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HomeMy WebLinkAboutPost-Meeting Agenda Package - Palm Desert City Council - Regular Meeting_Feb26_2026 PALM DESERT CITY COUNCIL REGULAR MEETING POST-MEETING AGENDA Thursday, February 26, 2026 Closed Session 3:00 p.m.; Regular Session 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, Palm Desert Housing Authority and the Palm Desert Board of Library Trustees. Pursuant to Sentate Bill 707, 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 “Meeting Agendas” link at the top of the homepage, or on the City's YouTube Channel. OPTIONS FOR PARTICIPATING IN THIS MEETING: OPTION 1: IN PERSON Attend in person in the Council Chamber, located at 73510 Fred Waring Drive, Palm Desert, California 92260. OPTION 2: VIA EMAIL Send your comments by email to: CityClerk@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 3: LIVE VIA ZOOM Access via palmdesert.gov/zoom or zoom.us, click “Join Meeting” and enter Webinar ID 833 6744 9572. 1. OPTION 4: 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 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 - CLOSED SESSION - 3:00 P.M. 2.PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY This time has been set aside for members of the public to address the City Council on items contained only on the Closed Session Agenda within the three- minute time limit. Speakers may utilize one of the three options listed on the first page of this agenda. 3.RECESS TO CLOSED SESSION 4.CLOSED SESSION AGENDA The following items were considered in closed session: 4.a Closed Session Meeting Minutes: February 12, 2026 4.b Conference with Real Property Negotiations pursuant to Government Code Section 54956.8 Property Description: APN 630-250-052 (Northwest corner of Portola Avenue and Haystack Road) Agency: City of Palm Desert City Negotiator: Chris Escobedo/Richard Cannone/Martin Alvarez Negotiating Parties: Marrakesh Country Club (MCC) Under Negotiation: Price and Terms 5.ROLL CALL - REGULAR MEETING - 4:00 P.M. 6.PLEDGE OF ALLEGIANCE Mayor Pro Tem Pradetto 7.INSPIRATION Councilmember Harnik 8.REPORT OF CLOSED SESSION City Attorney Shah 9.AWARDS, PRESENTATIONS, AND APPOINTMENTS 9.a PROCLAMATION - LEADERSHIP COACHELLA VALLEY 25TH ANNIVERSARY 9 9.b PRESENTATION - LEADERSHIP COACHELLA VALLEY 11 9.c PRESENTATION - RIVERSIDE UNIVERSITY HEALTH SYSTEM, MATURE ADULT PROGRAM 10.CITY MANAGER COMMENTS 10.a SHERIFF DEPARTMENT UPDATE 19 10.b FIRE DEPARTMENT UPDATE 11.MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Palm Desert City Council Meeting Agenda October 23, 2025 2 12.NONAGENDA PUBLIC COMMENTS 21 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. 13.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. 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES 23 RECOMMENDATION: Approve the Minutes of February 12, 2026. 13.b APPROVAL OF WARRANT REGISTERS 37 RECOMMENDATION: Approve the warrant registers issued for the period 2/5/2026 to 2/12/2026. 13.c JANUARY 2026 PROCUREMENT REPORT 61 RECOMMENDATION: Receive and file the monthly Procurement Report for January 2026. 13.d ADOPTION OF ORDINANCE 1442 APPROVING A THIRD AMENDMENT TO DEVELOPMENT AGREEMENT 96-1 WITH WVC RANCHO MIRAGE, INC. FOR DESERT WILLOW, EXTENDING THE TERM TO AUGUST 27, 2026, AND FINDING THE PROJECT EXEMPT UNDER CEQA. 71 RECOMMENDATION: Adopt Ordinance No. 1442 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR THE DESERT WILLOW, EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT BY SIX (6) MONTHS TO AUGUST 27, 2026, AND FINDING THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.” Palm Desert City Council Meeting Agenda October 23, 2025 3 13.e RATIFICATION OF LETTER SUPPORTING ASSEMBLY BILL 1708 (SOLACHE) – HOMELESS HOUSING, ASSISTANCE, AND PREVENTION (HHAP) PATHWAYS FOR CITIES ACT 83 RECOMMENDATION: Ratify the issuance of the letter supporting Assembly Bill 1708 (Solache) - Homeless Housing, Assistance, and Prevention (HHAP) Pathways for Cities Act. 13.f RATIFICATION OF LETTER SUPPORTING CITY OF INDIAN WELLS LOW FLOW CHANNEL PROJECT (PROPOSITION 1 GRANT APPLICATION) 91 RECOMMENDATION: Ratify the issuance of the letter supporting the City of Indian Wells’ Proposition 1 grant application to the Coachella Valley Mountains Conservancy for the Low Flow Channel Capital Improvement Project. 13.g RATIFICATION OF LETTER SUPPORTING CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO COMMUNITY PROJECT FUNDING REQUEST FOR REGIONAL ENTREPRENEURIAL RESOURCE CENTERS 95 RECOMMENDATION: Ratify the issuance of a letter supporting California State University, San Bernardino’s $2.49 million Community Project Funding request for the Regional Entrepreneurial Resource Centers program. 13.h AMENDMENT TO THE 2026 CITY COUNCIL LIAISON AND SUBCOMMITTEE ASSIGNMENTS 101 RECOMMENDATION: Approve amendments to the 2026 City Council Liaison and Subcommittee Assignments. 13.i APPROVE A FISCAL YEAR 2025/26 EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT MID-YEAR BUDGET ADJUSTMENT AND AMEND THE FG CREATIVE MARKETING SERVICES CONTRACT. 107 RECOMMENDATION: Appropriate $50,000 to El Paseo Business Improvement District Account No. 2714491-4321500 as part of the FY 2025-26 Midyear Review. 1. Approve Amendment No. 7 to Contract No. C43370 with FG Creative to increase the FY 2025-26 not-to-exceed contract amount from $250,000 to $325,000. 2. Authorize the City Manager to execute Amendment No. 7 and make any necessary non-monetary changes to the agreement. 3. Palm Desert City Council Meeting Agenda October 23, 2025 4 13.j EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE CITY AND THE CLUB MCC (MARRAKESH COUNTRY CLUB) FOR PROPERTY KNOWN AS THE HAYSTACK/PORTOLA SITE 167 RECOMMENDATION: Authorize the City Manager to execute a six-month Exclusive Negotiation Agreement (ENA) between the City and The Club MCC (Marrakesh Country Club) for property located at the northwest corner of Portola Avenue and Haystack Way, and to execute any related documents necessary to effectuate this action. 1. Authorize the City Attorney to make any necessary non-monetary changes to the ENA. 2. 13.k AGREEMENT WITH REGENCY ESTATES HOMEOWNERS’ ASSOCIATION FOR IMPROVEMENTS AT THE TAMARISK ROW RETENTION BASIN AND ACCEPTANCE OF EMERGENCY ACCESS EASEMENT 191 RECOMMENDATION: Approve a Right-of-Entry Agreement for Temporary Access and Construction with Palm Desert Regency Estates Homeowners Association for access to repair and restore the Tamarisk Row Retention Basin. 1. Authorize repair and restoration improvements to the Tamarisk Row Retention Basin in an amount not to exceed $200,000. 2. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 3. Authorize the City Manager to execute the agreement and any other documents necessary to effectuate the taken herewith. 4. Approve acceptance of Emergency Access Easement Deed granting emergency access to the Tamarisk Row Retention Basin to perform emergency repair and maintenance. 5. Palm Desert City Council Meeting Agenda October 23, 2025 5 13.l APPROPRIATION OF FISCAL YEAR 2025-26 FUNDS FOR THE CALIFORNIA DEPARTMENT OF JUSTICE TOBACCO GRANT PROGRAM 207 RECOMMENDATION: Approve an appropriation of $121,003 in Fiscal Year 2025-26 for the California Department of Justice (DOJ) Tobacco Grant Program and establish the related grant project accounts. 1. Authorize the Director of Finance to appropriate funds from the General Fund Reserve to the Interfund Transfer Out Account (Account Number 1104199-450100) in the amount of $121,003, and transfer into the Tobacco Grant Fund (Account Number 2210000-3910000). 2. Appropriate $121,003 to the Tobacco Grant Fund Professional Other No. (Account No. 2214422-4309000). 3. Authorize the City Manager, or designee, to execute any amendments, modifications, or extensions to the executed Memorandum of Understanding. 4. 13.m COVE COMMUNITIES SERVICES COMMISSION AREAS IDENTIFIED FOR ENHANCED COLLABORATION 217 RECOMMENDATION: Receive and file report on Cove Communities Services Commission areas identified for enhanced collaboration. 14.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. None. 15.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 ten minutes to make their presentation. If other speakers provide comments, the applicant or appellant will be given an opportunity to offer rebuttal comments for up to three additional minutes. Speakers may utilize one of the three options listed on the first page of this agenda. Palm Desert City Council Meeting Agenda October 23, 2025 6 15.a INTRODUCTION OF AN ORDINANCE AMENDING CHAPTERS 8.34 AND 8.36 OF THE PALM DESERT MUNICIPAL CODE RELATING TO TOBACCO RETAILER LICENSING, SMOKING REGULATIONS AND REGULATION OF KRATOM SALES AND POSSESSION. 221 RECOMMENDATION: Hold a public hearing and introduce Ordinance No. 1443 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTERS 8.34 AND 8.36 OF THE PALM DESERT MUNICIPAL CODE RELATING TO TOBACCO RETAILER LICENSING, SMOKING REGULATIONS, AND REGULATION OF KRATOM SALES AND POSSESSION AND MAKING A FINDING OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.” 16.ADJOURNMENT Palm Desert City Council Meeting Agenda October 23, 2025 7 17.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 “Meeting Agendas” 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, Michelle Nance, 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 to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority and the Palm Desert Board of Library Trustees, was posted on the City Hall bulletin board and City website www.palmdesert.gov no less than 72 hours prior to the meeting. /S/ Michelle Nance Assistant City Clerk Palm Desert City Council Meeting Agenda October 23, 2025 8 WHEREAS , Leadership Coachella Valley is a nonprofit organization dedicated to identifying, developing, and inspiring community leaders across the Coachella Valley to address regional challenges and strengthen civic engagement; and WHEREAS , for 25 years, Leadership Coachella Valley has provided immersive educational programs that bring together professionals, community advocates, and public servants to explore key issues impacting the region, including government, economic development, education, healthcare, and the environment; and WHEREAS , through these programs, participants gain valuable insight, build meaningful relationships, and develop a shared understanding of the opportunities and challenges facing the Coachella Valley; and WHEREAS , Leadership Coachella Valley has cultivated generations of leaders who have gone on to serve the region in business, nonprofit, civic, and public service roles, contributing to the Valley’s long-term success; and WHEREAS , the organization’s 25-year legacy reflects a sustained commitment to leadership development, collaboration, and community empowerment throughout the Coachella Valley; NOW, THEREFORE, BE IT PROCLAIMED , that I, Evan Trubee Mayor of the City of Palm Desert, on behalf of the entire City Council, do hereby Recognize and commend the organization for its lasting contributions to leadership, civic engagement, and regional collaboration. In Witness Whereof, I have hereunto set my hand and have caused the Official Seal of the City of Palm Desert, California, to be affixed this 26th day of February 2026. 9 10 11 Page | 02 Leadership Coachella Valley has been building informed, connected, and engaged leaders across the Coachella Valley for 25 years. Above: Current Leadership Coachella Valley Class •Art & Culture •Sustainability •Media •Education •Economic Drivers •Government & Justice •Philanthropy •Healthcare & Wellness •History of the Valley •Housing & Food Challenges 12 Page | 03 Drives Economic Development Builds Regional Awareness Creates Lasting Networks Develops Place- Based Leadership Encourages Volunteerism 13 Page | 04 •From participants to decision-makers •Careers shaped, confidence built •Relationships that last decades Number of participants From public agencies From education From non-profits 14 Page | 05 More Informed Residents Stronger Regional Collaboration Increased Civic Trust and Participation A Deeper Bench of Community Leadership 15 Page | 06 •Attend events to engage with current and future leaders •Identify and recommend promising leaders from your community •Stay connected as ambassadors for civic leadership 16 T H A N K Y O U 17 18 Riverside County Sheriff’s Department Update Two (2) new 2026 BMW R1300RT motorcycles have arrived and are now in service, enhancing traffic enforcement, special event coverage, and rapid response capability throughout the City. 19 20 From:Kurt Gibbs To:City Hall Mail; Jan Harnik; CityClerk; Chris Escobedo; Karina Quintanilla; Gina Nestande; Joe Pradetto; Pedro Rodriguez; Evan Trubee Subject:Shadow Mountain Unpermitted Pickleball Courts and Continued Usage Date:Thursday, February 26, 2026 7:30:43 AM Dear City Clerk, City Councilmembers, and City Manager, Please read this correspondence into the record at the City Council meeting scheduled for February 26, 2026. We love Palm Desert. We love our neighborhood. The amenities that Shadow Mountain Resort has to offer, including tennis, golf, swimming, and dining are an integral part of the neighborhood and partly why we purchased our home. However, we, along with many other neighbors near the resort, remain deeply concerned and dismayed by the continued use of unpermitted pickleball courts at the property. The resort’s stated plan to operate a total of eleven courts— potentially accommodating up to forty-four simultaneous players— without proper permits is beyond unacceptable. Even with the three currently operating unpermitted courts, the noise level has already made quiet enjoyment of our neighborhood extremely difficult. Pop. Pop. Pop. Pop. Expanding to eleven courts would be completely destructive to the residential character and livability of the surrounding area. It is increasingly clear that the City’s current Noise Ordinance does not adequately address the unique acoustic impacts of modern outdoor pickleball. Pop. Pop. Pop. Pop. The sharp, repetitive impulse sound of paddle striking ball is qualitatively different from typical ambient recreational noise. As noted by a leading national 21 pickleball land-use attorney, psychoacoustics plays a significant role in community response because the sound’s character, frequency, and repetition closely resemble gunshots, subconsciously inducing fear and heightened irritability. Any meaningful ordinance update must account not only for decibel thresholds, but also for sound character, impulsivity, and repetitive frequency. We understand that Code Compliance has been in communication with the Resort. Pop. Pop. Pop. Pop. However, the continued play on unpermitted courts—and the recent addition of nets to the newly constructed eight courts—demonstrates that prior directives have not resulted in compliance. Whether the Resort is unwilling or unable to comply with the City’s suspension requirements pending proper permitting, the ongoing violation remains unacceptable. We respectfully request: Immediate enforcement action, including removal of the nets from all unpermitted courts until proper approvals are obtained. A comprehensive review and modernization of the City’s Noise Ordinance to address impulse noise and sound quality characteristics associated with outdoor pickleball facilities. Thank you for your attention to this serious matter and for your commitment to protecting the quality of life in our community. Respectfully, Kurt Gibbs 22 Study Session of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Housing Authority, and Board of Library Trustees Minutes Mayor Pro Tem Joe *Mayor Pro Tem Pradetto participated remotely in accordance with SB 707 due to illness. 1. CALL TO ORDER - STUDY SESSION A Study Session of the Palm Desert City Council was called to order by Mayor Trubee on Thursday, February 12, 2026, at 2:00 p.m., in the Council Chamber of City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. STUDY SESSION TOPICS 2.a SUNLINE TRANSIT AGENCY COMPREHENSIVE OPERATIONAL ANALYSIS Mona Babauta, CEO and General Manager of SunLine Transit Agency, presented a PowerPoint on the agency’s comprehensive operational analysis, encouraged public participation throughout the process, and responded to City Council inquiries. 2.b PROVIDE DIRECTION ON FUTURE USES OF THE SHERIFF SUBSTATION Jill Mendoza, Economic Development Manager, narrated a PowerPoint presentation regarding potential reuse options for the Sheriff Substation at the Civic Center Campus and responded to City Council inquiries. Following the discussion, the City Council provided staff direction to proceed with repurposing the site for future City use. 2.c DISCUSSION AND DIRECTION REGARDING POTENTIAL UPDATES TO TOBACCO RETAILER LICENSING AND SMOKING REGULATIONS, INCLUDING COMPLIANCE WITH CALIFORNIA FLAVORED TOBACCO LAWS AND REGULATION OF KRATOM Daniel Hurtado, Public Safety Coordinator, presented a PowerPoint and responded to City Council inquiries. Sergeant Nelson, Riverside County Sheriff’s Department, provided first-hand experience regarding an individual under the influence of kratom. Following the discussion, the City Council directed staff to proceed with Option B, regulating kratom products and prohibiting synthetic kratom products. 2.d POTENTIAL INDOOR SPORTS COMPLEX PARTNERSHIP Richard Cannone, Assistant City Manager, and Scott White, of Visit Greater Palm Springs, presented a PowerPoint on the potential partnership for an indoor sports complex and responded to City Council inquiries. The City Council expressed support for continued exploration of a partnership with Visit Greater Palm Springs to develop an indoor sports complex. 