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HomeMy WebLinkAbout2024-01-24 CRPC Regular Meeting AgendaCity of Palm Desert Page 1 CULTURAL RESOURCES PRESERVATION COMMITTEE CITY OF PALM DESERT, CALIFORNIA AGENDA (HYBRID MEETING) City Hall, Administrative Conference Room 73-510 Fred Waring Drive Palm Desert, CA 92260 Pursuant to Assembly Bill 2449, this meeting will be conducted as a hybrid meeting. There will be in-person public access to the meeting location. •To participate via Zoom, use the following link: https://palmdesert.zoom.us/j/82890728644 or call (213) 338-8477, Zoom Meeting ID: 828 9072 8644. •Written public comment may also be submitted to cityclerk@palmdesert.gov. Emails received by 5:00 p.m. the day prior to the meeting will be distributed to the Committee. Any correspondence received during or after the meeting will be distributed to the Committee as soon as practicable and retained for the official record. Emails will not be read aloud except as an ADA accommodation. 1.CALL TO ORDER 2.ROLL CALL 3.NON-AGENDA PUBLIC COMMENT: This time has been set aside for the public to address the Cultural Resources Preservation Committee on issues that are not on the agenda for up to three minutes. Because the Brown Act does not allow the Committee 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. 4.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 Calendar within the three-minute time limit. Individual items may be removed by Committee Members for a separate discussion. A.APPROVAL OF MINUTES RECOMMENDATION: Approve the Cultural Resources Preservation Committee Regular Meeting minutes of October 31, 2023. Wednesday January 24, 2024 9:00 a.m. Regular Meeting Page 1 Cultural Resources Preservation Committee Agenda January 24, 2024 City of Palm Desert Page 2 5.ACTION CALENDAR A.REQUEST FOR DIRECTION ON MILLS ACT ELIGIBLE SCOPES OF WORK RECOMMENDATION: Provide staff with direction and input on changes to Appendix A of the Mills Act Guidelines pertaining to eligible scope of work criteria. 6.PUBLIC HEARINGS None. 7.INFORMATIONAL REPORTS & COMMENTS A.CULTURAL RESOURCES PRESERVATION COMMITTEE MEMBERS B.CITY COUNCIL LIAISON C.CITY STAFF 1.CRPC Workplan Update D.ATTENDANCE REPORT 8.ADJOURNMENT: The next Regular Meeting will be held on February 28, 2024, at 9:00 a.m. AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda for the Cultural Resources Preservation Committee was posted on the City Hall bulletin board and City website not less than 72 hours prior to the meeting. /s/ Monique Lomeli, CMC Recording Secretary 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, Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items 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 http://www.palmdesert.gov . 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. Page 2 City of Palm Desert Page 1 CULTURAL RESOURCES PRESERVATION COMMITTEE CITY OF PALM DESERT, CALIFORNIA MINUTES Click HERE to review the meeting audio. Click HERE to access the meeting agenda packet. 1.CALL TO ORDER A Regular Meeting of the Cultural Resources Preservation Committee was called to order by Chair McCune on Tuesday, October 31, 2023, at 9:00 a.m., in the Public Works Conference Room, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2.ROLL CALL Present: Committee Members Paul Clark, Don Graybill, Thomas Mortensen, David Toltzmann, Linda Vassalli, Vice-Chairperson Kim Housken, and Chair Rochelle McCune. Absent: None Liaison(s) Present: Karina Quintanilla, Mayor Pro Tempore City Staff Present: Nick Melloni, Principal Planner; Carlos Flores, Senior Planner; and Michelle Nance, Recording Secretary. 3.NON-AGENDA PUBLIC COMMENT: None. 4.CONSENT CALENDAR: A.APPROVAL OF MINUTES MOTION BY VICE CHAIR HOUSKEN, SECOND BY COMMITTEE MEMBER VASSALLI, CARRIED 7-0, to approve the Cultural Resources Preservation Committee Regular Meeting minutes of September 26, 2023, as amended. Tuesday October 31, 2023 9:00 a.m. Regular Meeting Page 3 Cultural Resources Preservation Committee Minutes October 31, 2023 City of Palm Desert Page 2 5.ACTION CALENDAR: A.CONSIDERATION OF THE NOVEMBER AND DECEMBER 2023 MEETING SCHEDULE MOTION BY CHAIR MCCUNE, SECOND BY VICE CHAIR HOUSKEN, CARRIED 7-0, to approve the cancellation of the November 28 and December 26, 2023, Cultural Resources Preservation Committee meetings. B.REQUEST TO AMEND THE CULTURAL RESOURCES PRESERVATION COMMITTEE REGULAR MEETING SCHEDULE MOTION BY CHAIR MCCUNE, SECOND BY COMMITTEE MEMBER MORTENSEN, CARRIED 7-0, to approve the revised Cultural Resources Preservation Committee Regular meeting schedule, changing the regular meeting day to the fourth Wednesday of each month, effective January 1, 2024. 6.PUBLIC HEARINGS: None. 7.INFORMATIONAL REPORTS & COMMENTS A.CULTURAL RESOURCES PRESERVATION COMMITTEE MEMBERS Vice Chair Housken advised the committee that the free The United States Army Jazz Ambassadors’ concert at the McCallum Theatre on November 4 is sold out and provided a reminder of volunteer opportunities at the City’s 50th Anniversary Celebration on November 18, 2023. Committee Member Toltzmann reported the Shadow Mountain’s designation plaque is missing; requested staff provide the committee with the maps presented at the September meeting. B.CITY COUNCIL LIAISON Mayor Pro Tem Quintanilla provided an update on recent actions taken by the City Council in relation to the local designation of one property and the Mills Act. C.CITY STAFF Principal Planner Melloni provided an update on the Cultural Resources Preservation Committee’s workplan and responded to member inquiries. D.ATTENDANCE REPORT The attendance report was provided with the agenda materials. The Committee took no action on this matter. 8.ADJOURNMENT The Cultural Resources Preservation Committee adjourned at 10:04 a.m. Page 4 Cultural Resources Preservation Committee Minutes October 31, 2023 City of Palm Desert Page 3 Respectfully submitted, Michelle Nance, Deputy Clerk I Recording Secretary ATTEST: Nick Melloni, Principal Planner Secretary APPROVED BY CRPC: ___/___/2023 Page 5 CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT CULTURAL RESOURCES PRESERVATION COMMITTEE MEMORANDUM To: Honorable Chair and Members of the Committee From: Carlos Flores, Senior Planner Date: January 24, 2024 Subject: Request to provide direction on Mills Act Eligible Scopes of Work EXECUTIVE SUMMARY This memorandum is to seek the Committee’s direction and input on changes to Appendix A of the Mills Act Guidelines pertaining to eligible scope of work criteria. City staff is recommending reexamining eligibility criteria to establish clearer scopes of work eligible for Mills Act-related incentives. BACKGROUND The Mills Act (Act), enacted in 1972, is a state law that provides incentives for the restoration and preservation of qualified historic buildings by private property owners. The Act legislation grants participating local governments the authority to enter into contracts with owners of qualified owner-occupied and income-producing property who actively participate in the rehabilitation, restoration, preservation, and maintenance of their historic property. In exchange, participating property owners are eligible for a reduction in their property