493,059 1,301,859 1,105,042 902,653 694,751 481,410
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 513 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 51 Year 52 Year 53 Year 54 Year 55
$4,631,417 $4,747,202 $4,865,882 $4,987,529 $5,112,217
4,178,974 4,283,449 4,390,535 4,500,298 4,612,806
61,868 63,415 65,000 66,625 68,291
$8,872,259 $9,094,065 $9,321,417 $9,554,452 $9,793,314
(443,612)(454,702)(466,070)(477,722)(489,665)
$8,428,647 $8,639,363 $8,855,347 $9,076,731 $9,303,649
5,493,960 5,686,248 5,885,267 6,091,251 6,304,445
18,841 19,218 19,602 19,994 20,394
441,053 456,490 472,467 489,003 506,118
67,578 69,943 72,391 74,925 77,547
21,749 22,401 23,073 23,765 24,478
27,925 28,902 29,914 30,961 32,044
236,522 244,800 253,368 262,236 271,414
$6,307,626 $6,528,002 $6,756,081 $6,992,135 $7,236,441
$2,121,021 $2,111,361 $2,099,266 $2,084,596 $2,067,208
(21,920)(22,577)(23,254)(23,952)(24,671)
(43,839)(45,154)(46,509)(47,904)(49,341)
$2,055,262 $2,043,630 $2,029,502 $2,012,740 $1,993,196
$0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$2,055,262 $2,043,630 $2,029,502 $2,012,740 $1,993,196
$481,410 $262,720 $38,789 $0 $0
481,410 262,720 38,789 0 0
14,442 7,882 1,164 0 0
(233,132)(231,813)(39,952)0 0
262,720 38,789 0 0 0
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 514 of 855
EXHIBIT K-2
FINANCING PLAN – PHASE II
Page 515 of 855
APPENDIX B - TABLE 1
ESTIMATED DEVELOPMENT COSTS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Land Assemblage Costs
Acquisition Price 2 120 Units $12,158 /Unit $1,459,000
Closing Costs 0%of Purchase Price 0
Total Land Assemblage Costs 120 Units $12,200 /Unit $1,459,000
II.Direct Costs 3
Off-site Improvements 4 Allowance $0
On-site Improvements 194,713 Sf Land $46 /Sf Land 8,953,000
Extraordinary Costs 5 120 Units $7,000 /Unit 840,000
Residential Structure 121,877 Sf GBA $250 /Unit 30,498,000
Community Building 0 Sf GBA $0 of Constructio 0
Furnishings, Fixtures & Equipment 120 Units $625 of Constructio 75,000
Contractor Fees / General Requirements 14%of Construction Costs 5,651,000
Construction Insurance / Bonds 1%of Construction Costs 459,000
Contingency Allowance 5%of Other Direct Costs 2,320,000
Total Direct Costs 120 Units $406,600 /Unit $48,796,000
III.Indirect Costs
Architecture, Engineering & Consultants 4%of Direct Costs $1,783,000
Permits & Fees 6 120 Units $22,267 /Unit 2,672,000
Taxes, Insurance, Legal & Accounting 3%of Direct Costs 1,239,000
Marketing & Leasing 120 Units $500 /Unit 60,000
Developer Fee 7 8,784,000
Contingency Allowance 3%of Other Indirect Costs 500,000
Total Indirect Costs 120 Units $125,300 /Unit $15,038,000
IV.Financing Costs
Tax-Exempt Bonds Interest 8 $41,391,683 TEBs 8.00%Interest $4,779,000
Taxable Bonds Interest $0 Txble Bonds 8.00%Interest 0
Financing Fees
Construction Loan $41,391,683 Loan 1.12 Points 464,000
Permanent Loan $14,032,000 Loan 1.00 Points 140,000
Issuance Costs $41,391,683 TEBs 0.55 Points 229,000
Tax Credit Fees 120 Units $1,002 /Unit 120,000
Capitalized Reserves
Operating Reserves $184,705 /Mo 3 Months 554,000
SLP Fee 20 Years $5,000 /Year 100,000
Total Financing Costs 120 Units $53,200 /Unit $6,386,000
V.Total Development Costs 120 Units $597,300 /Unit $71,679,000
1
2
3
4
5
6
7
8
Based on Developer's estimates.
Based on City appraisal from June 2022.
Project will be required to pay both Federal and State prevailing wages.
Includes solar, swimming pool and parking space shade covers.
Maximum developer fee allowed by TCAC.
Assumes a 24-month development period and a 72% average outstanding balance.
All offsite improvements required will be constructed in Phase I.
Does not include SCE and TUMF fees, which will be waived or refunded.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 2; jlr; 3/26/2024
Page 516 of 855
APPENDIX B - TABLE 2A
AFFORDABILITY MIX
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
Number Applicable Utility Applicable
of Units TCAC Rent HCD Rent DB Rent Gross Rent Allowance Net Rent
30% TCAC, ELI HCD, VLI DB 12 30% AMI ELI HCD VLI HCD
1-Bdrm Units 2 $524 $567 $945 $524 $29 $495
2-Bdrm Units 7 $629 $638 $1,063 $629 $24 $605
3-Bdrm Units 3 $727 $709 $1,181 $709 $20 $689
30% TCAC, ELI HCD 24 30% AMI ELI HCD N/A
1-Bdrm Units 4 $524 $567 N/A $524 $29 $495
2-Bdrm Units 20 $629 $638 N/A $629 $24 $605
3-Bdrm Units 0 $727 $709 N/A $709 $20 $689
30% TCAC, 59% HCD 14 30% AMI 59% Low N/A
1-Bdrm Units 9 $524 $1,115 N/A $524 $29 $495
2-Bdrm Units 1 $629 $1,254 N/A $629 $24 $605
3-Bdrm Units 4 $727 $1,394 N/A $727 $20 $707
30% TCAC, Low HCD 10 30% AMI Low N/A
1-Bdrm Units 0 $524 $1,134 N/A $524 $29 $495
2-Bdrm Units 0 $629 $1,276 N/A $629 $24 $605
3-Bdrm Units 10 $727 $1,418 N/A $727 $20 $707
60% TCAC, 59% HCD 46 60% AMI 59% Low N/A
1-Bdrm Units 0 $1,049 $1,115 N/A $1,049 $29 $1,020
2-Bdrm Units 46 $1,258 $1,254 N/A $1,254 $24 $1,230
3-Bdrm Units 0 $1,454 $1,394 N/A $1,394 $20 $1,374
60% TCAC, Low HCD 13 60% AMI Low N/A
1-Bdrm Units 0 $1,049 $1,134 N/A $1,049 $29 $1,020
2-Bdrm Units 0 $1,258 $1,276 N/A $1,258 $24 $1,234
3-Bdrm Units 13 $1,454 $1,418 N/A $1,418 $20 $1,398
Manager Unit 1
1-Bdrm Units 0
2-Bdrm Units 1
3-Bdrm Units 0
PBV Overhang 60 FMR Tenant Rent Overhang
Utility
Allowance
Net
Overhang
1-Bdrm Units 15 $1,772 $495 $1,277 $29 $1,248
2-Bdrm Units 28 $2,211 $605 $1,606 $24 $1,582
3-Bdrm Units 3 $2,977 $689 $2,288 $20 $2,268
3-Bdrm Units 14 $2,977 $707 $2,270 $20 $2,250
Note: Rents are based on 2023 rents and the utility allowances are based on Developer CAUC estimates on 3/12/24 for all electric building.
TOTAL UNITS 120 AVERAGE AFFORDABILITY:45%
1-Bdrm Units 15 POTENTIAL GROSS INCOME - BASE:$1,332,715
2-Bdrm Units 75 POTENTIAL GROSS INCOME - PBV:$1,215,840
3-Bdrm Units 30
PBV SUBSIDY 60 LMIHAF City Regulatory Agreement:119
1-Bdrm Units 15 ELI HCD Units 36
2-Bdrm Units 28 VLI HCD Units 0
3-Bdrm Units 17 59% HCD Units 60
Low HCD Units 23
TCAC Regulatory Agreement:
30% AMI Units 60 Density Bonus City Regulatory Agreement
40% AMI Units 0 VLI HCD Units 12
50% AMI Units 0
60% AMI Units 59
70% AMI Units 0
Total Restricted Units 119
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; AFF - Ph 2; jlr; 3/26/2024
Page 517 of 855
APPENDIX B - TABLE 2B
STABILIZED NET OPERATING INCOME
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 1 120 Units $925 /Unit/Mo $1,332,715
Projected Gross Income - PBV Subsidy 1 60 PBVs $1,689 /Unit/Mo 1,215,840
Miscellaneous Income 2 120 Units $12 /Unit/Mo 17,850
Projected Gross Income $2,566,405
(Less) Vacancy & Collection Allowance 2 5%of PGI (128,320)
Effective Gross Income $2,438,085
II.Operating Expenses 2
General Operating Expenses 120 Units $8,087 /Unit $970,446
Property Taxes & Assessments 120 Units $58 /Unit 7,000
Social Services 120 Units $658 /Unit 78,972
County Monitoring Fee 120 Units $0 /Unit 0
City Monitoring Fee 120 Units $41 /Unit 4,920
Bond Issuer Fee Allowance 5,000
Replacement Reserves 120 Units $350 /Unit 42,000
Total Operating Expenses 120 Units $9,236 /Unit $1,108,338
III.Net Operating Income $1,329,747
1
2
See Table 2A.
Based on Developer estimates, which KMA determined to be reasonable based on experience.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 2; jlr; 3/26/2024
Page 518 of 855
APPENDIX B - TABLE 3
FINANCIAL GAP ANALYSIS
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Available Funding Sources
A.Permanent Loan 1.20 DCR $1,108,122 Debt Svc $14,032,000
7.50%Interest 40 Years
B.Federal Tax Credit Equity $35,018,207 Gross TC $0.86 Equity $30,112,000
C.State Tax Credit Equity $20,202,812 $0.82 Equity $16,524,000
D.County Loan 2 120 Units $0 /Unit $0
E.Contributed Developer Fee 3 0%of Developr Fee $0
F.Deferred Developer Fee 71%of Developr Fee $6,222,000
Total Available Funding Sources $66,890,000
II.Financial Gap Calculation
Total Development Costs $71,679,000
(Less) Available Funding Sources (66,890,000)
Financial Gap 120 Units $39,908 /Unit $4,789,000
III.Authority Funding Sources per Developer Request
HOME Funds $0
LMIHAF Funds 4,789,000
PLHA Funds 0
Total Authority Assistance 120 Units $39,908 /Unit $4,789,000
1
2
3
Previously awarded by County for entire Project; however, County has verified willingness to allow the entire amount
to be used in Phase I only.
Per TCAC draft guidelines, a portion of the deferred fee may be requried to be contributed to the Project.
Based on Developer estimates, which KMA determined to be reasonable based on experience.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 2; jlr; 3/26/2024
Page 519 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year $1,332,715 $1,366,033 $1,400,184 $1,435,189 $1,471,068 $1,507,845 $1,545,541 $1,584,180 $1,623,784 $1,664,379
Projected Gross Income - PBV Subsidy 102.5%/Year 1,215,840 1,246,236 1,277,392 1,309,327 1,342,060 1,375,611 1,410,002 1,445,252 1,481,383 1,518,418
Miscellaneous Income 102.5%/Year 17,850 18,296 18,754 19,222 19,703 20,196 20,701 21,218 21,748 22,292
Projected Gross Income $2,566,405 $2,630,565 $2,696,330 $2,763,738 $2,832,831 $2,903,652 $2,976,243 $3,050,649 $3,126,916 $3,205,089
(Less) Vacancy & Collection Allowance 5%of PGI (128,320)(131,528)(134,817)(138,187)(141,642)(145,183)(148,812)(152,533)(156,346)(160,255)
Effective Gross Income $2,438,085 $2,499,037 $2,561,513 $2,625,551 $2,691,189 $2,758,469 $2,827,431 $2,898,117 $2,970,570 $3,044,834
II.Operating Expenses
General Operating Expenses 103.5%/Year $970,446 1,004,412 1,039,566 1,075,951 1,113,609 1,152,585 1,192,926 1,234,678 1,277,892 1,322,618
Property Taxes & Assessments 102.0%/Year 7,000 7,140 7,283 7,428 7,577 7,729 7,883 8,041 8,202 8,366
Social Services 103.5%/Year 78,972 81,736 84,597 87,558 90,622 93,794 97,077 100,474 103,991 107,631
County Monitoring Fee 103.5%/Year 0 0 0 0 0 0 0 0 0 0
City Monitoring Fee 103.0%/Year 4,920 5,068 5,220 5,376 5,538 5,704 5,875 6,051 6,233 6,419
Bond Issuer Fee 103.5%/Year 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814
Replacement Reserves 103.5%/Year 42,000 43,470 44,991 46,566 48,196 49,883 51,629 53,436 55,306 57,242
Total Operating Expenses $1,108,338 $1,147,000 $1,187,013 $1,228,423 $1,271,279 $1,315,633 $1,361,536 $1,409,042 $1,458,207 $1,509,090
III.Net Operating Income $1,329,747 $1,352,037 $1,374,500 $1,397,128 $1,419,910 $1,442,836 $1,465,895 $1,489,075 $1,512,362 $1,535,744
(Less) Annual Debt Service (1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(Less) AGP Asset Management Fee 2 103.0%/Year (5,000)(5,150)(5,305)(5,464)(5,628)(5,796)(5,970)(6,149)(6,334)(6,524)
(Less) MGP Asset Management Fee 2 103.0%/Year (10,000)(10,300)(10,609)(10,927)(11,255)(11,593)(11,941)(12,299)(12,668)(13,048)
IV.Cash Flow Available for Distribution $206,624 $228,464 $250,464 $272,615 $294,905 $317,325 $339,862 $362,505 $385,238 $408,050
V.Deferred Developer Fee Payment 3 $6,222,000 $206,624 $228,464 $250,464 $272,615 $294,905 $317,325 $339,862 $362,505 $385,238 $408,050
Accrued Payment 206,624 435,089 685,553 958,168 1,253,073 1,570,398 1,910,260 2,272,764 2,658,003 3,066,052
VI.Residual Receipts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VII.Authority Loan
Beginning Balance $4,789,000 $4,932,670 $5,076,340 $5,220,010 $5,363,680 $5,507,350 $5,651,020 $5,794,690 $5,938,360 $6,082,030
Beginning Balance (Interest Calc)4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000
Add: Interest 3.00%143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670
(Less) Payments 4 50.00%0 0 0 0 0 0 0 0 0 0
Ending Balance 4,932,670 5,076,340 5,220,010 5,363,680 5,507,350 5,651,020 5,794,690 5,938,360 6,082,030 6,225,700
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 520 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
$1,705,988 $1,748,638 $1,792,354 $1,837,163 $1,883,092 $1,930,169 $1,978,423 $2,027,884 $2,078,581 $2,130,546
1,556,378 1,595,287 1,635,170 1,676,049 1,717,950 1,760,899 1,804,921 1,850,044 1,896,295 1,943,703
22,850 23,421 24,006 24,606 25,222 25,852 26,498 27,161 27,840 28,536
$3,285,216 $3,367,346 $3,451,530 $3,537,818 $3,626,264 $3,716,920 $3,809,843 $3,905,089 $4,002,716 $4,102,784
(164,261)(168,368)(172,577)(176,891)(181,313)(185,846)(190,492)(195,255)(200,136)(205,140)
$3,120,955 $3,198,979 $3,278,953 $3,360,927 $3,444,950 $3,531,074 $3,619,351 $3,709,834 $3,802,580 $3,897,645
1,368,910 1,416,822 1,466,411 1,517,735 1,570,856 1,625,836 1,682,740 1,741,636 1,802,593 1,865,684
8,533 8,704 8,878 9,055 9,236 9,421 9,609 9,802 9,998 10,198
111,398 115,297 119,332 123,509 127,832 132,306 136,936 141,729 146,690 151,824
0 0 0 0 0 0 0 0 0 0
6,612 6,810 7,015 7,225 7,442 7,665 7,895 8,132 8,376 8,627
7,053 7,300 7,555 7,820 8,093 8,377 8,670 8,973 9,287 9,613
59,245 61,319 63,465 65,686 67,985 70,365 72,827 75,376 78,015 80,745
$1,561,751 $1,616,251 $1,672,655 $1,731,030 $1,791,444 $1,853,969 $1,918,678 $1,985,648 $2,054,958 $2,126,690
$1,559,204 $1,582,727 $1,606,298 $1,629,897 $1,653,506 $1,677,105 $1,700,673 $1,724,186 $1,747,622 $1,770,955
(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(6,720)(6,921)(7,129)(7,343)(7,563)(7,790)(8,024)(8,264)(8,512)(8,768)
(13,439)(13,842)(14,258)(14,685)(15,126)(15,580)(16,047)(16,528)(17,024)(17,535)
$430,923 $453,842 $476,789 $499,747 $522,695 $545,613 $568,480 $591,271 $613,963 $636,530
$430,923 $453,842 $476,789 $499,747 $522,695 $545,613 $226,340 $0 $0 $0
3,496,975 3,950,817 4,427,606 4,927,352 5,450,047 5,995,660 6,222,000 6,222,000 6,222,000 6,222,000
$0 $0 $0 $0 $0 $0 $342,140 $591,271 $613,963 $636,530
$6,225,700 $6,369,370 $6,513,040 $6,656,710 $6,800,380 $6,944,050 $7,087,720 $7,060,320 $6,908,355 $6,745,043
4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000
143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670
0 0 0 0 0 0 (171,070)(295,636)(306,982)(318,265)
6,369,370 6,513,040 6,656,710 6,800,380 6,944,050 7,087,720 7,060,320 6,908,355 6,745,043 6,570,448
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 521 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
$2,183,809 $2,238,404 $2,294,365 $2,351,724 $2,410,517 $2,470,780 $2,532,549 $2,595,863 $2,660,759 $2,727,278
1,992,295 2,042,103 2,093,155 2,145,484 2,199,121 2,254,099 2,310,452 2,368,213 2,427,419 2,488,104
29,249 29,981 30,730 31,498 32,286 33,093 33,920 34,768 35,637 36,528
$4,205,354 $4,310,488 $4,418,250 $4,528,706 $4,641,924 $4,757,972 $4,876,921 $4,998,844 $5,123,815 $5,251,911
(210,268)(215,525)(220,913)(226,436)(232,097)(237,899)(243,846)(249,943)(256,191)(262,596)
$3,995,086 $4,094,963 $4,197,337 $4,302,271 $4,409,827 $4,520,073 $4,633,075 $4,748,902 $4,867,624 $4,989,315
1,930,983 1,998,567 2,068,517 2,140,915 2,215,847 2,293,402 2,373,671 2,456,749 2,542,735 2,631,731
10,402 10,610 10,822 11,038 11,259 11,484 11,714 11,948 12,187 12,431
157,138 162,637 168,330 174,221 180,319 186,630 193,162 199,923 206,920 214,162
0 0 0 0 0 0 0 0 0 0
8,886 9,153 9,427 9,710 10,001 10,301 10,610 10,929 11,257 11,594
9,949 10,297 10,658 11,031 11,417 11,816 12,230 12,658 13,101 13,559
83,571 86,496 89,523 92,657 95,900 99,256 102,730 106,326 110,047 113,899
$2,200,928 $2,277,760 $2,357,277 $2,439,572 $2,524,743 $2,612,890 $2,704,117 $2,798,533 $2,896,247 $2,997,377
$1,794,158 $1,817,203 $1,840,060 $1,862,699 $1,885,084 $1,907,183 $1,928,958 $1,950,369 $1,971,377 $1,991,938
(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(9,031)(9,301)(9,581)(9,868)(10,164)(10,469)(10,783)(11,106)(11,440)(11,783)
(18,061)(18,603)(19,161)(19,736)(20,328)(20,938)(21,566)(22,213)(22,879)(23,566)
$658,944 $681,176 $703,196 $724,972 $746,470 $767,654 $788,486 $808,927 $828,936 $848,467
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$658,944 $681,176 $703,196 $724,972 $746,470 $767,654 $788,486 $808,927 $828,936 $848,467
$6,570,448 $6,384,646 $6,187,728 $5,979,800 $5,760,984 $5,531,419 $5,291,262 $5,040,688 $4,779,895 $4,508,824
4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,779,895 4,508,824
143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,397 135,265
(329,472)(340,588)(351,598)(362,486)(373,235)(383,827)(394,243)(404,464)(414,468)(424,233)
6,384,646 6,187,728 5,979,800 5,760,984 5,531,419 5,291,262 5,040,688 4,779,895 4,508,824 4,219,855
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 522 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 31 Year 32 Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39 Year 40
$2,795,460 $2,865,347 $2,936,981 $3,010,405 $3,085,665 $3,162,807 $3,241,877 $3,322,924 $3,405,997 $3,491,147
2,550,307 2,614,064 2,679,416 2,746,401 2,815,061 2,885,438 2,957,574 3,031,513 3,107,301 3,184,983
37,442 38,378 39,337 40,320 41,329 42,362 43,421 44,506 45,619 46,759
$5,383,209 $5,517,789 $5,655,734 $5,797,127 $5,942,055 $6,090,606 $6,242,872 $6,398,943 $6,558,917 $6,722,890
(269,161)(275,890)(282,787)(289,857)(297,103)(304,531)(312,144)(319,948)(327,946)(336,145)
$5,114,048 $5,241,899 $5,372,946 $5,507,270 $5,644,952 $5,786,076 $5,930,728 $6,078,996 $6,230,971 $6,386,745
2,723,842 2,819,176 2,917,847 3,019,972 3,125,671 3,235,070 3,348,297 3,465,487 3,586,779 3,712,317
12,680 12,933 13,192 13,456 13,725 13,999 14,279 14,565 14,856 15,153
221,658 229,416 237,446 245,756 254,358 263,260 272,474 282,011 291,881 302,097
0 0 0 0 0 0 0 0 0 0
11,942 12,300 12,669 13,049 13,441 13,844 14,260 14,687 15,128 15,582
14,034 14,525 15,034 15,560 16,104 16,668 17,251 17,855 18,480 19,127
117,885 122,011 126,282 130,702 135,276 140,011 144,911 149,983 155,232 160,666
$3,102,041 $3,210,362 $3,322,470 $3,438,495 $3,558,575 $3,682,852 $3,811,473 $3,944,589 $4,082,357 $4,224,941
$2,012,007 $2,031,537 $2,050,477 $2,068,775 $2,086,377 $2,103,224 $2,119,255 $2,134,407 $2,148,613 $2,161,803
(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(12,136)(12,500)(12,875)(13,262)(13,660)(14,069)(14,491)(14,926)(15,374)(15,835)
(24,273)(25,001)(25,751)(26,523)(27,319)(28,139)(28,983)(29,852)(30,748)(31,670)
$867,476 $885,913 $903,728 $920,868 $937,276 $952,893 $967,658 $981,506 $994,369 $1,006,176
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$867,476 $885,913 $903,728 $920,868 $937,276 $952,893 $967,658 $981,506 $994,369 $1,006,176
$4,219,855 $3,912,713 $3,587,138 $3,242,888 $2,879,740 $2,497,495 $2,095,973 $1,675,023 $1,234,521 $774,372
4,219,855 3,912,713 3,587,138 3,242,888 2,879,740 2,497,495 2,095,973 1,675,023 1,234,521 774,372
126,596 117,381 107,614 97,287 86,392 74,925 62,879 50,251 37,036 23,231
(433,738)(442,957)(451,864)(460,434)(468,638)(476,447)(483,829)(490,753)(497,185)(503,088)
3,912,713 3,587,138 3,242,888 2,879,740 2,497,495 2,095,973 1,675,023 1,234,521 774,372 294,515
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 523 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 41 Year 42 Year 43 Year 44 Year 45 Year 46 Year 47 Year 48 Year 49 Year 50
$3,578,426 $3,667,886 $3,759,584 $3,853,573 $3,949,912 $4,048,660 $4,149,877 $4,253,624 $4,359,964 $4,468,963
3,264,608 3,346,223 3,429,879 3,515,626 3,603,516 3,693,604 3,785,944 3,880,593 3,977,608 4,077,048
47,928 49,127 50,355 51,614 52,904 54,227 55,582 56,972 58,396 59,856
$6,890,962 $7,063,236 $7,239,817 $7,420,813 $7,606,333 $7,796,491 $7,991,403 $8,191,189 $8,395,968 $8,605,867
(344,549)(353,162)(361,991)(371,041)(380,317)(389,825)(399,571)(409,560)(419,799)(430,294)
$6,546,413 $6,710,074 $6,877,826 $7,049,771 $7,226,016 $7,406,666 $7,591,833 $7,781,628 $7,976,169 $8,175,573
3,842,248 3,976,726 4,115,912 4,259,969 4,409,068 4,563,385 4,723,104 4,888,412 5,059,507 5,236,589
15,456 15,765 16,081 16,402 16,730 17,065 17,406 17,754 18,109 18,472
312,671 323,614 334,941 346,664 358,797 371,355 384,352 397,804 411,728 426,138
0 0 0 0 0 0 0 0 0 0
16,049 16,531 17,027 17,537 18,064 18,605 19,164 19,739 20,331 20,941
19,796 20,489 21,206 21,949 22,717 23,512 24,335 25,186 26,068 26,980
166,289 172,109 178,133 184,367 190,820 197,499 204,412 211,566 218,971 226,635
$4,372,509 $4,525,235 $4,683,299 $4,846,888 $5,016,195 $5,191,421 $5,372,772 $5,560,462 $5,754,713 $5,955,755
$2,173,904 $2,184,839 $2,194,527 $2,202,883 $2,209,820 $2,215,245 $2,219,061 $2,221,167 $2,221,456 $2,219,819
(16,310)(16,799)(17,303)(17,823)(18,357)(18,908)(19,475)(20,059)(20,661)(21,281)
(32,620)(33,599)(34,607)(35,645)(36,715)(37,816)(38,950)(40,119)(41,323)(42,562)
$2,124,974 $2,134,440 $2,142,616 $2,149,415 $2,154,748 $2,158,521 $2,160,635 $2,160,988 $2,159,472 $2,155,975
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$2,124,974 $2,134,440 $2,142,616 $2,149,415 $2,154,748 $2,158,521 $2,160,635 $2,160,988 $2,159,472 $2,155,975
$294,515 $0 $0 $0 $0 $0 $0 $0 $0 $0
294,515 0 0 0 0 0 0 0 0 0
8,835 0 0 0 0 0 0 0 0 0
(303,350)0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 524 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 51 Year 52 Year 53 Year 54 Year 55
$4,580,687 $4,695,205 $4,812,585 $4,932,899 $5,056,222
4,178,974 4,283,449 4,390,535 4,500,298 4,612,806
61,352 62,886 64,458 66,070 67,722
$8,821,014 $9,041,539 $9,267,578 $9,499,267 $9,736,749
(441,051)(452,078)(463,380)(474,964)(486,838)
$8,379,963 $8,589,462 $8,804,198 $9,024,303 $9,249,911
5,419,870 5,609,565 5,805,900 6,009,107 6,219,425
18,841 19,218 19,602 19,994 20,394
441,053 456,490 472,467 489,003 506,118
0 0 0 0 0
21,569 22,216 22,882 23,569 24,276
27,925 28,902 29,914 30,961 32,044
234,567 242,777 251,274 260,069 269,171
$6,163,824 $6,379,168 $6,602,039 $6,832,702 $7,071,429
$2,216,138 $2,210,294 $2,202,159 $2,191,601 $2,178,482
(21,920)(22,577)(23,254)(23,952)(24,671)
(43,839)(45,154)(46,509)(47,904)(49,341)
$2,150,380 $2,142,563 $2,132,396 $2,119,745 $2,104,470
$0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$2,150,380 $2,142,563 $2,132,396 $2,119,745 $2,104,470
$0 $0 $0 $0 $0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 525 of 855
Page 526 of 855
777 SOUTH FIGUEROA STREET, SUITE 2555 LOS ANGELES, CALIFORNIA 90017 PHONE 213.622.8095
2403007:PD;JLR
WWW.KEYSERMARSTON.COM 17166.015.001
ADVISORS IN:
Real Estate
Affordable Housing
Economic Development
BERKELEY
Debbie M. Kern
David Doezema
LOS ANGELES
Kathleen H. Head
Kevin E. Engstrom
Julie L. Romey
Tim R. Bretz
SAN DIEGO
Paul C. Marra
Linnie A. Gavino
EMERITUS
A. Jerry Keyser
Timothy C. Kelly
MEMORANDUM
At the request of the Housing Authority (“Authority”) of the City of Palm Desert (“City”),
Keyser Marston Associates, Inc. (“KMA”) prepared a financial gap analysis to reflect the
Palm Companies, LLC (“Developer”) revised proposal to develop a previously approved 241
unit affordable apartment project (“Project”) on the 10.49-acre City-owned site located on
the north side of Gerald Ford Drive between Cook Street and Portola Road (“Site”). The
Developer has returned to a two-phased approach to financing the development after the
City approved changing the Project to a one-phased development in June 2023.
The following analysis reviews the changes to the proposed Project since the Amended
and Restated DDLA was approved in June 2023, and determines whether the previously
approved financial assistance continues to be warranted.
EXECUTIVE SUMMARY
In October 2022 the City agreed to sell the Site to the Developer for the fair market value
of the Site, estimated at $3,425,000, and the Authority, acting as the Housing Successor
(collectively referred to as “Authority”), agreed to provide up to $6,755,000 in financial
assistance to the Developer, including the value of the land, through a Disposition and
Development Loan Agreement (“DDLA”). However, the Project did not receive a tax-
exempt bonds (“TEB”) allocation from the California Debt Limit Allocation Committee
(“CDLAC”) in either of the two 2023 allocation rounds.
To: Jessica Gonzales, Housing Manager
City of Palm Desert
From: Julie Romey
Date: March 27, 2024
Subject: Palm Villas at Millennium – Financial Gap Analysis (Revised)
Page 527 of 855
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 2
After changing the Project to a one phased Project in the Amended and Restated DDLA approved
in June 2023, the Project also did not receive a Multifamily Housing Program (“MHP”) loan
allocation. Therefore, the Developer requests returning to the October 2022 DDLA structure so
that the Project will be developed in two phases.
KMA completed a financial gap analysis that confirms the two-phased Project will require
$6,755,000, or $28,000 per unit, in financial assistance. The following are the summary of
changes to the Amended and Restated DDLA that is being requested by the Developer:
1. Project Description. The Project will be changed back to a two-phased project, with
Phase I including 6.02 acres (“Phase I Parcel”) and 121 units developed (“Phase I Project”)
and Phase II including 4.47 acres (“Phase II Parcel”)and 120 units developed (“Phase II
Project”). The total Site size (10.49 acres) and number of total units (241 units) remain
unchanged from the previously approved Amended and Restated DDLA.
2. Project Timeline. The Project Timeline will be adjusted to allow an April 2024 CDLAC
application submission. However, if the Phase I Project does not receive a CDLAC
allocation in the April 2024 round, the City will be able to terminate the Amended and
Restated DDLA. If all goes according to the plan, Phase I will be completed in November
2026 and Phase II in November 2027.
3. Land Purchase Price. The land Purchase Price will be set at $3,425,000 for the entire Site,
as referred to in the June 2023 Amended and Restated DDLA, which was based on a June
2022 fair market value appraisal. The purchase prices by phase will be $1,965,539 (Phase
I) and $1,459,461 (Phase II). The City will no longer carry-back the land value or require
the land to be sold at the fair market value at time of conveyance.
4. Authority Loan. The $6,755,000 in assistance will be provided by the Authority from the
Low and Moderate Income Housing Asset Fund (“LMIHAF”) money and allocated to Phase
I as a $1,965,539 loan and to Phase II as a $4,789,461 loan. Both loans will have 55 year
terms from Certificate of Occupancy (“COO”), 3% simple interest rates, annual payments
based on a proportional share of 50% share of residual receipts, with the loans being due
and payable at the end of the term.
5. Proposed Funding Sources. Neither phase will be applying for funding sources from the
State of California Housing and Community Development department (“HCD”). The
funding sources proposed for both phases are as follows:
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 3
6. Affordability Restrictions. The Project affordability restrictions will continue to include
the same affordability requirements. However, the restrictions will be split into two
phases and will be secured on the Phase I Parcel and Phase II Parcel separately:
a. Density Bonus Regulatory Agreement
b. Authority Regulatory Agreement
Based on the KMA analysis, the proposed changes to the Amended and Restated DDLA will result
in a feasible two-phased project that should be competitive in the April 2024 CDLAC round. Also,
the total amount of assistance requested from the Authority, or $6,755,000, is warranted and
meets the Senate Bill 341 (“SB 341”) income targeting requirements.
Phase I Phase II
Tax-Exempt Bonds CDLAC $44,853,000 $41,392,000
Permanent Loan TBD $13,910,000 $14,032,000
4% Federal Tax Credits TCAC $34,523,000 $30,113,000
State Tax Credits TCAC $17,618,000 $16,524,000
County Loan County $6,700,000 $0
Authority Loan Authority $1,966,000 $4,789,000
Contributed Developer Fee Developer $0 $0
Deferred Developer Fee Developer $7,441,000 $6,222,000
Project Based Vouchers County 60 PBVs 60 PBVsAwarded in 2022/23
Proposed Funding Sources Status
Awarded with TEBs
Awarded in 2022
TBD
N/A
N/A
Allocation
Entity
Competitive Process
Estimated Amount
N/A
Awarded with TEBs
Density Bonus Restrictions Phase I Phase II Total Project
Very-Low Income Units 12 12 24
Total City Restricted Units 12 12 24
As % of Total Units 10% 10% 10%
LMIHAF Income Targeting Phase I Phase II Total Project
<30% AMI Units (ELI)36 36 72
>30% & <60% AMI Units (59%)61 60 121
60% to 80% AMI Units (Low)23 23 46
Total City Restricted Units 120 119 239
% ELI 30% 30% 30%
% 59% AMI 51% 50% 51%
% Low 19% 19% 19%
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 4
BACKGROUND STATEMENT
The following summarizes the three version of the DDLA:
The KMA financial gap analysis for the Phase I and II Projects is located at the end of this
memorandum, in Appendices A and B, respectively. Each appendix is organized as follows:
October 2022 -DDLA
Approved
•City to sell Site to
Developer at Fair
Market Value, in two
phases.
•Authority to loan
Developer $6,755,000
from LMIHAF money
in two residual
receipts loans.
•Developer to
construct 241 untis in
two phases.
June 2023 -DDLA
Amended & Restated
•Extended completion
date to June 30, 2028.
•Modified Project to be
completed in one
phase.
•Modified affordability
restrictions for Project
to be competitive for
MHP funds.
•Decreased Authority
Loan to $3,330,000.
•City agreed to
carryback land
purchase price.
•Land purchase price to
be set at conveyance
of Site based on Fair
Market Value,
estimated at
$3,425,000.
April 2024 -DDLA
Amended & Restated
(Proposed)
•Modify Project back to
a two-phased
development.
•City to sell Site to
Developer in two
phases at a total
purchase price of
$3,425,000.
•Authority Loan to
revert to $6,755,000
from the LMIHAF.
•Affordability
restrictions to remain
unchanged other than
split between two
projects.
•City will receive
payment for land
when each parcel is
conveyed to the
Developer.
Table 1 Estimated Total Development Costs
Table 2A Affordability Mix
Table 2B Stabilized Net Operating Income
Table 3 Financial Gap Analysis
Table 4 Cash Flow Analysis
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 5
REVISED PROJECT DESCRIPTION
While the description of the entire Project has not changed from the entitlements approved in
June 2023, the Project will be split into two phases as follows:
1. The 10.49 acre Site will be divided into two parcels as follows:
2. The 241 unit Project will be divided into two Projects as follows:
3. The gross building area (“GBA”) for the Project remains at 248,171 square feet, which will
be divided into the two phases as follows:
4. Due to the approved Density Bonus Agreement, the parking ratio for the Project averages
1.45, and the surface spaces will be divided into the two phases as follows:
Project Site Phase I Phase II Total Project
Land Area (Sf Land)262,231 194,713 456,944
Acres 6.02 4.47 10.49
Unit Mix
Number of
Units
Unit Size
(Sf)
Number of
Units
Unit Size
(Sf)
Number of
Units
Unit Size
(Sf)
1-Bedroom Units 15 604 15 604 30 604
2-Bedroom Units 75 771 75 771 150 771
3-Bedroom Units 31 1,009 30 1,003 61 1,006
Totals/Averages 121 811 120 808 241 810
Density (Units/Acre)20.1 26.8 23.0
Phase I Phase II Total Project
Gross Building Area Phase I Phase II Total Project
Gross Living Area 98,188 97,005 195,193
Leasing Office / Service Areas 3,781 0 3,781
Common Area / Circlation 24,325 24,872 49,197
Total Units 126,294 121,877 248,171
FAR 0.5 0.6 0.5
Surface Parking Spaces Phase I Phase II Total Project
Total Parking Spaces 177 173 350
Parking Ratio (Space/Du)1.46 1.44 1.45
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 6
5. The following provides the amenities that will be provided in two phases. It should be
noted that there will be a reciprocal easement that will allow each phase to use the other
phase’s amenities.
6. All but the manager’s units will be restricted to households earning up to 60% AMI for 55
years from COO, as follows:
a. City Density Bonus Requirements
b. Authority Affordability Requirements
Phase I
Leasing Office
Community Room
Tot Lot
Laundry Facilities
Swimming Pool
Shade Structures
Phase II
Project Amenities
BBQ Area
Laundry Facilities
Shade Structures
City Density Bonus Restrictions
Phase I -
VLI
Phase II -
VLI
Total Project -
VLI
1-Beddroom Units 2 2 4
2-Bedroom Units 7 7 14
3-Bedroom Units 3 3 6
Total Restricted Units 12 12 24
As % of Total Units 10% 10% 10%
Authority Loan Restrictions - Phase I ELI 59% AMI Low Totals
1-Beddroom Units 6 9 0 15
2-Bedroom Units 27 48 0 75
3-Bedroom Units 3 4 23 30
Total Restricted Units 36 61 23 120
As % of Total Units 30% 51% 19% 100%
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 7
7. Based on the affordability restrictions to be imposed on the Project, the City will be able
to claim Regional Housing Needs Assessment (“RHNA”) credit as follows:
REVISED PROJECT TIMELINE
Given that the Project will be financed as two phases, the Project timeline was modified to be as
follows:
Authority Loan Restrictions - Phase II ELI 59% AMI Low Totals
1-Beddroom Units 6 9 0 15
2-Bedroom Units 27 47 0 74
3-Bedroom Units 3 4 23 30
Total Restricted Units 36 60 23 119
As % of Total Units 30% 50% 19% 100%
RHNA Credit Phase I Phase II Total Project
Extremely-Low Income Units 60 60 120
Very-Low Income Units 0 0 0
Low Income Units 60 59 119
Moderate Income Units 0 0 0
Unrestricted Units 1 1 2
Total RHNA Credit 121 120 241
As % of Total Units 100% 100% 100%
Projected Timeline Phase I Phase II
SLA Exemption Approved by HCD
Entitlements Secured / DDA Executed
County PBVs (45) & Loan Awarded
1st DDA Amendment
County PBVs (75) Awarded
2nd DDA Amendment
CDLAC/TCAC Applications Submission April 2024 April 2025
CDLAC/TCAC Allocation Award June 2024 June 2025
All Funding Secured November 2024 November 2025
Land Conveyance / Construction Loan Closing January 2025 January 2026
Construction Commences May 2025 May 2026
Construction Completion / COO Issued May 2027 May 2028
Permanent Loan Closing June 2027 June 2028
April 2024
September 22, 2022
October 13, 2022
January 2023
June 2023
December 2023
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 8
It should be noted that if Phase I does not receive a CDLAC allocation in the April 2024 round,
and the Phase I Project has not secured the missing funding by December 2024, the City will be
able to terminate the Amended and Restated DDLA.
REVISED FINANCIAL GAP ANLAYSIS (APPENDICES A & B)
KMA found the Developer’s development cost estimates and projections of funding sources to
be reasonable given the current high cost and interest rate environment. It should be noted that
the development costs include State and Federal prevailing wage premiums due to the funding
source requirements. Also, all of the offsite improvements will be completed during Phase I.
The detailed analysis is provided in Appendices A and B, and are summarized as follows:
REVISED SB 341 ANALYSIS
The following summarizes how the proposed Project, which will be committing $6,755,000 of
LMIHAF money in fiscal year 2023/2024, will meet the affordability requirements of SB 341 in the
Project.
REVISED CASH FLOW ANALYSIS (APPENDICES A & B – TABLE 4)
The following summarizes the estimated Authority Loan repayments based on the cash flow
projections:
Financial Gap Calculation Phase I Phase II Total Project
Total Development Costs $82,158,000 $71,679,000 $153,837,000
(Less) Potential Outside Funding Sources (80,192,000) (66,890,000) (147,082,000)
Financial Gap $1,966,000 $4,789,000 $6,755,000
Per Unit $16,200 $39,900 $28,000
Income Targeting Analysis
ELI
Households
VLI / 59% AMI
Households
Low Income
Households
Total LMIHAF
Units
Units Assisted/Restricted 72 121 46 239
LMIHAF Loans $2,034,979 $3,419,895 $1,300,126 $6,755,000
As a % of Total Loan Amount 30%51% 19% 100%
Requirements (as a % of Total Funds)At Least 30%At Most 20%
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Jessica Gonzales, City of Palm Desert March 27, 2024
Palm Villas at Millennium – Financial Gap Analysis (Revised) Page 9
In both phases, the Authority Loans are projected to be repaid before the end of the 55 year
term. It should be noted that per the cash flow analyses, the deferred developer fee is not paid
off by year 15. However, if this is still the case once the phases are completed, the Developer
will be able to contribute enough of the deferred developer fee so that the deferred amount will
be repaid within 15 years per the IRS requirements.
CONCLUSIONS
Based on the KMA analysis of the Developer’s proposal, the $6,755,000 proposed financial
assistance that was approved in 2022 is still required for the revised Project. However, KMA
recommends that the City review the estimated costs again once the funding sources have been
committed.
Attachments
Projected Authority Loan Payments Phase I Phase II
End of Term P&I Due &
Payable
P&I Due &
Payable
Loan Amount $1,966,000 $4,789,000
Ending Loan Balance in Year 55 $0 $0
Estimated Share of Residual Receipts 11.34% 50.00%
Projected Year Loan to Be Paid Off Year 53 Year 41
Nominal Amount of Payments $4,797,000 $9,883,000
Present Value of Payments $539,000 $1,850,000
Page 535 of 855
APPENDIX A
PHASE I F INANCIAL GAP ANALYSIS
Page 536 of 855
APPENDIX A - TABLE 1
ESTIMATED DEVELOPMENT COSTS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Land Assemblage Costs
Acquisition Price 2 121 Units $16,248 /Unit $1,966,000
Closing Costs 0%of Purchase Price 0
Total Land Assemblage Costs 121 Units $16,200 /Unit $1,966,000
II.Direct Costs 3
Off-site Improvements 4 Allowance $4,487,000
On-site Improvements 262,231 Sf Land $34 /Sf Land 8,953,000
Extraordinary Costs 5 121 Units $8,653 /Unit 1,047,000
Residential Structure 122,513 Sf GBA $251 /Unit 30,752,000
Community Building 3,781 Sf GBA $519 of Construction Costs 1,963,000
Furnishings, Fixtures & Equipment 121 Units $620 of Construction Costs 75,000
Contractor Fees / General Requirements 14%of Construction Costs 6,621,000
Construction Insurance / Bonds 1%of Construction Costs 538,000
Contingency Allowance 5%of Other Direct Costs 2,718,000
Total Direct Costs 121 Units $472,300 /Unit $57,154,000
III.Indirect Costs
Architecture, Engineering & Consultants 4%of Direct Costs $2,133,000
Permits & Fees 6 121 Units $21,033 /Unit 2,545,000
Taxes, Insurance, Legal & Accounting 2%of Direct Costs 1,396,000
Marketing & Leasing 121 Units $496 /Unit 60,000
Developer Fee 7 10,070,000
Contingency Allowance 3%of Other Indirect Costs 500,000
Total Indirect Costs 121 Units $138,000 /Unit $16,704,000
IV.Financing Costs
Tax-Exempt Bonds Interest 8 $44,853,250 TEBs 8.00%Interest $4,662,000
Taxable Bonds Interest $0 Txble Bonds 8.00%Interest 0
Financing Fees
Construction Loan $44,853,250 Loan 1.11 Points 498,000
Permanent Loan $13,910,000 Loan 1.14 Points 159,000
Issuance Costs $44,853,250 TEBs 0.52 Points 231,000
Tax Credit Fees 121 Units $1,044 /Unit 126,000
Capitalized Reserves
Operating Reserves $186,046 /Mo 3 Months 558,000
SLP Fee 20 Years $5,000 /Year 100,000
Total Financing Costs 121 Units $52,300 /Unit $6,334,000
V.Total Development Costs 121 Units $679,000 /Unit $82,158,000
1
2
3
4
5
6
7
8
Based on Developer's estimates, which KMA determined to be reasonable based on experience.
Based on City appraisal from June 2022.
Project will be required to pay both Federal and State prevailing wages.
Includes solar, swimming pool and parking space shade covers.
Maximum developer fee allowed by TCAC.
Assumes a 24-month development period and a 65% average outstanding balance.
All offsite improvements required will be constructed in Phase I.
Does not include SCE and TUMF fees, which will be waived or refunded.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 1; jlr; 3/26/2024
Page 537 of 855
APPENDIX A - TABLE 2A
AFFORDABILITY MIX
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
Number Applicable Utility Applicable
of Units TCAC Rent HCD Rent DB Rent Gross Rent Allowance Net Rent
30% TCAC, ELI HCD, VLI DB 12 30% AMI ELI HCD VLI HCD
1-Bdrm Units 2 $524 $567 $945 $524 $29 $495
2-Bdrm Units 7 $629 $638 $1,063 $629 $24 $605
3-Bdrm Units 3 $727 $709 $1,181 $709 $20 $689
30% TCAC, ELI HCD 24 30% AMI ELI HCD N/A
1-Bdrm Units 4 $524 $567 N/A $524 $29 $495
2-Bdrm Units 20 $629 $638 N/A $629 $24 $605
3-Bdrm Units 0 $727 $709 N/A $709 $20 $689
30% TCAC, 59% HCD 14 30% AMI 59% Low N/A
1-Bdrm Units 9 $524 $1,115 N/A $524 $29 $495
2-Bdrm Units 1 $629 $1,254 N/A $629 $24 $605
3-Bdrm Units 4 $727 $1,394 N/A $727 $20 $707
30% TCAC, Low HCD 10 30% AMI Low N/A
1-Bdrm Units 0 $524 $1,134 N/A $524 $29 $495
2-Bdrm Units 0 $629 $1,276 N/A $629 $24 $605
3-Bdrm Units 10 $727 $1,418 N/A $727 $20 $707
60% TCAC, 59% HCD 47 60% AMI 59% Low N/A
1-Bdrm Units 0 $1,049 $1,115 N/A $1,049 $29 $1,020
2-Bdrm Units 47 $1,258 $1,254 N/A $1,254 $24 $1,230
3-Bdrm Units 0 $1,454 $1,394 N/A $1,394 $20 $1,374
60% TCAC, Low HCD 13 60% AMI Low N/A
1-Bdrm Units 0 $1,049 $1,134 N/A $1,049 $29 $1,020
2-Bdrm Units 0 $1,258 $1,276 N/A $1,258 $24 $1,234
3-Bdrm Units 13 $1,454 $1,418 N/A $1,418 $20 $1,398
Manager Unit 1
1-Bdrm Units 0
2-Bdrm Units 0
3-Bdrm Units 1
PBV Overhang 60 FMR Tenant Rent Overhang
Utility
Allowance
Net
Overhang
1-Bdrm Units 15 $1,772 $495 $1,277 $29.37 $1,248.00
2-Bdrm Units 28 $2,211 $605 $1,606 $24.06 $1,582.00
3-Bdrm Units 3 $2,977 $689 $2,288 $20.48 $2,268.00
3-Bdrm Units 14 $2,977 $707 $2,270 $20.48 $2,250.00
Note: Rents are based on 2023 rents and the utility allowances are based on Developer CAUC estimates on 3/12/24 for all electric building.
TOTAL UNITS 121 AVERAGE AFFORDABILITY:45%
1-Bdrm Units 15 POTENTIAL GROSS INCOME - BASE:$1,347,475
2-Bdrm Units 75 POTENTIAL GROSS INCOME - PBV:$1,215,840
3-Bdrm Units 31
PBV SUBSIDY 60 LMIHAF City Regulatory Agreement:120
1-Bdrm Units 15 ELI HCD Units 36
2-Bdrm Units 28 VLI HCD Units 0
3-Bdrm Units 17 59% HCD Units 61
Low HCD Units 23
TCAC Regulatory Agreement:
30% AMI Units 60 Density Bonus City Regulatory Agreement
40% AMI Units 0 VLI HCD Units 12
50% AMI Units 0
60% AMI Units 60
70% AMI Units 0
Total Restricted Units 120
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; AFF - Ph 1; jlr; 3/26/2024
Page 538 of 855
APPENDIX A - TABLE 2B
STABILIZED NET OPERATING INCOME
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 1 121 Units $928 /Unit/Mo $1,347,475
Projected Gross Income - PBV Subsidy 1 60 PBVs $1,689 /Unit/Mo 1,215,840
Miscellaneous Income 2 121 Units $12 /Unit/Mo 18,000
Projected Gross Income $2,581,315
(Less) Vacancy & Collection Allowance 2 5%of PGI (129,065)
Effective Gross Income $2,452,249
II.Operating Expenses 2
General Operating Expenses 121 Units $8,130 /Unit $983,712
Property Taxes & Assessments 121 Units $58 /Unit 7,000
Social Services 121 Units $653 /Unit 78,972
County Monitoring Fee 121 Units $100 /Unit 12,100
City Monitoring Fee 121 Units $41 /Unit 4,961
Bond Issuer Fee Allowance 5,000
Replacement Reserves 121 Units $350 /Unit 42,350
Total Operating Expenses 121 Units $9,373 /Unit $1,134,095
III.Net Operating Income $1,318,154
1
2
See Table 2A.
Based on Developer estimates, which KMA determined to be reasonable based on experience.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 1; jlr; 3/26/2024
Page 539 of 855
APPENDIX A - TABLE 3
FINANCIAL GAP ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Available Funding Sources
A.Permanent Loan 1.20 DCR $1,098,462 Debt Svc $13,910,000
7.50%Interest 40 Years
B.Federal Tax Credit Equity $40,147,466 Gross TC $0.86 Equity $34,523,000
C.State Tax Credit Equity $22,659,500 Gross TC $0.78 Equity $17,618,000
D.County Loan 2 121 Units $55,400 /Unit $6,700,000
E.Contributed Developer Fee 3 0%of Developr Fee $0
F.Deferred Developer Fee 74%of Developr Fee $7,441,000
Total Available Funding Sources 121 Units $662,700 /Unit $80,192,000
II.Financial Gap Calculation
Total Development Costs $82,158,000
(Less) Available Funding Sources (80,192,000)
Financial Gap 121 Units $16,200 /Unit $1,966,000
III.Authority Funding Sources
HOME Funds $0
LMIHAF Funds 1,966,000
PLHA Funds 0
Total Authority Assistance 121 Units $16,200 /Unit $1,966,000
1
2
3
Based on Developer estimates, which KMA determined to be reasonable based on experience.
Previously awarded by County for entire Project; however, County has verified willingness to allow the entire amount to be used
in Phase I only.
Per TCAC draft guidelines, a portion of the deferred fee may be requried to be contributed to the Project.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 1; jlr; 3/26/2024
Page 540 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year $1,347,475 $1,381,161 $1,415,691 $1,451,083 $1,487,360 $1,524,544 $1,562,657 $1,601,724 $1,641,767 $1,682,811
Projected Gross Income - PBV Subsidy 102.5%/Year 1,215,840 1,246,236 1,277,392 1,309,327 1,342,060 1,375,611 1,410,002 1,445,252 1,481,383 1,518,418
Miscellaneous Income 102.5%/Year 18,000 18,450 18,911 19,384 19,869 20,365 20,874 21,396 21,931 22,480
Projected Gross Income $2,581,315 $2,645,847 $2,711,994 $2,779,793 $2,849,288 $2,920,521 $2,993,534 $3,068,372 $3,145,081 $3,223,708
(Less) Vacancy & Collection Allowance 5%of PGI (129,065)(132,292)(135,599)(138,989)(142,464)(146,026)(149,676)(153,418)(157,254)(161,185)
Effective Gross Income $2,452,249 $2,513,555 $2,576,394 $2,640,804 $2,706,824 $2,774,495 $2,843,857 $2,914,954 $2,987,827 $3,062,523
II.Operating Expenses
General Operating Expenses 103.5%/Year $983,712 1,018,142 1,053,777 1,090,659 1,128,832 1,168,341 1,209,233 1,251,556 1,295,361 1,340,698
Property Taxes & Assessments 102.0%/Year 7,000 7,140 7,283 7,428 7,577 7,729 7,883 8,041 8,202 8,366
Social Services 103.5%/Year 78,972 81,736 84,597 87,558 90,622 93,794 97,077 100,474 103,991 107,631
County Monitoring Fee 103.5%/Year 12,100 12,524 12,962 13,415 13,885 14,371 14,874 15,395 15,933 16,491
City Monitoring Fee 103.0%/Year 4,961 5,110 5,263 5,421 5,584 5,751 5,924 6,101 6,284 6,473
Bond Issuer Fee 103.5%/Year 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814
Replacement Reserves 103.5%/Year 42,350 43,832 45,366 46,954 48,598 50,299 52,059 53,881 55,767 57,719
Total Operating Expenses $1,134,095 $1,173,659 $1,214,604 $1,256,979 $1,300,835 $1,346,223 $1,393,196 $1,441,810 $1,492,122 $1,544,192
III.Net Operating Income $1,318,154 $1,339,897 $1,361,790 $1,383,825 $1,405,989 $1,428,272 $1,450,661 $1,473,144 $1,495,705 $1,518,331
(Less) Annual Debt Service (1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(Less) AGP Asset Management Fee 2 103.0%/Year (5,000)(5,150)(5,305)(5,464)(5,628)(5,796)(5,970)(6,149)(6,334)(6,524)
(Less) MGP Asset Management Fee 2 103.0%/Year (10,000)(10,300)(10,609)(10,927)(11,255)(11,593)(11,941)(12,299)(12,668)(13,048)
IV.Cash Flow Available for Distribution $204,692 $225,985 $247,415 $268,972 $290,645 $312,421 $334,289 $356,234 $378,242 $400,298
V.Deferred Developer Fee Payment 3 $7,441,000 $204,692 $225,985 $247,415 $268,972 $290,645 $312,421 $334,289 $356,234 $378,242 $400,298
Accrued Payment 204,692 430,677 678,092 947,064 1,237,709 1,550,130 1,884,419 2,240,652 2,618,894 3,019,192
VI.Residual Receipts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VII.Authority Loan
Beginning Balance $1,966,000 $2,024,980 $2,083,960 $2,142,940 $2,201,920 $2,260,900 $2,319,880 $2,378,860 $2,437,840 $2,496,820
Beginning Balance (Interest Calc)1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
Add: Interest 3.00%58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
(Less) Payments 4 11.34%0 0 0 0 0 0 0 0 0 0
Ending Balance 2,024,980 2,083,960 2,142,940 2,201,920 2,260,900 2,319,880 2,378,860 2,437,840 2,496,820 2,555,800
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 541 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
$1,724,881 $1,768,003 $1,812,204 $1,857,509 $1,903,946 $1,951,545 $2,000,334 $2,050,342 $2,101,601 $2,154,141
1,556,378 1,595,287 1,635,170 1,676,049 1,717,950 1,760,899 1,804,921 1,850,044 1,896,295 1,943,703
23,042 23,618 24,208 24,813 25,434 26,069 26,721 27,389 28,074 28,776
$3,304,301 $3,386,908 $3,471,581 $3,558,371 $3,647,330 $3,738,513 $3,831,976 $3,927,775 $4,025,970 $4,126,619
(165,215)(169,345)(173,579)(177,918)(182,366)(186,925)(191,598)(196,388)(201,298)(206,331)
$3,139,086 $3,217,563 $3,298,002 $3,380,452 $3,464,964 $3,551,588 $3,640,378 $3,731,387 $3,824,672 $3,920,289
1,387,623 1,436,190 1,486,456 1,538,482 1,592,329 1,648,061 1,705,743 1,765,444 1,827,234 1,891,188
8,533 8,704 8,878 9,055 9,236 9,421 9,609 9,802 9,998 10,198
111,398 115,297 119,332 123,509 127,832 132,306 136,936 141,729 146,690 151,824
17,068 17,666 18,284 18,924 19,586 20,272 20,981 21,716 22,476 23,262
6,667 6,867 7,073 7,285 7,504 7,729 7,961 8,200 8,446 8,699
7,053 7,300 7,555 7,820 8,093 8,377 8,670 8,973 9,287 9,613
59,739 61,830 63,994 66,234 68,552 70,951 73,434 76,005 78,665 81,418
$1,598,081 $1,653,852 $1,711,572 $1,771,309 $1,833,132 $1,897,116 $1,963,335 $2,031,868 $2,102,795 $2,176,201
$1,541,005 $1,563,711 $1,586,430 $1,609,144 $1,631,831 $1,654,472 $1,677,042 $1,699,519 $1,721,876 $1,744,088
(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(6,720)(6,921)(7,129)(7,343)(7,563)(7,790)(8,024)(8,264)(8,512)(8,768)
(13,439)(13,842)(14,258)(14,685)(15,126)(15,580)(16,047)(16,528)(17,024)(17,535)
$422,385 $444,486 $466,582 $488,654 $510,681 $532,641 $554,510 $576,265 $597,878 $619,323
$422,385 $444,486 $466,582 $488,654 $510,681 $532,641 $554,510 $576,265 $425,606 $0
3,441,576 3,886,062 4,352,644 4,841,298 5,351,978 5,884,619 6,439,129 7,015,394 7,441,000 7,441,000
$0 $0 $0 $0 $0 $0 $0 $0 $172,272 $619,323
$2,555,800 $2,614,780 $2,673,760 $2,732,740 $2,791,720 $2,850,700 $2,909,680 $2,968,660 $3,027,640 $3,067,079
1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
0 0 0 0 0 0 0 0 (19,541)(70,251)
2,614,780 2,673,760 2,732,740 2,791,720 2,850,700 2,909,680 2,968,660 3,027,640 3,067,079 3,055,808
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 542 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
$2,207,994 $2,263,194 $2,319,774 $2,377,768 $2,437,212 $2,498,143 $2,560,596 $2,624,611 $2,690,226 $2,757,482
1,992,295 2,042,103 2,093,155 2,145,484 2,199,121 2,254,099 2,310,452 2,368,213 2,427,419 2,488,104
29,495 30,232 30,988 31,763 32,557 33,371 34,205 35,060 35,937 36,835
$4,229,785 $4,335,529 $4,443,917 $4,555,015 $4,668,891 $4,785,613 $4,905,253 $5,027,885 $5,153,582 $5,282,421
(211,489)(216,776)(222,195)(227,750)(233,444)(239,280)(245,262)(251,394)(257,679)(264,121)
$4,018,296 $4,118,753 $4,221,722 $4,327,265 $4,435,447 $4,546,333 $4,659,991 $4,776,491 $4,895,903 $5,018,301
1,957,379 2,025,887 2,096,794 2,170,181 2,246,138 2,324,752 2,406,119 2,490,333 2,577,495 2,667,707
10,402 10,610 10,822 11,038 11,259 11,484 11,714 11,948 12,187 12,431
157,138 162,637 168,330 174,221 180,319 186,630 193,162 199,923 206,920 214,162
24,076 24,919 25,791 26,694 27,628 28,595 29,596 30,632 31,704 32,814
8,960 9,229 9,506 9,791 10,085 10,387 10,699 11,020 11,350 11,691
9,949 10,297 10,658 11,031 11,417 11,816 12,230 12,658 13,101 13,559
84,268 87,217 90,270 93,429 96,699 100,083 103,586 107,212 110,964 114,848
$2,252,171 $2,330,797 $2,412,169 $2,496,385 $2,583,544 $2,673,749 $2,767,106 $2,863,726 $2,963,722 $3,067,212
$1,766,124 $1,787,956 $1,809,553 $1,830,880 $1,851,902 $1,872,584 $1,892,885 $1,912,765 $1,932,182 $1,951,088
(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(9,031)(9,301)(9,581)(9,868)(10,164)(10,469)(10,783)(11,106)(11,440)(11,783)
(18,061)(18,603)(19,161)(19,736)(20,328)(20,938)(21,566)(22,213)(22,879)(23,566)
$640,571 $661,590 $682,349 $702,814 $722,949 $742,715 $762,074 $780,984 $799,401 $817,278
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$640,571 $661,590 $682,349 $702,814 $722,949 $742,715 $762,074 $780,984 $799,401 $817,278
$3,055,808 $3,042,127 $3,026,061 $3,007,641 $2,986,900 $2,963,874 $2,938,607 $2,911,143 $2,881,535 $2,849,838
1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
(72,661)(75,045)(77,400)(79,721)(82,005)(84,248)(86,443)(88,588)(90,677)(92,705)
3,042,127 3,026,061 3,007,641 2,986,900 2,963,874 2,938,607 2,911,143 2,881,535 2,849,838 2,816,112
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 543 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 31 Year 32 Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39 Year 40
$2,826,419 $2,897,080 $2,969,506 $3,043,744 $3,119,838 $3,197,834 $3,277,780 $3,359,724 $3,443,717 $3,529,810
2,550,307 2,614,064 2,679,416 2,746,401 2,815,061 2,885,438 2,957,574 3,031,513 3,107,301 3,184,983
37,756 38,700 39,668 40,659 41,676 42,718 43,786 44,880 46,002 47,152
$5,414,482 $5,549,844 $5,688,590 $5,830,805 $5,976,575 $6,125,989 $6,279,139 $6,436,117 $6,597,020 $6,761,946
(270,724)(277,492)(284,429)(291,540)(298,828)(306,299)(313,956)(321,805)(329,850)(338,097)
$5,143,758 $5,272,352 $5,404,161 $5,539,265 $5,677,747 $5,819,690 $5,965,183 $6,114,312 $6,267,170 $6,423,849
2,761,077 2,857,714 2,957,734 3,061,255 3,168,399 3,279,293 3,394,068 3,512,861 3,635,811 3,763,064
12,680 12,933 13,192 13,456 13,725 13,999 14,279 14,565 14,856 15,153
221,658 229,416 237,446 245,756 254,358 263,260 272,474 282,011 291,881 302,097
33,962 35,151 36,381 37,655 38,972 40,336 41,748 43,209 44,722 46,287
12,042 12,403 12,775 13,158 13,553 13,960 14,378 14,810 15,254 15,712
14,034 14,525 15,034 15,560 16,104 16,668 17,251 17,855 18,480 19,127
118,868 123,028 127,334 131,791 136,403 141,178 146,119 151,233 156,526 162,004
$3,174,320 $3,285,171 $3,399,896 $3,518,630 $3,641,515 $3,768,694 $3,900,318 $4,036,544 $4,177,530 $4,323,444
$1,969,438 $1,987,182 $2,004,265 $2,020,635 $2,036,232 $2,050,996 $2,064,864 $2,077,769 $2,089,640 $2,100,405
(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)(1,098,462)
(12,136)(12,500)(12,875)(13,262)(13,660)(14,069)(14,491)(14,926)(15,374)(15,835)
(24,273)(25,001)(25,751)(26,523)(27,319)(28,139)(28,983)(29,852)(30,748)(31,670)
$834,568 $851,219 $867,177 $882,388 $896,792 $910,327 $922,928 $934,528 $945,056 $954,438
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$834,568 $851,219 $867,177 $882,388 $896,792 $910,327 $922,928 $934,528 $945,056 $954,438
$2,816,112 $2,780,426 $2,742,850 $2,703,465 $2,662,354 $2,619,609 $2,575,329 $2,529,620 $2,482,595 $2,434,375
1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000 1,966,000
58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980 58,980
(94,667)(96,555)(98,365)(100,091)(101,725)(103,260)(104,689)(106,005)(107,199)(108,264)
2,780,426 2,742,850 2,703,465 2,662,354 2,619,609 2,575,329 2,529,620 2,482,595 2,434,375 2,385,092
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 544 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 41 Year 42 Year 43 Year 44 Year 45 Year 46 Year 47 Year 48 Year 49 Year 50
$3,618,055 $3,708,507 $3,801,219 $3,896,250 $3,993,656 $4,093,498 $4,195,835 $4,300,731 $4,408,249 $4,518,455
3,264,608 3,346,223 3,429,879 3,515,626 3,603,516 3,693,604 3,785,944 3,880,593 3,977,608 4,077,048
48,331 49,539 50,778 52,047 53,349 54,682 56,049 57,451 58,887 60,359
$6,930,994 $7,104,269 $7,281,876 $7,463,923 $7,650,521 $7,841,784 $8,037,829 $8,238,774 $8,444,744 $8,655,862
(346,549)(355,213)(364,093)(373,195)(382,525)(392,088)(401,891)(411,938)(422,236)(432,792)
$6,584,445 $6,749,057 $6,917,783 $7,090,728 $7,267,996 $7,449,696 $7,635,938 $7,826,836 $8,022,507 $8,223,070
3,894,771 4,031,088 4,172,176 4,318,203 4,469,340 4,625,767 4,787,668 4,955,237 5,128,670 5,308,173
15,456 15,765 16,081 16,402 16,730 17,065 17,406 17,754 18,109 18,472
312,671 323,614 334,941 346,664 358,797 371,355 384,352 397,804 411,728 426,138
47,907 49,584 51,319 53,115 54,974 56,899 58,890 60,951 63,084 65,292
16,183 16,668 17,169 17,684 18,214 18,760 19,323 19,903 20,500 21,115
19,796 20,489 21,206 21,949 22,717 23,512 24,335 25,186 26,068 26,980
167,675 173,543 179,617 185,904 192,411 199,145 206,115 213,329 220,795 228,523
$4,474,459 $4,630,753 $4,792,509 $4,959,920 $5,133,183 $5,312,502 $5,498,090 $5,690,165 $5,888,955 $6,094,694
$2,109,986 $2,118,304 $2,125,274 $2,130,808 $2,134,813 $2,137,194 $2,137,848 $2,136,671 $2,133,552 $2,128,376
(16,310)(16,799)(17,303)(17,823)(18,357)(18,908)(19,475)(20,059)(20,661)(21,281)
(32,620)(33,599)(34,607)(35,645)(36,715)(37,816)(38,950)(40,119)(41,323)(42,562)
$2,061,056 $2,067,906 $2,073,364 $2,077,340 $2,079,741 $2,080,470 $2,079,423 $2,076,493 $2,071,569 $2,064,532
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$2,061,056 $2,067,906 $2,073,364 $2,077,340 $2,079,741 $2,080,470 $2,079,423 $2,076,493 $2,071,569 $2,064,532
$2,385,092 $2,210,282 $2,034,696 $1,858,491 $1,678,609 $1,493,059 $1,301,859 $1,105,042 $902,653 $694,751
1,966,000 1,966,000 1,966,000 1,858,491 1,678,609 1,493,059 1,301,859 1,105,042 902,653 694,751
58,980 58,980 58,980 55,755 50,358 44,792 39,056 33,151 27,080 20,843
(233,789)(234,566)(235,185)(235,636)(235,909)(235,991)(235,873)(235,540)(234,982)(234,184)
2,210,282 2,034,696 1,858,491 1,678,609 1,493,059 1,301,859 1,105,042 902,653 694,751 481,410
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 545 of 855
APPENDIX A - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE I
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $7,441,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 11.34%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years per
IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 38.65% of the residual receives based on the
size of the County loan.