23 City of Palm Desert City Council Study Session Minutes February 12, 2026 2 3. ADJOURNMENT The City Council adjourned the Study Session at 3:24 p.m. Respectfully submitted, _________________________ Michelle Nance Assistant City Clerk/Assistant Secretary _________________________ Anthony J. Mejia, MMC City Clerk/Secretary 24 Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Housing Authority, and Board of Library Trustees Regular Meeting Minutes 1. CALL TO ORDER - CLOSED SESSION A Regular Meeting of the Palm Desert City Council was called to order by Mayor Trubee on Thursday, February 12, 2026, at 3:25 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 Trubee adjourned to Closed Session at 3:25 p.m. 4. CLOSED SESSION AGENDA The following items were considered in closed session: 4.a Closed Session Meeting Minutes: December 11, 2025 4.b Conference with Real Property Negotiations pursuant to Government Code Section 54956.8 Waring Drive and San Pablo Avenue. Assessor’s Parcel Numbers (APNs): 627-101-068, 627-101-033, 627-101- 002, 627-101-067 and 627-101-017. Agency: City of Palm Desert/Successor Agency to the Redevelopment Agency City Negotiator: Chris Escobedo/Richard Cannone/Martin Alvarez Negotiating Parties: City of Palm Desert/Successor Agency to the Redevelopment Agency and The Pacific Companies Under Negotiation: Price and Terms 4.c Conference with Legal Counsel regarding Significant Exposure to Litigation pursuant to Government Code Section 54956.9(d)2 1 case. 25 City of Palm Desert City Council Meeting Minutes February 12, 2026 2 4.d Conference with Legal Counsel regarding Initiation of Litigation pursuant to Government Code Section 54956.9(d)4 2 cases. 4.e Conference with Labor Negotiators pursuant to Government Code Section 54957.6 1 case. 5. ROLL CALL - REGULAR MEETING - 4:00 P.M. 6. PLEDGE OF ALLEGIANCE Councilmember Nestande led the Pledge of Allegiance. 7. INSPIRATION Mayor Pro Tem Pradetto provided words of inspiration. 8. REPORT OF CLOSED SESSION City Attorney Shah stated that direction was given by the City Council; no reportable actions were taken. 9. AWARDS, PRESENTATIONS, AND APPOINTMENTS 9.a VISIT GREATER PALM SPRINGS UPDATE Scott White, Colleen Pace, and Davis Meyer, of Visit Greater Palm Springs, narrated a PowerPoint presentation and responded to City Council inquiries. 10. CITY MANAGER COMMENTS 10.a DESERT WILLOW AWARD RECOGNITION FROM 59CLUB John Ramont, Deputy Director of Finance, and Derek White, General Manager of Desert Willow, recognized Desert Willow and their team for the following awards received from 59club: • Gold Flag Destination - Desert Willow Golf Resort • Leading Individual Golf Visit Experience - Ryan Szydlowski • Food and Beverage Manager of the Year - Keith Sansone • Retail Manager of the Year - Brian Lind • Superintendent of the Year - Chris Bien 11. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmembers provided updates on their attendance at various meetings and events. Mayor Trubee, with the support of Councilmember Harnik, requested that staff follow up on traffic safety concerns at the intersection of El Paseo and CA Highway 74. 26 City of Palm Desert City Council Meeting Minutes February 12, 2026 3 12. NON-AGENDA PUBLIC COMMENTS Chris Christianson, representing the Desert Healthcare District, spoke about the district's new 5-year strategic plan and public meetings open to Coachella Valley residents. Chris Schacter, Palm Desert resident, expressed concern regarding illegal business advertisements posted in public rights of way and urged strict code enforcement actions against repeated offenders. The following individuals spoke in support of allowing adult use of natural Kratom products and a prohibition on synthetic high-potency Kratom products: Matthew McHolland, La Quinta business owner Heather S. 13. CONSENT CALENDAR Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande To approve the consent calendar, with Item 13.g pulled for separate discussion. Motion Carried (5 to 0) 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande Approve the Minutes of January 22, 2026. Motion Carried (5 to 0) 13.b APPROVAL OF WARRANT REGISTERS Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande Approve the warrant registers issued for the period 1/15/2026 to 1/29/2026. Motion Carried (5 to 0) 27 City of Palm Desert City Council Meeting Minutes February 12, 2026 4 13.c RECEIVE AND FILE APPLICATIONS FOR ALCOHOLIC BEVERAGE LICENSES Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande Receive and file the applications for Alcoholic Beverage Licenses for: • D' Coffee Bouteaque at 36901 Cook Street, Suites 8 & 9, Palm Desert, CA 92211-6112 • Red Lobster #6378 at 72291 Highway 111, Palm Desert, CA 92260-2744 Motion Carried (5 to 0) 13.d AMENDMENT TO THE 2026 CITY COUNCIL REGULAR MEETING SCHEDULE Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande Approve the cancellation of the regular City Council meeting of September 24, 2026, to accommodate City Council participation in the League of California Cities Annual Conference. Motion Carried (5 to 0) 13.e ACCEPTANCE OF A RESIGNATION FROM THE EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT BOARD Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande With regret, accept the resignation of David Fletcher from the El Paseo Parking and Business Improvement District Board effective January 15, 2026. Motion Carried (5 to 0) 13.f AUTHORIZATION OF ADDITIONAL OUT-OF-STATE TRAVEL Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande Approve additional out-of-state travel as outlined in the staff report, consistent with the City’s Travel Policy. Motion Carried (5 to 0) 28 City of Palm Desert City Council Meeting Minutes February 12, 2026 5 13.g FISCAL YEAR 2025-26 MIDYEAR BUDGET STATUS AND STAFF ALLOCATION UPDATE Veronica Chavez, Director of Finance, provided a staff report and responded to City Council inquiries. Mayor Pro Tem Pradetto expressed appreciation to staff for its successful budget management. Motion by: Mayor Pro Tem Pradetto Seconded by: Councilmember Quintanilla 1. Receive and file Fiscal Year 2025-26 Midyear Budget Status Update. 2. Adopt Resolution No. 2026-007 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, RATIFYING CHANGES TO EXHIBIT “A” ALLOCATED POSITIONS OF RESOLUTION NO. 2025-052, ADOPTING AUTHORIZED CLASSIFICATIONS, ALLOCATED POSITIONS, SALARY SCHEDULE, AND SALARY RANGES.” Motion Carried (5 to 0) 13.h RECEIVE AND FILE THE CITY OF PALM DESERT AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande Receive and file the audited Annual Comprehensive Financial Report (ACFR) for the City of Palm Desert for the fiscal year ended June 30, 2025. Motion Carried (5 to 0) 29 City of Palm Desert City Council Meeting Minutes February 12, 2026 6 13.i AWARD A CONSTRUCTION CONTRACT TO TRI-STAR CONTRACTING II, INC., FOR THE MOUNTAIN VIEW RETENTION BASIN PROJECT (CDR00007) – CEQA DETERMINATION Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande 1. Award a construction contract no. C50470, including Bid Alternate #1, to Tri-Star Contracting II, Inc., of Desert Hot Springs, California, in the amount of $2,082,687.30, plus a $200,000 contingency for unforeseen expenses. 2. Authorize the Director of Finance to appropriate funds in the amount of $967,552.30 from unobligated Capital Improvement Fund Reserves to Account No. 4004159-4219100. 3. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 4. Authorize the City Manager to execute the agreement and any written requests for change orders up to the contingency amount, amendments, and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). 5. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the Project. 6. Make a finding that the project is categorically exempt from further review under the California Environmental Air Quality Act (CEQA) Guidelines, pursuant to Class 1, Section 15301 (Existing Facilities), 15302 (Replacement or Reconstruction), Class 3, Section 15303 (Small Structures) and 15304 (Minor Alterations to Land) and authorize the City Engineer to submit Notice of Exemption. Motion Carried (5 to 0) 30 City of Palm Desert City Council Meeting Minutes February 12, 2026 7 13.j APPROVE AMENDMENT NO. 2 TO ADMINISTRATIVE CONTRACT NO. A47670, PROFESSIONAL SERVICES AGREEMENT WITH JOHN KALISKI ARCHITECTS TO ADD A VIEWS ANALYSIS AND RECOMMENDATIONS COMPONENT AND EXTEND THE CONTRACT THROUGH JUNE 30, 2027 Motion by: Councilmember Quintanilla Seconded by: Councilmember Nestande 1. Approve Amendment No. 2 to the Professional Services Agreement with John Kaliski Architects (JKA) to increase the contract amount by $36,677 to incorporate a comprehensive views analysis and recommendations component into the ongoing contract, for a total not-to-exceed amount of $264,839. 2. Extend the term of the Professional Services Agreement through June 30, 2027. 3. Authorize the City Attorney to make any non-monetary changes to the agreement. 4. Authorize the City Manager or designee to execute any change orders or amendments, including extensions of the agreement, provided such actions remain within the approved amount. Motion Carried (5 to 0) 14. ACTION CALENDAR 14.a RESOLUTIONS ADOPTING AMENDMENTS TO THE CITY’S CONFLICT OF INTEREST CODE AND DESIGNATING CERTAIN APPOINTED BODIES AND OFFICIALS FOR TRAVEL REIMBURSEMENT AND APPLICABLE ETHICS AND FISCAL TRAINING REQUIREMENTS Anthony Mejia, City Clerk, presented the staff report. Motion by: Councilmember Quintanilla Seconded by: Mayor Trubee 1. Adopt Resolution No. 2026-008 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING AN AMENDED CONFLICT OF INTEREST CODE AND RESCINDING RESOLUTION NO. 2024-070.” 2. Adopt Resolution No. 2026-009 entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DESIGNATING CERTAIN BOARDS, COMMISSIONS, COMMITTEES, AND TASK FORCES AS ELIGIBLE FOR TRAVEL REIMBURSEMENT AND IDENTIFYING OFFICIALS SUBJECT TO STATE-MANDATED ETHICS AND FISCAL TRAINING REQUIREMENTS.” Motion Carried (5 to 0) 31 City of Palm Desert City Council Meeting Minutes February 12, 2026 8 15. PUBLIC HEARINGS 15.a APPROVAL OF PROPOSED PLAN FOR BOND ISSUANCE BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE PALM DESERT FAMILY HOUSING PROJECT LOCATED AT THE NORTHWEST CORNER OF COOK STREET AND FRANK SINATRA DRIVE (SUPERSEDING RESOLUTION NO. 2026-001) Ivan Tenorio, Homeless and Supportive Services Manager, and Jarod Suzuki, of California Municipal Finance Authority, provided a staff report. Mayor Trubee opened and closed the public hearing, there being no members of the public wishing to speak. Motion by: Mayor Pro Tem Pradetto Seconded by: Mayor Trubee 1. Conduct the public hearing and receive public comments under the requirements of the Tax Equity and Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”), in connection with the proposed issuance, in one or more series, of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Code by the California Municipal Finance Authority (“CMFA”), a joint exercise of powers authority and public entity of the State of California, in an amount not to exceed Fifty Million Dollars ($50,000,000) (the “Bonds”). The Bonds will finance or refinance the acquisition, construction, improvement and equipping of the Palm Desert Family Housing Project, a 298 unit multifamily affordable rental housing development (295 income restricted units and 3 manager units) located at the northwest corner of Cook Street and Frank Sinatra Drive (APN 694- 200-021) in Palm Desert, California (the “Project”). 2. Adopt Resolution No. 2026-010 entitled, “RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $50,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF PALM DESERT FAMILY HOUSING AND CERTAIN OTHER MATTERS RELATING THERETO,” approving the issuance of the Bonds by CMFA for the benefit of Sinatra Family Housing, LP, a partnership of which Compass for Affordable Housing (the “Developer”) or a related person to the Developer is the general partner, to provide for the financing of the Project. Such adoption is solely for the purpose of satisfying the requirements of TEFRA, the Code, and California Government Code Sections 6500 et seq. This action is intended to supersede Resolution No. 2026-001 solely for TEFRA public approval purposes with respect to the Bonds and the Project. 3. Ratify the Indemnity Agreement previously executed with Sinatra Family Housing, LP, and authorize the Mayor or City Manager to execute 32 City of Palm Desert City Council Meeting Minutes February 12, 2026 9 Amendment No. 1 to the Indemnity Agreement, in substantially the form attached. Motion Carried (5 to 0) 15.b APPEAL OF A DECISION OF THE PLANNING COMMISSION ADOPTING A MITIGATED NEGATIVE DECLARATION, FINDING THE PROJECT EXEMPT FROM CEQA UNDER GUIDELINES SECTION 15183, AND APPROVING A PRECISE PLAN FOR THE CATAVINA RESIDENTIAL PROJECT Rosie Lua, Director of Development Services, narrated a PowerPoint presentation and responded to City Council inquiries. Mayor Trubee opened the public hearing. David Hubbard, attorney representing the applicant, stated the project is consistent with the City’s General Plan, zoning, and density standards, and therefore qualifies for a CEQA exemption under Guidelines Section 15183; asserted there are no significant or peculiar impacts beyond those addressed in the 2016 General Plan EIR, and that the mitigation measures imposed are precautionary and do not disqualify the exemption; requested the Council deny the appeal and find the project exempt under Section 15183. Brian Flynn, attorney representing the appellant, requested the Council grant the appeal and remand the project to the Planning Commission, asserting the project does not qualify for a CEQA Guidelines Section 15183 exemption because the mitigation measures are not uniformly applied standards and were developed specifically for this project; argued an Environmental Impact Report is required under the fair argument standard, citing potential significant impacts related to greenhouse gas emissions, biological resources, and other environmental topics, and contended the Mitigated Negative Declaration is inadequate. During rebuttal, Mr. Flynn reiterated his position that CEQA Guidelines Section 15183 does not provide a blanket exemption for projects consistent with General Plan density, and applies only where impacts are addressed by uniformly applied standards or regulations; emphasized that the Mitigated Negative Declaration identified impacts requiring mitigation, and asserted those measures are not uniformly applied citywide standards. During rebuttal, Mr. Hubbard reiterated that the project qualifies for the CEQA Guidelines Section 15183 exemption because it is consistent with the City’s General Plan, zoning, and density standards, and there is no evidence of a significant and peculiar impact unique to the site; argued that the appellant’s focus on mitigation measures is irrelevant absent a showing of such peculiar impacts, and cited Section 15183(h) in support of that position; requested the Council deny the appeal and confirm the project’s exemption under Section 15183 Mayor Trubee closed the public hearing, there being no members of the public wishing to speak. 33 City of Palm Desert City Council Meeting Minutes February 12, 2026 10 During the course of the discussion, Councilmembers stated the project is consistent with the City’s General Plan, zoning, and certified 2016 General Plan EIR, and that no substantial evidence was presented demonstrating a significant and peculiar impact unique to the project site; noted the project reflects the lowest allowable density within the applicable land use designation and is located on a previously developed site; stated that the Mitigated Negative Declaration adequately addressed potential impacts and that the requirements of CEQA Guidelines Section 15183 were satisfied. Motion by: Mayor Pro Tem Pradetto Seconded by: Mayor Trubee Adopt a Resolution 2026-011 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DENYING AN APPEAL AND CONFIRMING THE DECISION OF THE PLANNING COMMISSION OF THE CITY OF PALM DESERT, CALIFORNIA, TO ADOPT AN INITIAL STUDY MITIGATED NEGATIVE DECLARATION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVING A PRECISE PLAN FOR THE CONSTRUCTION OF A 546 SINGLE FAMILY UNIT RESIDENTIAL COMMUNITY LOCATED SOUTH OF FRANK SINATRA DRIVE AND WEST OF PORTOLA AVENUE, AND FIND THE PROJECT EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTION 15183.” Motion Carried (5 to 0) 34 City of Palm Desert City Council Meeting Minutes February 12, 2026 11 15.c THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 WITH WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR THE DESERT WILLOW WESTIN, AND FIND THE PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) Siji Fernandez, Senior Planner, narrated a PowerPoint presentation and responded to City Council inquiries. Mayor Trubee opened and closed the public hearing, there being no members of the public wishing to speak. Motion by: Councilmember Harnik Seconded by: Mayor Pro Tem Pradetto Introduce Ordinance No. 1442 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR DESERT WILLOW WESTIN, EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT BY SIX (6) MONTHS TO AUGUST 27, 2026, AND FINDING THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.” Motion Carried (5 to 0) 16. INFORMATION ITEMS None. 17. ADJOURNMENT The City Council adjourned at 6:02 p.m. Respectfully submitted, _________________________ Michelle Nance Assistant City Clerk/Assistant Secretary _________________________ Anthony J. Mejia, MMC City Clerk/Secretary 35 36 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/5/2026 - 2/5/2026 City of Palm Desert Account Number 02/05/202600006431 ADKINS, MICHAELW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 600.51 02/05/202600006432 ALLEN, FRANKW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006433 AVERY, ANNW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 759.85 02/05/202600006434 BASSLER, THOMASW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006435 BISHOP, ROBERTW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 818.30 02/05/202600006436 BLYTHE, BARBARAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 326.68 02/05/202600006437 BO CHENW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 577.98 02/05/202600006438 BRADLEY, DEBRAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006439 BROWN, MICHAELW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 952.36 02/05/202600006440 CANALES, CHRISTINAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 598.52 02/05/202600006441 CARRASCO, SYLVIAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 566.93 02/05/202600006442 CECHIN, TERRYW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 956.89 02/05/202600006443 CEHR, DAVIDW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006444 CELAYA , HORACIOW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,668.43 02/05/202600006445 CICCHINI, SUZANNEW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006446 CONLON, PATRICK C.