taxes. The Act is one of the most important incentive programs available in California for owner-occupied historic residential buildings, particularly single-family homes. Act programs are developed in accordance with California Government Code 50280. Per Palm Desert Municipal Code (PDMC) Section 29.70.030 Mills Act contracts, “The application process, review procedures, and required contract provisions for Mills Act Agreements shall be established by separate resolution of the City Council and shall be implemented by the administrator or designee.” On January 13, 2011, the City of Palm Desert City Council (“Council”) adopted Resolution No. 2011-1 (“Resolution”), which established the application process, review procedures, and required contract provisions for the implementation of the Act. On October 26, 2023, the Council adopted an updated resolution that removed the limitation on eligible applications beginning in 2024. Act applications would still only be accepted during June; however, there would be no Page 6 limitation on the number of eligible applications that would be presented to the Council for consideration. Per the City’s Mills Act Program Manual (Manual), Applicants complete a 10-year Property Improvement Plan (Improvement Plan) which lists out proposed projects by year and cost. The Manual references Appendix A for applicants to use as a guide for qualifying projects. Currently, eligible work for participation in the Act includes any necessary repair, maintenance, restoration, or rehabilitation of a Historic Property. The Improvement Plans require review and approval from City Staff and the City Council and must meet all requirements of the Secretary of the Interiors Standards for Rehabilitation. Previously approved Improvement Plans have included roof repairs, appliance changes, landscape fees, and interior remodels. Approved Improvements Plans are attached as exhibits to approved Act Agreements. Per the Manual, Staff is to conduct inspections of the property and the approved scopes of work to ensure compliance with Act Agreements. ANALYSIS Staff is seeking the Committee’s guidance on updating Appendix A of the Guidelines to establish clearer eligibility criteria for Act Applications. The proposed updated Exhibit A would serve as guidance to determine if the proposed projects outlined in the submitted Improvement Plans are eligible for repair, restoration, and/or rehabilitation improvements under the Mills Act Application. All scopes of work would have to meet the Secretary of the Interiors Standards for Rehabilitation. Appendix A categorizes proposed improvements as either contributing to “structure integrity”, “architectural/historical integrity”, or ineligible. “Structure integrity” includes the structural elements of a building (foundation, beams, framing, etc.) and mechanical, electrical, and plumbing systems. “Architectural/Historical Integrity” includes architectural and historical components (windows, doors, roofing, decorative elements, trims, etc) that are integral to the justification for the property having a historical designation.. The proposed work identified in Exhibit A identifies many possible repair, restoration, and/or rehabilitation improvements that would be proposed, separated into categories. The categories in Appendix A are: -Interior -Roofing -Windows/Doors/Awning/Shutters -Exterior Walls -Architectural Elements -Mechanical -Electrical -Plumbing -Fire Protection -Structural/Foundation -Accessory Structures -General Maintenance Page 7 Any work proposed that is not identified within Appendix A is subject to eligibility determination by City Staff, the Cultural Resources Preservation Committee (CRPC), and/or the City Council. Other updates to the Manual would include revisions to dates, Resolution references, and removing references to limitations on the total number of accepted applications. The updated Manual, including an update to Appendix A, will be used for applications submitted in 2024. STAFF RECOMMENDATION Staff recommends the Cultural Resources Preservation Committee recommend approval of Staff’s proposed changes to Appendix A to be included in an updated Mills Act Program Manual beginning in June 2024. Should major modifications arise during the discussion, staff recommended the CRPC clearly outline the requested modifications. Attachments: 1) Mills Act Program Manual 2) Appendix A Update Page 8 1 CITY OF PALM DESERT MILLS ACT PROGRAM APPLICATION MANUAL Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260 (760)346-0611 Page 9 2 TABLE OF CONTENTS APPLICATION INFORMATION Introduction and Purpose 3 Property Qualifications 3 Terms of a Contract 3 Administration 4 Application and Selection Process 5 FORMS Application Checklist 6 Application 7 10-Year Property Improvement Plan 8 APPENDICES A. Sample Projects Qualified Under the Mills Act 10 B. Secretary of the Interior’s Standards for Rehabilitation 11 C. Sample Mills Act Contract 12 D. Sample Site Plan 25 E. Site Inspection Form 26 F. State Mills Act Legislation 27 Page 10 3 MILLS ACT PROGRAM APPLICATION MANUAL INTRODUCTION AND PURPOSE The City of Palm Desert Mills Act Program was established by Resolution No. 2011-1 in 2011. The Mills Act is state legislation, en acted in 1972, that grants participating local governments the authority to enter into contracts with owners of qualified historic properties who receive a reduction in local property taxes to help offset the costs to restore, rehabilitate, repair and maintain their properties. Although it is applicable to historic income producing properties, it is the single most important economic incentive program available in California for owner occupied historic residential buildings, particularly single-family homes. A Mills Act program is developed in accordance with California Government Code, Article 12, Sections 50280-50290 and California Revenue and Taxation Code, Article 1.0, Sections 439-439.4 This manual is designed to assist you in completing the Mills Act application and provides a summary of the program requirements. QUALIFYING HISTORIC PROPERTIES To qualify for the Palm Desert Mills Act program a property must be one of the following:  Designated City Landmark  Contributing feature of a designated City historic district  Listed individually in the National Register of Historic Places  Contributing feature of historic district listed in the National Register of Historic Places  National Historic Landmark A property must be designated at the time an application is submitted. Questions regarding the designation status of a property of the City’s designation program can be addressed to the Cultural Resources Administrator in the Depa rtment of Building and Safety. TERMS OF A MILLS ACT CONTRACT Duration: A Mills Act contract is for a minimum term of ten years. It is automatically renewed each year on its anniversary date and a new ten year term becomes effective. Contracts are transferred to new owners when the property is sol d. Page 11 4 Termination: The property owner may terminate the contract by notifying the City at least ninety (90) days prior to the annual renewal date. The City may terminate the contract by notifying the owner at least sixty (60) days