Year 51 Year 52 Year 53 Year 54 Year 55
$4,631,417 $4,747,202 $4,865,882 $4,987,529 $5,112,217
4,178,974 4,283,449 4,390,535 4,500,298 4,612,806
61,868 63,415 65,000 66,625 68,291
$8,872,259 $9,094,065 $9,321,417 $9,554,452 $9,793,314
(443,612)(454,702)(466,070)(477,722)(489,665)
$8,428,647 $8,639,363 $8,855,347 $9,076,731 $9,303,649
5,493,960 5,686,248 5,885,267 6,091,251 6,304,445
18,841 19,218 19,602 19,994 20,394
441,053 456,490 472,467 489,003 506,118
67,578 69,943 72,391 74,925 77,547
21,749 22,401 23,073 23,765 24,478
27,925 28,902 29,914 30,961 32,044
236,522 244,800 253,368 262,236 271,414
$6,307,626 $6,528,002 $6,756,081 $6,992,135 $7,236,441
$2,121,021 $2,111,361 $2,099,266 $2,084,596 $2,067,208
(21,920)(22,577)(23,254)(23,952)(24,671)
(43,839)(45,154)(46,509)(47,904)(49,341)
$2,055,262 $2,043,630 $2,029,502 $2,012,740 $1,993,196
$0 $0 $0 $0 $0
7,441,000 7,441,000 7,441,000 7,441,000 7,441,000
$2,055,262 $2,043,630 $2,029,502 $2,012,740 $1,993,196
$481,410 $262,720 $38,789 $0 $0
481,410 262,720 38,789 0 0
14,442 7,882 1,164 0 0
(233,132)(231,813)(39,952)0 0
262,720 38,789 0 0 0
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 1; jlr; 3/26/2024 Page 546 of 855
APPENDIX B
PHASE I I F INANCIAL GAP ANALYSIS
Page 547 of 855
APPENDIX B - TABLE 1
ESTIMATED DEVELOPMENT COSTS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Land Assemblage Costs
Acquisition Price 2 120 Units $12,158 /Unit $1,459,000
Closing Costs 0%of Purchase Price 0
Total Land Assemblage Costs 120 Units $12,200 /Unit $1,459,000
II.Direct Costs 3
Off-site Improvements 4 Allowance $0
On-site Improvements 194,713 Sf Land $46 /Sf Land 8,953,000
Extraordinary Costs 5 120 Units $7,000 /Unit 840,000
Residential Structure 121,877 Sf GBA $250 /Unit 30,498,000
Community Building 0 Sf GBA $0 of Constructio 0
Furnishings, Fixtures & Equipment 120 Units $625 of Constructio 75,000
Contractor Fees / General Requirements 14%of Construction Costs 5,651,000
Construction Insurance / Bonds 1%of Construction Costs 459,000
Contingency Allowance 5%of Other Direct Costs 2,320,000
Total Direct Costs 120 Units $406,600 /Unit $48,796,000
III.Indirect Costs
Architecture, Engineering & Consultants 4%of Direct Costs $1,783,000
Permits & Fees 6 120 Units $22,267 /Unit 2,672,000
Taxes, Insurance, Legal & Accounting 3%of Direct Costs 1,239,000
Marketing & Leasing 120 Units $500 /Unit 60,000
Developer Fee 7 8,784,000
Contingency Allowance 3%of Other Indirect Costs 500,000
Total Indirect Costs 120 Units $125,300 /Unit $15,038,000
IV.Financing Costs
Tax-Exempt Bonds Interest 8 $41,391,683 TEBs 8.00%Interest $4,779,000
Taxable Bonds Interest $0 Txble Bonds 8.00%Interest 0
Financing Fees
Construction Loan $41,391,683 Loan 1.12 Points 464,000
Permanent Loan $14,032,000 Loan 1.00 Points 140,000
Issuance Costs $41,391,683 TEBs 0.55 Points 229,000
Tax Credit Fees 120 Units $1,002 /Unit 120,000
Capitalized Reserves
Operating Reserves $184,705 /Mo 3 Months 554,000
SLP Fee 20 Years $5,000 /Year 100,000
Total Financing Costs 120 Units $53,200 /Unit $6,386,000
V.Total Development Costs 120 Units $597,300 /Unit $71,679,000
1
2
3
4
5
6
7
8
Based on Developer's estimates.
Based on City appraisal from June 2022.
Project will be required to pay both Federal and State prevailing wages.
Includes solar, swimming pool and parking space shade covers.
Maximum developer fee allowed by TCAC.
Assumes a 24-month development period and a 72% average outstanding balance.
All offsite improvements required will be constructed in Phase I.
Does not include SCE and TUMF fees, which will be waived or refunded.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 2; jlr; 3/26/2024
Page 548 of 855
APPENDIX B - TABLE 2A
AFFORDABILITY MIX
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
Number Applicable Utility Applicable
of Units TCAC Rent HCD Rent DB Rent Gross Rent Allowance Net Rent
30% TCAC, ELI HCD, VLI DB 12 30% AMI ELI HCD VLI HCD
1-Bdrm Units 2 $524 $567 $945 $524 $29 $495
2-Bdrm Units 7 $629 $638 $1,063 $629 $24 $605
3-Bdrm Units 3 $727 $709 $1,181 $709 $20 $689
30% TCAC, ELI HCD 24 30% AMI ELI HCD N/A
1-Bdrm Units 4 $524 $567 N/A $524 $29 $495
2-Bdrm Units 20 $629 $638 N/A $629 $24 $605
3-Bdrm Units 0 $727 $709 N/A $709 $20 $689
30% TCAC, 59% HCD 14 30% AMI 59% Low N/A
1-Bdrm Units 9 $524 $1,115 N/A $524 $29 $495
2-Bdrm Units 1 $629 $1,254 N/A $629 $24 $605
3-Bdrm Units 4 $727 $1,394 N/A $727 $20 $707
30% TCAC, Low HCD 10 30% AMI Low N/A
1-Bdrm Units 0 $524 $1,134 N/A $524 $29 $495
2-Bdrm Units 0 $629 $1,276 N/A $629 $24 $605
3-Bdrm Units 10 $727 $1,418 N/A $727 $20 $707
60% TCAC, 59% HCD 46 60% AMI 59% Low N/A
1-Bdrm Units 0 $1,049 $1,115 N/A $1,049 $29 $1,020
2-Bdrm Units 46 $1,258 $1,254 N/A $1,254 $24 $1,230
3-Bdrm Units 0 $1,454 $1,394 N/A $1,394 $20 $1,374
60% TCAC, Low HCD 13 60% AMI Low N/A
1-Bdrm Units 0 $1,049 $1,134 N/A $1,049 $29 $1,020
2-Bdrm Units 0 $1,258 $1,276 N/A $1,258 $24 $1,234
3-Bdrm Units 13 $1,454 $1,418 N/A $1,418 $20 $1,398
Manager Unit 1
1-Bdrm Units 0
2-Bdrm Units 1
3-Bdrm Units 0
PBV Overhang 60 FMR Tenant Rent Overhang
Utility
Allowance
Net
Overhang
1-Bdrm Units 15 $1,772 $495 $1,277 $29 $1,248
2-Bdrm Units 28 $2,211 $605 $1,606 $24 $1,582
3-Bdrm Units 3 $2,977 $689 $2,288 $20 $2,268
3-Bdrm Units 14 $2,977 $707 $2,270 $20 $2,250
Note: Rents are based on 2023 rents and the utility allowances are based on Developer CAUC estimates on 3/12/24 for all electric building.
TOTAL UNITS 120 AVERAGE AFFORDABILITY:45%
1-Bdrm Units 15 POTENTIAL GROSS INCOME - BASE:$1,332,715
2-Bdrm Units 75 POTENTIAL GROSS INCOME - PBV:$1,215,840
3-Bdrm Units 30
PBV SUBSIDY 60 LMIHAF City Regulatory Agreement:119
1-Bdrm Units 15 ELI HCD Units 36
2-Bdrm Units 28 VLI HCD Units 0
3-Bdrm Units 17 59% HCD Units 60
Low HCD Units 23
TCAC Regulatory Agreement:
30% AMI Units 60 Density Bonus City Regulatory Agreement
40% AMI Units 0 VLI HCD Units 12
50% AMI Units 0
60% AMI Units 59
70% AMI Units 0
Total Restricted Units 119
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; AFF - Ph 2; jlr; 3/26/2024
Page 549 of 855
APPENDIX B - TABLE 2B
STABILIZED NET OPERATING INCOME
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 1 120 Units $925 /Unit/Mo $1,332,715
Projected Gross Income - PBV Subsidy 1 60 PBVs $1,689 /Unit/Mo 1,215,840
Miscellaneous Income 2 120 Units $12 /Unit/Mo 17,850
Projected Gross Income $2,566,405
(Less) Vacancy & Collection Allowance 2 5%of PGI (128,320)
Effective Gross Income $2,438,085
II.Operating Expenses 2
General Operating Expenses 120 Units $8,087 /Unit $970,446
Property Taxes & Assessments 120 Units $58 /Unit 7,000
Social Services 120 Units $658 /Unit 78,972
County Monitoring Fee 120 Units $0 /Unit 0
City Monitoring Fee 120 Units $41 /Unit 4,920
Bond Issuer Fee Allowance 5,000
Replacement Reserves 120 Units $350 /Unit 42,000
Total Operating Expenses 120 Units $9,236 /Unit $1,108,338
III.Net Operating Income $1,329,747
1
2
See Table 2A.
Based on Developer estimates, which KMA determined to be reasonable based on experience.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 2; jlr; 3/26/2024
Page 550 of 855
APPENDIX B - TABLE 3
FINANCIAL GAP ANALYSIS
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Available Funding Sources
A.Permanent Loan 1.20 DCR $1,108,122 Debt Svc $14,032,000
7.50%Interest 40 Years
B.Federal Tax Credit Equity $35,018,207 Gross TC $0.86 Equity $30,112,000
C.State Tax Credit Equity $20,202,812 $0.82 Equity $16,524,000
D.County Loan 2 120 Units $0 /Unit $0
E.Contributed Developer Fee 3 0%of Developr Fee $0
F.Deferred Developer Fee 71%of Developr Fee $6,222,000
Total Available Funding Sources $66,890,000
II.Financial Gap Calculation
Total Development Costs $71,679,000
(Less) Available Funding Sources (66,890,000)
Financial Gap 120 Units $39,908 /Unit $4,789,000
III.Authority Funding Sources per Developer Request
HOME Funds $0
LMIHAF Funds 4,789,000
PLHA Funds 0
Total Authority Assistance 120 Units $39,908 /Unit $4,789,000
1
2
3
Previously awarded by County for entire Project; however, County has verified willingness to allow the entire amount
to be used in Phase I only.
Per TCAC draft guidelines, a portion of the deferred fee may be requried to be contributed to the Project.
Based on Developer estimates, which KMA determined to be reasonable based on experience.
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; PF - Ph 2; jlr; 3/26/2024
Page 551 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year $1,332,715 $1,366,033 $1,400,184 $1,435,189 $1,471,068 $1,507,845 $1,545,541 $1,584,180 $1,623,784 $1,664,379
Projected Gross Income - PBV Subsidy 102.5%/Year 1,215,840 1,246,236 1,277,392 1,309,327 1,342,060 1,375,611 1,410,002 1,445,252 1,481,383 1,518,418
Miscellaneous Income 102.5%/Year 17,850 18,296 18,754 19,222 19,703 20,196 20,701 21,218 21,748 22,292
Projected Gross Income $2,566,405 $2,630,565 $2,696,330 $2,763,738 $2,832,831 $2,903,652 $2,976,243 $3,050,649 $3,126,916 $3,205,089
(Less) Vacancy & Collection Allowance 5%of PGI (128,320)(131,528)(134,817)(138,187)(141,642)(145,183)(148,812)(152,533)(156,346)(160,255)
Effective Gross Income $2,438,085 $2,499,037 $2,561,513 $2,625,551 $2,691,189 $2,758,469 $2,827,431 $2,898,117 $2,970,570 $3,044,834
II.Operating Expenses
General Operating Expenses 103.5%/Year $970,446 1,004,412 1,039,566 1,075,951 1,113,609 1,152,585 1,192,926 1,234,678 1,277,892 1,322,618
Property Taxes & Assessments 102.0%/Year 7,000 7,140 7,283 7,428 7,577 7,729 7,883 8,041 8,202 8,366
Social Services 103.5%/Year 78,972 81,736 84,597 87,558 90,622 93,794 97,077 100,474 103,991 107,631
County Monitoring Fee 103.5%/Year 0 0 0 0 0 0 0 0 0 0
City Monitoring Fee 103.0%/Year 4,920 5,068 5,220 5,376 5,538 5,704 5,875 6,051 6,233 6,419
Bond Issuer Fee 103.5%/Year 5,000 5,175 5,356 5,544 5,738 5,938 6,146 6,361 6,584 6,814
Replacement Reserves 103.5%/Year 42,000 43,470 44,991 46,566 48,196 49,883 51,629 53,436 55,306 57,242
Total Operating Expenses $1,108,338 $1,147,000 $1,187,013 $1,228,423 $1,271,279 $1,315,633 $1,361,536 $1,409,042 $1,458,207 $1,509,090
III.Net Operating Income $1,329,747 $1,352,037 $1,374,500 $1,397,128 $1,419,910 $1,442,836 $1,465,895 $1,489,075 $1,512,362 $1,535,744
(Less) Annual Debt Service (1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(Less) AGP Asset Management Fee 2 103.0%/Year (5,000)(5,150)(5,305)(5,464)(5,628)(5,796)(5,970)(6,149)(6,334)(6,524)
(Less) MGP Asset Management Fee 2 103.0%/Year (10,000)(10,300)(10,609)(10,927)(11,255)(11,593)(11,941)(12,299)(12,668)(13,048)
IV.Cash Flow Available for Distribution $206,624 $228,464 $250,464 $272,615 $294,905 $317,325 $339,862 $362,505 $385,238 $408,050
V.Deferred Developer Fee Payment 3 $6,222,000 $206,624 $228,464 $250,464 $272,615 $294,905 $317,325 $339,862 $362,505 $385,238 $408,050
Accrued Payment 206,624 435,089 685,553 958,168 1,253,073 1,570,398 1,910,260 2,272,764 2,658,003 3,066,052
VI.Residual Receipts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
VII.Authority Loan
Beginning Balance $4,789,000 $4,932,670 $5,076,340 $5,220,010 $5,363,680 $5,507,350 $5,651,020 $5,794,690 $5,938,360 $6,082,030
Beginning Balance (Interest Calc)4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000
Add: Interest 3.00%143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670
(Less) Payments 4 50.00%0 0 0 0 0 0 0 0 0 0
Ending Balance 4,932,670 5,076,340 5,220,010 5,363,680 5,507,350 5,651,020 5,794,690 5,938,360 6,082,030 6,225,700
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 552 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
$1,705,988 $1,748,638 $1,792,354 $1,837,163 $1,883,092 $1,930,169 $1,978,423 $2,027,884 $2,078,581 $2,130,546
1,556,378 1,595,287 1,635,170 1,676,049 1,717,950 1,760,899 1,804,921 1,850,044 1,896,295 1,943,703
22,850 23,421 24,006 24,606 25,222 25,852 26,498 27,161 27,840 28,536
$3,285,216 $3,367,346 $3,451,530 $3,537,818 $3,626,264 $3,716,920 $3,809,843 $3,905,089 $4,002,716 $4,102,784
(164,261)(168,368)(172,577)(176,891)(181,313)(185,846)(190,492)(195,255)(200,136)(205,140)
$3,120,955 $3,198,979 $3,278,953 $3,360,927 $3,444,950 $3,531,074 $3,619,351 $3,709,834 $3,802,580 $3,897,645
1,368,910 1,416,822 1,466,411 1,517,735 1,570,856 1,625,836 1,682,740 1,741,636 1,802,593 1,865,684
8,533 8,704 8,878 9,055 9,236 9,421 9,609 9,802 9,998 10,198
111,398 115,297 119,332 123,509 127,832 132,306 136,936 141,729 146,690 151,824
0 0 0 0 0 0 0 0 0 0
6,612 6,810 7,015 7,225 7,442 7,665 7,895 8,132 8,376 8,627
7,053 7,300 7,555 7,820 8,093 8,377 8,670 8,973 9,287 9,613
59,245 61,319 63,465 65,686 67,985 70,365 72,827 75,376 78,015 80,745
$1,561,751 $1,616,251 $1,672,655 $1,731,030 $1,791,444 $1,853,969 $1,918,678 $1,985,648 $2,054,958 $2,126,690
$1,559,204 $1,582,727 $1,606,298 $1,629,897 $1,653,506 $1,677,105 $1,700,673 $1,724,186 $1,747,622 $1,770,955
(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(6,720)(6,921)(7,129)(7,343)(7,563)(7,790)(8,024)(8,264)(8,512)(8,768)
(13,439)(13,842)(14,258)(14,685)(15,126)(15,580)(16,047)(16,528)(17,024)(17,535)
$430,923 $453,842 $476,789 $499,747 $522,695 $545,613 $568,480 $591,271 $613,963 $636,530
$430,923 $453,842 $476,789 $499,747 $522,695 $545,613 $226,340 $0 $0 $0
3,496,975 3,950,817 4,427,606 4,927,352 5,450,047 5,995,660 6,222,000 6,222,000 6,222,000 6,222,000
$0 $0 $0 $0 $0 $0 $342,140 $591,271 $613,963 $636,530
$6,225,700 $6,369,370 $6,513,040 $6,656,710 $6,800,380 $6,944,050 $7,087,720 $7,060,320 $6,908,355 $6,745,043
4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000
143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670
0 0 0 0 0 0 (171,070)(295,636)(306,982)(318,265)
6,369,370 6,513,040 6,656,710 6,800,380 6,944,050 7,087,720 7,060,320 6,908,355 6,745,043 6,570,448
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 553 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
$2,183,809 $2,238,404 $2,294,365 $2,351,724 $2,410,517 $2,470,780 $2,532,549 $2,595,863 $2,660,759 $2,727,278
1,992,295 2,042,103 2,093,155 2,145,484 2,199,121 2,254,099 2,310,452 2,368,213 2,427,419 2,488,104
29,249 29,981 30,730 31,498 32,286 33,093 33,920 34,768 35,637 36,528
$4,205,354 $4,310,488 $4,418,250 $4,528,706 $4,641,924 $4,757,972 $4,876,921 $4,998,844 $5,123,815 $5,251,911
(210,268)(215,525)(220,913)(226,436)(232,097)(237,899)(243,846)(249,943)(256,191)(262,596)
$3,995,086 $4,094,963 $4,197,337 $4,302,271 $4,409,827 $4,520,073 $4,633,075 $4,748,902 $4,867,624 $4,989,315
1,930,983 1,998,567 2,068,517 2,140,915 2,215,847 2,293,402 2,373,671 2,456,749 2,542,735 2,631,731
10,402 10,610 10,822 11,038 11,259 11,484 11,714 11,948 12,187 12,431
157,138 162,637 168,330 174,221 180,319 186,630 193,162 199,923 206,920 214,162
0 0 0 0 0 0 0 0 0 0
8,886 9,153 9,427 9,710 10,001 10,301 10,610 10,929 11,257 11,594
9,949 10,297 10,658 11,031 11,417 11,816 12,230 12,658 13,101 13,559
83,571 86,496 89,523 92,657 95,900 99,256 102,730 106,326 110,047 113,899
$2,200,928 $2,277,760 $2,357,277 $2,439,572 $2,524,743 $2,612,890 $2,704,117 $2,798,533 $2,896,247 $2,997,377
$1,794,158 $1,817,203 $1,840,060 $1,862,699 $1,885,084 $1,907,183 $1,928,958 $1,950,369 $1,971,377 $1,991,938
(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(9,031)(9,301)(9,581)(9,868)(10,164)(10,469)(10,783)(11,106)(11,440)(11,783)
(18,061)(18,603)(19,161)(19,736)(20,328)(20,938)(21,566)(22,213)(22,879)(23,566)
$658,944 $681,176 $703,196 $724,972 $746,470 $767,654 $788,486 $808,927 $828,936 $848,467
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$658,944 $681,176 $703,196 $724,972 $746,470 $767,654 $788,486 $808,927 $828,936 $848,467
$6,570,448 $6,384,646 $6,187,728 $5,979,800 $5,760,984 $5,531,419 $5,291,262 $5,040,688 $4,779,895 $4,508,824
4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,789,000 4,779,895 4,508,824
143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,670 143,397 135,265
(329,472)(340,588)(351,598)(362,486)(373,235)(383,827)(394,243)(404,464)(414,468)(424,233)
6,384,646 6,187,728 5,979,800 5,760,984 5,531,419 5,291,262 5,040,688 4,779,895 4,508,824 4,219,855
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 554 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 31 Year 32 Year 33 Year 34 Year 35 Year 36 Year 37 Year 38 Year 39 Year 40
$2,795,460 $2,865,347 $2,936,981 $3,010,405 $3,085,665 $3,162,807 $3,241,877 $3,322,924 $3,405,997 $3,491,147
2,550,307 2,614,064 2,679,416 2,746,401 2,815,061 2,885,438 2,957,574 3,031,513 3,107,301 3,184,983
37,442 38,378 39,337 40,320 41,329 42,362 43,421 44,506 45,619 46,759
$5,383,209 $5,517,789 $5,655,734 $5,797,127 $5,942,055 $6,090,606 $6,242,872 $6,398,943 $6,558,917 $6,722,890
(269,161)(275,890)(282,787)(289,857)(297,103)(304,531)(312,144)(319,948)(327,946)(336,145)
$5,114,048 $5,241,899 $5,372,946 $5,507,270 $5,644,952 $5,786,076 $5,930,728 $6,078,996 $6,230,971 $6,386,745
2,723,842 2,819,176 2,917,847 3,019,972 3,125,671 3,235,070 3,348,297 3,465,487 3,586,779 3,712,317
12,680 12,933 13,192 13,456 13,725 13,999 14,279 14,565 14,856 15,153
221,658 229,416 237,446 245,756 254,358 263,260 272,474 282,011 291,881 302,097
0 0 0 0 0 0 0 0 0 0
11,942 12,300 12,669 13,049 13,441 13,844 14,260 14,687 15,128 15,582
14,034 14,525 15,034 15,560 16,104 16,668 17,251 17,855 18,480 19,127
117,885 122,011 126,282 130,702 135,276 140,011 144,911 149,983 155,232 160,666
$3,102,041 $3,210,362 $3,322,470 $3,438,495 $3,558,575 $3,682,852 $3,811,473 $3,944,589 $4,082,357 $4,224,941
$2,012,007 $2,031,537 $2,050,477 $2,068,775 $2,086,377 $2,103,224 $2,119,255 $2,134,407 $2,148,613 $2,161,803
(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)(1,108,122)
(12,136)(12,500)(12,875)(13,262)(13,660)(14,069)(14,491)(14,926)(15,374)(15,835)
(24,273)(25,001)(25,751)(26,523)(27,319)(28,139)(28,983)(29,852)(30,748)(31,670)
$867,476 $885,913 $903,728 $920,868 $937,276 $952,893 $967,658 $981,506 $994,369 $1,006,176
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$867,476 $885,913 $903,728 $920,868 $937,276 $952,893 $967,658 $981,506 $994,369 $1,006,176
$4,219,855 $3,912,713 $3,587,138 $3,242,888 $2,879,740 $2,497,495 $2,095,973 $1,675,023 $1,234,521 $774,372
4,219,855 3,912,713 3,587,138 3,242,888 2,879,740 2,497,495 2,095,973 1,675,023 1,234,521 774,372
126,596 117,381 107,614 97,287 86,392 74,925 62,879 50,251 37,036 23,231
(433,738)(442,957)(451,864)(460,434)(468,638)(476,447)(483,829)(490,753)(497,185)(503,088)
3,912,713 3,587,138 3,242,888 2,879,740 2,497,495 2,095,973 1,675,023 1,234,521 774,372 294,515
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 555 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 41 Year 42 Year 43 Year 44 Year 45 Year 46 Year 47 Year 48 Year 49 Year 50
$3,578,426 $3,667,886 $3,759,584 $3,853,573 $3,949,912 $4,048,660 $4,149,877 $4,253,624 $4,359,964 $4,468,963
3,264,608 3,346,223 3,429,879 3,515,626 3,603,516 3,693,604 3,785,944 3,880,593 3,977,608 4,077,048
47,928 49,127 50,355 51,614 52,904 54,227 55,582 56,972 58,396 59,856
$6,890,962 $7,063,236 $7,239,817 $7,420,813 $7,606,333 $7,796,491 $7,991,403 $8,191,189 $8,395,968 $8,605,867
(344,549)(353,162)(361,991)(371,041)(380,317)(389,825)(399,571)(409,560)(419,799)(430,294)
$6,546,413 $6,710,074 $6,877,826 $7,049,771 $7,226,016 $7,406,666 $7,591,833 $7,781,628 $7,976,169 $8,175,573
3,842,248 3,976,726 4,115,912 4,259,969 4,409,068 4,563,385 4,723,104 4,888,412 5,059,507 5,236,589
15,456 15,765 16,081 16,402 16,730 17,065 17,406 17,754 18,109 18,472
312,671 323,614 334,941 346,664 358,797 371,355 384,352 397,804 411,728 426,138
0 0 0 0 0 0 0 0 0 0
16,049 16,531 17,027 17,537 18,064 18,605 19,164 19,739 20,331 20,941
19,796 20,489 21,206 21,949 22,717 23,512 24,335 25,186 26,068 26,980
166,289 172,109 178,133 184,367 190,820 197,499 204,412 211,566 218,971 226,635
$4,372,509 $4,525,235 $4,683,299 $4,846,888 $5,016,195 $5,191,421 $5,372,772 $5,560,462 $5,754,713 $5,955,755
$2,173,904 $2,184,839 $2,194,527 $2,202,883 $2,209,820 $2,215,245 $2,219,061 $2,221,167 $2,221,456 $2,219,819
(16,310)(16,799)(17,303)(17,823)(18,357)(18,908)(19,475)(20,059)(20,661)(21,281)
(32,620)(33,599)(34,607)(35,645)(36,715)(37,816)(38,950)(40,119)(41,323)(42,562)
$2,124,974 $2,134,440 $2,142,616 $2,149,415 $2,154,748 $2,158,521 $2,160,635 $2,160,988 $2,159,472 $2,155,975
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$2,124,974 $2,134,440 $2,142,616 $2,149,415 $2,154,748 $2,158,521 $2,160,635 $2,160,988 $2,159,472 $2,155,975
$294,515 $0 $0 $0 $0 $0 $0 $0 $0 $0
294,515 0 0 0 0 0 0 0 0 0
8,835 0 0 0 0 0 0 0 0 0
(303,350)0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 556 of 855
APPENDIX B - TABLE 4
CASH FLOW ANALYSIS 1
PALM VILLAS AT MILLENNIUM - PHASE II
PALM DESERT, CALIFORNIA
I.Project Income
Projected Gross Income - Base Rents 102.5%/Year
Projected Gross Income - PBV Subsidy 102.5%/Year
Miscellaneous Income 102.5%/Year
Projected Gross Income
(Less) Vacancy & Collection Allowance 5%of PGI
Effective Gross Income
II.Operating Expenses
General Operating Expenses 103.5%/Year
Property Taxes & Assessments 102.0%/Year
Social Services 103.5%/Year
County Monitoring Fee 103.5%/Year
City Monitoring Fee 103.0%/Year
Bond Issuer Fee 103.5%/Year
Replacement Reserves 103.5%/Year
Total Operating Expenses
III.Net Operating Income
(Less) Annual Debt Service
(Less) AGP Asset Management Fee 2 103.0%/Year
(Less) MGP Asset Management Fee 2 103.0%/Year
IV.Cash Flow Available for Distribution
V.Deferred Developer Fee Payment 3 $6,222,000
Accrued Payment
VI.Residual Receipts
VII.Authority Loan
Beginning Balance
Beginning Balance (Interest Calc)
Add: Interest 3.00%
(Less) Payments 4 50.00%
Ending Balance
1
2
3
4
Based on Table 2B and typical escalations for affordable housing
LP fee is provided for in development costs as a capitalized fee.
While deferred fee is not projected to be paid off within 15 years
per IRS requiremetns; this issue can be managed by contributing a
portion of the deferred fee if it is still an issue once the funding
sources are secured.
The County will receive 0.00% of the residual receives based on
the size of the County loan.
Year 51 Year 52 Year 53 Year 54 Year 55
$4,580,687 $4,695,205 $4,812,585 $4,932,899 $5,056,222
4,178,974 4,283,449 4,390,535 4,500,298 4,612,806
61,352 62,886 64,458 66,070 67,722
$8,821,014 $9,041,539 $9,267,578 $9,499,267 $9,736,749
(441,051)(452,078)(463,380)(474,964)(486,838)
$8,379,963 $8,589,462 $8,804,198 $9,024,303 $9,249,911
5,419,870 5,609,565 5,805,900 6,009,107 6,219,425
18,841 19,218 19,602 19,994 20,394
441,053 456,490 472,467 489,003 506,118
0 0 0 0 0
21,569 22,216 22,882 23,569 24,276
27,925 28,902 29,914 30,961 32,044
234,567 242,777 251,274 260,069 269,171
$6,163,824 $6,379,168 $6,602,039 $6,832,702 $7,071,429
$2,216,138 $2,210,294 $2,202,159 $2,191,601 $2,178,482
(21,920)(22,577)(23,254)(23,952)(24,671)
(43,839)(45,154)(46,509)(47,904)(49,341)
$2,150,380 $2,142,563 $2,132,396 $2,119,745 $2,104,470
$0 $0 $0 $0 $0
6,222,000 6,222,000 6,222,000 6,222,000 6,222,000
$2,150,380 $2,142,563 $2,132,396 $2,119,745 $2,104,470
$0 $0 $0 $0 $0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
0 0 0 0 0
Prepared by: Keyser Marston Associates, Inc.
Filename: Palm Villas Phases 1 and 2 - 03.26.24 - FINAL; CF - Ph 2; jlr; 3/26/2024 Page 557 of 855
Page 558 of 855
Page 1 of 5
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Deborah Glickman, Economic Development Coordinator
REQUEST: ADOPT THE PALM DESERT BROADBAND FEASIBILITY AND MASTER
PLAN STUDY AND APPROVE RELATED AMENDMENT
RECOMMENDATION:
1. Adopt the Palm Desert Broadband Feasibility and Master Plan Study.
2. Approve Amendment 10 to Contract No. C41690 with HR Green in the amount of $19,884
for management of Request for Proposals (RFP) and grant processes related to broadband.
3. Direct staff to pursue grant funding for implementation of the adopted Broadband Master
Plan.
4. Direct staff to release a Request for Proposals (RFP) to identify any partner agencies to
execute the adopted Broadband Master Plan Study and middle-mile network.
BACKGROUND/ANALYSIS:
Since 2019, the City Council has identified t he development of a Broadband Feasibility and
Master Plan Study (Study) as a City Council goal. In September 2022, the City contracted with
HR Green, a company specializing in Broadband and Fiber services to accomplish this goal .
The parameters of the HR Green Study were to accomplish the following:
Meet with community partners and existing service providers, conduct a community
survey, and consult with the Coachella Valley Association of Governments (CVAG) on
their regional efforts.
Review the City’s and other service providers current assets and facilities.
Develop a preliminary design concept with cost estimates.
Explore funding options for the implementation of a broadband network.
Conduct a Request for Expression of Interest (RFEI) to identify potential partnerships to
develop the network.
Develop recommendations for the City’s consideration for deployment of the network.
Based on these tasks, HR Green explored various broadband models and network options to
achieve the City’s vision for expanded broadband service to residents and business.
Broadband Models
As part of the Study, HR Green explored five (5) Broadband models, each with varying levels of
City control and participation. The table below identifies the various models:
Page 559 of 855
City of Palm Desert
Broadband Feasibility and Master Plan Study Adoption
Page 2 of 5
In the Study, and based on comments and feedback from the January 11, 2024, Study Session,
HR Green recommends that the City partner with a broadband company to build a middle-mile
network for City use and potentially lease it to internet service providers to bring broadband
service to the community. This “Hybrid-Ownership” strategy allows the City to outsource the
construction, maintenance, and day-to-day operations of the broadband program instead of
having to generate the service in-house. It also allows for a variety of financing options including
paying for the broadband all at once, over a period of time, or on terms agre ed to by the City
and a potential partner. The “Hybrid-Ownership” is beneficial for the following reasons:
Increases the availability of broadband service throughout the community including the
unserved and underserved areas.
Encourages competition, which could reduce service fees, as multiple providers could
lease the City’s infrastructure rather than a single source.
Improve cellular service, as carriers could lease dark fibers from the City to interconnect
their cell phone facilities allowing carriers the opportunity to install facilities in areas of the
community where they currently do not have or have poor coverage.
Partnerships can assist the City with federal and state funding opportunities, which will
assist in defraying the cost of building the network.
Adoption of the Study is necessary to identify potential partners. It is also important to point out
that if the City is unable to establish a partnership with one or more private sector partners to
own, design, construct, and manage the last m ile connections to residents and businesses, then
the City and its anchor institutions that are connected to the City-owned middle-mile network
would be the only beneficiaries of the improvements in broadband services created by the
Page 560 of 855
City of Palm Desert
Broadband Feasibility and Master Plan Study Adoption
Page 3 of 5
construction of the middle-mile fiber ring network. Also, without a private sector partner, the City
would most likely not be able to qualify for many of the current federal and state last -mile
broadband grant opportunities.
Based on the “hybrid-ownership” recommendation, an RFEI was released to identify potential
broadband partners for the build-out of the City’s Study and middle-mile network system. Only
one (1) firm responded.
Cost for Build-Out of a Hybrid-Ownership
Utilizing the “Hybrid-Ownership” model, HR Green put together cost estimates to build-out the
proposed middle-mile network. The middle-mile network consists of two rings, one that Cost
estimates anticipate conduit capable of carrying 288 -strands of fiber, which is an industry-
standard and at a cost of approximately $12.1M. These costs can be offset by federal and state
grants; however, the City’s competitiveness for these funds is unknown at this time. Costs may
be recouped through leases with carriers.
Category Description Cost Estimate Price per foot
Estimated 288ct Material Costs $697,429 $6.24
Estimated Backbone Installation Cost
(no splicing) $9,803,606 $87.75
Estimated Design Engineering and
PMO Labor Cost $298,298 $2.67
Estimated 288ct Total Backbone Segment
w/Splicing Cost $12,167,553 $108.91
Middle Mile Network
Through its research, HR Green determined that the most efficient broadband fiber network
design consists of two (2) middle-mile rings, one north from Highway 111 and one south from
Highway 111. This design was selected to ensure coverage of the full city with a focus on City
facilities such as fire stations, City Hall, and the library. Together, the rings will provide a
backbone from which last-mile fiber connections can be built to reach the city’s residents and
businesses.
Funding Opportunities
To fund the future construction and implementation of the middle -mile, the following sources
were identified in the Study:
Bond and Loan Funding
Broadband Equity Access and Deployment Program (BEAD)
Broadband Loan Loss Reserve Fund
California Advanced Services Fund
California Last-Mile Federal Funding Account
California Teleconnect Fund
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Options
Recently, staff met with Netly/Ubiquity, a private utility provider licensed by the State Public
Utilities Commission (PUC), which has built open-source fiber networks in San Diego County.
Netly/Ubiquity plans to build an open-source fiber network in the Coachella Valley over the next
several years and they would utilize the City’s Broadband Master Plan as guidance for th e build
out of their network. The benefits of the open -source network is that it allows for increased
competition between utility providers and choice for businesses and residence.
The Coachella Valley Association of Governments (CVAG) is also working wi th HR Green on a
regional Broadband Strategic Plan that aims to boost regional broadband access in underserved
areas through planning, design, and leveraging state infrastructure in Coachella Valley. It will
identify needs, options, and challenges, and engage CVAG’s member organizations and
stakeholders to develop a clear vision and action plan. The intent of the plan is to identify last -
mile projects that deliver 100 Mbps symmetrical speeds to benefit residents, institutions, and
businesses. CVAG’s goal is to complement the work of its member organizations, not to
duplicate it. CVAG is still early in the study process and anticipates its completion next year.
Next Steps
HR Green recommends that the City release a formal RFP to identify and select a partner(s) for
the potential build-out of the identified middle-mile network. Staff anticipates that the RFP can
be released within two (2) months of execution of the proposed changes in the HR Green
contract. The RFP will be open for thirty (30) days, after which staff will review responses and
interview potential candidates. If a partner is found , an agreement would be brought back to City
Council for approval.
HR Green also recommends starting the grant application process to absorb any potential City
costs for the project. The timing of grant application deadlines vary. If HR Green is contracted,
they will research, write, and oversee the submission of grant applications, and provide support
and monitoring of grant awards for six (6) months after.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
The total cost for HR Green to conduct the Broadband Study, inclusive of the RFEI, was
$130,000. Staff is requesting an additional amendment in the amount of $19,884.00 to the
contract for HR Green to develop and manage the RFP process and to write and submit grant
proposals. Funds are available in the available in the Economic Development Professional
Services Other Account No. 1104430-4309000.
Separately, implementation costs for the build-out of the middle-mile network are estimated to
be $12,167,553. Funds are not currently allocated for the project and may impact the General
Fund. Funding opportunities have been identified in the study.
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ATTACHMENTS:
1. Broadband Feasibility and Master Plan Study
2. Middle Mile Network Map
3. Change Order 2 for RPF and Grant Applications
4. Amendment No. 10
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FEBRUARY 2, 2024
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Table of Contents
Section 1: Executive Summary ............................................................................................... 5
The Palm Desert Broadband Study ............................................................................................. 5
Approach ..................................................................................................................................... 5
Key Findings ................................................................................................................................. 6
Visioning Session ......................................................................................................................... 6
Preliminary Design and Cost Estimate ........................................................................................ 8
Funding Alternatives ................................................................................................................. 11
Explore Partnerships ................................................................................................................. 11
Recommendations .................................................................................................................... 13
Section 2: Resident And Business Survey.............................................................................. 15
Background ................................................................................................................................ 15
Survey Questions and Responses.............................................................................................. 16
Key Findings ............................................................................................................................... 21
Section 3: Market Assessment ............................................................................................. 22
Background ................................................................................................................................ 22
Residential Internet Service Providers in Palm Desert ............................................................. 24
Business Internet Service Providers in Palm Desert ................................................................. 25
Review of Internet Service Providers in Palm Desert ............................................................... 26
Key Findings ............................................................................................................................... 30
References ................................................................................................................................. 32
Section 4: Stakeholder Engagement ..................................................................................... 33
Background ................................................................................................................................ 33
Key Findings ............................................................................................................................... 34
Section 5: Asset Inventory ................................................................................................... 41
Background ................................................................................................................................ 41
Existing Fiber Network .............................................................................................................. 41
Traffic Signal Communication Circuits ...................................................................................... 42
CVAG CV-Sync Network ............................................................................................................. 43
Section 6: Establish Community Broadband Vision ............................................................... 44
Background ................................................................................................................................ 44
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Vision Survey ............................................................................................................................. 44
Municipal Broadband Service Models ...................................................................................... 47
Key Vision Exercise Findings ...................................................................................................... 47
Visioning Session ....................................................................................................................... 48
Key Outcomes ........................................................................................................................... 48
Recommendations .................................................................................................................... 49
Planning Phase – Next Steps ..................................................................................................... 50
Section 7: Preliminary Design & Cost Estimate ..................................................................... 51
Background ................................................................................................................................ 51
Conceptual Design ..................................................................................................................... 51
Cost Estimates ........................................................................................................................... 52
Section 8: Funding Alternatives ........................................................................................... 54
Background ................................................................................................................................ 54
California Grant Programs ......................................................................................................... 54
Federal Grants and Loans .......................................................................................................... 57
Bond and Loan Financing .......................................................................................................... 62
Recommendations .................................................................................................................... 63
Appendices ................................................................................................................................ 64
Section 9: Explore Partnerships ............................................................................................ 68
Background ................................................................................................................................ 68
Request for Expressions of Interest .......................................................................................... 68
RFEI Responses .......................................................................................................................... 69
Key Findings ............................................................................................................................... 70
Recommendation ...................................................................................................................... 74
Section 10: Recommendations ............................................................................................. 75
Background ................................................................................................................................ 75
Recommendations .................................................................................................................... 75
Appendix A: Broadband Service Models ............................................................................... 77
Background ................................................................................................................................ 77
Five Models ............................................................................................................................... 77
Four Key Factors ........................................................................................................................ 78
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Decision Tree ............................................................................................................................. 79
Financial Considerations ........................................................................................................... 80
Four Key Challenges .................................................................................................................. 82
Appendix B: Smart Application Technology Plan .................................................................. 84
Background ................................................................................................................................ 84
Top 20 Smart Application Technologies .................................................................................... 90
Recommendations .................................................................................................................... 92
Appendix C: Request for Expressions of Interest .................................................................. 99
1. Introduction ..................................................................................................................... 101
2. Project Details .................................................................................................................. 102
3. Instructions to Respondents ............................................................................................ 103
4. Response Items ................................................................................................................ 103
5. Vendor Questionnaire...................................................................................................... 104
APPENDIX A – Proposed City Fiber Ring Network Map (Subject to Change) .......................... 107
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Section 1: Executive Summary
The Palm Desert Broadband Study
Broadband has evolved from a nice thing to have, to being an important ingredient for economic
development and a significant ingredient for many key components of quality of life, including
education, business attraction, telemedicine, tourism, working from home, seniors staying in their
homes, and young people staying in the community. No wonder a broadband master plan has been part
of Palm Desert’s strategic plan for many years.
The recent pandemic has drawn an even sharper focus on the impact that lack of internet access has on
communities. No longer is broadband a luxury for video-on-demand and streaming services. Instead, it is
a crucial part of how our residents work, gain access to medical treatment, and how our children learn,
as well as a determining factor for businesses considering relocation. Effective broadband solutions are
now critical to all phases of our life.
City leaders selected HR Green to complete a Broadband Feasibility and Master Plan Study designed to
gather stakeholder needs, document current infrastructure and provider options, and complete
modeling (costs, risks, funding, anticipated revenues) of the different options available to Palm Desert
(owning and operating, partnerships, leasing, etc.). This study was conducted over several months and
resulted in the delivery of this Study to the City in January 2024.
This Executive Summary provides a high-level overview of the key findings of the project, as well as the
recommendations that can serve as a roadmap for the City to resolve the issues identified. Further
details of the study are contained in this Report, the models, GIS tools, Standards and other deliverables
that were provided to City leaders.
While the study has identified several key issues from the community, there is a positive outcome that a
solution is feasible by creating a partnership with the private sector. This will entail the creation of both
a core fiber ring network by the City, last-mile connectivity by private providers, and enabling funding
from federal and/or state sources. The road to this solution is not easy or automatic, as funding must be
developed in a competitive environment, but there is a path forward. And dramatic service
improvements are within reach.
Approach
The following multi-phase approach was used to complete the development of this Study.
Phase I – Vision
Resident and Business Survey
Market Assessment
Stakeholder Engagement
Asset Inventory
Establish Community Broadband Vision
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Phase II - Planning
Preliminary Design and Cost Estimate
Financing - Evaluate Funding Alternatives
Smart Application Technology Plan
Explore Partnerships
Complete Broadband Feasibility and Master Plan Study
Key Findings
The following are some of the Key Findings from the Vision phase of the Study.
Major concerns with broadband services in Palm Desert seem to be availability, speed, cost,
security, reliability, expandability, resiliency, and redundancy.
Economic Development (retaining current businesses and attracting new businesses) seems to be a
driving force behind improved broadband services for home based, online, and traditional brick and
mortar businesses.
There does not seem to be enough competing broadband service providers in the City to meet the
needs of residents and the business community.
Unserved and underserved communities, as well as low- and fixed-income communities seem to
need improved broadband services and those services potentially need to be inexpensive or free.
The council, residents, and businesses feel strongly that the City needs to help facilitate better
broadband.
Some cellular providers have good coverage, while others have poor coverage.
Free public Wi-Fi is currently unavailable in downtown business areas or outdoor recreation spaces.
Residents seem to consider the internet to be an essential public infrastructure like electricity,
water, and transportation.
CVAG is open to partnering with the City to use some of the CVAG broadband fiber.
Caltrans in the future may design and build a fiber-based network along I-10, which could permit the
City to potentially place conduit and fiber in the same trench as the Caltrans conduit and fiber.
Visioning Session
The Visioning Session with the Palm Desert City Council took place on June 22, 2023. It occurred during a
study session with the Council.
The following was the agenda for the session.
• Broadband 101
• Project Background
• Project Progress Update
• Review Visioning Exercise
• Review Broadband Service Models
• Discussion & Next Steps
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As indicated in the agenda above, the session started with a basic overview of Broadband. That was
followed by a presentation and discussion of the materials included in the Vision phase of this Study
report. This discussion included the results of the Resident and Business Survey, Market Assessment,
Stakeholder Engagement, and Asset Inventory. The Vision Exercise Survey results were discussed, as well
as the Business Service Models diagram shown in Appendix A of this report.
During the session, Council members explored various ownership and operating models to better
understand the risks and potential rewards of the often challenging and sometimes conflicting values
inherent in community broadband. This exercise helped the Council develop recommendations for the
next steps of the Study related to improved community fiber and broadband services.
A broadband roadmap that stresses the importance of the creation of recommendations for this project
was used during the session. Recommendations must be grounded by a thorough understanding of the
intended goals of the project, an appreciation of the risks/rewards of various ownership and operational
models and buy in from governing bodies that the path forward represents the best use of scarce
community resources (time, energy, financial capital).
The discussion concluded with the following key outcomes, which drove the next phase of the Study.
Key Outcomes
The primary outcome from the Visioning Session was that the Council shared their thoughts about next
steps for the Study. The Council indicated that it was probably in the best interest of the City to explore
ways to improve upon the Full Private Broadband model that is currently in place in the City because it
did not seem to be fully meeting the needs of the community. As shown in Appendix A of this report,
the Full Private Broadband model is described in broadband service Model #5.
At the end of the Visioning Session, the Council decided that they wanted the next steps of the study to
focus on a recommended municipal broadband model based on the data that was gathered during the
Vision phase of the Study. In addition, they wanted the next steps to include a conceptual design and
costs estimate of the recommended model, and an exploration of potential funding sources to cover the
costs of any potential construction of a community network based on the recommended model.
Recommendations
Based on the data collected during the Vision phase of this Study, Model 3 – Hybrid Ownership was
recommended as the model that should be explored during the Planning phase of this Study. This model
is described in the chart in Appendix A of this report that shows the five different municipal broadband
models.
The general characteristics of Model 3 include a municipal owned, designed, and constructed middle-
mile fiber ring network. Typically, the municipality explores a partnership with one or more private
sector providers to construct, manage, operate, and maintain the municipal owned network, as well as
to provide services over the network, and potentially own, design, construct, and manage the last mile
connections to residents and businesses. When a municipality looks at potentially constructing a fiber
network, it usually tries to find funding opportunities to help cover constructions costs, such as grants,
and some of those opportunities require the City to have one or more private sector partners to qualify
for funding.
The implementation of the recommended model should provide solutions to some of the concerns
shared by residents, businesses, stakeholders, Council, etc. including:
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Increased Availability – The scenario described above should improve the availability of broadband
service throughout the community including the unserved and underserved areas.
Encouraging competition – The City-owned network could break down potential barriers to
competition by allowing providers not currently in the market to utilize the City’s fiber network as a
foundation for their networks through the leasing of dark fibers.
Reducing service fees – Fees tend to decrease with increased competition.
Improving speeds – Generally, the technology used to connect users to a fiber-based network
permits increased speed over traditional coax, copper, or wireless connectivity.
Improving cellular service – Carriers could lease dark fibers from the City to interconnect their cell
phone facilities, which means the carriers could install facilities in areas of the community where
they currently do not have coverage or poor coverage.
Supporting Economic Development – When businesses are looking to relocate, they often look at
the availability of broadband in the area they would like to relocate to, so the City-owned network
should help to attract new businesses and retain current businesses, including home based, online,
and traditional brick and mortar businesses.
It is important to point out that if the City is unable to establish a partnership with one or more private
sector partners to own, design, construct, and manage the last mile connections to residents and
businesses, then the City and its anchor institutions that are connected to the city-owned middle-mile
network would be the only beneficiaries of the improvements in broadband services created by the
construction of the middle-mile fiber ring network. Also, without a private sector partner, the City would
most likely not be able to qualify for many of the current federal and state last mile broadband grant
opportunities.
Preliminary Design and Cost Estimate
Based upon the key outcomes and recommendations from the Vision Session with Council, the next step
in the Study was to complete a fiber ring network high-level design (HLD) that can be used for costing
(and possible future detail design). Some of the steps in developing the HLD included:
Checking for any higher cost issues (special crossings, rural areas, etc.).
Potential use of existing City’s fiber and conduit assets (or other assets).
The HLD leveraged GIS-based tools that identify physical locations of all customer locations and other
termination points.
Upon completion of the preliminary design, a cost estimate was prepared for developing the next
generation fiber ring network.
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Conceptual Design
Drawing on field and desk surveys, and GIS maps, the following system level design and cost estimate
was prepared for developing a next generation network. In developing this approach, the focus was on
creating a robust, reliable, and cost-effective approach to meeting the City’s networking needs. To that
end, for example, the design includes excess dark fiber to enable the implementation of smart
technology solutions across the community. Information about potential smart technology solutions can
be found in the Smart Application Technology Plan located in Appendix B of this report.
Cost Estimates
A cost estimate and supporting documentation for network deployment and interconnection, inclusive
of anticipated construction labor, materials, engineering, permitting, quality control, and testing was
prepared. These estimates were provided in the form of a cost range, with the lower-end estimates
representing the most likely costs and the higher-end representing budgetary estimates with suitable
contingencies included.
The following table shows the estimated length of the proposed underground conduits for each of the
network segments that are part of the two network rings that make up the backbone of the network.
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Segment Description
New
Underground
Conduit
Feet
Hand Holes Splice Points
North Ring
Palm Desert Station - Palm Desert North Fire Station 13,502 11 5
Palm Desert North Fire Station - Palm Desert Fire Station 18,533 12 4
Palm Desert Fire Station - Westfield Shopping 3,360 2 1
Westfield Shopping - Palm Desert Library 5,019 4 2
Palm Desert Library - Palm Desert City Hall 1,547 2 1
Palm Desert City Hall - Veteran Services 15,646 9 4
Veteran Services - Palm Desert Station 17,502 11 3
South Ring
Westfield Shopping - Bighorn 17,610 10 3
Bighorn - Mesa View Fire Station 3,905 3 1
Mesa View Fire Station - Living Desert 4,407 3 1
Living Desert - Palm Desert City Hall 10,691 5 1
Palm Desert Overview 111,722 72 26
The following table shows the estimated backbone construction costs for each of the of the network
segments that are part of the two network rings based on installing a 288-fiber count sheath within
each conduit and using the estimated length of the proposed underground conduits shown in the
previous table.
Segment Description
Estimated
288ct
Material Costs
Estimated
Backbone
Installation Cost
(no splicing)
Estimated
Design
Engineering and
PMO Labor Cost
Estimated
288ct Total
Backbone
Segment
w/Splicing Cost
North Ring
Palm Desert Station - Palm Desert North Fire
Station $84,287 $1,184,801 $36,050 $1,491,091
Palm Desert North Fire Station - Palm Desert Fire
Station $115,693 $1,626,271 $49,483 $2,014,943
Palm Desert Fire Station - Westfield Shopping $20,975 $294,840 $8,971 $368,353
Westfield Shopping - Palm Desert Library $31,331 $440,417 $13,401 $555,840
Palm Desert Library - Palm Desert City Hall $9,657 $135,749 $4,130 $175,579
Palm Desert City Hall - Veteran Services $97,671 $1,372,937 $41,775 $1,707,972
Veteran Services - Palm Desert Station $109,257 $1,535,801 $46,730 $1,894,231
South Ring
Westfield Shopping - Bighorn $109,931 $1,545,278 $47,019 $1,905,714
Bighorn - Mesa View Fire Station $24,377 $342,664 $10,426 $426,302
Mesa View Fire Station - Living Desert $27,511 $386,714 $11,767 $479,679
Living Desert - Palm Desert City Hall $66,739 $938,135 $28,545 $1,147,849
Palm Desert Overview $697,429 $9,803,606 $298,298 $12,167,553
Price per foot $6.24 $87.75 $2.67 $108.91
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Funding Alternatives
The ability to leverage federal, state, and regional grants and programs can substantially facilitate the
cost of a network buildout. In recognizing the need for broadband support, federal and state
governments provide funding in areas recognized as unserved or underserved based on public data on
broadband availability and speeds in different regions across the country. Historically, this data has
been criticized as poorly prepared, marginally reliable, and overly generalized. As a result, a community
like the City of Palm Desert may be considered as adequately covered and served by broadband
providers, whereas residents may actively experience a lack of sufficient or affordable service.
It is important to note that the FCC defines unserved areas as locations with less than 25 Mbps
download and 3 Mbps upload speeds, and underserved areas as locations with less than 100 Mbps
download and 20 Mbps upload speeds.
Fortunately, the City is on the cusp of a generational investment in broadband infrastructure. The
federal government and state legislatures across the country have recognized the need for broadband
funding support. Numerous federal and state programs are currently either being rolled out or are in
various stages of legislative consideration.
Recommendations
When applications are open, it is recommended that the City of Palm Desert should consider applying
for the California Last Mile Federal Funding Account (FFA). This last-mile grant would increase the
probability of the City facilitating infrastructure deployment to meet the connectivity needs of un and
underserved residents and businesses.
In addition, when applications are open, it is recommended that the City should consider future CASF
Infrastructure Account applications through the local Broadband Consortium representative.
Lastly, the City should facilitate an information campaign to advertise eligibility in the Affordable
Connectivity Program to qualify for low or no-cost broadband subscription plans and discounts on
computing devices for low-income residents. The program is currently undersubscribed, generally due
to a lack of awareness, but many of the City’s residents could be eligible.
Explore Partnerships
Broadband service Model #3, the Hybrid Ownership model, which is the recommended model for the
City, may need to leverage funding for both fiber ring network and last-mile construction available
through federal, state, or other funding sources. This means that the City needed to identify one or
more potential for-profit partners who are interested in leasing the core middle-mile municipal network
assets, and in building and managing last-mile connectivity. Identifying interested partners, therefore,
was an important step to help the City envision a path forward, and may be required by some funding
sources.
The approach used to engage with potential partners included building a list of potential partners and
other interested parties, developing a request for expressions of interest (RFEI), publishing the RFEI on
the City’s bid system, sending the RFEI to the list of potential partners, processing responses to the RFEI,
and selecting potential partners based on the level of interest. This approach created a faster-moving
cycle in which partners could be identified and brought to the table more quickly and with a higher
likelihood of successful progress.
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The RFEI that was developed and posted on the City’s bid system for selecting potential partners based
on the level of interest can be found in Appendix C of this report.
On November 8, 2023, the RFEI was posted on the City’s bid system, and then the link to the RFEI was
sent to the list of potential partners via email. Potential responders had until November 15, 2023, to
submit questions about the RFEI, and their responses were due on December 1, 2023.
Prior to the RFEI closing at 5:00 pm on December 1, 2023, the City received one response to the RFEI.
The respondent is Arcadis. Information about Arcadis can be found in the RFEI Responses subsection of
Section 9 of this report.
Key Findings
After reviewing the respondent’s proposal and responses to the RFEI questions, the decision was made
to conduct a 30-minute interview with the respondent. The following are some of the key findings from
the respondent’s interview.
• Public-private-partnership (P3) business plan
• Ultimately a city-owned network – including the middle-mile municipal ring and the last-mile
connections to every premise
• Network will be a long-term asset for the city
• Propose to use a design-build-finance-operate-maintain model
• Full turnkey implementation, including operating it over time
• Operate on an open access basis
• Over time multiple service providers would operate on the network – they would be selling services
to end user customers (residents and businesses)
• Charge a wholesale price to the service providers for access to the network – they would then sell
services to the end users
• Recoup their capital investment out of the wholesale pricing on the network for a preset period
time – up for negotiation
• Presuming that the municipal ring will most likely be publicly funded
• Not necessarily reliant on state or federal grants
• Respondent’s public sector grant identification/application/funding/administration team will be
involved
• Know the California environment regarding the availability of grants
• Explore ongoing payments that could be known as an anchor tenant payment, if the city has its own
uses of the network, such as interconnecting its facilities and/or smart city types of services
• Contribution over time – common way to finance – finance the entire project upfront then receive
city payments over time
• Model often does require some contribution from the public sector
Recommendation
Since it seems that the City has received interest from at least one viable partner, it is recommended
that the City complete a formal Request for Proposal (RFP) to identify Partner(s).
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Recommendations
The key outcomes from discussions with Council and staff, as well as the findings shared throughout this
Study contributed to the following recommendations. The recommendations are the next steps for the
City to consider. While the recommendations are listed in sequential order this does not necessarily
mean they need to be implemented in this order.
To fully realize the benefits of improved broadband service, some recommendations should be executed
concurrently, primarily due to the need for federal and/or state funding as a mechanism to drive project
deployment and the complicated nature of the potential Public Private Partnership.
Recommendation #1: Complete Formal Request for Proposal (RFP) to Identify Partner(S)
The RFEI process conducted as part of this study was useful to determine interested parties but does not
provide the City with enough details to fully determine a proposed partner nor the form of the
partnership. It is recommended that the City of Palm Desert conduct a formal RFP to identify and select
its partner(s) for the potential buildout.
Recommendation #2: Pursue Grant Funding
When applications are being accepted, the City of Palm Desert should apply for the California Last Mile
Federal Funding Account (FFA). This last-mile grant would increase the probability of the City facilitating
infrastructure deployment to meet the connectivity needs of un and underserved residents and
businesses.
In addition, when applications are being accepted, the City should consider future CASF Infrastructure
Account applications through the local Broadband Consortium representative to plan for future grant
award rounds.
Formal grant applications should be submitted as soon as practical to cover final engineering design of
the proposed city-owned network, as well as to fund the network construction.
It is also recommended that the selection of a private partner be timed to allow for coordination of
grant requests to assist with paying for last-mile connectivity. Ideally, a coordinated approach would
assure both the private sector and the City of availability of state funds to complete both the city-owned
fiber middle-mile ring network and the last-mile connections due to the interdependence of funding
sources for completion of the project.
Recommendation #3: Finalize Detail Designs
The first step to finalizing the design is to perform a field survey that will need to follow established
standards and design requirements. The intent of the field survey is to optimize the network and reduce
the overall cost. Field engineering must ensure that all possible routing alternatives are documented.
The final fiber network design can only be optimized by analyzing all possible connectivity routes, the
location of all service points and existing infrastructure.
As a contiguous area is surveyed and posted, the actual fiber network is designed. Once Fielding is
completed, the design of the planned network Low-Level Design(s) (LLD) necessary to create associated
construction and permitting plan sets will need to be completed.
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If the City decides to bring in a contractor to oversee the construction of the network, then the next step
is to create an RFP to select and manage the contractor. The RFP will need to include a comprehensive
construction specification manual, a complete design document, and a comprehensive bill of material.
Recommendation #4: Construct Network
Once a partner is identified and funding is secured, the next step will be to begin the deployment of
infrastructure to support broadband improvements. This step can be started as soon as engineering is
completed through the selection of a contractor with fiber optic deployment experience. The City
should work closely with its selected private sector partners to ensure that the network constructed
meets its required last-mile architecture.
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Section 2: Resident And Business Survey
Background
Palm Desert needed feedback and input from its citizens and businesses regarding the current state of
broadband service. This information is crucial for helping the City identify areas of the greatest need,
partner Internet Service Providers (ISPs) to work with for a given area, and funding opportunities to
support any future initiatives. The City welcomed citizen and business participation as it looked at how
the presence or lack of broadband (internet) services impact the community, and how facilitating
broadband access can meet the City's goal of improving broadband services throughout the community.
Surveys of residents and business owners were used to help decision makers better understand
community needs. In key economic areas, such as along El Paseo, the surveys incorporated questions
around incorporating public Wi-Fi, EV charging stations, smart streetlights/poles, and other
opportunities to make these business districts a point of destination and retain consumers in these
areas for a longer period of time.
Resident and business surveys helped to determine the community’s desire for broadband services;
current market conditions and deficiencies, predicted take rate and optimum monthly cost users would
be willing to pay for the service; stakeholder needs and what role the government should take in
providing broadband services. One survey was developed that included two paths, one path focused on
residential broadband services, and the other path focused on business broadband services. The survey
would go down the appropriate path based on whether the responder selected resident or business.
The survey included a detailed list of questions to capture the data needed. The survey requested
information about phone, television, and Internet services: which provider is used; at what costs; what
they like and dislike today or would wish in the future; and even a bit about what they do with Internet
services.
The residential survey also asked questions about the composition of their household, do they have
children; do they work at home, solely or occasionally and the age of the respondent. Survey questions
also included upload/download speed, general location of responding party, and their opinion on what
role municipal government should take in providing these services. Additionally, the survey asked if
business districts offered free public Wi-Fi, would that encourage you to stay and shop longer?
The survey was accessible via a link on the City’s website. The link to the survey was also shared with
residents and businesses via other sources including:
• Print version of the Palm Desert BrightSide
• Digital version of the Palm Desert BrightSide
• El Paseo Business Improvement District channels
• Palm Desert Area Chamber of Commerce (PDACC) eblasts
• PDACC business breakfast
• EngagePalmDesert.com
• Posts on the City’s Facebook page
• Posts on the City’s Twitter
• Desert Sands Unified School District student portal (in English and Spanish)
• Palm Desert affordable housing residents
• HOAs
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It is important to note that the surveys included a link to a speed test website. Once on the speed test
website, testing was conducted to determine actual upload/download speeds in a manner that could be
verified and documented. To obtain the best possible speed test results, the person completing the
survey was asked to complete it at their residence or business.
The survey took only a few minutes to complete. All responses were anonymous and confidential.
Participation was limited to one person per household or business. As this was a survey to assess wired
internet service, participants were encouraged to use a device that could be connected to a wired
internet connection (through Wi-Fi or Ethernet) to take the survey.
Both surveys were available from February to April 2023, and then again from July to August 2023.
During this five-month time frame, the City received a total of 230 responses, with 209 responses to the
Resident Survey and 20 responses to the Business Survey. The is a small sample size; therefore, it is
difficult to apply to the overall population of Palm Desert. Three-hundred-and-eighty-three (383) survey
responses would have been needed to achieve a base statistical significance level. Due to the low
number of responses to the business survey, the rest of this section focuses on the responses to the
resident survey.
Survey data was collected via GIS-enabled tools to enable a deep understanding of conditions
neighborhood by neighborhood.
Survey Questions and Responses
How do you use internet service at home?
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Please rate your level of satisfaction with the Reliability of your home internet service:
Please rate your level of satisfaction with the Speed/Data Rate of your home internet service:
Number of Responses
Number of Responses
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Please rate your level of satisfaction with the Price of your home internet service:
How often do you experience outages due to connection problems or slow/inoperable speeds?
Number of Responses
Number of Responses
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Do you consider the internet to be an essential public infrastructure like electricity, water, and
transportation?
How well do you think the current providers in Palm Desert meet the needs of the community?
Number of Responses
Number of Responses
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Would you participate in an organized effort led by your subdivision / neighborhood / HOA to
improve broadband service?
How strongly do you feel that the City needs to help facilitate better broadband?
Number of Responses
Number of Responses
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Do you have any other comments, questions, or concerns about your current home internet service?
Responses
Pleased with internet service.
Internet has been fine since fiber optic service has been delivered at home.
Competition is needed.
Price per month is ridiculously high for the service.
Cannot work from home because internet is too slow.
Speed is ok but less contention and lower latency would be better.
TV and streaming freeze a few times per night.
Waiting for fiber optics to come to the neighborhood.
Internet is unstable, unreliable, and underperforming.
Cell service is awful and has been for years.
Key Findings
Most responders are somewhat satisfied to very satisfied with the reliability of broadband services
within the City.
Most responders are somewhat satisfied to very satisfied with the speed and data rate of
broadband services within the City.
Most responders are somewhat dissatisfied to very dissatisfied with the price of broadband service
within the City.
One of the concerns shared by responders is the perceived lack of competition.
Most responders consider the internet to be an essential public infrastructure like electricity, water,
and transportation.
Most responders said that they would participate in an organized effort led by their subdivision /
neighborhood / HOA to improve broadband service within the City.
Most responders feel strongly that the City needs to help facilitate better broadband.
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Section 3: Market Assessment
Background
Broadband coverage has changed from something nice to have, to something that is becoming incredibly
important. Education, working from home, Economic Development, keeping youth in the area,
telemedicine, etc. all need good connectivity. Competitive analysis of the availability of coverage is
challenging due to the fluidity of market pricing, products offered, and differences in the various sectors
that need to be understood. This Market Assessment is an analysis of industry data that shows what
providers report their coverage to be.
To begin this analysis, service offerings of each primary provider in Palm Desert were examined and
cataloged. The second step of the analysis was to verify this data. The data gathered via the Resident and
Business Survey was used to shed light on the actual practice of providers and, more importantly, on
pricing and satisfaction, as well as determining what needs are in demand and are not supplied by the
marketplace. In addition, the providers were contacted to give them an opportunity to review and verify
the data.
The residents and businesses in the City of Palm Desert can obtain internet access services from a variety
of ISPs (internet service providers) and WISPs (wireless internet service providers) via DSL (over copper),
cable, fiber, fixed wireless, and satellite. This assessment focused on 16 internet service options from a
total of 6 providers that offer services to 5% or more of the residents and businesses within the city limits.