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006447 CRAWFORD, DANNYW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 2,314.46 02/05/202600006448 CROY, HOMERW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 584.50 02/05/202600006449 DARLING, GLORIAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006450 HOLLINGER, DIANEW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006451 DIERCKS, MARKW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 146.12 02/05/202600006452 DOYLE, KARENW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 873.80 02/05/202600006453 DRELL, PHILIP D.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006454 ESPINOZA, JOSE LUISW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 2,670.53 02/05/202600006455 FANNING, JODIW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,154.46 02/05/202600006456 FERGUSON, JAMES C.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,257.95 02/05/202600006457 FLINT, DAVIDW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 327.27 02/05/2026Report Date 1Page City and Housing Docusign Envelope ID: B5E66024-B8C5-4268-B839-2F09DA42A568 37 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/5/2026 - 2/5/2026 City of Palm Desert Account Number 02/05/202600006458 FOLKERS, RICHARD J.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006459 GARCIA, MIGUELW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 952.36 02/05/202600006460 GARNER, PAGEW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,435.34 02/05/202600006461 GAUGUSH, CORAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006462 GIBSON, PAUL S.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006463 GLICKMAN, DEBORAH SCHWARTZW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 2,026.21 02/05/202600006464 GODFREY, BEN ORRINW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006465 GOMEZ, DONNAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,451.48 02/05/202600006466 GONZALES, JESSICAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 2,670.53 02/05/202600006467 GRANCE, RUSSELLW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,243.96 02/05/202600006468 GREENWOOD, MARKW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,451.48 02/05/202600006469 GRIFFIN, ROSALVAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 331.00 02/05/202600006470 HENDERSON, RHONDAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 165.61 02/05/202600006471 HERMANN, DAVIDW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,891.13 02/05/202600006472 HERNANDEZ, ANTHONYW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 952.36 02/05/202600006473 HERNANDEZ, CARLOSW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 2,026.21 02/05/202600006474 HOLTZ, GREGGW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006475 JOHNSON, SONDRAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006476 JOY, PHILLIP E.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,332.07 02/05/202600006476 JOY, PHILLIP E.W1 RETIREE HEALTH STIPEND Retro41190005764192 2/1/2026 726.79 02/05/202600006477 JUDY, JANINE MARIEW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 352.45 02/05/202600006478 KARIMI, BASHIER AHMADW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006479 KILPATRICK, SHAWNW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,993.93 02/05/202600006480 KLASSEN, RACHELLE D.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,451.48 02/05/202600006481 KNIGHT, SPENCERW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006482 KNUTSON, LAURELW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 223.50 02/05/202600006483 LEAL, DIANAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,255.36 02/05/2026Report Date 2Page City and Housing Docusign Envelope ID: B5E66024-B8C5-4268-B839-2F09DA42A568 38 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/5/2026 - 2/5/2026 City of Palm Desert Account Number 02/05/202600006484 LONGMAN, ELIZABETH M.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 302.10 02/05/202600006485 LOPEZ, PATRICIAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 952.36 02/05/202600006486 MCBRIDE, CRAIGW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006487 MCCARTHY, JUSTINW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 701.40 02/05/202600006488 METZ, THOMASW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 2,095.80 02/05/202600006489 MONROE, TONYAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 952.36 02/05/202600006490 MOORE, JANETW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,451.48 02/05/202600006491 MOORE, RUTH ANNW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006492 NEELY, MICHAELW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006493 NIEMCZAK, JAYW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 175.61 02/05/202600006494 O'REILLY, MONICAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,318.54 02/05/202600006495 OSBORN, LINDAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006496 PONDER, HARTW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 226.46 02/05/202600006497 PRUSINOWSKI, KARENW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 759.85 02/05/202600006498 REAM, LISAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 438.92 02/05/202600006499 RIDDLE, FRANKIEW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 936.22 02/05/202600006500 ROCHA, GRACE L.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,029.28 02/05/202600006501 ROSAS, SERGIOW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006502 RUSSELL, LINDAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 565.65 02/05/202600006503 Sanchez, Maria GloriaW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,668.43 02/05/202600006504 SCULLY, PATRICIA H.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006505 CHRISTIANSEN, SHARONW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006506 SMITH, STEPHEN R.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006507 SNAKE, CYRILW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,668.43 02/05/202600006508 STANLEY, JANEW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 520.38 02/05/202600006509 SZYMANSKI, BETTYW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,645.01 02/05/202600006510 TOWNSEND, ALANAW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 427.97 02/05/2026Report Date 3Page City and Housing Docusign Envelope ID: B5E66024-B8C5-4268-B839-2F09DA42A568 39 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/5/2026 - 2/5/2026 City of Palm Desert Account Number 02/05/202600006511 TUCKER, RONW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 598.52 02/05/202600006512 WALKER, DELW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 386.16 02/05/202600006513 WEIL, CHIN-YUW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 598.52 02/05/202600006514 WELLER, DENIW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006515 WHITE, BRYCEW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 352.45 02/05/202600006516 WILCOX, DARINW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 392.28 02/05/202600006517 WITTE, LOCKW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,435.34 02/05/202600006518 WOHLMUTH, JOHNW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 377.62 02/05/202600006519 ZAMARRIPA, AARONW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 952.36 02/05/202600006520 ZAMORA, FLORENTINO G.W1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 413.74 02/05/202600006521 ZATARAIN, ABELW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 1,154.46 02/05/202600006522 ZATARAIN, GERARDOW1 RETIREE HEALTH STIPEND 02/2641190005764192 2/1/2026 876.75 02/05/202600006523 AIR EXCHANGE INCW1 R/M PLYMOVENT EXH SYS - 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TRAFFIC42190001104250 973221-120225 77.21 02/05/202602008686 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS42190001104310 993037-011326 209.72 02/05/202602008686 LOWE'S HOME CENTERS INC.W1 R/M MISC SUPPLIES - STREETS43320001104310 972287-011626 16.51 02/05/202602008686 LOWE'S HOME CENTERS INC.W1 STORAGE SUPPLIES - CITY HALL42190001104340 985287-012026 9.80 02/05/202602008687 LSL CPAsW1 FY 24-25 Audit Financial Stmt43020001104151 70581 36,362.00 02/05/202602008687 LSL CPAsW1 Inv69219 Housing Records43020001104151 70581 -10,150.00 02/05/202602008687 LSL CPAsW1 INV69628 Housing Records43020001104151 70581 -15,720.00 02/05/202602008687 LSL CPAsW1 Inv69219 Housing Records43020001104151 70581 10,150.00 02/05/2026Report Date 10Page City and Housing Docusign Envelope ID: B5E66024-B8C5-4268-B839-2F09DA42A568 46 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/5/2026 - 2/5/2026 City of Palm Desert Account Number 02/05/202602008687 LSL CPAsW1 Inv69628 Housing Records43020001104151 70581 15,720.00 02/05/202602008687 LSL CPAsW1 FY 24-25 Single Audit43020001104151 71064 6,149.00 02/05/202602008687 LSL CPAsW1 FY 24-25 PDRFC Audit43020001104151 71700 10,487.00 02/05/202602008688 MACLEOD WATTS INCW1 GASB 75 Reporting FYE 6/30/2543090005764192 101025PALMD 2,550.00 02/05/202602008689 MARTHA'S VILLAGE & KITCHENW1 Sponsorship Martha's Village 543062011104800 1225PD 2,500.00 02/05/202602008690 MOWERS PLUS INCW1 R/M SMALL EQUIP- 1% Sales Tax20702001100000 346460 -0.49 02/05/202602008690 MOWERS PLUS INCW1 R/M SMALL EQUIPMENT43340001104331 346460 52.74 02/05/202602008690 MOWERS PLUS INCW1 R/M SMALL EQUIP- 1% Sales Tax43340001104331 346460 0.49 02/05/202602008691 NATIONAL NOTARY ASSOC.W1 NOTARY TRAINING & SUPPLIES SC43120001104111 NNA-SCASTRO 997.59 02/05/202602008692 NetFile IncW1 FY26/27 Ethics Training Servic14301001100000 10670 1,895.84 02/05/202602008692 NetFile IncW1 FY25/26 Ethics Training Servic43620011104190 10670 1,354.16 02/05/202602008693 POWERSTRIDE BATTERY COMPANYW1 R/M BATTERIES - 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Ceja43630001104150 300020897 25.00 02/12/202602008722 D & B VISIONSW1 Recycle/Organics Ed ProgJN2643090002364195 26-01 2,600.00 02/12/202602008723 DEPARTMENT OF JUSTICEW1 FY 25/26 RSO BLOOD ALCOHOL43904001104210 020642 70.00 02/12/202602008724 DESERT VALLEYS BUILDERSW1 DVBA FB26 Luncheon - VMAGER43125001104430 I6NN5W7AMA 95.00 02/12/202602008724 DESERT VALLEYS BUILDERSW1 DVBA FB26 Luncheon - ALAWRENCE43125001104430 LPWMQUJ7PQ 95.00 02/12/202602008724 DESERT VALLEYS BUILDERSW1 DVBA FB26 Luncheon - MALVAREZ43125001104430 EBUXVHANFS 95.00 02/12/202602008725 FIESTA FORDW1 R/M FLEET #004 - LEASE43340001104331 710291 1,109.35 02/12/202602008726 HORIZON LIGHTING INC.W1 R/M ELECT/LIGHT - CHARGING ST43310001104340 INV28051 1,136.40 02/12/2026Report Date 8Page City and Housing Docusign Envelope ID: 52645F84-D547-4E8C-A536-042CDD849C9E 56 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/12/2026 - 2/12/2026 City of Palm Desert Account Number 02/12/202602008727 IMPERIAL SPRINKLER SUPPLYW1 R/M FERTILIZER - PARKS43320011104611 0024508356-001 612.27 02/12/202602008727 IMPERIAL SPRINKLER SUPPLYW1 R/M IRRIG SUPPLIES - MEDIANS43370011104614 0024265219-001 1,262.30 02/12/202602008727 IMPERIAL SPRINKLER SUPPLYW1 R/M IRRIG SUPPLIES - MEDIANS43370011104614 0024265488-001 1,530.78 02/12/202602008728 KNORR SYSTEMS INCW1 ADDT'L PUMP EQUIPMENT - PDAC44001002424549 294089 5,104.81 02/12/202602008728 KNORR SYSTEMS INCW1 ADDT'L PUMP EQUIPMENT - PDAC44001002424549 294396 8,928.62 02/12/202602008728 KNORR SYSTEMS INCW1 ADDT'L PUMP EQUIPMENT - PDAC44001002424549 295399 3,044.53 02/12/202602008728 KNORR SYSTEMS INCW1 CIRCULATION PUMPS - PDAC44001002424549 320016 6,518.92 02/12/202602008728 KNORR SYSTEMS INCW1 SMART PUMP CNTRL SYSTEMS -PDAC44001002424549 320016 63,849.63 02/12/202602008729 KOSMONT FINANCIAL SERVICESW1 OC25 Financing District Adviso43090001104159 2509.6-001 3,538.60 02/12/202602008729 KOSMONT FINANCIAL SERVICESW1 NV25 Financing District Adviso43090001104159 2509.6-002 6,968.00 02/12/202602008729 KOSMONT FINANCIAL SERVICESW1 DC25 Financing District Adviso43090001104159 2509.6-003 8,143.20 02/12/202602008730 KREMER, MARKW1 REFUND STRTOT PENAL. & INT.31998001100000 STR2023-0153 139.75 02/12/202602008730 KREMER, MARKW1 REFUND STRTOT PENAL. & INT.22865006100000 STR2023-0153 12.71 02/12/202602008731 LEAGUE OF CALIFORNIA CITIESW1 ESCOBEDO LOCC RIVCO MEM DUES43630001104130 2902 300.00 02/12/202602008732 LEAGUE OF CALIFORNIA CITIESW1 LOCC City membership JL26-DC2614301001100000 INV-45398-R4V2N6 10,680.50 02/12/202602008732 LEAGUE OF CALIFORNIA CITIESW1 LOCC City membership JN26-JN2643630001104159 INV-45398-R4V2N6 10,680.50 02/12/202602008733 LOCK SHOP INC.W1 R/M LOCKS - STATE43696025104195 A137204 581.00 02/12/202602008734 LOWE'S HOME CENTERS INC.W1 CREDIT SMALL TOOLS - STREETS42190001104310 200841200000CM -87.08 02/12/202602008734 LOWE'S HOME CENTERS INC.W1 CREDIT SMALL TOOLS - STREETS42190001104310 200846000000CM -135.27 02/12/202602008734 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS42190001104310 990670-012226 28.41 02/12/202602008734 LOWE'S HOME CENTERS INC.W1 R/M MISC SUPPLIES - HOMME42190001104611 977346-012826 554.74 02/12/202602008735 MODERNISM WEEKW1 Modernism Week Sponsorship.43062011104800 MODERNISM WEEK 5,000.00 02/12/202602008736 MOST DEPENDABLE FOUNTAINSW1 R/M MISC SUPPLIES - PARKS43325011104611 INV84356 794.95 02/12/202602008737 MUNICIPAL MEDIA CORPORATIONW1 Recycle Coach JL26-JA2714301001100000 8016 5,191.67 02/12/202602008737 MUNICIPAL MEDIA CORPORATIONW1 Recycle Coach FB26-JU2643620011104190 8016 3,708.33 02/12/202602008738 MY COI LLCW1 FY2627 Ins. Compliance Softwar14301001100000 141260777 5,320.00 02/12/202602008738 MY COI LLCW1 FY2526 Ins. Compliance Softwar43090001104159 141260777 3,800.00 02/12/2026Report Date 9Page City and Housing Docusign Envelope ID: 52645F84-D547-4E8C-A536-042CDD849C9E 57 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/12/2026 - 2/12/2026 City of Palm Desert Account Number 02/12/202602008738 MY COI LLCW1 FY2526 Onboarding for illumend43090001104159 141260777 750.00 02/12/202602008739 PBK ARCHITECTS INCW1 FS33 Architectual Svcs JAN2644002002304220 PP#17 15,500.00 02/12/202602008739 PBK ARCHITECTS INCW1 FS33 Prj Specific Fees JAN2644002002304220 PP#17 750.00 02/12/202602008739 PBK ARCHITECTS INCW1 FS71 Architectual Svcs JAN2644002002304220 PP#17 15,500.00 02/12/202602008739 PBK ARCHITECTS INCW1 FS71 Prj Specific Fees JAN2644002002304220 PP#17 750.00 02/12/202602008739 PBK ARCHITECTS INCW1 FS 102 Architectual Jan26 Svcs44001002354270 PP#28 4,400.00 02/12/202602008740 POWERS AWARDSW1 COPS UNIFORM BADGES43060011104211 163430 125.06 02/12/202602008741 PROFORMA SOCALW1 Code Parking Citations43904001104210 BHA49005613A 1,783.79 02/12/202602008742 RICHARDI, ALW1 REFUND STR TOT DUPL. PMTS31883301100000 2016-045032 1,267.91 02/12/202602008742 RICHARDI, ALW1 REFUND STR TOT DUPL. PMTS43022001104159 2016-045032 42.85 02/12/202602008743 RIVERA, VIVIAN JULIANAW1 LiveScan Reimb V. Rivera 12.1243056001104154 V. RIVERA NHLS 59.00 02/12/202602008744 SAN GORGONIO PASS POSSEW1 MOUNTED HORSE PATROL 12/202543914002294210 739518 1,500.00 02/12/202602008745 SOUTH COAST AQMDW1 25/26 EMISSIONS FEES-CITY HALL43640001104330 4574551 170.94 02/12/202602008745 SOUTH COAST AQMDW1 EMISSIONS LATE FEE-CITY HALL43640001104330 4574551 42.73 02/12/202602008746 SOUTH COAST AQMDW1 EMISSIONS LATE FEE-PDAC43640002424549 4638305-1 8.55 02/12/202602008747 SOUTH COAST AQMDW1 EMISSIONS LATE FEE - JOSLYN43640001104330 4621977-1 17.09 02/12/202602008748 SUPERIOR READY MIX CONCRETEW1 R/M CONCRETE MIX -1% SALE TAX20702001100000 950000688377 -8.67 02/12/202602008748 SUPERIOR READY MIX CONCRETEW1 R/M CONCRETE MIX - PORTOLA43320001104310 950000688377 1,033.66 02/12/202602008748 SUPERIOR READY MIX CONCRETEW1 R/M CONCRETE MIX -1% SALE TAX43320001104310 950000688377 8.67 02/12/202602008749 SURVEYMONKEY INCW1 Survey Monkey Subscr 7/26-2/2714301001100000 47383886 312.00 02/12/202602008749 SURVEYMONKEY INCW1 Survey Monkey Subscr 3/26-6/2643620001104154 47383886 156.00 02/12/202602008750 T-MOBILE USA INCW1 JN26 VEHICLE GPS MONITORING43340001104331 978220384-50 1,524.86 02/12/202602008750 T-MOBILE USA INCW1 DC25 VEHICLE GPS MONITORING43340001104331 978220384-49 1,433.60 02/12/202602008751 UMPQUA BANKW1 ESCROW #11 24251714 / C45120B10250002300000 ESCROW PP#11 8,151.72 02/12/202602008751 UMPQUA BANKW1 ESCROW #11 24251714 / C45120B20600002300000 ESCROW PP#11 -8,151.72 02/12/202602008751 UMPQUA BANKW1 ESCROW #11 24251714 / C45120B20600002300000 ESCROW PP#11 8,151.72 02/12/202602008752 UNIFIRST CORPORATIONW1 01/27/26 INDUST UNIFORM RENTAL42140001104310 2200357241 252.51 02/12/2026Report Date 10Page City and Housing Docusign Envelope ID: 52645F84-D547-4E8C-A536-042CDD849C9E 58 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/12/2026 - 2/12/2026 City of Palm Desert Account Number 02/12/202602008753 CALIFORNIA STATE UNIVERSITY SANW1 Q4 ERC SERVS OC - DC 202543950004254430 SP0014333 43,750.00 02/12/202602008754 VARIETY CHILDREN'S CHARITYW1 Variety Charity Sponsor43062011104800 VARIETY CHILDREN 1,500.00 02/12/202602008755 WASHINGTON CHARTER SCHOOLW1 2 Crossing Grds 8/20-12/19/2543092011104211 REIMB012026 9,400.00 02/12/202602008756 XPRESS GRAPHICSW1 PD OUTAGE PREPAREDNESS BOOKLET42190001104211 26-77251 353.18 02/12/202602008756 XPRESS GRAPHICSW1 Invitation SPablo Merchant Mtg43610001104430 26-77306 33.30 02/12/202602008756 XPRESS GRAPHICSW1 DW APPLICATIONS43610001104417 26-76887 286.39 02/12/202602008756 XPRESS GRAPHICSW1 DW BROCHURES43610001104417 26-76888 215.67 Examined and Approved Total For Bank ID - W1 1,176,200.40City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 02/12/2026Report Date 11Page City and Housing Docusign Envelope ID: 52645F84-D547-4E8C-A536-042CDD849C9E 59 60 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Jennifer Aguilar, Purchasing Coordinator SUBJECT: JANUARY 2026 PROCUREMENT REPORT RECOMMENDATION: Receive and file the monthly Procurement Report for January 2026. BACKGROUND/ANALYSIS: The monthly procurement report documents the procurement activities of the City of Palm Desert for the month ending January 31, 2026, in accordance with the Purchasing Policy. Included in the procurement report is the list of vendors who have been fully vetted by staff and have been added to the City’s Approved Vendor List FINANCIAL IMPACT: There is no financial impact from this action. ATTACHMENTS: Procurement Report for January 2026 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determi nation. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 61 62 Palm Desert Muni Code Chapter 3.30 - Purchasing System and Public Works Contracts Date Vendor Name Department Amount Document Type 1/2/2026 Aflex Technology (NZ) Ltd. Public Works 19,877.05$ Purchase Request Form 1/5/2026 Vance Corporation Capital Projects 18,340.36$ Change Order/Amendment Request 1/5/2026 Great Western Recreation Public Works 13,092.05$ Purchase Request Form 1/5/2026 Amazon Public Works 50,000.00$ Purchase Request Form 1/5/2026 Knorr Systems International LLC Public Works 38,720.25$ Change Order/Amendment Request 1/5/2026 Safeway Sign Co. Public Works 51,138.60$ Purchase Request Form 1/5/2026 The [re]Design Group Information Technology 18,423.59$ Change Order/Amendment Request Purchase of miscellaneous supplies as needed from Amazon, including the purchase of six metal file cabinets for the Palm Desert Library. Expenditures will be limited to those necessary to support essential maintenance and ongoing operational requirements. Purchase of ten (10) new tables as part of Palm Desert Aquatic Center (PDAC) Improvements Remove existing RRFB and push button foundations by hand and the reconfiguration of traffic control as part of the El Paseo Street Rehabilitation Project. Purchase of various pool Aflex accessories and attachments to provide a competitive advantage in both retaining current guests and attracting new ones.The accessories and attachments are specifically compatible with the Aflex inflatable recreational amenity previously purchased for the Aquatic Center. Description/Reason Invoiced taxes for the Hardware Refresh Project to replace the City's VM Servers. Purchase of street name signs, traffic warning signs, and related poles and anchors, as well as miscellaneous purchases as needed for citywide maintenance. Replacement of electronically damaged Smart Pump Control Systems for the Splash Pad, replacement of both chemical storage tanks due to age and material degradation, and replacement and proper anchoring of two grates. Administrative Contract/Purchase Approval by City Manager or Designee City of Palm Desert January, 2026 Procurement Report 3. 3 0 . 0 5 0 - 3 . 3 0 . 0 9 0 - Public projects, contracted services, professional services, and materials, supplies and equipment may all be awarded/approved by Department Head in best interest of the City up to $10,000. - Annual recurring contracted services, technology, and/or goods exception list may be approved by Finance Director not to exceed $25,000. - Public projects, contracted services, professional services, and materials, supplies and equipment may all be awarded/approved by City Manager in best interest of the City up to $75,000. - Public projects, contracted services, professional services, and materials, supplies and equipment may all be awarded/approved by City Manager in best interest of the City up to $250,000, if on approved vendor list. - Public projects, contracted services, professional services, and materials, supplies and equipment over $250,000 must be approved by City Council. - City Council may authorize City Manager to approve change orders, amendments, and contingency payments as part of their recommendation. 1 of 8 63 Date Vendor Name Department Amount Document Type 1/5/2026 Universal Trailers, INC City Manager 54,479.12$ Purchase Request Form 1/6/2026 Vintage Associates Public Works 6,320.00$ Task Order Request 1/9/2026 All American Building Services Capital Projects 27,524.70$ Change Order/Amendment Request 1/9/2026 Unlimited Mechanical Public Works 60,460.00$ Purchase Request Form 1/9/2026 County of Riverside Sheriff Department Palm Desert Station Economic Development 24,172.87$ Purchase Request Form 1/12/2026 Apprise by Walker and Dunlop Economic Development 3,900.00$ Purchase Request Form 1/14/2026 Koolfog, Inc. Public Works 25,000.00$ Change Order/Amendment Request 1/14/2026 Willis Towers Watson Northeast Inc Finance 10,351.00$ Purchase Request Form 1/14/2026 Pub Construction Public Works 129,000.00$ Task Order Request 1/15/2026 Bushido Tactical LLC City Manager 2,427.00$ Purchase Request Form Description/Reason Riverside County Sheriff's Department's services for the 2025 Palm Desert Golf Cart Parade. One-year Maintenance Services Agreement with four, one-year term extensions for preventative maintenance of appliances (Refrigerators, Freezers, Water Dispensers, Ice Machines, Exhaust Hoods, etc.) at City-Owned Facilities, as well as additional work and purchases not covered under the preventative maintenance contract. Change order to mill and remove the existing asphalt from curb to curb in the area where the median was removed and replace with a thinner layer of new asphalt to create a uniform wearing surface for vehicluar traffic in the re-aligned travel lanes to support the added on street parking on both sides of University Park Drive. Supply and install ten (10) new 24-inch box trees and eight (8) Japanese Oleanders in the Haystack greenbelt area adjacent to Highway 74. Purchase a DUI enforcement trailer for the Riverside County Sheriff's Department. - No risk to the City. Purchase of Riverside County Sheriff's Department Tactical Ballistic carriers. Task Order with PUB Construction to repaint structures at the Corporation Yard. Fine Art Insurance for the Palm Springs Art Museum/Artist Center Sculpture Garden- Sculptures. Amendment No. 1 changing the term from three years with two optional one-year extensions to one-year with four optional one-year extensions due to vendor being unable to acquire bonds for the three-year contract amount of $75,000. Appraisal for two APNs combined: A portion of Desert Willow Lot Pad A (620-400-025) and 620-400-026 (2.40 Acres) Excluding the parking lot section within the blue line. Appraised as a vacant land. 2 of 8 64 Date Vendor Name Department Amount Document Type 1/15/2026 Readyly Information Technology 33,000.00$ Purchase Request Form 1/16/2026 Esri Information Technology 16,000.00$ Purchase Request Form 1/16/2026 Recycle Coach Information Technology 27,300.00$ Purchase Request Form 1/16/2026 League of California Cities City Manager 21,361.00$ Purchase Request Form 1/16/2026 Esri Information Technology 180,900.00$ Purchase Request Form 1/20/2026 Kimley Horn and Associates, Inc. Public Works 70,000.00$ Task Order Request 1/22/2026 Arkance USA LLC Information Technology 22,110.00$ Purchase Request Form 1/22/2026 Clearsource Financial Development Services 24,960.00$ Purchase Request Form 1/22/2026 ClientFirst Information Technology 31,435.00$ Purchase Request Form Description/Reason Educational software platform provided by the City as both a downloadable mobile application and a web-based tool embedded on the City’s website. Burrtec Waste & Recycling has committed to reimbursing the City for half of the cost of Year 1 of the contract and may continue reimbursement for Years 2 and 3, contingent upon performance. Annual purchase of ArcGIS Business Analyst for FY2526. Three-year agreement for an AI widget on the city website which includes the one-time implementation fee, and several other AI-powered services for the city website such as multilingual AI chat, search, indexing of city-provided content, configurable workflow to support citizen services, staff-facing analytics, and more. Purchase and annual renewal of Bluebeam software as a central platform for digital plans and documents, enabling faster reviews and streamlined workflows. Provide on-call traffic engineering support to the City, including conducting traffic analyses, developing professional recommendations to address ongoing traffic and roadway operational needs, and reviewing traffic control plans. Renewal of three-year agreement with Esri for the ArcGIS Enterprise Software. Funds to pay for the League of California Cities, City of Palm Desert Membership dues for the 2026 calendar year. Contract for the selection and implementation of a new phone system for City Hall. Agreement for a cost of service study for fire user and regulatory fees. 3 of 8 65 Date Vendor Name Department Amount Document Type 1/27/2026 Caliba Inc Capital Projects 102,027.00$ Change Order/Amendment Request 1/27/2026 PBK Architects Capital Projects 63,655.00$ Change Order/Amendment Request 1/27/2026 Gold Arc, Inc. dba Pasco Doors Public Works 14,500.00$ Purchase Request Form Description/Reason Short-form agreement for as needed door maintenance and repairs to City-owned facilities. Additional traffic signal design services for Fire Station 71 to ensure the egress and ingress design is thoroughly evaluated and better suited to the operational needs of the fire station at this high-volume intersection. This scope was not included in the original contract scope. Change order to include additional work under the FS 102 New Build and Onsite Improvements Project. Additional work includes inclusion of reinforcement for site bollards per RFI 108.0 and 108.1 responses, rerouting storm drainpipe in conflict with Carport 1 and 3 footings per RFI 92.0 and 97.0 responses, additional work required to reroute 12-inch storm drain through CMU site wall per RFI 104.0 response, additional work required to weld rebar at carport column baseplates per RFI 76.1 response, additional work required to weld studs to columns to allow for continuous plywood attachment per RFI 125.0, additional work required to relocate temporary power pole to allow for installation of IID infrastructure per RFP 11.0, additional work required to provide survey staking of all utilities in northeasterly corner of Fire Station 102 site, including, sewer, data, and other new utilities that were recently installed to allow for IID layout and coordination efforts for integration from offsite to onsite improvements per RFP 12.0, additional costs incurred to provide for double scoring of CMU block, including additional cost for lost material and labor due to breakage from adding double scoring to CMU blocks related to RFP 7.0, additional costs incurred to pay for City of Palm Desert and CALFIRE permit fees, and additional costs incurred to provide for a mobile hose rack per RFP 3.0. A credit was applied for the initial hose rack that was specified. 4 of 8 66 Date Vendor Name Department Amount Document Type 1/27/2026 FSI Information Technology 26,004.00$ Purchase Request Form 1/27/2026 Q3 Consulting Capital Projects 23,300.00$ Change Order/Amendment Request 1/28/2026 Belfor Capital Projects 2,800.00$ Change Order/Amendment Request 1/30/2026 Washington Charter School City Manager 21,000.00$ Purchase Request Form 1/30/2026 Stlijaja, LLC (AKA 59 Club) Finance 20,000.00$ Change Order/Amendment Request 1,253,579$ Purchases above fall under the City Manager's approval limits Date Vendor Name Department Amount Document Type 1/8/2026 Rice Construction Special Programs 50,000$ Maintenance Services Agreement 1/8/2026 Holistic System Integration Solutions Development Services 312,000$ Amendment 1/8/2026 Imperial Irrigation District City Manager 4,700,000$ Funding and Reservation Agreement Description/Reason Description/Reason Crossing Guard Reimbursement to Washington Charter School for 2025-2026 school year. Test parking lot asphalt for asbestos prior to demolition for the New Library Facility Project. Additionl services for the North Palm Desert City Limit Improvements project, including data collection and review, existing-condition hydrology and hydraulic analysis, and preparation of the existing-condition drainage report for the improvements design for the Cook and Gerald Ford Project. Renewal of Sophos software for cybersecurity that provides protection against threats like malware, ransomware, and phishing through a unified platform. Contract/Purchase Approval by City Council Establishes a cost-sharing partnership between the Imperial Irrigation District (IID), the City of Palm Desert, the City of Rancho Mirage, Riverside County, the Berger Foundation, and participating developers to fund and construct the Cook Street (Thousand Palms) electrical substation. Additional funds to complete Phase 2 of the Clarity Permitting Software and support the integration of additional services. Maintenance services for the City’s Public Art Collection and El Paseo Sculpture Exhibition during the re-bidding period. Performance analysis is needed to keep DW the best in the country. 5 of 8 67 Date Vendor Name Department Amount Document Type 1/22/2026 Van Engineering Capital Projects 237,779$ Construction Contract 1/22/2026 Goldenvoice Special Programs 180,070$ Loan Agreement 1/22/2026 Palm Desert University Gateway, LLC City Manager 23,232$ Purchase and Sale Agreement 5,503,081$ Date Task Order Type Department Amount Document Type Vendor Name Description/Reason 1/8/2026 As-Needed Engingeering Services Public Works 1,000,000$ Professional Services Agreement The Altum Group As-needed engineering services to support smaller public works and capital improvement projects. 1,000,000$ Professional Services Agreement NAI Consulting As-needed engineering services to support smaller public works and capital improvement projects. 1,000,000$ Professional Services Agreement NV5, Inc. As-needed engineering services to support smaller public works and capital improvement projects. 3,000,000$ Total Contract Approvals 9,756,660$ Release Date Project Name Department Proposal Due Date Project Manager 1/5/2026 2026-27 Outside Agency Funding Request Finance 4/30/2026 Michelle Loredo 1/22/2026 Title VI Program Development and Compliance Services Public Works 2/12/2026 Chris Gerry Description Invitation to outside agencies to apply for available funding to support charities that further Palm Desert programs and services and assist residents in need of support. Provide end-to-end Title VI compliance services, including program development, policy drafting, public-facing materials, staff training, documentation, and implementation support sufficient to address all findings identified by Caltrans and FHWA. Description/Reason Request for Proposals Posted during the Month Task Order Contracts Approval by City Council Acquisition of approximately 2,122 square feet of property for right-of-way purposes to provide access to the soon-to-be-built Dave Erwin Park. Ten-year loan agreement with Goldenvoice for the installation of Taffy by Stephanie Lin at Civic Taos Palms Apartments Site Improvements Project to address flooding issues and correct site ADA deficiencies. 