prior to the renewal date. The owner may make a written protest about termination by the City. The contract remains in effect for the balance of the term of the contract beyond the year of termination. Alterations or Additions to a Property: Work performed on the property (interior, exterior, and grounds) must meet all City requirements and comply with the “Secretary of the Interior’s Standards for Rehabilitation”. A 10-Year Property Improvement Plan is required as part of the application and will be re-evaluated by the City every five years or as needed. Annual Reports: Property owners are required to submit an annual report to the City indicating work completed per the 10-Year Property Improvement Plan. The report is due by December 31 of each year and should include copies of receipts and/or building permits where applicable. Inspection for Compliance: City staff conducts a pre-contract inspection of the property to ensure compliance with the terms of the contract. Conditions not conforming to the Secretary of the Interior’s Standards for Rehabilitation may be required to be brought into compliance before a contract is executed. City staff will conduct annual property inspections following submittal of the annual report to ensure that proposed work has been completed and meets all applicable City standards. Inspections may also be required by the County Assessor, State office Historic Preservation and/or State Board of Equalization. All inspections are by appointment with the property owner. Breach of Contract: If the City determines that the property owner is in breach of contract, the City may cancel the contract and the owner is liable for a cancellation fee of 12.5% of the current value of the property as determined by the County Assessor. ADMINISTRATION City of Palm Desert: Mills Act applications and contracts are administered by the Cultural Resources Administrator in the Department of Building and Safety. Upon selection for the program, contracts are reviewed by the Cultural Resources Preservation Committee and referred to the City Council for approval. Riverside County: The County records executed Mills Act contract documents with the County Recorder before December 31 of the applicable calendar year. After recordation, the City transmits contract documents to the Riverside County Assessor where the calculation for the exact property tax under the Mills Act is completed. Page 12 5 The County Assessor calculates the tax saving using a stated-mandated reassessment formula based on “capitalization of income” rather than simple “market value.” Mills Act participants may realize a property tax savings averaging about 50% each year depending on property value, net operating income, and other variables. Recently purchased historic properties are most likely to receive the highest reduction. The Mills Act Program does not guarantee a reduction amount for any property. Contracts that are recorded by December 31 are reassessed by June 30 of the following year and the reduced tax will appear on the tax bill of October of that year. State of California: Within six months of entering into a Mills Act contract, the prope rty owner must submit written notice to the State Office of Historic Preservation. This notification states that the property owner has entered into a Mills Act contract. A copy of the letter must be submitted to the City Cultural Resources Administrator. APPLICATION AND SELECTION PROCESS The City accepts up to seven (7) Mills Act contracts per year. Applications are accepted year-round, but to be considered for the next fiscal year applications must be submitted by July 30th. Fees: A non-refundable application fee of $318.00 is due with your application. If your application is accepted, a contract initiation fee deposit of $1000.00 will be due. Submittal Requirements: The application should include the following: 1. Application Checklist 2. Application Form 3. Copy of the grant deed, including a complete legal description 4. 10-Year Property Improvement Plan 5. Photographs – Photographs shall be black and white 35mm film including negatives or compact disc (CD) of the building interior (all rooms) and exterior (front, sides, rear as well as assessor buildings, and hardscape and landscape features). Include as many views of architectural details as necessary to document the character defining features of the building and site. Include one 8 x 10 printed image that best captures the property, (e.g. front façade). Images shall be printed onto archival paper in 3 x 5, 4 x 6 or multiple image letter sized sheet format. 6. Site plan – The plan shall be drawn to scale and showing the location of all buildings, structures and major site features on the property, street names, north arrow, and dimensions. 7. Non-refundable application fee of $318.00 The complete application should be submitted to: Cultural Resources Administrator Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Page 13 6 City of Palm Desert Mills Act Application Checklist The following should be completed and submitted with your application packet. See the Palm Desert Mills Act Application Manual for details on the submittal requirements. † Application Form † Copy of the grant deed, including complete legal description † 10-Year Property Improvement Plan † Photographs † Site Plan † Non-Refundable Application Fee The complete application should be submitted to: Cultural Resources Administrator Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Page 14 7 City of Palm Desert Department of Building and Safety MILLS ACT HISTORIC PROPERTY CONTRACT APPLICATION 73-510 Fred W aring Drive · Palm Desert · California · 92260 · (760) 776-6420 · Fax (760) 776-6392 Property Owner Information: Name: Address: City: State: Zip: Phone: (HM) (WK) Email: Property Information: Address of Property: Assessor’s Parcel No(s): Legal Description (attach additional sheets if necessary): Date of Purchase by Current owner: Use of Property: Eligibility for the Mills Act Program: A property must be designated and recorded with the Riverside County Recorder at the time an application is submitted. Please check the designation(s) that apply to the property: City Historic Landmark Contributor to a City Historic District National Register of Historic Places (individually listed) National Register of Historic Places (contributor to a historic district) National Historic Landmark Name of Historic District (if applicable): Date of Designation: Property Owner Consent: I am (w e are) the present ow ner(s) of the property described above and hereby apply for consideration for a Mills Act Historic Property Contract Signature of Property Owner Date Signature of Property Owner Date For Office Use: Mills Act Application Page 15 8 10-Year Property Improvement Plan For sample projects qualifying under the Mills Act see Appendix “A”. Attach additional sheets if necessary. Year Proposed Project Estimated Cost 1 2 3 4 5 6 7 8 9 10 This schedule will be attached as an exhibit to the Historic Property Preservation Agreement (Mills Act Contract). It may be revised or updated by mutual consent of the property owner(s) and the Cultural Resources Administrator in the Department of Building