• 3 wired Internet Service Providers (DSL/Cable/Fiber): Spectrum, Frontier, EarthLink
• 1 fixed wireless Internet Service Providers: Pacific Lightwave
• 2 satellite Internet Service Providers: HughesNet and ViaSat
This section describes consumer internet offerings available to residents and businesses from the
established ISPs and WISPs. Its goal is to draw a representative picture of the internet market in Palm
Desert and include one or more providers that serve their customers via DSL, cable, fiber, fixed-wireless,
and satellite.
The following statistics describe internet availability by transport medium (DSL, cable, etc.) in Palm Desert
with some of the data drawn from the following dedicated websites.
• All Connect ( https://www.allconnect.com/local/ca/palm-desert/zip-92260 )
• Broadband Now ( https://broadbandnow.com/California/Palm-Desert?zip=92260 )
• Broadband Search ( https://www.broadbandsearch.net/service/california/palm-desert )
• Business Internet ( https://businessinternet.com/california/palm-desert )
• High Speed Internet ( https://www.highspeedinternet.com/ca/palm-desert?zip=92260 )
• In My Area ( https://www.inmyarea.com/internet/92260/providers )
Additional data was drawn from the websites of each Internet Service Provider (ISP). A complete listing of
the websites is shown at the end of this assessment.
Update Regarding Current DSL Technologies
Digital subscriber line (DSL) is a family of technologies that are used to transmit digital data over copper
telephone lines. In telecommunications marketing, the term DSL is widely understood to mean
asymmetric digital subscriber line (ADSL), the most installed DSL technology, for Internet access.
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In ADSL, bit rates are said to be asymmetric, meaning greater toward the customer premises
(downstream) than the reverse (upstream). The bit rate of consumer ADSL services typically ranges from
256 Kbps up to 25 Mbps in the downstream direction to the customer, depending on DSL technology, line
conditions, and service-level implementation. The data throughput in the upstream direction (the
direction to the service provider) is lower, hence the designation of asymmetric service.
As documented in this assessment, some internet service providers are offering DSL services with claims
of downstream speeds up to 100 Mbps. Some service providers have deployed upgraded DSL technology
known as very high-speed digital subscriber line (VDSL) and/or very high-speed digital subscriber line 2
(VDSL2). These more recent DSL technologies provide data transmission faster than ADSL.
For example, VDSL offers speeds of up to 52 Mbps downstream and 16 Mbps upstream. These rates mean
that VDSL can support applications such as high-definition television, as well as telephone services and
general Internet access, over a single connection. Second-generation VDSL technologies (VDSL2) provide
data rates exceeding 100 Mbps simultaneously in both the upstream and downstream directions. Like
ADSL, VDSL and VDSL2 are deployed over copper telephone lines.
Actual download speeds have not been independently validated, but the City will have an opportunity to
better understand actual download speeds for customers on this technology when speed tests are
reported as part of the Resident and Business survey.
Update Regarding Current Fixed Wireless Technologies
Fixed wireless networks provide point-to-point access to single or multiple locations. Some Internet
service providers included in this assessment offer fixed wireless services. These ISPs are using microwave-
based technology that allows data to be sent and received between two fixed sites or locations. Unlike
satellite, these signals have much lower latency and are generally not as affected by inclement weather.
Fixed wireless is not mobile technology, like cellular technology. Nor is it Wi-Fi where bandwidth is shared
on a “one to many” basis.
There are some advantages for fixed wireless as compared to wired services such as installation that is
free from trenching and construction, scalable bandwidth, path and network diversity, and straight
forward Ethernet hand-offs. Fixed wireless also has some limitations such as the service often requires
line-of-sight access between two fixed sites and the cost per unit of bandwidth tends to be higher than
other forms of broadband.
Fixed wireless relies on microwave signals that are used to connect customers via a dedicated wireless
Internet connection to a point of presence (PoP). The fixed wireless ISPs included in this assessment claim
that they provide bandwidth speeds that range from 1.5 Mbps to 1 Gbps utilizing current microwave
technologies that provide low latency dedicated wireless point-to-point broadband connectivity.
Actual fixed wireless bandwidth speeds have not been independently validated. However, the City will
have an opportunity to better understand actual bandwidth speeds for customers using this technology
when speed tests are reported as part of the community survey.
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Residential Internet Service Providers in Palm Desert
This assessment focused on 8 residential internet options in Palm Desert from 5 residential internet
providers. The assessment of these residential services shows that:
• 100% of homes can get fixed-line service via cable, DSL, or fiber-optic
• 100% of homes can get cable
• 100% of homes can get satellite internet services
• 98% of homes can get DSL
• 12% of homes can get fiber-optic
The following tables list the residential Internet service providers (ISPs) in Palm Desert broken out by the
type of service provided.
Cable
Provider Name Coverage Max Download Speed Provider Type
Charter (Spectrum) 100% 1,000 Mbps Cable
DSL
Provider Name Coverage Max Download Speed Provider Type
EarthLink 28.5% 100 Mbps DSL
Frontier Communications 98% 100 Mbps DSL
Fiber
Provider Name Coverage Max Download Speed Provider Type
Charter (Spectrum) 12% 1,000 Mbps Fiber
EarthLink 10% 1,000 Mbps Fiber
Frontier Communications 12% 5,000 Mbps Fiber
Satellite
Provider Name Coverage Max Download Speed Provider Type
HughesNet 100% 25 Mbps (100 GB cap) Satellite
ViaSat 100% 100 Mbps (500 GB cap) Satellite
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Business Internet Service Providers in Palm Desert
This assessment focused on 7 business internet options in Palm Desert from 4 business internet providers.
The assessment of these business services shows that:
• 100% of businesses can get fixed-line service via cable, DSL, or fiber-optic
• 100% of businesses can get cable
• 100% of businesses can get fixed wireless service
• 98% of businesses can get DSL
• 18% of businesses can get fiber-optic
The following tables list the business Internet service providers (ISPs) in Palm Desert broken out by the
type of service provided.
Cable
Provider Name Coverage Max Download Speed Provider Type
Charter (Spectrum) 100% 1,000 Mbps Cable
DSL
Provider Name Coverage Max Download Speed Provider Type
EarthLink 41% 100 Mbps DSL
Frontier Communications 98% 100 Mbps DSL
Fiber
Provider Name Coverage Max Download Speed Provider Type
Charter (Spectrum) 18% 100 Gbps Fiber
EarthLink 18% 1,000 Mbps Fiber
Frontier Communications 16% 2,000 Mbps Fiber
Fixed Wireless
Provider Name Coverage Max Download Speed Provider Type
Pacific Lightwave 15% 1,000 Mbps Fixed Wireless
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Review of Internet Service Providers in Palm Desert
Charter (Spectrum)
• Spectrum provides cable-based internet services to 100% of the residents and businesses in Palm
Desert.
• Spectrum provides fiber-based internet services to 18% of the businesses in Palm Desert.
• Spectrum offers Palm Desert residents download speeds up to 1,000 Mbps, and upload speeds up to
35 Mbps.
• Spectrum offers Palm Desert businesses download speeds up to 100 Gbps, and upload speeds up to
100 Gbps.
The table below shows the cost of Spectrum’s plans in Palm Desert as of March 2023.
Provider Type of Service Business /
Residential
Download
Speeds
(Mbps)
Upload Speeds
(Mbps) Cost/Month
Spectrum Cable Residential 300 10 $50
Spectrum Cable Residential 500 20 $70
Spectrum Cable Residential 1,000 35 $90
Spectrum Cable/Fiber Business 10 10 (Varies)*
Spectrum Cable/Fiber Business 20 20 (Varies)*
Spectrum Cable/Fiber Business 50 50 (Varies)*
Spectrum Cable/Fiber Business 100 100 (Varies)*
Spectrum Cable/Fiber Business 200 200 (Varies)*
Spectrum Cable/Fiber Business 500 500 (Varies)*
Spectrum Cable/Fiber Business 1,000 1,000 (Varies)*
Spectrum Fiber Business 2,000 2,000 (Varies)*
Spectrum Fiber Business 5,000 5,000 (Varies)*
Spectrum Fiber Business 10,000 10,000 (Varies)*
Spectrum Fiber Business 20,000 20,000 (Varies)*
Spectrum Fiber Business 30,000 30,000 (Varies)*
Spectrum Fiber Business 40,000 40,000 (Varies)*
Spectrum Fiber Business 50,000 50,000 (Varies)*
Spectrum Fiber Business 60,000 60,000 (Varies)*
Spectrum Fiber Business 70,000 70,000 (Varies)*
Spectrum Fiber Business 80,000 80,000 (Varies)*
Spectrum Fiber Business 90,000 90,000 (Varies)*
Spectrum Fiber Business 100,000 100,000 (Varies)*
* Monthly costs for business broadband services depend upon the cost of building out the broadband connection to the business location and
the term of the agreement.
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Charter Communications Inc., with its corporate headquarters located in Stamford, Connecticut, is an
American telecommunications and mass media company that offers its services to residents and
businesses under the branding of Spectrum. Providing services to over 102.7 million people in 44 states,
it is the second-largest cable operator in the United States, just behind Comcast.
EarthLink
• EarthLink offers the residents in Palm Desert DSL and fiber-based internet services.
• EarthLink offers the businesses in Palm Desert fiber-based internet services.
• EarthLink provides 2 DSL internet plans and 4 fiber internet residential plans in Palm Desert.
• EarthLink provides 4 fiber internet business plans in Palm Desert.
• EarthLink DSL service in Palm Desert is available to an estimated 28.5% of residents.
• EarthLink fiber service in Palm Desert is available to an estimated 10% of residents.
• EarthLink fiber service in Palm Desert is available to an estimated 18% of businesses.
• EarthLink offers Palm Desert residents and businesses download speeds up to 1,000 Mbps.
• EarthLink does not use data limits in Palm Desert.
The table below shows the cost of EarthLink’s plans in Palm Desert as of March 2023.
Provider Type of Service Business /
Residential
Download
Speeds
(Mbps)
Upload Speeds
(Mbps) Cost/Month
EarthLink DSL Residential 50 7.5 $50
EarthLink DSL Residential 100 15 $80
EarthLink Fiber Residential 50 50 $50
EarthLink Fiber Residential 100 100 $80
EarthLink Fiber Residential 200 200 $90
EarthLink Fiber Residential 1000 1000 $100
EarthLink Fiber Business 50 50 $70
EarthLink Fiber Business 100 100 $85
EarthLink Fiber Business 200 200 $105
EarthLink Fiber Business 1,000 1,000 $170
EarthLink primarily provides DSL and fiber to households and businesses across 26 states. With
accessibility to 99.2 million people, EarthLink is the second-largest residential DSL provider in the
country. Over 33.4 million people have access to EarthLink fiber internet service, making them the third-
largest fiber provider in the country.
Frontier Communications
• Frontier DSL services in Palm Desert are available to an estimated 98% of residents and businesses.
• Frontier resident and business subscribers in Palm Desert have access to 1 DSL internet plans.
• Frontier fiber services in Palm Desert are available to an estimated 10% of residents and businesses.
• Frontier provides 4 fiber plans to Palm Desert area residents and businesses.
• Frontier does not use data limits in Palm Desert.
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The table below shows the cost of Frontier Communications’ residential and business plans in Palm
Desert as of March 2023.
Provider Type of Service Business /
Residential
Download
Speeds
(Mbps)
Upload Speeds
(Mbps) Cost/Month
Frontier DSL Both 100 15 $50
Frontier
Fiber 500 Fiber Both 500 500 $50
Frontier
Fiber 1 Gig Fiber Both 1,000 1,000 $70
Frontier
Fiber 2 Gig Fiber Both 2,000 2,000 $100
Frontier
Fiber 5 Gig Fiber Both 5,000 5,000 $155
Frontier currently offers DSL to over 30.5 million people in 25 states, making Frontier the fifth-largest
provider of DSL in the U.S. In terms of fiber internet, Frontier covers more than 9.5 million people in
seven states. Even with this portion of Frontier’s business being relatively new, Frontier still ranks fifth in
the nation for fiber access.
HughesNet
• HughesNet offers the residents in Palm Desert satellite-based Internet service.
• HughesNet in Palm Desert is available to 100% of residents.
• HughesNet offers Palm Desert residents download speeds up to 25 Mbps, and upload speeds up to 3
Mbps.
The table below shows the cost of HughesNet’s plans in Palm Desert as of March 2023. Their plans have
data caps in place.
Provider Type of Service Business /
Residential
Download
Speeds
(Mbps)
Upload Speeds
(Mbps) Cost/Month
HughesNet Satellite Residential 25 (15 GB cap) 3 $65
HughesNet Satellite Residential 30 (30 GB cap) 3 $75
Hughes Network Systems, LLC (formerly Hughes Communications) was founded in 1971. It is a wholly
owned subsidiary of EchoStar (DirecTV). Hughes Network Systems is headquartered in Germantown,
Maryland and provides a high-speed satellite internet service, HughesNet.
Pacific LightWave
• Pacific LightWave offers the businesses in Palm Desert fixed wireless-based Internet services.
• Pacific LightWave in Palm Desert is available to 15% of businesses.
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• Pacific LightWave offers Palm Desert businesses download speeds up to 50 Mbps, and upload
speeds up to 50 Mbps.
• Pacific LightWave’s actual download and uploads speeds as well as monthly costs could not be
determined online.
The table below shows the cost of Pacific LightWave’s plans in Palm Desert as of March 2023.
Provider Type of Service Business /
Residential
Download
Speeds
(Mbps)
Upload Speeds
(Mbps) Cost/Month
Pacific
LightWave Fixed Wireless Business 50 50 $60 to $80
Pacific LightWave Inc. is a community-based internet provider. They are a registered CLEC (competitive
local exchange carrier) with the California PUC and operate under FCC regulations providing internet
services within the Coachella Valley of Southern California. They presently offer business class high-
speed internet access, VoIP-based hosted PBX, collocation, and managed services. Pacific LightWave
presently operates multiple fiber optic and gigabit microwave rings encircling Palm Desert and Rancho
Mirage.
ViaSat
• ViaSat offers the residents in Palm Desert satellite-based Internet services.
• ViaSat service is available to 100% of Palm Desert residents.
• ViaSat offers Palm Desert residents download speeds up to 100 Mbps, and upload speeds up to 3
Mbps.
The table below shows the cost of ViaSat’s plans in Palm Desert as of March 2023. Their plans have data
caps.
Provider Type of Service Business /
Residential
Download Speeds
(Mbps)
Upload
Speeds
(Mbps)
Cost/Month
ViaSat Satellite Residential 25 (60 GB cap) 3 $50
ViaSat Satellite Residential 50 (100 GB cap) 3 $70
ViaSat Satellite Residential 75 (150 GB cap) 3 $100
ViaSat Satellite Residential 100 (300 GB cap) 3 $150
ViaSat Satellite Residential 100 (500 GB cap) 3 $200
ViaSat uses satellites to beam internet service to 308.5 million people in all 50 states, as well as the U.S.
territory of Puerto Rico. With all this coverage, ViaSat ranks as the second-largest satellite internet
provider in the U.S. in terms of availability.
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Key Findings
The residents and businesses in the City of Palm Desert can obtain internet access services from a variety
of ISPs (internet service providers) and WISPs (wireless internet service providers) via DSL (over copper),
cable, fiber, fixed wireless, and satellite. This assessment focused on 16 internet service options from a
total of 6 providers that offer services to 5% or more of the residents and businesses within the city limits.
• 3 wired Internet Service Providers (DSL/Cable/Fiber): Spectrum, Frontier, EarthLink
• 1 fixed wireless Internet Service Providers: Pacific Lightwave
• 2 satellite Internet Service Providers: HughesNet and ViaSat
Residential Internet Service Providers in Palm Desert
This assessment focused on 8 residential internet options in Palm Desert from 5 residential internet
providers. The assessment of these residential services shows that:
• 100% of homes can get fixed-line service via cable, DSL, or fiber-optic
• 100% of homes can get cable
• 100% of homes can get satellite internet services
• 99% of homes can get DSL
• 12% of homes can get fiber-optic
Business Internet Service Providers in Palm Desert
This assessment focused on 7 business internet options in Palm Desert from 4 business internet providers.
The assessment of these business services shows that:
• 100% of businesses can get fixed-line service via cable, DSL, or fiber-optic
• 100% of businesses can get cable
• 100% of businesses can get fixed wireless service
• 98% of businesses can get DSL
• 18% of businesses can get fiber-optic
Key Findings
Here are some key findings regarding internet service providers in Palm Desert.
• Five of the 6 internet providers in Palm Desert offer residential service.
• There are 8 residential internet options in Palm Desert from 5 residential internet providers.
• Four of the 6 internet providers in Palm Desert offer business service.
• There are 7 business internet options in Palm Desert from 4 business internet providers.
• The average residential download speed in Palm Desert is 194 Mbps. This is 130% faster than the
average internet download speed in California, which is 150 Mbps.
• The average residential upload speed in Palm Desert is 25 Mbps. This is 52% slower than the average
internet upload speed in California, which is 48 Mbps
• Palm Desert businesses have an average of 2.88 wired providers available at their location, which is
more competitive than 66% of cities in the state of California.
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• Approximately 98% of households will have internet options from more than one provider.
• Those living in Palm Desert have access to cable, which covers 100% of households. DSL internet is
also an option for many, offering service to 98% of the area. Fiber-optic is less available but still an
internet option for roughly 12% of those living in Palm Desert.
The following table is a listing of all the providers available in the City of Palm Desert sorted alphabetically
by the name of the service provider. It shows the percent of the City covered by the service provider, the
type of service provided, whether it is a business or residential service, maximum download speeds, and,
if available, the maximum estimated monthly cost for each service provider.
Provider Name Coverage Provider Type Business /
Residential
Maximum
Download
Speed
Maximum
Estimated
Cost/Month
Charter (Spectrum) 100% Cable Residential 1,000 Mbps $110
Charter (Spectrum) 12% Fiber Residential 1,000 Mbps UA
Charter (Spectrum) 100% Cable Business 1,000 Mbps (Varies)
Charter (Spectrum) 18% Fiber Business 100 Gbps (Varies)
EarthLink 10% Fiber Residential 1,000 Mbps $100
EarthLink 28.5% DSL Residential 100 Mbps $80
EarthLink 18% Fiber Business 1,000 Mbps $170
EarthLink 41% DSL Business 100 Mbps UA
Frontier
Communications 12% Fiber Residential 5,000 Mbps $155
Frontier
Communications 98% DSL Residential 100 Mbps $50
Frontier
Communications 16% Fiber Business 2,000 Mbps $160
Frontier
Communications 98% DSL Business 100 Mbps UA
HughesNet 100% Satellite Residential 30 Mbps
(30 GB cap) $75
Pacific Lightwave 15% Fixed Wireless Business 50 Mbps $60 to $80
ViaSat 100% Satellite Residential 100 Mbps
(500 GB cap) $200
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References
• All Connect ( https://www.allconnect.com/local/ca/palm-desert/zip-92260 )
• Broadband Now ( https://broadbandnow.com/California/Palm-Desert?zip=92260 )
• Broadband Search ( https://www.broadbandsearch.net/service/california/palm-desert )
• Business Internet ( https://businessinternet.com/california/palm-desert )
• High Speed Internet ( https://www.highspeedinternet.com/ca/palm-desert?zip=92260 )
• In My Area ( https://www.inmyarea.com/internet/92260/providers )
• Earthlink ( https://www.inmyarea.com/provider/earthlink )
• Charter – Spectrum – Residential ( https://www.inmyarea.com/provider/spectrum )
• Charter – Spectrum – Business ( https://www.spectrum.com/business/internet )
• Charter – Spectrum – Business Enterprise Services
( https://enterprise.spectrum.com/services/internet-networking/internet/fiber-internet-access.html
)
• Frontier ( https://www.inmyarea.com/provider/frontier )
• Pacific Lightwave ( https://www.paclw.com/?s1=1650474046.1458144123 )
• ViaSat ( https://www.inmyarea.com/provider/viasat )
• HughesNet ( https://www.inmyarea.com/provider/hughesnet )
• Charter – Spectrum – Residential ( https://www.allconnect.com/providers/spectrum )
• EarthLink ( https://www.earthlink.net/ )
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Section 4: Stakeholder Engagement
Background
From November 2022 to January 2023, stakeholder engagement meetings took place with City staff,
anchor institutions, regional entities, and community partners. The various goals of these meetings
included identifying existing broadband needs, evaluating current broadband services, exploring future
broadband expectations, and collaborating with regional entities.
The initial step in the process was to identify key stakeholders. Once completed, virtual one-on-one and
stakeholder group meetings took place with policy makers, anchor institutions, and key influencers to
drive visibility into community goals, and to identify how best to position and future-proof Palm Desert to
maximize economic development, including retaining current businesses and attracting new businesses.
These meetings also explored the impacts of the community’s current and potential future broadband
services on economic development.
Engagement meetings were held with the following stakeholders or stakeholder groups:
City Staff
• Assistant City Manager
• Chief Building Official
• Director of Finance
• Economic Development Director
• Information Systems Manager
• Public Affairs Manager
• Public Works Director, and both Deputy Public Works Directors
• Senior Project Manager
Anchor Institutions
• California State University, San Bernardino - Palm Desert Campus
• College of the Desert
• Desert Sands Unified School District
• Palm Springs Unified School District
• Riverside County Fire Department Palm Desert Station
• Riverside County Library System Palm Desert Branch
• Riverside County Sheriff’s Palm Desert Station
• University of California, Riverside Palm Desert Campus
Regional Entities
• Caltrans - District 8
• Coachella Valley Association of Governments (CVAG)
• Coachella Valley Economic Partnership (CVEP)
• Desert Recreation District
• Joslyn Center
• Sunline Transit Agency
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Community Partners
• El Paseo Business Improvement District
• Palm Desert Chamber of Commerce
Key Findings
Below is a summary of key findings that were shared during the stakeholder engagement process.
Some of the major concerns with broadband services in Palm Desert seem to be availability, speed,
cost, security, reliability, expandability, resiliency, and redundancy.
Economic Development (retaining current businesses and attracting new businesses) seems to be a
driving force behind improved broadband services for home based, online, and traditional brick and
mortar businesses.
More and more people are working from home, so reliable broadband services are important.
Cellular coverage, including LTE (4G) and 5G, in the City seems to be fairly decent in most parts of the
City, but seems to become spotty along Highway-111 and on the south end of the City.
Some cellular providers have good coverage, while others have poor coverage.
Free public Wi-Fi is currently unavailable in downtown business areas or outdoor recreation spaces.
Gated communities seem to have better broadband services.
New development areas require high-speed broadband services.
There does not seem to be enough competing broadband service providers in the City to meet the
needs of residents and the business community.
Unserved and underserved communities, as well as low- and fixed-income communities seem to need
improved broadband services and those services potentially need to be inexpensive or free.
City staff seems to be supportive of potentially providing broadband services that could have seamless
operability across the City but would like to know what municipal broadband models might look like.
City staff seems interested in exploring the establishment of a consortium to coordinate valley-wide
broadband initiatives.
City staff indicated that policies might need to be modified to make them more fiber friendly.
County provided public safety agencies within the city seem to be well served with fully redundant
broadband services provided by Riverside County.
County provided library is well served and utilizes the Corporation for Education Network Initiatives
in California (CENIC) statewide broadband network.
School districts seem to be well served and are also offering free district provided cellular based
broadband services to district students and families, with a focus on unserved and underserved areas.
Higher education institutions seem to be well served, are part of the CENIC network, offer workforce
training in the community, and are interested in improving broadband services for their students
when off-campus.
Local transit agency is well served, provides free public Wi-Fi in their fleet of hydrogen fuel cell
powered vehicles, and utilizes cellular based services to track their fleet.
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Coachella Valley Association of Governments (CVAG) is focused on improving broadband services for
the unserved and underserved areas of the valley.
CVAG is designing and building a fiber-based intelligent transportation system (ITS) network to
interconnect the 550+ traffic signals throughout the valley; and at the same time, CVAG is planning to
install additional conduit and fiber for broadband services in the same trench as the ITS network.
CVAG is open to partnering with the City to use some of the CVAG broadband fiber.
Caltrans in the future may design and build a fiber-based network along I-10, which could permit the
City to potentially place conduit and fiber in the same trench as the Caltrans conduit and fiber.
The table below includes a summary of key findings broken out by the stakeholder groups that were part
of the engagement process.
Stakeholder Group Key Findings
City of Palm Desert
Currently served by multiple broadband providers with no
redundancy.
Experiences intermittent outages.
Migrating from on-premises hosted applications to cloud-based
applications.
Enabling accessibility to City services anytime, anywhere, and on
any device.
Traffic signal system is on city-owned fiber, but the current
system does not include any redundant connectivity.
Riverside County Sheriff Palm
Desert Station
Connected to the County’s secure fiber-based network, which has
full hardware and routing redundancy.
Uses the County’s network for wireless communications and
telephone communications.
Moving everything to cloud-based applications.
Utilize potential City network for added redundancy.
Riverside County
Fire Department
Palm Desert Station
Current broadband services meet the department’s needs today.
Current cellular services within the city are sufficient.
Need additional fiber broadband services to accommodate future
growth, and to enhance cellular coverage for mobile units.
Experiences minimal broadband service outages.
Potentially use city installed broadband infrastructure to provide
additional redundancy and resiliency to public safety networks.
Committed to working with contracting agencies wherever
possible to enhance services available to public safety agencies.
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Stakeholder Group Key Findings
Riverside County
Library System
Palm Desert Branch
Currently using the Corporation for Education Network Initiatives
in California (CENIC) network for broadband internet access.
Rarely experiences broadband outages.
Receives an E-rate discount on its internet services.
Current level of broadband services should be sufficient for the
next 5-years.
Desert Sands
Unified School District
Uses fiber-based provider broadband services and utilizes E-rate
discounts for district facility- and school-based Internet services.
Partnered with a wireless internet services provider (WISP) to
design and implement a dedicated private LTE cellular network
for students to access assignments, homework, etc. on school
campuses, as well as from home.
Dedicated private LTE cellular network was designed to provide
the best possible coverage for district students and their families,
particularly in unserved and underserved areas.
Provides Wi-Fi hotspot devices to those families that live outside
of the areas covered by their LTE network.
Member of the One Future Coachella Valley Connectivity Task
Force.
Always looking for meaningful partnerships that could lead to
positive impacts for their students.
Palm Springs
Unified School District
Uses fiber-based provider broadband services and utilizes E-rate
discounts for district facility- and school-based Internet services.
Connected to the California Department of Education K-12 High-
Speed Network (K12HSN).
Partnered with a WISP to design and implement a dedicated
private LTE cellular network for students to access assignments,
homework, etc. on school campuses, as well as from home.
Dedicated private LTE cellular network was designed to provide
the best possible coverage for district students and their families,
particularly in unserved and underserved areas.
District IT Department staff maintains the dedicated private LTE
cellular network.
Member of the One Future Coachella Valley Connectivity Task
Force.
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Stakeholder Group Key Findings
College of the Desert
Palm Desert campus, which is the district’s primary campus, uses
the CENIC network for broadband internet access.
Using fiber-based provider broadband services, microwave
wireless broadband services, and wireless point-to-point
broadband services to connect to other district campuses.
Bringing new campuses online that will require additional
broadband services.
Interested in getting 100Gbps broadband services to all campuses
in the district.
Member of the One Future Coachella Valley Connectivity Task
Force.
Interested in improving broadband services for the district
through partnering with the City, and other organizations in the
area, such as CVAG, SCE, CSUSB, and CENIC.
California State University
San Bernardino
Palm Desert Campus
Uses the CENIC network for broadband internet access with
redundant paths back to the CSU main campus.
Rarely experience broadband outages; however, some outages
are weather driven.
Wi-Fi is available on campus, and it is available in a 300-foot
buffer zone around the campus, which helps bridge the digital
divide.
Cellular services are not always good in the community, so the
implementation of city-wide Wi-Fi could address this concern.
Managed and secure broadband services are ongoing concerns.
Interested in partnering with the City to improve broadband
services for their students when off-campus.
University of California
Riverside
Palm Desert Campus
Uses the CENIC network for broadband internet access, which is
very reliable.
Wi-Fi is available on campus.
Cellular services are not always good in the community, so people
jump on the campus Wi-Fi as soon as they arrive on campus.
Palm Desert campus houses various programs, including
community engagement, life-long/career learning, growers and
farmers education, 4H, crop management, master gardener, etc.
Interested in improving broadband services by partnering with
the City.
Non-competitive, cooperative environment exists between all of
the higher education institutions in the City.
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Stakeholder Group Key Findings
Desert Recreation District
Three facilities within the City are well served.
Free public Wi-Fi available within their facilities.
Public Wi-Fi is critical for bridging the digital divide especially for
school students that visit their facilities.
Recently launched a mobile app to enable anytime, anywhere,
access to District information.
Interested in improving Wi-Fi in outdoor recreational areas.
Interested in engaging with the City to improve broadband
services.
Joslyn Center
Senior community needs more broadband service providers in
the marketplace.
Broadband service costs and technology are perceived barriers to
the senior community.
Fiber-based broadband services are not available to everyone in
the senior community.
Senior community is increasing its use of public Wi-Fi, but public
Wi-Fi availability is limited.
Cell phone coverage varies depending upon the provider, which
can present challenges to the senior community.
Sunline Transit Agency
Facilities are well served.
Public Wi-Fi available in their facilities and their fleet of hydrogen
fuel cell powered vehicles.
Uses cellular based devices to track the location of their fleet.
Uses fiber-based network to interconnect their facilities including
transportation hubs.
Security of network is an ongoing concern.
Willing to provide backup power generation to the valley due to
their owned and operated hydrogen powered generator.
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Stakeholder Group Key Findings
Coachella Valley Association
of Governments
Focused on improving broadband services in unserved and
underserved areas of the valley.
Designing and building CVSync, which is a fiber-based intelligent
transportation system (ITS) network to interconnect the 550+
traffic signals throughout the valley.
Phase 1 of CVSync, which is underway, will build out a fiber
backbone ring network.
Phase 2 of CVSync will interconnect all the traffic signals to the
backbone ring network and will also install additional conduit and
fiber for broadband services in the same trench as the ITS
network.
Open to partnering with the City to use some CVSync broadband
fiber and/or installing City conduit/fiber in same trench.
Applied to State for funds to design and build a last mile network
to attach the CVSync broadband network to end users, which
could be utilized by the City as an end user.
Caltrans
Currently, does not have any fiber infrastructure in the valley;
however, planning is underway to build it out in the future.
State/Federal funds available to design and build conduit/fiber
infrastructure along I-10 in the valley.
Possibility for other entities to lease space along I-10 for the
installation of conduit/fiber.
Explored partnering with CVAG along Highway-111 to build a
middle-mile loop, but too expensive, so project was not funded.
Broadband services over Caltrans networks would be managed by
the California Department of Technology (CDT).
Local district has established a fiber/broadband team.
Palm Desert Chamber of
Commerce
Economic Development seems to be a driving force behind
improved broadband services in the City, particularly in the
downtown area.
Large number of traditional brick and mortar businesses in City.
Businesses utilize both telephone and broadband based point of
sales system.
El Paseo Business
Improvement District
Economic Development seems to be a driving force behind
improved broadband services in the district.
Adequate cellular services within the district.
Cellular and broadband services get a little worse each year as the
population grows.
Interested in public Wi-Fi within the district.
Interested in geofencing, so information about the businesses in
the district could be focused on the district shoppers.
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Stakeholder Group Key Findings
Coachella Valley Economic
Partnership
Innovation-Hub (I-Hub) in the City uses the CENIC network for
broadband services, with wired services available for business use
and Wi-Fi services available for student use.
When businesses are looking to relocate, they often look at the
availability of broadband in the area they would like to relocate
to - currently the valley is challenged to compete in this regard.
Improvements in broadband services in the valley have attracted
telecommuters to the area, which increases property values and
creates the need for even more broadband service
improvements.
Improvements in broadband services in the valley have attracted
new businesses to the area, which improves the skills base in the
valley.
Role is to look for opportunities to leverage the broadband
services in the valley to diversify the economy by attracting good
paying jobs that require the use of digital technology.
Improvements to broadband services need to continue in the
valley for the valley to stay relevant in the digital world.
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Section 5: Asset Inventory
Background
Network architecture is the basis for network design and engineering. The community’s existing fiber-
optic network assets and its architecture were inventoried and evaluated in order to understand its
capability and how best to leverage this asset in the extension to the rest of the City. This evaluation
focused on existing conduit, fiber-optic, vaults, and boxes and related outside plant infrastructure. It
also focused on the existing network’s capacity and usability, as well as the existing electronics and
communication equipment and their appropriateness to serve the extended network.
Based upon the identified existing fiber, GIS tools were used to show existing infrastructure, and provide
real-time, GIS-based information. These tools helped the city better understand what it is seeing; giving
the City the ability to explore various models; and retain the information for future phases of the Study.
Additionally, the review included existing fiber network patterns for the entire City, as well as an
exploration of future needs. The analysis determined the location of all fiber networks and their
potential availability to be utilized for improving broadband coverage as well as future broadband
expansion in Palm Desert.
Existing Fiber Network
Depicted in the diagram below is the fiber and conduit that was installed within the City as part of the
first phase of CVAG’s traffic signal synchronization project known as CV Sync. The orange lines show that
network infrastructure. Please note this infrastructure is in place today within the City.
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Traffic Signal Communication Circuits
Depicted below is the fiber and conduit that was installed in 2021 within the City by the City’s Public
Works team to interconnect the City’s traffic signals. This was part of the City’s effort to implement an
intelligent transportation system (ITS). It is important to point out that the City decided that this fiber
network could only be used for the ITS and no other purpose. The diagram below shows the City’s traffic
signal fiber network.
The legend on the diagram describes what each of the lines indicates. It also describes the capacity of
each of the fiber runs.
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CVAG CV-Sync Network
Depicted in the diagram below is the fiber and conduit that is proposed to be installed within the City as
part of the second phase of the CV Sync project. The blues lines show the already installed fiber and
conduit that was part of phase one of the CV-Sync project and the pink lines show that proposed
network infrastructure. The potential opportunity to utilize this infrastructure was explored during the
development of the conceptual high-level design (HLD) of this Study.
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Section 6: Establish Community Broadband Vision
Background
A Visioning Session was held to help City decisions makers understand the potential future planned fiber
deployment throughout the city. The session investigated and provided various scenarios including all
feasible public or private options or a combination of public and private options for fiber construction
and implementation. The session explored various options around public and private ownership, as well
as the possibility of leasing conduit and fiber. During the session the best practices in other communities
that have had experience with leading a broadband effort in their communities were shared.
Based on the information obtained from the data collection tasks previously completed, a session was
held with City Council that explored the vision of the City related to fiber. During the session with City
Council, existing services available and the pros and cons of a City partnership with providers were
identified.
Prior to the City Council Visioning Session, a multi-part Vision Exercise Survey and supporting materials
were developed. A link to the survey and materials was sent to all Council Members via email.
The first part of the Vision Exercise Survey, the Vision Survey, included questions about the level of
importance Council would rate statements regarding cellular and broadband services in the City.
The last part of the Vision Exercise Survey included a weblink to a white paper that presented an
overview of the different municipal broadband models. There are several models for fully private and
fully public broadband networks, plus a growing range of municipally enabled broadband strategies that
rely on a combination of public and private investment. Despite the many ways that municipalities have
gone about implementing their broadband programs, there are five main ways to do it, each requiring a
different level of investment and engagement from the municipality. Although these models primarily
focus on broadband, they can also be applied to the provisioning of cellular services.
The City Council Visioning Session that took place on Thursday, June 22, 2023. During the session, based
upon the data that has been collected and the feedback from the public, City Council provided the input
needed to draft a broadband Vision for the City. It is important to note that a Vision needed to be
established prior to the network being designed, which is the next phase of this Study.
Vision Survey
Prior to the City Council Visioning Session, a multi-part Vision Exercise Survey and supporting materials
were developed, which sent to all Council Members.
The first part of the Vision Exercise Survey, the Vision Survey, included questions about the level of
importance Council would rate statements regarding cellular and broadband services in the City.
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The following are the responses received from the Council members to the Vision Survey questions.
Question Response
How important is that high-speed internet is
accessible? Very Important to Absolutely Essential
How important is that high-speed internet is
affordable? Important to Absolutely Essential
Cellular services are adequate in the downtown
areas?
20% = Agree to Strongly Agree
60% = Neutral
20% = Disagree to Strongly Disagree
Cellular services are adequate in the residential
areas?
20% = Agree to Strongly Agree
60% = Neutral
20% = Disagree to Strongly Disagree
Cellular services are adequate in recreation areas?
20% = Agree to Strongly Agree
80% = Neutral
0% = Disagree to Strongly Disagree
Broadband services are adequate in downtown
areas?
20% = Agree to Strongly Agree
20% = Neutral
60% = Disagree to Strongly Disagree
Broadband services are adequate in residential
areas?
20% = Agree to Strongly Agree
20% = Neutral
60% = Disagree to Strongly Disagree
Broadband services are adequate in recreation
areas?
20% = Agree to Strongly Agree
60% = Neutral
20% = Disagree to Strongly Disagree
City should encourage/enable broadband
deployment?
60% = Agree to Strongly Agree
40% = Neutral
0% = Disagree to Strongly Disagree
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Do you have any comments regarding any of the previous questions?
Responses
It is important to make broadband available to all
Cost is a factor
We need input from businesses about the sufficiency of cellular and broadband service in downtown/business
area
Current system works fine
Have not fielded any complaints from residents about the speed of their internet
What do you see as the biggest benefits for Palm Desert as the City considers potentially enhancing
broadband services throughout the community?
Responses
Attraction and retention of diverse business enterprises, including tech-based businesses
Equal access for residents
Coachella Valley in general has become an attractive "tele-commuting" site, lack of high-speed internet limits
this
Improving the quality of life for our residents
What are your biggest concerns for Pam Desert regarding the future of broadband services? And why?
Responses
Every major private provider has shown an inability to deliver good service
Competition is essential to keep private sector on their toes
Cost
We need to be good stewards of the financial dollars of our citizens and taxpayers
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Municipal Broadband Service Models
The last part of the Vision Exercise Survey included a weblink to a white paper that presented an
overview of the different municipal broadband models, which are shown in the chart below.
The white paper was created by US Ignite in July of 2020 for communities considering ways to expand
broadband service. The guide, titled Broadband Models for Unserved and Underserved Communities,
includes five models for fully private and fully public broadband networks. It is intended to help
communities understand how much capital is needed for different models of deployment, what returns
to expect, and finally how to avoid the most common pitfalls. Additional information from the white
paper is presented in Appendix A of this Study report.
Key Vision Exercise Findings
• Council indicated that it is concerned about broadband services.
• Council indicated that it thinks that the City should encourage and/or enable broadband
deployment.
• Council indicated that it is concerned about internet availability and costs.
• Council indicated that economic development, equal access, and improved quality of life are
benefits to improved broadband services.
• Council indicated that the level of services available, costs, and being good stewards of taxpayer's
dollars are the biggest concerns with the City’s involvement in improving broadband services.
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Visioning Session
The Visioning Session with the Palm Desert City Council took place on June 22, 2023. It occurred during a
study session with the Council.
The following was the agenda for the session.
• Broadband 101
• Project Background
• Project Progress Update
• Review Visioning Exercise
• Review Broadband Service Models
• Discussion & Next Steps
As indicated in the agenda above, the session started with a basic overview of Broadband. That was
followed by a presentation and discussion of the materials included in the previous sections of this Study
report. This discussion included the results of the Resident and Business Survey, Market Assessment,
Stakeholder Engagement, and Asset Inventory. The Vision Exercise Survey results presented previously
in this section were discussed, as well as the Business Service Models diagram shown above.
During the session, Council members explored various ownership and operating models to better
understand the risks and potential rewards of the often challenging and sometimes conflicting values
inherent in community broadband. This exercise helped the Council develop recommendations for the
next steps of the Study related to improved community fiber and broadband services.
A broadband roadmap that stresses the importance of the creation of recommendations for this project
was used during the session. Recommendations must be grounded by a thorough understanding of the
intended goals of the project, an appreciation of the risks/rewards of various ownership and operational
models and buy in from governing bodies that the path forward represents the best use of scarce
community resources (time, energy, financial capital).
The discussion concluded with the following key outcomes, which will drive the next phase of the Study.
Key Outcomes
The primary outcome from the Visioning Session was that the Council shared their thoughts about next
steps for the Study. The Council indicated that it was probably in the best interest of the City to explore
ways to improve upon the Full Private Broadband model that is currently in place in the City because it
did not seem to be meeting the needs of the community. As shown in the chart above, the Full Private
Broadband model is described in broadband service Model #5.
At the end of the Visioning Session, the Council decided that they wanted the next steps of the study to
focus on a recommended municipal broadband model based on the data that was gathered during the
Vision phase of the Study. In addition, they wanted the next steps to include a concept design and cost
estimate of the recommended model, and an exploration of potential funding sources to cover the costs
of any potential construction of a community network based on the recommended model.
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Recommendations
Based on the data collected during the Vision phase of this Study, Model 3 – Hybrid Ownership was
recommended as the model that should be explored during the Planning phase of this Study. This model
is described in the chart above that shows the five different municipal broadband models.
The general characteristics of Model 3 include a municipal owned, designed, and constructed middle-
mile fiber ring network. Typically, the municipality explores a partnership with one or more private
sector providers to construct, manage, operate, and maintain the municipal owned network, as well as
to provide services over the network, and potentially own, design, construct, and manage the last mile
connections to residents and businesses. When a municipality looks at potentially constructing a fiber
network, it usually tries to find funding opportunities to help cover constructions costs, such as grants,
and some of those opportunities require the City to have one or more private sector partners to qualify
for funding.
The implementation of the recommended model described above should provide solutions to some of
the concerns shared by residents, businesses, stakeholders, Council, etc. including:
Increased Availability – The scenario described above should improve the availability of broadband
service throughout the community including the unserved and underserved areas.
Encouraging competition – The City-owned network could break down potential barriers to
competition by allowing providers not currently in the market to utilize the City’s fiber network as a
foundation for their networks through the leasing of dark fibers.
Reducing service fees – Fees tend to decrease with increased competition.
Improving speeds – Generally, the technology used to connect users to a fiber-based network
permits increased speed over traditional coax, copper, or wireless connectivity.
Improving cellular service – Carriers could lease dark fibers from the City to interconnect their cell
phone facilities, which means the carriers could install facilities in areas of the community where
they currently do not have coverage or poor coverage.
Supporting Economic Development – When businesses are looking to relocate, they often look at
the availability of broadband in the area they would like to relocate to, so the City-owned network
should help to attract new businesses and retain current businesses, including home based, online,
and traditional brick and mortar businesses.
It is important to point out that if the City is unable to establish a partnership with one or more private
sector partners to own, design, construct, and manage the last mile connections to residents and
businesses, then the City and its anchor institutions that are connected to the city-owned middle-mile
network would be the only beneficiaries of the improvements in broadband services created by the
construction of the middle-mile fiber ring network. Also, without a private sector partner, the City would
most likely not be able to qualify for many of the current federal and state last mile broadband grant
opportunities.
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Planning Phase – Next Steps
The Planning Phase of this Study included the following steps focused on the recommended model:
Creating a preliminary design and cost estimates.
Evaluating funding alternatives.
Development of a smart city technology plan.
Exploring potential partnerships with the private sector.
Identifying recommendations for next steps.
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Section 7: Preliminary Design & Cost Estimate
Background
Based upon the outcomes and recommendations from the Vision Session with Council, the next step in
the Study was to complete a fiber ring network high-level design (HLD) that can be used for costing (and
possible future detail design). Some of the steps in developing the HLD included:
Checking for any higher cost issues (special crossings, rural areas, etc.).
Potential use of existing City’s fiber and conduit assets (or other assets).
The HLD leveraged GIS-based tools that identify physical locations of all customer locations and other
termination points.
Upon completion of the preliminary design, a cost estimate was prepared for developing the next
generation fiber ring network.
Conceptual Design
Drawing on field and desk surveys, and GIS maps, a system level design and cost estimate was prepared
for developing a next generation network. In developing this approach, the focus was on creating a
robust, reliable, and cost-effective approach to meeting the City’s networking needs. To that end, for
example, the design includes excess dark fiber to enable the implementation of smart technology
solutions across the community. Information about potential smart technology solutions can be found in
the Smart Application Technology Plan located in Appendix B of this report.
Based on an analysis of existing infrastructure, conceptual design, of high-level maps and routing,
candidate specifications and a system-level overview of the potential infrastructure was provided. This
analysis in turn became a roadmap for business modeling and for future decisions (potentially including
detailed engineering, construction, and operations).
The conceptual design is for the development and deployment of a city-owned fiber ring network to
support a fiber to the home network. It envisions the city constructing a municipal fiber to the curb
network (ring design) that will create ubiquitous fiber to the home connectivity throughout the City of
Palm Desert.
The diagram below shows the conceptual design of the fiber ring network for the City of Palm Desert.
The network is composed of two network rings: a northern ring and a southern ring. The red dashed
lines in the diagram show the paths of each of the rings.
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Cost Estimates
A cost estimate and supporting documentation for network deployment and interconnection, inclusive
of anticipated construction labor, materials, engineering, permitting, quality control, and testing was
prepared. These estimates were provided in the form of a cost range, with the lower-end estimates
representing the most likely costs and the higher-end representing budgetary estimates with suitable
contingencies included.
All supporting data, spreadsheets, and assumptions were shared with City officials. A written narrative
explained key construction characteristics that will impact the cost estimates.
The analysis provided guidance regarding ongoing costs, medium and long-term needs to refresh and
replace equipment and potential revenue sources to support network operations.
Various data points were taken into consideration during the cost estimating process. These included:
the estimated underground footage of proposed fiber conduits, total number of handholds, total
number of splice points, total number of fibers, material costs breakout, and labor costs.
The following table shows the estimated length of the proposed conduits for each of the network
segments that are part of the two network rings that make up the backbone of the network.
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Segment Description
New
Underground
Conduit
Feet
Hand Holes Splice Points
North Ring
Palm Desert Station - Palm Desert North Fire Station 13,502 11 5
Palm Desert North Fire Station - Palm Desert Fire Station 18,533 12 4
Palm Desert Fire Station - Westfield Shopping 3,360 2 1
Westfield Shopping - Palm Desert Library 5,019 4 2
Palm Desert Library - Palm Desert City Hall 1,547 2 1
Palm Desert City Hall - Veteran Services 15,646 9 4
Veteran Services - Palm Desert Station 17,502 11 3
South Ring
Westfield Shopping - Bighorn 17,610 10 3
Bighorn - Mesa View Fire Station 3,905 3 1
Mesa View Fire Station - Living Desert 4,407 3 1
Living Desert - Palm Desert City Hall 10,691 5 1
Palm Desert Overview 111,722 72 26
The following table shows the estimated backbone construction costs for each of the of the network
segments that are part of the two network rings based on installing a 288-fiber count sheath within
each conduit and using the estimated length of the proposed underground conduits shown in the
previous table.
Segment Description
Estimated
288ct
Material Costs
Estimated
Backbone
Installation Cost
(no splicing)
Estimated
Design
Engineering and
PMO Labor Cost
Estimated
288ct Total
Backbone
Segment
w/Splicing Cost
North Ring
Palm Desert Station - Palm Desert North Fire
Station $84,287 $1,184,801 $36,050 $1,491,091
Palm Desert North Fire Station - Palm Desert Fire
Station $115,693 $1,626,271 $49,483 $2,014,943
Palm Desert Fire Station - Westfield Shopping $20,975 $294,840 $8,971 $368,353
Westfield Shopping - Palm Desert Library $31,331 $440,417 $13,401 $555,840
Palm Desert Library - Palm Desert City Hall $9,657 $135,749 $4,130 $175,579
Palm Desert City Hall - Veteran Services $97,671 $1,372,937 $41,775 $1,707,972
Veteran Services - Palm Desert Station $109,257 $1,535,801 $46,730 $1,894,231
South Ring
Westfield Shopping - Bighorn $109,931 $1,545,278 $47,019 $1,905,714
Bighorn - Mesa View Fire Station $24,377 $342,664 $10,426 $426,302
Mesa View Fire Station - Living Desert $27,511 $386,714 $11,767 $479,679
Living Desert - Palm Desert City Hall $66,739 $938,135 $28,545 $1,147,849
Palm Desert Overview $697,429 $9,803,606 $298,298 $12,167,553
Price per foot $6.24 $87.75 $2.67 $108.91
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Section 8: Funding Alternatives
Background
The ability to leverage federal, state, and regional grants and programs can substantially facilitate the
cost of a network buildout. In recognizing the need for broadband support, federal and state
governments provide funding in areas recognized as unserved or underserved based on public data on
broadband availability and speeds in different regions across the country. Historically, this data has
been criticized as poorly prepared, marginally reliable, and overly generalized. As a result, a community
like those in City of Palm Desert may be considered as adequately covered and served by broadband
providers, whereas residents may actively experience a lack of sufficient or affordable service. Within
the context of these considerations, this section provides an overview of sources of funding that could
help offset infrastructure and operational costs.
It is important to note that the FCC defines unserved areas as locations with less than 25 Mbps
download and 3 Mbps upload speeds, and underserved areas as locations with less than 100 Mbps
download and 20 Mbps upload speeds.
Fortunately, the City is on the cusp of a generational investment in broadband infrastructure. The
federal government and state legislatures across the country have recognized the need for broadband
funding support. Numerous federal and state programs are currently either being rolled out or are in
various stages of legislative consideration. The availability of these sources to offset infrastructure
and/or operational costs for a broadband project in City of Palm Desert depends on several factors:
• The scope of the project matches intended grant recipient profile
• The timeline for funding application and disbursement matches the anticipated schedule for the
project
• Ensuring the completion of all conditions and goals of the grant
• Attaining the matching investment capital required by some grants
In addition, alternative funding sources could help offset infrastructure and operational costs. It is also
important to maintain awareness of other funding sources. It is not uncommon for an agency (regional,
State or Federal) to have targeted programs that can provide funding for broadband projects. These can
range from utility related topics to community betterment to citizen specific needs to business
attraction or retention, block grants, etc.
City of Palm Desert may be potentially eligible to benefit from broadband project financing available
from several sources, including federal and state broadband grant funding for eligible unserved and
underserved areas, direct financing though bonds, debt financing though bank loans, and private
investment and partnerships.
California Grant Programs
In July 2021, Governor Gavin Newsom signed historic broadband legislation into law to help bridge the
digital divide and provide reliable and affordable internet access to all Californians. Senate Bill 156
(Chapter 112, Statutes of 2021) expands the state’s broadband fiber infrastructure and increases
internet connectivity for families and businesses, and allocates $6 billion for the following programs:
• $3.25 billion for an open-access statewide broadband middle-mile network,
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• $2 billion for broadband last mile infrastructure projects,
• $750 million for a loan loss reserve to support local government broadband infrastructure
development, and
• $50 million for local agency technical assistance grants including funding for Tribal entities.
Following the announcement, the CPUC released the 2020 Broadband for All Action Plan, followed by a
commissioned report titled Broadband Factors for Last-Mile Connectivity. These documents have since
been incorporated into the recently released final initial 5-year strategic planning document on July
13th, 2023. The California Five-Year Action Plan Broadband Equity, Access, and Deployment (BEAD)
Program Plan, required by the NTIA as part of the BEAD program, is a comprehensive plan to connect all
Californians with high-speed broadband by 2028. The plan is based on the principles of universal access,
equity, and sustainability.
The plan includes several specific initiatives to achieve these goals, such as expanding the state's middle-
mile network, providing grants to local governments and nonprofits to build last-mile infrastructure,
offering subsidies to help low-income Californians afford broadband service, and educating Californians
about the importance of broadband access and adoption. The plan also calls for the state to work with
federal, local, and tribal governments to ensure that all Californians have access to high-speed
broadband.
The key goals and objectives of the plan are as follows:
• Goal 1: Connect all Californians with affordable, high-speed broadband by 2028.
o Objective 1: Expand the state's middle-mile network to reach all unserved and underserved
areas.
o Objective 2: Provide grants to local governments and nonprofits to build last-mile infrastructure
in unserved and underserved areas.
o Objective 3: Offer subsidies to help low-income Californians afford broadband service.
o Objective 4: Educate Californians about the importance of broadband access.
• Goal 2: Ensure that broadband access is distributed equitably, so that all Californians can participate
in the digital economy.
o Objective 1: Target broadband deployment and adoption efforts to underserved communities,
such as rural areas, Tribal lands, and communities with high concentrations of low-income
residents.
o Objective 2: Work with community-based organizations and other stakeholders to ensure that
broadband access is available and affordable to all Californians.
• Goal 3: Ensure that the state's broadband infrastructure is sustainable and resilient, so that it can
meet the needs of Californians for years to come.
o Objective 1: Use public-private partnerships to finance the construction and maintenance of
broadband infrastructure.
o Objective 2: Adopt policies that promote the deployment of open access broadband networks.
o Objective 3: Work with local governments to ensure that broadband infrastructure is located in
areas where it is needed most.
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To address the digital divide and improve access to high-speed internet across the state, California has
established several broadband grant programs aimed at expanding broadband infrastructure and
connectivity in underserved and rural areas. These programs provide funding to various entities,
including local governments, nonprofit organizations, and Internet Service Providers (ISPs), to deploy
broadband infrastructure and deliver internet services to areas with limited or no access.
1. The California Last Mile Federal Funding Account (FFA): the FFA is funded through the Broadband
Equity, Access, and Deployment (BEAD) Program, a $42.45 billion program that was created as part
of the Infrastructure Investment and Jobs Act (IIJA) of 2021. The BEAD program provides funding to
eligible entities to expand high-speed internet access by funding planning, infrastructure
deployment, and adoption programs. It is administered on a high level by the National
Telecommunications and Information Administration (NTIA) of the United States Department of
Commerce, but each state is responsible for creating rules and guidelines for how the funds will be
distributed. California was awarded $1.86 billion in BEAD funding combined with $540.2 million
from the American Rescue Plan Act’s Capital Projects Fund. The first round of funding was available
to apply by the deadline of September 29, 2023. Areas of eligibility for grant programs are published
in the CPUC’s Federal Funding Account Public Map.
2. California Advanced Services Fund (CASF): CASF is a major initiative launched by the California Public
Utilities Commission (CPUC) to promote broadband deployment in underserved and unserved areas.
It provides $3.25 billion in grants to ISPs, local governments, and other eligible entities to build
broadband infrastructure and offer internet services in areas where commercial providers have not
invested. CASF grants support both last-mile and middle-mile projects. The program provides grants
to broadband service providers, public housing authorities, broadband adoption entities, tribes, and
regional consortia. The California Advanced Services Fund (CASF) is allocated to five CASF accounts:
1. Broadband Adoption Account
2. Broadband Infrastructure Grant Account
3. Broadband Public Housing Account
4. Rural and Urban Regional Broadband Consortia Grant Account
5. Line Extension Pilot Program
The Open-Access Middle-Mile Network and Last-Mile Federal Funding Account are part of the
Broadband Infrastructure Deployment Proceeding Rulemaking 20-09-001 and through the California
Advanced Services Fund (CASF) Rulemaking 20-08-021.
The CPUC is reviewing recent applications for the Broadband Adoption Account, which received 91
applications for nearly $15 million for broadband access and digital inclusion, the Broadband Public
Housing Account, which received 14 applications to build broadband networks offering free
broadband service for residents of low-income communities, and the Infrastructure Grant Account,
which received 74 applications for approximately $527 million for middle-mile and last-mile
infrastructure.
Eligibility maps for the CASF program in the City of Palm Desert are available in the Appendices of
this section of this report.
3. California Emerging Technology Fund (CETF): CETF is a nonprofit organization established to
accelerate broadband deployment and adoption in underserved communities. It collaborates with
various stakeholders, including local governments and ISPs, to expand broadband access and digital
literacy programs.
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4. California Teleconnect Fund (CTF): The CTF program provides discounts on select
telecommunications services to eligible schools, libraries, hospitals, and nonprofits. This program
reduces the cost of connectivity for these critical community institutions, enabling them to better
serve their constituents.
5. Local Agency Technical Assistance: The funding for this program has been exhausted. The $50
million grant program was designed to reimburse eligible local governments and Tribal entities for
pre-project costs associated with work that facilitates broadband network deployment projects to
communities lacking sufficient Internet. On February 24, 2022, the CPUC adopted the technical
assistance decision and program guidelines (D. 22-02-026) as part of the California Advanced
Services Fund Rulemaking 20-08-021. Separately, tribes with additional or ongoing planning needs
are encouraged to consider applying for the CPUC’s Tribal Technical Assistance Grant Program,
which provides up to $150,000 per Tribe per fiscal year for broadband planning.
These grant programs aim to bridge the digital divide, ensure equitable access to education, healthcare,
economic opportunities, and government services, and ultimately contribute to the overall socio-
economic development of underserved and rural areas in California. To be eligible for these grant
programs, applicants must meet certain criteria, such as being in an unserved or underserved area,
having a low-income population, or being a public entity. The amount of funding that each applicant
receives will depend on the specific program and the needs of the community.
In addition to these grant programs, the California government also provides other funding
opportunities for broadband deployment, such as tax credits and rebates, and bond assistance
programs, further addressed in the Bond and Loan Financing Section of this chapter.
Federal Grants and Loans
The federal government, through the FCC and the USDA, provides funding for broadband programs
around the country.
The FCC, as mandated by the 1996 Telecom Act, implements universal service policies through the
Universal Service Fund that is comprised of four programs: Connect America Fund, E-Rate, and Rural
Health Care, and Lifeline (supplying mobile devices to qualified low-income households – not included as
relevant to this document). As an extension of the Connect America Fund Phase II Auction, the FCC also
recently adopted the Rural Digital Opportunity Fund (RDOF) to serve rural homes and businesses and
close the digital divide.
Affordable Connectivity Program (ACP)
The Infrastructure Investment and Jobs Act (IIJA) of 2021 established the ACP as a $14B extension of the
previous Emergency Broadband Benefit (EBB) Program initially passed as part of the December 2020
Covid-19 Relief package, after the appropriations are expended. The program will contribute $30 dollars
a month (lower than the $50 a month under the EBB) towards an internet service plan for qualifying
households to help low-income families offset costs of broadband connectivity. The program also helps
low-income individuals pay for personal devices.
It is important to point out that in January 2024, the FCC released a statement saying that the $14.2
billion Congress initially appropriated for the ACP is approaching depletion. Without additional funding,
the Commission must begin a wind-down process for the ACP.
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USDA ReConnect and FCC RDOF
These two programs have cycles that are completed and may not have subsequent phases. ReConnect
has been a USDA grant and loan program to bring broadband to underserved areas. The last phase of
ReConnect was in 2020. RDOF has been an FCC funded grant reverse auction process. There is no open
grant request period right now. In the latest RDOF process, requests were made in April 2021 and final
awards are currently being worked on. Other rounds are possible.
Federal Communications Commission (FCC) Programs
A. FCC Connect America Fund (CAF)
The FCC conducted a Connect America Fund Phase II auction throughout 2018 and 2019. In their press
release in August 2019, they stated:
“In total, the auction last year allocated $1.488 billion in support to expand broadband to more than
700,000 unserved rural homes and small businesses over the next 10 years. The FCC has already
authorized three waves of funding in May, June, and July. Today’s action brings total authorized funding
to over $924 million, expanding connectivity to 342,097 homes and businesses; additional rounds will be
authorized in the coming months.”
There will be specific guidelines for the awarded providers. They will be required to provide annual
progress reports. They will be required to offer service to 40 percent of their awarded areas by the third
year. Also, they will be required to add an additional 20 percent each year, serving 100 percent of the
supported locations in their accepted area by the end of year six. If carriers do not deploy infrastructure
to 100 percent of the locations within a block but deploy to 95 percent of the locations for which they
were awarded statewide, the carrier will be required to refund 50 percent of the support it received for
the total number of unserved locations. This information (and any updates) can be found on the CAF II
website: https://www.fcc.gov/connect-america-fund-phase-ii-auction-auction-903.
B. E-Rate
The Federal Communications Commission (FCC) established E-Rate to provide schools, libraries, and
universities with discounts of 20-90% off the costs of telecommunications, internet networks and
ongoing expenses. E-Rate is administered through the Universal Service Administrative Company (USAC)
with oversight provided by the FCC.
The specific dates that determine when schools and libraries can apply for funding can change slightly
from year to year but follow a mid-winter to Spring pattern. Once the application process ends in the
Spring, the funding year begins for those applications.
There is a specific ID a school or library must get, then specific forms to fill out to apply. And there are
competitive bid requirements (there must be an RFP and it must be open for 28 days) to be eligible for
the funding. And there are different options for how this will be paid to the institution and to the
vendor. Also, there are documentation requirements that need to be understood and followed.
The level of E-rate funding for schools and public libraries is based on the number of students who
participate in the free or reduced cost school lunch program at all the public K-12 schools in the county.
Schools and libraries might be an important part of funding strategies for infrastructure. Excess capacity
can be added to these networks at substantially less cost than an independent build. If this is something
that the county would like to pursue, HR Green can help walk you through the specific timeline and
steps to be taken.
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The County public libraries located within City of Palm Desert utilize the E-Rate program. Again, the level
of funding for the libraries is based on the number of students who participate in the free or reduced
cost school lunch program at all the public K-12 schools in the county.
Information about the E-Rate program can be found on the USAC website: https://www.usac.org/e-
rate/
C. Healthcare Connect Fund
This fund was also created by the FCC and is administered by the Universal Service Administrative
Company (USAC). It was created to give Health Care Providers (HCP) the ability to have broadband
services that meet health care’s capacity needs. It particularly encourages the formation of state and
regional networks.
HCPs can apply individually or in a consortium. Funded applicants receive a 65% subsidy on all eligible
broadband equipment and services. These dollars can be used for construction of networks. The intent
of the funds is predominantly for rural healthcare providers. Urban facilities can be included if they are
in a consortium that includes at least 51 percent of rural providers. If there are health care providers
who could be part of a holistic strategy, this fund could be an important component of connectivity. As
with E-rate, excess capacity can be added to these projects at significant savings.
More information about the HCF can be found on USAC’s website at:
http://www.usac.org/rhc/healthcare-connect/default.aspx
United States Department of Agriculture (USDA) Programs
Within the USDA, the Rural Utility Services (RUS) has been an important part of the development of
utility infrastructure in the United States. They offer low interest loans for telecommunications based
on the treasury rate. These rates change regularly, so it is important to check with RUS to get the most
current rate. They also offer low interest loans for telecommunications used in electric utilities (of
which the excess capacity can be used for other broadband services). RUS offers grants, loans, and a
combination of the two. RUS Programs include the ReConnect Program, the Telecommunications
Infrastructure Loan Program, the Rural Broadband Access Loan, Community Connect Grants, and
Distance Learning and Telemedicine Grants.
The ReConnect program, run by the United States Department of Agriculture (USDA). The program seeks
to facilitate rural broadband not meeting the FCC definition of broadband.
In the first round of the ReConnect Pilot Program, the USDA invested $744 million since October 2019.
In the second round, the application window for which closed on April 15, 2020, 172 applications were
filed requesting $1.57 billion. The program is composed of three application types:
• LOAN: The loan program can allocate a maximum of $50 million with a fixed 2% interest rate. There
is $200 million available nationwide.
• COMBO: interest rate fixed by the Treasury. There is $100 million in loan funding and $100 million in
grant funding available.
• GRANT: maximum award is $25 million and requires a 25% match. There is $200 million available
nationwide.
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A. The Telecommunications Infrastructure Loan Program
This program provides financing for the construction, maintenance, improvement and expansion of
telephone service and broadband in rural areas. Most entities that provide telecommunications in
qualified rural areas including:
• State and local governmental entities
• Federally Recognized Tribes
• Non-profits, including Cooperatives, and limited dividend or mutual associations
• For-profit businesses (must be a corporation or limited liability company)
Areas that are eligible to apply include rural areas and cities with a population of 5,000 or less and areas
without telecommunications facilities or areas where the applicant is the recognized
telecommunications provider. The above information is available on the RUS website for this program:
https://www.rd.usda.gov/programs-services/telecommunications-infrastructure-loans-loan-guarantees
B. Rural Broadband Access Loan
Stated purpose: The Rural Broadband Access Loan and Loan Guarantee Program (Broadband Program)
furnishes loans and loan guarantees to provide funds for the costs of construction, improvement, or
acquisition of facilities and equipment needed to provide service at the broadband lending speed in
eligible rural areas. To be eligible for a broadband loan, an applicant may be either a non-profit or for-
profit organization, and must take one of the following forms:
• Corporation;
• Limited liability company (LLC);
• Cooperative or mutual organization
• A state or local unit of government
• Indian tribe or tribal organization
• Individuals and Partnerships are not Eligible.
Areas that are eligible to apply:
• Proposed funded service areas must be completely contained within a rural area or composed of
multiple rural areas, as defined in 7 CFR 1738
• At least 15 percent of the households in the proposed funded service area are unserved,
• No part of the proposed funded service area has three or more “incumbent service providers.”
• No part of the proposed funded service area overlaps with the service area of current RUS
borrowers or the service areas of grantees that were funded by RUS
• Communities where USDA Rural Utilities Service has previously provided funding for construction of
broadband infrastructure may not be eligible.
The above information is available on the RUS website for this program:
https://www.rd.usda.gov/programs-services/rural-broadband-access-loan-and-loan-guarantee
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C. Community Connect Grants
The stated purpose of this program is to help fund broadband deployment into rural communities
where it is not yet economically viable for private sector providers to deliver service. Grants are
specifically targeted to local and tribal governments for very low-income rural communities (under
20,000 residents) with completely unserved and very low-income populations. Rural areas that lack any
existing broadband speed of at least 10 Mbps downstream and 1 Mbps upstream are eligible. Within the
area, 15% must be unserved and there cannot be three or more current providers. Because they are
funding rural utilities, the municipal population must be less than 20,000 and not adjacent to a City of
over 50,000.
The recipients must provide at least 4 Mbps Down/1 Mbps Up with free service to all households and
community institutions for two years to a community center. One key with this grant is that the service
area does not have to be uniform, but any areas that will be served must be contiguous.
With interest rates being as low as they are currently, if broadband construction is part of the adopted
strategy, there should be an analysis of available loan providers and their interest rates. If RUS rates are
not at least a point lower (and possibly more than that), then the filing and ongoing requirements might
not be worth the difference in rate. Depending on the application requirements, RUS has typically taken
12 to 18 months to approve loans.
Depending on the strategy that the county pursues, if it includes building telecommunications
infrastructure, RUS should be considered. The above information is available on the RUS website for
this program: https://www.rd.usda.gov/programs-services/community-connect-grants
D. Distance Learning and Telemedicine Grants
The program helps rural communities become remotely connected to teachers and medical service
providers. This program is particularly important during the time of the pandemic and has been
provided an additional $25 million through the CARES Act. Relatedly, there are other funds made
available by the CARES Act specifically for telehealth ($200m to FCC, $180m to HHS, and $2.15b to the
VA). City of Palm Desert may potentially leverage this funding to extend the residential broadband
network to its hospitals and other medical institutions. In addition, $13.5b was made available in
Education Stabilization Funding to invest in technology supporting distance education, making school
districts another eligible anchor tenant with potential support for expansion of the municipal broadband
network.