6 of 8 68 Release Date Project Name Department Proposal Due Date Project Manager 1/22/2026 Post Deployment Workday Support Finance 2/23/2026 Clayton Von Helf 1/29/2026 2026-27 Community Event Sponsorship Request Economic Development 4/30/2026 Shelby Goodwin These approvals are consistent with the Purchasing Policy and the FY 2025-26 Annual Budget. Submission Date 1/1/2026 1/7/2026 1/12/2026 1/12/2026 1/13/2026 Funding availability for sponsorships for community events taking place during the 2026/2027 fiscal year (July 1, 2026-June 30, 2027). Ongoing proactive system evaluation for improvement of function and performance, as a public enterprise. Description Approved Vendor Applications Vendor Services Panda Roja LLC Providing design, technical, and leadership services for the performing arts, events, hospitality, and themed environments. Skyline Events Company Provides professional event planning, meeting management, and logistical coordination services for public sector, nonprofit, and corporate clients. Services include end-to-end event management, conference and meeting coordination, venue sourcing, vendor procurement, travel and lodging coordination, on-site event support, registration management, and post-event reporting. Skyline specializes in efficiently supporting government and municipal events, community engagement programs, and professional conferences with a strong emphasis on compliance, budget control, and high-quality execution. Alpha Technologies USA Inc. An IT consulting and staffing firm incorporated in the State of Delaware, certified as an MBE by NMSDC, with over 27 years of experience delivering enterprise-level technology and workforce solutions. Our service offerings include staff augmentation, IT consulting, application development and maintenance, software engineering, systems integration, infrastructure and data-center operations, relocation services, and GAP analysis. We support Federal, State, and Local Government agencies as well as Fortune 500,1000 organizations across diverse industries, including financial services, retail, non-profit, telecommunications, pharmaceutical, and insurance sectors. With a global talent pool of 700+ highly skilled IT professionals, Alpha Technologies is a trusted provider of scalable, secure, and reliable IT solutions. Roto Lighting Locally crafted outdoor lighting in Indio, Ca. All of our products come with a lifetime fixture warranty, it will be the last fixture you have to buy. Only bulb and lens changes in the future. August-Jaye, Inc. B - GENERAL BUILDING 7 of 8 69 Submission Date 1/16/2026 1/16/2026 1/20/2026 1/27/2026 1/27/2026 1/27/2026 1/28/2026 1/29/2026 Vendor Services Brickley Construction Company, Inc. DBA Brickley Environmental B - GENERAL BUILDING C33 - PAINTING AND DECORATING C39 - ROOFING C22 - ASBESTOS ABATEMENT (Check DOSH Asbestos Registration) C21 - BUILDING MOVING, DEMOLITION ASB - ASBESTOS (For Bidding Purposes Only) HAZ - HAZARDOUS SUBSTANCES REMOVAL Electrical Innovations of California C10 - ELECTRICAL Best Contracting Services, Inc. Roofing, Waterproofing, Sheet Metal, Wall Panels, Glazing Enova Create Provides professional commercial printing and print production services, supplying schools, organizations, and businesses with high- quality printed materials such as curriculum, instructional documents, marketing materials, signage, and endless other custom print products. Jeff B Zook, A Professional Architectural Corp Professional architectural and engineering services. Vendors are fully vetted and required to provide updated pricing annually. The utilization of approved vendors is on an as-needed basis, is not guaranteed, is contingent upon the availability of funds, and must adhere to the purchasing policy. TalentZok Provides temporary staffing, temp-to-hire solutions, direct placements, and active-roster candidate deployment across a wide range of public-sector functions, including: Administration, Finance, Human Resources, and Payroll Housing, Planning, Permitting, and Community Development Public Works & Engineering Legal, Records, and City Clerk Support Public Safety Support (non-sworn) Van Engineering Inc A - GENERAL ENGINEERING Provides professional language interpretation and document translation services for public sector, educational, nonprofit, and institutional clients. Services include remote live interpretation and written document translation in multiple African, Caribbean, and global languages. All services are delivered by qualified linguists with cultural competency and experience supporting multilingual communities. Resplendence Language Arts LLC 8 of 8 70 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Michelle Nance, Assistant City Clerk SUBJECT: ADOPTION OF ORDINANCE 1442 APPROVING A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT BY SIX MONTHS TO AUGUST 27, 2026, AND FINDING THE PROJECT RECOMMENDATION: Adopt Ordinance No. 1442 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR THE DESERT WILLOW, EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT BY SIX (6) MONTHS TO AUGUST 27, 2026, AND FINDING THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.” BACKGROUND/ANALYSIS: On February 12, 2026, the City Council unanimously introduced Ordinance No. 1442 for first reading. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30 days from adoption. FINANCIAL IMPACT: There is no direct financial impact with this action. ATTACHMENTS: 1. Ordinance No. 1442 71 City of Palm Desert Ordinance No. 1442 – second reading Page 2 of 2 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): _________________________ Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 72 ORDINANCE NO. 1442 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A THIRD AMENDMENT TO THE DEVELOPMENT AGREEMENT 96-1 BETWEEN THE CITY OF PALM DESERT AND WVC RANCHO MIRAGE, INC. (FORMERLY STARWOOD) FOR THE DESERT WILLOW, EXTENDING THE TERM OF THE DEVELOPMENT AGREEMENT BY SIX (6) MONTHS TO AUGUST 27, 2026, AND FINDING THE PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT CASE NO. DA25-0001 (DA 96-1 AMENDMENT NO. 3) WHEREAS, the City of Palm Desert, California (" City") is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, the Planning and Zoning Law (Government Code Section 65000 et seq.) authorizes cities to establish by ordinance regulations for land use and development; and WHEREAS, WVC Rancho Mirage, Inc. (formerly Starwood), represented by William Vanos (“Applicant”), submitted an application requesting approval of a Third Amendment to Development Agreement No. 96-1, which governs the Desert Willow area, a resort time-share project located at 39-500 Portola Avenue (“Project”), for the purpose of extending the term of the existing Development Agreement for a period of six (6) months to August 27, 2026, with no other modifications to the Development Agreement; and WHEREAS, the Project Site is located within the Planned Residential District (PR- 5) zoning district and is designated Golf Course & Resort Neighborhood by the Palm Desert General Plan; and WHEREAS, Development Agreement No. 96-1 was entered into between the City of Palm Desert and WVC Rancho Mirage, Inc. (formerly Starwood) on February 27, 1997, and was adopted by the City Council through Ordinance No. 824 for an initial term of fifteen (15) years; and WHEREAS, the Development Agreement was amended by a First Amendment in 2007 through Ordinance No. 1135, extending the term by four (4) years, and by a Second Amendment in 2015 through Ordinance No. 1289, extending the term an additional ten (10) years to February 27, 2026; and WHEREAS, the proposed Third Amendment would further extend the term of Development Agreement No. 96-1 for an additional six (6) months to August 27, 2026, 73 Ordinance No. 1442 Page 2 and would not authorize or result in any changes to land use, development intensity, entitlements, or physical conditions on the Project Site; and WHEREAS, the Third Amendment does not constitute a “project” under the California Environmental Quality Act (CEQA) and alternatively is exempt from CEQA pursuant to the common sense exemption set forth in CEQA Guidelines Section 15061(b)(3), as it can be seen with certainty that there is no possibility the action may have a significant effect on the environment; and WHEREAS, on February 3, 2026, the Planning Commission held a duly-noticed public hearing considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance. Following the public hearing, the Planning Commission adopted Planning Commission Resolution No. 2912 to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and WHEREAS, the City Council of the City of Palm Desert conducted a duly noticed public hearing on February 12, 2026, to consider approval of the Third Amendment to Development Agreement No. 96-1, at which time all interested persons were given an opportunity to be heard; and WHEREAS, the City Council finds that the Development Agreement, as amended, remains consistent with the City’s General Plan and complies with the requirements of Government Code Sections 65864 through 65869.5. WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES ORDAIN AS FOLLOWS: SECTION 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council. SECTION 2. CEQA. The City Council finds that the the proposed amendment extends the term of the existing Development Agreement and does not result in any direct physical change or a reasonably foreseeable indirect physical change to the environment. As such, the City Council finds that the proposed amendment is not a "Project" as defined by State CEQA Guidelines section 15378(a).Even if the proposed amendment constituted as a project pursuant to the California Environmental Quality Act (CEQA), the City Council finds the proposed amendment is exempt from further CEQA review pursuant to the State CEQA Guidelines Section 15061(b)(3) the common sense exemption. Here, it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment since the proposed amendment merely extends the term of the Development Agreement and does not involve any physical change in the environment. Therefore, no additional environmental review is required. 74 Ordinance No. 1442 Page 3 SECTION 3. Findings of Consistency. The City Council finds that Development Agreement No. 96-1, as amended, remains consistent with the Palm Desert General Plan. These findings are made pursuant to Gove rnment Code Sections 65867.5 and 65868. SECTION 4. Approval of the Third Amendment. The City Council hereby approves the Third Amendment to Development Agreement No. 96-1 between the City of Palm Desert and WVC Rancho Mirage, Inc. (formerly Starwood), extending the term of the Development Agreement for six (6) months to August 27, 2026, in substantially the form on file with the City Clerk. SECTION 5. Effective Date. This Ordinance takes effect 30 days after its adoption. SECTION 6. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law. SECTION 7. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 73-510 Fred Waring Drive, Palm Desert, CA. SECTION 8. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity shall have no effect on the other provisions or applications of this Ordinance that can be given effect without the invalid provision or application. To this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof. ADOPTED ON FEBRUARY __, 2026. EVAN TRUBEE MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK 75 Ordinance No. 1442 Page 4 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1442 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on February 12, 2026, and adopted at a regular meeting of the City Council held on __________, 202 6, 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 76 Ordinance No. 1442 Page 5 “EXHIBIT A” Development Agreement Amendment No. 3 See following pages 77 Ordinance No. 1442 Page 6 THIRD AMENDMENT TO DEVELOPMENT AGREEMENT THIS THIRD AMENDMENT TO DEVELOPMENT AGREEMENT (the “Third Amendment”), dated as of February 26, 2026 (“Effective Date”) is entered into by and between the CITY OF PALM DESERT, a municipal corporation (the “City”) and WVC RANCHO MIRAGE, INC., a Delaware corporation (“Starwood”). RECITALS This Third Amendment is entered into with reference to the following facts: A. City and lntrawest Resort Ownership Corporation, a corporation organized and existing under the laws of the Province of British Columbia, Canada (“IROC''), entered into a Development Agreement dated February 27, 1997, which Development Agreement was (i) recorded on August 29, 1997 as instrument number 315819 in the official records of the County Recorder for the County of Riverside, California, (ii) amended by that certain Amendment to Development Agreement (Development Agreement 06 -03) (the “First Amendment”) dated as of May 10, 2007, and (iii) further amended by that certain Second Amendment to Development Agreement (the “Second Amendment”) dated as of September 10, 2015 (as so amended, and as assigned from time to time, the “DA”). All capitalized terms used herein without definition when first used shall have the meanings set forth in the DA. B. The DA provided IROC with a vested right to develop certain real property in the City of Palm Desert (“IROC Property”) as a resort club and time shares (the “lntrawest Project”). C. On or about October 12, 1998, IROC assigned and conveyed to Resort Ventures, L.P., a California limited partnership (“RV”) all of IROC's rights, title, interest and obligations under and to the DA and all related project documents. D. On or about June 26, 2006, RV sold to Starwood all of its rights, title and interest in and to that portion of IROC Property described on Exhibit “A” attached hereto and incorporated herein by this reference (the “Starwood Property”). The City gave its consent to the transfer from RV to Starwood of any and all rights and obligations under the terms of the DA to the extent that such rights and/or obligations arise from ownership of the Starwood Property. E. On or about June 26, 2006, Starwood applied for and the City approved a conceptual master plan (hereinafter the “Starwood Master Plan”) which provides for the development of 300 two-bedroom lockoff time share units in 18 two- story, three- story, and four-story buildings and a one-story sales/clubhouse facility of approximately 40,000 square feet, along with recreational amenities (hereinafter collectively referred to as the “Starwood Project”). 78 Ordinance No. 1442 Page 7 F. City and Starwood now desire to amend the DA to extend the term of the DA to temporarily extend the term of the DA for a period of six (6) months, to allow the parties additional time to discuss terms for a longer-term extension. G. City has given notice of its intention to adopt this proposed Third Amendment, has conducted public hearings thereon pursuant to Government Code Section 65867 and Palm Desert Municipal Code Ordinances Nos. 341 and 589, has taken action in accordance with the California Environmental Quality Act, and has found that the provisions of this Third Amendment and its purposes are consistent with the objectives, policies, general land uses and programs specified in the City's G eneral Plan and any applicable specific plan. H. The City, by electing to enter into this Third Amendment, acknowledges that the obligations of the City hereunder shall survive beyond the terms of the present City Council members of the City, and that such action will serve to bind City and future Councils to the obligations thereby undertaken. I. This Third Amendment and the consent of Starwood to each of its terms and conditions will eliminate uncertainty in planning and provide for the orderly developme nt of the Starwood Property, eliminate uncertainty about the validity of exactions imposed by the City, and generally serve the public interest. [Remainder of page intentionally left blank] AGREEMENT NOW, THEREFORE, in consideration of the above recitals and of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. The original DA specified a term of fifteen (15) years. That original term was extended for an additional four (4) years by the First Amendment and by an additional ten (10) years by the Second Amendment. The parties now acknowledge that, through no fault of either party, the economic conditions in recent years have resulte d in a much slower rate of development than was originally anticipated. Therefore, to allow the parties additional time to discuss terms for a longer-term extension of the DA, the parties agree that the term of the DA shall hereby be extended for an additional six (6) months beyond the term specified in the Second Amendment, making the new expiration date for the DA August 27, 2026. Nothing herein shall be construed as obligating the City to grant any further extension of the DA beyond August 27, 2026. 79 Ordinance No. 1442 Page 8 2. Except as specifically amended by the First Amendment, Second Amendment and this Third Amendment, the DA shall remain in full force and effect in accordance with its original terms and conditions, which are hereby restated and incorporated herein by reference. 3. Miscellaneous. 3.1 Binding Effect. This Third Amendment shall bind and benefit the heirs, successors, and assigns of Starwood and the City, respectively. 3.2 No Waiver. None of the terms or provisions of this Third Amendment may be waived, altered, modified, limited, or amended except by an agreement expressly referring hereto and to which the parties to be bound consent in writing. 3.3 Governing Law. This Third Amendment shall be governed by the laws of the State of California. 3.4 Reliance on Counsel/Entire Agreement. In executing this Third Amendment, no Party has relied on any inducements, promises, or representations by any other Party or its attorney, other than those set out in this Third Amendment. This instrument constitutes the entire, integrated understanding of the Parties with respect to the subject matter contained herein, and there are no other prior or contemporaneous oral or written agreements or understandings except as expressly set forth herein. 3.5 Severability. Each and every provision of this Third Amendment is and shall be construed as a separate and independent covenant and agreement. If any term or provision of this Third Amendment or the application thereof shall to any extent be held to be invalid or unenforceable, the remainder of this Third Amendment, or the application of such term or provision to circumstances other than those to which it is invalid or unenforceable, shall not be affected hereby, and each term and provision of this Third Amendment shall be valid and shall be enforced to the extent permitted by law. 3.6 Execution in Counterparts. This Third Amendment 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. 