and Safety. All projects that affect the exterior of the property are subject to review and approval by the Cultural Resources Administrator and/or the Cultural Resources Preservation Committee before work begins. Work must meet all City requirements and the Secretary of the Interior’s Standards for Rehabilitation (Appendix B). Page 16 APPENDICES A.Sample Projects Qualified Under the Mills Act B.Secretary of the Interior’s Standards for Rehabilitation C.Sample Mills Act Contract Agreement D.Sample Site Plan E.Site Inspection Form F.State Mills Act Legislation Page 17 APPENDIX A Sample Projects Qualified Under the Mills Act Program Access Modifications – Exterior Access Modifications – Interior Accessory Structure – Repair or Replace Annual Maintenance and Repairs Appliance Vent Architectural – Remove Non-historic feature and Restore to Original Architectural Trim – Repair Architectural Trim – Replace Architectural Trim – Install New Balcony/Decks – New Railings Balcony/Decks – Repair or Replace Basement – Access – Repair or Replace to Code Basement – New or Rebuild Cabinets – New Built-in Bathroom Cabinets – New Built-in Kitchen Cabinets – New Built-in Other Caulking Chimney – Inspect and Clean Chimney – New Chimney – Rebuild or Repair Code Repair Item Column – Replace or Rebuild Corbels/Structural Brackets – Replace or Repair Door – Hardware Door – New Basement Hatch Cover and Base Door – Repair or Replace Drain for Deck – Install or Repair Drainage Protection or Correction Dry-Rot Remove, Repair, and/or Replace Electrical – Rewire or Install New Outlets Electrical – Complete Rewire and Service Upgrade Electrical – Ground and Service Entry Electrical – Install New Circuits Electrical – Lighting Fixtures Electrical – New Service Lines to Garage Electrical – Security Lighting and Alarm Electrical – New Outlets Flashing Floor Furnace – Remove or Restore Flooring – Carpet Flooring – Repair Flooring - Repair Wood Floors Flooring – Replacement Foundation – Bolting and Seismic W ork Foundation – New Foundation – Repair Gable or Attic – Re-screening Garage Door Garage – Repair or Replace Gutters and Downspouts HVAC – Complete New System HVAC – Maintenance or Repair Insulation – Walls Insulation – Attic Interior Trim – Refinish Kitchen – New Counters Masonry – New Masonry – Repair or Replace Tile Hearth Masonry – Repairs Masonry – Re-point Brick Mechanical – Air Conditioning Mechanical – Heating Unit Mechanical – Ventilation and Duct W ork Painting – Exterior Painting – Interior Painting – Lead Based Paint Removal Painting – Exterior Trim Patio – Repair Plastering – Remove, Replace, or Refinish Plumbing – DWV (Drain, Waste, Vent) Plumbing – Fixtures Plumbing – Install New Supply Lines Plumbing – Install Sump Pump & discharge drain Plumbing – Minor Repairs Plumbing – New Supply Plumbing – Service Lines Plumbing – Sewer Porch – Ceiling Replacement Porch – Repair or Replace Porch Railing – Repair or Replace to Code Porch – Resurface Remove Substandard Construction Repair Eaves and/or Overhangs Repair Exterior Stucco Replace Non-historic Feature Roof – Minor Repair Roof – Re-roof Roof – Tear off and Install New Security Lighting and Alarm System Seismic Retrofitting Siding – Remove Asbestos Siding and Restore Siding – Repair or Replace Skylights – Repair or Replace Stair – Repair or Replace Stone W ork Stoop – Repair or Replace Structural – New Framing or Repairs Structural Bracing Structural Modifications Structural Repairs – Roof and or Ceiling Joists Termite Treatment Termite Damage – Repair Tile – Replace, Repair, Re-point Utility Enclosure – New Ventilation – Attic Fan Waterproofing Weatherproofing Window – Screens or Hardware Windows – Repair or Replacement Page 18 APPENDIX B The Secretary of the Interior's Standards for Rehabilitation The Standards (Department of Interior regulations, 36 CFR 67) pertain to historic buildings of all materials, construction types, sizes, and occupancy and encompass the exterior and the interior, related landscape features and the building's site and environment as well as attached, adjacent, or related new construction. The Standards are to be applied to specific rehabilitation projects in a reasonable manner, taking into consideration economic and technical feasibility. 1.A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment. 2.The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided. 3.Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken. 4.Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved. 5.Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a property shall be preserved. 6.Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence. 7.Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible. 8.Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken. 9.New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment. 10.New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired. Page 19 APPENDIX C Recording Requested by: ) When Recorded Mail to: ) ) CITY OF PALM DESERT ) 73-510 Fred W aring Drive ) Palm Desert, CA 92260 ) ) Attention: Cultural Resources ) Administrator ) ) ) ) (Space above for Recorder’s Office) HISTORIC PROPERTY PRESERVATION AGREEMENT (“MILLS ACT CONTRACT”) betw een THE CITY OF PALM DESERT a municipal corporation and Owner(s) of the property located at APN - - Page 20 HISTORIC PROPERTY PRESERVATION AGREEMENT (“MILLS ACT CONTRACT”) This agreement is made this _, by and between the City of Palm Desert, a municipal corporation (“City”) and (“Owner”). RECITALS 1.California Government Code section 50280, et. seq. allow cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance. 2.Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference. 3. On ,_ , the Cultural Resources Preservation Committee and/or the City Council designated the Historic Property as an historic resource pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code. 4.City and Owner desire to enter into this Agreem ent for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character. 5.Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. TERMS NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: Page 21 1.Effective Date and Term of Agreement. This Agreem ent shall be effective and commence on _, 20_ effect for a term of ten (10) years thereafter. (“Effective Date”) and shall remain in 2.Yearly Renewal. Each year upon the anniversary of the Effective Date (“Renewal Date”), an additional one (1) year shall automatically be added to the remaining term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreem ent. 3.Nonrenewal. If either the Owner or City desires in any year not to renew this Agreem ent, Owner or City shall serve a written notice of nonrenewal upon the party in advance of the Renewal Date (“Notice of Nonrenewal”). The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then remaining. 4.Owner Protest of City Nonrenewal. Within fifteen (15) days of Owner’s receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protect, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreem ent. Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5.Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: A.Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Attached hereto as Exhibit “B,” and incorporated herein by this reference, is a list of the minimum standards and conditions for maintenance, use, protection, and Page 22 18 preservation of the Historic Property, which shall apply to the Historic Property and be complied with by Owner throughout the term of this Agreem ent. In addition, Owner shall comply with the terms of the City’s Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal Code), and shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate the Historic Property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation and the City of Palm Desert. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs attached as Exhibit “C” and incorporated herein by this reference. At a minimum, Owner shall continually maintain the exterior of the Historic Property in the same condition as documented in Exhibit “C.” C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit “D,” which is incorporated herein by this reference. All such projects shall be undertaken and completed in accordance with the Secretary of Interior Standards for Rehabilitation and the City of Palm Desert design guidelines. D. Owner shall not be permitted to block the view corridor with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the Historic Property from the public right-of-way. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement. 7. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable Page 23 19 to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. 8.Breach of Agreement; Remedies. A.Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner’s violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City’s declaration of Owner’s breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B.Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50286, that Owner breached any of the conditions of the Agreement, Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to maintain and preserve the Historic Property in accordance with the terms of this Agreement. If this Agreem ent is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Riverside as required by Government Code section 50286. C.Alternative Remedies. As an alternative to cancellation of this Agreement for Owner’s breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9.Destruction of Property; Eminent Domain; Cancellation. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the Page 24 20 opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled. No cancellation fee pursuant to Government Code section 50286 shall be imposed if the Agreem ent is cancelled pursuant to this Section. 10. Waiver. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreem ent. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to the City to pursue in the event that there is a reach of this Agreem ent. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 11. Binding Effect of Agreement. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument herein after executed, covering or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions are set forth in such contract, deed or other instrument. 12. Covenants Run with the Land. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. Page 25 21 13. Notice. Any notice required to be given by the terms of this Agreem ent shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City: City of Palm Desert Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260 Owner: 14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15. Indemnity of City. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restrictions on the use or development of the Historic Property, from application or enforcem ent of Title 29 of the City’s Municipal Code, or from the enforcement of this Agreement. This indem nification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreem ent and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents. Page 26 22 16. Binding Upon Successors. All of the agreements, rights, covenants, reservations and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever. 17. Legal Costs. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorneys’ fees to be fixed by the court, in addition to court costs and other relief ordered by the court. 18. Severability. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19. Recordation. No later than twenty (20)days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Riverside. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract. 20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21. Governing Law and Venue. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. Page 27 23 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney Page 28 24 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 ___________________ } } SS. County of __________________ } On , 2018 , before me,____________________, a Notary Public, personally appeared__________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature Page 29 25 APPENDIX D Page 30 26 APPENDIX E MILLS ACT PROGRAM CITY STAFF ANNUAL INSPECTION REPORT Date of inspection: † Drive-by † Site Visit Staff Name: Was work completed in accordance with all City requirements? † Yes † No Comments: Signature: Page 31 27 APPENDIX F GOVERNMENT CODE SECTION 50280-50290 50280. Upon the application of an owner or the agent of an owner of any qualified historical property, as defined in Section 50280.1, the legislative body of a city, county, or city and county may contract with the owner or agent to restrict the use of the property in a manner which the legislative body deems reasonable to carry out the purposes of this article and of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code. The contract shall meet the requirements of Sections 50281 and 50282. 50280.1. "Qualified historical property" for purposes of this article, means privately owned property which is not exempt from property taxation and which meets either of the following: (a)Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.191-2(b) of Title 26 of the Code of Federal Regulations. (b)Listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks. 50281. Any contract entered into under this article shall contain the following provisions: (a)The term of the contract shall be for a minimum period of 10 years. (b)Where applicable, the contract shall provide the following: (1)For the preservation of the qualified historical property and, when necessary, to restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code. (2)For the periodic examinations of the interior and exterior of the premises by the assessor, the Department of Parks and Recreation, and the State Board of Equalization as may be necessary to determ ine the owner's compliance with the contract. (3)For it to be binding upon, and inure to the benefit of, all successors in interest of the owner. A successor in interest shall have the same rights and obligations under the contract as the original owner who entered into the contract. (c)The owner or agent of an owner shall provide written notice of the contract to the Office of Historic Preservation within six months of entering into the contract. 50281.1. The legislative body entering into a contract described in this article may require that the property owner, as a condition to entering into the contract, pay a fee not to exceed the reasonable cost of administering this program. 