For more information, please visit the program page at https://www.rd.usda.gov/programs-
services/distance-learning-telemedicine-grants.
Economic Development Administration
Within the United States Department of Commerce is the Economic Development Administration, which
oversees Economic Development Assistance grants. Information about these grants can be found on the
EDA website: https://www.eda.gov/programs/eda-programs/
Typically, these grants have been based on job creation. There are different categories of grants, but
they all focus on how many jobs can be created. Broadband does appear to be fundable infrastructure,
although there have not been a lot of broadband projects funded. Having said that, with broadband
infrastructure being eligible and some projects having been funded, it should be considered.
The key questions seem to be: how many jobs can be created and how will this project directly impact
job creation?
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The EDA recommends contacting one of their regional Economic Development Representatives (EDR) to
discuss projects and to have them review grant applications before they are submitted. If this is a grant
that could apply to your strategy, then it is strongly recommended that the City contact its EDR. Their
typical timetable to submit applications is that they will receive applications at any time – although that
is subject to available funds from year to year.
Housing and Urban Development (HUD)
HUD administers the Community Development Block Grant Program (CDBG). It was established to help
communities address various community development needs. Based on a national formula relying
primarily on census data, CDBG provides annual grants to more than 1,200 local and state governmental
entities. Although CDBG grants have been utilized very little for broadband programs, HUD has
confirmed that broadband programs can be eligible for CDBG dollars.
There are two main categories of grant eligibility: Entitlement and non-entitlement. Entitlement grants
are awarded to larger cities and urban counties (greater than 50,000). Non-entitlement areas are for
smaller cities and administered by states. Also, there are Section 108 loan funds which could be
available. Grants can be used as security for Section 108 loans, leveraging the grant dollars for more
impact. Non-entitlement areas can also use their grants in this way, but since they are administered by
the State, the State would have to agree to leverage those funds.
Information about the CDBG program can be found on the HUD website:
https://www.hud.gov/program_offices/comm_planning/communitydevelopment
Bond and Loan Financing
Additional sources of potential funding include municipal bonds such as general obligation bonds, and
revenue bonds, as well as bank loans or private investment financing.
The City of Palm Desert has the option of issuing general obligation bonds or revenue bonds. General
obligation bonds are guaranteed repayment by issuers by any means necessary, including increased
taxes. Revenue bonds are repaid using the revenues from the bonds that the project facilitated in
funding. Repayment is not guaranteed if the project potentially does not collect enough in revenue to
pay back investors. These types of municipal bonds are not subject to income tax at the state or federal
level if the investor is a resident of the state, although not all of Iowa’s municipal bonds are tax free.
Often, the investor may be a local bank, mutual fund brokerage, or other type of financial institution.
The City of Palm Desert can also pursue infrastructure project-based bank loans and private investment.
The terms and conditions of these loans can vary based on continuous changes in state banking laws. It
is recommended that these loans are combined with state grants and tax abatement programs to the
maximum extent possible.
Loan Loss Reserve
California has established an $750 million Broadband Loan Loss Reserve Fund administered by the
California Department of Community Services and Development (CSD) to support costs related to the
financing of local broadband infrastructure development. The reserve fund expands local governments'
ability to secure financing for building last-mile projects, with an emphasis on public broadband
networks. The CPUC’s procedural schedule for establishing the program is outlined in a ruling in the
California Advanced Services Fund Rulemaking 20-08-021. The program provides loans and loan
guarantees up to $25 million.
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Recommendations
The City of Palm Desert should consider applying for the California Last Mile Federal Funding Account
(FFA) when applications are open. This last-mile grant would increase the probability of the City
facilitating infrastructure deployment to meet the connectivity needs of un and underserved residents
and businesses.
In addition, while the application is currently closed, the City should consider future CASF Infrastructure
Account applications through the local Broadband Consortium representative to plan for future grant
award rounds.
Lastly, the City should facilitate an information campaign to advertise eligibility in the Affordable
Connectivity Program to qualify for low or no-cost broadband subscription plans and discounts on
computing devices for low-income residents. The program is currently undersubscribed, generally due
to a lack of awareness, but many of the City’s residents could be eligible. The internet service companies
currently offering subsidies can be found at this link: https://cnm.universalservice.org/, and applications
are available here: https://www.affordableconnectivity.gov/
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Appendices
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Section 9: Explore Partnerships
Background
Broadband service Model #3, the Hybrid Ownership model, which is the recommended model for the
City, may need to leverage funding for both fiber ring network and last-mile construction available
through federal, state, or other funding sources. This means that the City needed to identify one or
more potential for-profit partners who are interested in leasing the core middle-mile municipal network
assets, and in building and managing last-mile connectivity. Identifying interested partners, therefore,
was an important step to help the City envision a path forward and may be required by some funding
sources.
The approach used to engage with potential partners included building a list of potential partners and
other interested parties, developing a request for expressions of interest (RFEI), publishing the RFEI on
the City’s bid system, sending the RFEI to the list of potential partners, processing responses to the RFEI,
and selecting potential partners based on the level of interest. This approach created a faster-moving
cycle in which partners could be identified and brought to the table more quickly and with a higher
likelihood of successful progress.
The RFEI process was useful to determine interested parties but did not provide the City with enough
details to fully determine a proposed partner nor the form of the partnership. It is recommended that
the City conduct a formal request for proposal (RFP) to identify and select its partner(s) for the potential
buildout.
The list of current internet service providers (ISP) for the City of Palm Desert, which was developed
during the Market Assessment for this Study, was used as a starting point for identifying potential
partners for the potential buildout of the City’s fiber ring network. Other providers that were not
currently providing services to the community were added to the list of potential partners. Here is the
list of ISPs who were identified as potential partners (in alphabetic order):
• Charter (Spectrum)
• Comcast
• Cox
• Crown Castle
• Frontier
• Google Fiber
• Lumen (formerly CenturyLink)
• Pacific Lightwave
• TDS Telecom
• Underline
• Zayo
Request for Expressions of Interest
The RFEI that was developed and posted on the City’s bid system for selecting potential partners based
on the level of interest can be found in Appendix C of this report.
On November 8, 2023, the RFEI was posted on the City’s bid system, and then the link to the RFEI was
sent to the list of potential partners via email. Potential responders had until November 15, 2023, to
submit questions about the RFEI, and their responses were due on December 1, 2023.
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RFEI Responses
Prior to the RFEI closing at 5:00 pm on December 1, 2023, the City received one response to the RFEI.
The respondent is Arcadis.
According to their proposal:
Arcadis is one of the world’s largest architecture and engineering companies, delivering technology-
driven sustainable design, engineering, and consultancy solutions for natural and built assets. Now
bringing together the digital capabilities, products, and solutions of “Arcadis IBI Group” and “ArcadisGen”
under a single Arcadis umbrella. Arcadis is on a mission to empower our projects and our clients with the
data-driven insights they need to navigate today's challenges and address tomorrow's uncertainties with
confidence and agility. Collectively, Arcadis brings an enhanced commitment to supporting infrastructure
developments and digital transformation across every industry in which we operate. To meet this
demand Arcadis has created a unique range of Digital Product and Services.
The Arcadis services for broadband development projects is branded as “Woven” with the intention that
we provide the solutions for broadband networks to become the “digital fabric of the community.”
Woven was founded from decades of consulting experience in developing community networks. Woven’s
services and technology platform is a cradle to grave solution for community broadband networks.
Using the world’s best demand aggregation tools, open-access networking, and automated service
provisioning, combined with fiber, and network asset management solutions, Woven establishes
connected communities and assists with maintaining and managing all aspects of broadband
investments. The Arcadis Woven solution mitigates risks, drives increased network utilization, and
enhances the value of broadband assets.
Plenary is North America’s leading developer, equity investor, and asset manager of complex and critical
public infrastructure assets, specializing in public-private partnerships (“P3”). Since its inception in 2005,
Plenary has achieved unrivalled success in North America, closing, managing, and investing in 60
infrastructure projects worth over $15 billion. Plenary’s approach is centered on value-driven solutions,
applying lessons learned from across our portfolio and balancing proven approaches with new and
creative ideas that provide the best long-term performance outcomes for our public sector partners.
Through long-term active, hands-on management, Plenary adopts a holistic approach and embraces the
financing, planning, design, and construction, commercialization, and ongoing management and
operation of each project (as applicable). Notably, over the past three years, Plenary was awarded both
first two long-term fiber optic middle-mile operations, maintenance, and commercialization (“OMC”)
contracts that have come to market in North America. Located in North Carolina and Pennsylvania, each
of these networks is publicly owned, with the Plenary-led team responsible for core network operations
and maintenance, as well as equity-funded capital expansion to support revenue generation.
Importantly, both of these middle-mile projects will support last mile connectivity to unserved and
underserved areas. As such, Plenary is directly responsible for managing an interdisciplinary team of
contractors and operators, understands the business model and requirements of retail service providers,
and has a proven track record of assessing fiber network capital investment decisions and deploying its
own equity capital to support growth and generate revenues that are shared with its public sector
partners.
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More recently, Plenary has been awarded three FTTH connectivity projects: (1) West Hollywood, CA; (2)
Destination Crenshaw development district in Los Angeles, CA; and (3) Centennial, CO. Each of these
projects involves a public sector client that is looking to utilize a P3 framework to deliver new fiber
networks that will expand and improve telecommunications services for households and businesses.
Plenary, as the lead developer and sole equity provider, is working collaboratively with the public
stakeholders and currently developing the technical, commercial, and financial elements of the projects
with a view to enter into a long-term P3 project agreement in 2024.
Key Findings
After reviewing the respondent ’s proposal and responses to the RFEI questions, the decision was made
to conduct a 30-minute interview with the respondent. The following are the questions and key findings
from the respondent ’s interview.
a. Can you provide us with more information on your business plan?
• Public-private-partnership (P3) business plan
• Ultimately a city-owned network – including the middle-mile municipal ring and the last-mile
connections to every premise
• Network will be a long-term asset for the city
• Propose to use a design-build-finance-operate-maintain model
• Full turnkey implementation, including operating it over time
• Provide whatever remaining financing that does not come from the public sector
• Operate on an open access basis
• Over time multiple service providers would operate on the network – they would be selling
services to end user customers (residents and businesses)
• Charge a wholesale price to the service providers for access to the network – they would then
sell services to the end users
• Recoup their capital investment out of the wholesale pricing on the network for a preset
period time – up for negotiation
• Maximize the amount that can be done with private financing
• Presuming that the municipal ring will most likely be publicly funded
• Remainder of the funding based on a feasibility analysis that is part of the next steps from the
city such as an RFP, etc.
• Response to RFP will provide more costs and market analysis
• Flexible on what the model looks like
• How much of the capital comes from what sources is subject to market dynamics
b. Do you expect to rely on Federal Grants (BEAD or others) to partially fund this project.
• Not necessarily reliant on state or federal grants
• Respondent’s public sector grant identification/application/funding/administration team will
be involved
• Consulting to other clients in the California market on grant funding applications and use of
grants
• Know the California environment in terms of what is available
• Willing to dig deep and identify all the possible grants
• Can bring the expertise in term of the network planning stage and apply it as early as possible
to ensure grants are maximized
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c. What density and percentage of the market do you need to make for a successful project?
• Preference is to do a citywide ubiquitous build
• Feed costs and revenue data into their model and then there may be a requirement that
comes out of that for city funding or anchor tenant payments from the city
• If there are some high costs areas, then have a conversation with the city about how those
areas get covered rather than setting a density requirement
• Target a 40% to 50% take rate for a successful project – feasible on an open access project due
to more than one service provider – need more competitive analysis on this market to
determine if that is achievable
d. Are you requesting any revenue guarantees?
• Determine what is required through a feasibility analysis
• Discuss what form that would take whether there is city, state, or federal funding as a partial
contribution to the construction
• Explore ongoing payments that could be framed as a revenue guarantee, also known as an
anchor tenant payment, if the city has its own uses of the network, such as interconnecting its
facilities and/or smart city types of services
• Contribution over time – common way to finance – finance the entire project upfront then
receive city payments over time
• Model often does require some contribution from the public sector
• Benefits that go with that – it would be a city-owned network
• Arcadis would have a right to operate it over time – at the end of that period of time it is
handed back to the city – city entitled to all the revenues from it
• Along the way explore a revenue sharing structure
• If the network is successful more quickly than there could be some sharing of the upside
revenue
e. Elaborate on what you would need from the City, i.e. revenue guarantees, free leasing space,
ordinances to be passed, etc.
• In-kind assets such as use of city space for central office locations for equipment
• Access to public right-of-way
• Streamlined permitting process
f. Elaborate on your financing.
• Base assumption is that Arcadis’ capital investment partner, Plenary has the capability to
provide all of the financing as equity from Arcadis sources, which is the primary approach to
project
• Explore in parallel bond issuance or other forms of debt, if that is more cost effective, which
depends on market conditions, so they do not rely on this
g. Can you outline your marketing plan i.e. pre-registration, zone launch schedule, service is
available?
• Do not have a detailed marketing plan at this point
• Plan to perform a community survey of residents and businesses to understand needs, where
those needs are, and willingness to procure services
• Plan to perform a detailed construction cost estimate and schedule
• Plan to pursue proposals from multiple construction contractors
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• Overlay the survey results and construction schedule to determine where construction may be
able to happen quickly and where demand is the highest
• Create construction zones for the city
• Turn the zones up sequentially to try to bring some revenue onto the network before it is fully
completed
• Software partner COS Systems provides a system that focuses on online marketing, pre-
registration, fiber zone launch, social media engagement, etc.
• System can be used to highlight where demand is the highest and where the build schedule
can be adjusted to meet community demands
• Uses boots on the ground including door knockers, as well as other approaches
h. Can you provide your micro-trench design specs / architecture for Palm Desert to review?
• Willing to provide micro-trench design specs
• Sensitive to not degrading the roadbed or pavement through the process of micro-trenching
• Proposing the use of micro-trenching to accelerate the construction process
• Ultimately the network is a city asset, so the city needs to be comfortable with the micro-
trenching approach
• Open to modifications of the micro-trench design specifications
i. In your response, you talked about setting up 2 core Points of Presence (POPs) on City property
and they would negotiate connecting these onto other existing service provider’s fiber networks.
• Typical design to provide high reliability and survivability
• Fiber rings interconnecting the POPs
• Carriers connect to each of the POPs for backhaul to the internet
• Strategically located on, in, or adjacent to city property
• POPs will be owned by the city
• City will be involved in getting long term agreement to get connectivity to the POPs and the
facilities connected to them
j. Will you commit to a Service Level Agreement (SLA) of 5 - 9s of reliability (99.999%) for enterprise
service and 4 – 9s of reliability (99.99%) for residential service?
• Understands enterprise requirements of 99.999% reliability
• Ring designs allows for this level of reliability depending upon where the enterprise client is
located
• Diverse fiber routes in the design makes it possible to bring enterprise clients back into each
POP, which leads to meeting enterprise service levels
• Design for residential service is industry standard
• Confident in being able to achieve 99.99% reliability for residential service when measured
over an entire subscriber base
• Design does not include redundancy down to the individual subscriber connection at the
residential level – it is not cost effective
• Residential service level ranges from a four-hour business day response to a next business day
response depending upon the level of service the residential customer is subscribing to - this is
negotiable
• Service levels are a direct result of the design and costs of the network – willing to work with
the city on determining service levels
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k. What is your service outage Mean-Time-To-Repair (MTTR) expectation for the fiber network
(using a micro-trench design)?
• Processes designed to support four-hour response to repair
• Seven days a week by 24-hours a day response
l. Will you have a fiber restoration team in the market, or do you plan on sub-contracting that out?
• Will have a local fiber restoration team in the market
• Could be subcontracted and/or utilize their own employees
• Determined by what the base load is in the community in the long term
• Usually, a blend of both to ensure they are an efficient network operator and have the right
number of employees
m. Who are the service providers in Palm Desert, you expect to work with under the Open Access
model?
• Too early to reach out to ISPs in the market
• Performed a scan to determine which ISPs are in the market and what the competition could
look like
• Model allows the network owner (City) to choose who they would like to be the service
providers on the network
• Set up a stable of service providers
• Bring service providers from other areas
• Three service providers are willing to come onto the network and are working in the California
market and are part of their stable of service providers that are working near the community
• Intend to bring availability to any providers in the area that are interested in being on the
network
• Offer the same business model pricing to all providers
• Transparency to all the providers is extremely important
• Open access network encourages competition
• Minimum of three service providers leads to a successful open access network environment
• Best for the network to have as many providers as possible come onto the network
• Six competitors on the network seems to be where most networks end up in a mature steady
state environment
• Will bring letters of intent to the table from the three providers as part of the RFP process
n. Do you plan on deploying the end point equipment and the provider’s equipment?
• Once the drop connection to the home is done the end point equipment is deployed at initial
service turn up
• Need for ongoing field technician visits to do service configuration changes is greatly
minimized beyond the initial construction phase
• Service delivery and self-serve models are driven off of an online web portal
• Residential subscribers can activate/deactivate/change/cancel/order service at their
convenience
• Sensitive to subscriber experience based on how well or poor Wi-Fi works in their homes
• Tuned into providing the best subscriber experience
• Ensuring that the right in-home experience is achieved using the equipment
• Flexible regarding deployment configuration
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• Work closely with the retail providers in terms of the actual deployment configuration that will
work for the providers, as well as the network owners and operators
o. How many local support staff do you expect will be in the area for service outage support after
the deployment contractors leave?
• Local support staff are key to operating efficiently
• Choosing a number right now is a bit premature
• See the value in terms of having local staff
Recommendation
Since it seems that the City has received interest from at least one viable partner, it is recommended
that the City complete a formal Request for Proposal (RFP) to identify Partner(s).
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Section 10: Recommendations
Background
The key outcomes from discussions with Council and staff, as well as the findings shared throughout this
Study contributed to the following recommendations. The recommendations are the next steps for the
City to consider. While the recommendations are listed in sequential order this does not necessarily
mean they need to be implemented in this order.
To fully realize the benefits of improved broadband service, some recommendations should be executed
concurrently, primarily due to the need for federal and/or state funding as a mechanism to drive project
deployment and the complicated nature of the potential Public Private Partnership.
Recommendations
Recommendation #1: Complete Formal Request for Proposal (RFP) to Identify Partner(S)
The RFEI process conducted as part of this study was useful to determine interested parties but does not
provide the City with enough details to fully determine a proposed partner nor the form of the
partnership. It is recommended that the City of Palm Desert conduct a formal RFP to identify and select
its partner(s) for the potential buildout.
Recommendation #2: Pursue Grant Funding
When applications are being accepted, the City of Palm Desert should apply for the California Last Mile
Federal Funding Account (FFA). This last-mile grant would increase the probability of the City facilitating
infrastructure deployment to meet the connectivity needs of un and underserved residents and
businesses.
In addition, when applications are being accepted, the City should consider future CASF Infrastructure
Account applications through the local Broadband Consortium representative to plan for future grant
award rounds.
Formal grant applications should be submitted as soon as practical to cover final engineering design of
the proposed city-owned network, as well as to fund the network construction.
It is also recommended that the selection of a private partner be timed to allow for coordination of
grant requests to assist with paying for last-mile connectivity. Ideally, a coordinated approach would
assure both the private sector and the City of availability of state funds to complete both the city-owned
fiber middle-mile ring network and the last-mile connections due to the interdependence of funding
sources for completion of the project.
Recommendation #3: Finalize Detail Designs
The first step to finalizing the design is to perform a field survey that will need to follow established
standards and design requirements. The intent of the field survey is to optimize the network and reduce
the overall cost. Field engineering must ensure that all possible routing alternatives are documented.
The final fiber network design can only be optimized by analyzing all possible connectivity routes, the
location of all service points and existing infrastructure.
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As a contiguous area is surveyed and posted, the actual fiber network is designed. Once Fielding is
completed, the design of the planned network Low-Level Design(s) (LLD) necessary to create associated
construction and permitting plan sets will need to be completed.
If the City decides to bring in a contractor to oversee the construction of the network, then the next step
is to create an RFP to select and manage the contractor. The RFP will include a comprehensive
construction specification manual, a complete design document, and a comprehensive bill of material.
Recommendation #4: Construct Network
Once a partner is identified and funding is secured, the next step will be to begin the deployment of
infrastructure to support broadband improvements. This step can be started as soon as engineering is
completed through the selection of a contractor with fiber optic deployment experience. The City
should work closely with its selected private sector partners to ensure that the network constructed
meets its required last-mile architecture.
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Appendix A: Broadband Service Models
Background
The following information is from a guide created by US Ignite in July of 2020 for communities
considering ways to expand broadband service. The guide, titled Broadband Models for Unserved and
Underserved Communities, includes models for fully private and fully public broadband networks, but
also covers a growing range of municipally enabled broadband strategies that rely on a combination of
public and private investment. It is intended to help communities understand how much capital is
needed for different models of deployment, what returns to expect, and finally how to avoid the most
common pitfalls.
Five Models
There are several models for fully private and fully public broadband networks, plus a growing range of
municipally enabled broadband strategies that rely on a combination of public and private investment.
Despite the many ways that municipalities have gone about implementing their broadband programs,
there are five main ways to do it, each requiring a different level of investment and engagement from
the municipality.
The five models are shown in the following chart.
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Four Key Factors
Generally, there are four key factors that municipalities should consider when making decisions on
which municipal broadband model to pursue:
Key Decision Factors Options Definition Impact on City’s Decision
Capital Availability
Good Access to Capital /
Funding
There are sufficient
financing sources to fund
a significant part of the
build
Good capital availability
should push the
municipality to own /
fund a larger part of the
project without bringing
in private ISPs
Poor Access to Capital /
Funding
There is limited capital /
funding availability, so
seeking commercial
capital will be required to
fund the build
Existing Infrastructure
Good Existing
Infrastructure /
Capabilities
There is an existing public
utility with conduit /
infrastructure and
operating capabilities
Presence of existing
infrastructure and/or
capabilities should push
the municipality to take
more control over the
project, which provides a
“bargaining” chip with
ISPs
Poor Existing
Infrastructure /
Capabilities
There is no existing utility
or there is, but
infrastructure and
operating capabilities are
poor
Partnership Options
Viable ISP Partner(s)
The municipality has
attractive demographics
or a good value
proposition for a third-
party ISP
Lack of viable ISP
partnerships limits the
municipality’s options to
those models that require
a significant involvement
from the ISP No Partner Options
The municipality is too
small, too remote, or
otherwise unattractive
for a third-party ISP
Objective and Risk
Tolerance
Community Benefit
Using the broadband
infrastructure to create
innovation and benefit
the community in non-
financial ways
Strong public support
towards anchoring the
project around
community benefits
should push the
municipality to seek more
control / ownership over
the infrastructure
Meeting Financial Goals
(High Risk) Using the broadband
infrastructure to meet
measurable financial
goals while maximizing
broadband availability
Focusing on meeting
financial goals / targets
should push the
municipality to more
predictable financial
models (e.g., third-party
driven)
Meeting Financial
Goals
(Low Risk)
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Decision Tree
Depending on where municipalities fall on the criteria for the four key factors, there may be a business
model that is a more optimal choice for them. To steer municipalities in the right direction the choices
have been distilled into the following decision tree that could help communities to develop the best
strategy.
Capital
Availability
Existing
Infrastructure
Partnership
Options
Objective and
Risk Tolerance Optimal Business Model
Good Access
to Capital /
Funding
Good Existing
Infrastructure
/ Capabilities
Viable ISP
Partner(s)
Community
Benefits
Full Municipal Broadband – maximizes
community benefits when capital /
infrastructure are available
Meeting
Financial Goals
Publicly-owned, Privately Serviced –
reduces risk when full control over
service not as important
No Partner
Options
Community
Benefits
Full Municipal Broadband – maximizes
community benefits when capital /
infrastructure are available
Meeting
Financial Goals
Full Municipal Broadband – is the only
option when no ISPs will partner
Limited
Existing
Infrastructure
/ Capabilities
Viable ISP
Partner(s)
Community
Benefits
Publicly-owned, Privately Serviced –
reduces risk in absence of operational
capabilities
Meeting
Financial
Goals, High
Risk
Publicly-owned, Privately Serviced –
maximizes return potential while
leveraging ISP partnership
Meeting
Financial
Goals, Low
Risk
Private Developer Open Access – limits
risk to the municipality but maximizes
chances of success w/ISP partner
No Partner
Options
Community
Benefits Full Municipal Broadband – is the only
option when no ISPs will partner but
there’s capital Meeting
Financial Goals
Limited Access
to Capital /
Funding
Good Existing
Infrastructure
/ Capabilities
Does not matter
Hybrid Ownership – hybrid models are
optimal when capital is limited but
there’s existing infrastructure,
regardless of other factors
Limited
Existing
Infrastructure
/ Capabilities
Viable ISP
Partner(s)
Community
Benefits
Private Developer Open Access –
maximizes municipal control in light
of limited funding / infrastructure
Meeting
Financial Goals
Full Private Broadband – maximizes
chances of success while ensuring
goals are met
No Partner
Options
Does not
matter
Limited options, have to go back and seek
more capital, likely government funding /
subsidies
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While a decision tree like this may suggest that picking a business model is easy, it is quite the contrary.
A decision tree is a good “rule of thumb”; however, there are unique circumstances that each
municipality faces and doing a thorough diligence across all potential options should always be the
starting point. To do that analysis accurately, a municipality first needs to understand how much capital
is required and what the financial returns of the program may be.
Financial Considerations
Municipal broadband programs are long-term investments, and these projects can take up to five to ten
years to complete. Fiber is a resilient and future-proof piece of telecom infrastructure, but it is also
expensive to deploy. This means investment in fiber is hardly a “no-brainer” for all municipalities. Those
looking to invest to close the digital divide in their communities should prepare for payback periods of
15+ years, particularly across smaller and/or rural communities. These paybacks have often deterred
interest from the private sector and make careful planning and business analysis critically important for
any municipal broadband program.
The capital expenditures (CAPEX) associated with building a fiber-to-the-home network include a range
of fixed and variable costs. These include the cost of laying the initial network infrastructure, which
could range from $500 to $4,000 per home largely depending on the density of the municipality, as well
incremental costs to connect each customer. Costs to connect each customer can include the cable drop
to the home, the modem at the home, and the labor cost of the installation. Those could add up to
$1,000 for each incremental customer. All-in, capital requirements for a broadband program in a
municipality with 100,000 residents could end up around $150M.
Operating costs can vary greatly as well, and those depend on the experience and efficiency of the
broadband provider, number of synergies with the core municipal staff (if any), and types of services
delivered to the customers. Municipalities that want or need to offer TV to its residents must prepare
for lower margins given high and rising content costs (although this can be mitigated with Over-The-Top
offers). Most often municipalities budget between $40 and $100 of OPEX monthly for each residential
subscriber they sign up.
Not all municipalities will have to cover all these costs. Those that bring in a private ISP or developer to
help service the customers and/or build the network can split operating costs, capital costs, or both with
that third party. In return they would most typically offer free or low-cost access to municipal
infrastructure, fixed payments, or some variable revenue share typically tied to the number of
subscribers in the municipal broadband program.
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In addition to impacting share of required costs, the business model also dictates the amount of revenue
that municipalities can generate from the program. On the high-end, municipalities that deploy and
operate Full Municipal Broadband themselves could generate direct revenues of up to $140 per
residential customer every month, without considering additional revenue streams from businesses and
other anchor institutions. On the low-end, municipalities that choose Full Private Broadband models
would generate limited revenues, aside from permitting and tax fees, which could even be waived in
many cases to entice private engagement.
It should be clear by the broad ranges quoted above that the financial performance varies greatly not
only by the model, but even from municipality to municipality. Using an “average” set of assumptions
for a municipality of 100K residents, typical Investment Rate of Returns (IRRs) can be between 9% and
16% for Models 1 and 2, with a significant amount of capital required but also significant cash flow
potential once the program is mature. Municipalities that are not ready to take on this amount of risk
could pursue hybrid models or fully give up network ownership to third parties – those investments will
be relatively low risk, result in high IRRs but also (typically) more limited cash flow upside.
While financial performance varies from municipality to municipality, the inability to budget
appropriately is a main reason some programs fail, reinforcing the need to develop a detailed business
case as the first step in any municipality’s implementation plan.
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Four Key Challenges
There are four key challenges common to most municipalities pursuing a municipal broadband program:
in addition to poor budgeting, some choose the wrong business model due to a “one-size-fits-all”
mentality, struggle to secure adequate funding, or fail to maximize their program’s value.
1. Budgeting: Detailed budgeting is critical to success. A detailed analysis— including designing a full
network plan —is essential during the planning phase. It is also important not to overlook any major
sources of costs. Those most typically include labor for delivering the service, managing, and
maintaining the network, but also costs to support any debt and interest payments. As costs
increase, it is also important to be clear-eyed and consider private sector involvement; many private
ISPs have much lower operating costs due to their scale and experience, while having private
developers build and operate the network can significantly reduce the cost associated with network
operations and maintenance.
2. Funding: Especially when the total budget is high, securing the right funding may become a
roadblock. More “traditional” funding options include soliciting contributions from anchor
institutions, selling bonds, enlisting local utility involvement, securing federal and state grants, or
asking private partners to co-fund the builds. When those are not an option and/or are not enough,
municipalities often get creative. For example, some had their residents contribute money to the
program, by either paying for several months of service upfront, or pooling money across
neighborhoods and buying bonds from the municipality. Creative approaches like this may work for
certain municipalities when securing more traditional funding is not an option.
3. Diligence: Even when budgets are finalized and capital secured, it is also tempting to just copy a
“success story” from another municipality. Skipping the diligence on evaluating which business
model to pursue, however, can lead municipalities down the wrong path. There are numerous
examples of municipalities ultimately having to pivot from the initially selected business model
because they “dove-in” too quickly.
4. Related Benefits: Lastly, when the path is chosen and business model is selected, municipalities
should think holistically about how else they can use the program to serve their communities and
ensure the network has the architecture to support that plan. For example, while residential service
is often the primary motivation, municipalities should not forget about enabling internet access to
the commercial sector, which can spur job and value creation. Additionally, while few municipalities
have thus far used their municipal fiber to enable “Smart City” solutions, these solutions can spread
digital literacy to more residents. And, while the municipality’s focus has been on fiber services thus
far, there are also scenarios where mobile or fixed wireless broadband are more appropriate for last
mile connectivity. Communities should consider where fiber investment is valuable and how it can
be tied to other network technologies as needed.
While these challenges are common regardless of the selected business model, Municipalities pursuing
models with more municipal involvement are more prone to many of these. To maximize chances of
success, special attention should be paid to budgeting and costing, and revenue generation should be
prioritized and accelerated to the extent possible. For example, targeting the densest business and
residential areas first or starting with commercial-only services is one way to generate a steady inflow of
cash to help cover program costs.
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Working with the private sector avoids many of the budgeting and costing issues mentioned above, but
it brings about a different set of challenges. First, attracting the attention of private ISPs, particularly for
smaller municipalities, could be a challenge. Municipalities should be persistent in soliciting private
engagement and think creatively about how to entice private cooperation. For example, streamlining
permitting and rights-of-way, enabling access to backhaul and middle mile infrastructure (if such exists
or can be leased), becoming the anchor institution for the private ISP, or co-sponsoring an “Open
Access” network and enlisting a private developer to sign up the ISPs (Model #4) all can improve chances
of finding a partner. Once a partner is identified, it is also important to clearly define rules and goals for
the program to maintain some degree of control and ensure municipal objectives are met. This is
especially true for the “Open Access” programs which require participation of a private developer and
one or several ISP partners. These models have been relatively rare in the U.S., but “Open Access” has
proven successful in Europe and should be considered as an option for any municipality considering a
municipal broadband program today, particularly as it strikes a good balance between providing a
municipality the control it needs while also de-risking the investment and operations.
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Appendix B: Smart Application Technology Plan
Background
Palm Desert is analyzing its options to position itself for future “Smart City” applications. The City’s goal
is to look at what it might take to establish “future-proof” solutions that deliver a premium operational
experience for guests and residents, ideally while creating long-term revenue streams for the City of
Palm Desert to help offset, at least in part, the costs of implementing these initiatives.
This analysis includes use cases, an overview of the available and emerging technologies, provides a
high-level overview of smart cities and summarizes both findings and recommendations.
Within the scope of this analysis, the smart city-related tasks included:
Reviewing the current technology base
Providing recommendations on how the City can increase access to smart services for all citizens.
A prioritized overview of the types of smart city applications and infrastructure that could be most
impactful.
Performing a high-level cost-benefit assessment of various infrastructure and smart application
options, and exploring in more depth the prioritized list of Smart City technologies identified
A Future-Proofed Technology Base for the City of Palm Desert
The development of the technology base is founded upon the unique aspects of wireline (fiber optic)
and particularly, gigabit wireless (5G) networks that make it perfectly suited to help advance many of
the stated goals of the City of Palm Desert. While deeper exploration of deep technical foundations will
be considered, at its core, 5G is more than just a faster wireless network. This technology is the new
standard that is effectively replacing all existing fixed and wireless networks. Likewise, expanding the
city’s fiber optic backbone to support both gigabit 5G and wireline connections is a crucial foundational
element of this smart city plan. Without a robust telecommunications backbone, achieving many of
these benefits may become cost prohibitive.
The Case for Smart City Technologies
While there is no universally accepted definition of smart cities, the term is most often associated with a
community vision to integrate data and technology to improve the efficiency of services and manage
city assets.
In other words, properly applied, a smart city of the future can, for example, instantly sense human
behavior and guide disabled pedestrians, trigger the need for refuse collection, amplify emergency
services, and protect people against environmental and health threats. These technologies can also
help address unmet needs in public safety, enhance traffic efficiency, assistive technologies especially
considering “hyper-local” factors such as outdoor work in the summer heat, and small-scale
environmental sensing.
With the desire to advance a smart city program in mind, three critical, common elements often
comprise these initiatives:
1. Sensing and data collection
2. Real-time data analysis and automation
3. Real-time service delivery modifications or “action” resulting from the sensing and analysis of data.
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At the risk of over-simplifying this concept, the graphic below highlights the flow of data from sensing
(via a technology base) through analysis (via dashboarding and applications) to achieving action for the
community’s benefit:
Perhaps even simpler, this graphic can be used illustrate this concept:
Popular Smart City Application Categories
Nationwide, there are dozens of smart city applications in use currently. Although some cities are
deploying applications related to health care, higher education, and non-municipal services, there are
generally five broad topical areas which may be of specific interest to Palm Desert. While some are
inter-related, these five categories are:
1. Security and “Movement analytics” to help track who – and what are moving through the city.
2. Energy – initiatives to reduce the greenhouse gas (GHG) footprint of their buildings and vehicles.
3. Utilities – reducing costs and energy consumption while enhancing municipal utility service delivery.
4. Transportation – travel related, including fleet electrification, connected vehicle infrastructure,
congestion mitigation, mass transit, micro-mobility.
5. Navigation, Tourism, Wayfinding and Citizen Engagement (public awareness and acceptance)
Execution Essentials
Common to all these categories, and essential to program execution is a robust telecommunications
backbone as a foundation to enable all the above categories. In most cases, gigabit wireless and
symmetrical wireline (fiber optic) infrastructure is regarded as crucial.
Likewise operating a successful smart city program execution will involve:
• Smart & Big Data Synthesis from a wide variety of sources.
• Data Visualization (situational awareness).
• Leadership & Vision (action and execution in real time in response to the above).
In short, the intent is to forge a livable, safe, and inclusive Palm Desert community by using technologies
built on advances in a telecommunications backbone that promote privacy and security while balancing
community-defined benefits1.
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Floods, Fires and Earthquakes
Flooding and disruptions to the city’s infrastructure resulting from the mid-August 2023 Hurricane
Hilary, as well as other emergency operations often serve to highlight the potential value realize by
engaging these technologies. In addition to flooding and earthquakes, one emerging threat is now more
commonly related to wildland fires which in some cases, including Paradise, California; Superior,
Louisville, and Colorado Springs, Colorado and Lahaina, Maui, Hawaii have, combined, consumed more
than 2,000 homes in largely suburban settings. In these situations, high winds have ignited flammable
yard materials and residential rooftops and overwhelmed local fire departments’ ability to respond.
Unfortunately, it seems that short-notice mass evacuations have, in some cities, caused critical
evacuation routes to get clogged with fleeing residents uncertain of safe routes, overwhelming the
capacity of the transportation networks to accommodate tens of thousands of people and vehicles. In
many of those situations, smart city technologies could have reduced or mitigated the potential tragic
end results and are worth a high-level consideration for Palm Desert.
Emerging Technologies
Ideally, taking a comprehensive approach to these technologies can leverage advances in
wireless/optical communications, edge/cloud computing, situational awareness, privacy, and security,
while balancing public sphere data collection requirements with community-defined benefits. That is,
emphasis should be placed on delivering innovations across five areas4:
1. “Wi-Edge” – the integration of high-speed wireless-optical networking, high-performance edge-
cloud computing, and software-defined radios and networking.
2. Situational Awareness – fine-scale, real-time observation, modeling, and forecasting of human
behavior over variable time horizons at streetscape scales.
3. Security, Privacy, and Fairness – addressing socio-technical barriers of privacy and security within
locally intelligent streetscapes, yielding a software pipeline for streetscape applications that gives
community-configurable guarantees of privacy, fairness, and transparency.
4. Public Interest Technology – understanding how smart city technologies, applications, and
security/privacy policies impact the social landscape and promote regional economic development.
5. Streetscape Applications – incorporating the distinct ways in which individual the Palm Desert
community reads, interprets, and responds to local intelligence within the design process to
optimize community-specific benefits.
One Capital Investment – Multiple Solutions
The answer to meeting the City of Palm Desert’s current and future needs is predicated on a platform
that enables the City of Palm Desert to:
o Build a Shared Infrastructure Network consisting of wireless transmitter sites, often as a network of
small poles, known as “masts,” connected to a city fiber optic backbone.
o Encourage public applications and partnering with the private sector, largely local developers, HOAs,
public agencies/utilities and the major telecommunications carriers to share infrastructure and if
necessary, be able to rent telecommunications assets such as conduits and fiber strands, masts,
space and deploy on public infrastructure.
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o Create a technology base upon which carriers deploying their fiber wireline and wireless 5G
infrastructure will be able to support the requested and futuristic use cases.
Smart City Remote Sensing – Data Sources
With the demand for smart applications increasing, the city would be well served to consider several
possibilities for expanding both the sources of data and the uses, or application of that data to better
serve the community.
Today, there are dozens of smart technology systems in use by various cities – and to varying degrees.
Many of these systems involve proprietary technologies, require on-going fees or revenue sharing with
vendors and can be very specific in their use and application. Many of these smart city applications may
be easy to implement in “full service” cities, however, in Palm Desert, many of these are likely to involve
multiple agencies, HOA’s and may be both expensive and difficult to implement.
With respect to Palm Desert specifically, there are several smart city applications that may be worth
consideration. As noted above this assessment will offer both a high-level cost-benefit assessment of
various infrastructure and smart application options, and a prioritized list of Smart Community
technologies identified. Before offering either of these assessments, a brief overview of the
technologies and data sources needed to support these smart city applications may be worth offering to
better under the applications and possibilities, as noted:
Available Data Sources – As noted above, remote sensing and data collection is the first of three crucial,
“common elements” to lay the foundation for successful smart city applications. In Palm Desert, there
are a few existing – or potential sources of data that could be useful for future smart applications which
include:
o Cell phone data aggregation (“People as Sensors” and “footfall” data) – This is data already being
collected via individual cell phones and may easily be shared with Palm Desert, usually for modest
fees from certain cellular providers and in some cases, third-party data aggregators and
telecommunications companies. This data relies on the cellular devices GPS chips and requires the
cellular companies to calculate position by a combination of GPS data and/or triangulation from a
minimum of three cell tower reception to pinpoint where the device is. Based on the need and end
users, often Personally Identifiable Information (PII) is stripped out to ensure a level of privacy and,
if desired, anonymity.
o Cellular Device Bluetooth and Wi-Fi based systems - This data source requires cell phone owners to
have their phones’ Bluetooth and/or Wi-Fi systems switched on. While this requirement reduces
the number of devices available, the resolution of the data is usually much better than available
from cell towers and GPS systems. From this source, the raw data is available for no charge, but the
analytics is usually done on a fee basis by third-party providers. The value of this data, for example,
includes “footfall” data and travel-time analytics (e.g., BlueTOAD and other Vehicle-to-
Infrastructure, V2I systems). Is usually available free of charge. which provide actionable Origin &
Destination (O&D) data,
o Overhead / Microwave / Optical detection systems - These data sources involve traffic-corridor-
related sensors, usually fed into traffic management systems that often require some level staffing
(see below).
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Typical Traffic Management Center for a city of about 50,000 population
Other agencies, notably, Caltrans has sensors using overhead microwave detectors, in-pavement
“hockey pucks,” “induction” loops and even optical detection on many of their major corridors to
detect volumes and speeds of traffic. Additional detectors in use include Weigh-in-motion (“WIM”)
to ensure truck weights are within standards, and windshield toll transponder devices.
Further, many law enforcement agencies are also deploying License Plate Reading (LPR)
technologies to help in spotting and tracking, for example, stolen vehicles. All these technologies
are gathered and held by the agencies and may or may not be available to Palm Desert, depending
on the uses and levels of privacy required.
o Connected Vehicle-to-Infrastructure (CV2I) systems.
• GM OnStar - Many car manufacturers are now collecting, and even selling data provided by
their own on-board systems. For example, General Motors Vehicles offers OnStar as an option
for many owners www.onstar.com/ , and then aggregates and makes much of the data available
for a fee.
Since older GM vehicles were using 2G and 3G (CDMA) cellular technology, the company is
“sunsetting” the older systems. Still, their C-V2I data is available for cars newer than 2015
model years and is used by, for example, WAZE to help determine points of traffic congestion
for its users.
• Audi TLI - Perhaps one of the most interesting C-V2I systems is the Audi Traffic Light Information
(“TLI”) system. This system is proprietary to Audi vehicles and connects an on-board display to a
local governments’ traffic signal master. This system in effect allows the vehicle to not only
predict when a certain traffic will change indication from red to green but calculate the speed
necessary to flow through the intersection without slowing down.
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According to Audi (Audi Newsroom - audiusa.com) the system is operational in the Palm Desert
area at the I-10/Cook, Jackson, and Jefferson interchanges. While the traffic signal master
system is being upgraded by CVAG, this could easily be connected to the system, improving
traffic flow in the region, including all of Palm Desert’s traffic signals for those driving Audi
vehicles. Again, although the system is limited to Audi vehicles, it has been shown adding a
single “smart” V2I vehicle into a platoon of non-connected vehicles can “smoothen” the flow
overall along smart corridors - since a single Audi can limit the speeds of, say, a dozen cars
behind it approaching the same intersection.
o Aggregated traffic data – this is data publicly available by various vendors including Google
Maps/WAZE, TomTom, Apple Maps, etc. While this data is used by motorists, many municipalities
are finding this data can easily be used, for example, by their traffic operations staff to determine
the location of various real-time traffic jams along major corridors. These technicians can then
adjust traffic signal timing according to pre-planned “scenarios” based on the location of the lane
restriction or traffic incident. One good low-cost example is the city of Amsterdam (population
900,000) monitors these free data sources along with their own sophisticated technology 24/7 to
predict and mitigate traffic jams.
Amsterdam’s Traffic Operations Center – Note four screens visualize free (e.g., Google Maps) public-sourced traffic data blended
with surveillance cameras and municipal traffic signal data. (photo by Dave Zelenok, September 2023)
o Fiber Sensing - is a form of acoustic detection requiring two dedicated fiber strands. This
technology is described in detail below.
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o Big Data Sources – often used in conjunction with the Internet of Things (IoT), this term refers in
general to aggregating very large, often disparate data sources and analyzing them for the benefit of
specific users. For example, analyzing utility consumption data may be used to predict future traffic
and pedestrian movements. Since most of the applications are offered via specific vendors for their
off-the-shelf products, Palm Desert may find requests for new proprietary applications have their
origins based on “big data” sources and the city would be well served to understand the sources of
the data before engaging systems.
o Small Data Sources – many of these technologies rely on dedicated individual sensors, for example
in irrigated park areas or even inside small sidewalk refuse cans.
Top 20 Smart Application Technologies
While far from complete, and acknowledging that many of these applications will not be easy to deploy
in Palm Desert, they are worth mentioning, if only to provide a high-level overview of the possibilities of
robust detection, analysis, and actionable capabilities:
1. Traffic congestion and transportation related incidents
a. Planned construction zone lane restriction notification (“tomorrow’s cone zones”).
b. Unplanned incident and debris notification.
c. Parametrically adaptive alternative traffic management controllers including pedestrian,
cycling, transit and vehicular detection and management systems.
2. Fiber Sensing / leak detection - this emerging technology works by measuring small data changes in
an optical fiber strand when it encounters vibration, strain, or temperature changes. It can often be
deployed for about $20,000 to continuously monitor vehicle movement in a street, human traffic
near high security areas, digging activity, seismic activity, the health of structures and assets,
temperatures, liquid and gas leaks in pipes, and to monitor smart infrastructure.
3. Air quality sensors (e.g., Ozone/carbon monoxide, indicating health concerns or smoke).
4. Water Quantity and Quality Management
a. Flooding (water quantity management systems).
b. Stormwater and effluent management.
c. Sensors in rain gardens and detention/retention/irrigation/recycling systems to manage
stormwater flows and help enhance stormwater quality.
5. Security including:
a. Acoustics (e.g., gunshots, used by law enforcement).
b. Crowds (event management and law enforcement).
c. Noise.
6. Weather events (wind, rain, fog, dust, etc.)
7. Earthquakes – instant notification of seismically damaged municipal infrastructure.
8. Accident avoidance – such as red-light running sensors triggering “all red” indications on traffic
signal until vehicle clears.
9. Curb Management (Uber, Lyft, micro-mobility such as scooters and bike share pickup zones) on
“complete streets”.
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10. Parking Management (free space, overtime, obstructed) - Although Palm Desert does not have an
active parking management system, future use cases might employ vacant parking space detectors
and integrated parking kiosks and variable message signage/cell phone applications to inform the
public of the availability and location of parking.
11. Pedestrian Movement Detection (aka, “footfall” on El Paseo and during events).
12. Environmental and energy management (active/passive heating/cooling and irrigation) system
management and monitoring.
13. Advanced Operational Communications including:
a. Manual and automated system coordination with Caltrans, Sunline Transit and Paratransit, and
emergency responders.
b. Citizen Broadband Radio Service (CBRS) – expanding the “cutting edge” application of CBRS
technology in the Coachella Valley educational agencies (e.g., School Districts) to shared public
and municipal uses by Palm Desert.
c. Gigabit-speed Wi-Fi, and millimeter wave (“True 5G”) mesh transmitters integrated into Palm
Desert’s fiber optic backbone (incorporating aesthetics, health, and safe monitored RF levels).
14. Variable Smart Lighting and centrally controlled RF transmitter sites and sensing platforms
including:
a. Brightening and dimming features.
b. Knockdown and outage notification.
c. Note: using the streetlight masts would require municipalizing the SCE streetlights throughout
Palm Desert, they could be acquired through the next “Southern California Edison Community
Choice Aggregation” (SCE CCA) cycle. The ROIs from the numerous Riverside County and
Southern California cities participating in the 2020 cycle were in the 5–10-year range.
15. Major event management - adjusting pedestrian flows and directing large groups, for example to
locations where queues are short during events.
16. Irrigation control systems through advanced metering infrastructure (AMI) of Coachella Water
District infrastructure.
17. Public Refuse containers that notify staff on cue.
18. Micro-grids and shared energy systems – inter-connected solar panels, renewable energy or wind-
powered devices using demand-side and supply-side management technologies, load-sharing
energy during peak periods in coordination with Southern California Edison (SCE) and the California
Public Utility Commission (CPUC) $200MM Microgrid Incentive Program (MIP).
19. Coordinated payment systems for rideshare, bike share affording “seamless” personal micro-
transportation and “last mile” logistics and including features for Sunline transit, micro-
transportation (scooters/bikeshare) and rideshare operators.
20. Wayfinding, variable message signing and interpretive kiosks/displays at key “touchpoints” to guide
and educate along with integrated-area wide audio and video system(s) with the ability to control
each speaker/displays in high density pedestrian areas like the El Paseo.
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Limiting Factors
With respect specifically to Palm Desert, the city’s streetscapes – including urban, public neighborhood
and private gated/HOA streets, sidewalks, and public spaces are at the center of public and commercial
activities. Still, some might argue that the area may be facing long-term challenges that threaten
livability, safety, and inclusion. Clearly, Palm Desert’s public spaces is where smart technologies and
data sensing, analysis can be harnessed for actions resulting in achieving public good.
Beyond this “lofty” statement though is the reality that any smart city plan must contain elements which
are achievable, and measurable either quantifiably or subjectively.
Realistically, Palm Desert is unique in that its population is predictable, but highly variable, and its
summer environment presents specific challenges. Moreover, a significant portion of the infrastructure
within the city limits is controlled largely by its many Homeowners Associations (HOAs), each with its
own sets of neighborhood priorities and need for cost-benefit calculations on any smart technology
advancements. Further, the city government in Palm Desert is largely not responsible for many services
seen in other communities, notably K-12 education, health care, mass transit or public utilities are the
responsibility of other independent governing bodies and agencies, again with their own priorities.
Addressing the City of Palm Desert Requisite Use Cases
For Palm Desert, it’s important to note that the city provides limited services and coordinates heavily
with other agencies. For example, Sunline Transit Agency, Caltrans, Southern California Edison,
Coachella Valley Water District, SoCalGas all provide services to the public in Palm Desert.
Although each agency is responsible for their own operations, Palm Desert may wish to anticipate future
coordination strategies with any number of these entities to possibly improve service, enhance
sustainability programs or jointly share in specific future technologies. While Palm Desert should not be
expected to install systems at city’s full cost for the benefit of these agencies, future resource sharing
and smart city use cases may be worth consideration.
Recommendations
The following are the recommended top 5 prioritized smart application technologies for the City of Palm
Desert.
1 - Middle Mile Fiber Ring Core Network
Much of this Study details the costs and benefits of Palm Desert building a middle mile fiber ring core
network. Additional revenue for Palm Desert from fiber leasing can be highly lucrative but is highly
variable and is based on local demand. An in-depth exploration of current estimated costs is available in
Section 7, Preliminary Design and Costs of this report.
2 – Advanced Traffic Management systems
Transportation technologies are evolving at an unprecedented pace and will have profound effects.
Engineers and public officials must start preparing today for an inevitable, vastly different future. “Big
data,” high-speed communications, and transportation options such as autonomous vehicles and micro-
transit are just a few disruptive technologies that will affect how people live, work, and play.
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Although the primary impacts of these changes are becoming better understood, the secondary
consequences have been largely uncharted. Facing the largest modal shift seen since the invention of
the automobile, cities like Palm Desert should expect to be challenged to change the ways in which it
plans and develops its future roads, parking, transportation networks, and entire urban fabric.
For the past decade, industry has been researching and testing vehicles that can sense the environment
around them and communicate with other vehicles and infrastructure. The key to vehicle-to-vehicle
(V2V) and vehicle-to-infrastructure (V2I) communications is a robust communications network—which is
still somewhat lacking in Palm Desert.
While fiber-optic-based telecommunications are highly regarded for their speed (megabytes
downloaded per second) and reliability, their real value will come from their near-zero latency, or ability
to communicate in virtual real-time with the networks. Moreover, vehicles “platooning” in tightly
spaced and interconnected groups will require the ability to locate themselves and others to an accuracy
of less than perhaps three centimeters. This technology will require vehicles moving at 60 mph to
communicate with their networks in less than one millisecond, a speed which requires a fiber optic
backbone.
Many transportation futurists expect “totally managed systems,” interconnected systems often using
big data, will be able to reduce accidents and congestion by predicting and avoiding traffic jams—
changing traffic routes, speeds, and signal coordination in time to harmonize traffic flows.
In Palm Desert, for example, the Sunline mass transit system is now incorporating a state-of-the art,
real-time GPS-based bus location system using the General Transit Feed Specification (GTFS). This
advanced system broadcasts predicted arrival times and delays to passengers using, for example, Google
Maps for enhanced trip planning. This data would be relatively easy to incorporate into a dashboard
system or traffic signal master allowing, for example, traffic signal pre-emption or priority (e.g., holding
green indications at traffic signals for approaching Sunline busses) in Palm Desert.
Likewise, with a fiber optic-based Vehicle-to-Infrastructure system in Palm Desert, connected
Autonomous Vehicles (AVs) driving in platoons mere inches from each other may also reduce traffic
congestion and reduce the need to capacity improvement (e.g., road widening) projects since the
existing infrastructure would be able to handle the demand more efficiently. Similarly, car ownership
will likely decrease as people opt for different modes of transportation. These modal shifts will all drive
changes in the ways that Palm Desert will develop and plan its future infrastructure.
Technologies showing the most promise now include:
• Autonomous vehicles such as self-driving Teslas, with steering wheels. (Here today)
• Personal rapid transit systems. Driverless low-cost-per-mile vehicles on fixed guideways or
dedicated street networks in certain urban settings. (Here today)
• “Scootermania” - Shared, hyperlocal, micro-transportation providing “last half-mile” trips. (Here
today, often lacking regulation)
• Driverless cars. Vehicles and ride share systems without steering wheels (Emerging technologies).
• Transportation as a service in which people purchase only the transportation you need; car
ownership, driveways, wide streets, and three-car garages become unnecessary. (Coming soon)
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Regardless of the long-term modal shifts and technological changes, CVAG and Palm Desert now should
continue and expand their current efforts to develop their traffic management technologies. To that
end, building a middle mile fiber core ring, sensors and dashboards should all be elements of a
coordinated smart city strategy.
Traffic management center costs often involve substantial grant support from the state government
while benefits are often measured and predicted in terms of vehicle miles travelled (VMT) and
congestion delay hours and injury accidents avoided.
3 - Smart Kiosks
As Palm Desert continues to grow in population, it is important to help make information available to
not only new residents but to the city’s many visitors as well and smart kiosks may assist in enhancing
visitor experience. Often-used benefits include wayfinding for visitors, emergency notification, citizen
engagement, revenue streams through third party signage, economic development and promotion of
local events, attractions, and other visitor opportunities.
The concept is to bring relevant information in a self-service format to various locations around the city.
For example, on a college campus, smart kiosks could help students navigate attractions, keep track of
important updates, create personalized emergency alerts, and view third party information such as off-
campus restaurants. This concept can be applied to highly visited areas with the data being shared in a
variety of mobile phone applications as well.
Costs for these kiosks vary based on applications installed and hardware systems employed, but can
often be shared with, for example, retailers in exchange for highlighting their businesses.
4 - Smart Security Solutions
Improving security and safety in Palm Desert is an ongoing priority. An integrated safety and security
system in which public entities and private stakeholders work together is one smart security solution.
The idea is to proactively create a voluntary relationship with camera owners providing information
about cameras, the camera locations, and the area each camera covers. For cities with high-value retail,
such as El Paseo, concerned about deterring, for example “smash and grab” raids, these coordinated,
smart video systems have been shown to enhance the chances of both deterring and, if necessary,
apprehending suspects quickly.
For example, Project Green Light Detroit is a program in which the Detroit Police Department partnered
with eight gas stations to leverage real-time video surveillance to deter, identify and solve crime2. The
idea behind such a concept in Palm Desert, is to improve the community through partnerships aimed at
improving neighborhood safety, promoting the revitalization and growth of local businesses, and aiding
in the Riverside County Sherriff Department’s efforts in the fight against crime.
Since smart cameras can often be dual-purposed – for example, used by both law enforcement and
traffic managers, their costs can be shared and matching grant funds are often available, reducing the
city’s “out of pocket costs.” Benefits are likely to be subjective since it is difficult to quantify increased
economic development or a sense of security from reducing the likelihood of potential criminal activity.
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5- Pedestrian Movement Detection
Several technologies have been developed which can track an individual by, for example, detecting and
characterizing a specific cell phone identified by specific information tagged to its Bluetooth or Wi-Fi
being left on. The advent of 5G also presents the ability to detect and track individual phones with a
high degree of precision.
Known as Footfall, systems are now available to measure how many people enter a facility, or a geo-
fenced area, such as a major event, a shopping district or tourist area. As such, footfall analytics is one
method for counting people and developing insights from that information.
Footfall traffic data is developed in a variety of ways. For example, one popular method of collecting
footfall data about people and how they navigate relies on gathering data from Wi-Fi and Bluetooth-
enabled devices: smartphones, tablets, and laptops. These types of devices emit a ping while they try to
find a device or router they can connect to. Certain footfall analytic hardware can pick up these pings
and track pedestrians as they make their way through a defined area.
Monetization of footfall data
Footfall technology can measure a range of metrics, including unique vs. repeat customers, how many
people walk by stores without entering, time spent in stores, at traffic signals, bus stops, etc. and where
people tend to gravitate within a defined area. By counting footfall, businesses can identify, for
example, purchasing opportunities they have and crucially, by incorporating that with retail, marketing
and even sales data. This information in turn may assist merchants by offering “an edge” to help target
peak hours, convert browsers into customers and ultimately optimize business performance.
While the use of these technologies may have excellent applications – for example, in defining what
some now refer to as “Breadcrumbs” in which a pedestrian’s activity exact times may be tracked and
shared with others as an excellent and valuable feature. However, the information displayed may
present privacy concerns. As a result, a key policy discussion within Palm Desert may be worthwhile
about the extent to which PII - Personally Identifiable Information – should and may be used
with/without a pedestrian’s knowledge and consent.
By gaining a better understanding of in-store pedestrian/shopper movement, retailers can better
allocate staff throughout their stores. This can range from what time certain stores are busiest to which
areas of larger stores need more assistance. Creating a more efficient employee to customer balance
enhances the shopping experience as well as improving employee engagement and creates marketing
opportunities.
Limit Occupancy or Enforce Social Distancing
Crowd management technologies provide real-time headcounts of how many people are occupying
space at a given time and some retailers including Kroger (Ralph’s in California) use this technology.
Analyze Customer Behavior
Behavior analysis can indicate how much time individuals spend in specific locations, define popular foot
routes, and identify long wait times or queues. Understanding pedestrian behavior can assist with
product placement, staff allocation, marketing, and sales conversion. These systems are often
developed “quietly” with retailers (like Ralphs) reluctant to share their costs and benefits.
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Back Office Applications
Dashboards
While mountains of data can be collected, the data is only as valuable as the actions taken in response
to real-time conditions. A comprehensive “dashboarding” initiative should be considered following the
selection of desirable technologies. In other words, if Palm Desert desires to generate footfall traffic
along El Paseo, a dashboard may be developed to monitor and convey critical real-time information
about, for example, long queues or a crowd forming in certain areas which may require law
enforcement attention or even traffic congestion mitigation actions like extending a certain southbound
green traffic signal indication in response to a traffic incident.
A dashboard could illustrate real-time status of buses (including next arrivals), weather, available
parking or any needed information gathered by sensors could be compiled into a singular “control
center”. Dashboards could be easily customized, for example, to display data important to weather, data
related to crowd management, restaurant data, etc.
Example of a “dashboard” system highlighting parking, transit, traffic, and related real-time data
Location-Based Apps
Applications today use location features to improve performance. It is important to note that
geolocation functionality takes effect only after a user clicks on the ‘Allow’ or ‘Enable’ option.
Location-based apps can detect objects, buildings, services, and businesses. Geolocation is also an
integral component of apps that are focused on logistics, delivery, and other service industries.
Location-based apps can only function with up-to-date maps and location services. Several technologies
need to be implemented to ensure more accurate geolocation. Here are some of those geolocation
technologies.
GPS module
The Global Positioning System (GPS) provides data on geolocation and time. The most recent GPS
technology offers accurate geolocation data within a few meters. Most navigation apps include built-in
real-time GPS coordinates.
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Cell ID
Cellular ID (identification) is unique for every device and is an important component of geolocation. This
means that even in the absence of live data from the mobile device, information from cell towers can
provide an approximate location.
Assisted GPS
Assisted or Augmented GPS (A-GPS) is a system that can be used to improve the general performance of
GPS positioning technology. More accurate location tracking that supersedes the performance of
standard GPS can be provided by a combination of the Cell ID and A-GPS.
Geofencing
A geo-fence is a virtual boundary within which an app performs pre-programmed simple or complex
actions. Uber, for example, uses a geofencing technique. Another example is child-monitoring software
that could be used by parents to track the movement of young children have implemented an adapted
version of geofencing.
Geofencing Applications could include:
• Out of Bounds, which would require:
o A determination of the level to which granular data someday may be needed.
• Breadcrumbs, which would have two benefits:
o Allowing each pedestrian to track their own activity with a high level of precision.
o Allowing pedestrian behavior to be monitored by law enforcement if desired.
iBeacon and Eddystone
iBeacon is a Bluetooth-based low energy proximity sensor that transmits a signal from a beacon to a
receiver that is usually an app. Google’s version of the iBeacon is called Eddystone, which is named after
a lighthouse in England.
Geolocation for IoT
Route tracking using geolocation coordinates can be performed by IoT-enabled devices. An IoT device
can collect data (signals) from device sensors that are like radio antennas. The data can then be used to
identify the device’s location coordinates.
The following are some mobile apps that utilize some of the geolocation technologies.
Life360
This is known as a family safety app. It provides driving, digital, and location safety features. The Life360
app is compatible with iOS and Android devices. A free 7-day trial version is available, as well as three
different membership plans that include different features and have an annual subscription cost.
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Dark Sky
Dark Sky offers hyperlocal weather information with down-to-the-minute forecasts based on the user’s
current geolocation. The Dark Sky app is compatible with iOS and Android devices and can be
downloaded for free from the Apple Store or Google Play Store.
GasBuddy
The GasBuddy app can be used to find the cheapest gas stations near the user and then it can be used to
save on the cost of each gallon of gas by upgrading to a GasBuddy fuel rewards program. The GasBuddy
app is compatible with iOS and Android devices and can be downloaded for free from the Apple Store or
Google Play Store.
Artificial Intelligence (AI)
Artificial Intelligence (AI) applications include advanced web search engines, recommendation systems,
understanding human speech, self-driving cars, automated decision-making and competing at the
highest level in strategic game systems. The various sub-fields of AI research are centered around
particular goals and the use of particular tools. The traditional goals of AI research include reasoning,
knowledge representation, planning, learning, natural language processing, perception, and the ability
to move and manipulate objects.
It is seemingly apparent that from this analysis of smart application technologies that the City of Palm
Desert can develop a technically-sound and financially viable plan to achieve its long-sought goal to
improve its resident, business, and visitor experience. Critically, the timing of this Study coincides
perfectly with the carriers’ goals to deploy and fully-leverage their 5G spectrum. This creates a
tremendous opportunity to deploy technology capable of meeting not only the goals for improving
resident, business, and visitor experiences but true operational improvements.
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Appendix C: Request for Expressions of Interest
REQUEST FOR INFORMATION
INVITATION FOR BIDS
2023-RFI-222
BROADBAND PARTNERSHIP
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
RELEASE DATE: November 8, 2023
DEADLINE FOR QUESTIONS: November 15, 2023
RESPONSE DEADLINE: December 1, 2023, 5:00 pm
RESPONSES MUST BE SUBMITTED ELECTRONICALLY TO:
https://procurement.opengov.com/portal/cityofpalmdesert
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City of Palm Desert
REQUEST FOR INFORMATION
Broadband Partnership
I. Introduction..........................................................................................
II. Project Details.......................................................................................
III. Instructions to Respondents .................................................................
IV. Response Items.....................................................................................
V. Vendor Questionnaire...........................................................................
Attachments:
A - Proposed City Fiber Ring Network Map
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1. Introduction
1.1. Summary
The City is considering the development and deployment of a fiber network in partnership with
potential private sector partners. The partnership envisions the City leveraging funding to construct a
municipal fiber ring network and identifying a partner willing to assist in creating ubiquitous fiber to the
premises (residents and businesses) connectivity throughout Palm Desert. In this model, the partner
would be responsible for completing the drop construction to each demand location, which includes
homes and businesses, as part of providing the services, and ongoing operations.
1.2. Background
The City of Palm Desert, California, incorporated November 26, 1973, is centered in the heart of the
Coachella Valley in eastern Riverside County, part of the low desert region of Southern California. Often
referred to as the cultural, educational, and retail hub of the desert communities, Palm Desert offers a
unique blend of amenities and a safe, family-friendly environment.
The City is a charter city in the State of California. It is a thriving community of approximately 50,000 full-
time and an additional 32,000 seasonal residents.
Palm Desert is rated one of the safest cities in Southern California. The Police Department is contracted
through the Riverside County Sheriff's Department and its fire and paramedic services are similarly
contracted with Riverside County Fire.
An ideally situated resort community, Palm Desert offers a small-town feel with big-city amenities. Its
character is upscale yet comfortable and family friendly. A place of relaxation and escape, the City also
offers countless pursuits for active lifestyles including exciting outdoor activities in a beautiful, natural
environment. Convenient access to world-class shopping, recreation, culture, and the arts combined
with 350 days of predictable sunshine each year make Palm Desert one of the world’s premier
destinations.
1.3. Contact Information
Project Contact
Deborah Glickman
Management Analyst
73510 Fred Waring Dr
City of Palm Desert, CA 92260
Procurement Contact
John Ramont
Deputy Director, Finance
73-510 Fred Waring Drive
Palm Desert, CA 92260
Department:
Economic Development
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1.4. Timeline
Release Project Date November 8, 2023
Question Submission Deadline November 15, 2023, 5:00pm
Question Response Deadline November 22, 2023, 5:00pm
Proposal Submission Deadline December 1, 2023, 5:00pm
2. Project Details
2.1. Project Overview
Palm Desert is considering the development and deployment of a fiber network in partnership with
potential private sector partners. The partnership envisions the city leveraging funding to construct a
municipal fiber ring network and identifying a partner willing to assist in creating ubiquitous fiber to the
premises (residents and businesses) connectivity throughout Palm Desert. In this model, the partner
would be responsible for completing the drop construction to each demand location, which includes
homes and businesses, as part of providing the services, and ongoing operations.
Please refer to Appendix A for a map of the proposed fiber ring network.
This Request for Expressions of Interest (EOI) has been initiated by the City of Palm Desert to enable it to
identify one or more partners that would be interested in providing improved network services within
the City limits using City-built fiber infrastructure. The City seeks input from interested potential partners
regarding the terms and conditions under which partners would operate and manage Internet and other
network services to homes and businesses over City-owned fiber.