80 Ordinance No. 1442 Page 9 IN WITNESS W HEREOF, the parties hereto have entered into this Third Amendment as of the day and year first written above. Insert Signer’s Title Here ATTEST: By: __________________________ Name of Signer Signer’s title 81 Ordinance No. 1442 Page 10 IN WITNESS WHEREOF, the parties hereto have entered into this Third Amendment as of the day and year first written above. Signature Signature ATTEST: By: ________________________ Anthony J. Mejia City Clerk 82 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Anthony J. Mejia, City Clerk SUBJECT: RATIFICATION OF LETTER SUPPORTING ASSEMBLY BILL 1708 (SOLACHE) – HHAP PATHWAYS FOR CITIES ACT RECOMMENDATION: Ratify the issuance of the letter supporting Assembly Bill 1708 (Solache) - Homeless Housing, Assistance, and Prevention (HHAP) Pathways for Cities Act. BACKGROUND/ANALYSIS: On February 11, 2026, the City submitted a letter supporting Assembly Bill 1708 (Solache), which relates to Round 7 of the Homeless Housing, Assistance, and Prevention (HHAP) Program. AB 1708 would require Continuums of Care receiving HHAP Round 7 funds to provide a 30-day application period exclusively for cities with populations under 300,000 and to allocate funding to eligible smaller jurisdictions that meet specified requirements. To qualify, a city must adopt a resolution committing to its regionally coordinated homelessness action plan following a public hearing, maintain a compliant housing element, adopt a local encampment policy consistent with state guidance, and demonstrate prior actions supporting HHAP objectives. Support of AB 1708 does not obligate the City to apply f or funding or to adopt any additional policies at this time. The procedural requirements described above would apply only if the City later elects to pursue HHAP Round 7 funding. In accordance with Resolution No. 2025-020, Mayor Trubee and Mayor Pro Tem Pradetto reviewed and approved the letter in advance of formal ratification by the City Council. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact associated with this action. ATTACHMENTS: 1. Letter of Support 2. AB 1708 Bill Text 83 City of Palm Desert Letter of Support – Assembly Bill 1708 Page 2 of 2 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determi nation. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 84 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 INFO@PALMDESERT.GOV February 11, 2026 The Honorable José Luis Solache California State Assembly 1020 N Street, Room 5110 Sacramento, CA 95814 RE: AB 1708 (Solache) HHAP Pathways for Cities Act — SUPPORT Dear Assembly Member Solache: The City of Palm Desert is pleased to support AB 1708 (Solache), which would create a defined opportunity for cities with populations under 300,000 to apply for Homeless Housing, Assistance, and Prevention (HHAP) Program funding through their local Continuum of Care (CoC). Under current law, HHAP provides direct funding to counties, large cities, and CoCs. Cities with fewer than 300,000 residents do not receive direct allocations and may access funds only if selected as subrecipients. AB 1708 would require CoCs, prior to allocating funds to other subrecipients, to accept applications from cities with populations under 300,000 that meet specified eligibility requirements for a limited period. Palm Desert participates in regional efforts to address homelessness and works with Riverside County, the local CoC, and nonprofit service providers. The City also allocates local resources to address homelessness-related impacts in the community. Providing cities with fewer than 300,000 residents with a formal opportunity to apply for HHAP funding would allow Palm Desert to pursue additional resources to support local and regional efforts, subject to eligibility and award criteria. For these reasons, the City of Palm Desert respectfully supports AB 1708 (Solache). Sincerely, Evan Trubee Mayor, City of Palm Desert cc: Senator Rosilicie Ochoa Bogh Assembly Member Greg Wallis League of California Cities, cityletters@cacities.org 85 86 california legislature—2025–26 regular session ASSEMBLY BILL No. 1708 Introduced by Assembly Member Solache February 4, 2026 An act to add Section 50246 to the Health and Safety Code, relating to housing. legislative counsel’s digest AB 1708, as introduced, Solache. Homeless Housing, Assistance, and Prevention program: round 7. Existing law establishes the Homeless Housing, Assistance, and Prevention (HHAP) program for the purpose of providing jurisdictions with grant funds to support regional coordination and expand or develop local capacity to address their immediate homelessness challenges, as specified. Existing law provides for the allocation of funding under the program among continuums of care, cities, counties, and tribes in 6 rounds, with rounds 1 to 5, inclusive, administered by the Interagency Council on Homelessness and round 6 administered by the Department of Housing and Community Development, as provided. Existing law establishes round 7 of the program and states the intent of the Legislature to enact future legislation that specifies the parameters, as specified. Existing law, effective July 1, 2026, appropriates $500,000,000, as specified, provided that these funds be disbursed in accordance with specified requirements, including that funds from this appropriation be disbursed to a city, county, tribe, or continuum of care for round 7 of the program after a declaration by the director of the department, in consultation with the Director of Finance, that the department has substantially completed its initial disbursement of round 6 funds to the city, county, tribe, or continuum of care and that the city, county, tribe, 99 87 or continuum of care has obligated at least 50% of its total round 6 award. Existing law requires the department, during the 2025–26 fiscal year, to prepare to administer round 7 of the program with the goal that initial round 7 disbursements will be available to grantees meeting the statutory provisions for disbursement beginning September 1, 2026, as specified. This bill would require a continuum of care receiving funding pursuant to round 7, as described above, to allocate funds to a smaller jurisdiction, defined as a city with a population under 300,000. The bill would require a smaller jurisdiction, in order to be eligible for funding, to, among other things, adopt a resolution, as specified, have a compliant housing element, and have adopted a local encampment policy, as described. The bill would require a continuum of care to accept applications for funding in accordance with specified procedures. Vote: majority. Appropriation: no. Fiscal committee: yes.​ State-mandated local program: no.​ The people of the State of California do enact as follows: line 1 SECTION 1. Section 50246 is added to the Health and Safety line 2 Code, to read: line 3 50246. (a)  A continuum of care receiving funding pursuant to line 4 paragraph (2) of subdivision (b) of Section 50245 shall allocate line 5 funds to smaller jurisdictions pursuant to this section. line 6 (b)  In order to be eligible to receive funding pursuant to this line 7 section, the smaller jurisdiction shall comply with each of the line 8 following: line 9 (1)  (A)  Adopt a resolution that does both of the following: line 10 (i)  Commits to participating in, and complying with, the line 11 regionally coordinated homelessness action plan. line 12 (ii)  Directs the mayor to sign the memorandum of understanding line 13 that reflects the regionally coordinated homelessness action plan. line 14 (B)  (i)  Prior to adopting the resolution described in this line 15 paragraph, the smaller jurisdiction shall hold a public hearing to line 16 consider the regionally coordinated homelessness action plan. line 17 (ii)  At least 30 days prior to the public hearing, the smaller line 18 jurisdiction shall post on its internet website the proposed, line 19 approved, and amended regionally coordinated homelessness action line 20 plan. line 21 (2)  Have a compliant housing element. 99 — 2 — AB 1708 88 line 1 (3)  Have adopted a local encampment policy consistent with line 2 administration guidance. line 3 (4)  Demonstrate how its past actions, programs, and line 4 appropriation of funds have served the objectives and goals of the line 5 adopted regionally coordinated homelessness action plan and the line 6 intent of the Homeless Housing, Assistance, and Prevention line 7 program to prevent and expeditiously reduce unsheltered line 8 homelessness through homelessness prevention activities. line 9 (c)  A continuum of care shall accept applications for funding line 10 in accordance with the following procedure: line 11 (1)  During an initial period of 30 days, for round 7 funding, a line 12 continuum of care shall accept only applications from smaller line 13 jurisdictions determined to be eligible pursuant to subdivision (b). line 14 (2)  (A)  The continuum of care shall evaluate the applications line 15 submitted pursuant to paragraph (1) and award funds in compliance line 16 with all round 7 rules and regulations. line 17 (B)  The continuum of care shall prioritize applications in which line 18 a smaller jurisdiction agrees to utilize round 7 funding in line 19 partnership with a nonprofit, another smaller jurisdiction, or other line 20 private organization eligible for round 7 funding. line 21 (3)  If funding remains after the awards made pursuant to line 22 paragraph (2), the continuum of care shall accept and evaluate line 23 applications from other eligible applicants. line 24 (d)  For purposes of this section, “smaller jurisdiction” means a line 25 city with a population under 300,000. O 99 AB 1708 — 3 — 89 90 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Anthony J. Mejia, MMC SUBJECT: RATIFICATION OF LETTER SUPPORTING CITY OF INDIAN WELLS LOW FLOW CHANNEL PROJECT (PROPOSITION 1 GRANT APPLICATION) RECOMMENDATION: Ratify the issuance of the letter supporting the City of Indian Wells’ Proposition 1 grant application to the Coachella Valley Mountains Conservancy for the Low Flow Channel Capital Improvement Project. BACKGROUND/ANALYSIS: On February 11, 2026, the City submitted a letter supporting the City of Indian Wells’ application for Proposition 1 funding through the Coachella Valley Mountains Conservancy for improvements to the Whitewater River Channel low-flow facility. The Whitewater River Channel is a regional flood control and stormwater conveyance facility serving communities throughout the Coachella Valley. The proposed project involves the reconstruction of an approximately 5,800-foot concrete low-flow channel within the City of Indian Wells to improve stormwater conveyance and sediment management. The total estimated project cost is $2,000,000. The City of Indian Wells is requesting $1,200,000 in grant funding from the Coachella Valley Mountains Conservancy. In accordance with Resolution No. 2025-020, Mayor Trubee and Mayor Pro Tem Pradetto reviewed and approved the letter in advance of formal ratification by the City Council. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact associated with this action. ATTACHMENTS: 1. Letter of Support 91 City of Palm Desert Letter of Support – Indian Wells Low Flow Channel Project Page 2 of 2 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determi nation. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 92 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 INFO@PALMDESERT.GOV February 11, 2026 Coachella Valley Mountains Conservancy Attn: Board of Directors 42-600 Cook Street, Suite 219 Palm Desert, CA 92260 RE: Support for City of Indian Wells Low Flow Channel Project (Proposition 1) Dear Board of Directors: On behalf of the City of Palm Desert, I am pleased to express our support for the City of Indian Wells’ application for Proposition 1 grant funding through the Coachella Valley Mountains Conservancy for the Low Flow Channel Capital Improvement Project. The Whitewater River Stormwater Channel is a critical regional asset that provides flood protection and stormwater conveyance for communities throughout the Coachella Valley. Improvements to this system within Indian Wells will deliver measurable benefits to neighboring jurisdictions by strengthening the overall performance and resilience of the shared watershed. If funded, the proposed project would: • Improve water quality by reducing sediment transport and channel scouring through better-managed low-flow conditions. • Enhance erosion control by stabilizing channel slopes and protecting adjacent regional infrastructure. • Support long-term watershed health by maintaining natural hydrologic function consistent with the California Water Action Plan. The City of Palm Desert values regional collaboration on infrastructure investments that protect public safety, improve environmental outcomes, and promote sustainable water management. We view this project as an important component of those shared objectives and respectfully urge the Conservancy’s favorable consideration of this request. Sincerely, Evan Trubee Mayor, City of Palm Desert 93 94 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Anthony J. Mejia, City Clerk SUBJECT: RATIFICATION OF LETTER SUPPORTING CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO COMMUNITY PROJECT FUNDING REQUEST FOR REGIONAL ENTREPRENEURIAL RESOURCE CENTERS RECOMMENDATION: Ratify the issuance of a letter supporting California State University, San Bernardino’s $2.49 million Community Project Funding request for the Regional Entrepreneurial Resource Centers program. BACKGROUND/ANALYSIS: The City submitted a letter to United States Senator Adam Schiff expressing support for California State University, San Bernardino’s $2.49 million Community Project Funding re quest. The request would support regional entrepreneurial and small business assistance programs serving the Inland Empire, including Palm Desert. The proposed funding is intended to enhance access to business development resources and strengthen regional economic development efforts. In accordance with Resolution No. 2025-020, Mayor Trubee and Mayor Pro Tem Pradetto reviewed and approved the letter in advance of formal ratification by the City Council. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact associated with this action. ATTACHMENTS: 1. Letter of Support - Schiff 2. Letter of Support - Padilla 95 City of Palm Desert (CSUSB Federal Earmark Funding Request) Page 2 of 2 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determi nation. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 96 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 INFO@PALMDESERT.GOV February 17, 2026 The Honorable Adam Schiff United States Senator 112 Hart Senate Office Building Washington, D.C. 20510 RE: Support for California State University, San Bernardino’s $2.49 Million Community Project Funding Request for Regional Entrepreneurial Resource Centers Dear Senator Schiff: On behalf of the City of Palm Desert, I am pleased to express our support for California State University, San Bernardino’s $2.49 million Community Project Funding request for the Regional Entrepreneurial Resource Centers program. The Inland Empire Center for Entrepreneurship at California State University, San Bernardino is the largest entrepreneurial support organization in the Inland Empire dedicated to providing innovative programs and educational resources to aspiring and existing entrepreneurs and small business owners. Since 2000, the Center has leveraged university, federal, state, local, and private funding to develop and deliver entrepreneurial training and small business counseling services to more than 213,552 businesses. These efforts have resulted in an economic impact of over $1.013 billion, supported more than 62,459 jobs, and led to the launch of more than 2,839 distinct startups. We respectfully request your favorable consideration of CSUSB’s congressional directed spending request of $2.49 million to support the Regional Entrepreneurial Resource Centers program serving the Inland Empire, including locations in Palm Desert, Temecula, and San Bernardino. Sincerely, Evan Trubee Mayor, City of Palm Desert 97 98 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 INFO@PALMDESERT.GOV February 17, 2026 The Honorable Alex Padilla United States Senator 331 Hart Senate Office Building Washington, D.C. 20510 RE: Support for California State University, San Bernardino’s $2.49 Million Community Project Funding Request for Regional Entrepreneurial Resource Centers Dear Senator Padilla: On behalf of the City of Palm Desert, I am pleased to express our support for California State University, San Bernardino’s $2.49 million Community Project Funding request for the Regional Entrepreneurial Resource Centers program. The Inland Empire Center for Entrepreneurship at California State University, San Bernardino is the largest entrepreneurial support organization in the Inland Empire dedicated to providing innovative programs and educational resources to aspiring and existing entrepreneurs and small business owners. Since 2000, the Center has leveraged university, federal, state, local, and private funding to develop and deliver entrepreneurial training and small business counseling services to more than 213,552 businesses. These efforts have resulted in an economic impact of over $1.013 billion, supported more than 62,459 jobs, and led to the launch of more than 2,839 distinct startups. We respectfully request your favorable consideration of CSUSB’s congressional directed spending request of $2.49 million to support the Regional Entrepreneurial Resource Centers program serving the Inland Empire, including locations in Palm Desert, Temecula, and San Bernardino. Sincerely, Evan Trubee Mayor, City of Palm Desert 99 100 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Sarah Castro, Sr. Administrative Assistant SUBJECT: AMENDMENT TO THE 2026 CITY COUNCIL LIAISON AND SUBCOMMITTEE ASSIGNMENTS RECOMMENDATION: Approve amendments to the 2026 City Council Liaison and Subcommittee Assignments. BACKGROUND/ANALYSIS: On January 22, 2026, the City Council approved the 2026 City Council Liaison and Subcommittee Assignments and Appointment of Representatives to External Organizations. Since that time, staff has requested that the Mayor consider appointments to two newly established 2x2 committees: Desert Recreation District , and College of the Desert. In addition, staff is formally incorporating the Dining Deck Liaisons to Staff into the 2026 roster, consistent with the roster approved by the City Council on June 12, 2025. The Artists Council has requested the establishment of a City Council Liaison. The liaison would serve in a non-voting, non-board capacity and participate in monthly coordination meetings with the Board Chair and Executive Manager, as well as attend select events, as appropriate, to support communication and collaboration. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact associated with this action. ATTACHMENTS: 1. Revised 2026 City Council Roster 101 City of Palm Desert 2026 City Council Assignments Revision Page 2 of 2 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determi nation. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 102 GROUP ROLE 2026 PROPROSED APPOINTEE(S) 2026 PROPOSED ALTERNATE FORM 700 STIPEND STAFF LIAISON MEETING SCHEDULE City Selection Committee (Mayor)Member Trubee Pradetto No N/A A. Mejia Annual Meeting, Riverside, CA Desert Willow President's Committee (Mayor)Member Trubee Pradetto City N/A V. Chavez 3rd Tuesday – 10:00 a.m. Living Desert Board of Trustees Advisory Council (Mayor)Member Trubee Pradetto City N/A V. Chavez 4th Friday – 12:00 p.m. (Jan., April, Nov.) PD Finance Committee (Mayor & MPT)Members Trubee/ Pradetto N/A City N/A V. Chavez 4th Tuesday – 10:00 a.m. (Jan., April, July, Oct.), ACR PD Outside Agency Funding Committee (Mayor & MPT)Members Trubee/ Pradetto N/A City N/A V. Chavez As needed - ACR Coachella Valley Mountains Conservancy Board Member Trubee Nestande Yes $75 R. Chavez Quarterly 2nd Monday - 3:00 p.m. CVAG Coachella Valley Conservation Commission Member Trubee Quintanilla Yes $100 R. Chavez 2nd Thursday – 10:30 a.m. PD Parks and Recreation Committee Liaison Trubee Nestande City N/A R. Chavez 1st Tuesday – 8:30 a.m. (ACR) PD Recreational Facilities Corporation (Desert Willow ABC License)Member Nestande Trubee City N/A V. Chavez 2nd Monday in June (ACR) California Joint Powers Insurance Authority Member Pradetto Trubee No $100 A. Staehle July 22, 2026 – CJPIA Office, La Palma CVAG Executive Committee Member Trubee Pradetto Yes $125 C. Escobedo Last Monday – 4:00 p.m. League of California Cities Annual Business Meeting Member Trubee Quintanilla No N/A A. Mejia September 25, 2026, Anaheim, CA Southern California Association of Governments General Assembly Member Quintanilla Pradetto Yes N/A A. Mejia May 2026 Coachella Valley Animal Campus Commission Member Quintanilla Trubee No N/A R. Cannone Bimonthly, 1st Thursday – 9:30 a.m. Cove Communities Services Commission (Two Members)Members Trubee/Quintanilla Nestande No N/A R. Cannone As needed CVAG Public Safety Committee Member Quintanilla Trubee Yes $100 R. Cannone 2nd Monday – 9:00 a.m. Joslyn Center Board of Directors Liaison Quintanilla Not Allowed No N/A R. Cannone 4th Tuesday – 3:30 p.m. PD Public Safety Committee Liaison Trubee Quintanilla City N/A D. Hurtado Bimonthly, 2nd Tuesday – 3:30 p.m. (ACR) PD Cultural Arts Committee Liaison Nestande Quintanilla City N/A E. Jimenez 2nd Wednesday – 9:00 a.m. (ACR) PD Historic Preservation Committee Liaison Trubee Harnik City N/A R. Lua Bimonthly 4th Wednesday – 9:00 a.m. (ACR) Palm Desert Historical Society Liaison Trubee Nestande No N/A R. Lua 3rd Tuesday – 5:30 p.m. PD Library Advisory Committee Liaison Trubee Harnik City N/A S. Vonnegut 4th Monday – 1:00 p.m. (March, June, Sept., Dec.), ACR 2026 CITY COUNCIL ROSTER OF EXTERNAL APPOINTMENTS 103 GROUP ROLE 2026 PROPROSED APPOINTEE(S) 2026 PROPOSED ALTERNATE FORM 700 STIPEND STAFF LIAISON MEETING SCHEDULE 2026 CITY COUNCIL ROSTER OF EXTERNAL APPOINTMENTS CVAG Homelessness Committee Member Pradetto Nestande Yes $100 I. Tenorio 3rd Wednesday – 10:00 a.m. PD Housing Commission Liaison Pradetto Quintanilla City N/A C. Flores 2nd Wednesday – 3:30 p.m., (ACR) PD Homelessness Taskforce (Two Members)Liaisons Pradetto/ Quintanilla Nestande City N/A I. Tenorio 2nd Monday – 9:00 a.m. (May & Nov.), ACR Regional Access Project Foundation Board Member Quintanilla Not Allowed Yes N/A V. Chavez 4th Wednesday – 9:00 a.m. Children’s Discovery Museum of the Desert Liaison Quintanilla Nestande No N/A V. Chavez 3rd Wednesday – 4:00 p.m. Desert Sands USD 2X2 Committee (Two Members)Members Trubee/Pradetto Harnik No N/A C. Escobedo As needed McCallum Education Committee Member Quintanilla Nestande No N/A A. Lawrence February, March, May, 2026- 4:30 p.m. PD Civic Engagement Committee (Two Members)Liaisons Quintanilla/ Trubee N/A City N/A R. Penta 3rd Thursday - 11:00 a.m. (April & Oct.) – ACR YMCA Board of Directors Liaison Nestande Trubee No N/A C. Escobedo 4th Thursday – 12:00 p.m. CVWD Water Issues 2x2 Committee (Two Members)Members Nestande/Pradetto N/A No N/A M. Alvarez As needed PD El Paseo Business Improvement District Board Liaison Trubee Nestande City N/A T. Soule 3rd Thursday – 8:00 a.m. (ACR) PD Area Chamber of Commerce Board of Directors Liaison Nestande Pradetto No N/A M. Alvarez 4th Tuesday – 7:30 a.m. (PDACC) Visit Greater Palm Springs Joint Powers Authority Member Trubee Harnik Yes $100 T. Soule 4th Friday – 8:30 a.m. CVAG Transportation Committee Member Harnik Pradetto Yes $100 R. Chavez 1st Monday – 10:00 a.m. Riverside County Transportation Commission (RCTC)Member Harnik Pradetto Yes $100 R. Chavez 2nd Wednesday – 9:30 a.m. SunLine Transit Agency Board Member Quintanilla Harnik Yes $50 R. Chavez 4th Wednesday – 12:00 p.m. CVAG Desert Community Energy Board Member V. Chavez Quintanilla Yes N/A V. Chavez 3rd Monday – 12:00 p.m., CVAG Office CVAG Energy & Sustainability Committee Member Nestande Trubee Yes $100 C. Gerry 2nd Thursday – 12:00 p.m. PD Environmental Resources Committee Liaison Harnik Trubee City N/A C. Gerry As needed – ACR 104 TOPIC DEPT. Active Transportation Program Harnik Trubee R. Chavez PW Affordable Housing Policy Pradetto Quintanilla C. Flores DS Animal Services Quintanilla Trubee R. Cannone CMO City/University Planning Pradetto Harnik C. Escobedo CMO Boards and Commissions Trubee Pradetto A. Mejia CMO Dining Deck Subcommittee Trubee Pradetto C. Flores DS Downtown Zoning Pradetto Quintanilla R. Lua DS Economic Development Harnik Nestande M. Alvarez ED Governmental and Legislative Affairs Mayor MPT A. Mejia CMO Hillside Development Harnik Pradetto R. Lua DS Litigation Trubee Pradetto C. Escobedo CMO Palm Desert Aquatic Center Nestande Pradetto S. Muir PW Palm Desert Entrepreneurial Resource Center Pradetto Trubee M. Alvarez ED Park Naming Pradetto Trubee Seasonal Lighting and Décor Harnik Trubee R. Chavez PW Short Tem Rentals Nestande Harnik C. Flores DS Special Events Mayor MPT A. Lawrence ED Unified Development Pradetto Trubee R. Lua DS 2026 CITY COUNCIL LIAISONS TO CITY STAFF 105 106 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Thomas Soule, Public Affairs Manager SUBJECT: APPROVE A FISCAL YEAR 2025/26 EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT MID-YEAR BUDGET ADJUSTMENT AND AMEND THE FG CREATIVE MARKETING SERVICES CONTRACT. RECOMMENDATION: 1. Appropriate $50,000 to El Paseo Business Improvement District Account No. 2714491- 4321500 as part of the FY 2025-26 Midyear Review. 2. Approve Amendment No. 7 to Contract No. C43370 with FG Creative to increase the FY 2025-26 not-to-exceed contract amount from $250,000 to $325,000. 3. Authorize the City Manager to execute Amendment No. 7 and make any necessary non- monetary changes to the agreement. BACKGROUND/ANALYSIS: The El Paseo Parking and Business Improvement District (EPPBID) was established in 1984 pursuant to the California Streets and Highways Code. The District is funded through annual business assessments levied on El Paseo merchants based on gross sales. Assessment revenues are restricted for qualified activities that benefit the district, including marketing and promotional efforts. Because assessment revenues fluctuate annually based on reported sales, the District’s budget varies from year to year and cannot be projected with precision at the time of budget adoption. Historically, the EPPBID Advisory Board adopts a baseline annual budget and then evaluates revenues and available fund balance mid -year to determine whether additional marketing expenditures are appropriate. When mid -year adjustments are approved, corresponding amendments to the marketing services contract are required to align contract authority with the Board-approved budget. The City entered into a three-year agreement with FG Creative effective July 1, 2022, with two one-year extension options. Amendments to the agreement have historically been administrative in nature and tied to annual baseline budget adjustments and mid -year Board-approved increases. These amendments reflect pass-through advertising, media buying, and production costs funded by BID assessments and have not increased the agency’s compensation. For FY 2025-26, the following actions have occurred: • Amendment No. 6 approved the first one-year contract extension at the original contract amount of $250,000. 107 City of Palm Desert FY 25/26 EPPBID Mid-year Budget Adjustment Page 2 of 4 • The City Council adopted the FY 2025-26 budget, which included $275,000 for EPPBID marketing services. • At its November 20, 2025 meeting, the EPPBID Board approved $40,000 in additional advertising expenditures. • At its December 18, 2025 meeting, the Board approved an additional $10,000 for print advertising and social media content production. Together, the Board’s actions constitute a $50,000 mid -year budget adjustment. City Council approval is required to appropriate these funds and to amend the contract accordingly. Amendment No. 7 will: • Align the contract authority with the City Council-adopted FY 2025-26 baseline budget; and • Incorporate the $50,000 mid-year budget adjustment approved by the EPPBID Board. Approval of Amendment No. 7 will increase the FY 2025 -26 not-to-exceed contract amount to $325,000. The additional authority reflects Board-approved marketing expenditures funded by BID revenues and does not increase the agency’s compensation. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Approval of this action will incorporate a $50,000 adjustment into the FY 2025 -26 EPPBID operating budget. Revenues are available in Fund Balance for this purpose. The adjustment will accommodate the Board approved services to be included as part of Contract Amendment No. 7 with FG Creative. Description Sources Uses Balance FY 2025-26 EPPBID Budget $275,000 2.26.26 Appropriation (This Request) $50,000 Contract C43370 $250,000 *Amendment No. 7 (This Request) $75,000 Total $325,000 $325,000 $0 *FG Creative has a multi-year contract. Amendment No. 7 is the only amendment in FY 2025-26. There is no fiscal impact to the General Fund with this action. ATTACHMENTS: 1. Contract No. C43370 with FG Creative 2. Amendment No. 1 to Contract No. C43370 3. Amendment No. 2 to Contract No. C43370 4. Amendment No. 3 to Contract No. C43370 5. Amendment No. 4 to Contract No. C43370 6. Amendment No. 5 to Contract No. C43370 108 City of Palm Desert FY 25/26 EPPBID Mid-year Budget Adjustment Page 3 of 4 7. Amendment No. 6 to Contract No. C43370 8. Draft Amendment No. 7 to Contract No. C43370 109 City of Palm Desert FY 25/26 EPPBID Mid-year Budget Adjustment Page 4 of 4 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☒ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): FG Creative Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determination. 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City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties.” RECITALS A. The City of Palm Desert is a municipal corporation organized under the laws of the State of California. B. The Consultant is engaged in the business of providing professional marketing consulting services to public clients and has represented to the City that the Contractor is experienced and competent in said business. C. The City and Consultant desire to enter into this Amendment to the Agreement. D. The Parties entered into that certain Professional Consultant Services Agreement for Marketing Services Contract No. C43370, by and between the City of Palm Desert and FG Creative, Inc., dated June 23, 2022 (“Contract”), which was effective on July 1, 2022. NOW, THEREFORE, the Parties agree to amend the Contract as follows: Section 3.6.A Compensation shall be amended to read: “Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Ninety Thousand Dollars ($290,000.00) without written approval of the City Council or City Manager, as applicable.” All other terms of the Contract to remain unchanged and in full force and effect. DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19 137 Contract No. C43370 IN WITNESS THEREOF, the Parties have executed this Amendment on the date first above written. CITY OF PALM DESERT FG CREATIVE, INC. By: ____________________________ By: __________________________ L. Todd Hileman Stephanie Greene City Manager Principal Attest: Anthony J. Mejia City Clerk Approved as to Form: ______________________________ Best, Best, & Krieger LLP City Attorney QC: MN INSURANCE: INITIAL REVIEW FINAL REVIEW DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19 138 Contract No. C43370 7. EXHIBIT “C” 7.1 COMPENSATION The CITY's budget for advertising and publicizing the EPPBID's facilities, services and events is established as part of the CITY's fiscal year budget for the period of July 1, 2022 - June 30, 2023, at $290,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:  The CITY will pay FG CREATIVE a flat fee of $3,500 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.  FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.  FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.  FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract. 7.2 RENEWAL In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino-Ontario, CA DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19 139 140 Contract No. C43370 Page 1 of 4 Revised 07-2023 BBK 72500.00001\32445060.1 AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE 1. Parties and Date. This Amendment No 2 to the PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES is made and entered into as of this 24th day of August 2023, by and between the City of Palm Desert (“City”) and FG Creative, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services. 2.2 Amendment. The City and FG Creative entered into that Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. 2.3 Amendment. The City and FG Creative desire to amend the Agreement to establish compensation for the second year of the contract. The Parties have heretofore entered into that Amendment No. 1 dated May 11, 2023. 2.4 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section 3.9 (N) Amendment; Modification of the Agreement. 3. Terms. 3.1 3.6.A Compensation is hereby amended in its entirety to read as follows: Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Fifty Thousand Dollars ($250,000) without the written approval of the City Council or City Manager, as applicable. 3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference. 3.3 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. 3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 141 Contract No. C43370 Page 2 of 4 Revised 07-2023 BBK 72500.00001\32445060.1 they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2. 3.5 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. 3.6 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. [SIGNATURES ON FOLLOWING PAGE] DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 142 Contract No. C43370 Page 3 of 4 Revised 07-2023 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 to the Professional Consultant Services Agreement for Marketing Services 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 FG CREATIVE, A CORPORATION By: Its: CEO Printed Name: Stephanie Greene By: Its: CFO Printed Name: Stephanie Greene QC: MN Insurance: _____ Initial Review _____ Final Approval DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 143 Contract No. C43370 Page 4 of 4 Revised 07-2023 BBK 72500.00001\32445060.1 7. EXHIBIT “C” 7.1 COMPENSATION  The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2023 - June 30, 2024, at $250,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:  The CITY will pay FG CREATIVE a flat fee of $3,250 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.  FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.  FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.  FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract. 7.2 RENEWAL In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino- Ontario, CA. DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 144 Contract No. C43370 Page 1 of 3 Revised 08-2023 BBK 72500.00001\32445060.1 AMENDMENT NO. 3 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE 1.Parties and Date. This Amendment No. 3 to the made and entered into as of this 28th day of March 2024, by and between the City of Palm Desert (“City”) and FG CREATIVE, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services. 