50282. (a) Each contract shall provide that on the anniversary date of the contract or such other annual date as is specified in the contract, a year shall be added automatically to the initial term of the contract unless notice of nonrenewal is given as provided in this section. If the property owner or the legislative body desires in any year not to renew the contract, that party shall serve written notice of nonrenewal of the contract on the other party in advance of the annual renewal date of the contract. Unless the notice is served by the owner at least 90 days prior to the renewal date or by the legislative body at least 60 days prior to the renewal date, one year shall automatically be added to the term of the contract. (b) Upon receipt by the owner of a notice from the legislative body of nonrenewal, the owner may make a written protest of the notice of nonrenewal. The legislative body may, at any time prior to the renewal date, withdraw the notice of nonrenewal. (c)If the legislative body or the owner serves notice of intent in any year not to renew the contract, the existing contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the contract, as the case may be. (d)The owner shall furnish the legislative body with any information the legislative body shall require in order to enable it to determine the eligibility of the property involved. (e) No later than 20 days after a city or county enters into a contract with an owner pursuant to this article, the clerk of the legislative body shall record with the county recorder a copy of the contract, which shall Page 32 28 describe the property subject thereto. From and after the time of the recordation, this contract shall impart a notice thereof to all persons as is afforded by the recording laws of this state. 50284. The legislative body may cancel a contract if it determines that the owner has breached any of the conditions of the contract provided for in this article or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The legislative body may also cancel a contract if it determines that the owner has failed to restore or rehabilitate the property in the manner specified in the contract. 50285. No contract shall be canceled under Section 50284 until after the legislative body has given notice of, and has held, a public hearing on the matter. Notice of the hearing shall be mailed to the last known address of each owner of property within the historic zone and shall be published pursuant to Section 6061. 50286. (a) If a contract is canceled under Section 50284, the owner shall pay a cancellation fee equal to 121/2 percent of the current fair market value of the property , as determined by the county assessor as though the property were free of the contractual restriction. (b)The cancellation fee shall be paid to the county auditor, at the time and in the manner that the county auditor shall prescribe, and shall be allocated by the county auditor to each jurisdiction in the tax rate area in which the property is located in the same manner as the auditor allocates the annual tax increment in that tax rate area in that fiscal year. (c)Notwithstanding any other provision of law, revenue received by a school district pursuant to this section shall be considered property tax revenue for the purposes of Section 42238 of the Education Code, and revenue received by a county superintendent of schools pursuant to this section shall be considered property tax revenue for the purposes of Article 3 (commencing with Section 2550) of Chapter 12 of Part 2 of Division 1 of Title 1 of the Education Code. 50287. As an alternative to cancellation of the contract for breach of any condition, the county, city, or any landowner may bring any action in court necessary to enforce a contract including, but not limited to, an action to enforce the contract by specific performance or injunction. 50288. In the event that property subject to contract under this article is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the legislative body to frustrate the purpose of the contract, such contract shall be canceled and no fee shall be imposed under Section 50286. Such contract shall be deemed null and void for all purposes of determining the value of the property so acquired. 50289. In the event that property restricted by a contract with a county under this article is annexed to a city, the city shall succeed to all rights, duties, and powers of the county under such contract. 50290. Local agencies and owners of qualified historical properties may consult with the State Historical Resources Commission for its advice and counsel on matters relevant to historical property contracts. Page 33 29 California Revenue and Taxation Code, Article 1.9, Sections 439 – 439.4 439. Historical Property Restrictions; enforceably restricted property. For the purposes of this article and within the meaning of Section 8 of Article XIII of the Constitution, property is "enforceably restricted" if it is subject to an historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. 439.1. Historical Property; definitions. For purposes of this article "restricted historical property" means qualified historical property, as defined in Section 50280.1 of the Government Code, that is subject to a historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. For purposes of this section, "qualified historical property" includes qualified historical improvements and any land on which the qualified historical improvements are situated, as specified in the historical property contract. If the historical property contract does not specify the land that is to be included, "qualified historical property" includes only that area of reasonable size that is used as a site for the historical improvements. 439.2. Historical Property; valuation. When valuing enforceably restricted historical property, the county assessor shall not consider sales data on similar property, whether or not enforceably restricted, and shall value that restricted historical property by the capitalization of income method in the following manner: (a) The annual income to be capitalized shall be determined as follows: (1) Where sufficient rental information is available, the income shall be the fair rent that can be imputed to the restricted historical property being valued based upon rent actually received for the property by the owner and upon typical rentals received in the area for similar property in similar use whe re the owner pays the property tax. When the restricted historical property being valued is actually encumbered by a lease, any cash rent or its equivalent considered in determining the fair rent of the property shall be the amount for which the property would be expected to rent were the rental payment to be renegotiated in the light of current conditions, including applicable provisions under which the property is enforceably restricted. (2) Where sufficient rental information is not available, the income shall be that which the restricted historical property being valued reasonably can be expected to yield under prudent