Palm Desert is particularly interested in providers who will use the fiber to provide ultra-high-speed
network access defined as being in the multiple-hundred mega-bit-per-second (Mbps) to giga-bit-per-
second (Gbps) range.
One of Palm Desert’s primary goals of this network is economic development. With the Internet as a
driving vehicle many businesses can locate anywhere if there is enough bandwidth at affordable prices.
Companies that rely on high-speed connections will go where they can flourish. Responses to this EOI
should state how the respondent’s approach will further the City’s goals of attracting businesses and
residents and encouraging economic retention in the City.
Palm Desert seeks to make the City a more desirable place for firms and residents, who see the quality-
of-life benefits of broadband both directly through home connections and through enhanced services
provided to the business community.
Because this network is an important part of the City, Palm Desert seeks a wired service provider or
multiple providers who are interested in providing services to the residents and businesses in the
community.
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Wired services include the provision of one or more of the following services to end customers in the
community: voice, video, and data/broadband content, but services proposed must include at a
minimum a fiber to the premise broadband connection. Wired services may include other ancillary
services typically provided by broadband or cable providers.
3. Instructions to Respondents
3.1. Instructions to Respondents
Interested vendors may respond by submitting answers found in Section 5, "Vendor Questionnaire."
Vendors are encouraged to attach relevant supporting information at the end of the Vendor
Questionnaire.
3.2. Questions and Clarifications
All questions, requests for interpretations or clarifications, either administrative or technical must be
requested in writing VIA the "Q&A" tab through the City's online bid management provider (“OpenGov-
Procurement”).
All written questions, if answered, will be answered in writing, conveyed to all interested firms, and posted
through OpenGov-Procurement. Oral statements regarding this RFP by any persons should be considered
unverified information unless confirmed in writing. To ensure a response, questions must be received in
writing by 5:00 pm (local time) on Wednesday, November 15, 2023.
3.3. Process
Upon the closing of this EOI the City shall review responses and determine next steps.
4. Response Items
4.1. Response Requirements
Interested parties shall respond to the EOI according to the schedule and shall provide responses to the
Vendor Questionnaire to follow.
4.2. Requested Information
There are several central goals to the City’s municipal fiber ring network undertaking. Respondents to
this EOI and any possible subsequent RFP should indicate whether and how their proposal serves these
goals:
A. Offer service to any customer connected to or any customer that could be connected to the City
fiber network; serving only limited areas of the City or specific types of customers is less desirable.
B. Offer unique services and speeds and network performance better than that provided by the
incumbent networks in the City. For example, providing hundreds of megabits or gigabit speeds,
providing symmetrical services, providing services that continue operating when commercial power
fails, providing service level agreements, and providing direct connectivity between locations on the
City fiber.
C. Propose connectivity services to the City’s business community and other locations where a provider
can cost-effectively and competitively connect to commodity Internet and secure cloud services.
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D. Respond to the needs of health care providers and patients.
E. Respond to the needs of the large and small businesses connected to the City fiber.
F. Provide cost-effective services for price-sensitive customers and flexible pricing plans, including the
unserved (less than 25 Mbps download and 3 Mbps upload speeds) and underserved (less than 100
Mbps download and 20 Mbps upload speeds).
The City seeks an uninhibited network, where Service Providers may offer a range of services, and
network operators are neutral with respect to Service Providers, applications, websites, type of use, and
type of connection device.
The City seeks Service Providers who would be interested in offering lit broadband services and partners
who would be interested in handling maintenance and operations of the network. The City also seeks
partners who will be interested in extending the City fiber, if expansion is needed.
For the network to have the intended economic and quality of life impacts, Palm Desert considers both
cost and availability of service to be important. The City encourages responses from interested partners
that address both to maximize adoption of service.
5. Vendor Questionnaire
5.1. Affirm that you are interested in this partnership.*
☐ Yes
☐ No
*Response required
5.2. Provide a statement of experience discussing past performance,
capabilities, and qualifications. *
Identify other networks your firm has designed, built, maintained, or operated; include the
levels of broadband speed, availability, and adoption among different categories of end-users
and unique capabilities or attributes. Discuss other partnerships with other service providers,
government, or non-profit entities you have undertaken, particularly any involving dark fiber
leasing. Describe the nature of the projects and your firm’s role. Explain how your firm is a
suitable partner for this project.
*Response required
5.3. Please refer to Appendix A to review the map of the City’s proposed fiber
ring network. Do you support this network design? If so, please explain why
you support it. If not, please share your thoughts about how you would
design the network.*
*Response required
5.4. At a very high level, summarize the technological and operational approach
you would use for this project. *
*Response required
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5.5. At a very high level, summarize the technological and operational approach
you would use for this project. *
How would you use technology to meet the City’s goals? What approach would you use to
interconnect with the Internet and other public networks? How would you perform network
management? Under what scenarios would you require route diversity or other special features
in the City fiber? At what sort of facility (or facilities) would you place network electronics?
Would you require direct, dedicated fiber connectivity to all premises, or would a passive optical
network be suitable in some cases?
*Response required
5.6. Summarize the business approach you would use for the project. How
would your business plan help meet the City’s goals? What are the key
assumptions? What are your main areas of risk, and how can the City help
reduce the risks?*
*Response required
5.7. Describe your previous experience/successes with projects funded from
local, state, or federal government sources.*
*Response required
5.8. What is your proposed schedule for implementing service? Offer a timeline
with key milestones. Would you be able to begin service before the entire
City was constructed? Are there areas of the City you would recommend be
constructed first? *
*Response required
5.9. What are your requirements for the City to meet in order for you to partner
with the City on this project? What, if any, are the financial requirements
you have of the City to enter into a partnership? If you do not address this
question as to financial requirements, it will be assumed that you are
interested in the partnership but have no financial requirements
whatsoever of the City.*
*Response required
5.10. What service options would you plan to offer over this network (for
example, data only, voice and data, a triple play of voice, data, and cable
television, etc.)? What download/upload or symmetrical speeds would you
offer and guarantee to end-users? How will your residential and business
offerings differ? Please propose planned pricing for 100 Mbps, 500 Mbps
and 1 Gbps service for residential and business customers.*
*Response required
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5.11. Provide a statement of how your proposed participation would help the
City’s economic development goals. *
Describe your interests and plans to hire local contractors and providers in Palm Desert, and
how your participation would help local job creation. Describe your relationships with local
businesses in Palm Desert as well as your interest and plans to engage them in this project.
Describe your relationships with socially and economically disadvantaged small businesses in
Palm Desert as well as your interest and plans to engage them in this project.
*Response required
5.12. Provide three (3) references, including contact information, from previous
contracts or partnerships.*
*Response required
5.13. Additional Materials
Upload any relevant documentation you would like to be included in your submission.
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APPENDIX A – Proposed City Fiber Ring Network Map (Subject to Change)
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Broadband Study Middle Mile Map
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Contract No. ______________
Page 1 of 3
AMENDMENT NO. 10 TO THE PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT AND HR GREEN PACIFIC
1. Parties and Date.
This Amendment No. __ to the Professional Services Agreement between the City of Palm
Desert and HR Green Pacific is made and entered into as of this 11th, day of April 2024, by and
between the City of Palm Desert (“City”) and HR Green Pacific, with its principal place of business
at 260 Corona Pointe Court, #305, Corona, CA 92879 (“Consultant”). City and Consultant are
sometimes individually referred to as “Party” and collectively as “Parties.”
2. Recitals.
2.1 Agreement. The City and Consultant have entered into an agreement entitled
Professional Services Agreement Contract No. C41690 dated July 1, 2021, (“Agreement” or
“Contract”) for the purpose of retaining the services of Consultant to provide on-call services for
the Public Works and Development Services Departments.
2.2 Amendment. The City and HR Green Pacific desire to amend the Agreement to
expand the scope of service in the amount of Nineteen Thousand Eight Hundred Eighty Four
Dollars ($19,884),to include a Request for Proposals and grant management to support the
Broadband Feasibility Study and Master Plan. The Parties have heretofore entered into that
Amendment No. 10 dated April 11, 2024.
2.3 Amendment Authority. This Amendment No. _ is authorized pursuant to Section
3.6.14 of the Agreement.
3. Terms.
3.1 Scope of Services and Term: Section 3.1.1 of the Agreement is hereby amended
in its entirety to read as follows:
3.1.1 General Scope of Services. Consultant promises and
agrees to furnish to the City all labor, materials, tools, equipment,
services, and incidental and customary work, including the
preparation of a Request for Expression of Interest for the
Broadband Feasibility Study and Master Plan, necessary to fully and
adequately supply the services necessary for the Project
("Services"). The Services are more particularly described in Exhibit
"A" attached and incorporated herein by reference. All Services
shall be subject to, and performed in accordance with, this
Agreement, the exhibits attached hereto and incorporated herein by
reference, and all applicable local, state and federal laws, rules and
regulations.
“Exhibit A to this agreement is hereby included as part of the scope
of services to the original and amended contract.
3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 10,
all other provisions of the Agreement remain in full force and effect and shall govern the actions
of the parties under this Amendment No. 10. From and after the date of this Amendment No. 10,
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Contract No. ______________
Page 2 of 3
whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the
Agreement as amended by this Amendment No. 10.
3.3 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. 10.
3.4 Severability. If any portion of this Amendment No. 10 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
3.5 Counterparts. This Amendment No. 10 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]
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Contract No. ______________
Page 3 of 3
SIGNATURE PAGE FOR AMENDMENT NO. 10 TO THE PROFESSIONAL SERVICES
AGREEMENT BETWEEN THE CITY OF PALM DESERT
AND HR GREEN PACIFIC
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 10 to the
Professional Services Agreement as of the day and year first above written.
CITY OF PALM DESERT
By:
L. Todd Hileman
City Manager
ATTEST:
By:
Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney
HR Green Pacific, Incorporated
By:
Its: Vice
President
Printed Name: Tim
Hartnett
By:
Its: Secretary
Printed Name: Jason
Poppen
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
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CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: RESOLUTION ESTABLISHING PROCEDURES FOR THE APPOINTMENT
OF THE MAYOR AND MAYOR PRO TEM
RECOMMENDATION:
Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ESTABLISHING PROCEDURES FOR THE APPOINTMENT OF THE
MAYOR AND MAYOR PRO TEM AND RESCINDING RESOLUTION NO. 2021-61.”
BACKGROUND/ANALYSIS:
On March 26, 1976, the City Council adopted Resolution No. 76 -39, amended by Resolution
Nos. 80-44, 82-22, and 84-41, establishing a one-year term and setting forth a rotating
appointment process for the positions of Mayor and Mayor Pro Tem.
On October 11, 2001, the City Council adopted Resolution No. 01-110, amended by Resolution
Nos. 2013-14, 2015-91, and 2021-61, formalizing the practice of appointing the Mayor and
Mayor Pro Tem on a seniority rotating basis. Resolution No. 2021-61 included provisions
addressing situations in which two or more Members in the same district are sworn into office
on the same day as well as when two or more Members are sworn into office on the same day
from different districts. These provisions no longer apply to a five -district electoral system;
therefore, it is necessary to establish new procedures.
On February 15, 2024, the City Council confirmed the appointment of Mayor Pro T em Harnik
and Mayor Quintanilla to a City Council Ad Hoc Committee on the appointment procedures for
the Mayor and Mayor Pro Tem.
On March 11, 2024, the Ad Hoc Committee met with City staff to discuss potential options for
the selection of the Mayor and Mayor Pro Tem. The Committee reviewed methods for appointing
a Mayor and Mayor Pro Tem and recommended a district-based rotation process.
On March 28, 2024, the City Council considered the recommendation; however, the City Council
voted 4-0 (with Mayor Quintanilla abstaining) to direct staff to prepare a resolution establishing a
seniority-based rotation process (based on the responses in the Q&A Memo, dated March 28, 2024)
and requested that the City Clerk evaluate and notify the City Council regarding any unanswered
questions/situations not covered by the proposed process.
In evaluating the proposed process, the City Clerk identified that in the event of a tie, there is a
need to identify who will call the coin toss or the order of drawing straws. Therefore, the City Clerk
has proposed that the order be determined by alphabetical order of the Members’ last name.
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City of Palm Desert
Mayor & Mayor Pro Tem Appointment Procedures – Seniority-Based
Page 2 of 2
Procedure Highlights:
Term of Appointment: Members shall be appointed for a one-year term, commencing
at the first regular City Council meeting in December of each year.
o If a Member serving as Mayor served a partial term of six months or less, that Member
shall continue to serve as Mayor for an additional year.
o If a Member serving as Mayor Pro Tem served a partial term, that Member shall
continue to serve unless there is an outgoing Mayor, in which case the Member shall
be appointed to serve as Mayor.
Eligibility: A Member must serve on the City Council for at least one year prior to serving
as Mayor Pro Tem or two years prior to serving as Mayor. In the absence of this
occurrence, a Member having served at least one term on the Planning Commission will
be sufficient for appointment.
Rotation Priority: In appointing the Mayor Pro Tem, priority shall be given to the Member
with the longest continuous service since last serving as Mayor, if ever. In appointing the
Mayor, priority will be given to the immediately preceding Mayor Pro Tem.
Tie Breakers: If two Members are tied, ties shall be broken a coin toss; if three Members
are tied, ties shall be broken by drawing straws; and the winner shall be inserted first into
the Mayor Rotation. The order of calling the coin to ss or selection of straws shall be
determined by alphabetical order of the Members’ last name.
Declining to Serve: If a Member declines service as Mayor or Mayor Pro Tem, then that
Member’s future placement in the rotation will be as if they served in the year for which
service is waived.
No Option: If these procedures result in no Member being eligible to fill either position,
then the City Council may vote to appoint anyone of its Members to serve.
Removal: The Mayor and Mayor Pro Tem may be removed by 4/5ths vote of the City
Council.
Legal Review:
This report has been reviewed by the City Attorney’s office.
FINANCIAL IMPACT:
There is no fiscal impact associated with this action.
ATTACHMENT:
1. Draft Resolution
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ATTACHMENT 1
Seniority-Based Rotation
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ESTABLISHING PROCEDURES FOR
THE APPOINTMENT OF THE MAYOR AND MAYOR PRO TEM
AND RESCINDING RESOLUTION NO. 2021-61
WHEREAS, the City Council of the City of Palm Desert, California, adopted
Resolution No. 76-39, amended by Resolution Nos. 80-44, 82-22, and 84-41, establishing
a one-year term and setting forth a rotating appointment process for the positions of
Mayor and Mayor Pro Tem, and
WHEREAS, the City Council adopted Resolution No. 01-110, amended by
Resolution Nos. 2013-14, 2015-91, and 2021-61, formalizing the practice of appointing
the Mayor and Mayor Pro Tem on a seniority rotating basis, and
WHEREAS, the City Council must appoint from its own membership two Members
to serve as Mayor and Mayor Pro Tem, and
WHEREAS, it has been the desire of each City Council serving the City of Palm
Desert since incorporation to make these positions honorary in nature, held for a one -
year term, and
WHEREAS, it is the City Council’s opinion that each Member elected to the City
Council is equally qualified and deserving to hold these offices, and each Member should
be given ample opportunity to serve in one or both of these offices; and
WHEREAS, Resolution No. 2021-61 includes provisions addressing situations in
which two or more Members in the same district are sworn into office on the same day as
well as when two or more Members are sworn into office on the same day from different
districts. These provisions no longer apply to a five -district electoral system as enacted
by Ordinance No. 1406; therefore, it is necessary to update the procedures; and
WHEREAS, the purpose of this Resolution is to update the seniority-based rotation
for the appointment of Members to the honorary positions of Mayor and Mayor Pro Tem.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. TERM OF APPOINTMENT. The appointment of Mayor and Mayor
Pro Tem shall be made on an annual basis at the first regular City Council meeting in
December of each year. No Member shall serve a term in either office to exceed a one-
year period, except as follows:
A. If a Member serving as Mayor served a partial term of six months or less, that
Member shall continue to serve as Mayor for an additional year.
B. If a Member serving as Mayor Pro Tem served a partial te rm, that Member shall
continue to serve unless there is an outgoing Mayor, in which case the Member
shall be appointed to serve as Mayor.
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Resolution No. _____
Page 2
SECTION 2. ELIGIBILITY. Prior to any Member being appointed as Mayor, the
Member shall have served on the City Council for approximately two years, and the Mayor
Pro Tem shall have served on the City Council for approximately one year prior to being
appointed to those respective offices; or in the absence of this occurrence, a Member
having served at least one term on the Palm Desert Planning Commission will be
sufficient eligibility for appointment to the office.
SECTION 3. ROTATION PRIORITY. In appointing the Mayor Pro Tem, priority
shall be given to the Member with the longest continuous service since last serving as
Mayor, if ever. In appointing the Mayor, priority shall be given to the immediately
preceding Mayor Pro Tem; if the immediately preceding Mayor Pro Tem is unwilling or
unable to serve as Mayor, priority shall be given to the Member who would ot herwise
have priority to be appointed Mayor Pro Tem.
SECTION 4. TIE BREAKERS. When two or more Members are tied, the order of
service in the Mayoral Rotation shall be established by a method of chance, with the
winner being inserted first into the Mayoral Rotation.
A. When two Members are tied, ties shall be broken by coin toss and the Member
calling shall be determined by alphabetical order of the Members’ last name.
B. When three Members are tied, ties shall be broken by drawing straws with the
order of picking a straw being determined by alphabetical order of the
Members’ last name.
SECTION 5. DECLINING TO SERVE: If a Member declines service as Mayor or
Mayor Pro Tem, then that Member’s future placement in the rotation will be as if they
served in the year for which service is waived.
SECTION 6. NO OPTION. If these procedures for the appointment of Mayor and
Mayor Pro Tem result in no Councilmember being eligible to fill either position, then the
City Council may vote to appoint anyone of its Members to serve.
SECTION 7. REMOVAL. The City Council by four-fifths (4/5ths) vote may remove
the Mayor and/or Mayor Pro Tem.
SECTION 8. Resolution No. 2021-61 is hereby rescinded in its entirety.
SECTION 9. The City Clerk of the City of Palm Desert shall certify the passage
and adoption of this resolution and its approval by the City Council and shall cause the
same to be listed in the records of the City.
Page 684 of 855
Resolution No. _____
Page 3
ADOPTED ON ________________, 2024.
KARINA QUINTANILLA
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2024-__ is a full, true, and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Desert on _______________________,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on ___________________.
ANTHONY J. MEJIA
CITY CLERK
Page 685 of 855
Page 686 of 855
Page 1 of 3
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: April 11, 2024
PREPARED BY: Nick Melloni, AICP, Principal Planner
REQUEST: INTRODUCTION OF AN ORDINANCE TO ADOPT A ZONING
ORDINANCE AMENDMENT TO IMPLEMENT RESIDENTIAL AND
MIXED-USE OBJECTIVE DESIGN STANDARDS AND MAKING A
FINDING OF EXEMPTION UNDER CEQA
RECOMMENDATION:
Introduction of an Ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PALM DESERT, CALIFORNIA, AMENDING THE PALM DESERT MUNICIPAL CODE TO
ADD CHAPTER 25.42 – MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
AND AMENDING OTHER CHAPTERS OF THE ZONING ORDINANCE, AND MAKING A
FINDING OF EXEMPTION UNDER CEQA”
BACKGROUND/ANALYSIS:
At its February 6, 2024, regular meeting, the Planning Commission unanimously adopted
Resolution No. 2852 recommending that the City Council adopt a notice of exemption in
accordance with CEQA and approving the Zoning Ordinance Amendment (ZOA). As part of their
recommendation of approval, the Planning Commission included the following substantive
changes to the Residential and Mixed-Use Residential Objective Design Standards document
(ODS):
1. Amend ODS 3.9.4 to require that an active water amenity be mandatory instead of one
of the options and define water amenity to be an active/usable feature with images that it
is intended to be a splash pad or similar amenity, and not a passive water fountain.
2. Amend ODS 5.1.4 to increase the size of the parking lot landscape islands to ensure the
healthy growth of trees.
3. Amend the diagram for ODS 3.3.1 to allow for the clustering and offsetting of trees
(creating an “oasis effect”).
At its March 14, 2024, regular meeting the Palm Desert City Council, regular meeting. The City
Council voted to approve the ZOA with amendments to the ODS document including the
following substantive changes:
1. Adding a standard to ODS 3.4 / 3.5 that any invasive, noxious, and nuisance plant species
and any plant species designated by the weed control regulations in the Federal Noxious
Weed Control and Eradication Act of 2004 and identified on a regional district noxious
plant species control list, and in Chapter 24.04 of the Palm Desert Municipal Code
(“PDMC”) shall be prohibited.
2. Amending ODS 4.2.1 to revise language so that no building wall shall exceed 250 feet in
length.
Page 687 of 855
City of Palm Desert
Residential and Mixed-Use Objective Design Standards
Page 2 of 3
3. Amending ODS 4.2.2 (building breaks), revise language so that a minimum 40-foot open-
to-the-sky building breaks shall be provided between resulting structures.
4. Amending ODS 4.3.1 so that a minimum of four out of the 11 options for building
modulation must be utilized to be in compliance with the standard.
5. Removing ODS 5.5.1 (and updating the numbering of the following standards) so that
there isn’t language which prohibits surface parking lots in the frontage setback or
between buildings and the public street. If someone were to place a surface parking lot in
this area, they would have to comply with ODS 5.1.2, which already mandates either
providing a fence or wall (5.1.2b) or a 10-foot landscape buffer (5.1.2.c).
6. Other text modifications and clarifications are summarized in the attached errata sheet.
The full scope of modifications is detailed in the errata sheet dated March 29, 2024. The
modifications were substantial and were not considered by the Planning Commission during the
February 6, 2024, hearing. Therefore, in accordance with Government Code Section 65827, the
revised ordinance was required to return to the Planning Commission for re -consideration.
Appointed Body Recommendation:
At its April 2, 2024, regular meeting the Planning Commission considered th e recommended
changes and adopted Resolution 2863 recommending approval of the revised Objective Design
Standards document with the comment that the language added for ODS 3.3.5 to “Consider
irrigation practices that better emulate natural conditions or mo ve irrigation lines incrementally
over time to encourage “Desert Museum” Palo Verde roots to grow more robustly and better
prevent this species from falling over.” Become standard for all trees. The draft resolution is
attached for reference.
Legal Review:
This report has been reviewed by the City Attorney’s office.
Environment Review:
Pursuant to the California Environmental Quality Act (CEQA), Public Resources Code Section
21000, et. seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of
the California Code of Regulations (collectively “CEQA”), the adoption of the Ordinance
implementing the objective design standards and the City of Palm Desert Objective Design
Standards document do not constitute a “project” within the meaning of Public Resources Code
Section 21065, 14 Cal Code Regs. Section 15060(c)(2) or 15378 because it has no potential for
resulting in either a direct physical change in the environment, or a reasonably foreseeable
indirect physical change in the environment. Even if the adoption of the Ordinance implementing
the objective design standards and the City of Palm Desert Objective Design Standards
document did constitute a project under CEQA, the objective design standards documents fall
within the “common sense” exemption set forth in 14 Cal. Code Regs. Section 15061(b)(3),
excluding projects where “it can be seen with certainty that there is no possibility that the activity
in question may have a significant effect on the environment…” Therefore, the proposed
objective design standards documents do not warrant further environmental review.
Page 688 of 855
City of Palm Desert
Residential and Mixed-Use Objective Design Standards
Page 3 of 3
FINANCIAL IMPACT:
No financial impacts as part of this project. The project is funded entirely by a Local Early Action
Planning (LEAP) grant provided by the California Department of Housing and Community
Development (HCD) totaling $150,000. Adoption of the ordinance and document will allow the
City to seek reimbursement of the project cost through the LEAP grant.
ATTACHMENTS:
1. Draft Ordinance
2. April 2, 2024 - Planning Commission Staff Report
3. Draft Planning Commission Resolution No. 2863
4. March 29, 2024 - Planning Commission Errata Sheet
5. March 2024 Palm Desert Multifamily and Mixed-Use Objective Design Standards Document
6. Public Hearing Notice
Page 689 of 855
Page 690 of 855
ORDINANCE NO. ####
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, APPROVING A ZONING ORDINANCE
AMENDMENT OF THE PALM DESERT MUNICIPAL CODE TO ADD
CHAPTER 25.42 – MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN
STANDARDS, AMENDING OTHER CHAPTERS OF TITLE 25 TO
IMPLEMENT CITY-WIDE MULTIFAMILY AND MIXED-USE RESIENTIAL
OBJECTIVE DESIGN STANDARDS AND MAKING A FINDING OF
EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT
CASE NO. ZOA24-0001
WHEREAS, Government Code Section 65800 et seq. provides for the amendment
of any and all adopted City of Palm Desert (“City”) zoning laws, ordinances, rules and
regulations; and
WHEREAS, on September 29, 2017, in an effort to address the State’s ongoing
housing crisis, Governor Newsom signed Senate Bill 35 (Wiener) into law, which
amended Government Code Sections 65400 and 65582.1, and added Section 65913.4,
requiring cities and counties to streamline their review and approval of eligible housing
projects; and
WHEREAS, on October 9, 2019, in an effort to address the State’s ongoing
housing crisis, Governor Newsom signed Senate Bill 330 (Skinner) into law, which
amended Government Code Section 65589.5 and 65941.1 of the Government Code,
relating to housing limiting a jurisdiction’s ability to deny a housing project when it
complies with all objective general plan and zoning standards; and
WHEREAS, on September 28, 2022, in an effort to address the State’s ongoing
housing crisis, Governor Newsom signed Assembly Bill 2011 (Wicks) into law, which
amended Government Code Section 65400 and 65585, and added 65912.100 -101
requiring jurisdictions to subject certain multifamily housing projects in commercial
districts to a ministerial, streamlined approval process if the development satisfies
specified objective planning standards; and
WHEREAS, the City of Palm Desert will amend the Palm Desert Municipal Code
to provide regulations for Multifamily and Mixed-Use Objective Design standards to
ensure quality, economically feasible, and sustainable design under the streamlined
review and approval processes required by state law; including Senate Bill (“SB”) 35, SB
330, and Assembly Bill (“AB”) 2011; and
WHEREAS, the City has complied with the requirements of the Local Planning and
Zoning Law (Government Code section 65100 et seq.), and the City’s applicable
ordinances and resolutions with respect to approval of amendments to Title 25 of the
Palm Desert Municipal Code (“Zoning Ordinance”); and
WHEREAS, in an effort to comply with Housing Streamlining Laws and anticipated
removal of the discretionary design and site review process for certain housing projects,
Page 691 of 855
ORDINANCE NO. ####
2
an amendment to the City’s Zoning Ordinance regulating and implementing Objective
Design Standards is proposed and attached hereto as Exhibit “A” of this Ordinance and
the Palm Desert Multifamily and Mixed-Use Objective Design Standards are attached
hereto as “Exhibit B”; and
WHEREAS, the ZOA modified the Palm Desert Municipal Code (PDMC) Title 25
(Zoning) to change and update land uses and definitions; and
WHEREAS, under Section 21067 of the Public Resources Code, Section 15367
of the State California Environmental Quality Act (CEQA) Guidelines (Cal. Code Regs.,
tit. 14, § 15000 et seq.) and the City of Palm Desert’s (“City’s”) Local CEQA Guidelines,
the City is the lead agency for the Project; and
WHEREAS, the Project has complied with the requirements of the "City of P alm
Desert Procedure for Implementation of CEQA” Resolution No. 2019-41, in that the
Director of Development Services has determined that the Project will not have a
foreseeable significant impact on the environment and that the Project is eligible for an
exemption exempt Section 15061(b)(3) General Rule of the CEQA Guidelines; therefore,
no further environmental review is necessary at this time; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did
schedule a public hearing on January 16, 2024, to consider the requestion, which was
cancelled due to a lack of quorum; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did
on February 6, 2024, hold a duly noticed public hearing to consider the project and
unanimously voted to adopt Planning Commission Resolution No. 2852 recommending
the City Council approve the project with modifications; and
WHEREAS, the City Council of the City of Palm Desert, California, did on March
14, 2024, hold a duly noticed public hearing to consider the recommendation of Planning
Commission Resolution No. 2852; and
WHEREAS, at said public hearing, the City Council requested modifications of the
Palm Desert Multifamily and Mixed-Use Objective Design Standards Document which
included several substantial modifications to several standards contained in said
Document which constitute a modification of the Planning Commission recommendation;
and
WHEREAS, pursuant to Government Code Section 65837 any modification of the
proposed ordinance or amendment by the City Council not previously considered by the
planning commission during its hearing, shall first be referred to the planning commission
for report and recommendation, but the planning commission shall not be required to hold
a public hearing thereon; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did
on April 2, 2024, hold a public meeting to consider the modified ordinance, which includes
the City Council revisions of the Palm Desert Multifamily and Mixed-Use Objective Design
Page 692 of 855
ORDINANCE NO. ####
3
Standards Document and adopted Planning Commission Resolution No. 2863
recommending the City Council approve the project with modification; and
WHEREAS, the City Council of the City of Palm Desert, California, did on the 11th
day of April 2024, hold a duly noticed public hearing to consider the request by the
Applicant for approval of the above-noted Project request; and
WHEREAS, at the said public hearing, upon hearing and considering all testimony
and arguments, if any, of all interested persons desiring to be heard, the City Council did
find the following facts and reasons, which are outlined in the staff report, exist to justify
approval of said request:
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA DOES ORDAIN AS FOLLOWS:
SECTION 1. Findings. The City Council hereby finds that:
A. The City of Palm Desert, California (“City”), a municipal corporation duly
organized under the constitution and laws of the State of California; and
B. The Planning and Zoning Law authorizes cities to establish by ordinance the
regulations for land use and development.
SECTION 2. Amendment. The Planning Commission of the City of Palm Desert
recommends that the City Council of the City of Palm Desert, California, approve and adopt
the PDMC amendment to Title 25 as shown in Exhibit “A” and Palm Desert Multifamily and
Mixed-Use Objective Design Standards shown in Exhibit “B” which is attached hereto and
incorporated herewith.
SECTION 3. CEQA. Pursuant to the California Environmental Quality Act (CEQA),
Public Resources Code Section 21000, et. seq., as amended and implementing State
CEQA Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively
“CEQA”), the adoption of the Ordinance implementing the objective design standards and
the Multifamily and Mixed-Use Objective Design Standards do not constitute a “project”
within the meaning of Public Resources Code Section 21065, 14 Cal Code Regs. Section
15060(c)(2) or 15378 because it has no potential for resulting in either a direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment. Even if the adoption of the Ordinance implementing the objective design
standards and the Multifamily and Mixed-Use Objective Design Standards document did
constitute a project under CEQA, the objective design standards documents fall within
the “common sense” exemption set forth in 14 Cal. Code Regs. Section 15061(b)(3),
excluding projects where “it can be seen with certainty that there is no possibility that the
activity in question may have a significant effect on the environment…” Therefore, the
proposed objective design standards documents do not warrant further environmental
review. This determination reflects the independent judgement and analysis of the City
as the lead agency for the Amendment.
Page 693 of 855
ORDINANCE NO. ####
4
SECTION 4. CEQA. The application has complied with the requirements of the
“City of Palm Desert Procedure for Implementation of CEQA” Resolution No. 2019 -41, in
that the City Council finds that the Project is an exemption from CEQA per Section
15061(b)(3) of the CEQA guidelines as the Project is a determination on whether a use
that is not listed shall be deemed a conditional use . No direct, foreseeable impact on the
environment can be identified at this time.
SECTION 5. Severability. If any section, subsection, clause or phrase of this
Ordinance or any part thereof is for any reason held to be invalid, unconstitutional, or
unenforceable by the decision of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portion of the Ordinance. The City Council declares
that it would have passed each section, subsection, paragraph, sentence, clause, or
phrase thereof, irrespective of the fact that any one or more section, subsection,
sentence, clause or phrase would be declared invalid, unconstitutional or unenforceable.
SECTION 6. Publication. The City Clerk of the City of Palm Desert, California, is
hereby directed to publish this Ordinance in the Desert Sun, a newspaper of general
circulation, published and circulated in the City of Palm Desert, California, and shall be in
full force and effective thirty (30) days after its adoption.to the Commission shall attest
and certify to the passage and adoption thereof.
ADOPTED ON April 11, 2024.
KARINA QUINTANILLA
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Ordinance No. #### is a full, true, and correct copy, and was introduced at a regular
meeting of the City Council of the City of Palm Desert on April 11, 2024, and adopted at
a regular meeting of the City Council held on April 25, 2024, by the following vote:
AYES:
NOES:
Page 694 of 855
ORDINANCE NO. ####
5
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on ____________________________.
ANTHONY J. MEJIA
CITY CLERK
Page 695 of 855
ORDINANCE NO. ####
6
“EXHIBIT A”
ZONING ORDINANCE AMENDMENT
SECTION 1. Amendment to Palm Desert Municipal Code. Palm Desert Municipal
Code Chapter 25.42 is hereby added as follows.
Chapter 25.42
MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
Sections:
25.42.010 – Purpose and intent
25.42.020 – Applicability
25.42.030 – Relationship to other standards and requirements
25.42.040 – Exceptions
25.42.050 – Review and decision
25.42.060 – Appeals
25.42.070 – Post-decision procedure
25.42.010 - Purpose and intent
This chapter is intended to establish and apply objective design standards to new multi-family
residential and mixed- use development projects within the City of Palm Desert where state
law limits the City’s enforcement of design standards to objective standards or where state
law or the Palm Desert Municipal Code requires a ministerial approval process, except for
those projects described in Section 25.42.040. The purpose of this chapter is to:
1. Create high-quality, enforceable objective design standards.
2. Streamline the review and approval process for qualifying residential and mixed-use
projects.
3. Ensure greater certainty for applicants, decision makers, residents, and the public.
4. Enhance the existing character and to maintain compatibility with other established
uses within the City as new development and property improvements occur.
5. Continue to ensure the highest level of design quality while allowing for appropriate
flexibility to create variation as needed.
6. Create objective design standards that involve no personal or subjective judgement,
verifiable by reference to an external and uniform benchmark or criterion.
7. Facilitate the implementation of the Palm Desert General Plan.
8. Update standards on a timely basis to respond to new legislative actions.
Page 696 of 855
ORDINANCE NO. ####
7
25.42.020 - Applicability
1. The provisions of this chapter shall apply to all new multi-family residential and mixed-
use development projects located within the following zoning districts:
A. Mixed Residential District (R-2).
B. Multifamily Residential District (R-3).
C. Planned Residential District (PR).
D. Office Professional (OP).
E. Planned Commercial (PC).
F. Specialty Commercial Center (PC-1).
G. District Commercial Center (PC-2).
H. Regional Commercial Center (PC-3).
I. Resort Commercial Center (PC-4)
2. The provisions of this chapter shall apply where state law or the Palm Desert Municipal
Code requires a ministerial approval process.
3. The City of Palm Desert Objective Design Standards are hereby adopted and
incorporated by reference herein, and as adopted by City the City Council and
amended from time to time.
25.42.030 - Relationship to other standards and requirements
The City of Palm Desert intends this chapter to establish reasonable, uniform and
comprehensive standards and procedures for multi-family residential and mixed housing
development within applicable areas, consistent with and to the extent permitted under
federal and California State law. The standards and procedures contained in this chapter are
intended to, and should be applied to, protect and promote public health, safety and welfare,
and also balance the benefits that flow from robust, comprehensive housing development
with the city’s local values, which include, without limitation, the aesthetic character of the
City, its neighborhoods and community.
The provisions of this chapter are intended to supersede other chapters and design
guidelines, except as noted below:
1. Standards for Applicable Zoning District. The Objective Design Standards supplement
and are in addition to the development standards for the applicable zoning district in
which a proposed project is located.
2. Subdivision Regulations. Title 26 establishes regulations for the subdivision of land
throughout the City of Palm Desert. Where conflict exists between the Objective
Design Standards and the provisions of Title 26, the Objective Design Standard shall
govern.
3. Relation to Other Regulations. Where a conflict occurs between the requirements of
the Objective Design Standards and other city requirements, the more restrictive
provisions shall apply.
4. The Objective Design Standards provide language, diagrams, sketches, and graphics
to assist developers and the pub in understanding the standards and how they shall
be applied to qualifying residential projects.
25.42.40 Exceptions
Page 697 of 855
ORDINANCE NO. ####
8
A. Projects seeking to deviate or to not comply with the objective design standards are
required to obtain Design Review approval by the Architectural Review Commission
pursuant to the requirements of Chapter 25.68, prior to obtaining approval by the
Planning Commission.
B. Exempt Housing Projects. The provisions of this chapter are not applicable to:
1. Single-family detached homes.
2. Single-family detached homes as part of a major subdivision.
3. Duplex homes.
4. Accessory dwelling units pursuant to Section 25.34.030.
5. Two-unit projects pursuant to Section 25.34.080.
6. Renovations, additions, or expansions of existing residential buildings.
i. Where an addition or expansion of existing residential multi-family and
mixed use residential is greater than 50%, of the existing floor area, the
site plan shall comply with the Objective Design Standards for
landscaping.
7. Mixed-use projects with less than two-thirds of the building square footage
dedicated to housing.
8. Housing developed within Specific Plans which have adopted objective design
standards as a part of the Specific Plan. If the specific plan silent regarding a
standard, the ODS shall govern.
25.42.50 Review and decision procedure
1. The Director shall be the review authority for any Objective Design Review approval
for projects subject to the objective design standards. Land use approval of any
entitlement required in conjunction of the Objective Design Review shall be made by
the review authority identified in Chapter 25.60 – Procedures.
2. The applicant shall submit all materials required by the Director, including any
materials required by checklists created for the review process.
3. The Director shall evaluate the application based on the project’s conformance with
the objective development and design standards.
4. In approving an Objective Design Review subject to objective design standards, the
Director may impose conditions of approval as deemed necessary to:
a. Ensure that the proposal conforms to the general plan and other applicable
plans, or policies adopted by the City Council and or additional discretionary
approvals.
b. Ensure that the proposal meets the requirements of the zoning district where
the proposal is located, as well as any other applicable provisions of the
Development Code; and
c. Comply with the objective design standards as adopted within, or by reference
in Section 25.42.
25.42.060 – Appeals
The Design Review for Residential projects utilizing objective design standards are evaluated
under a ministerial review process for conformance with this section. The review authority
may restrict or deny a proposed residential design if they determine that the design is not
consistent with the objective design standards. The appeal will be heard by the Planning
Page 698 of 855
ORDINANCE NO. ####
9
Commission and shall be subject to a review by the Architectural Review Commission
consistent with the Design Review process and the requirements of Chapter 25.68.
25.42.070 Post-decision procedures
The procedures and requirements relating to appeals, project revisions, issuance of a building
permit, effective dates, lapse of approval, extensions, and revocations located in Chapter
25.60 – Procedures shall apply following the decision on an application for an Objective
Design Review. To the extent any state law limits the total number of public hearings that
may be held on a project, including appeals, the Planning Commission shall have the
discretion, to refer the appeal directly to the Council for a decision.
SECTION 2. Amendment to Palm Desert Municipal Code. Palm Desert Municipal
Code Section 25.10.030 is hereby amended as follows:
25.10.030 Allowed Land Uses and Permit Requirements
Table 25.10-1 “Use Matrix for Residential Districts” below identifies land uses and
corresponding permit requirements for residential districts and all other provisions of this
title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions).
The Special Use Provisions column in the table identifies the specific chapter or section
where additional regulations for that use type are located within this title.
Use regulations in the table are shown with a representative symbol by use classification
listing: “P” symbolizes uses permitted by right, “A” symbolizes uses that require approval
of an administrative use permit, “C” symbolizes uses that require approval of a conditional
use permit, and “N” symbolizes uses that are not permitted. Uses that are not listed are
not permitted. However, the Commission may make a use determination as outlined in
Section 25.72.020 (Use Determinations).
Table 25.10-1: Use Matrix for Residential Districts
Residential Zoning District
(P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use
Permit; C=Conditional Use Permit; N=Not Permitted)
RE R-1 R-2 R-3
R-
1M HPR PR
Special Use
Provisions
Residential Uses
Assisted living N C C C N N C
Accessory dwelling unit P P P P P N P 25.34.030
Condominium N N C C N N C 25.42
Dwelling, duplex N N P P N N N
Dwelling, multifamily N N P P N N C 25.10.040.A
/ 25.42
Dwelling, second P P P P N P P 25.34.030
Dwelling, single-family P P P N N P P
Farmworker housing N N N N N N N
Group home P P P N N P P 25.10.040.B
Guest dwelling P P P N N P P
Home-based business P P P P P P P 25.34.020
Junior accessory dwelling unit P P P P P N P 25.34.030
Page 699 of 855
ORDINANCE NO. ####
10
Residential Zoning District
(P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use
Permit; C=Conditional Use Permit; N=Not Permitted)
RE R-1 R-2 R-3
R-
1M HPR PR
Special Use
Provisions
Manufactured home parks N N N N C N N
Planned unit development, residential N N C C N C C 25.10.040.C
Transitional and supportive housing see Note 1 25.42
Agriculture-Related Uses
Apiary P P P N N P P 25.34.170
Botanical conservatory A N N N N N N
Crops and horticulture, limited A N N N N N N
Domestic animals P P P P P P P
Garden, private P P P P P P P
Greenhouse, commercial C N N N N N N
Greenhouse, private P P P A A P P
Horticulture, private P P P P P P P
Kennel C N N N N N C 25.10.040.D
Livestock raising, noncommercial C N N N N N N
Nursery C N N N N N N
Orchard A N N N N N N
Stable, boarding A N N N N N N 25.10.040.E
Stable, private A N N N N N N 25.10.040.E
Recreation, Resource Preservation, Open Space, and Public Assembly Uses
Cemetery N N N N N N C
Community facility N N N N N N C
Club, private N N C C N N C
Crematory N N N N N N N
Day care, large family P P P P P P P
Day care, small family P P P P P P P
Institution, educational2 C C C C C N C
Institution, general2 N N N C N N C
Institution, religious C C C C N N C
Public park P P P P P P P
Recreational use, commercial N N N N N N C 25.10.040.G
Recreational vehicle park N N N N C N C
Recreation facility, commercial N N N N N N N
Recreation facility, incidental C C C C C N C 25.10.040.H
Recreation facility, private P N N P P N P
Recreation facility, public C C C C C N C
Utility, Transportation, Public Facility, and Communication Uses
Electric substation N N N N N N N
Fire station C C C C N N C
Public service facility C C C C C N N
Public utility C C C C C N N
Utility facility N N N N N N C
Retail, Service, and Office Uses
Bed and breakfast C N N C N N N
Commercial parking lot N C N C N N N 25.10.040.I
Condominium hotel, converted N N C C N N C
Hospital N N C C N N C
Hotel N N N C N N C 25.10.040.J
Neighborhood government office N N C C N N N 25.10.040.K
Office parking lot N C C C N N N 25.10.040.L
Professional office N N C C N N N 25.10.040.M
Resort hotel N N N C N N C 25.10.040.J
Timeshares N N N N N N C
Page 700 of 855
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11
Residential Zoning District
(P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use
Permit; C=Conditional Use Permit; N=Not Permitted)
RE R-1 R-2 R-3
R-
1M HPR PR
Special Use
Provisions
Temporary Uses See Section 25.34.080
Notes:
1. Transitional and supportive housing shall be subject to only those restrictions that
apply to other residential uses of the same type in the same zone.
2. Trade schools are not permitted.
Section 3 – Section 25.10.050
SECTION 3. Amendment to Palm Desert Municipal Code. Palm Desert Municipal
Code Section 25.10.040 is hereby amended as follows:
25.10.040 Specific Use Standards
A. Multifamily. Multifamily dwelling units are permitted within the R-2 district up to a
maximum of 10 dwelling units per acre, or as indicated on the zoning map. Multifamily
dwelling units are permitted within the R-3 district at densities between 7 and 40
dwelling units per acre, or as indicated on the zoning map. All new multifamily uses,
mixed-use residential, and attached condominiums must comply with the requirements
of 25.42 – Objective Design Standards.
SECTION 4. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.16.030 is hereby amended as follows:
25.16.030 Allowed Land Uses and Permit
Requirements
Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed
uses and corresponding permit requirements for commercial and industrial districts and
all other provisions of this title. Descriptions/definitions of the land uses can be found in
Chapter 25.99 (Definitions). The “Special Use Provisions” column in the table identifies
the specific chapter or section where additional regulations for the specific use type are
located within this title.
Use regulations in the table are shown with representative symbols by use classification
listing: “P” symbolizes uses permitted by right, “A” symbolizes uses that require
approval of an administrative use permit, “C” symbolizes uses that require approval of a
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12
conditional use permit, and “N” symbolizes uses that are not permitted. Uses that are
not listed are not permitted. However, the Commission may make a use determination
as outlined in Section 25.72.020 (Use Determinations).
Table 25.16-1: Use Matrix for Commercial and Industrial Districts
Commercial/Industrial District
(P=Permitted; A=Administrative Use Permit; C=Conditional Use
Permit; N=Not Permitted)
OP PC-1 PC-2 PC-3 PC-4 SI
Special Use
Provisions
Residential Uses
Caretaker housing N N N N N P 25.16.040.A
Condominium C C C N C C 25.16.040.B /
25.42
Dwelling, duplex C C C C C C 25.16.040.B
Dwelling, multifamily C C C C C C 25.16.040.B /
25.42
Dwelling, single-family C C C N C C 25.16.040.B
Group home C C N N C C 25.16.040.B /
25.42
Single-room occupancies N N N N N C
Homeless shelter N N N N N P
Recreation, Resource Preservation, Open Space, and Public Assembly Uses
Amusement facility, indoors N N C C C N
Amusement facility, outdoors N N N C C N
Community facility N N N N N P
Day care center N A A A A N
Emergency shelters N P N N N P
Entertainment facility, indoor N N N P P N
Entertainment facility, outdoor N N N P P N
Institution, educational C C C N N C
Institution, general C N C N N C
Institution, religious C N C N N C
Open space (developed or natural) N P P N P N
Recreation facility, commercial N N P P P N
Recreation facility, private N N N P P N
Theater/auditorium N N P P N N
Utility, Transportation, Public Facility, and Communication Uses
Commercial communication tower C C C C C C 25.16.040.C
Commercial parking lot C N N N N N
Public utility installation N N N N N P
Public facility (utility or service) N N N N N P
Utility facility N N C N N P
Retail, Service, and Office Uses
Accessory massage establishment P N P P P N 25.34.160
Adult entertainment N N N N N C 25.16.040.D
Ancillary commercial A P P P N A 25.16.040.E
Art gallery A P P P P C
Art studio A P P P P C
Bed and breakfast N A A A A N
Business support services N N N N P P
Cannabis retail N C C C C N 25.34.120
Cannabis testing and research laboratory C N N N N C 25.34.120
Convention and visitors bureau N N P N P N
Page 702 of 855
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13
Commercial/Industrial District
(P=Permitted; A=Administrative Use Permit; C=Conditional Use
Permit; N=Not Permitted)
OP PC-1 PC-2 PC-3 PC-4 SI
Special Use
Provisions
Drugstore N P P P N N
Financial institution C P P P N N
Grocery store N P P P N N 25.16.040.F
Health club, gyms or studios N A P P P A
Hotel N A A A P N 25.34.070
Independent stand-alone massage N N P P N N 25.34.160
Liquor store N P P P N N
Liquor, beverage and food items shop N P P P P N
Medical, clinic P N P P N N
Medical, office P P P P N N
Medical, hospital N N N N N C
Medical, laboratory P N N N N P
Medical office, accessory N N N N N P 25.16.040.G
Medical, research facility P P N N N C
Mortuary N N N N N P
Office, professional P N P P P P
Office, local government P N N N N P
Office, travel agency P P P P P N
Outdoor sales N N A A A A
Personal services N P P P P N
Restaurant A A A A P A 25.16.040.E /
H
Retail N P P P P N
Retail, bulky items N N N P P N
Spa N N P P P N
Time-share project N N N C C N
Veterinary clinics/animal hospitals A N A A N A
Pet boarding N A A A N A
Automobile and Vehicle Uses
Automotive rental agency N N N N P P
Automotive gasoline station N N C C N C 25.34.090
Automotive service facility N N C C N P 25.34.090
Automotive sales new and used
(outdoor/indoor)
N N N N N C
(outdoor) A
(indoor)
Automotive sales of accessory parts and
supplies
N N N P P N
Vehicle storage facility N N N N N P 25.16.040.I
Industrial, Manufacturing, and Processing
Uses
Cannabis cultivation N N N N N C 25.34.120
Cannabis delivery N N N N N C 25.34.120
Cannabis distribution N N N N N C 25.34.120
Cannabis manufacturing N N N N N C 25.34.120
Industrial planned unit development N N N N N P
Light industrial and research and
development
N N N N N P
Maintenance facility N N N N N P
Pest control facility N N N N N P
Preparation of foodstuffs N N N N N P
Production of home and office decor
accessories
N N N N N P
Page 703 of 855
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14
Commercial/Industrial District
(P=Permitted; A=Administrative Use Permit; C=Conditional Use
Permit; N=Not Permitted)
OP PC-1 PC-2 PC-3 PC-4 SI
Special Use
Provisions
Warehouse or storage facility N N N N N P
Temporary Uses See Section 25.34.080
1 The establishment may be permitted with an administrative use permit but may be
elevated to a conditional use permit at the discretion of the ZA based on: parking, traffic,
or other impacts.
SECTION 5. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.16.040(B) is hereby amended as follows:
B. Residential (mixed use). Residential uses may be established and maintained to be
compatible with the permitted or the approved conditional uses in the vicinity. Residential uses
may be conditionally approved in a mixed-use development subject to a conditional use
permit to review for compatibility with existing use in the vicinity. All new multifamily or mixed-
use developments shall be subject to Chapter 25.42.
SECTION 6. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.60.070 is hereby amended as follows:
25.60.070 Approving Authority
A. Designated approving authority. The approving authority as designated in
Table 25.60-1 (Approving Authority for Land Use Permits/Entitlements) shall approve,
conditionally approve, or deny the proposed land use or development permit or
entitlement in accordance with the requirements of this title. Table 25.60-1 identifies
recommending (R), final (F), and appeal (A) authorities for each permit or entitlement. In
acting on a permit, the approving authority shall make all required findings.
Table 25.60-1: Approving Authority for Land Use Permits/Entitlements
Type of Entitlement, Permit, or Decision ZA Director ARC PC CC
Residential remodels and additions F A A F
Certificates of use and occupancy F A A
Temporary use permits F A A
Home-based business permits F A A
Large family day care use permits F F RR
Adjustments F A F RR
Administrative use permits F F RR
Reasonable accommodation F A F RR
Design Reviews R F A
Objective Design Review F R A2 A
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15
Sign design review R F A
Zoning decision F A A
Use determinations R F A
Precise plans R R1 F A
Development plans R R1 F A
Conditional use permits R R1 F A
Condominium conversion permits R F A
Variances R R1 F A
Planned community developments R R1 R F
Amendments—Zoning ordinance R R F
Amendments—Zoning map R R F
Prezoning for annexed areas R R F
Development agreements R R F
General Plan updates R R F
Director=Director of Community Development, ZA=Zoning Administrator,
ARC=Architectural Review Commission, PC=Planning Commission, CC=City Council,
R=Review Body, F=Final Decision (unless appealed), A=Appeal Body, and
RR=Request Review only.
Footnote:
1. A final determination is made by the ARC for design-related decisions as specified
in Chapter 25.68 (Decisions by the Architectural Review Commission).
2. All appeals of the Director’s Determination shall be made to the Planning Commission
and shall be subject to a discretionary review by the ARC subject to Section 25.68.040
Findings of the ARC, in addition to other appeal findings required by this Title.
SECTION 7. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.68.020 is hereby amended as follows:
25.68.020 Design Review Required
A. Purpose and applicability. Design review allows for specified projects to be
reviewed by the ARC to ensure that design objectives of Palm Desert as specified in the
General Plan are achieved. Design review is required, as follows:
1. Prior to permit issuance. No plan, elevation for buildings or structures, or
alterations shall be approved and no permit shall be issued for any building,
structure, sign, or other development of property or appurtenances or alterations
thereto, except in single-family residential districts and developments subject to
Objective Design Standards requirements of Chapter 25.42, without review and
approval by the ARC.
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16
2. The ARC shall review all plans submitted with applications for moving
buildings within or into the City. Photographs shall be included with the application
showing all elevations, the structure proposed to be moved, the proposed site, and
the buildings adjacent to the proposed site. The ARC shall determine whether the
building proposed to be moved will fit harmoniously into the neighborhood wherein
it is to be located. It may approve, approve with conditions, or disapprove the
issuance of a permit to move such building.
3. The ARC shall review all plans for new two-story residential dwellings and
second story additions within the R-2 Zoning District as required by Table 25.10-3
(Residential Zoning District Development Standards) to ensure second stories are
compatible with surrounding homes including massing, materials, and considers
privacy of adjacent neighbors.
B. The ARC design review shall include the following:
1. The mass and bulk of the design should be reasonably compatible with the
predominant neighborhood pattern. New construction should not be
disproportionately larger than, or out of scale with, the neighborhood pattern in
terms of building forms, roof pitches, eave heights, ridge heights, and entry feature
heights.
2. Placement of windows and doors should have minimal impact to the
neighboring property.
3. Line of sight analysis shall be provided.
4. To mitigate privacy impacts of new two-story homes and additions, tree
and/or shrub planting is required.
a. Applicability. These requirements shall apply to new two -story homes,
two-story additions, and/or new windows on existing two-story homes that
increase privacy impacts on neighboring residents.
5. Planting plan. Proposals for new two-story homes, two-story additions,
and/or new windows on existing two-story homes shall be accompanied by a
planting plan which identifies the location, species and canopy diameter of existing
and proposed trees or shrubs to meet the requirements. (Ord. 1383 § 2, 2022; Ord.
1259 § 1, 2013)
SECTION 8. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.68.030 is hereby amended as follows:
25.68.030 Exceptions to ARC Review
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17
A. Minor modifications. When in the opinion of the ZA, the approval of an
application for a minor or insignificant permit does not defeat the purposes and
objectives of this chapter, they may grant the permit without submitting the matter to the
ARC for its approval, notwithstanding any other provisions of this chapter.
B. Staff’s review of a single-family residence. Department staff shall review
applications for the issuance of a building permit for a dwelling in the single-family and
residential estate zones. The staff, on its own initiative, may forward such a request to
the ARC for action. (Ord. 1393 § 28, 2023; Ord. 1259 § 1, 2013)
C. Multifamily and Mixed-Use Objective Design Standards. New developments
which are subject to Multifamily and Mixed-Use Objective Design Standards shall
comply with the review and decision procedure requirements of Chapter 25.42.
SECTION 9. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.72.030(E) is hereby amended as follows:
E. Review criteria. Any such precise plan of design may be rejected, approved,
modified and approved, or approved subject to conditions. Any such precise plan of
design after approval may be amended, in the same manner as a precise plan of design
is first approved under this chapter. The following criteria apply:
1. In the approval or rejection of a precise plan of design, consideration shall be
given and restrictions shall be imposed to the extent necessary, in view of the size
and shape of the parcel and the present and proposed zoning and use of the subject
property and the surrounding property, to permit the same degree of enjoyment of
the subject property, but subject to the same degree of p rotection of adjoining
properties, as would be accorded in normal circumstances by the standard
restrictions imposed by this chapter. The standard restrictions imposed in the various
zones by this chapter are intended as minimum restrictions necessary in n ormal
circumstances to prevent substantial depreciation of property values in the vicinity
and unreasonable interference with the use and enjoyment of property in the vicinity
by the occupants thereof for lawful purposes, and for the protection of the publ ic
peace, health, safety, and general welfare. “Normal circumstances” are intended to
refer to the case of a permitted case upon a lot of a normal size and shape
surrounded by property in the same zone as the lot in question.
2. If the proposed precise plan of design would substantially depreciate property
values in the vicinity or would unreasonably interfere with the use or enjoyment of
property in the vicinity by the occupants thereof for lawful purposes or would
endanger the public peace, health, safety, or general welfare, such plan shall be
rejected or shall be so modified or conditioned before adoption as to remove said
objections.
3. If required, the design review approval by the ARC (Section 25.68.020, Design
Review Required), or Objective Design Review approval by the Director (Section
25.42 Multifamily and Mixed-Use Objective Design Standards) must be obtained
prior to the precise plan review by the Commission.
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18
SECTION 9. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.99.020 is hereby amended to add the following definitions
Objective Design Standards. The most recently adopted Multifamily and Mixed-Use
Objective Design Standards document approved by the City Council.
Mixed-Use. A mixing of uses in a development project either with in a vertical manner with
residential over commercial, retail, office, or institutional uses, or a mixing of uses in a
development project or with neighboring structures.
Page 708 of 855
Page 1 of 3
CITY OF PALM DESERT
PLANNING COMMISSION
STAFF REPORT
MEETING DATE: April 2, 2024
PREPARED BY: Nick Melloni, AICP, Principal Planner
REQUEST: 02 APRIL 2, 2024 - PLANNING COMMISSION STAFF REPORT.DOCX
RECOMMENDATION:
Adopt Planning Commission Resolution No. 28 63 to:
1. Recommend the City Council approve a Zoning Ordinance Amendment amending Title 25
of the Palm Desert Municipal Code (PDMC) by adding Chapter 25.42 – Objective Design
Standards and amending other sections of Title 25 of the Palm Desert Municipal Code, to
enact the Residential and Mixed-Use Residential Objective Design Standards document.
2. Find the project is exempt from further California Environmental Quality Act (CEQA) review
pursuant to Public Resources Code Section 21065, CEQA Guidelines Sections 15060(c)(2),
15378, and/or 15061(b)(3).
EXECUTIVE SUMMARY/BACKGROUND:
At its February 6, 2024, regular meeting, the Planning Commission unanimously adopted
Resolution No. 2852 recommending that the City Council adopt a notice of exemption in
accordance with CEQA and approving the Zoning Ordinance Amendment (ZOA). As part of their
recommendation of approval, the Planning Commission included the following substantive
changes to the Residential and Mixed-Use Residential Objective Design Standards document
(ODS) :
1. Amend ODS 3.9.4 to require that an active water amenity be mandatory instead of one
of the options and define water amenity to be an active/usable feature with images that it
is intended to be a splash pad or similar amenity, and not a passive water fountain.
2. Amend ODS 5.1.4 to increase the size of the parking lot landscape islands to ensure the
healthy growth of trees.
3. Amend the diagram for ODS 3.3.1 to allow for the clustering and offsetting of trees
(creating an “oasis effect”).
The amended standards were presented to the Palm Desert City Council at the March 14, 2024,
regular meeting. The City Council approved the ZOA with amendments to the ODS document
including the following substantive changes:
1. Adding a standard to ODS 3.4 / 3.5 that any invasive, noxious, and nuisance plant species
and any plant species designated by the weed control regulations in the Federal Noxious
Weed Control and Eradication Act of 2004 and identified on a regional district noxious
plant species control list, and in Chapter 24.04 of the Palm Desert Municipal Code
(“PDMC”) shall be prohibited.
Page 709 of 855
City of Palm Desert – Planning Commission
Residential and Mixed-Use Objective Design Standards
Page 2 of 3
2. Amending ODS 4.2.1 to revise language so that no building wall shall exceed 250 feet in
length.
3. Amending ODS 4.2.2 (building breaks), revise language so that a minimum 40-foot open-
to-the-sky building breaks shall be provided between resulting structures.
4. Amending ODS 4.3.1 so that a minimum of four out of the 11 options for building
modulation must be utilized to be in compliance with the standard.
5. Removing ODS 5.5.1 (and updating the numbering of the following standards) so that
there isn’t language which prohibits surface parking lots in the frontage setback or
between buildings and the public street. If someone were to place a surface parking lot in
this area, they would have to comply with ODS 5.1.2, which already mandates either
providing a fence or wall (5.1.2b) or a 10 foot landscape buffer (5.1.2.c).
6. Other text modifications and clarifications are summarized in the attached errata sheet.
The City Council modified the recommend ation of the Planning Commission in their motion to
approve first reading of the ordinance amendment. The modifications are substantial and were
not considered by the Planning Commission during the February 6, 2024, hearing. Therefore,
the Ordinance must be referred to the Planning Commission for report and recommendation in
accordance with Government Code Section 65827. Adoption of the resolution will accept the
modifications and recommend approval of the Ordinance. The item will return to the City Council
for first reading at a future hearing.
ANALYSIS:
The modifications are consistent with policies of the Palm Desert General Plan and input
received during the drafting of the ODS document.
Public Notification
In accordance with Government Code Section 65857, the Planning Commission is not required
to hold a public hearing to consider the modifications to the original recommendation.
Environmental Assessment/Environment Review:
Pursuant to the California Environmental Quality Act (CEQA), Public Resources Code Section
21000, et. seq., as amended and implementing State CEQA Guidelines, Title 14, Chapter 3 of
the California Code of Regulations (collectively “CEQA”), the adoption of the Ordinance
implementing the objective design standards and Objective Design Standards document do not
constitute a “project” within the meaning of Public Resources Code Section 21065, 14 Cal Code
Regs. Section 15060(c)(2) or 15378 because it has no potential for resulting in either a direct
physical change in the environment, or a reasonably foreseeable indirect physical change in the
environment. Even if the adoption of the Ordinance implementing the objective design standards
and the City of Palm Desert Objective Design Standards d ocument did constitute a project under
CEQA, the objective design standards document falls within the “common sense” exemption set
forth in 14 Cal. Code Regs. Section 15061(b)(3), excluding projects where “it can be seen with
certainty that there is no possibility that the activity in question may have a significant effect on
Page 710 of 855
City of Palm Desert – Planning Commission
Residential and Mixed-Use Objective Design Standards
Page 3 of 3
the environment…” Therefore, the proposed objective design standards document do es not
warrant further environmental review.
Legal Review:
This staff report has been reviewed by the City Attorney’s office.
Findings of Approval:
Findings can be made in support of the project under the City’s Municipal Code. Findings in support
of this project are contained in Planning Commission Resolution No. 2863, attached to this staff
report.
ATTACHMENTS:
1. Draft Planning Commission Resolution No. 2863
2. Adopted Planning Commission Resolution No. 2852
3. Palm Desert Multifamily and Mixed-Use Objective Design Standards
4. Errata Sheet Summarizing Changes from March 14, 2024, Council Meeting
Page 711 of 855
Page 712 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM
DESERT, CALIFORNIA, RECOMMENDING THAT THE CITY COUNCIL
MAKE A FINDING THAT THE PROJECT IS EXEMPT FROM FURTHER
ENVIRONMENTAL REVIEW PURSUANT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVE AN ORDINANCE
AMENDING THE PALM DESERT MUNICIPAL CODE TO ADD CHAPTER
25.42 – MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN
STANDARDS, AMENDING OTHER CHAPTERS OF THE ZONING
ORDINANCE TO IMPLEMENT CITY-WIDE MULTIFAMILY AND MIXED-USE
RESIENTIAL OBJECTIVE DESIGN STANDARDS
CASE NO. ZOA24-0001
WHEREAS, Government Code Section 65800 et seq. provides for the amendment of any
and all adopted City of Palm Desert (“City”) zoning laws, ordinances, rules and regulations; and
WHEREAS, on September 29, 2017, in an effort to address the State’s ongoing
housing crisis, Governor Newsom signed Senate Bill 35 (Wiener) into law, which amended
Government Code Sections 65400 and 65582.1, and added Section 65913.4, requiring cities
and counties to streamline their review and approval of eligible housing projects; and
WHEREAS, on October 9, 2019, in an effort to address the State’s ongoing housing
crisis, Governor Newsom signed Senate Bill 330 (Skinner) into law, which amended
Government Code Section 65589.5 and 65941.1 of the Government Code, relating to housing
limiting a jurisdiction’s ability to deny a housing project when it complies with all objective
general plan and zoning standards; and
WHEREAS, on September 28, 2022, in an effort to address the State’s ongoing
housing crisis, Governor Newsom signed Assembly Bill 2011 (Wicks) into law, which
amended Government Code Section 65400 and 65585, and added 65912.100-101 requiring
jurisdictions to subject certain multifamily housing projects in commercial districts to a
ministerial, streamlined approval process if the development satisfies specified objective
planning standards; and
WHEREAS, the City of Palm Desert will amend the Palm Desert Municipal Code to
provide regulations for Multifamily and Mixed-Use Objective Design standards to ensure
quality, economically feasible, and sustainable design under the streamlined review and
approval processes required by state law; including Senate Bill (“SB”) 35, SB 330, and
Assembly Bill (“AB”) 2011; and
WHEREAS, the City has complied with the requirements of the Local Planning and
Zoning Law (Government Code section 65100 et seq.), and the City’s applicable ordinances
and resolutions with respect to approval of amendments to Title 25 of the Palm Desert
Municipal Code (“Zoning Ordinance”); and
WHEREAS, in an effort to comply with Housing Streamlining Laws and anticipated
removal of the discretionary design and site review process for certain housing projects, an
amendment to the City’s Zoning Ordinance regulating and implementing Objective Design
Standards is proposed and attached hereto as Exhibit “A” of this Resolution No. 2863 and
Page 713 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
2
the Palm Desert Multifamily and Mixed-Use Objective Design Standards are attached hereto
as “Exhibit B”; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did
schedule a public hearing on January 16, 2024, to consider the requestion, which was
cancelled due to a lack of quorum; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
February 6, 2024, hold a duly noticed public hearing to consider the project and unanimously
voted to adopt Planning Commission Resolution No. 2852 recommending the City Council
approve the project with modifications; and
WHEREAS, the City Council of the City of Palm Desert, California, did on March 14,
2024, hold a duly noticed public hearing to consider the recommendation of Planning
Commission Resolution No. 2852; and
WHEREAS, at said public hearing, the City Council requested modifications of the
Palm Desert Multifamily and Mixed-Use Objective Design Standards Document which
included several substantial modifications to several standards contained in said Document
which constitute a modification of the Planning Commission recommendation; and
WHEREAS, pursuant to Government Code Section 65837 any modification of the
proposed ordinance or amendment by the City Council not previously considered by the
planning commission during its hearing, shall first be referred to the planning commission for
report and recommendation, but the planning commission shall not be required to hold a
public hearing thereon; and
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
April 2, 2024, hold a meeting to consider the modified ordinance, which includes the City
Council revisions of the Palm Desert Multifamily and Mixed-Use Objective Design Standards
Document; and
WHEREAS, the ZOA modifies the Palm Desert Municipal Code (PDMC) Chapter 25
(Zoning) to change and update land uses and definitions; and
WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the
State California Environmental Quality Act (CEQA) Guidelines (Cal. Code Regs., tit. 14, §
15000 et seq.) and the City of Palm Desert’s (“City’s”) Local CEQA Guidelines, the City is the
lead agency for the Project; and
WHEREAS, the Project has complied with the requirements of the "City of Palm Desert
Procedure for Implementation of CEQA” Resolution No. 2019-41, in that the Director of
Development Services has determined that the Project will not have a foreseeable significant
impact on the environment and that the Project is eligible for an exemption exempt Section
15061(b)(3) General Rule of the CEQA Guidelines; therefore, no further environmental review
is necessary at this time; and
WHEREAS, at the said meeting, upon hearing and considering all testimony and
arguments, if any, of all interested persons desiring to be heard, the Planning Commission
did find the following facts and reasons, which are outlined in the staff report, exist to justify
approval of said request:
Page 714 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
3
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, California, as follows:
SECTION 1. Findings. The Planning Commission hereby finds that:
A. The City of Palm Desert, California (“City”), a municipal corporation duly organized
under the constitution and laws of the State of California; and
B. The Planning and Zoning Law authorizes cities to establish by ordinance the
regulations for land use and development.