management and subject to applicable provisions under which the property is enforceably restricted. (3) If the parties to an instrument that enforceably restricts the property stipulate therein an amount that constitutes the minimum annual income to be capitalized, then the income to be capitalized shall not be less than the amount so stipulated. For purposes of this section, income shall be determined in accordance with rules and regulations issued by the board and with this section and shall be the difference between revenue and expenditures. Revenue shall be the amount of money or money's worth, including any cash rent or its equivalent, that the property can be expected to yield to an owner- operator annually on the average from any use of the property permitted under the terms by which the property is enforceably restricted. Expenditures shall be any outlay or average annual allocation of money or money's worth that can be fairly charged Page 34 30 against the revenue expected to be received during the period used in computing the revenue. Those expenditures to be charged against revenue shall be only those which are ordinary and necessary in the production and maintenance of the revenue for that period. Expenditures shall not include depletion charges, debt retirement, interest on funds invested in the property, property taxes, corporation income taxes, or corporation franchise taxes based on income. (b) The capitalization rate to be used in valuing owner-occupied single family dwellings pursuant to this article shall not be derived from sales data and shall be the sum of the following components: (1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent. (2) A historical property risk component of 4 percent. (3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio. (4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life. (c) The capitalization rate to be used in valuing all other restricted historical property pursuant to this article shall not be derived from sales data and shall be the sum of the following components: (1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent. (2) A historical property risk component of 2 percent. (3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio. (4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life. (d) Unless a party to an instrument that creates an enforceable restriction expressly prohibits the valuation, the valuation resulting from the capitalization of income method described in this section shall not exceed the lesser of either the valuation that would have resulted by calculation under Section 110, or the valuation that would have resulted by calculation under Section 110.1, as though the property was not subject to an enforceable restriction in the base year. (e) The value of the restricted historical property shall be the quotient of the inco me determined as provided in subdivision (a) divided by the capitalization rate determined as provided in subdivision (b) or (c). (f) The ratio prescribed in Section 401 shall be applied to the value of the property determined in subdivision (d) to obtain its assessed value. 439.3. Historical Property; notice of nonrenewal. Notwithstanding any provision of Section 439.2 to the contrary, if either the county or city or the owner of restricted historical property subject to contract has served notice of Page 35 31 nonrenewal as provided in Section 50282 of the Government Code, the county assessor shall value that restricted historical property as provided in this section. (a) Following the hearing conducted pursuant to Section 50285 of the Government Code, subdivision (b) shall apply until the termination of the period for which the restricted historical property is enforceably restricted. (b) The board or assessor in each year until the termination of the period for which the property is enforceably restricted shall do all of the following: (1) Determine the full cash value of the property pursuant to Section 110.1. If the property is not subject to Section 110.1 when the restriction expires, the value shall be determined pursuant to Section 110 as if the property were free of contractual restriction. If the property will be subject to a use for which this chapter provides a special restricted assessment, the value of the property shall be determined as if it were subject to the new restriction. (2) Determine the value of the property by the capitalization of income method as provided in Section 439.2 and without regard to the fact that a notice of nonrenewal or cancellation has occurred. (3) Subtract the value determined in paragraph (2) of this subdivision by capitalization of income from the full cash value determined in paragraph (1). (4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (b) of Section 439.2, discount the amount obtained in paragraph (3) for the number of years remaining until the termination of the period for which the property is enforceably restricted. (5) Determine the value of the property by adding the value determined by the capitalization of income method as provided in paragraph (2) and the value obtained in paragraph (4). (6) Apply the ratios prescribed in Section 401 to the value of the property determined in paragraph (5) to obtain its assessed value. 439.4. Historical Property; recordation. No property shall be valued pursuant to this article unless an enforceable restriction meeting the requirements of Section 439 is signed, accepted and recorded on or before the lien date for the fiscal year in which the valuation would apply. Page 36 APPENDIX A Eligible Scope of Work The table below serves as guidance to determine if the proposed project(s) outlined in the 10-year Property Improvement Plan are eligible repair, restora�on, and/or rehabilita�on improvements under the Mills Act Applica�on. The table categorizes each improvement as either contribu�ng to “structure integrity”, “architectural/historical integrity”, or ineligible. “Structure integrity” includes the structural elements of a building (founda�on, beams, framing, etc.) and mechanical, electrical, and plumbing systems. “Architectural/Historical Integrity” includes architectural and historical components (windows, doors, roofing, decora�ve elements, trims, etc) that are integral to the jus�fica�on for the property having a historical designa�on. Any work proposed that is not iden�fied within the table below is subject to eligibility determina�on by City Staff, the Cultural Resources Preserva�on Commitee (CRPC), and/or City Council. SCOPE OF WORK ELIGIBLE INELIGIBLE Structure Integrity Architectural and/or Historical Integrity Interior 1.New/repair appliances X 2.New/repair carpet X 3.New/repair countertops X 4.New/repair flooring X 5.Interior pain�ng X 6.Changes to interior walls X 7.Carpentry restora�on work (example: Windows, molding, framing)X Roofing 8.Patch/Repair Roof X 9.New Roof (different material)X 10.New roof (original material)X X 11.Altering Building Roof (ridge, dormers, gables, etc.)X 12.Repair roof framing X 13.Repair of eaves/overhangs X 14.Flashing/waterproofing X 15.Install roo�op photovoltaic system (Solar panels)X Windows/Doors/Awning/Shuters 16.Replace exterior doors and/or windows X 