SECTION 2. Amendment. The Planning Commission of the City of Palm Desert
recommends that the City Council of the City of Palm Desert, California, approve and adopt the
PDMC amendment to Title 25 as shown in Exhibit “A” and Palm Desert Multifamily and Mixed-
Use Objective Design Standards shown in Exhibit “B” which is attached hereto and
incorporated herewith.
SECTION 3. CEQA. Pursuant to the California Environmental Quality Act (CEQA),
Public Resources Code Section 21000, et. seq., as amended and implementing State CEQA
Guidelines, Title 14, Chapter 3 of the California Code of Regulations (collectively “CEQA”),
the adoption of the Ordinance implementing the objective design standards and the
Multifamily and Mixed-Use Objective Design Standards do not constitute a “project” within
the meaning of Public Resources Code Section 21065, 14 Cal Code Regs. Section
15060(c)(2) or 15378 because it has no potential for resulting in either a direct physical
change in the environment, or a reasonably foreseeable indirect physical change in the
environment. Even if the adoption of the Ordinance implementing the objective design
standards and the Multifamily and Mixed-Use Objective Design Standards document did
constitute a project under CEQA, the objective design standards documents fall within the
“common sense” exemption set forth in 14 Cal. Code Regs. Section 15061(b)(3), excluding
projects where “it can be seen with certainty that there is no possibility that the activity in
question may have a significant effect on the environment…” Therefore, the proposed
objective design standards documents do not warrant further environmental review. This
determination reflects the independent judgement and analysis of the City as the lead agency
for the Amendment.
SECTION 4. Severability. If any section, subsection, subdivision, paragraph,
sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be
unconstitutional or invalid, or ineffective by any court of competent jurisdiction, such decision
shall not affect the validity or effectiveness of the remaining portions of this ordinance or any
part thereof. The Planning Commission hereby declares that it would have passed each
section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective
of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses,
or phrases be declared unconstitutional, invalid, or ineffective.
SECTION 5. Project Recommendation. The Planning Commission hereby
recommends to the Palm Desert City Council approval of Case No. ZOA24-0001 as depicted
in Exhibit A, attached hereto; and
Page 715 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
4
SECTION 6. Execution of Resolution. The Chairperson of the Planning Commission
signs this Resolution, and the Secretary to the Commission shall attest and certify the
passage and adoption thereof.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, California, as follows:
1. That the above recitations are true and correct and constitute the findings for
recommendation by the Planning Commission in this case.
2. That the Planning Commission does hereby recommend approval of Case No.
ZOA24-0001 to the City Council.
ADOPTED ON April 2, 2024.
JOSEPH PRADETTO
CHAIRPERSON
ATTEST:
RICHARD D. CANNONE, AICP
SECRETARY
I, Richard D. Cannone, AICP, Secretary of the City of Palm Desert, hereby certify that
Resolution No. is a full, true, and correct copy, and was duly adopted at a regular meeting of
the Planning Commission of the City of Palm Desert on April 2, 2024 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of Palm Desert, California, on April ___, 2024.
RICHARD D. CANNONE, AICP
SECRETARY
Page 716 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
5
“EXHIBIT A”
ZONING ORDINANCE AMENDMENT
SECTION 1. Amendment to Palm Desert Municipal Code. Palm Desert Municipal
Code Chapter 25.42 is hereby added as follows.
Chapter 25.42
MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
Sections:
25.42.010 – Purpose and intent
25.42.020 – Applicability
25.42.030 – Relationship to other standards and requirements
25.42.040 – Exceptions
25.42.050 – Review and decision
25.42.060 – Appeals
25.42.070 – Post-decision procedure
25.42.010 - Purpose and intent
This chapter is intended to establish and apply objective design standards to new multi-family
residential and mixed- use development projects within the City of Palm Desert where state
law limits the City’s enforcement of design standards to objective standards or where state
law or the Palm Desert Municipal Code requires a ministerial approval process, except for
those projects described in Section 25.42.040. The purpose of this chapter is to:
1. Create high-quality, enforceable objective design standards.
2. Streamline the review and approval process for qualifying residential and mixed-use
projects.
3. Ensure greater certainty for applicants, decision makers, residents, and the public.
4. Enhance the existing character and to maintain compatibility with other established
uses within the City as new development and property improvements occur.
5. Continue to ensure the highest level of design quality while allowing for appropriate
flexibility to create variation as needed.
6. Create objective design standards that involve no personal or subjective judgement,
verifiable by reference to an external and uniform benchmark or criterion.
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PLANNING COMMISSION RESOLUTION NO. 2863
6
7. Facilitate the implementation of the Palm Desert General Plan.
8. Update standards on a timely basis to respond to new legislative actions.
25.42.020 - Applicability
1. The provisions of this chapter shall apply to all new multi-family residential and mixed-
use development projects located within the following zoning districts:
A. Mixed Residential District (R-2).
B. Multifamily Residential District (R-3).
C. Planned Residential District (PR).
D. Office Professional (OP).
E. Planned Commercial (PC).
F. Specialty Commercial Center (PC-1).
G. District Commercial Center (PC-2).
H. Regional Commercial Center (PC-3).
I. Resort Commercial Center (PC-4)
2. The provisions of this chapter shall apply where state law or the Palm Desert Municipal
Code requires a ministerial approval process.
3. The City of Palm Desert Objective Design Standards are hereby adopted and
incorporated by reference herein, and as adopted by City the City Council and
amended from time to time.
25.42.030 - Relationship to other standards and requirements
The City of Palm Desert intends this chapter to establish reasonable, uniform and
comprehensive standards and procedures for multi-family residential and mixed housing
development within applicable areas, consistent with and to the extent permitted under
federal and California State law. The standards and procedures contained in this chapter are
intended to, and should be applied to, protect and promote public health, safety and welfare,
and also balance the benefits that flow from robust, comprehensive housing development
with the city’s local values, which include, without limitation, the aesthetic character of the
City, its neighborhoods and community.
The provisions of this chapter are intended to supersede other chapters and design
guidelines, except as noted below:
1. Standards for Applicable Zoning District. The Objective Design Standards supplement
and are in addition to the development standards for the applicable zoning district in
which a proposed project is located.
2. Subdivision Regulations. Title 26 establishes regulations for the subdivision of land
throughout the City of Palm Desert. Where conflict exists between the Objective
Design Standards and the provisions of Title 26, the Objective Design Standard shall
govern.
3. Relation to Other Regulations. Where a conflict occurs between the requirements of
the Objective Design Standards and other city requirements, the more restrictive
provisions shall apply.
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PLANNING COMMISSION RESOLUTION NO. 2863
7
4. The Objective Design Standards provide language, diagrams, sketches, and graphics
to assist developers and the pub in understanding the standards and how they shall
be applied to qualifying residential projects.
25.42.40 Exceptions
A. Projects seeking to deviate or to not comply with the objective design standards are
required to obtain Design Review approval by the Architectural Review Commission
pursuant to the requirements of Chapter 25.68, prior to obtaining approval by the
Planning Commission.
B. Exempt Housing Projects. The provisions of this chapter are not applicable to:
1. Single-family detached homes.
2. Single-family detached homes as part of a major subdivision.
3. Duplex homes.
4. Accessory dwelling units pursuant to Section 25.34.030.
5. Two-unit projects pursuant to Section 25.34.080.
6. Renovations, additions, or expansions of existing residential buildings.
i. Where an addition or expansion of existing residential multi-family and
mixed use residential is greater than 50%, of the existing floor area, the
site plan shall comply with the Objective Design Standards for
landscaping.
7. Mixed-use projects with less than two-thirds of the building square footage
dedicated to housing.
8. Housing developed within Specific Plans which have adopted objective design
standards as a part of the Specific Plan. If the specific plan silent regarding a
standard, the ODS shall govern.
25.42.50 Review and decision procedure
1. The Director shall be the review authority for any Objective Design Review approval
for projects subject to the objective design standards. Land use approval of any
entitlement required in conjunction of the Objective Design Review shall be made by
the review authority identified in Chapter 25.60 – Procedures.
2. The applicant shall submit all materials required by the Director, including any
materials required by checklists created for the review process.
3. The Director shall evaluate the application based on the project’s conformance with
the objective development and design standards.
4. In approving an Objective Design Review subject to objective design standards, the
Director may impose conditions of approval as deemed necessary to:
a. Ensure that the proposal conforms to the general plan and other applicable
plans, or policies adopted by the City Council and or additional discretionary
approvals.
b. Ensure that the proposal meets the requirements of the zoning district where
the proposal is located, as well as any other applicable provisions of the
Development Code; and
c. Comply with the objective design standards as adopted within, or by reference
in Section 25.42.
Page 719 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
8
25.42.060 – Appeals
The Design Review for Residential projects utilizing objective design standards are evaluated
under a ministerial review process for conformance with this section. The review authority
may restrict or deny a proposed residential design if they determine that the design is not
consistent with the objective design standards. The appeal will be heard by the Planning
Commission and shall be subject to a review by the Architectural Review Commission
consistent with the Design Review process and the requirements of Chapter 25.68.
25.42.070 Post-decision procedures
The procedures and requirements relating to appeals, project revisions, issuance of a building
permit, effective dates, lapse of approval, extensions, and revocations located in Chapter
25.60 – Procedures shall apply following the decision on an application for an Objective
Design Review. To the extent any state law limits the total number of public hearings that
may be held on a project, including appeals, the Planning Commission shall have the
discretion, to refer the appeal directly to the Council for a decision.
SECTION 2. Amendment to Palm Desert Municipal Code. Palm Desert Municipal
Code Section 25.10.030 is hereby amended as follows:
25.10.030 Allowed Land Uses and Permit Requirements
Table 25.10-1 “Use Matrix for Residential Districts” below identifies land uses and
corresponding permit requirements for residential districts and all other provisions of this
title. Descriptions/definitions of the land uses can be found in Chapter 25.99 (Definitions).
The Special Use Provisions column in the table identifies the specific chapter or section
where additional regulations for that use type are located within this title.
Use regulations in the table are shown with a representative symbol by use classification
listing: “P” symbolizes uses permitted by right, “A” symbolizes uses that require approval
of an administrative use permit, “C” symbolizes uses that require approval of a conditional
use permit, and “N” symbolizes uses that are not permitted. Uses that are not listed are
not permitted. However, the Commission may make a use determination as outlined in
Section 25.72.020 (Use Determinations).
Table 25.10-1: Use Matrix for Residential Districts
Residential Zoning District
(P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use
Permit; C=Conditional Use Permit; N=Not Permitted)
RE R-1 R-2 R-3
R-
1M HPR PR
Special Use
Provisions
Residential Uses
Assisted living N C C C N N C
Accessory dwelling unit P P P P P N P 25.34.030
Condominium N N C C N N C 25.42
Dwelling, duplex N N P P N N N
Dwelling, multifamily N N P P N N C 25.10.040.A
/ 25.42
Page 720 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
9
Residential Zoning District
(P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use
Permit; C=Conditional Use Permit; N=Not Permitted)
RE R-1 R-2 R-3
R-
1M HPR PR
Special Use
Provisions
Dwelling, second P P P P N P P 25.34.030
Dwelling, single-family P P P N N P P
Farmworker housing N N N N N N N
Group home P P P N N P P 25.10.040.B
Guest dwelling P P P N N P P
Home-based business P P P P P P P 25.34.020
Junior accessory dwelling unit P P P P P N P 25.34.030
Manufactured home parks N N N N C N N
Planned unit development, residential N N C C N C C 25.10.040.C
Transitional and supportive housing see Note 1 25.42
Agriculture-Related Uses
Apiary P P P N N P P 25.34.170
Botanical conservatory A N N N N N N
Crops and horticulture, limited A N N N N N N
Domestic animals P P P P P P P
Garden, private P P P P P P P
Greenhouse, commercial C N N N N N N
Greenhouse, private P P P A A P P
Horticulture, private P P P P P P P
Kennel C N N N N N C 25.10.040.D
Livestock raising, noncommercial C N N N N N N
Nursery C N N N N N N
Orchard A N N N N N N
Stable, boarding A N N N N N N 25.10.040.E
Stable, private A N N N N N N 25.10.040.E
Recreation, Resource Preservation, Open Space, and Public Assembly Uses
Cemetery N N N N N N C
Community facility N N N N N N C
Club, private N N C C N N C
Crematory N N N N N N N
Day care, large family P P P P P P P
Day care, small family P P P P P P P
Institution, educational2 C C C C C N C
Institution, general2 N N N C N N C
Institution, religious C C C C N N C
Public park P P P P P P P
Recreational use, commercial N N N N N N C 25.10.040.G
Recreational vehicle park N N N N C N C
Recreation facility, commercial N N N N N N N
Recreation facility, incidental C C C C C N C 25.10.040.H
Recreation facility, private P N N P P N P
Recreation facility, public C C C C C N C
Utility, Transportation, Public Facility, and Communication Uses
Electric substation N N N N N N N
Fire station C C C C N N C
Public service facility C C C C C N N
Public utility C C C C C N N
Utility facility N N N N N N C
Retail, Service, and Office Uses
Bed and breakfast C N N C N N N
Commercial parking lot N C N C N N N 25.10.040.I
Condominium hotel, converted N N C C N N C
Page 721 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
10
Residential Zoning District
(P=Permitted; A=Administrative Use Permit; L=Large Family Day Care Use
Permit; C=Conditional Use Permit; N=Not Permitted)
RE R-1 R-2 R-3
R-
1M HPR PR
Special Use
Provisions
Hospital N N C C N N C
Hotel N N N C N N C 25.10.040.J
Neighborhood government office N N C C N N N 25.10.040.K
Office parking lot N C C C N N N 25.10.040.L
Professional office N N C C N N N 25.10.040.M
Resort hotel N N N C N N C 25.10.040.J
Timeshares N N N N N N C
Temporary Uses See Section 25.34.080
Notes:
1. Transitional and supportive housing shall be subject to only those restrictions that
apply to other residential uses of the same type in the same zone.
2. Trade schools are not permitted.
Section 3 – Section 25.10.050
SECTION 3. Amendment to Palm Desert Municipal Code. Palm Desert Municipal
Code Section 25.10.040 is hereby amended as follows:
25.10.040 Specific Use Standards
A. Multifamily. Multifamily dwelling units are permitted within the R-2 district up to a
maximum of 10 dwelling units per acre, or as indicated on the zoning map. Multifamily
dwelling units are permitted within the R-3 district at densities between 7 and 40
dwelling units per acre, or as indicated on the zoning map. All new multifamily uses,
mixed-use residential, and attached condominiums must comply with the requirements
of 25.42 – Objective Design Standards.
SECTION 4. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.16.030 is hereby amended as follows:
25.16.030 Allowed Land Uses and Permit
Requirements
Table 25.16-1 (Use Matrix for Commercial and Industrial Districts) identifies allowed
uses and corresponding permit requirements for commercial and industrial districts and
all other provisions of this title. Descriptions/definitions of the land uses can be found in
Chapter 25.99 (Definitions). The “Special Use Provisions” column in the table identifies
Page 722 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
11
the specific chapter or section where additional regulations for the specific use type are
located within this title.
Use regulations in the table are shown with representative symbols by use classification
listing: “P” symbolizes uses permitted by right, “A” symbolizes uses that require
approval of an administrative use permit, “C” symbolizes uses that require approval of a
conditional use permit, and “N” symbolizes uses that are not permitted. Uses that are
not listed are not permitted. However, the Commission may make a use determination
as outlined in Section 25.72.020 (Use Determinations).
Table 25.16-1: Use Matrix for Commercial and Industrial Districts
Commercial/Industrial District
(P=Permitted; A=Administrative Use Permit; C=Conditional Use
Permit; N=Not Permitted)
OP PC-1 PC-2 PC-3 PC-4 SI
Special Use
Provisions
Residential Uses
Caretaker housing N N N N N P 25.16.040.A
Condominium C C C N C C 25.16.040.B /
25.42
Dwelling, duplex C C C C C C 25.16.040.B
Dwelling, multifamily C C C C C C 25.16.040.B /
25.42
Dwelling, single-family C C C N C C 25.16.040.B
Group home C C N N C C 25.16.040.B /
25.42
Single-room occupancies N N N N N C
Homeless shelter N N N N N P
Recreation, Resource Preservation, Open Space, and Public Assembly Uses
Amusement facility, indoors N N C C C N
Amusement facility, outdoors N N N C C N
Community facility N N N N N P
Day care center N A A A A N
Emergency shelters N P N N N P
Entertainment facility, indoor N N N P P N
Entertainment facility, outdoor N N N P P N
Institution, educational C C C N N C
Institution, general C N C N N C
Institution, religious C N C N N C
Open space (developed or natural) N P P N P N
Recreation facility, commercial N N P P P N
Recreation facility, private N N N P P N
Theater/auditorium N N P P N N
Utility, Transportation, Public Facility, and Communication Uses
Commercial communication tower C C C C C C 25.16.040.C
Commercial parking lot C N N N N N
Public utility installation N N N N N P
Public facility (utility or service) N N N N N P
Utility facility N N C N N P
Retail, Service, and Office Uses
Accessory massage establishment P N P P P N 25.34.160
Adult entertainment N N N N N C 25.16.040.D
Ancillary commercial A P P P N A 25.16.040.E
Page 723 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
12
Commercial/Industrial District
(P=Permitted; A=Administrative Use Permit; C=Conditional Use
Permit; N=Not Permitted)
OP PC-1 PC-2 PC-3 PC-4 SI
Special Use
Provisions
Art gallery A P P P P C
Art studio A P P P P C
Bed and breakfast N A A A A N
Business support services N N N N P P
Cannabis retail N C C C C N 25.34.120
Cannabis testing and research laboratory C N N N N C 25.34.120
Convention and visitors bureau N N P N P N
Drugstore N P P P N N
Financial institution C P P P N N
Grocery store N P P P N N 25.16.040.F
Health club, gyms or studios N A P P P A
Hotel N A A A P N 25.34.070
Independent stand-alone massage N N P P N N 25.34.160
Liquor store N P P P N N
Liquor, beverage and food items shop N P P P P N
Medical, clinic P N P P N N
Medical, office P P P P N N
Medical, hospital N N N N N C
Medical, laboratory P N N N N P
Medical office, accessory N N N N N P 25.16.040.G
Medical, research facility P P N N N C
Mortuary N N N N N P
Office, professional P N P P P P
Office, local government P N N N N P
Office, travel agency P P P P P N
Outdoor sales N N A A A A
Personal services N P P P P N
Restaurant A A A A P A 25.16.040.E /
H
Retail N P P P P N
Retail, bulky items N N N P P N
Spa N N P P P N
Time-share project N N N C C N
Veterinary clinics/animal hospitals A N A A N A
Pet boarding N A A A N A
Automobile and Vehicle Uses
Automotive rental agency N N N N P P
Automotive gasoline station N N C C N C 25.34.090
Automotive service facility N N C C N P 25.34.090
Automotive sales new and used
(outdoor/indoor)
N N N N N C
(outdoor) A
(indoor)
Automotive sales of accessory parts and
supplies
N N N P P N
Vehicle storage facility N N N N N P 25.16.040.I
Industrial, Manufacturing, and Processing
Uses
Cannabis cultivation N N N N N C 25.34.120
Cannabis delivery N N N N N C 25.34.120
Cannabis distribution N N N N N C 25.34.120
Cannabis manufacturing N N N N N C 25.34.120
Industrial planned unit development N N N N N P
Page 724 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
13
Commercial/Industrial District
(P=Permitted; A=Administrative Use Permit; C=Conditional Use
Permit; N=Not Permitted)
OP PC-1 PC-2 PC-3 PC-4 SI
Special Use
Provisions
Light industrial and research and
development
N N N N N P
Maintenance facility N N N N N P
Pest control facility N N N N N P
Preparation of foodstuffs N N N N N P
Production of home and office decor
accessories
N N N N N P
Warehouse or storage facility N N N N N P
Temporary Uses See Section 25.34.080
1 The establishment may be permitted with an administrative use permit but may be
elevated to a conditional use permit at the discretion of the ZA based on: parking, traffic,
or other impacts.
SECTION 5. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.16.040(B) is hereby amended as follows:
B. Residential (mixed use). Residential uses may be established and maintained to be
compatible with the permitted or the approved conditional uses in the vicinity. Residential uses
may be conditionally approved in a mixed-use development subject to a conditional use
permit to review for compatibility with existing use in the vicinity. All new multifamily or mixed-
use developments shall be subject to Chapter 25.42.
SECTION 6. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.60.070 is hereby amended as follows:
25.60.070 Approving Authority
A. Designated approving authority. The approving authority as designated in
Table 25.60-1 (Approving Authority for Land Use Permits/Entitlements) shall approve,
conditionally approve, or deny the proposed land use or development permit or
entitlement in accordance with the requirements of this title. Table 25.60-1 identifies
recommending (R), final (F), and appeal (A) authorities for each permit or entitlement. In
acting on a permit, the approving authority shall make all required findings.
Table 25.60-1: Approving Authority for Land Use Permits/Entitlements
Type of Entitlement, Permit, or Decision ZA Director ARC PC CC
Residential remodels and additions F A A F
Certificates of use and occupancy F A A
Temporary use permits F A A
Home-based business permits F A A
Page 725 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
14
Large family day care use permits F F RR
Adjustments F A F RR
Administrative use permits F F RR
Reasonable accommodation F A F RR
Design Reviews R F A
Objective Design Review F R A2 A
Sign design review R F A
Zoning decision F A A
Use determinations R F A
Precise plans R R1 F A
Development plans R R1 F A
Conditional use permits R R1 F A
Condominium conversion permits R F A
Variances R R1 F A
Planned community developments R R1 R F
Amendments—Zoning ordinance R R F
Amendments—Zoning map R R F
Prezoning for annexed areas R R F
Development agreements R R F
General Plan updates R R F
Director=Director of Community Development, ZA=Zoning Administrator,
ARC=Architectural Review Commission, PC=Planning Commission, CC=City Council,
R=Review Body, F=Final Decision (unless appealed), A=Appeal Body, and
RR=Request Review only.
Footnote:
1. A final determination is made by the ARC for design-related decisions as specified
in Chapter 25.68 (Decisions by the Architectural Review Commission).
2. All appeals of the Director’s Determination shall be made to the Planning Commission
and shall be subject to a discretionary review by the ARC subject to Section 25.68.040
Findings of the ARC, in addition to other appeal findings required by this Title.
SECTION 7. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.68.020 is hereby amended as follows:
25.68.020 Design Review Required
A. Purpose and applicability. Design review allows for specified projects to be
reviewed by the ARC to ensure that design objectives of Palm Desert as specified in the
General Plan are achieved. Design review is required, as follows:
Page 726 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
15
1. Prior to permit issuance. No plan, elevation for buildings or structures, or
alterations shall be approved and no permit shall be issued for any building,
structure, sign, or other development of property or appurtenances or alterations
thereto, except in single-family residential districts and developments subject to
Objective Design Standards requirements of Chapter 25.42, without review and
approval by the ARC.
2. The ARC shall review all plans submitted with applications for moving
buildings within or into the City. Photographs shall be included with the application
showing all elevations, the structure proposed to be moved, the proposed site, and
the buildings adjacent to the proposed site. The ARC shall determine whether the
building proposed to be moved will fit harmoniously into the neighborhood wherein
it is to be located. It may approve, approve with conditions, or disapprove the
issuance of a permit to move such building.
3. The ARC shall review all plans for new two-story residential dwellings and
second story additions within the R-2 Zoning District as required by Table 25.10-3
(Residential Zoning District Development Standards) to ensure second stories are
compatible with surrounding homes including massing, materials, and considers
privacy of adjacent neighbors.
B. The ARC design review shall include the following:
1. The mass and bulk of the design should be reasonably compatible with the
predominant neighborhood pattern. New construction should not be
disproportionately larger than, or out of scale with, the neighborhood pattern in
terms of building forms, roof pitches, eave heights, ridge heights, and entry feature
heights.
2. Placement of windows and doors should have minimal impact to the
neighboring property.
3. Line of sight analysis shall be provided.
4. To mitigate privacy impacts of new two-story homes and additions, tree
and/or shrub planting is required.
a. Applicability. These requirements shall apply to new two -story homes,
two-story additions, and/or new windows on existing two-story homes that
increase privacy impacts on neighboring residents.
5. Planting plan. Proposals for new two-story homes, two-story additions,
and/or new windows on existing two-story homes shall be accompanied by a
planting plan which identifies the location, species and canopy diameter of existing
and proposed trees or shrubs to meet the requirements. (Ord. 1383 § 2, 2022; Ord.
1259 § 1, 2013)
Page 727 of 855
PLANNING COMMISSION RESOLUTION NO. 2863
16
SECTION 8. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.68.030 is hereby amended as follows:
25.68.030 Exceptions to ARC Review
A. Minor modifications. When in the opinion of the ZA, the approval of an
application for a minor or insignificant permit does not defeat the purposes and
objectives of this chapter, they may grant the permit without submitting the matter to the
ARC for its approval, notwithstanding any other provisions of this chapter.
B. Staff’s review of a single-family residence. Department staff shall review
applications for the issuance of a building permit for a dwelling in the single-family and
residential estate zones. The staff, on its own initiative, may forward such a request to
the ARC for action. (Ord. 1393 § 28, 2023; Ord. 1259 § 1, 2013)
C. Multifamily and Mixed-Use Objective Design Standards. New developments
which are subject to Multifamily and Mixed-Use Objective Design Standards shall
comply with the review and decision procedure requirements of Chapter 25.42.
SECTION 9. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.72.030(E) is hereby amended as follows:
E. Review criteria. Any such precise plan of design may be rejected, approved,
modified and approved, or approved subject to conditions. Any such precise plan of
design after approval may be amended, in the same manner as a precise plan of design
is first approved under this chapter. The following criteria apply:
1. In the approval or rejection of a precise plan of design, consideration shall be
given and restrictions shall be imposed to the extent necessary, in view of the size
and shape of the parcel and the present and proposed zoning and use of the subject
property and the surrounding property, to permit the same degree of enjoyment of
the subject property, but subject to the same degree of p rotection of adjoining
properties, as would be accorded in normal circumstances by the standard
restrictions imposed by this chapter. The standard restrictions imposed in the various
zones by this chapter are intended as minimum restrictions necessary in n ormal
circumstances to prevent substantial depreciation of property values in the vicinity
and unreasonable interference with the use and enjoyment of property in the vicinity
by the occupants thereof for lawful purposes, and for the protection of the publ ic
peace, health, safety, and general welfare. “Normal circumstances” are intended to
refer to the case of a permitted case upon a lot of a normal size and shape
surrounded by property in the same zone as the lot in question.
2. If the proposed precise plan of design would substantially depreciate property
values in the vicinity or would unreasonably interfere with the use or enjoyment of
property in the vicinity by the occupants thereof for lawful purposes or would
endanger the public peace, health, safety, or general welfare, such plan shall be
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PLANNING COMMISSION RESOLUTION NO. 2863
17
rejected or shall be so modified or conditioned before adoption as to remove said
objections.
3. If required, the design review approval by the ARC (Section 25.68.020, Design
Review Required), or Objective Design Review approval by the Director (Section
25.42 Multifamily and Mixed-Use Objective Design Standards) must be obtained
prior to the precise plan review by the Commission.
SECTION 9. Amendment to Palm Desert Municipal Code. Palm Desert
Municipal Code Section 25.99.020 is hereby amended to add the following definitions
Objective Design Standards. The most recently adopted Multifamily and Mixed-Use
Objective Design Standards document approved by the City Council.
Mixed-Use. A mixing of uses in a development project either with in a vertical manner with
residential over commercial, retail, office, or institutional uses, or a mixing of uses in a
development project or with neighboring structures.
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City of Palm Desert
Multifamily and Mixed-Use Objective Design Standards (ODS)
03/29/2024
List of Revisions for the Final ODS
The following revisions to the City of Palm Desert Multifamily and Mixed-Use Objective Design Standards reflect
comments from the City Council on March 14,2024.
CHAPTER 3:LANDSCAPE AND OPEN SPACE ODS
Pg 19 Under ODS 3.3.5 a reference was added stating that any Invasive,noxious,and nuisance plant
species and any plant species designated by the weed control regulations in the Federal Noxious
Weed Control and Eradication Act of 2004 and identified on a regional district noxious plant species
control list shall be prohibited.Nuisance plant species shall be prohibited and include,but are not
limited to,the following species:Washingtonia robusta,Dalbergia sissoo and Euphorbia tirucalli.
A footnote was added to the “Desert Museum”Palo Verde option in ODS 3.3.5:“Consider irrigation
practices that better emulate natural conditions or move irrigation lines incrementally over time to
encourage “Desert Museum”Palo Verde roots to grow more robustly and better prevent this species
from falling over.”
Pg.23 The table under ODS 3.9.3 (active amenities)was updated per page 2 of the 3/14/2024 City Council
Meeting Question and Answer Memo.
CHAPTER 4:BUILDING ARCHITECTURE ODS
Pg.27 In ODS 4.2.1 (building wall,maximum length),language was revised so that no building wall shall
exceed 250 feet in length.
An additional building break standard (4.2.3)added:“If a private and/or public vehicular street is
utilized to provide the open-to-the-sky separation,the vehicular street and/or passageway shall
incorporate a minimum five foot sidewalk and adjoining minimum five foot parkway.”
Pg.28 Language revised so that a minimum four out of the 11 options for building modulation (ODS 4.3.1)
must be utilized to be in compliance with the standard.
CHAPTER 5:PARKING ODS
Pg.42 Removed ODS 5.1.1 (and updated the numbering of the following standards)so that there isn’t
language that prohibits surface parking lots in the frontage setback or between buildings and the
public street.
Pg.43 Updated ODS 5.1.2.c to add 42 inches in height along with depth requirements for landscape buffers.
CHAPTER 6:ODS COMPLIANCE CHECKLISTS
Pgs.56,84 A typo under 3.5.2 references “ODS 3.14”which does not exist -revised to say “ODS 3.5.2.”
Pgs.48-75 The Multifamily Compliance Checklist has been updated to reflect the above changes to Chapters
3-5.
Pgs.76-103 The Mixed-Use Compliance Checklist has been updated to reflect the above changes to Chapters 3-5.
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City of Palm Desert CA, Draft March 2024
Multifamily and Mixed-Use
Objective Design Standards
CITY OF PALM DESERT
MARCH 2024
City of Palm Desert CA, Draft March 2024
Page 733 of 855
City of Palm Desert CA, Draft March 2024
ACKNOWLEDGMENTS
City Council
Mayor Kathleen Kelly
Mayor Pro Tem Karina Quintanilla
Council Member Gina Nestande
Council Member Jan Harnik
Council Member Evan Trubee
Planning Commission
Commissioner Nancy DeLuna
Commissioner John Greenwood
Commissioner Ron Gregory
Commissioner Lindsay Holt
Commissioner Joseph Pradetto
Architectural Review Commission
Commissioner James Blakely
Commissioner Dean Wallace Colvard
Commissioner Nicholas Latkovic
Commissioner Michael McAuliffe
Commissioner James McIntosh
Commissioner Francisco Sanchez
Commissioner John Vuksic
City Staff
Richard D. Cannone, AICP, Director of Development Services
Nick Melloni, AICP, Principal Planner
Carlos Flores, Senior Planner
Consultant Team
John Kaliski Architects, Inc.
Tajima Open Design Office
Environmental Science Associates
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City of Palm Desert CA, Draft March 2024
4 BUILDING ARCHITECTURE ODS 25
4.1 Building Height 26
4.2 Building Length 27
4.3 Building Modulation 28
4.4 Building Roofs 31
4.5 Building Materials 33
4.6 Building Openings, Multifamily 34
4.7 Building Openings, Mixed-Use 35
4.8 Building Windows 35
4.9 Building Balconies and Stairwells 36
4.10 Building Utilities 36
4.11 Building Facade Colors 37
4.12 Building Water Drainage Devices 37
4.13 Building Trash/Recycling Bins and Enclosures 38
4.14 Building Design Components 38
5 PARKING ODS 41
5.1 Surface Parking Design 42
5.2 Mechanical Parking 43
5.3 Parking Shelters 44
5.4 Parking Garages 44
5.5 Bicycle Parking 45
6 ODS COMPLIANCE CHECKLISTS 47
Multifamily Compliance Checklist 48
Mixed-Use Compliance Checklist 76
7 GLOSSARY 105
A APPENDIX 109
A-1 Project Outreach 110
A-2 Image Sources 117
TABLE OF CONTENTS
1 INTRODUCTION 1
1.1 What are Objective Design Standards (ODS)? 2
1.2 Palm Desert Setting and Character 3
1.3 Multifamily and Mixed-Use ODS Goals and Objectives 4
1.4 Multifamily and Mixed-Use Housing in Palm Desert 5
1.5 Applicability 6
1.6 How to Use the Standards 7
2 PROJECT SITE ODS 9
2.1 Project Frontage 10
2.2 Project Orientation 10
2.3 Project Fences and Walls 11
2.4 Project Entries 12
2.5 Project Sidewalks and Pathways 13
2.6 Project Curb Cuts, Vehicular 15
2.7 Project Alleys 16
3 LANDSCAPE & OPEN SPACE ODS 17
3.1 Site Landscaping 18
3.2 Landscape Islands 18
3.3 Canopy Trees 18
3.4 Specimen Trees 19
3.5 Shrubs and Perennials 20
3.6 Inorganic Groundcover 21
3.7 Boulders 21
3.8 On-Site Lighting 21
3.9 Passive and Active Amenities 22
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City of Palm Desert CA, Draft March 2024
1 INTRODUCTION
1.1 What are Objective Design Standards (ODS)?
1.2 Palm Desert Setting and Character
1.3 Multifamily and Mixed-Use ODS Goals and Objectives
1.4 Multifamily and Mixed-Use Housing in Palm Desert
1.5 Applicability
1.6 How to Use the Standards
1CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Page 737 of 855
2 Chapter 1: Introduction
City of Palm Desert CA, Draft March 2024
1.1 What are Objective Design Standards (ODS)?
Design standards regulate development intensity,
style, mass, bulk, and orientation. “Objective
design standards” (ODS) are defined under State
of California (State) law as “standards that involve
no personal or subjective judgment by a public
official and are uniformly verifiable by reference
to an external and uniform benchmark or criterion
available and knowable by both the development
applicant or proponent and the public official
prior to submittal” (California Government Code,
Section 65913.4).
The City of Palm Desert (‘City’ or ‘Palm Desert’) has
traditionally relied on a combination of design
guidelines and discretionary design review by
the Architectural Review Commission at regularly
scheduled public meetings to regulate the design
of projects, including housing developments such
as multifamily and mixed-use projects, to ensure
development met community design expectations.
The City has developed objective design standards
to support and guide the development of housing
throughout Palm Desert. The ODS in this policy
must comply with recent State legislation
which has been adopted to reduce obstacles to
housing production and streamline the approval
of projects that include multifamily housing
- projects with buildings that contain three or
more dwelling units, apartments, and mixed-use
projects that include a residential component.
Senate Bill 35 and Senate Bill 330, gone into
effect in 2018 and 2020 respectively, have
disallowed the use of “should” statements that
require additional discretionary review, such as
the review of an architectural review body, if the
prospective project otherwise meets all of the
City’s zoning standards.
Since the adoption of this legislation, multifamily
and mixed-use developments may now only be
approved utilizing quantifiable, measurable, and
objective design standards or “shall” policies.
For instance, a design standard that states, “No
facade shall exceed 36 feet in length without at
least a two-foot planar offset that is a minimum
of six feet in length,” establishes a “yes” or “no”
evaluative criteria for both the applicant or City of
Palm Desert Staff (Staff) that respectively design
or review a prospective project.
Per State legislation, if a project with a
multifamily or mixed-use residential component
meets the criteria of the design standard, all
other objective planning criteria are met, and the
project does not otherwise trigger a discretionary
review (e.g. a tract map review and approval), Staff
must approve the project.
Given the requirements described above, and
that many projects are by-right and do not
require discretionary actions, it is key that the
design values and policies of a city be reflected
in quantifiable design standards that are utilized
by a city’s staff to ministerially approve projects.
The ODS of this policy align with Palm Desert’s
design goals and establish a measurable and
quantifiable basis for ministerial design approvals
that help designers, applicants, and City reviewers
ensure that new multifamily and mixed-use
developments conserve and enhance this
community’s setting and character.
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3CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
1.2 Palm Desert Setting and Character
The City of Palm Desert is situated on a gently
downward-sloping, north-to-south geographic
plane in the Coachella Valley. Set in a low
northwestern extension of the Sonoran Desert,
the City’s climate is warm throughout the year
and hottest from May through October. Days are
typically clear and cloudless with bright sunshine.
Though there is typically little rain, there is
potential for flooding during winter and summer
storms. Strong prevailing winds typically blow in
from west to east from mid-March through mid-
July, and from north to south from mid-November
through mid-February.
The City enjoys views of high mountains to the
south, west, and north, with snow caps visible
at the highest elevations during the winter
months. While water-intensive lawns and non-
native plants do well in the sunny environment,
given increasing water scarcity and long-term
predictions of drought, drought-tolerant and
native fauna increasingly define newer landscapes.
The City’s General Plan, adopted in 2016, defines
and establishes many guiding themes regarding
the design character of future development in this
City’s desert environment. Design-centric goals
from the General Plan that shape this overarching
planning policy document include:
• The protection and enhancement of
natural surroundings.
• Accessibility and connectivity.
• Planning and designing at a moderate
density and scale so that the pedestrian
experience is the primary focus.
More specific General Plan design-oriented goals,
such as high-quality landscaping, walkable block
lengths, neighborhood transitions and scale,
and shaded sidewalks are also addressed by the
design standards found within this policy.
Golf course in Palm Desert.
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4 Chapter 1: Introduction
City of Palm Desert CA, Draft March 2024
1.3 Multifamily and Mixed-Use ODS Goals and Objectives
To achieve a best, safe, comfortable, and
energy-efficient fit between the natural desert
circumstance of Palm Desert and its newer
buildings, landscapes, and human environments,
new multifamily and mixed-use projects shall
be shaped by design standards that incorporate
understandings of this community’s unique
environmental, geographic, and climatic
place factors.
The following objectives to shape the
development of new multifamily and mixed-
use design standards were based upon this
environmental design goal and formulated
through a three-month public outreach process
that included input from local residents, builders,
and members of the Architectural Review
Commission, Planning Commission, and City
Council (See Appendix A-1: Public Outreach).
1. Link new multifamily and mixed-use
structures to the natural environment
through optimized building design that
conserves or opens onto mountain views
from public open spaces and rights-of-way.
2. Create human-scale connectivity between
new multifamily and mixed-use projects,
the outdoor environment, and existing
buildings and neighborhoods through
project design that supports walkability,
alternative transit uses including bicycles
and transit stops, and safe, pedestrian-
oriented sidewalks and pathways.
3. Design building environments with open
space and landscapes that provides shade
and protection from the desert sun and
wind.
4. Orient new multifamily and mixed-
use structures to existing and new
street frontages, sidewalks, and the
prevailing settings of existing districts,
neighborhoods, and buildings.
5. Utilize native and/or drought-tolerant
landscape as an integral design
component of new multifamily and mixed-
use projects, particularly within passive
and active recreational open spaces, along
parkways, pathways and public sidewalks,
at buffers abutting adjacent sites, and at
parking areas.
6. Plant shade trees with each new
multifamily and mixed use project to
reduce the impact of urbanized heat
islands, foster walkability, outdoor
gathering, and comfort.
7. Reflect the local desert environment
through use of architectural details that
provide shelter from direct sunlight
and prevailing winds, as well as use of
materials and colors that are seen in local
natural settings.
The multifamily and mixed-use design standards
of this policy are based upon the above goal and
objectives. Use of this policy’s design standards
by applicants as they plan and design projects
will foster, new building by new building, a
consistently applicable design quality related to
General Plan policies, a greater desert-oriented
integration of architecture with the City’s
desert setting, and increased project-by-project
identity that enhances the value of Palm Desert’s
built environment.
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5CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
1.4 Multifamily and Mixed-Use Housing in Palm Desert
The Palm Desert Municipal Code defines any
project that includes three or more units as
a multifamily development. Home to a range
of multifamily housing types, from triplexes
surrounding the downtown area to medium-
density apartments and higher-intensity planned
developments to the north of the City’s core,
future multifamily residential developments will
best maintain a high-quality standard of design
through use of massing and scale, architectural
components, details, landscape, materials and
colors that grow out of an appreciation of and fit
with the Sonoran Desert surrounds.
The Multifamily Typology Transect (Figure 1)
illustrates a range of housing types that fit the
Palm Desert context, from the Downtown area
with its infill parcels to larger undeveloped
parcels. The transect begins with triplexes and
increases incrementally to include quadplexes,
attached townhomes, then courtyard, garden and
tuck-under apartments, and finally higher-intensity
residential multiplexes that are no taller than
three stories. Any multifamily typology of higher
density is not generally applicable in Palm Desert
unless achieved through allowed housing bonuses
that provide for affordable housing.
Figure 1: Multifamily Typology Transect.
Single-Family Low-Intensity
High-Intensity
High-intensity
multifamily is
not applicable
in Palm Desert.
Duplexes are
not considered
multifamily in
Palm Desert.
TRIPLEX
• Three dwelling units on a lot
• 2-3 stories
• Units may be side-by-side and/or one over the other
TOWNHOMES
• 5+ dwelling units
• 2-3 stories
• Separate single-family dwellings that are closely spaced, semi-attached, or attached
QUADPLEX
• Four dwelling units on a lot
• 2-4 stories
• Units may be side-by-side and/or one over the other
COURTYARD, TUCK-UNDER,
AND GARDEN APARTMENTS
• 2-3 stories
• Parking typically underneath a portion of living spaces in both open and closed configurations or underground
RESIDENTIAL MULTIPLEX, LOW
• 3 stories maximum, up to 35 ft.
• Parking typically at-grade, units may be wrapped in front of parking to hide automobiles
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6 Chapter 1: Introduction
City of Palm Desert CA, Draft March 2024
1.5 Applicability
The ODS of this policy shall apply to Qualifying
Housing Development projects identified by
California Government Code Section 65559.5.
Qualified Housing Developments include:
• Multi-family housing developments.
• Residential Mixed-Use Housing
developments with a minimum of
two-thirds of (⅔) the square footage
designated for residential use.
• Suppor tive and transitional housing
development.
The ODS of this policy shall also apply to said
housing developments located in the following
Palm Desert zoning designations:
• Mixed Residential District (R-2).
• Multifamily Residential District (R-3).
• Planned Residential District (PR).
• Office Professional (OP).
• Planned Commercial (PC).
• Specialty Commercial Center (PC-1).
• District Commercial Center (PC-2).
• Regional Commercial Center (PC-3).
• Resort Commercial Center (PC-4).
The ODS are not applicable to the Downtown
District (D), Downtown Core Overlay District (D.O.),
Downtown Edge District (D.E.), and Downtown
Edge Transition Overlay (D.E.-O) zones, nor do they
apply to single-family homes, duplexes, accessory
dwelling units, or projects approved pursuant to
Senate Bill 9. This policy also does not apply to
non-residential development.
Mixed-use developments, while not a prevalent
typology in Palm Desert, are allowed in multiple
land uses per the City’s General Plan, including
all of the City’s “Centers”, the “Town Center
Neighborhood”, and the “Regional Retail District”
designations. The Mixed-Use Typology Transect
(Figure 2) defines a range of typical mixed-use
building types that may be approved in Palm
Desert, starting with lower-intensity live-work
projects followed by horizontal and vertical
mixed-use typologies. In Palm Desert, the tallest
vertical mixed-use precedent is a five-story
design only permitted at key intersections in the
City Center/Downtown area and not applicable
to this policy.
Figure 2: Mixed-Use Typology Transect.
LIVE/WORK
• 5+ dwelling units on a lot
• 2-3 stories
• A single unit consisting of both a commercial/office and a residential component occupied by the same resident
HORIZONTAL
MIXED-USE
• 2-3 stories
• A development consisting of 2+ attached or detached buildings of different uses within the same project area
VERTICAL
MIXED-USE, LOW
• 3-4 stories, maximum 35 ft.
• Subterranean parking or above-grade parking with architectural treatments to screen cars
VERTICAL
MIXED-USE, MEDIUM
• 5 stories, maximum 60 ft.
• Subterranean parking or above-grade parking with architectural treatments to screen cars
High-intensity
mixed-use is
not applicable
in Palm Desert.
Five-story designs are
only permitted at key
intersections in the
Downtown area and
are not applicable to
this policy.
Low-Intensity High-Intensity
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7CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
If a residential development project with three
or more units, or a mixed-use project with at
least two-thirds (⅔) of the gross floor area square
footage dedicated to housing, or a supportive/
transitional housing project is located in a
Specific Plan area or Overlay District, the ODS
of this policy shall only apply if objective design
standards particular to the Specific Plan or Overlay
District area have not been adopted.
When a design standard of this policy is more
restrictive than a design standard that addresses
the same criteria as noted in Title 25 of the
Municipal Code, then the more restrictive standard
of this policy shall prevail. When a design standard
of this policy is less restrictive than a design
standard that addresses the same criteria as
noted in Title 25 of the Municipal Code, then the
more restrictive standard of the Municipal Code
shall prevail.
1.6 How to Use the Standards
This policy is a primary design reference and tool
to use when designing new multifamily or mixed-
use projects in Palm Desert. The design standards
of this policy assist project applicants and
their designer’s understanding of the minimum
design standards that shall be met. The ODS
are described in Chapters 2-5 and are organized
as follows:
• Chapter 2: Project Site Objective Design
Standards, consisting of project orientation
and frontage requirements.
• Chapter 3: Open Space Objective
Design Standards, defining landscape
requirements, open space amenities, and
fencing and walls bordering project sites.
• Chapter 4: Building Architecture
Objective Design Standards, focusing on
building form, roofscapes, architectural
components, and exterior materials and
colors.
• Chapter 5: Parking Design Standards,
setting criteria for surface parking lots and
parking garages.
All multifamily and mixed-use projects that are
by-right developments shall be in compliance
with these standards. Compliance with the
standards will help ensure a streamlined and
consistent review and approval process by Staff.
The below steps should be followed at the start of
designing new projects.
1. Review the Palm Desert General Plan to
understand the goals and policies for new
development.
2. Review the Palm Desert Municipal Code to
determine the applicable zoning code land
use requirements that will shape the site
and building design.
3. Review the design standards in Chapters
2-5 in this policy to identify the applicable
design standards for a multifamily or
mixed-use project. All ODS in this policy
apply to both multifamily and mixed-use
projects unless otherwise indicated in the
specific standard.
4. Throughout the design process utilize the
applicable checklist in Chapter 7, Objective
Design Standards Compliance Checklists,
to ensure that all design criteria are met
before submission to the City for approval.
To determine compliance with the ODS, Staff will
use the same checklists to consistently review
the City’s design standards in relation to by-right
multifamily and mixed-use residential project
applications. If a project application is determined
to be in compliance with the objective design
standards, Staff will approve or recommend
approval of the project design. An approved
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8 Chapter 1: Introduction
City of Palm Desert CA, Draft March 2024
project design will still be subject to all other
applicable code requirements before a building
permit may be issued.
Should a multifamily or mixed-use project not
comply with one or more of the ODS, the project
applicant may choose to proceed with one of the
following actions:
• Receive an explanation from Staff
regarding the non-compliance, revise the
building design to be in compliance, and
resubmit their application for approval.
• Choose a discretionary review process
and meet with the Architectural Review
Commission for project design approval.
• Withdraw their application.
Discretionary projects require approval from the
Architectural Review Commission. The City of
Palm Desert Director of Development Services
may expand upon and/or regularly update the
objective design standards in this policy as per
their discretion. The removal of any objective
design standards in this policy can only be
decided upon by the Planning Commission or
City Council.
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9CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
2 PROJECT SITE
2.1 Project Frontage
2.2 Project Orientation
2.3 Project Fences and Walls
2.4 Project Entries
2.5 Project Sidewalks and Pathways
2.6 Project Curb Cuts, Vehicular
2.7 Project Alleys
9CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
The intent of the following project site objective design
standards is to enhance the pedestrian experience between
multifamily and mixed-use developments and their public-
facing frontages, prioritizing the orientation of buildings
towards public streets, accessibility from public rights-of-way,
and the versatility of bordering fences and walls.
OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
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10 Chapter 2: Project Site ODS
City of Palm Desert CA, Draft March 2024
2.2 2.2 PROJECT ORIENTATION
2.2.1. Project orientation. Multifamily and mixed-use projects shall
be oriented toward and overlook public streets. To determine
that a multifamily or mixed-use project overlooks the public
street, such projects shall incorporate a minimum of two of
the following project orientation components.
a. A landscaped setback that is a minimum of 20 feet
deep as measured from the frontage property line, or
greater as determined by the setback requirements
in Title 25 of the Palm Desert Municipal Code. The
landscaped setback shall be generally parallel to the
project frontage and incorporate shade trees, planted
a maximum of 30 feet on center, within the first 20
feet of depth along the public street frontage.
b. At least one open space that is a minimum of 20 feet
in depth as measured perpendicular to the public
street, the size of which is in relation to the project’s
total public street frontage length, per the table below.
2.1 2.1 PROJECT FRONTAGE
2.1.1. Maximum frontage length without break. Public street
frontages longer than 450 feet in length shall be separated
by a public or private street, alley, or a minimum 30-foot
wide and open-to-the-sky landscaped open space inclusive
of pedestrian pathways.
Street Frontage Minimum Open Space
Less than or equal to 150 feet 600 square feet
Greater than 150 feet and less
than 450 feet
1,500 square feet
Greater than or equal to 450 feet 20% of the total frontage length
times 25 feet
PUBLIC STREET
longer than 450’
30’ min
Building breaks along the public-facing
street frontage create opportunities for
circulation and connectivity on larger
sites. See ODS 2.1.1.
public or private street, alley, or open space ◄
This multifamily project is oriented
towards and incorporates one open
space facing the public street. See
ODS 2.2.1(b).◄Page 746 of 855
11CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
c. Fences, walls, and/or permanent planter boxes greater
than 42 inches in height shall not exceed 20 percent
of the total length of the public street frontage.
d. At the ground level of buildings generally parallel to
and located within ten feet of a public-street-facing
frontage setback: street-facing and covered pedestrian
entities, stoops, and/or a minimum eight-foot-clear
width and depth porches, open-to-the-air galleries,
recesses, ramadas, and/or open arcades along a
minimum of 20 percent of the public street frontage.
2.3 2.3 PROJECT FENCES AND WALLS
2.3.1. Fence and wall placement. Fences and walls on public-street-
facing lots shall meet the placement requirements correlated
to the project’s lot size, per the table below.
Project Lot Size Fence and Wall Placement Requirements
Less than or equal to 15,000
square feet
No fence, wall, or pedestrian gate shall be
placed within the required front yard setback.
Greater than 15,000 feet and
less than one acre
No fence, wall, or gate shall be placed within
the frontage setback along public streets.
Fences, walls, and gates, placed to the rear
of the frontage setback and greater than 42
inches in height, shall not exceed 60 percent
of the total frontage length as measured along
the setback line.
Greater than or equal to
one acre
No fence, wall, or gate shall be placed within
the frontage setback along public streets.
Fences, walls, and gates, placed to the rear
of the frontage setback and greater than 42
inches in height, shall not exceed 80 percent
of the total frontage length as measured along
the setback line.
Lots in Palm Desert should not appear
to be walled off from the public realm.
See ODS 2.3.1.◄18” min
150’ max
STREET
fence or wall
Modulating a perimeter fence or wall
provides versatility at eye-level so that
pedestrians are not walking alongside
a flat wall. See ODS 2.3.2(b).◄Page 747 of 855
12 Chapter 2: Project Site ODS
City of Palm Desert CA, Draft March 2024
2.3.2. Fence and wall modulation. Fences and walls
shall incorporate at least one of the following
modulation components.
a. Change in material for every 150 lineal feet of fence
or wall.
b. Offset at least 18 inches or incorporate a pilaster not
to exceed the height of the fence or wall by more than
one foot for every 150 lineal feet of fence or wall.
2.3.3. Fence and wall materials. Fences and walls adjoining public
streets or rights-of-way shall be constructed of the following
materials or any combination of the following materials.
a. Aluminum, painted.
b. Brick.
c . Concrete.
d. Metal tube.
e . Stone, face stone, and/or veneer stone.
f. Wrought iron.
Use of corrugated metal for fences is prohibited.
2.3.4. Rear and interior side yard fences and walls. All new
residential construction shall include walls or fences of a
minimum of 5 feet in height enclosing rear and interior
side yards.
2.4 2.4 PROJECT ENTRIES
2.4.1. Publicly visible gate or door. At least one project entry shall
be a publicly visible gate or door that provides direct entry
to a building or open space, open-to-the-air plaza, patio, or
courtyard. This project entry shall be within 60 feet of the
curb of a public street or public vehicular drop off point.
1’ max
150’ max
pilaster
fence or wall
Pilasters segment a perimeter fence
or wall, also providing variety from
the pedestrian perspective. See ODS
2.3.2(b).
◄
Page 748 of 855
13CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
2.4.2. Number of project entries. The number of project entries to
an indoor or outdoor area, lobby, and/or dwelling unit that is
visible from the public street frontage shall be determined
by the total length of public street frontage on a site, per the
table below.
Gates and doors into projects within
close proximity of the public street
create more connectivity into larger
sites. See ODS 2.4.2.◄PUBLIC STREET / VEHICULAR DROP OFF POINT
60’ max
building or open space
gate or door
pedestrian entry
Total Length of Public Street
Frontage
Minimum Number of Project Entries
Less than or equal to 150 feet 1
Greater than 150 feet and less than
450 feet
2
Greater than or equal to 450 feet 2 project entries for each 450 of total
length up to a total length of 1,350
feet, after which there is no additional
project entry requirement.
2.4.3. Pedestrian entrances. A minimum of one pedestrian entrance
to the project shall be provided for each 450 feet of total
frontage along public streets.
2.5 2.5 PROJECT SIDEWALKS AND PATHWAYS
2.5.1. Site connectivity, public sidewalks. All on-site buildings,
entries, facilities, amenities, and vehicular and bicycle
parking areas shall be internally connected by on-site
sidewalks and as-needed pathways that may include use of
the public sidewalk.
2.5.2. Site connectivity, public streets. Intersecting public and
private streets, access drives, drive aisles, alleys, and marked
crosswalks shall link to all public streets adjoining a project.
On-site pathways connect entries
into this multifamily project. See
ODS 2.5.2.◄Page 749 of 855
14 Chapter 2: Project Site ODS
City of Palm Desert CA, Draft March 2024
2.5.3. Sidewalk width. On-site sidewalks shall be at least four feet
in unobstructed width.
2.5.4. Parkways. A minimum five-foot width parkway shall be
provided along at least one side of all on-site sidewalks
and pathways.
2.5.5. Landscape parkways. When an on-site sidewalk or pathway is
provided within a required public street frontage or setback
that is 20 feet or greater in depth, a minimum five-foot width
landscape parkway shall be provided along both sides of the
sidewalk or pathway.
2.5.6. Landscape parkway with ground-floor architectural
component. Notwithstanding ODS 2.13 above, only one
parkway is required at a project when at least one of
the following architectural components is placed along
60 percent of the ground floor building frontage that
adjoins a public street, required front yard, or public street
frontage setback.
a. Stoops.
b. Minimum eight-foot clear depth porches.
c. Arcades, galleries, and/or ramadas.
d. Eight-foot minimum depth recesses.
e. 30-inch minimum depth overhangs, trellises,
and/or awnings.
2.5.7. Driveway access and sidewalks. Vehicular driveways that
access any public right-of-way shall be adjoined by sidewalks
with a four-foot-wide, curb-adjacent landscape area on at
least one side of the vehicular access drive.
Stoops, like the photo above, would
permit buildings to only require one
landscape parkway if the stoops
constitute at least 60 percent of
the ground floor frontage. See ODS
2.5.6(a).◄5’ min
4’ min
5’ min
parkway
sidewalk
parkway
20’ or greater in depth
This diagram shows a four-foot
minimum on-site sidewalk (See ODS
2.5.3) within a public street frontage
that is 20 feet or greater in depth (See
ODS 2.5.5), resulting in a landscape
parkway on both sides of the sidewalk
and increased area for canopy tree
shade.
◄
PUBLIC STREET
Page 750 of 855
15CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
2.6 2.6 PROJECT CURB CUTS, VEHICULAR
2.6.1. Number of curb cuts. The maximum number of curb cuts
permitted on a site shall be determined by the total length of
public street frontage, per the table below.
ground floor architectural component
The arcade in this diagram extends at
least 60% of the ground floor building
frontage and incorporates a shading
element into the building design, which
permits the building to only require
one parkway. See ODS 2.5.6(c). ◄Total Length of Public Street
Frontage
Maximum Number of Curb Cuts
Between 50 and 150 feet 1
Greater than 150 feet 1 curb cut for each 450 feet of public
street frontage
2.6.2. Curb cut width. On sites where the public street frontage is
less than 450 feet in length, the maximum width of a curb
cut shall be no greater than 36 feet.
2.6.3. Curb cut medians. Any site that requires more than a 36-foot
curb cut shall divide the curb cut with a minimum five-foot
width median such that no segment of the cut is more than
36 feet in width.
2.6.4. Curb cuts, parking area. Any curb cut that leads to a parking
area with less than 25 spaces shall be no more than 24 feet
in width.
This multifamily project provides
a landscaped median with signage
in between two curb cuts, which
serve as a vehicular entry and exit
to the project. See ODS 2.6.3.◄Page 751 of 855
16 Chapter 2: Project Site ODS
City of Palm Desert CA, Draft March 2024
2.7 2.7 PROJECT ALLEYS
2.7.1. Alley entry. Projects abutting an alley shall provide all
vehicular access, including service access, from the alley.
2.7.2. Alley parkways. If a new alley greater than 30 feet in width
is provided, at least one minimum five-foot landscaped
parkway shall be provided along 70 percent of the total
length of the alley, exclusive of the length of curb cuts for
driveways, garages, required red curbs for fire access, and
vehicular access aisles.
5’ min
30’ min A five-foot minimum parkway between
the project boundary line adds
landscaping along new alleyways. See
ODS 2.7.2.
◄ALLEY
70% alley length min
landscaped parkway
Page 752 of 855
17CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
3 LANDSCAPE &
3.1 Site Landscaping
3.2 Canopy Trees
3.3 Specimen Trees
3.4 Shrubs and Perennials
3.5 Landscape Islands
3.6 Inorganic Groundcover
3.7 Boulders
3.8 On-Site Lighting
3.9 Passive and Active Amenities
OPEN SPACE
17CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
The intent of the following landscape and open space
objective design standards is to cultivate over time a
pedestrian-oriented open space along the public rights-of-
way adjacent to multifamily and mixed-use developments,
with a visual and natural identity inspired by the surrounding
native landscape of the California Sonoran Desert.
OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Page 753 of 855
18 Chapter 3: Landscape and Open Space ODS
City of Palm Desert CA, Draft March 2024
3.1 3.1 SITE LANDSCAPING
3.1.1. Frontages. All frontages adjoining public and private streets
shall be landscaped.
3.1.2. Setbacks. All front yard, side yard, street-facing side yard, and
rear yard setbacks shall be landscaped.
3.2 3.2 LANDSCAPE ISLANDS
3.2.1. Landscape island dimensions. See ODS 5.1.4.
3.2.2. Landscape islands, end parking stalls. See ODS 5.1.5.
3.3.3. Landscape islands, surface parking. See ODS 5.1.6.
3.3 3.3 CANOPY TREES
3.3.1. Canopy trees at public street-adjoining frontages. A
minimum of one irrigated, 24-inch box tree shall be planted
a maximum of 30 feet on center along frontages adjoining
public streets.
‘Desert Museum’ Palo Verde, a
permitted canopy tree. See ODS
3.3.5.◄Sweet Acacia, a permitted canopy
tree. See ODS 3.3.5.◄3.3.2. Canopy trees at front yards. Where a front yard setback is
required, a minimum of one irrigated, 24-inch box tree shall
be planted for each 900 square feet of setback area, less the
area of any driveways and sidewalks that cross and/or are
within the front yard area.
3.3.3. Canopy trees at on-site surface parking. See ODS 5.1.8.
3.4.4. Canopy tree distribution at on-site surface parking. See
ODS 5.1.9.30’ maxPUBLIC STREET
Frequent canopy trees provide shade
and enhance both the pedestrian
experience and public street frontage.
See ODS 3.3.1.
◄
The selection and balance of canopy
trees and organic and inorganic
groundcover create a landscape
identity for specific to Palm Desert
multifamily and mixed-use projects.◄Page 754 of 855
19CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Texas Ebony, a permitted canopy
tree. See ODS 3.3.5.◄Thornless Cascalote, a permitted
canopy tree. See ODS 3.3.5.◄3.3.5. Canopy tree selection. Along frontages adjoining public streets
and public rights-of-way and yards where canopy trees are
required, utilize a minimum of three species from the following
list and/or approved list of drought resistant canopy trees with no
more than 50 percent of all selected canopy trees comprising the
same species.
a. ‘Desert Museum’ Palo Verde. Parkinsonia (Cercidium) x
‘Desert Museum.’ 1
b. Ironwood. Olneya tesota.
c. Palo Brea. Parkinsonia praecox.
d. Sweet Acacia. Acacia smallii.
e. Texas Ebony. Pithecellobium flexicaule.
f. Thornless Cascalote. Caesalpinia cacalaco ‘Smoothie.’
Any invasive, noxious, and nuisance plant species and any plant
species designated by the weed control regulations in the Federal
Noxious Weed Control and Eradication Act of 2004 and identified
on a regional district noxious plant species control list shall be
prohibited. Nuisance plant species include, but are not limited to:
Washingtonia robusta, Dalbergia sissoo and Euphorbia tirucalli.
3.3.6. Canopy tree shade on sidewalks. Within required frontages and
front yard setbacks with sidewalks and pathways, all canopy trees
shall be planted to cast shade onto the sidewalk for a minimum
of three hours a day during the months of June, July, and August
within five years of planting.
3.43.4 SPECIMEN TREES
3.4.1. Specimen trees at frontage areas. In addition to canopy trees, a
minimum of one irrigated, 24-inch box specimen tree shall be
planted for each 900 square feet of frontage adjoining a public
street and/or right-of-way, exclusive of the area of driveways
and sidewalks.
3.4.2. Specimen tree selection. Select a minimum of two species from
the following list of drought-resistant specimen trees, with no
more than 50 percent of all specimen trees planted in required
frontages adjoining public streets and public rights-of-way
comprising the same species.
a. Smoke Tree. Psorothamnus (Dalea) spinosus.
b. Honey Mesquite. Prosopis glandulosa. Must be a thornless
cultivar inclusive of Prosopis glandulosa ‘Maverick’ or
Prosopis glandulosa ‘AZT.’
c. Soaptree. Yucca elata.
Smoke Tree, a permitted specimen
tree. See ODS 3.4.2.◄Honey Mesquite is a permitted
specimen tree, but must be a
thornless cultivar inclusive of
Prosopis glandulosa ‘Maverick’
or Prosopis glandulosa ‘AZT.’ See
ODS 3.4.2.◄1 Consider irrigation practices that better emulate natural conditions or move irrigation lines incrementally over time
to encourage “Desert Museum” Palo Verde roots to grow more robustly and better prevent this species from falling over.
Page 755 of 855
20 Chapter 3: Landscape and Open Space ODS
City of Palm Desert CA, Draft March 2024
3.5 3.5 SHRUBS AND PERENNIALS
3.5.1. Shrub and perennial groundcover. For each continuous
area of required frontage and/or required front yard area,
all ground surfaces without inorganic groundcover shall be
covered by live plant material within five years of planting.
See ODS 3.6.1.
3.5.2. Shrub and perennial groundcover selection. Select a
minimum of five species from the list of drought-resistant
shrub and perennial groundcover below, with no more than
30 percent of all live plant material in required frontage
areas and/or front yards comprising the same species.
A minimum of three of the selected species shall be
woody plants.
Species Regional Native
GROUNDCOVER
Wild Marigold Baileya multiradiata
Prostrate Acacia Acacia redolens
Flattop Buckwheat Eriogonum fasciculatum v. poliofolium
Germander Sage Salvia chamaedryoides
PERENNIALS
Desert Sand Verbena Abronia villosa
Wild Marigold Baileya multiradiata
Lyreleaf Greeneyes Berlandiera lyrata
Hartweg's Sundrops Calylophus hartwegii
Lanceleaf Coreopsis Coreopsis lanceolata
Golden Dyssodia Dyssodia pentachaeta
California Golden Poppy Eschscholzia californica
Western Sundance Daisy Hymenoxys acaulis
Blackfoot Daisy Melampodium leucanthum
Siskiyou Mexican Evening Primrose Oenothera berlandieri
Tufted Evening Primrose Oenothera caespitosa
Firecracker Penstemon Penstemon eatonii
Superb Penstemon Penstemon superbus
Whitestem Paperflower Psilotrophe cooperi
Desert Globemallow Sphaeralcea ambigua
Mexican Marigold Tagetes lemonii
Plains Zinnia Zinnia grandiflora
Species Regional Native
SHRUBS
Triangle-leaf Bursage Ambrosia deltoidea
White Bursage Ambrosia dumosa
Shadscale Atriplex canescens
Big Saltbush Atriplex lentiformis
Prostrate Coyote Bush Baccharis x ‘Thompson’™
Woolly Butterfly Bush Buddleia marrubifolia
Baja Fairy Duster Calliandra californica
Fairy Duster Calliandra eriophylla
Rubber Rabbitbrush Chrysothamnus nauseosus
Littleleaf Cordia Cordia parviflora
Silver Prairie Clover Dalea bicolor
Black Dalea Dalea frutescens ‘Sierra Negra’
Indigo Bush Dalea pulchra
Brittlebrush Encelia farinosa
Turpentine Bush Ericarmeria laricifolia
Apache Plume Fallugia paradoxa
San Marcos Hibiscus Gossypium harknessii
Desert Lavender Hyptis emoryii
Chuparosa Justicia californica
Creosote Bush Larrea tridentata
Thuder Cloud Sage Leucophyllum candidum ‘Thundercloud’™
Texas Sage Leucophyllum frutescens
Rio Bravo Texas Sage Leucophyllum langmaniae 'Rio Bravo'™
Chihuahuan Sage Leucophyllum laevigatum
Fragrant Sage Leucophyllum pruinosum ’Sierra Bouquet’
Blue Ranger Leucophyllum zygophyllum ‘Cimarron’™
Barbados Cherry Malpighia glabra
Sugar Bush Rhus ovata
Baja Ruellia Ruellia peninsularis
Cleveland Sage Salvia clevelandii
Jojoba Simmondsia chinensis
List of permitted shrub and
perennial groundcover for
multifamily and mixed-use
projects. See ODS 3.5.2.◄◄Wild Marigold, a regional native, is an
example of a permitted groundcover.◄Page 756 of 855
21CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
3.5.3. Use of thorned, serrated-edged, sharp-toothed, or sharp-
edged plant materials. Thorned, serrated-edged, sharp-
toothed, or sharp-edged plant materials shall not be planted
so as to grow within two feet of a sidewalk or pathway and
ten feet from a children’s play area.