17.Altera�on/crea�on of window or door opening X 18.Replacement/repair of shuters or awnings X 19.Install or remove shuters or awnings X Exterior Walls Page 37 APPENDIX A 20.Whole house exterior pain�ng X 21.Touch up paint X 22.Re-stucco (like for like)X 23.Stucco repair (like for like)X 24.Repair, restore, or repaint masonry X 25.Cleaning of walls X 26.New/replacement wall cladding X Architectural Elements 27.Repair, remove, or alter exis�ng pa�os, balconies, and/or chimneys X 28.Construct new pa�o, balcony, and/or chimney X 29.Construct new atached wall X 30.Repair or replace guters and downspouts X 31.Repair exis�ng architectural element X 32.Add new architectural element X Mechanical 33.New HVAC system(s)X 34.New ven�ng or duct work X 35.New water heater X 36.New fans X 37.HVAC system maintenance/repair X Electrical 38.New electrical outlets, circuits, panels X 39.Whole house rewiring X 40.Electrical panel upgrade X 41.New service lines to detached structure X 42.Electric vehicle charger X 43.Batery storage or generator X 44.Security ligh�ng and/or alarm system X 45.Exterior ligh�ng fixtures X 46.Interior ligh�ng fixtures X Plumbing 47.Whole house repiping X 48.New plumbing fixtures (sink, tub, shower, faucets)X 49.Plumbing repairs X 50.New service or supply lines X Fire Protec�on 51.Install fire sprinkler system X 52.Install smoke/CO2 alarms X Structural/Founda�on 53.Founda�on bol�ng, wall bracing, and related seismic work X 54.New/repair founda�on 55.Seismic retrofi�ng Page 38 APPENDIX A 56.Repair or reinforce wall/ceiling framing or bracing Drainage/Water Protec�on 57.Flashing X 58.New/repair Exterior Drains 59.Water damage repair (interior/exterior) 60.Re-grading of property for drainage purposes Accessory Structures 61.New/repair of walls or fences X 62.Landscaping and hardscape X 63.ADU or JADU construc�on X 64.Install/remove/repair swimming pool X 65.Construct/repair/removal of original accessory structure X 66.Construct/repair/removal of non-original accessory structure X General Maintenance 67.HOA Fees X 68.Regular common area or landscaping fees X 69.Termite Treatment X 70.Mold remedia�on 71.Abestos remedia�on 72.Radon gas preven�on/remedia�on 73.Lead-based paint removal Page 39 Cultural Resources Preservation Committee Workplan Goals Update 2023- 2024 CULTURAL RESOURCES PRESERVATION COMMITTEE JANUARY 24, 2024 1/24/2024 1Page 40 Background •November 9, 2022 –Meeting to discuss work plan•GIS, Mills Act, Certified Local Government (CLG), Survey •May 5, 2023 –Special Meeting to set the goals and prioritiesfor the 2023/2024 fiscal year•5 priorities identified •June 8, 2023 –City Council received goals and gave staffdirection on implementation •October 31, 2023–Committee was provided update on goals.Requested regular updates of goals. 1/24/2024 2Page 41 Work Plan 1/24/2024 3 Priority Next Steps /Resources Action Taken 1.50th Anniversary events,City events,and Modernism Week to include: •Explore creation of yard signs or similar device for residential properties 50 years or older Assign a subcommittee to work with public affairs regarding modernism week. CRPC will establish a subcommittee to plan for event participation during 2023. COMPLETED -Staff ordered the printing of 100-yard signs to provide to the Palm Desert Historic Preservation Society to identify structures older than 50 years.Worked with Committee Member Toltzmann who worked on distribution. Maps created. 2.Update and maintain inventory of current historical landmarks and make them available on the City’s website. •Convert the existing driving tour document to a searchable document and reformat •Provide a brochure on the website with links to informational resources on how to research a historic structure. Staff will update maps of historic resources and landmark districts to show locations on the City website using existing ESRI software resources. ONGOING –City to currently in process of hiring a GIS Analyst to assist in the preparation of maps and data layers.To create: -Story Maps -Shapefiles of existing Mills Act Contracts,Designated Landmarks, and future properties eligible for designation 3.Establish a historic resources survey and a Citywide historic context statement. Staff will seek a consultant to prepare the survey and statement. $40,000 which was previously budgeted and allocated to the preparation of Objective Design Standards for Multifamily Housing may be re-allocated to the preparation this survey. ONGOING –Draft scope of work to issue a request for proposal to hire a consultant to prepare a historic context statement and City-wide historic reconnaissance survey to identify potential eligible historic sites for properties older than 45 years. Establish that the survey must be National Register Bulletin 24 –Guidelines for Local Surveys.This will include preparation of GIS data to establish maps of eligible structure locations. Page 42 Work Plan 1/24/2024 4 4.Seek certified local government (CLG) designation Staff will assess the potential to file an application and hire a consultant to prepare the application.Final approval of the application will require City CouncilApproval. Communicating Certified Local Government Coordinator at the California Office of Historic Preservation for the submittal of a draft application,prior to the final application.Allows corrections in a less formal manner. Future Action :Staff to obtain resumes and commissioner qualifications of committee members. Plan for future historic preservation plan (context statement). 5.Continue to review Mills Act Contracts and consider requesting the Council modify or remove the application limits established by Resolution No.2011-1. Staff will amend the resolution establishing the application process,and review procedures to implement the Mills Act by increasing the number of preservation agreements the City may enter into per calendar year or removing the requirement altogether. Completed –Removal of restriction. Draft guidelines presented. Priority Next Steps /Resources Action Taken Page 43 Discussion 1/24/2024 5 ◦Establish that certain goals will carry into next year. ◦Establish new goals for committee to present to the City Council in May/June 2024. ◦Staff recommends Committee Members return individual priorities from each committee member.Email to staff by February 7,2024,at 5:00 PM Page 44 Cultural Resource Preservation Committee Year 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 Month Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Day 26 28 31 26 - - 27 5 25 - - - Clark, Paul - - P P - - P P P - - -0 0 Graybill, Don - - P P - - P P P - - -0 0 Housken, Kim - - P P - - P P P - - -0 0 McCune, Rochelle - - P P - - P P P - - -0 0 Mortensen, Thomas - - P P - - P P P - - -0 0 Toltzmann, David - - P P - - P P P - - -0 0 Vassalli, Linda - - P P 0 0 0 0 P Present P Remote A Absent E Excused -No Meeting Resigned/Not Yet Appoint Palm Desert Municipal Code 2.34.010 Monthly: Three unexcused absences from regular meeting in any twelve-month period shall constitute an automatic resignation of members holding office on boards that meet bimonthly. Please contact the Recording Secretary to discuss any attendance concerns. Total Absences Unexcused Excused Page 45