3.6 3.6 INORGANIC GROUNDCOVER
3.6.1. Inorganic groundcover. Within required frontages adjoining
public streets and front yard setbacks, a maximum of 50
percent of ground surfaces shall be covered with gravel,
cobble, or boulders.
3.6.2. Gravel and cobble type. Select a minimum of one type of
gravel and one type of cobble with no more than fifty percent
of all surfaces covered in inorganic groundcover comprising
the same material.
3.6.3. Groundcover placement. Shrub and perennial groundcovers
shall be planted next to and not within a bed of cobble.
3.6.4. Inorganic groundcover color. Any inorganic material utilized
within a required frontage adjoining a public street or right-
of-way shall be of a color and value (light versus dark) that
reflects more light than it absorbs.
3.7 3.7 BOULDERS
3.7.1. Required boulders. For each continuous area of parkway and
landscaped setback, locate a minimum of one boulder for
each 500 square feet of landscaped setback area, exclusive of
the area of driveways and sidewalks.
3.7.2. Irregular spacing. Boulders shall be spaced irregularly.
3.7.3. Buried below grade. The bottom third of boulders shall be
buried below grade.
3.8 3.8 ON-SITE LIGHTING
3.8.1. Dark sky compliant. All exterior lighting shall be dark sky
compliant and/or fully shielded.
3.8.2. Fully shielded. Exterior lighting shall be fully shielded
and arranged so that the source of the light can not be
viewed directly.
Flattop Buckwheat, a regional
native groundcover, along a pathway
and adjacent to other shrubs and
perennials.◄This landscape setback along
a public street incorporates
irregularly-spaced shrub and
perennial groundcover as well as
boulders.◄While this landscape uses a variety
of inorganic ground cover, it would
not be permitted if the setback
was along a required public street
frontage or front yard because more
than 50 percent of landscape is
inorganic. See ODS 3.6.1.◄Page 757 of 855
22 Chapter 3: Landscape and Open Space ODS
City of Palm Desert CA, Draft March 2024
3.8.3. Uplighting. Exterior uplighting is prohibited, unless used to
feature an architectural or landscape element pursuant to
Section 24.16.020 of the Palm Desert Municipal Code.
3.8.4. Lighting angle below the horizon. Exterior lighting shall
restrain light from the source to a minimum 30 degrees
below the horizontal plane of the light source.
3.8.5. Pedestrian-oriented lighting, location. Pedestrian-oriented
lighting shall be provided along all on-site sidewalks and
pathways and exterior amenity spaces.
3.8.6. Pedestrian-oriented lighting, placement. Light fixtures shall
be placed along all on-site sidewalks and pathways at a
spacing of no more than 30 lineal feet on center.
3.7.7. Pedestrian-oriented lighting, illumination. On-site sidewalks,
walkways, pathways, and paseos shall be illuminated to
a minimum of 1 foot-candle to ensure safe nighttime
conditions.
3.8.8. Stand-alone exterior lighting. Stand-alone exterior lighting
fixtures shall be a minimum of three feet and a maximum of
14 feet in height.
Number of Dwelling Units (DUs) Number of Required Passive Amenities
Less than 20 DUs 1
Between 20 and 50 DUs 2
Between 51 and 99 DUs 3
100 DUs and greater 4
3.9 3.9 PASSIVE AND ACTIVE AMENITIES
3.9.1. Passive amenities. Projects shall incorporate the minimum
required number of passive amenities per the table below.
Exterior lighting must be placed along
all on-site sidewalks (see ODS 3.8.5),
be between three and 14 feet in height
(see ODS 3.8.8), and have a minimum
30-degree light beam (see ODS 3.8.4).
◄
30’ max
30° min
3’ min 14’ max
Page 758 of 855
23CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
3.9.2. Types of passive amenities. Passive amenities shall be from
the list below. A passive amenity may be used multiple times
and each passive amenity provided counts as one amenity.
a.Gazebo.
b.Passive water amenity, including but not limited to
fountain, waterfall, stream, or pond.
c.Picnic shelter.
d.Seating area(s) with benches and/or loose single chairs
a minimum of 12 feet wide in one dimension and 144
square feet in area per the following requirements.
e.Seating walls a minimum of eight feet in length per
the following requirements.
f.Secured package lockers contained within an
outdoor shelter.
3.9.3. Active amenities. Projects shall incorporate the minimum
required number of active amenities per the table below.
Number of Dwelling Units (DUs) Number of Required
Seating Areas
Less than 20 DUs 1
Between 20 and 50 DUs 2
Between 51 and 99 DUs 3
100 DUs and greater 4
Number of Dwelling Units (DUs) Number of Required
Seating Walls
Less than 20 DUs 1
Between 20 and 50 DUs 2
Between 51 and 99 DUs 3
100 DUs and greater 4
Number of Dwelling Units (DUs)Number of Required Active Amenities
Fewer than 20 DUs 2
Between 20 and 50 DUs 3
Between 51 and 99 DUs 4
Between 100 and 149 DUs 5
150 DUs and greater 6 amenities plus one additional active
amenity for each additional 50 units.
Seating area with loose single
chairs.
Picnic shelter in a multifamily
project courtyard.◄◄Page 759 of 855
24 Chapter 3: Landscape and Open Space ODS
City of Palm Desert CA, Draft March 2024
3.9.4. Types of active amenities. Active amenities shall be from
the list below. A water amenity must be one of the required
number of active amenities. An active amenity may be used
multiple times and each active amenity provided counts as
one amenity.
a. Active water amenity, including but not limited
to a pool, spa, hot tub, splash pad, and/or misting
area (must be one of the required number of
active amenities)
b. Barbecue
c. Clubhouse and/or recreation room that opens onto an
outdoor amenity area
d. Community garden
e. Court game facility
f. Exercise area and/or par course
g. Jogging and/or par course
h. Pet area and/or run and/or wash
i. Play area, children’s
The clubhouse in this multifamily
project opens up to the pool.◄Fenced off pet area in a multifamily
apartment courtyard.◄Children’s play area.◄Bocce ball lawn.◄Page 760 of 855
25CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4 BUILDING ARCHITECTURE
4.1 Building Height
4.2 Building Length
4.3 Building Modulation
4.4 Building Roofs
4.5 Building Materials
4.6 Building Openings, Multifamily
4.7 Building Openings, Mixed-Use
4.8 Building Windows
4.9 Building Balconies and Stairwells
4.10 Building Utilities
4.11 Building Facade Colors
4.12 Building Water Drainage Devices
4.13 Building Trash/Recycling Bins and Enclosures
4.14 Building Design Components
25CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
The intent of the following building architecture objective
design standards is to connect multifamily and mixed-use
projects to the existing natural and physical surrounds,
including but not limited to architectural components and
facade modulation that prioritize shade and the use of
materials and colors that reflect the desert environment.
OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Page 761 of 855
26 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
4.1 4.1 BUILDING HEIGHT
4.1.1. Building height measurement along public streets. The
maximum building height of a multifamily or mixed-use
structure within 150 feet of the curb of a public street shall
be established by a vertical measurement from the average
elevation of the street curb adjacent to the property to the
highest point of the structure, provided that a roof shall be
measured to the highest point of the roof.
4.1.2. Building height measurement adjoining a residential zoned
property. The maximum building height of a multifamily or
mixed-use structure within 150 feet of a residential property
line shall be established by a vertical measurement from
the elevation of the finished grade along the property line
of the residential zoned property or the finished grade along
the property line of the project site, whichever is lower in
elevation, to the highest point of the roof of the structure.
In this diagram, the single-family zoned
property has a lower elevation than
the adjoining multifamily or mixed-
use property. The height of the higher
density building, in order to minimize
the visual impact, is measured from the
finished grade along the property line
of the single-family lot.
Measuring the building height from
the public street is intended to
prevent a building from feeling taller
or “towering” over the public realm,
specifically when the building is
placed near the public street and the
property is at a higher elevation than
the public street.
◄
◄
150’ maxPUBLIC STREET
building height
150’ max
building height
RESIDENTIAL PROPERTY
MULTIFAMILY OR MIXED-USE PROPERTY
4.1.3. Transitional height abutting a single-family zoned property.
When a multifamily or mixed-use building is placed on a lot
that abuts or is across a right-of-way from a R-1, R-1M, R-E,
R-2, or PR regulation properties with a density of PR-10 or
lower property line, the otherwise allowed building height
shall be modulated by an inward-leaning 45-degree angled
plane inclined towards the multifamily or mixed-use building
as measured from a horizontal plane originating 15 feet
above grade at the abutting property line.
Page 762 of 855
27CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.1.4. Maximum building height at public-street-facing frontages.
In addition to the minimum horizontal setbacks otherwise
required by the Municipal Code, the maximum height
of a building abutting a public street frontage shall be
determined by its distance from the street-facing setback
line, per the table below.
Distance from Street-Facing
Setback (feet)
Maximum Building Height
(feet/stories)
Less than or equal to 30 feet 24 feet / 2-stories (w/ flat roof)
Greater than 30 feet Per Municipal Code
R-1, R-1M, R-E, R-2, OR <PR-10 PROPERTYMULTIFAMILY OR MIXED-USE PROPERTY
15’
45°
4.2 4.2 BUILDING LENGTH
4.2.1. Building wall, maximum length. For both new structures and
existing structures with an addition, no building wall shall
exceed 250 feet in length.
4.2.2. Building breaks, open to the sky. When building breaks are
required, a minimum 40-foot open-to-the-sky separation shall
be provided between resulting structures. These open-to-the-
sky building breaks shall provide for landscaped public and
private rights-of-way, courts, passageways, paseos, and/or other
active and/or passive landscaped open spaces.
4.2.3. Building breaks with vehicular street. If a private and/or
public vehicular street is utilized to provide a required open-
to-the-sky separation, the vehicular street shall incorporate
a minimum five foot sidewalk and adjoining minimum five
foot parkway.
The arcade in this diagram extends
at least 60% of the ground floor
building frontage, which permits the
building to only require one parkway.
See ODS 4.1.3. ◄This multifamily project drops
down to a single story at the rear
of the site because of a transitional
height requirement mandating a
transition between the building
and the adjacent single-family
neighborhood.◄Page 763 of 855
28 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
4.3 4.3 BUILDING MODULATION
4.3.1. Building modulation. Buildings shall be broken into major
and minor masses and/or feature architectural modulation
utilizing at least four of the following.
a. Minimum six-foot-clear width ground-level arcades,
open-to-the-air galleries, colonnades, porches,
recesses, ramadas, and trellis structures placed along a
minimum of 80 percent of the ground-floor length of
two building faces.
b. For each 50 feet of building wall length, incorporation
of open-to-the-sky recesses in mass and bulk, or
projections of mass and bulk, that are a minimum of
eight feet in length and three feet in depth.
This diagram shows open-to-the-sky
recesses in the building mass that is
at least three feet deep and eight feet
long every 50 feet of building wall
length. See ODS 4.3.1(b).
If ODS 4.3.1(a) is incorporated
into a project to meet modulation
requirements, a ground-level arcade
along 80 percent of two sides of a
multifamily or mixed-use building as
shown in the diagram is permitted.
◄
◄
ground-level arcade
ground-level arcade
Page 764 of 855
29CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
c. Use of minor building masses contrasted with major
building masses where the wall area of the minor
masses is a maximum of 40 percent of the total
wall area.
d. At the top floor of the building, a minimum six-foot-
clear width setback from the floor immediately below
along at least two sides of the building.
e. Utilization of sun-screening elements, including
sunshades, awnings, and canopies, on windows, doors,
and openings at south- and west-facing building walls.
f. Covered and open-to-the-air balconies where
the area of the projections or recesses of the
balconies constitute a minimum of 15 percent of the
building walls.
g. Roof overhangs or projections that provide a minimum
of eight feet of vertical shaded wall at noon on the
summer solstice.
h. Vertical and irrigated landscaping that is located
within five feet of a wall, screens at least two walls
and 30 percent of the perimeter of the structure,
and achieves per specification a minimum 20 feet of
height after five years of growth.
i. Utilization of two or more building wall materials,
where the first material constitutes a maximum of 30
percent of the building’s total wall area less openings
and is non-cementitious, and a second material
constitutes no more than 70 percent of the total wall
area less openings.
j. Buildings where the building footprint immediately
below the top floor constitutes no more than 80
percent of the building footprint immediately below.
The top floor of multifamily and
mixed-use buildings may be set
back at least six feet on two sides
to achieve a building modulation
requirement. See ODS 4.3.1(d).◄This multifamily project incorporates
sliding wood screens into the facade
design to provide shade. See ODS
4.3.1(e).
This mixed-use project highlights a
base, middle, and top massing by the
use of multiple materials. See ODS
4.3.1(i).◄◄Page 765 of 855
30 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
k. Inclusion of one or more tower elements that are no
more than half the height of the floor-to-floor height
of the tallest building story. The tower element shall
be recessed or projected from the rest of the building
mass by a minimum of two feet.
Two-story buildings that do not front a public street or
public right-of-way are not required to meet the modulation
requirements of this section.
4.3.2. Vehicle entrances. Where vehicle entries are incorporated
into a building wall facing a public street, the facade shall
incorporate two of the following components:
a. A vehicle entrance that is set back a minimum of 20
feet from the back of sidewalk or required setback,
whichever results in the furthest distance from the
public street.
b. Where a pedestrian entrance is provided adjacent
to the garage opening, a minimum five-foot wide
sidewalk leading to the public street and sidewalk.
c. At least one landscaped area, a minimum five feet in
width, adjoining the vehicle access drive and leading
from the public street to the garage entrance.
4.3.3. Upper story floor area limit. The gross area of the top story
of buildings including exterior walls and roof projections and
overhangs shall be a maximum of 80 percent of the floor
immediately below, inclusive of required stair structures,
mechanical and utility penthouses, elevator overrides, towers,
and rooftop common area structures including trellises
and overhangs.
ODS 4.3.1(j) creates modulation of
the building mass by decreasing the
ground floor building square footage
as more floors are added. In this
diagram, the second floor footprint
(orange) is 80 percent less than the
ground floor footprint, and the top floor
footprint is 80 percent less than the
second floor footprint.
◄
80% of ground floor
80% of floor below
This multifamily project incorporates
recessed tower elements that create
modulation in the building mass.
See ODS 4.3.1(k). ◄Page 766 of 855
31CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.4 4.4 BUILDING ROOFS
4.4.1. Roof types. The following roof types, or a combination of the
following roof types, shall be utilized for multifamily and
mixed-use buildings.
a. Butterfly roof.
b. Clerestory roof.
c. Conical roof.
d. Cross-hipped roof.
e. Curved/barrel vaulted roof.
f. Dome roof.
g. Flat roof.
h. Gable roof.
i. Hexagonal roof.
j. Hip and valley roof.
k. Intersecting gable roof.
l. Hip roof.
m. M-shaped roof.
n. Monitor roof.
o. Pyramid hip roof.
p. Sawtooth roof.
q. Skillion roof.
r. Shed roof.
No other roof types or forms are permitted.
80% of the floor immediately below
The top floor of multifamily and
mixed-use buildings is 80 percent of
the footprint of the floor immediately
below. See ODS 4.3.3.◄The use of both flat and pitched
roofs in this multifamily project
adds versatility to the roofline. See
ODS 4.4.1.◄Page 767 of 855
32 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
4.4.2. Roof slopes. The pitch of sloped roofs, other than conical
roofs, curved/barrel vaulted roofs, or dome roofs, shall be no
less than 2:12 and no greater than 4:12.
4.4.3. Sloped roof materials. Sloped roofs shall utilize one of the
following materials.
a. Concrete or lightweight concrete tile.
b. Metal that is non-reflective.
c. Solar panel tiles, solar roof tiles, or solar shingles.
d. Natural tone or slate tile.
e. Terracotta tile or simulated terracotta tile.
4.4.4. Prohibited roof materials. The following roof materials are
not permitted.
a. Asphalt-shingle roofs.
b. Glass roofs or skylights that comprise more than 10
percent of the total gross area of the floor below.
c. Corrugated metal roofing.
4.4.5. Flat roof modulation. Flat roofs shall be modulated vertically
per the table below.
Type of Modulation Multifamily Buildings Mixed-Use Buildings
Flat Roof
Vertical Modulation
A minimum of 42 inches
at least once every
36 feet.
A minimum of 42 inches
at least once every
50 feet.
For every 36 feet in multifamily
building width and every 50 feet in
mixed-use building width, the height
of the building should increase or
decrease by at least 42 inches, not to
exceed the maximum height limit. See
ODS 4.4.5 for flat roof modulation and
ODS 4.1.1-4.1.4 for building height
requirements.
◄42” min
Page 768 of 855
33CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.5 4.5 BUILDING MATERIALS
4.5.1. Building wall materials. A building shall utilize at least two
of the following exterior wall materials.
a. Cementitious or acrylic stucco, or an exterior
insulating and finish system with a cementitious finish.
b. Two stucco textures. If a float finish is utilized for one
of the stucco textures, the second stucco texture shall
be a float or dash finish stucco and shall be utilized at
a minimum of 10 percent of the total wall area.
c. Two stucco colors with at least one of the stucco
colors utilized at a minimum of 10 percent of the total
wall area.
d. Metal panels that are non-reflective.
e. Natural stone or manufactured stone veneer at a
minimum of 10 percent of the total wall area.
f. Terra cotta tile and/or rain screens.
g. Colored precision block, glazed block, face brick, face
stone, split face block, shot blast block, or slump stone
at a minimum of 10 percent of the total wall area.
4.4.6. Greenhouses. Greenhouses that are incorporated into a
multifamily or mixed-use structure and whose total floor
area is 10 percent or less of the total gross floor area of the
building are exempt from the roof type, slope, modulation,
and materials requirements of these design standards.
4.4.7. Parapet return. Parapets that extend beyond the wall plane
due to horizontal building modulation must return and
extend a minimum six feet past the wall plane and inwards
towards the building.
The parapet in this diagram extends
an additional six feet past the wall
plane where the building modulation
extends forward. See ODS 4.4.7.◄This townhome project uses multiple
colors of stucco, metal paneling and
railings, and precision and split face
block. See ODS 4.5.1(a)., 4.5.1(c),
4.5.1(d), and 4.5.1(g).
This multifamily project uses
multiple stucco colors and a face
stone for the entirety of the ground
floor. See ODS 4.5.1(a), 4.5.1(c), and
4.5.1(g).◄◄Page 769 of 855
34 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
4.5.2. Wall material transitions. Transitions between differing
material and colors on the walls of a building facade shall
utilize at least one of the following design methodologies.
a. An inside corner where planes intersect.
b. Utilization of a reveal, projecting band, and or planar
offset to mark the transition between the base, middle,
and top of the building.
c. Use of a building detail, such as a cornice, belt
course, roof projection or eave, and/or habitable or
decorative projections.
d. Utilization of recesses or projections at windows
a minimum of 3 inches in depth at all windows
and openings.
e. An offset in a plane where the material transition or
color occurs with a minimum depth of five inches.
4.5.3. Prohibited building wall materials. 100 percent glass
buildings are prohibited.
4.6 4.6 BUILDING OPENINGS, MULTIFAMILY
4.6.1. Ground-level architectural component, multifamily only.
Multifamily buildings facing public streets shall provide
ground floor porches, ramadas, colonnades, or recesses that
are a minimum of six feet in clear depth and seven feet in
height along a minimum of 30 percent of the building length.
4.6.2. Upper-level glazing, multifamily only. Multifamily buildings
shall provide a minimum 15 percent and a maximum of 30
percent transparent glazing and/or openings at building
walls above the ground level as measured from the finish
floor level to the underside of the floor or roof above.
4.6.3. Openings, multifamily only. For multifamily buildings, the
area of openings in walls above the first level, inclusive
of doors and windows and exclusive of any floor-to-floor
and floor-to-roof wall area shaded by porches, verandas,
arcades, galleries, ramadas, trellises, open-to-the-air
recesses, continuous brise-soleil and other open-to-the-air
architectural screening elements, shall constitute a minimum
of 15 percent and a maximum of 40 percent of the total wall
area above the first level.
This multifamily project uses
multiple building materials through
various transition techniques.
Materials change at the inside
corner of two building planes
intersecting and a belt course
horizontally divides the building
and changes material. See ODS
4.5.2(a) and 4.5.2(c).
The ground level of this multifamily
building is recessed to provide
shade along the street frontage. See
ODS 4.6.1.
This multifamily building keeps the
number of wall openings above the
ground level below 40 percent. See
ODS 4.6.3.◄◄◄Page 770 of 855
35CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.7 4.7 BUILDING OPENINGS, MIXED-USE
4.7.1. Ground-level transparency or frontage component, mixed-use
only. The ground level of mixed-use buildings shall comprise
at least one of the following elements.
a. Glazing at the ground level of walls that face a public
street shall constitute a minimum of 60 percent of the
total wall length and such glazing shall be a minimum
of 8-feet in height.
b. A porch, veranda, arcade, gallery, ramada, projecting
trellis, open-to-the-air recess, and/or permanent
overhang that is a minimum of eight feet in clear
depth along at least 80 percent of the length of any
wall that faces a public street.
4.7.2. Upper-level glazing, mixed-use only. At upper levels of
mixed-use buildings, the total area of glazing shall be a
minimum of 15 percent of the total wall area.
4.7.3. Openings, mixed-use only. The combined surface area of
windows, doors, or other openings inclusive of continuous
glass systems shall comprise no more than 60 percent of the
total wall area of any individual mixed-use building face.
4.8 4.8 BUILDING WINDOWS
4.8.1. Window and door details. Building windows and doors shall
utilize at least two of the following:
a. Three distinct sizes of windows.
b. Shading devices including shutters, exterior blinds,
awnings, brise-soleil, sun screens and/or decorative
architectural details that create a distinct shadow line
at a minimum 60 percent of openings.
c. Recesses or projections a minimum of three inches in
depth at a minimum of 60 percent of all openings.
d. Trim around the opening that is no less than four
inches in width and creates a projection or recess no
less than two inches in depth.
e. Use of metal-clad, thermally-broken metal or steel,
and/or wood windows or doors at all openings.
f. Exterior shades.
More than sixty percent of the
ground level of this mixed-use
building is glazing. See ODS 4.7.1(a).
The glazing at the upper levels of
this mixed-use development is at
least 15 percent of the total wall
area. See ODS 4.7.2.
This multifamily development has
recessed windows of at least three
distinct size. See ODS 4.8.1(a) and
4.8.1(c). ◄◄◄Page 771 of 855
36 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
4.8.2. Windows, storage, utilities, and screening. Where windows
open onto a utility or storage use or occupancy, the window
opening shall be provided with interior or exterior screening
such as an interior or exterior shade, and/or decorative and/
or obscuring glass.
4.9 4.9 BUILDING BALCONIES AND STAIRWELLS
4.9.1. Balcony depth. Balconies shall be a minimum of six feet in
clear depth.
4.9.2. Balcony design. Balconies shall be recessed or shaded by
balconies or roof projections immediately above and/or
by minimum four-foot deep awnings, canopies, ramadas,
recesses, and/or trellises.
4.9.3. Stairwells. All building stairwells shall be internal to the
building or screened by materials with a 50 percent opacity.
4.10 4.10 BUILDING UTILITIES
4.10.1. Electrical utilities. All electrical utility equipment, electrical
meters, and junction boxes shall be placed within a utility
room.
4.10.2. Mechanical and electrical equipment screening. With the
exception of ground-mounted transformers that shall meet
the requirements of the utility provider, all mechanical
equipment, including new and replacement equipment that
is free-standing, and wall mounted equipment, shall be fully
screened from all views by one of the following:
a. Solid parapets and/or walls that are a minimum of
one foot taller than the mechanical equipment as
measured from the roof deck to the highest point of
the equipment.
b. Louvers equipment boxes that are incorporated into
a wall.
c. Walls that are a minimum 50 percent opaque and
that are set within landscape areas that in plan
provide a landscape border a minimum 18 inches
wide around the perimeter of at least two sides of the
equipment pad.
Window mounted equipment is permitted at existing
buildings that include an addition if not visible from any
public street.
The courtyard-facing balconies
in this multifamily development
are shaded by the balconies
immediately above. See ODS 4.9.2.
This project extends a wall surface
and uses landscaping to screen
mechanical equipment. ◄◄Page 772 of 855
37CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.11 4.11 BUILDING FACADE COLORS
4.11.1. Color palette. Building exteriors shall utilize neutral, earth
tone, and/or neutral or earth tone Sonoran Desert regional
colors as published by third parties or the City of Palm
Desert. To demonstrate compliance with this requirement,
applicants shall include samples or printouts of selected
exterior colors with their application, provide a key to color
use on elevation drawings, and provide third party material
and/or color chart(s), brochure(s), web page(s) addresses,
or other publication(s) materials that relate the proposed
building color(s) to a neutral, earth tone, and/or Sonoran
Desert color choice.
4.11.2. Accent colors. A maximum of ten percent of the building
facade area, including but not limited to walls, doors, window
details, cornices, and belt courses, may be with accent colors
not considered a neutral, earth tone, and/or Sonoran Desert
color choice.
4.11.3. Prohibited colors. Except as an accent color or a window,
trim, fence, or gate color, the use of black color on buildings
is prohibited.
4.12 4.12 BUILDING WATER DRAINAGE DEVICES
4.12.1. Water drainage devices, multifamily only. At multifamily
buildings, gutters, downspouts, and other water
drainage components shall utilize one of the following
design methodologies.
a. Remain an unpainted natural metal material.
b. Be painted the same color of the
immediately-adjoining facade.
c. Not be visible from the exterior of the building walls
facing public streets.
4.12.2. Water drainage devices, mixed-use only. At mixed-use
buildings, gutters, downspouts, and other water drainage
components, with the exception of required overflow devices,
shall not be visible from the exterior of the building walls
facing public streets.
This multifamily development uses
a variety of earth tone and neutral
colors. See ODS 4.11.1.
Shades of white and brown are used
in this townhome typology. See ODS
4.11.1.◄◄These townhomes use yellow and
orange accent colors to highlight
minor massing elements within the
design. See ODS 4.11.2.◄Page 773 of 855
38 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
AND ENCLOSURES
4.13 4.13 BUILDING TRASH/RECYCLING BINS
Project Lot Size Trash/Recycling Bin Requirements
Less than or equal to
7,500 square feet
Trash/recycling bins shall be designated, open-to-the-
sky enclosures shall be permitted, but no trash/recycling
bin or enclosure shall be placed in required setbacks or
visible from a public street.
Greater than 7,500
square feet and less
than 22,500 square feet
Trash/recycling bins shall be placed within fully
enclosed structures which may be open to the sky. Trash
enclosures may not be visible from a public street, may
project into a required side or rear yard setback, but
may not be placed within five feet of a property line or
within a setback adjacent to a public street or single-
family designated lot.
Greater than 22,500
square feet
Trash/recycling bins shall be designated, fully enclosed,
may be open to the sky, and shall not be placed within
required setbacks or visible from a public street.
This trash enclosure is located away
from required setbacks and public
streets, and has architectural details
that relate back to the development
it is serving. See ODS 4.13.1.
The buildings of this development
project utilize similar facade
materials and colors. See ODS
4.14.1(b) and 4.14.1(c).
The buildings in this multifamily
project are not identical, but are
similar in proportion and mix-
and-match balconies and recesses
and materials and colors to build
consistency. See ODS 4.14.1(c) and
4.14.1(e).◄◄◄4.13.1. Trash/recycling bin placement. Trash and recycling bins shall
meet the placement requirements correlated to the project’s
lot size per the table below.
4.14 4.14 BUILDING DESIGN COMPONENTS
4.14.1. Architectural continuity. A development project with multiple
buildings shall maintain architectural consistency at all
building and accessory building facades or implement
at least three of the following architectural components
consistently throughout all buildings and accessory buildings
in the project:
a. Consistent use of roof forms and if sloped, roof
materials and coloring at all buildings and
accessory buildings.
b. Consistent use of building overhangs, recesses, and
architectural projections including porches, arcades,
ramadas, galleries and building screening that create
shade at south, east, and west facing facades.
c. Consistent use of facade materials at all buildings and
accessory buildings.
d. Consistent use of color at all buildings and
accessory buildings.
e. Consistent use of proportions and details at 60
percent of building openings.
f. Consistent use of sun shading architectural
components at all buildings visible from a
public street.
Page 774 of 855
39CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.14.2. Inclusion of Palm Desert architectural and landscape
components. In consideration of the desert landscape,
buildings shall incorporate at least four of the following
design components.
a. Buildings oriented on an east-west axis such that the
wall area of both the east and west facades is not
more than 60 percent of the area of the area of south
facing walls.
b. Site walls, building massing, and landscape
windbreaks that protect project open spaces from
west to east prevailing summer winds.
c. Site walls, building massing, and landscape
windbreaks that protect project open spaces from
north to south prevailing winds that occur from mid-
November through mid-February.
d. Covered open-to-the-air arcades, colonnades, galleries,
or other permanent coverings or projections that
provide shade at all building walls visible from
public streets.
e. Overhangs or recesses at building entries that are a
minimum of four feet in clear depth.
f. Minimum 24-inch deep roof eaves.
g. Use of natural stone or veneer stone at a minimum of
10 percent of the total building wall area.
h. Use of recessed windows at a minimum 60 percent
of openings.
i. Use of shade trees at varying distances apart, but in
no case more than 30 feet on center, to shade the
length of east, south, and west facing building walls
visible from a public street.
j. Public street frontages that are a minimum 20 percent
greater than the otherwise required frontage, front
yard, and street-facing side yard requirements.
This multifamily project has
exaggerated roof eaves throughout
the design. See ODS 4.14.2(f).◄This multifamily project accents the
massing at all corners with a veneer
stone. See ODS 4.14.2(g).◄This multifamily project has shade
trees, visible from the public street,
along the project frontage. See ODS
4.14.2(i).◄Page 775 of 855
40 Chapter 4: Building Architecture ODS
City of Palm Desert CA, Draft March 2024
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Page 776 of 855
41CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
5 PARKING
5.1 Surface Parking Design
5.2 Mechanical Parking
5.3 Parking Shelters
5.4 Parking Garages
5.5 Bicycle Parking
41CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
The intent of the following parking objective design
standards is to create landscaping, shade, and pedestrian
circulation at surface parking lots and architectural continuity
between project buildings and parking garages.
OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Page 777 of 855
42 Chapter 5: Parking ODS
City of Palm Desert CA, Draft March 2024
5.1 5.1 SURFACE PARKING DESIGN
5.1.1. Surface parking visibility. All surface parking lots shall
be hidden from the public right-of-way using one of the
following techniques.
a. Locating all surface parking lots behind buildings.
Where more than one building is placed on a lot and
the buildings screen the surface parking, no separation
between buildings screening the surface parking may
be more than 30 feet wide.
b. Locating all surface parking lots behind a fence or wall
that complies with 2.3 Project Fences and Walls.
c. Locating all surface parking lots behind a landscape
buffer a minimum of ten feet in depth and a minimum
42 inches in height that creates a vegetation screen
through the use of bushes, hedges, and trees.
5.1.2. Surface parking along side or rear property lines. Surface
parking areas adjacent to side or rear property lines shall
provide a perimeter landscaped strip at least five feet wide.
5.1.3. Landscape island dimensions. Landscape islands at on-site
surface parking, inclusive of the landscape islands that must
be adjacent to end parking stalls, shall be no less than nine
feet in length and seven feet in width, exclusive of curbs
and landings.
5.1.4. End parking stalls, width. End parking stalls shall be
increased in City-required width by a minimum of 18 inches.
5.1.5. Landscape islands, end parking stalls. All end parking stalls
shall be adjacent to a landscape island.
The length and width of landscape
islands on surface parking lots must
be seven feet excluding curbs and
landings (see ODS 5.1.4) and end
parking stalls must be at least 18
inches wider than the standard stall
width (see ODS 5.1.5).
◄
7’ min (exclusive of curbs/landings)
9’ min (exclusive of curbs/landings)
City-required width plus 18” min
Page 778 of 855
43CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
5.1.6. Landscape islands, surface parking with more than 30 spaces.
For surface parking lots with more than 30 parking spaces, a
minimum 10 percent of the area of a surface parking lot shall
be landscape islands, achieved by one of the following.
a. The use of finger islands at endcaps and a landscape
island every ten parking spaces.
b. A minimum five-foot continuous landscape planter
located within the center of parking rows, running
between endcap finger islands.
5.1.7. Canopy trees at on-site surface parking. Projects shall
incorporate one canopy tree for every three uncovered
parking spaces and one canopy tree for every eight covered
parking spaces.
5.1.8. Canopy tree distribution at on-site surface parking. Canopy
trees at surface parking areas shall be uniformly distributed
across the surface area of the lot so that no parking space is
more than 30 feet from the center of a canopy tree.
5.1.9. Parking space building separation. Parking spaces shall
be separated from buildings by a minimum five-foot wide
pedestrian sidewalk and a minimum five-foot wide landscape
strip, as measured from the curb face.
5.1.10. Pathways, surface lots with more than 50 spaces. For surface
parking areas with more than 50 parking spaces, a minimum
of one publicly-accessible pathway or sidewalk that provides
access across the lot to a public sidewalk is required for each
200 feet of surface parking area fronting a public street.
5.1.11. Pathway enhancements, surface lots with more than 50
spaces. For surface parking areas with more than 50 parking
spaces, enhanced or textured paving or striping shall be
included where pedestrian crossing occurs.
5.2 5.2 MECHANICAL PARKING
5.2.1. Mechanical parking placement. Open-to-the-air mechanical
parking spaces shall not be placed within 20 feet of a public
street frontage.
5.2.2. Mechanical parking screening. Open-to-the-air mechanical
parking spaces placed between 20 to 150 feet from a street
frontage shall be minimally screened from the view of
the public street by walls that are a minimum 15 percent
open or transparent and no more than 40 percent open
or transparent.
Desert Museum Palo Verde canopy
trees are planted in the landscape
islands of this surface parking lot to
increase shade. See ODS 5.1.8.◄The frequency of canopy trees in this
surface parking lot provides more
opportunities for shade. See ODS
5.1.9.◄This mechanical parking is placed
behind the building it is serving so
that it is not visible from the public
street frontage. See ODS 5.2.2.◄This continuous landscape planter
is located in between parking rows.
See ODS 5.1.7(b).◄Page 779 of 855
44 Chapter 5: Parking ODS
City of Palm Desert CA, Draft March 2024
5.2.3. Structures with mechanical parking. The design of fully
enclosed buildings or structures that contain mechanical
parking shall meet the Building Architecture Objective
Design Standards in Chapter 4 of this policy.
5.3 5.3 PARKING SHELTERS
5.3.1. Parking shelter placement. No parking shelter shall be placed
within a required setback.
5.3.2. Parking shelter materials and colors. When visible from a
public right-of-way, parking shelters shall utilize the same
colors and roof materials as the main buildings of a site.
5.3.3. Parking shelter length. No individual parking shelter shall
exceed 65 feet in length.
5.4 5.4 PARKING GARAGES
5.4.1. Architectural continuity, parking garages. Parking garages
and those portions of buildings that incorporate a parking
garage occupancy shall be architecturally treated and meet
the Building Architecture Objective Design Standards in
Chapter 4 of this policy.
5.4.2. Vehicular entry gates. Any vehicular entry gate to a parking
structure shall provide a minimum of 20 feet between the
gate and the back of the sidewalk to minimize conflicts
between sidewalk use by pedestrians and vehicle queuing.
5.4.3. Ground-floor openings at parking garages and utility and
mechanical areas. Openings at parking garages and utility
and mechanical rooms adjoining public street frontages shall
be screened from view by at least one of the following.
a. Vertical landscape and/or climbing vines on metal
screens, and/or wires that cover at least 60 percent of
the openings of any parking deck, and/or mechanical
or utility room opening.
b. Use of decorative, non-reflective metal grills, glass,
or panels with a minimum opacity of 50 percent
that cover at least 60 percent of the openings
of any parking deck, and/or mechanical or utility
room opening.
This covered parking shelter uses
the same orange-red as the main
building facade, seen behind the
shelter.◄Vehicles entering this multifamily
building can queue in the covered
passageway and turn right into
the garage, avoiding blocking the
sidewalk. See ODS 5.4.2.◄Decorative metal grills screen this
parking opening from view along
the street frontage. See ODS 5.4.3(b).◄ ◄
Page 780 of 855
45CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
5.5 5.5 BICYCLE PARKING
5.5.1. Shor t-term bicycle parking. Required bicycle racks for short-
term parking shall be located within 50 feet of at least one
public entrance to a multifamily or mixed-use building.
5.5.2. Long-term bicycle parking. Required long-term bicycle
parking must be covered and secured and shall be located
within 150 feet of at least one entrance to multifamily or
mixed-use building.
This multifamily development
provides uncovered bike racks at the
entrance to the building. See ODS
5.5.1.
This multifamily building provides
a dedicated indoor bicycle storage
room. See ODS 5.5.2.◄◄Page 781 of 855
46 Chapter 5: Parking ODS
City of Palm Desert CA, Draft March 2024
This page is intentionally blank.
Page 782 of 855
47CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
6 ODS
Multifamily Compliance Checklist
Mixed-Use Compliance Checklist
COMPLIANCE CHECKLISTS
47CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Page 783 of 855
48 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
Multifamily Compliance Checklist
The Objective Design Standards (ODS) assist project applicants and designers to achieve multifamily
design objectives. As a project is designed, applicants and designers must utilize the ODS outlined in
Chapters 2-5 of the City of Palm Desert Multifamily and Mixed Use Objective Design Standards, as well
as the Multifamily Compliance Checklist, to determine compliance in advance of submittal and formal
review for compliance by the City.
Applicants must fill out the sections of the following pages and check “compliance” or “not applicable
(N/A)” as appropriate. In cases where an explanation is required, describe how the multifamily project
complies with the ODS or how the ODS is not applicable to the project. If the applicant requires
additional space for any explanation and/or chooses to illustrate compliance to an ODS, attachments may
be submitted along with this form. Once the form is completed, it must be submitted to the City along
with the application submittal package. The City will fill out the sections designated “City use only” in
their review upon the applicant’s submission of this checklist and other application materials.
CITY OF PALM DESERT
PROJECT INFORMATION
CONTACT INFORMATION
Applicant Name:
Please check one.Property Owner
Design Firm/Architect
Representative
Other (please specify):
Engineer
Email:
Phone:
Proposed Project Name:
Date:
CITY USE ONLY
OVERALL COMPLIANCE FINDING
City Comments (Optional):Reviewed by:
YES: NO:
Date:
Page 784 of 855
49CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
MULTIFAMILY PROJECT SITE DESIGN
New multifamily projects shall meet all of the below Project Site
standards per Chapter 2 of the City of Palm Desert Multifamily and
Mixed Use Objective Design Standards policy.
CITY USE ONLY
2.1. PROJECT FRONTAGE 2.1. PROJECT FRONTAGE
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.1.1.Max. frontage length without break. 30’ wide
open-to-the-sky landscaped open space
separating public-facing street frontages
longer than 450’.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
2.2. PROJECT ORIENTATION 2.2. PROJECT ORIENTATION
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.2.1.Project orientation. Select a minimum of two
of the following:
a. Min. 20’ deep landscaped setback,
parallel to project frontage, with
30’ on-center shade trees within
the first 20’ of depth along public
street frontage.
b. Min. one, 20’ in depth open space,
sized according to the table in
Section 2.2b.
c. Max. 42” fences, walls, and/or
permanent planter boxes to not
exceed 20% of total public street
frontage length.
d. Use of a ground-level design
component listed in Section
2.2d within 10’ of public-street-
facing frontage setback and
along min. 20% of the total
public-street-facing frontage.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 785 of 855
50 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
2.3. PROJECT FENCES AND WALLS 2.3. PROJECT FENCES AND WALLS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.3.1.Fence and wall placement. Select the
appropriate placement requirement from the
options below.
a. Project lot size < 15,000 SF: no fence,
wall, or gate placed within required
front-yard setback.
b. Project lot size greater than 15,000
SF and less than 1 acre: no fence,
wall, or gate placed within frontage
setback along public streets. Fences,
walls, and gates greater than 42”
and behind frontage setback not to
exceed 60% of frontage length.
c. Project lot size > 1 acre: no fence,
wall, or gate placed within frontage
setback along public streets. Fences,
walls, and gates greater than 42”
and behind frontage setback not to
exceed 80% of frontage length.
2.3.2.Fence and wall modulation. Select one of
the following:
a. Change in material every 150’ of
fence wall.
b. Offset every 18” or pilaster every 150’
of fence wall.
2.3.3.Fence and wall materials. Select fence or wall
material(s) used.
a. Aluminum, painted.
b. Brick.
c . Concrete.
d. Metal tube.
e . Stone, face stone, and/or
veneer stone.
f. Wrought iron.
2.3.4.Rear and interior side yard fences and
walls. Min. 5’ height for all fences and walls
enclosing rear and interior side yards.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 786 of 855
51CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
2.4. PROJECT ENTRIES 2.4. PROJECT ENTRIES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.4.1.Publicly visible gate or door. Min. 1 publicly
visible gate or door that provides direct entry
to a building or open space, within 60’ of the
curb of a public street or public vehicular drop
off point.
2.4.2.Number of project entries. Select the
appropriate minimum number of project
entries requirement from the options below.
a. Public street frontage < 150 ft.: min. 1
project entry.
b. Public street frontage greater than
150 ft. and less than 450 ft: min. 2
project entries.
c. Public street frontage > 450 ft: 2
project entries for each 450 of
total length up to a total length of
1,350 feet.
2.4.3.Pedestrian entrances. Min. 1 for each 450’
total frontage along public streets.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 787 of 855
52 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
2.5. PROJECT SIDEWALKS AND PATHWAYS 2.5. PROJECT SIDEWALKS
AND PATHWAYS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.5.1.Site connectivity, public sidewalks. All on-
site buildings, entries, facilities, amenities,
and vehicular and bicycle parking areas are
internally connected by on-site sidewalks and
as-needed pathways.
2.5.2.Site connectivity, public streets. Intersecting
public and private streets, access drives, drive
aisles, alleys, and marked crosswalks link to all
public streets adjoining the project.
2.5.3.Sidewalk width. On-site sidewalks are a min. 5’
in unobstructed width.
2.5.4.Parkways. Min. 5’ width, provided along
at least one side of all on-site sidewalks
and pathways.
2.5.5 Landscape parkways. Min. 5’ width, provided
along both sides of the sidewalk or parkway
if on-site sidewalk or pathways is provided
within a required public street frontage or
setback that is > 20’ in depth.
2.5.6.Landscape parkway with ground-floor
architectural component. Min. 1 parkway
required if at least one of the architectural
components is placed along 60% of the
ground floor building frontage that adjoins
a public street, required front yard, or public
street frontage setback.
a. Stoops
b. Min. 8’-clear depth porches
c. Arcades, galleries, and/or ramadas
d. Min. 8’ depth recesses
e. Min. 30” depth overhangs, trellises,
and/or awnings
2.5.7.Driveway access and sidewalks. Vehicular
driveways that access any public right-of-way
are adjoined by sidewalks with a 4’ wide, curb-
adjacent landscape area on at least one side
of the vehicular access drive.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 788 of 855
53CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
2.6. PROJECT CURB CUTS, VEHICULAR 2.6. PROJECT CURB CUTS, VEHICULAR
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.6.1.Number of project entries. Select the
appropriate requirement from the
options below.
a. Public street frontage between 50 and
150 ft: max. 1 curb cut.
b. Public street frontage greater than
450 ft: max. 1 curb cut for each 450’
of public street frontage.
2.6.2.Curb cut width. Max. 36’ width curb cut
if public street frontage is less than 450’
in length.
2.6.3.Curb cut medians. If site requires more than a
36’ curb cut, it is divided with a min. 5’ width
median such that each segment of the curb
cut is a max. 36’ in width.
2.6.4.Curb cuts, parking area. Max. 24’ in width if
curb cut leads to a parking area with less than
25 parking spaces.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
2.7. PROJECT ALLEYS 2.7. PROJECT ALLEYS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.7.1.Alley entry. Projects abutting an ally provide
all vehicular access from the alley.
2.7.2.Alley parkways. If a new alley >30’ in width
is provided, at least 1, min. 5’ landscaped
parkway provided along 70% of the total
length of the alley, exclusive driveway curb
cut lengths, garages, required red curbs for fire
access, and vehicular access aisles.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 789 of 855
54 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
MULTIFAMILY LANDSCAPE AND OPEN SPACE DESIGN
New multifamily projects shall meet all of the below Project Landscape
and Open Space standards per Chapter 3 of the City of Palm Desert
Multifamily and Mixed Use Objective Design Standards policy.
CITY USE ONLY
3.1. SITE LANDSCAPING 3.1. SITE LANDSCAPING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.1.1.Frontages. All frontages adjoining public and
private streets are landscaped.
3.1.2.Setbacks. All front yard, side yard, street-
facing side yard, and rear yard setbacks
are landscaped.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
3.3. CANOPY TREES 3.3. CANOPY TREES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.3.1.Canopy trees at public street-adjoining
frontages. Min. 1 irrigated, 24” box tree
planted a max. 30’ on center along frontages
adjoining public streets.
3.3.2. Canopy trees at front yards. Where front yard
setback is required, min. 1 irrigated, 24” box
tree planted for each 900 SF of setback area.
3.3.5. Canopy trees selection. Select a min. 3 of the
following species utilized along frontages
adjoining public streets and public right-of-
ways, with no more than 50% of all selected
canopy trees comprising of the same species.
a. ‘Desert Museum’ Palo Verde.
Parkinsonia (Cercidium) x
‘Desert Museum.’
b. Ironwood. Olneya tesota.
c. Palo Brea. Parkinsonia praecox.
d. Sweet Acacia. Acacia smallii.
e. Texas Ebony.
Pithecellobium flexicaule.
f. Thornless Cascalote. Caesalpinia
cacalaco ‘Smoothie.’
CANOPY TREES CONTINUES ON THE NEXT PAGE
Page 790 of 855
55CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
3.3. CANOPY TREES (CONT.)3.3. CANOPY TREES (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.3.5.Canopy tree shade on sidewalks. All canopy
trees planted within required frontages
and front yard setbacks with sidewalks and
pathways cast shade on the sidewalk for a
min. 3 hours a day during the months of June,
July, and August within 5 years of planting.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
3.4. SPECIMEN TREES 3.4. SPECIMEN TREES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.4.1. Specimen trees at frontage areas. Min. 1
irrigated, 24” box specimen tree planted for
each 900 SF of frontage adjoining a public
street and/or right-of-way.
3.4.2.Specimen trees selection. Select a min. 2 of
the following species, with no more than
50% of all selected specimen trees planted
in required frontages adjoining public streets
and public right-of-ways comprising the
same species.
a. Smoke Tree. Psorothamnus
(Dalea) spinosus.
b. Honey Mesquite. Prosopis glandulosa.
Must be a thornless cultivar inclusive
of Prosopis glandulosa ‘Maverick’ or
Prosopis glandulosa ‘AZT.’
c. Soaptree. Yucca elata.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 791 of 855
56 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
3.5. SHRUBS AND PERENNIALS 3.5. SHRUBS AND PERENNIALS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.5.1.Shrub and perennial groundcover. Ground
surfaces in required frontages without
inorganic groundcover are covered by live
plant material within 5 years of planting.
3.5.2.Shrub and perennial groundcover selection.
Select min. 5 species from list of drought-
tolerant shrub and perennial groundcover in
ODS 3.5.2., with max. 30% of all live plant
material comprising of the same species and a
min. 3 selected species are woody plants.
3.5.3.Use of thorned, serrated-edged, sharp-toothed,
or sharp-edged plant materials. Planted more
than 2’ from a sidewalk or pathway and more
than 10’ from a children’s play area.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
3.6. INORGANIC GROUNDCOVER 3.6. INORGANIC GROUNDCOVER
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.6.1.Inorganic groundcover. Max. 50% ground
surfaces within required frontages adjoining
public streets and front yard setbacks covered
with gravel, cobble, or boulders.
3.6.2.Gravel and cobble type. Min. 1 type of gravel
and min. 1 type of cobble with max. 50% of all
surfaces comprising the same material.
3.6.3.Groundcover placement. Planted next to and
not within a bed of cobble.
3.6.4.Inorganic groundcover color. Inorganic
material utilized within a required frontage
adjoining a public street or right-of-way shall
be of a color and value that reflects more light
than it absorbs.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 792 of 855
57CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
3.7. BOULDERS 3.7. BOULDERS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.7.1.Required boulders. Min. 1 boulder for each
500 SF of continuous area of parkway and
landscaped setback area.
3.7.2.Irregular spacing. Boulders are
spaced irregularly.
3.7.3.Buried below grade. Bottom third of boulders
are buried below grade.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
3.8. ON -SITE LIGHTING 3.8. ON-SITE LIGHTING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.8.1.Dark-sky compliant. Exterior lighting is dark-
sky compliant and/or fully shielded.
3.8.2.Fully shielded. Exterior lighting is fully
shielded and arranged so that light source
cannot be viewed directly.
3.8.3.Uplighting. Prohibited, unless used to feature
an architectural or landscape element
pursuant to Section 24.16.020 of the Palm
Desert Municipal Code.
3.8.4.Lighting angle below the horizon. Exterior
lighting restrains light from source to a min.
30° below horizontal plane of light source.
3.8.5.Pedestrian-oriented lighting, location.
Provided along all on-site sidewalks and
pathways and exterior amenity spaces.
3.8.6.Pedestrian oriented lighting, placement.
Spaced a max. 30 lineal feet on center.
3.8.7.Pedestrian-oriented lighting, illumination. Min.
1’ candle on all on-site sidewalks, walkways,
pathways, and paseos.
3.8.8.Stand-alone exterior lighting. Min. 3’ and max.
14’ in height.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 793 of 855
58 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
3.9. PASSIVE AND ACTIVE AMENITIES 3.9. PASSIVE AND ACTIVE AMENITIES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.9.1.Passive amenities. Select the appropriate
requirement per the options below.
a. Less than 20 DUs: min. 1 required
passive amenity
b. Between 20-50 DUs: min. 2 required
passive amenities
c. Between 51-99 DUs: min. 3 required
passive amenities
d. 100 DUs and greater: min. 4 required
passive amenities
3.9.2.Types of passive amenities. Select from the list
below.
a. Gazebo
b. Passive water amenity
c. Picnic shelter
d. Seating area(s) with benches and/
or loose chairs a min. 12’ wide in
one dimension and 144 SD in area
per below:
i. Less than 20 DUs: 1 required
seating area
ii. Between 20-50 DUs: 2 required
seating areas
iii. Between 51-99 DUs: 3 required
seating areas
iv. 100 DUs and greater: 4 required
seating areas
e. Seating walls a min. 8’ in length
per below:
i. Less than 20 DUs: 1 required
seating wall
ii. Between 20-50 DUs: 2 required
seating walls
iii. Between 51-99 DUs: 3 required
seating walls
iv. 100 DUs and greater: 4 required
seating walls
PASSIVE AND ACTIVE AMENITIES CONTINUES ON THE NEXT PAGE
Page 794 of 855
59CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
3.9. PASSIVE AND ACTIVE AMENITIES (CONT.)3.9. PASSIVE AND ACTIVE
AMENITIES (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.9.3.Active amenities. Select the appropriate
requirement per the options below.
a. Fewer than 20 DUs: min. 2
active amenities
b. Between 20-55 DUs: min. 3
active amenities
c. Between 51-99 DUs: min. 4
active amenities
d. Between 101-149 DUs: min. 5
active amenities
e. 150 DUs and greater: min. 6 plus one
additional active amenity for each
additional 100 units
3.9.4.Types of passive amenities. Select from the list
below, one of which must be an active water
amenity.
a. Active water amenity
b. Barbecue
c. Clubhouse and/or recreation
room that opens onto an outdoor
amenity area
d. Community garden
e. Court game facility
f. Exercise area and/or par course
g. Jogging and/or par course
h. Pet area and/or run and/or wash
i. Play area, children’s
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 795 of 855
60 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
MULTIFAMILY BUILDING ARCHITECTURE DESIGN
New multifamily projects shall meet all of the below Building
Architecture standards per Chapter 4 of the City of Palm Desert
Multifamily and Mixed Use Objective Design Standards policy.
CITY USE ONLY
4.1. BUILDING HEIGHT 4.1. BUILDING HEIGHT
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.1.1.Building height measurement along public
streets. Max. building height within 150’ of
the curb of a public street is established by
a vertical measurement from the average
elevation of the street curb adjacent to the
property to the highest point of the structure.
4.1.2.Building height measurement adjoining a
residential zoned property. Max. building
height within 50’ of a residential zoned
property line is established by a vertical
measurement from the elevation of the
finished grade along the property line of the
residential zoned property or the finished
grade along the property line of the project
site, whichever is lower in elevation, to the
highest point of the roof of the structure.
4.1.3.Transitional height abutting a single-family
zoned property. If building abuts or is across
a right-of-way from a single-family zoned
property, the allowed building height is
modulated by an inward-leaning 45° angled
plane inclined towards the building as
measured from a horizontal plane originating
15’ above grade at the abutting property line.
4.1.4.Maximum building height at public-street-
facing frontages. Select the appropriate
requirement per options below.
a. Building distance from street-facing
setback is < 30 ft: max. building
height is 24’ and 2-stories with
flat roof
b. Building distance from street-facing
setback is > 30 ft: max. building
height per Municipal Code
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 796 of 855
61CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.2. BUILDING LENGTH 4.2. BUILDING LENGTH
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.2.1.Building wall, maximum length. Max. 250’
in length.
4.2.2.Building breaks, open to the sky. Min. 30’
open-to-the-sky separation provided when
building breaks are required, programmed
as either public/private rights-of-way, courts,
passageways, paseos, and/or other active and/
or passive landscaped open spaces.
4.2.3.Building breaks with vehicular street. Min.
5’ sidewalk and min. 5’ adjoining parkway
if building break utilizes a public or private
vehicular street.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 797 of 855
62 Chapter 6: Compliance Checklists
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CITY USE ONLY
4.3. BUILDING MODULATION 4.3. BUILDING MODULATION
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.3.1.Building modulation. Select at least four of
the following.
a. Min. 6’ clear width ground-level
arcades, open-to-the-air galleries,
colonnades, porches, recesses,
ramadas, and trellis structures placed
along a min. 80% ground floor length
of two building faces.
b. Min. 8’ length and min. 3’ depth
open-to-the-sky recesses for each 50’
of building wall length.
c. Major and minor massing, with wall
area of the minor massing a max.
40% of total wall area.
d. Min. 6’ clear width setback of top
floor along at least 2 sides of
the building.
e. Sun-screening elements on windows,
doors, and openings at south- and
west-facing building walls.
f. Min. 15% of building
walls are covered and
open-to-the-air balconies.
g. Roof overhangs or projections that
provide a min. 8’ of vertical shaded
wall at noon on the summer solstice.
h. Vertical and irrigated landscaping
located within 5’ of a wall, screens
min. 2 walls and 30% of structure
perimeter, and min. 20’ height after 5
years of growth.
i. Min. 2 wall materials, first material
a max. 30% of total wall area and
second material a max. 70% of total
wall area.
j. Building footprint immediately below
top floor is max. 80% of the building
footprint immediately below.
k. Min. 1 tower element that is max.
half of the floor-to-floor height
of the tallest building story, and
recessed or projected from the rest
of the building mass by a min. 2’.
BUILDING MODULATION CONTINUES ON THE NEXT PAGE
Page 798 of 855
63CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
BUILDING MODULATION (CONT.)BUILDING MODULATION (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.3.2.Vehicle entrances. If vehicle entries are
incorporated into a building wall facing
a public street, select at least two of
the following.
a. Vehicle entrance set back a min.
20’ from the back of sidewalk or
required setback, whichever results
in the furthest distance from the
public street.
b. Where a pedestrian entrance is
provided adjacent to the garage
opening, a min. 5’ wide sidewalk
leading to the public street
and sidewalk.
c. Min. one, 5’ width landscaped area
adjoining the vehicle access drive
and leading from the public street to
the garage entrance.
4.3.3.Upper story floor area limit. Top story gross
area of buildings are a max. 80% of the floor
immediately below.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 799 of 855
64 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.4. BUILDING ROOFS 4.4. BUILDING ROOFS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.4.1.Roof types. Select from the options below.
a. Butterfly roof
b. Clerestory roof
c. Conical roof
d. Cross-hipped roof
e. Curved/barrel vaulted roof
f. Dome roof
g. Flat roof
h. Gable roof
i. Hexagonal roof
j. Hip and valley roof
k. Intersecting gable roof
l. Hip roof
m. M-shaped roof
n. Monitor roof
o. Pyramid hip roof
p. Sawtooth roof
q. Skillion roof
r. Shed roof
4.4.2.Roof slopes. Pitch of sloped roofs, other than
conical, curved/barrel vaulted, or dome roofs,
is min. 2:12 and max. 4:12.
4.4.3.Sloped roof materials. Select one.
a. Concrete or lightweight concrete tile.
b. Metal that is non-reflective.
c. Solar panel tiles, solar roof tiles, or
solar shingles.
d. Natural tone or slate tile.
e. Terracotta tile or simulated
terracotta tile.
4.4.4.Prohibited roof materials. Asphalt-shingle
roofs, glass roofs or skylights comprising of
more than 10% of the total gross area of the
floor below, and corrugated metal roofing are
not utilized in the project.
4.4.5.Flat roof modulation. Modulate the roof
vertically a min. 42” at least once every 50’.
BUILDING ROOFS CONTINUES ON THE NEXT PAGE
Page 800 of 855
65CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.4. BUILDING ROOFS (CONT.)4.4. BUILDING ROOFS (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.4.6.Greenhouses. Exempt from roof type, slope,
modulation, and materials requirements if
total floor area of the greenhouse is < 10% of
the total gross floor area of the building.
4.4.7.Parapet return. Parapets that extend beyond
the wall plane must return and extend a min.
6’ past the wall plane and inwards towards
the building.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
4.5. BUILDING MATERIALS 4.5. BUILDING MATERIALS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.5.1.Building wall materials. Select at least two of
the following.
a. Cementitious or acrylic stucco, or an
exterior insulating and finish system
with a cementitious finish.
b. 2 stucco textures. If a float finish
is utilized for one of the stucco
textures, the second stucco texture
is a float or dash finish stucco and
utilized for a min. 10% of the total
wall area.
c. 2 stucco colors with min. 1 of the
stucco colors utilized at a min. 10%
of the total wall area.
d. Non-reflective metal panels.
e. Natural stone or manufactured stone
veneer at a min. 10% of the total
wall area.
f. Terra cotta tile and/or rain screens.
g. Colored precision block, glazed block,
face brick, face stone, split face block,
shot blast block, or slump stone at a
min. 10% of the total wall area.
BUILDING MATERIALS CONTINUES ON THE NEXT PAGE
Page 801 of 855
66 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.6. BUILDING OPENINGS 4.6. BUILDING OPENINGS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.6.1.Ground-level architectural component. Min.
6’ clear depth and min. 7’ height along a min.
30% of the building length.
4.6.2.Upper-level glazing. Min. 15% and max.
30% transparent glazing and/or openings at
building walls above the ground level.
4.6.3.Openings. Min. 15% and max. 40% of total
wall area above the first level.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
4.5. BUILDING MATERIALS (CONT.)4.5. BUILDING MATERIALS (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.5.2.Wall material transitions. Select at least
one of the following methodologies when
transitioning between different materials
and colors.
a. An inside corner where
planes intersect.
b. A reveal, projecting band, and/or
planar offset to mark the transition
between the base, middle, and top of
the building.
c. Use of a building detail and/or
habitable or decorative projections.
d. Utilization of recesses or projections
at windows a min. 3” in depth at all
windows and openings.
e. An offset in a plane where the
material transition or color occurs
with a min. 5” depth.
4.5.3.Prohibited wall materials. Project is not a
100% glass building.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 802 of 855
67CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.8. BUILDING WINDOWS 4.8. BUILDING WINDOWS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.8.1.Window and door details. Select at least two
of the following.
a. 3 distinct window sizes.
b. Shading devices that create a
distinct shadow line at a min. 60%
of openings.
c. Recesses or projections a min. 3” in
depth at a min. 60% of all openings.
d. Min. 4”-width trim around opening
that creates a projection or recess no
less than 2” in depth.
e. Use of metal-clad, thermally-broken
metal or steel, and/or wood windows
or doors at all openings.
f. Exterior shades.
4.8.2.Windows, storage, utilities, and screening.
Interior or exterior screening for windows
that open onto a utility or storage use
or occupancy.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
4.9. BUILDING BALCONIES AND STAIRWELLS 4.9. BUILDING BALCONIES
AND STAIRWELLS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.9.1.Balcony depth. Min. 6’ in clear depth.
4.9.2.Balcony design. Recessed or shaded by
balconies or roof projections immediately
above and/or by min. 4’ deep awnings,
canopies, ramadas, recesses, and/or trellises.
4.9.3.Stairwells. Internal to the building, screened
by materials with a 50% opacity.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 803 of 855
68 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.10. BUILDING UTILITIES 4.10. BUILDING UTILITIES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.10.1.Electrical utilities. Electrical utility equipment,
electrical meters, and junction boxes placed
within a utility room.
4.10.2.Mechanical and electrical equipment
screening. Except for ground-mounted
transformers, all mechanical equipment
is fully screened from all views by one of
the following:
a. Solid parapets and/or walls
that are a min. 1’ taller than the
mechanical equipment.
b. Louvers equipment boxes
incorporated into a wall.
c. Min. 50% opaque walls that are set
within landscape areas, that in plan
provide a min. 18” wide landscape
border around the perimeter of at
least 2 sides of the equipment pad.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
4.11. BUILDING FACADE COLORS 4.11. BUILDING FACADE COLORS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.11.1.Color palette. Neutral, earth tone, and/or
neutral or earth tone Sonoran Desert regional
colors, samples or printouts of which attached
to the application and key to color use on
elevation drawings.
4.11.2.Accent colors. Max. 10% building facade may
be a color not considered neutral, earth tone,
and/or Sonoran Desert color choice.
4.11.3.Prohibited colors. Black is only used as an
accent color or a window, trim, fence, or
gate color.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 804 of 855
69CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.12. BUILDING WATER DRAINAGE DEVICES 4.12. BUILDING WATER
DRAINAGE DEVICES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.12.1.Water drainage devices. Gutters, downspouts,
and other water drainage components are not
visible from the exterior building walls facing
public streets, be an unpainted neutral metal
material, or be pained the same color of the
immediately-adjoining facade.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
4.13. BUILDING TRASH/RECYCLING BINS AND ENCLOSURES 4.13. BUILDING TRASH/RECYCLING BINS
AND ENCLOSURES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.13.1.Trash/recycling bin placement. Select the
appropriate requirement per options below.
a. Lots < 7,500 SF: trash/recycling bins
are designated, open-to-the-sky
enclosures permitted, but no trash/
recycling bin or enclosure placed in
required setbacks or visible from the
public street.
b. Lots 22,500 SF > 7,500 SF: trash/
recycling bins placed within fully
enclosed structures that may be
open to the sky, are not visible from
a public street, may project into a
required side or rear yard setback
but not placed within 5’ of a property
line or within a setback adjacent to a
public street or single-family lot.
c. Lots > 22,500 SF: trash/recycling bins
are designated, fully enclosed, may
be open to the sky, but not placed
within required setbacks or visible
from a public street.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 805 of 855
70 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.14. BUILDING DESIGN COMPONENTS 4.14. BUILDING DESIGN COMPONENTS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.14.1.Architectural continuity. Development projects
with multiple buildings maintain architectural
consistency through at least three of
the following.
a. Consistent use of roof forms and if
sloped, roof materials and coloring at
all buildings and accessory buildings.
b. Consistent use of building overhangs,
recesses, and architectural
projections including porches,
arcades, ramadas, galleries and
building screening that create
shade at south, east, and west
facing facades.
c. Consistent use of facade materials at
all buildings and accessory buildings.
d. Consistent use of color at all
buildings and accessory buildings.
e. Consistent use of proportions
and details at min. 60% of
building openings.
f. Consistent use of sun shading
architectural components at all
buildings visible from a public street.
BUILDING DESIGN COMPONENTS CONTINUES ON THE NEXT PAGE
Page 806 of 855
71CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.14. BUILDING DESIGN COMPONENTS (CONT.)4.14. BUILDING DESIGN
COMPONENTS (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.14.2.Inclusion of Palm Desert architectural and
landscape components. Select at least four of
the following.
a. Buildings oriented on an east-west
axis such that the wall area of both
the east and west facades is a max.
60% of the area of the area of south
facing walls.
b. Site walls, building massing, and
landscape windbreaks that protect
project open spaces from west to
east prevailing summer winds.
c. Site walls, building massing,
and landscape windbreaks that
protect project open spaces from
north to south prevailing winds
that occur from mid-November
through mid-February.
d. Covered open-to-the-air arcades,
colonnades, galleries, or other
permanent coverings or projections
that provide shade at all building
walls visible from public streets.
e. Overhangs or recesses at building
entries that are a min. 4’ in
clear depth.
f. Min. 24” deep roof eaves.
g. Use of natural stone or veneer stone
at a min. 10% the total building
wall area.
h. Use of recessed windows at a min.
60% of openings.
i. Use of shade trees at varying
distances apart, but in no case more
than 30’ on center, to shade the
length of east-, south-, and west-
facing building walls visible from a
public street.
j. Public street frontages that are a
min. 20% greater than the otherwise
required frontage, front yard, and
street-facing side yard requirements.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 807 of 855
72 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
MULTIFAMILY PARKING DESIGN
New multifamily projects shall meet all of the below Parking standards
per Chapter 5 of the City of Palm Desert Multifamily and Mixed Use
Objective Design Standards policy.
CITY USE ONLY
5.1. SURFACE PARKING DESIGN 5.1. SURFACE PARKING DESIGN
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.1.1.Surface parking visibility. Select one of the
following.
a. All surface parking lots are behind
buildings. When more than 1
building is placed on a lot and
the buildings screen the surface
parking, a max. 30’ wide separation
between buildings screening the
surface parking.
b. All surface parking lots behind a
fence or wall.
c. All surface lots behind a min.
10’ depth and min. 42” in height
landscape buffer using bushes,
hedges, and trees.
5.1.2.Surface parking along side or rear property
lines. Min. 5’ width perimeter landscape strip
along surface parking areas adjacent to side or
rear property lines.
5.1.3.Landscape island dimensions. Min. 9’ length
and 7’ width, exclusive of curbs and landings.
5.1.4.End parking stalls, width. Increased in City-
required width by min. 18”.
5.1.5.Landscape islands, end parking stalls.
All end parking stalls are adjacent to a
landscaped island.
5.1.6.Landscape islands, surface parking with more
than 30 spaces. Min. 10% of lot is landscape
islands by one of the following.
a. Use of finger islands at endcaps
and a landscape island every 10
parking spaces.
b. Min. 5’ continuous landscape planter
located within the center of parking
rows, running between endcap
fingers and islands.
5.1.7.Canopy trees at on-site surface parking. Min.
1 canopy tree for every 3 uncovered parking
spaces and 1 canopy tree for every 8 covered
parking spaces.
SURFACE PARKING DESIGN CONTINUES ON THE NEXT PAGE
Page 808 of 855
73CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
5.1. SURFACE PARKING DESIGN (CONT.)5.1. SURFACE PARKING DESIGN (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.1.8.Canopy tree distribution at on-site surface
parking. Uniformly distributed across surface
are of lot so that no parking space is more
than 30’ from the center of a canopy tree.
5.1.9.Parking space building separation. Min.
5’ pedestrian sidewalk and min. 5’ wide
landscape strip measured from the curb face
separating parking spaces from buildings
5.1.10.Pathways, surface lots with more than 50
spaces. Min. 1 publicly-accessible pathway or
sidewalk that provides access across the lot
to a public sidewalk for each 200’ of surface
parking area fronting a public street.
5.1.11.Pathway enhancements, surface lots with
more than 50 spaces. Enhanced or textured
paving or striping included where pedestrian
crossing occurs.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
5.2. MECHANICAL PARKING 5.2. MECHANICAL PARKING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.2.1.Mechanical parking placement. Open-to-the-
air mechanical parking placed more than 20’
from a public street frontage.
5.2.2.Mechanical parking screening. Open-to-the-air
mechanical parking spaces placed between
20’-150’ from a street frontage are minimally
screened from view of the public street by
walls that are a min. 15% open/transparent
and max. 40% open/transparent.
5.2.3.Structures with mechanical parking. Fully
enclosed buildings with mechanical parking
meet the Building Architecture ODS in Chapter
4 of the Multifamily and Mixed-Use Objective
Design Standards policy.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 809 of 855
74 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
5.3. PARKING SHELTERS 5.3. PARKING SHELTERS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.3.1.Parking shelter placement. No parking shelters
within required setbacks.
5.3.2.Parking shelter materials and colors. When
visible from a public right-of-way, parking
shelters are the same colors and roof
materials as the main buildings of a site.
5.3.3.Parking shelter length. Max. 65’ in length.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
5.4. PARKING GARAGES 5.4. PARKING GARAGES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.4.1.Architectural continuity, parking garages.
Parking garages are architecturally treated
and meet the Building Architecture ODS in
Chapter 4 of the Multifamily and Mixed-Use
Objective Design Standards policy.
5.4.2.Vehicular entry gates. Min. 20’ between gate
and back of the sidewalk.
5.4.3.Ground-floor openings at parking garages and
utility and mechanical areas. Screen parking
garages and utility/mechanical room openings
from public street frontages with one of
the following.
a. Vertical landscape and/or climbing
vines on metal screens, and/or
wires that cover a min. 60% of
the openings.
b. Decorative, non-reflective metal
grills, glass, or panels with a min.
50% opacity that covers a min. 60%
of the openings.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 810 of 855
75CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
5.5. BICYCLE PARKING 5.5. BICYCLE PARKING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.5.1.Short-term bicycle parking. Required bicycle
racks located within 50’ of at least 1 public
building entrance.
5.5.2.Long-term bicycle parking. Required bicycle
racks are covered and secured, located within
150’ of at least one building entrance.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
FINAL APPLICANT COMMENTS (OPTIONAL)FINAL CITY COMMENTS (OPTIONAL)
Page 811 of 855
76 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
Mixed-Use Compliance Checklist
The Objective Design Standards (ODS) assist project applicants and designers to achieve mixed-use
design objectives. As a project is designed, applicants and designers must utilize the ODS outlined in
Chapters 2-5 of the City of Palm Desert Multifamily and Mixed Use Objective Design Standards, as well as
the Mixed-Use Compliance Checklist, to determine compliance in advance of submittal and formal review
for compliance by the City.
Applicants must fill out the sections of the following pages and check “compliance” or “not applicable
(N/A)” as appropriate. In cases where an explanation is required, describe how the mixed-use project
complies with the ODS or how the ODS is not applicable to the project. If the applicant requires
additional space for any explanation and/or chooses to illustrate compliance to an ODS, attachments may
be submitted along with this form. Once the form is completed, it must be submitted to the City along
with the application submittal package. The City will fill out the sections designated “City use only” in
their review upon the applicant’s submission of this checklist and other application materials.
CITY OF PALM DESERT
PROJECT INFORMATION
CONTACT INFORMATION
Applicant Name:
Please check one.Property Owner
Design Firm/Architect
Representative
Other (please specify):
Engineer
Email:
Phone:
Proposed Project Name:
Date:
CITY USE ONLY
OVERALL COMPLIANCE FINDING
City Comments (Optional):Reviewed by:
YES: NO:
Date:
Page 812 of 855
77CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
MIXED-USE PROJECT SITE DESIGN
New mixed-use projects shall meet all of the below Project Site
standards per Chapter 2 of the City of Palm Desert Multifamily and
Mixed Use Objective Design Standards policy.
CITY USE ONLY
2.1 PROJECT FRONTAGE 2.1 PROJECT FRONTAGE
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.1.1.Max. frontage length without break. 30’ wide
open-to-the-sky landscaped open space
separating public-facing street frontages
longer than 450’.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
2.2 PROJECT ORIENTATION 2.2 PROJECT ORIENTATION
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.2.1.Project orientation. Select a minimum of two
of the following:
a. Min. 20’ deep landscaped setback,
parallel to project frontage, with
30’ on-center shade trees within
the first 20’ of depth along public
street frontage.
b. Min. one, 20’ in depth open space,
sized according to the table in
Section 2.2b.
c. Max. 42” fences, walls, and/or
permanent planter boxes to not
exceed 20% of total public street
frontage length.
d. Use of a ground-level design
component listed in Section
2.2d within 10’ of public-street-
facing frontage setback and
along min. 20% of the total
public-street-facing frontage.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 813 of 855
78 Chapter 6: Compliance Checklists
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CITY USE ONLY
2.3 PROJECT FENCES AND WALLS 2.3 PROJECT FENCES AND WALLS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.3.1.Fence and wall placement. Select the
appropriate placement requirement from the
options below.
a. Project lot size < 15,000 SF: no fence,
wall, or gate placed within required
front-yard setback.
b. Project lot size greater than 15,000
SF and less than 1 acre: no fence,
wall, or gate placed within frontage
setback along public streets. Fences,
walls, and gates greater than 42”
and behind frontage setback not to
exceed 60% of frontage length.
c. Project lot size > 1 acre: no fence,
wall, or gate placed within frontage
setback along public streets. Fences,
walls, and gates greater than 42”
and behind frontage setback not to
exceed 80% of frontage length.
2.3.2.Fence and wall modulation. Select one of
the following:
a. Change in material every 150’ of
fence wall.
b. Offset every 18” or pilaster every 150’
of fence wall.
2.3.3.Fence and wall materials. Select fence or wall
material(s) used.
a. Aluminum, painted.
b. Brick.
c . Concrete.
d. Metal tube.
e . Stone, face stone, and/or
veneer stone.
f. Wrought iron.
2.3.4.Rear and interior side yard fences and
walls. Min. 5’ height for all fences and walls
enclosing rear and interior side yards.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 814 of 855
79CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
2.4 PROJECT ENTRIES 2.4 PROJECT ENTRIES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.4.1.Publicly visible gate or door. Min. 1 publicly
visible gate or door that provides direct entry
to a building or open space, within 60’ of the
curb of a public street or public vehicular drop
off point.
2.4.2.Number of project entries. Select the
appropriate minimum number of project
entries requirement from the options below.
a. Public street frontage < 150 ft.: min. 1
project entry.
b. Public street frontage greater than
150 ft. and less than 450 ft: min. 2
project entries.
c. Public street frontage > 450 ft: 2
project entries for each 450 of
total length up to a total length of
1,350 feet.
2.4.3.Pedestrian entrances. Min. 1 for each 450’
total frontage along public streets.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 815 of 855
80 Chapter 6: Compliance Checklists
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CITY USE ONLY
2.5 PROJECT SIDEWALKS AND PATHWAYS 2.5 PROJECT SIDEWALKS
AND PATHWAYS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.5.1.Site connectivity, public sidewalks. All on-
site buildings, entries, facilities, amenities,
and vehicular and bicycle parking areas are
internally connected by on-site sidewalks and
as-needed pathways.
2.5.2.Site connectivity, public streets. Intersecting
public and private streets, access drives, drive
aisles, alleys, and marked crosswalks link to all
public streets adjoining the project.
2.5.3.Sidewalk width. On-site sidewalks are a min. 5’
in unobstructed width.
2.5.4.Parkways. Min. 5’ width, provided along
at least one side of all on-site sidewalks
and pathways.
2.5.5 Landscape parkways. Min. 5’ width, provided
along both sides of the sidewalk or parkway
if on-site sidewalk or pathways is provided
within a required public street frontage or
setback that is > 20’ in depth.
2.5.6.Landscape parkway with ground-floor
architectural component. Min. 1 parkway
required if at least one of the architectural
components is placed along 60% of the
ground floor building frontage that adjoins
a public street, required front yard, or public
street frontage setback.
a. Stoops
b. Min. 8’-clear depth porches
c. Arcades, galleries, and/or ramadas
d. Min. 8’ depth recesses
e. Min. 30” depth overhangs, trellises,
and/or awnings
2.5.7.Driveway access and sidewalks. Vehicular
driveways that access any public right-of-way
are adjoined by sidewalks with a 4’ wide, curb-
adjacent landscape area on at least one side
of the vehicular access drive.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 816 of 855
81CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
2.6 PROJECT CURB CUTS, VEHICULAR 2.6 PROJECT CURB CUTS, VEHICULAR
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.6.1.Number of project entries. Select the
appropriate requirement from the
options below.
a. Public street frontage between 50 and
150 ft: max. 1 curb cut.
b. Public street frontage greater than
450 ft: max. 1 curb cut for each 450’
of public street frontage.
2.6.2.Curb cut width. Max. 36’ width curb cut
if public street frontage is less than 450’
in length.
2.6.3.Curb cut medians. If site requires more than a
36’ curb cut, it is divided with a min. 5’ width
median such that each segment of the curb
cut is a max. 36’ in width.
2.6.4.Curb cuts, parking area. Max. 24’ in width if
curb cut leads to a parking area with less than
25 parking spaces.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
2.7 PROJECT ALLEYS 2.7 PROJECT ALLEYS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
2.7.1.Alley entry. Projects abutting an ally provide
all vehicular access from the alley.
2.7.2.Alley parkways. If a new alley >30’ in width
is provided, at least 1, min. 5’ landscaped
parkway provided along 70% of the total
length of the alley, exclusive driveway curb
cut lengths, garages, required red curbs for fire
access, and vehicular access aisles.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 817 of 855
82 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
MIXED-USE LANDSCAPE AND OPEN SPACE DESIGN
New mixed-use projects shall meet all of the below Project Landscape
and Open Space standards per Chapter 3 of the City of Palm Desert
Multifamily and Mixed Use Objective Design Standards policy.
CITY USE ONLY
3.1. SITE LANDSCAPING 3.1. SITE LANDSCAPING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.1.1.Frontages. All frontages adjoining public and
private streets are landscaped.
3.1.2.Setbacks. All front yard, side yard, street-
facing side yard, and rear yard setbacks
are landscaped.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
3.3. CANOPY TREES 3.3. CANOPY TREES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.3.1.Canopy trees at public street-adjoining
frontages. Min. 1 irrigated, 24” box tree
planted a max. 30’ on center along frontages
adjoining public streets.
3.3.2. Canopy trees at front yards. Where front yard
setback is required, min. 1 irrigated, 24” box
tree planted for each 900 SF of setback area.
3.3.5. Canopy trees selection. Select a min. 3 of the
following species utilized along frontages
adjoining public streets and public right-of-
ways, with no more than 50% of all selected
canopy trees comprising of the same species.
a. ‘Desert Museum’ Palo Verde.
Parkinsonia (Cercidium) x
‘Desert Museum.’
b. Ironwood. Olneya tesota.
c. Palo Brea. Parkinsonia praecox.
d. Sweet Acacia. Acacia smallii.
e. Texas Ebony.
Pithecellobium flexicaule.
f. Thornless Cascalote. Caesalpinia
cacalaco ‘Smoothie.’
CANOPY TREES CONTINUES ON THE NEXT PAGE
Page 818 of 855
83CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
3.3. CANOPY TREES (CONT.)3.3. CANOPY TREES (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.3.5.Canopy tree shade on sidewalks. All canopy
trees planted within required frontages
and front yard setbacks with sidewalks and
pathways cast shade on the sidewalk for a
min. 3 hours a day during the months of June,
July, and August within 5 years of planting.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
3.4. SPECIMEN TREES 3.4. SPECIMEN TREES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.4.1. Specimen trees at frontage areas. Min. 1
irrigated, 24” box specimen tree planted for
each 900 SF of frontage adjoining a public
street and/or right-of-way.
3.4.2.Specimen trees selection. Select a min. 2 of
the following species, with no more than
50% of all selected specimen trees planted
in required frontages adjoining public streets
and public right-of-ways comprising the
same species.
a. Smoke Tree. Psorothamnus
(Dalea) spinosus.
b. Honey Mesquite. Prosopis glandulosa.
Must be a thornless cultivar inclusive
of Prosopis glandulosa ‘Maverick’ or
Prosopis glandulosa ‘AZT.’
c. Soaptree. Yucca elata.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 819 of 855
84 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
3.5. SHRUBS AND PERENNIALS 3.5. SHRUBS AND PERENNIALS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.5.1.Shrub and perennial groundcover. Ground
surfaces in required frontages without
inorganic groundcover are covered by live
plant material within 5 years of planting.
3.5.2.Shrub and perennial groundcover selection.
Select min. 5 species from list of drought-
tolerant shrub and perennial groundcover in
ODS 3.5.2., with max. 30% of all live plant
material comprising of the same species and a
min. 3 selected species are woody plants.
3.5.3.Use of thorned, serrated-edged, sharp-toothed,
or sharp-edged plant materials. Planted more
than 2’ from a sidewalk or pathway and more
than 10’ from a children’s play area.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
3.6. INORGANIC GROUNDCOVER 3.6. INORGANIC GROUNDCOVER
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.6.1.Inorganic groundcover. Max. 50% ground
surfaces within required frontages adjoining
public streets and front yard setbacks covered
with gravel, cobble, or boulders.
3.6.2.Gravel and cobble type. Min. 1 type of gravel
and min. 1 type of cobble with max. 50% of all
surfaces comprising the same material.
3.6.3.Groundcover placement. Planted next to and
not within a bed of cobble.
3.6.4.Inorganic groundcover color. Inorganic
material utilized within a required frontage
adjoining a public street or right-of-way shall
be of a color and value that reflects more light
than it absorbs.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 820 of 855
85CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
3.7. BOULDERS 3.7. BOULDERS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.7.1.Required boulders. Min. 1 boulder for each
500 SF of continuous area of parkway and
landscaped setback area.
3.7.2.Irregular spacing. Boulders are
spaced irregularly.
3.7.3.Buried below grade. Bottom third of boulders
are buried below grade.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
3.8. ON -SITE LIGHTING 3.8. ON-SITE LIGHTING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.8.1.Dark-sky compliant. Exterior lighting is dark-
sky compliant and/or fully shielded.
3.8.2.Fully shielded. Exterior lighting is fully
shielded and arranged so that light source
cannot be viewed directly.
3.8.3.Uplighting. Prohibited, unless used to feature
an architectural or landscape element
pursuant to Section 24.16.020 of the Palm
Desert Municipal Code.
3.8.4.Lighting angle below the horizon. Exterior
lighting restrains light from source to a min.
30° below horizontal plane of light source.
3.8.5.Pedestrian-oriented lighting, location.
Provided along all on-site sidewalks and
pathways and exterior amenity spaces.
3.8.6.Pedestrian oriented lighting, placement.
Spaced a max. 30 lineal feet on center.
3.8.7.Pedestrian-oriented lighting, illumination. Min.
1’ candle on all on-site sidewalks, walkways,
pathways, and paseos.
3.8.8.Stand-alone exterior lighting. Min. 3’ and max.
14’ in height.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 821 of 855
86 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
3.9. PASSIVE AND ACTIVE AMENITIES 3.9. PASSIVE AND ACTIVE AMENITIES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.9.1.Passive amenities. Select the appropriate
requirement per the options below.
a. Less than 20 DUs: min. 1 required
passive amenity
b. Between 20-50 DUs: min. 2 required
passive amenities
c. Between 51-99 DUs: min. 3 required
passive amenities
d. 100 DUs and greater: min. 4 required
passive amenities
3.9.2.Types of passive amenities. Select from the list
below.
a. Gazebo
b . Passive water amenity
c. Picnic shelter
d. Seating area(s) with benches and/
or loose chairs a min. 12’ wide in
one dimension and 144 SD in area
per below:
i. Less than 20 DUs: 1 required
seating area
ii. Between 20-50 DUs: 2 required
seating areas
iii. Between 51-99 DUs: 3 required
seating areas
iv. 100 DUs and greater: 4 required
seating areas
e . Seating walls a min. 8’ in length
per below:
i. Less than 20 DUs: 1 required
seating wall
ii. Between 20-50 DUs: 2 required
seating walls
iii. Between 51-99 DUs: 3 required
seating walls
iv. 100 DUs and greater: 4 required
seating walls
PASSIVE AND ACTIVE AMENITIES CONTINUES ON THE NEXT PAGE
Page 822 of 855
87CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
3.9. PASSIVE AND ACTIVE AMENITIES (CONT.)3.9. PASSIVE AND ACTIVE
AMENITIES (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
3.9.3.Active amenities. Select the appropriate
requirement per the options below.
a.Fewer than 20 DUs: min. 2
active amenities
b.Between 20-55 DUs: min. 3
active amenities
c.Between 51-99 DUs: min. 4
active amenities
d.Between 101-149 DUs: min. 5 active
amenities
e.150 DUs and greater: min. 6 plus one
additional active amenity for each
additional 50 units
3.9.4.Types of passive amenities. Select from the list
below.
a. Active water amenity
b. Barbecue
c . Clubhouse and/or recreation
room that opens onto an outdoor
amenity area
d. Community garden
e. Court game facility
f. Exercise area and/or par course
g. Jogging and/or par course
h . Pet area and/or run and/or wash
i . Play area, children’s
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 823 of 855
88 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
MIXED-USE BUILDING ARCHITECTURE DESIGN
New mixed-use projects shall meet all of the below Building
Architecture standards per Chapter 4 of the City of Palm Desert
Multifamily and Mixed Use Objective Design Standards policy.
CITY USE ONLY
4.1. BUILDING HEIGHT 4.1. BUILDING HEIGHT
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.1.1.Building height measurement along public
streets. Max. building height within 150’ of
the curb of a public street is established by
a vertical measurement from the average
elevation of the street curb adjacent to the
property to the highest point of the structure.
4.1.2.Building height measurement adjoining a
residential zoned property. Max. building
height within 50’ of a residential zoned
property line is established by a vertical
measurement from the elevation of the
finished grade along the property line of the
residential zoned property or the finished
grade along the property line of the project
site, whichever is lower in elevation, to the
highest point of the roof of the structure.
4.1.3.Transitional height abutting a single-family
zoned property. If building abuts or is across
a right-of-way from a single-family zoned
property, the allowed building height is
modulated by an inward-leaning 45° angled
plane inclined towards the building as
measured from a horizontal plane originating
15’ above grade at the abutting property line.
4.1.4.Maximum building height at public-street-
facing frontages. Select the appropriate
requirement per options below.
a. Building distance from street-facing
setback is < 30 ft: max. building
height is 24’ and 2-stories with
flat roof
b. Building distance from street-facing
setback is > 30 ft: max. building
height per Municipal Code
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 824 of 855
89CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.2. BUILDING LENGTH 4.2. BUILDING LENGTH
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.2.1.Building wall, maximum length. Max. 250’
in length.
4.2.2. Building breaks, open to the sky. Min. 40’
open-to-the-sky separation provided when
building breaks are required, programmed
as either public/private rights-of-way, courts,
passageways, paseos, and/or other active and/
or passive landscaped open spaces.
4.2.3.Building breaks with vehicular street. Min.
5’ sidewalk and min. 5’ adjoining parkway
if building break utilizes a public or private
vehicular street.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 825 of 855
90 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.3. BUILDING MODULATION 4.3. BUILDING MODULATION
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.3.1.Building modulation. Select at least four of
the following.
a. Min. 6’ clear width ground-level
arcades, open-to-the-air galleries,
colonnades, porches, recesses,
ramadas, and trellis structures placed
along a min. 80% ground floor length
of two building faces.
b. Min. 8’ length and min. 3’ depth
open-to-the-sky recesses for each 50’
of building wall length.
c. Major and minor massing, with wall
area of the minor massing a max.
40% of total wall area.
d. Min. 6’ clear width setback of top
floor along at least 2 sides of
the building.
e. Sun-screening elements on windows,
doors, and openings at south- and
west-facing building walls.
f. Min. 15% of building
walls are covered and
open-to-the-air balconies.
g. Roof overhangs or projections that
provide a min. 8’ of vertical shaded
wall at noon on the summer solstice.
h. Vertical and irrigated landscaping
located within 5’ of a wall, screens
min. 2 walls and 30% of structure
perimeter, and min. 20’ height after 5
years of growth.
i. Min. 2 wall materials, first material
a max. 30% of total wall area and
second material a max. 70% of total
wall area.
j. Building footprint immediately below
top floor is max. 80% of the building
footprint immediately below.
k. Min. 1 tower element that is max.
half of the floor-to-floor height
of the tallest building story, and
recessed or projected from the rest
of the building mass by a min. 2’.
BUILDING MODULATION CONTINUES ON THE NEXT PAGE
Page 826 of 855
91CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
BUILDING MODULATION (CONT.)BUILDING MODULATION (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.3.2.Vehicle entrances. If vehicle entries are
incorporated into a building wall facing
a public street, select at least two of
the following.
a. Vehicle entrance set back a min.
20’ from the back of sidewalk or
required setback, whichever results
in the furthest distance from the
public street.
b. Where a pedestrian entrance is
provided adjacent to the garage
opening, a min. 5’ wide sidewalk
leading to the public street
and sidewalk.
c. Min. one, 5’ width landscaped area
adjoining the vehicle access drive
and leading from the public street to
the garage entrance.
4.3.3.Upper story floor area limit. Top story gross
area of buildings are a max. 80% of the floor
immediately below.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 827 of 855
92 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.4. BUILDING ROOFS 4.4. BUILDING ROOFS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.4.1.Roof types. Select from the options below.
a. Butterfly roof
b. Clerestory roof
c. Conical roof
d. Cross-hipped roof
e. Curved/barrel vaulted roof
f. Dome roof
g. Flat roof
h. Gable roof
i. Hexagonal roof
j. Hip and valley roof
k. Intersecting gable roof
l. Hip roof
m. M-shaped roof
n. Monitor roof
o. Pyramid hip roof
p. Sawtooth roof
q. Skillion roof
r. Shed roof
4.4.2.Roof slopes. Pitch of sloped roofs, other than
conical, curved/barrel vaulted, or dome roofs,
is min. 2:12 and max. 4:12.
4.4.3.Sloped roof materials. Select one.
a. Concrete or lightweight concrete tile.
b. Metal that is non-reflective.
c. Solar panel tiles, solar roof tiles, or
solar shingles.
d. Natural tone or slate tile.
e. Terracotta tile or simulated
terracotta tile.
4.4.4.Prohibited roof materials. Asphalt-shingle
roofs, glass roofs or skylights comprising of
more than 10% of the total gross area of the
floor below, and corrugated metal roofing are
not utilized in the project.
4.4.5.Flat roof modulation. Modulate the roof
vertically a min. 42” at least once every 50’.
BUILDING ROOFS CONTINUES ON THE NEXT PAGE
Page 828 of 855
93CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
4.4. BUILDING ROOFS (CONT.)4.4. BUILDING ROOFS (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.4.6.Greenhouses. Exempt from roof type, slope,
modulation, and materials requirements if
total floor area of the greenhouse is < 10% of
the total gross floor area of the building.
4.4.7.Parapet return. Parapets that extend beyond
the wall plane must return and extend a min.
6’ past the wall plane and inwards towards
the building.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
4.5. BUILDING MATERIALS 4.5. BUILDING MATERIALS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.5.1.Building wall materials. Select at least two of
the following.
a. Cementitious or acrylic stucco, or an
exterior insulating and finish system
with a cementitious finish.
b. 2 stucco textures. If a float finish
is utilized for one of the stucco
textures, the second stucco texture
is a float or dash finish stucco and
utilized for a min. 10% of the total
wall area.
c. 2 stucco colors with min. 1 of the
stucco colors utilized at a min. 10%
of the total wall area.
d. Non-reflective metal panels.
e. Natural stone or manufactured stone
veneer at a min. 10% of the total
wall area.
f. Terra cotta tile and/or rain screens.
g. Colored precision block, glazed block,
face brick, face stone, split face block,
shot blast block, or slump stone at a
min. 10% of the total wall area.
BUILDING MATERIALS CONTINUES ON THE NEXT PAGE
Page 829 of 855
94 Chapter 6: Compliance Checklists
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CITY USE ONLY
4.7. BUILDING OPENINGS 4.7. BUILDING OPENINGS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.7.1.Ground-level transparency or frontage
component. Select at least one of
the following.
a. Min. 60% of total ground-level wall
length glazing that is a min. 8’ tall.
b. A min. 8’ clear depth architectural
component along a min. 80% of wall
length that faces a public street.
4.7.2.Upper-level glazing. Min. 15% glazing at
building walls above the ground level.
4.7.3.Openings. Max. 60% of total wall area of any
individual building face.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
4.5. BUILDING MATERIALS (CONT.)4.5. BUILDING MATERIALS (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.5.2.Wall material transitions. Select at least
one of the following methodologies when
transitioning between different materials
and colors.
a. An inside corner where
planes intersect.
b. A reveal, projecting band, and/or
planar offset to mark the transition
between the base, middle, and top of
the building.
c. Use of a building detail and/or
habitable or decorative projections.
d. Utilization of recesses or projections
at windows a min. 3” in depth at all
windows and openings.
e. An offset in a plane where the
material transition or color occurs
with a min. 5” depth.
4.5.3.Prohibited wall materials. Project is not a
100% glass building.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 830 of 855
95CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.8. BUILDING WINDOWS 4.8. BUILDING WINDOWS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.8.1.Window and door details. Select at least two
of the following.
a. 3 distinct window sizes.
b. Shading devices that create a
distinct shadow line at a min. 60%
of openings.
c. Recesses or projections a min. 3” in
depth at a min. 60% of all openings.
d. Min. 4”-width trim around opening
that creates a projection or recess no
less than 2” in depth.
e. Use of metal-clad, thermally-broken
metal or steel, and/or wood windows
or doors at all openings.
f. Exterior shades.
4.8.2.Windows, storage, utilities, and screening.
Interior or exterior screening for windows
that open onto a utility or storage use
or occupancy.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
4.9. BUILDING BALCONIES AND STAIRWELLS 4.9. BUILDING BALCONIES
AND STAIRWELLS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.9.1.Balcony depth. Min. 6’ in clear depth.
4.9.2.Balcony design. Recessed or shaded by
balconies or roof projections immediately
above and/or by min. 4’ deep awnings,
canopies, ramadas, recesses, and/or trellises.
4.9.3.Stairwells. Internal to the building, screened
by materials with a 50% opacity.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 831 of 855
96 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.10. BUILDING UTILITIES 4.10. BUILDING UTILITIES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.10.1.Electrical utilities. Electrical utility equipment,
electrical meters, and junction boxes placed
within a utility room.
4.10.2.Mechanical and electrical equipment
screening. Except for ground-mounted
transformers, all mechanical equipment
is fully screened from all views by one of
the following:
a. Solid parapets and/or walls
that are a min. 1’ taller than the
mechanical equipment.
b. Louvers equipment boxes
incorporated into a wall.
c. Min. 50% opaque walls that are set
within landscape areas, that in plan
provide a min. 18” wide landscape
border around the perimeter of at
least 2 sides of the equipment pad.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
4.11. BUILDING FACADE COLORS 4.11. BUILDING FACADE COLORS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.11.1.Color palette. Neutral, earth tone, and/or
neutral or earth tone Sonoran Desert regional
colors, samples or printouts of which attached
to the application and key to color use on
elevation drawings.
4.11.2.Accent colors. Max. 10% building facade may
be a color not considered neutral, earth tone,
and/or Sonoran Desert color choice.
4.11.3.Prohibited colors. Black is only used as an
accent color or a window, trim, fence, or
gate color.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 832 of 855
97CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
BUILDING WATER DRAINAGE DEVICES BUILDING WATER DRAINAGE DEVICES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.37. Water drainage devices. Gutters, downspouts,
and other water drainage components, with
the exception of required overflow devices, are
not visible from the exterior building walls
facing public streets.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
CITY USE ONLY
4.13. BUILDING TRASH/RECYCLING BINS AND ENCLOSURES 4.13. BUILDING TRASH/RECYCLING BINS
AND ENCLOSURES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.13.1.Trash/recycling bin placement. Select the
appropriate requirement per options below.
a. Lots < 7,500 SF: trash/recycling bins
are designated, open-to-the-sky
enclosures permitted, but no trash/
recycling bin or enclosure placed in
required setbacks or visible from the
public street.
b. Lots 22,500 SF > 7,500 SF: trash/
recycling bins placed within fully
enclosed structures that may be
open to the sky, are not visible from
a public street, may project into a
required side or rear yard setback
but not placed within 5’ of a property
line or within a setback adjacent to a
public street or single-family lot.
c. Lots > 22,500 SF: trash/recycling bins
are designated, fully enclosed, may
be open to the sky, but not placed
within required setbacks or visible
from a public street.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 833 of 855
98 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.14. BUILDING DESIGN COMPONENTS 4.14. BUILDING DESIGN COMPONENTS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.14.1.Architectural continuity. Development projects
with multiple buildings maintain architectural
consistency through at least three of
the following.
a. Consistent use of roof forms and if
sloped, roof materials and coloring at
all buildings and accessory buildings.
b. Consistent use of building overhangs,
recesses, and architectural
projections including porches,
arcades, ramadas, galleries and
building screening that create
shade at south, east, and west
facing facades.
c. Consistent use of facade materials at
all buildings and accessory buildings.
d. Consistent use of color at all
buildings and accessory buildings.
e. Consistent use of proportions
and details at min. 60% of
building openings.
f. Consistent use of sun shading
architectural components at all
buildings visible from a public street.
BUILDING DESIGN COMPONENTS CONTINUES ON THE NEXT PAGE
Page 834 of 855
99CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
4.14. BUILDING DESIGN COMPONENTS (CONT.)4.14. BUILDING DESIGN
COMPONENTS (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
4.14.2.Inclusion of Palm Desert architectural and
landscape components. Select at least four of
the following.
a. Buildings oriented on an east-west
axis such that the wall area of both
the east and west facades is a max.
60% of the area of the area of south
facing walls.
b. Site walls, building massing, and
landscape windbreaks that protect
project open spaces from west to
east prevailing summer winds.
c. Site walls, building massing,
and landscape windbreaks that
protect project open spaces from
north to south prevailing winds
that occur from mid-November
through mid-February.
d. Covered open-to-the-air arcades,
colonnades, galleries, or other
permanent coverings or projections
that provide shade at all building
walls visible from public streets.
e. Overhangs or recesses at building
entries that are a min. 4’ in
clear depth.
f. Min. 24” deep roof eaves.
g. Use of natural stone or veneer stone
at a min. 10% the total building
wall area.
h. Use of recessed windows at a min.
60% of openings.
i. Use of shade trees at varying
distances apart, but in no case more
than 30’ on center, to shade the
length of east-, south-, and west-
facing building walls visible from a
public street.
j. Public street frontages that are a
min. 20% greater than the otherwise
required frontage, front yard, and
street-facing side yard requirements.
Applicant comments and/or further explanations of compliance (optional).City comments (optional).
Page 835 of 855
100 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
MIXED-USE PARKING DESIGN
New mixed-use projects shall meet all of the below Parking standards
per Chapter 5 of the City of Palm Desert Multifamily and Mixed Use
Objective Design Standards policy.
CITY USE ONLY
5.1. SURFACE PARKING DESIGN 5.1. SURFACE PARKING DESIGN
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.1.1.Surface parking visibility. Select one of the
following.
a. All surface parking lots are behind
buildings. When more than 1
building is placed on a lot and
the buildings screen the surface
parking, a max. 30’ wide separation
between buildings screening the
surface parking.
b. All surface parking lots behind a
fence or wall.
c. All surface lots behind a min. 10’
depth and min. 42” height landscape
buffer using bushes, hedges,
and trees.
5.1.2.Surface parking along side or rear property
lines. Min. 5’ width perimeter landscape strip
along surface parking areas adjacent to side or
rear property lines.
5.1.3.Landscape island dimensions. Min. 9’ length
and 7’ width, exclusive of curbs and landings.
5.1.4.End parking stalls, width. Increased in City-
required width by min. 18”.
5.1.5.Landscape islands, end parking stalls.
All end parking stalls are adjacent to a
landscaped island.
5.1.6.Landscape islands, surface parking with more
than 30 spaces. Min. 10% of lot is landscape
islands by one of the following.
a. Use of finger islands at endcaps
and a landscape island every 10
parking spaces.
b. Min. 5’ continuous landscape planter
located within the center of parking
rows, running between endcap
fingers and islands.
5.1.7.Canopy trees at on-site surface parking. Min.
1 canopy tree for every 3 uncovered parking
spaces and 1 canopy tree for every 8 covered
parking spaces.
SURFACE PARKING DESIGN CONTINUES ON THE NEXT PAGE
Page 836 of 855
101CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
5.1. SURFACE PARKING DESIGN (CONT.)5.1. SURFACE PARKING DESIGN (CONT.)
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.1.8.Canopy tree distribution at on-site surface
parking. Uniformly distributed across surface
are of lot so that no parking space is more
than 30’ from the center of a canopy tree.
5.1.9.Parking space building separation. Min.
5’ pedestrian sidewalk and min. 5’ wide
landscape strip measured from the curb face
separating parking spaces from buildings
5.1.10.Pathways, surface lots with more than 50
spaces. Min. 1 publicly-accessible pathway or
sidewalk that provides access across the lot
to a public sidewalk for each 200’ of surface
parking area fronting a public street.
5.1.11.Pathway enhancements, surface lots with
more than 50 spaces. Enhanced or textured
paving or striping included where pedestrian
crossing occurs.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
5.2. MECHANICAL PARKING 5.2. MECHANICAL PARKING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.2.1.Mechanical parking placement. Open-to-the-
air mechanical parking placed more than 20’
from a public street frontage.
5.2.2.Mechanical parking screening. Open-to-the-air
mechanical parking spaces placed between
20’-150’ from a street frontage are minimally
screened from view of the public street by
walls that are a min. 15% open/transparent
and max. 40% open/transparent.
5.2.3.Structures with mechanical parking. Fully
enclosed buildings with mechanical parking
meet the Building Architecture ODS in Chapter
4 of the Multifamily and Mixed-Use Objective
Design Standards policy.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 837 of 855
102 Chapter 6: Compliance Checklists
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
5.3. PARKING SHELTERS 5.3. PARKING SHELTERS
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.3.1.Parking shelter placement. No parking shelters
within required setbacks.
5.3.2.Parking shelter materials and colors. When
visible from a public right-of-way, parking
shelters are the same colors and roof
materials as the main buildings of a site.
5.3.3.Parking shelter length. Max. 65’ in length.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
5.4. PARKING GARAGES 5.4. PARKING GARAGES
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.4.1.Architectural continuity, parking garages.
Parking garages are architecturally treated
and meet the Building Architecture ODS in
Chapter 4 of the Multifamily and Mixed-Use
Objective Design Standards policy.
5.4.2.Vehicular entry gates. Min. 20’ between gate
and back of the sidewalk.
5.4.3.Ground-floor openings at parking garages and
utility and mechanical areas. Screen parking
garages and utility/mechanical room openings
from public street frontages with one of
the following.
a. Vertical landscape and/or climbing
vines on metal screens, and/or
wires that cover a min. 60% of
the openings.
b. Decorative, non-reflective metal
grills, glass, or panels with a min.
50% opacity that covers a min. 60%
of the openings.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
Page 838 of 855
103CITY OF PALM DESERT MULTIFAMILY AND MIXED
-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
CITY USE ONLY
5.5. BICYCLE PARKING 5.5. BICYCLE PARKING
ODS DESCRIPTION NOT
APPLICABLE COMPLIANT NOT
APPLICABLE COMPLIANT NON-
COMPLIANT
5.5.1.Short-term bicycle parking. Required bicycle
racks located within 50’ of at least 1 public
building entrance.
5.5.2.Long-term bicycle parking. Required bicycle
racks are covered and secured, located within
150’ of at least one building entrance.
If “Not Applicable” was selected in the above section, provide an explanation for why the ODS does
not apply to the proposed project (required).
This comment box may also be used for further explanations of compliance (optional).
City comments (optional).
CITY USE ONLY
FINAL APPLICANT COMMENTS (OPTIONAL)FINAL CITY COMMENTS (OPTIONAL)
Page 839 of 855
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This page is intentionally blank.
Page 840 of 855
105CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
7 GLOSSARY
105CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Page 841 of 855
106 Chapter 7: Glossary
City of Palm Desert CA, Draft March 2024
A
Accessory Building or Structure. Any subordinate
building or structure located on the building
site, detached from or attached to the principle
structure, the use and architectural style of which
is customarily related to that of a main building.
Amenities, Active. Active amenities shall be
outdoors and include the following;
• Active water amenity, including but not
limited to a pool, spa, hot tub, splash pad,
and/or misting area
• Barbecue
• Clubhouse and/or recreation room that
opens onto an outdoor amenity area
• Community garden
• Court game facility exclusive of pickleball
• Exercise area and/or par course
• Jogging and/or par course
• Pet area and/or run and/or wash
• Play area, children’s
Amenities, Passive. Passive amenities shall be
outdoors and include the following;
• Gazebo
• Passive water amenity, including but not
limited to a fountain, waterfall, stream, or
pond
• Picnic shelter
• Seating area a minimum of 12 feet wide in
one dimension and 144 square feet in area
• Seating walls
• Secured package lockers
Alley. A roadway that provides access to the rear
or sides of a parcel.
Arcade. A pedestrian walkway defined by columns,
pilasters, or short-length open-to-the-outside
walls supporting a roof that provides shelter
along its length.
B
Boulder(s). Using ISO 14688-1:2017, boulders
are defined as stones and rocks that are
approximately eight inches and larger in size.
Building. A structure having a roof supported by
columns or walls.
Building Area. The square footage of the total
footprint of the building, including all floors of
the building.
C
Canopy Tree. An evergreen or semi-deciduous
tree planted for the purposes of providing shade,
reducing glare, and heat build up. These trees
shall have a minimum 30-foot diameter canopy
potential.
Cobble(s). Using ISO 14688-1:2017, cobble is
defined as pebbles, stones, and rocks that are
approximately two and one-half to eight inches
in size.
D
Dark-Sky Compliant. Outdoor lighting that is
designed to prevent light pollution by directing
light towards the ground.
Decomposed Granite. Rock of granitic origin that
has weathered and fractured into smaller pieces
of weak rock. This rock crumbles into a mixture of
igneous silt, sand, and gravel with some clay. The
clay acts as a binder allowing the combination to
support use.
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107CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
E
Earth Tone Color. An earth tone color is a warm
and muted or dull shade of brown, green, gray,
or beige.
Elevation, Building. The flat side or external face
of a building.
F
Facing a Public Street. A building wall, element,
or component shall be considered to be facing a
public street or right-of-way when a plane tangent
to the wall, element, or component is no greater
than 30 degrees in inclination from a line drawn
tangent to the public street or right-of-way.
Fence. A freestanding structure of brick, stone, face
stone, veneer stone, or any combination thereof
resting on or partially buried in the ground level,
and used for confinement, privacy, protection,
screening, or partition purposes.
Frontage, Building. The building elevation that
fronts on a public street, alley, driveway, parking
area, pedestrian plaza, courtyard, or arcade.
Frontage, Public Street. The property line that
adjoins a public street, alley, driveway, parking
area, pedestrian plaza, courtyard, or arcade.
G
Grade, Average. The average elevation of the
finished ground surface surrounding a building.
Gravel. Using ISO 14688-1:2017, gravel is defined
as fine, medium, and coarse rock material. Fine
gravel is typically one tenth of an inch to a quarter
inch in size. Medium gravel is typically a quarter
inch to three quarters of an inch in size. Coarse
gravel is typically three quarters of an inch to two
and one half inches in size.
M
Mass/Massing. The comprehensive bulk or three-
dimensional form of a building or portion of a
building as viewed from the exterior.
Mixed-Use Building. A permanent building that
allows for a mix of uses, typically commercial
and residential.
Modulation, Facade Plane. Adjustment and
breaking of a facade plane(s) to realize variations
in massing, scale, materials, color, and/or
proportion, to introduce a sense of variety and
major and minor building plane rhythms.
Multifamily Building. A permanent building
containing three or more dwelling units.
N
Natural Metal Material. Natural metals include
unpainted aluminum, copper, stainless steel,
titanium, and zinc and natural metal finishes
utilizing the same materials.
Neutral Color. A Palm Desert neutral color is a
white, gray, or brown. Neutral colors include off-
white, light to dark gray, and light to dark brown
colors.
O
Objective Design Standards. A toolbox of a broad
range of design approaches that assists project
proponents and their design teams in reaching
compliance with the desired character of the City
of Palm Desert.
Openings. Windows and doors set within
building planes.
Open to the sky. An uncovered outdoor area
exclusive of any encroachments below 12 feet
in height.
Page 843 of 855
108 Chapter 7: Glossary
City of Palm Desert CA, Draft March 2024
P
Parkway. A landscape strip adjoining a sidewalk
or pathway.
Project. A multifamily or mixed-use building(s)
planned and designed for a particular site,
requiring City approval for construction.
Project Entries. A door that allows access into
a project.
Public Art. A sculpture, mosaic, fountain, fine art
craft, mixed-media, murals, drawings, paintings,
monuments, or installations that are displayed in
a public place.
R
Right-Of-Way. The right of a pedestrian, bicyclist,
vehicle, or vessel to proceed over others in a
single place.
Roof, Flat. The angle of the roof is sloped less than
15 degrees.
S
Setback. The distance between the building line
and the property line or a distance between one
building plane and a second building plane.
Street Frontage, Public-Facing. The linear distance
of a site boundary that is generally parallel to a
public street.
Slope, Roof. The incline of a roof, expressed as a
ratio of the roof’s vertical rise to the horizontal
run. Other than conical roofs, curved roofs, barrel
roofs, or dome roofs, roof slope shall be no less
than 2:12 and no greater than 4:12.
Specimen Tree. A tree chosen as the focal point
in a landscape design, typically due to its distinct
shape, texture, color, or other feature that
distinguishes it from other trees and shrubs in the
landscape design.
Street, Public. A vehicular right-of-way in which
the public has a right of use.
W
Wall. A continuous, upright, and planar structure
that encloses, protects, and/or divides a site.
Wall, Building. The vertical face of a building or
the vertical outer envelope of the structure.
Wall Area. The total vertical area, in square feet, of
a wall.
Water Amenity, Active. A water-based attraction
for active recreation, such as a pool, spa, hot tub,
splash pad, or misting area.
Water Amenity, Passive. A decorative landscape
design element with water as the central
component, such as a fountain, waterfall, stream,
or pond.
Page 844 of 855
109CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Project Outreach
Image Sources
A APPENDIX
City of Palm Desert CA, Draft March 2024
Page 845 of 855
110 APPENDIX
City of Palm Desert CA, Draft March 2024
A-1 Project Outreach
The Consultant Team worked with the City of Palm Desert Staff
to conduct a robust, 3-month community engagement process to
support the development of multifamily and mixed-use objective
design standards (Project). Three phases of outreach took place
throughout the Project timeline.
• Phase 1: Project Introduction and Issue Identification (June
2023)
• Phase 2: Objective Design Standard Topics (July 2023)
• Phase 3: Public Review Draft Discussions (August and
September 2023*)
*Phase 3 of the Project outreach was extended into the month of
September due to Hurricane Hilary in August 2023.
OUTREACH PHASE 1 EVENTS
Community Open House (COH)
On June 19, 2023 from 11:00AM to 7:00PM, the Consultant
facilitated a Community Open House (COH) hosted by the City of
Palm Desert to listen to ideas from Palm Desert residents and
stakeholders regarding multifamily and mixed-use development.
The COH was a temporary exhibition consisting of printed boards
displayed at the Palm Desert iHub. The boards showcased examples
of multifamily housing, mixed-use development, existing multifamily
in Palm Desert, recently-approved projects in Palm Desert, and
classic “desert architecture”. Stickers were given to attendees to
place on the boards indicating their like or dislike of the illustrated
design concepts and typologies. Throughout the entire COH, City
Staff and/or the Consultant team were available to walk attendees
through the exhibition and listen to their reactions to multifamily
and mixed-use typologies.
At 1:00PM and 5:00PM, formal presentations were conducted to
introduce the Project and present Open House materials. Nick
Melloni introduced the Project and John Kaliski presented a set of
slides that elaborated on multifamily and mixed-use developments
in Palm Desert. The presentation concluded with a list of Consultant
findings and considerations, which transitioned into a public forum
for discussion, answering questions, and gathering feedback. The
1:00PM presentation garnered approximately 11 attendees and
the 5:00PM presentation had 4 attendees. Ideas heard in the public
forums included, but were not limited to, the following:
Date:
Location:
Time:
June 19, 2023
Palm Desert iHub
(37023 Cook St.
Suite 102, Palm
Desert, CA 92211)
11:00AM-7:00PM
PST (formal Project
presentations
at 1:00PM
and 5:00PM)
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111CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
• Older Palm Desert buildings on boards feel dated and should
be “diluted” with newer buildings.
• More mixed-use is needed in Palm Desert.
• Consider a “tree hierarchy” to get more landscape, driven by
the existing plant palette.
• Conserve views to mountains and natural surrounds.
• Avoid building “building canyons”.
• “Superblock” scale is too big.
• Ensure existing entitlements and design and development
opportunities.
• Prioritize environmental elements in design standards: solar,
wind, shade, etc.
• There should be an architectural coherence of various
buildings within a development.
• How can ODS prevent “design laziness” and be a “defense
against by-right abuse”?
• Water usage and drainage, such as internal vs. external
downspouts and water features.
• Resist desert architecture that is clearly of other deserts
(specifically mentioned: Santa Fe).
• More options for project edge design to create human scale
and avoid “tunnels”.
• Concentrate on design vs. planning factors.
Individual Developer Meetings
During the COH, Staff and the Consultant team met with four
developers in individual, 30-minute Zoom meetings to hear about
their experiences.
Date:
Location:
June 19, 2023
Virtual (via Zoom)
Time Contact Development
11:00 AM Kassie Inness Millennium Apartments
11:30 AM Mark Bigley Urban Crossings
2:00 PM Darren Berberian Vitalia Apartments
3:00 PM Mitch Slagerman Palm Villas
Each developer had recently gone through the design approval
process. To guide the conversation, the following questions were
prepared in advance of the meeting and asked at all the meetings:
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112 APPENDIX
City of Palm Desert CA, Draft March 2024
• Tell us about your relationship to Palm Desert development
and design.
• What has worked well for you as you have gone through the
development and design approval process?
• What has not worked well for you?
• What type of design standards do you think should be
implemented?
• Are there design standards that we should avoid in order to
facilitate housing design and development?
Feedback heard from developers included, but was not limited to,
the following:
• City Staff was generally (not exclusively) praised.
• Mechanical screening standards in Palm Desert are not clear.
• Provide “solution-based” design standards.
• Concern (not exclusively) regarding the subjectivity of the
design review process.
• Make distinction between affordable versus market-rate
housing projects.
• Look for opportunities to speed up the approval process
timeline, especially for affordable housing projects.
• Seek design and development “balance”.
Planning Commission (PC) Study Session
The day after the COH, Staff and the Consultant team participated
in a study session with the PC. The Consultant team presented a
condensed version of the slide deck presentation from the COH,
and included a few slides that summarized what was heard and
discussed at the COH. Following the presentation, the Commissioners
provided additional feedback regarding multifamily and mixed-use
development in Palm Desert. Topics of discussion included, but were
not limited to, the following:
• The choice of architect who designs multifamily and mixed-
use in Palm Desert is crucial to get better architecture in the
City, particularly architects that understand the environment.
• Landscape is important, but maintenance is not emphasized
enough - many projects in Palm Desert have aging
landscaping.
• General approval of 3-story developments.
• University Park - an example of a neglected project during a
time where more effort was put towards increased single-
family housing.
Date:
Location:
Time:
June 20, 2023
Palm Desert City Hall
6:00PM-7:00PM PST
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113CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
• Comparison to other cities - Santa Fe, Palm Springs,
Scottsdale, leading to the importance of inventing standards
that build the landscape into the logic of the zoning code.
• Use elements from the General Plan and convert “shoulds” to
“shalls”.
• Design standards can be written as both “you shall” as well
as “you shall not”.
• Continue to invite all members to public meetings about the
project to avoid residents claiming to “not be knowledgeable”
about the project (what happened during the General Plan
update).
Planning Commission Small-Group Commissioner Meeting
The Consultant Team and City Staff had a breakout session with
Planning Commissioners Gregory and Greenwood a week after the
June 20th Planning Commission meeting to further gain insight on
existing Palm Desert character and ideas regarding multifamily and
mixed-use goals for the objective design standards. Topics discussed
included the following:
• How do we find a balance to employ objective design
standards to receive a more architecturally diverse and rich
project without a developer doing the bare minimum?
• Will the ODS allow architects the flexibility and tools to
create good projects?
• Importance of transitional heights, “strategic variation” of
housing types, sufficient amounts of open space and good
open space requirements.
• Examples of good architectural design in Palm Desert.
• Palm Desert-specific landscaping.
OUTREACH PHASE 2 EVENTS
Architectural Review Commission (ARC) Study Session
The Consultant and City Staff met with the Architectural Review
Commission (ARC) for a study session regarding potential focus
areas for the objective design standards. The Consultant made a
presentation that summarized their research of objective design
standards in other surrounding cities (Tucson, Sedona, Coachella,
and Indian Wells) and introduced four topic areas in which standards
would be categorized - Site ODS, Building ODS, Open Space ODS, and
Parking ODS. The Consultant also shared with the ARC a narrative
of the Project goals and objectives to set the tone of the Project
and guide the discussion. Feedback from ARC included, but was not
limited to, the following:
Date:
Location:
Time:
June 28, 2023
Virtual (via Zoom)
2:00PM-3:00PM PST
Date:
Location:
Time:
July 11, 2023
Palm Desert City Hall
12:30PM-3:30PM PST
Page 849 of 855
114 APPENDIX
City of Palm Desert CA, Draft March 2024
• Ensuring quality-appropriate architecture that emphasized
the desert.
• Recessing of apertures to create shadow lines and protection
from the harsh environment.
• Standardizing building facade color to reflect the desert
environment.
• Defining height to avoid towering multifamily, particularly in
relation to single-family homes.
• Internal consistency of multiple buildings that make up a
development project.
• Orientation of buildings to conserve views.
• Night standards, such as shielded fixtures and lighting.
• Important that the ODS do not stifle creativity.
Landscape Input with ARC
As a follow-up to the ARC meeting on July 11, the Consultant team
and City Staff spoke to the ARC Commissioners Colvard, McAuliffe,
and Sanchez about additional landscaping goals for the ODS. Their
feedback included, but was not limited to, the following:
• Align species of trees, scale of trees, and growth of trees
that will support walkability and general enjoyment of the
outdoors.
• Choose tree species that will thrive in the desert.
• Landscaping should be thought of as a natural extension of
building ideas, such as shade and versatility.
• Not every inch of sidewalk and pathway need to have tree
cover.
• Avoid species that do not establish well in wind conditions.
• Consider standards that ensure dangerous plants (sporings,
cactus, Madagascar palms) should not be close to sidewalks
and open spaces, especially in developments where kids may
be outdoors playing.
• Consider requiring high-branching trees deeper into fencing
areas along pathways to avoid constant trimming and
hazards for pedestrians.
Date:
Location:
Time:
July 27, 2023
Virtual (via Zoom)
10:00AM-11:00AM PST
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115CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
OUTREACH PHASE 3 EVENTS
City Council Study Session
The Consultant team and City Staff participated in a study session
with the Palm Desert City Council (CC). CC was provided the draft of
the Multifamily and Mixed-Use Objective Design Standards to review
in advance of the meeting. The Consultant presented an overview
of the Project, including several examples of ODS from each section
of the document. During and after the presentation, CC provided
comments that addressed the following concerns:
• The avoidance of an urban canyon as people are drawn to
Palm Desert because of its sense of openness
• Mayor Kelly emphasized an approach to ODS that takes into
consideration the status quo heights of downtown which
may be modified. Avoidance of “memorializing,” a status quo
that is about to change.
• Careful consideration of what canopy trees will be planted.
Specifically, Mayor Pro Tem Quintanilla mentioned omitting
eucalyptus trees from consideration.
• Due to the recent damage from Hurricane Hilary, emphasis
should be placed on trees with more weather resistance.
• Councilmember Harnik questioned why height was described
in stories rather than in feet.
• Councilmember Nestande referenced the recent hurricane
again in regards to the choice of ground cover. Is there a type
that is better than another? The selection of ground cover
should be able to withstand heavy rain or wind.
• The question of what mechanical parking is was raised by
Mayor Pro Tem Quintanilla and was answered.
• The fit between state standards and the Palm Desert ODS.
Will the Palm Desert ODS comply with state standards?
• It was noted that Mayor Kelly would like to see more visuals
in the next presentation.
• Specification of fences and wall heights and whether security
fences are included in this specific standard.
• The utilization of plastic fences that resemble wood to be
used since wooden fences are not permitted(?) since they are
not reliable.
• Clarification of parking as an “amenity,” rather than a
“necessity.”
• Due to the weather in the Coachella Valley, parking should be
paid special attention to as Palm Desert is a car reliant town.
Date:
Location:
Time:
August 24, 2023
Palm Desert City Hall
2:30PM-3:30PM PST
Page 851 of 855
116 APPENDIX
City of Palm Desert CA, Draft March 2024
ARC/PC Joint Study Session
The Consultant and City Staff presented highlights from the public
review draft of the Multifamily and Mixed-Use Objective Design
Standards document to hear feedback from both the ARC and PC.
Similar to the CC presentation on August 24th, the presentation to
the commissioners recapped the Project goals and objectives and
shared examples of ODS in each section of the document, as well as
summarized the feedback received from City Councilmembers. Input
from the ARC and PC included, but was not limited to, the following:
• Increasing the length of roof eaves from a minimum of 18
inches to 24 inches.
• Is 30 feet on center enough separation for Desert Museum
trees?
• Concern of trees that have fallen during Hurricane Hilary.
• Confirm applicability requirements for ODS in SB 330.
• How are the ODS addressing circulation and landscaping
between buildings?
• Ensure that higher-density projects do not lose separation
between buildings.
• Consider a certain percentage of the building that doesn’t
require a canopy frontage in order to prioritize views of
the architecture - balance architecture with pedestrian
experience.
• Consider a maximum percentage of hardscape versus a
minimum percentage of shrubs.
• Is 50 percent of live plant material too high?
• Are there screening requirements for balconies?
• Should water features be a passive amenity choice?
• Consider open space near street frontages to take away from
the bulk and scale of buildings.
Community Workshop
Following the Joint ARC/PC Study Session, the Consultant and City
Staff held a workshop open to community members to gain their
insight and perspective regarding the Multifamily and Mixed-Use
Objective Design Standards document. The meeting was held at
the Palm Desert City Hall but simultaneously streamed virtually to
allow for in-person and virtual attendance. The Consultant team
gave a presentation with slides similar to the decision-maker study
sessions, yet spent more time explaining the intent behind the ODS
and how the document should be read and utilized. The presentation
was recorded and posted on the Project website.
Date:
Location:
Time:
September 7, 2023
Palm Desert City Hall
6:30PM-8:00PM PST
Date:
Location:
Time:
September 7, 2023
Palm Desert City Hall
12:30PM-3:30PM PST
Page 852 of 855
117CITY OF PALM DESERT MULTIFAMILY AND MIXED-USE OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
A-2 Image Sources
COVER x Fred Waring Drive. Palm Desert, CA. Photo by JKA.
1 x The Enclave Rental Condominiums. Palm Desert, CA. Photo by JKA.
3 x Golf course. Palm Desert, CA. Photo by JKA.
5 x El Camino Triplex. San Mateo, CA. Photo via Todd Davis Architecture. x Mar Vista Four. Los Angeles, CA. Photo via KFA Architecture. x The E.R.B. Townhomes. Los Angeles, CA. Photo via KTGY. x Luminaira & Espaira At Parasol Park. Irvine, CA. Photo via KTGY. x Citron Apartments. Ventura, CA. Photo via KYGY.
6 x Santiago Lofts. Santa Ana, CA. Photo by JKA. x iHub. Palm Desert, CA. Google Earth aerial photography. x Westgate Apartments. Pasadena, CA. Photo by JKA. x The Earnest. San Diego, CA. Photo via FoundationForForm.
9 x Sombra De La Montana Townhomes. Palm Desert, CA. Photo by JKA.
10 x Roundhouse Place. San Luis Obispo, CA. Photo via roundhouseplace.com
13 x Mason on Mariposa. San Francisco, CA. Photo via David Baker Architects.
14 x 855 Brannan Apartments. San Francisco, CA. Photo via David Baker Architects.
15 x The Asher. Fremont, CA. Photo via TCA Architects.
17 x Catalina Garden Apartments. Palm Desert, CA. Photo by JKA.
18 x Desert Museum Palo Verde. Photo via https://waterwisegardenplanner.org/plants/parkinsonia-x-desert-museum/. x Sweet Acadia. Photo via https://www.pinterest.com/pin/341640321708500748/. x Spanish Walk. Palm Desert, CA. Photo by JKA.
19 x Texas Ebony. Photo via Gothic Landscape. x Thornless Cascalote. Photo via Tuscan Clean and Beautiful, Inc. x Smoke Tree. Photo by Millicent Harvey. x Honey Mesquite. Photo via Arid Zone Trees.
20 x Wild Marigold. Photo by Waterwise Garden Planner for Southern California.
21 x Flattop Buckwheat. Photo via Mountain States Wholesale Nursery. x El Rincon. Indio, CA. Photo by JKA. x Desert River Estates. Indio, CA. Photo by JKA.
23 x Anton Landera Apartments. Mountain View, CA. Photo via https://www.antonladera.com/. x Apex on Central Apartments. Phoenix, AZ. Photo via Turnstone Capital.
24 x Portico Apartments. Sunrise, FL. Photo via https://www.porticoaptssunrisefl.com/. x The Rolland Curtis Gardens. Los Angeles, CA. Photo via Abode Communities. x Catherine Santa Monica. Santa Monica, CA. Photo via KFA Architecture. x Six Oaks Apartments. Bothell, WA. Photo via Dahlin Group.
25 x Multifamily on San Gorgonio Way. Palm Desert, CA. Photo by JKA.
27 x LINC Fairview Heights. Inglewood, CA. Photo via KFA Architecture.
29 x Hancock Lofts. West Hollywood, CA. Photo via Koning Eizenberg Architecture. x Abbot Kinney Lofts. Los Angeles, CA. Photo via Koning Eizenberg Architecture.
30 x Avalon Apartments. Glendora, CA. Photo by JKA.
31 x Kapolei Lofts. Oahu, HI. Photo via KTGY.
33 x Elevation on Central. Phoenix, AZ. Photo via Todd+Associates. x Wardelle Townhouses. Las Vegas, NV. Photo by Michael Tessler Photography.
34 x The Residences at Escaya. Chula Vista, CA. Photo via AO. x Five88. San Francisco, CA. Photo via David Baker Architects. x Valencia Vista. San Bernardino, CA. Photo via Humphreys & Partners Architects.
35 x 1447 Lincoln. Santa Monica, CA. Photo via KFA Architecture. x 512 Rose. Venice, CA. Photo via KFA Architecture. x 300 Ivy. San Francisco, CA. David Baker Architects.
36 x Residences at Sweetbay. Panama City, FL. Photo via Humphreys & Partners Architects. x Desert Willow Golf Resort mechanical screening. Palm Desert, CA. Photo by JKA.
37 x Kalon. Phoenix, AZ. Photo via Todd+Associates. x The Mews Lofts. Venice, CA. Photo via EYRC. x Perch. Dublin, CA. Photo via KYGY.
38 x Trash enclosure. Photo via City of Escondido. x Camden North End II. Phoenix, AZ. Photo via Todd+Associates. x Elan Menlo Park Apartments. Menlo Park, CA. Photo via KYGY.
39 x Camden Sotelo. Tempe, AZ. Photo via Todd+Associates. x Tanager Apartments. Summerlin, NV. Photo via Humphreys & Partners Architects. x Compass Rose. Fullerton, CA. Photo by Humphreys & Partners Architects.
41 x 40215 Harris Lane. Palm Desert, CA. Photo by JKA.
43 x Charles Paddock Zoo Green Parking Lot. Atascadero, CA. Photo via Central Coast LIDI. x St. Mary’s Hospital Parking Lot. Photo via Savor the Southwest Blog. x Living Desert Zoo and Gardens Parking Lot. Palm Desert, CA. Photo via Married to Plants Blog. x Stacker Parking System. Photo via MHE.
44 x Desert Willow Golf Resort parking shelter. Palm Desert, CA. Photo by JKA. x Prado West. Dana Point, CA. Photo via AO. x A2 Apartments. Baltimore, MD. Photo via David Baker Architects.
45 x Skye at McClintock Station. Tempe, AZ. Photo va https://www.skyeatmcclintockstation.com/. x Higby Apartments. Berkeley, CA. Photo via https://livehigby.com/gallery/.
47 x 73430 San Gorgonio Way. Palm Desert, CA. Photo by JKA.
103 x Laguna Palms Apartments. Palm Desert, CA. Photo by JKA.
107 x 73-535 Santa Rosa. Palm Desert, CA. Photo by JKA.
Page 853 of 855
City of Palm Desert CA, Draft March 2024
MULTIFAMILY AND MIXED-USE
OBJECTIVE DESIGN STANDARDS
City of Palm Desert CA, Draft March 2024
Page 854 of 855
C I T Y O F P A L M
D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
PLANNING@PALMDESERT.GOV
CITY OF PALM DESERT
PUBLIC HEARING NOTICE
CASE NO. ZOA24-0001
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BEFORE THE CITY
COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO CONSIDER ADOPTING A
NOTICE OF EXEMPTION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) AND APPROVING CITYWIDE RESIDENTIAL OBJECTIVE DESIGN STANDARDS, AND
A ZONING ORDINANCE AMENDMENT TO REFER TO THE STANDARDS
The City of Palm Desert (City), in its capacity as the Lead Agency for this project and pursuant to
the California Environmental Quality Act (CEQA), has determined the project to be exempt from
further environmental review pursuant to CEQA Guidelines Section §15061(b)(3).
PROJECT LOCATION: Citywide
PROJECT DESCRIPTION: The consideration is a request to adopt Citywide Residential
Objective Design Standards. The standards will apply objective design requirements for qualifying
housing developments including housing consisting of three or greater units, mixed use project
comprised of 2/3rds or greater floor area for residential, and transitional and supportive housing.
The zoning ordinance will include text providing reference to the standards. At the March 14,
2024, City Council Meeting, the Council made modifications to the standards which require re-
introduction of the item for first reading.
PLANNING COMMISSION RECOMMENDATION: The Planning Commission for the City of Palm
Desert did hold a duly noticed public hearing to consider the aforementioned Project on February
6, 2024 and adopted Resolution 2852 recommending approval of the project to the City Council.
PUBLIC HEARING: NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Desert,
California, will hold a Public Hearing on Thursday, April 11, 2024. The City Council meeting begins
at 4:00 p.m. in the Council Chamber at 73510 Fred Waring Drive, Palm Desert, California.
Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting, allowing
public access via teleconference or in person. Options for remote participation will be listed on
the Posted Agenda for the meeting at: https://www.palmdesert.gov/connect/city-council
REVIEW OF PROJECT INFORMATION: Information concerning the proposed Change of Zone
is available for review in the Office of the City Clerk at 73510 Fred Waring Drive, Palm Desert,
California during regular business hours and on the City’s website at
https://www.palmdesert.gov/connect/city-council
COMMENT ON THIS APPLICATION: Response to this notice may be made as follows:
Written comments may be submitted to the City Council by letter to the address below or email at
CouncilMeetingComments@palmdesert.gov. Transmittal prior to the start of the meeting is
required. Any correspondence received during or after the meeting will be distributed to the City
Council as soon as practicable and retained for the official record.
Any challenge of the proposed project in court may be limited to raising only those issues raised
at the public hearing described in this notice, or in written correspondence delivered to the City
Clerk at, or prior, to the public hearing. (Government Code Section 65009[b][2]).
Si necesita ayuda con esta notificación, por favor llame a la Ciudad de Palm Desert y
comuníquese con Gloria Sanchez (760) 346-0611 ext. 354
PUBLISH: THE DESERT SUN ANTHONY J. MEJIA, MMC, CITY CLERK
MARCH 29, 2024 CITY OF PALM DESERT, CALIFORNIA
Page 855 of 855