2.2 Amendment. The City and FG Creative entered into that Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023 2.3 Amendment. The City and FG Creative entered into Amendment 2. to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023. 2.4 Amendment. The City and FG Creative desire to amend the Agreement to increase compensation for second year of contract, July 1, 2023 through June 30, 2024. 2.5 Amendment Authority. This Amendment No. 3 is authorized pursuant to Section 3.9(N) Amendment; Modification of the Agreement. 3. Terms. 3.1 Section 3.6.A Compensation. Section 3.6.A of the Agreement is hereby amended in its entirety to read as follows: "NOW, THEREFORE, the Parties agree to amend the Contract as follows:" Section 3.6.A Compensation shall be amended to read: “Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Sixty-Five Thousand Dollars ($265,000.00) without written approval of the City Council or City Manager, as applicable.” 145 Contract No. C43370 Page 2 of 3 Revised 08-2023 BBK 72500.00001\32445060.1 3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference. 3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 3, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 3. From and after the date of this Amendment No. 3, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 3. 3.4 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. 3. 3.5 Severability. If any portion of this Amendment No. 3 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6 Counterparts. This Amendment No. 3 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] 146 Contract No. C43370 Page 3 of 3 Revised 08-2023 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 3 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 3 to the Professional Consultant Services Agreement for Marketing Services 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: Isra Shah Best Best & Krieger LLP FG CREATIVE, a Corporation By: Its: CEO Printed Name: By: Its: CFO Printed Name: QC: Insurance: _____ Initial Review _____ 147 148 Contract No. ___________ Page 1 of 4 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 4 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE 1. Parties and Date. This Amendment No. 4 to the made and entered into as of this 11th day of July 2024, by and between the City of Palm Desert (“City”) and FG CREATIVE, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services. 2.2 Amendment. The City and FG Creative entered into Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023 2.3 Amendment. The City and FG Creative entered into Amendment No. 2 to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023. 2.4 Amendment. The City and FG Creative entered into Amendment No. 3 to increase compensation for the period of July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 3 dated March 11, 2024. 2.5 Amendment. The City and FG Creative desire to amend the Agreement to establish compensation for the third year of the contract, July 1, 2024 through June 30, 2025. 2.6 Amendment Authority. This Amendment No. 4 is authorized pursuant to Section 3.9 (N) Amendment; Modification of the Agreement. 3. Terms. 3.1 3.6.A Compensation is hereby amended in its entirety to read as follows: Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Two Hundred Seventy-Five Thousand Dollars ($275,000) without the written approval of the City Council or City Manager, as applicable. 3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference. 3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 4. From and after the date of this Amendment No. 4, 149 Contract No. ___________ Page 2 of 4 Revised 01-2024 BBK 72500.00001\32445060.1 whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4. 3.4 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. 4. 3.5 Severability. If any portion of this Amendment No. 4 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6 Counterparts. This Amendment No. 4 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] 150 Contract No. ___________ Page 3 of 4 Revised 01-2024 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 4 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 4 to the Professional Consultant Services Agreement for Marketing Services 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: Isra Shah Best Best & Krieger LLP FG CREATIVE, a Corporation By: Stephanie Greene CEO By: Stephanie Greene CEO QC: Insurance: _____ Initial Review _____ Final Approval 151 Contract No. ___________ Page 4 of 4 Revised 01-2024 BBK 72500.00001\32445060.1 7. EXHIBIT “C” 7.1 COMPENSATION The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2024 - June 30, 2025, at $275,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows: • The CITY will pay FG CREATIVE a flat fee of $3,350 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical. • FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions. • FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert. • FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract. Fees $ 44,250 Branding $ 43,500 Advertising $ 104,400 Merchant Support $ 40,050 Community Partnerships $ 3,800 Activations/Events $ 39,000 $ 275,000 7.2 RENEWAL In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino Ontario, CA. 152 Contract No. C43370 Page 1 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 5 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE 1. Parties and Date. This Amendment No. 5 to the made and entered into as of this 11th day of March 2025, by and between the City of Palm Desert (“City”) and FG CREATIVE, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Agreement. The City and FG Creative have entered into an agreement entitled “Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022 (“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide Marketing Services. 2.2 Amendment. The City and FG Creative entered into Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023. 2.3 Amendment. The City and FG Creative entered into Amendment No. 2 to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023. 2.4 Amendment. The City and FG Creative entered into Amendment No. 3 to increase compensation for the period of, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 3 dated March 11, 2024. 2.5 Amendment. The City and FG Creative entered into Amendment No. 4 to establish compensation for the third year of the contract, July 1, 2024 through June 30, 2025. 2.6 Amendment. The City and FG Creative wish to amend the Agreement to increase the total compensation in recognition of expanded services to be provided during the remainder of the Agreement’s third term, covering the period from July 1, 2024, through June 30, 2025. 2.7 Amendment Authority. This Amendment No. 5 is authorized pursuant to Section 3.9 (N) Amendment; Modification of the Agreement. 3. Terms. 3.1 3.6.A Compensation is hereby amended in its entirety to read as follows: Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed Three Hundred Twenty-Five Thousand Dollars and no cents ($325,000) for fiscal year 2024-25 without the written approval of the City Council or City Manager, as applicable. 3.2 Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached hereto and incorporated herein by reference. Docusign Envelope ID: B3CDAF28-EC04-4E03-96E2-1E20D1E0D922 153 Contract No. C43370 Page 2 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 5, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 5. From and after the date of this Amendment No. 5, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 5. 3.4 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. 5. 3.5 Severability. If any portion of this Amendment No. 5 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6 Counterparts. This Amendment No. 5 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] Docusign Envelope ID: B3CDAF28-EC04-4E03-96E2-1E20D1E0D922 154 Contract No. C43370 Page 3 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 5 TO HE PROFESSIONAL CONSULTANT SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 5 to the Professional Consultant Services Agreement for Marketing Services as of the day and year first above written. CITY OF PALM DESERT By: Chris Escobedo Interim City Manager Attest: By: Anthony J. Mejia City Clerk Approved as to form: By: Isra Shah Best Best & Krieger LLP City Attorney FG CREATIVE, A LIMITED LIABILITY COMPANY By: Stephanie Greene CEO and CFO City Clerk QC: MN Contract QC: _____ Insurance: _____ Initial Review _____ Final Approval Docusign Envelope ID: B3CDAF28-EC04-4E03-96E2-1E20D1E0D922 155 Contract No. C43370 Page 4 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 7. EXHIBIT “C” 7.1 COMPENSATION The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2024 - June 30, 2025, at $325,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:  The CITY will pay FG CREATIVE a flat fee of $3,350 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical.  FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions.  FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services work ed on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert.  FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract. Item Amount Palm Springs Life Print Ads $ 8,790 Advertising Support for Art Walk $ 10,300 Desert Plein Air Festival Sponsorship $ 5,000 Thermal Indy Car Event Program Ad $ 3,000 Desert X Program Ad $ 3,500 Bandwango Program Activation $ 15,000 Contingency Budget $ 4,410 Total $ 50,000 Docusign Envelope ID: B3CDAF28-EC04-4E03-96E2-1E20D1E0D922 156 Contract No. C43370 Page 5 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 7.2 RENEWAL In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino Ontario, CA. Docusign Envelope ID: B3CDAF28-EC04-4E03-96E2-1E20D1E0D922 157 158 Contract No. C43370 AMENDMENT NO. 6 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE INC This Amendment No.6 (“Amendment”) to the is made and entered into as of this 1st day of JULY, 2025 by and between the City of Palm Desert, a municipal corporation organized and operating under the laws of the State of California (“City”), and FG CREATIVE INC, a Corporation with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, California, 92241 Vendor. City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties.” 2. Recitals. The Parties entered into an agreement titled PROFESSIONAL SERVICES AGREEMENT. Dated 6/23/2022 (“Agreement”). Amendment Authority. This Amendment is authorized pursuant to Section N of the Agreement. 3. Terms. Amendment. The Agreement is hereby amended as follows: 3.2.A Term. terminated as provided herein. The City should have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more that (1) additional one- year terms. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.6.A Compensation. Services rendered under this Agreement at the rates set forth in Exhibit "C" attached exceed Two Hundred Fifty Thousand Dollars ($250,000) for fiscal Year 2025- 2026 without the written approval of the City Council or City Manager, as applicable. Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment. 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. Severability. If any portion of this Amendment is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. Counterparts. This Amendment 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] Docusign Envelope ID: 43A9F01D-F3C4-4233-8F91-0C8CF99F4E41 159 Contract No. C43370 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE INC DBA IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. Clerk QC: ________ Contracts QC: ________ Insurance: __________ Initial Review ___________ Final Approval CITY OF PALM DESERT By: Chris Escobedo Interim City Manager Attest: By: Anthony J. Mejia City Clerk Approved as to form: By: Isra Shah City Attorney By: Stephanie Greene CEO and CFO Docusign Envelope ID: 43A9F01D-F3C4-4233-8F91-0C8CF99F4E41 160 Contract No. C43370 1 Rev 09-25 72500.00001\44340560.1 AMENDMENT NO. 7 TO THE PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE INC 1. Parties and Date. This Amendment No. 7 (“Amendment”) to the Professional Services Agreement, Contract No.7, is made and entered into on February 9, 2026, by and between the City of Palm Desert, a municipal corporation organized under the laws of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, 92260- 2578 (“City”) and FG CREATIVE INC, a Corporation, with its principal place of business at 19725 Driscoll Road, Desert Hot Springs, California, 92241 (“Vendor”). City and Vendor are sometimes individually referred to as “Party” and collectively as “Parties.” 1.1 City Council Approval. On February 26, 2026, City Council approved the award of this Amendment to Vendor named above. 2. Recitals. 2.1 Agreement. The City and Consultant entered into a Professional Services Agreement (“Agreement”) on June 23, 2022, for the purpose of retaining the services of Consultant for the purpose of retaining the services of FG Creative to provide Marketing Services on the El Paseo Parking and Business Improvement District. (“Project”). 2.2 Background. The parties previously entered into a previous amendment, on June 30, 2026. The purpose of this amendment is to renew the agreement and to establish compensation for Fiscal Year 2025/2026. 2.3 Amendment Authority. This Amendment is authorized pursuant to Section 3.6.14 of the Agreement. 2.4 The purpose of this Amendment No. 7 is to increase the total compensation in recognition of expanded services to be provided during the remainder of the Agreement’s third term, covering the period from July 1, 2025, through June 30, 2026. 3. Terms. The Agreement is hereby amended as follows: reference. The total compensation shall not exceed Three Hundred Twenty-Five Thousand Dollars ($325 161 Contract No. C43370 2 Rev 09-25 72500.00001\44340560.1 3.1 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” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 7. 3.2 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. [SIGNATURES ON FOLLOWING PAGE] 162 Contract No. C43370 3 Rev 09-25 72500.00001\44340560.1 SIGNATURE PAGE FOR AMENDMENT NO. 7 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE INC CITY OF PALM DESERT Chris Escobedo City Manager Attest: Anthony J. Mejia City Clerk Approved to form by: ____________________________ Isra Shah City Attorney FG CREATIVE, A CORPORATION ____________________________ Stephanie Greene CEO and CFO Bonds 163 Contract No. C43370 4 Rev 09-25 72500.00001\44340560.1 7. EXHIBIT “C” 7.1 COMPENSATION The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and events is established as part of the CITY's fiscal year budget for the period of July 1, 2025 - June 30, 2026, at $325,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust the amount budgeted for advertising and promotion services. Prior to performing any services or furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for their services, the manner of payment (lump sum or periodic progress payments), the description and estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows: • The CITY will pay FG CREATIVE a flat fee of $3,350 per month to cover advertising services in accordance with the proposal presented by FG CREATIVE as attached in the Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto. The fee covers not less than 40 hours per month; such services include, but are not limited to, meetings, account planning and service, production management, media planning and buying, and clerical. • FG CREATIVE will purchase media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or receive commissions. • FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation of reimbursable costs and expenses. Payment and reimbursements provided for in this in Section 4 will be made in due course by the City of Palm Desert. • FG CREATIVE shall keep full and accurate books of account and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Contract. 7.2 RENEWAL In the event that this Agreement is renewed pursuant to the Section titled "Term," the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Riverside-San Bernardino Ontario, CA. 164 CITY OF PALM DESERT CITY MANAGER’S OFFICE INTEROFFICE MEMORANDUM Date: February 26, 2026 To: Honorable Mayor and Councilmembers From: Anthony J. Mejia, City Clerk Subject: City Council Meeting of February 26, 2026 Below you will find questions received from the Mayor or Councilmembers and answers provided by City staff regarding tonight’s City Council meeting: REGULAR MEETING ITEM 131: APPROVE A FISCAL YEAR 2025/26 EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT MID-YEAR BUDGET ADJUSTMENT AND AMEND THE FG CREATIVE MARKETING SERVICES CONTRACT Q1: What's the annual amount collected by the El Paseo Bid? How much is on hand, and what can it be used for? A1: The El Paseo Parking and Business Improvement District (EPPBID) is funded through annual business assessments levied on merchants based on gross sales. Because assessment revenues fluctuate from year to year, the Board adopts a conservative baseline budget using the average revenue from recent years along with available fund balance, while maintaining a cash reserve of approximately $80,000 to ensure financial stability. The average annual assessment revenue is currently about $275,000. The EPPBID’s current cash balance is approximately $175,000. These funds are restricted for activities that benefit the district and are available to the Board to advance its mission of promoting El Paseo as a world-class, pedestrian-friendly, upscale shopping and dining destination. In practice, this primarily includes marketing, advertising, and promotional efforts designed to attract visitors and customers to the district. 165 166 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Martin Alvarez, Director of Economic Development SUBJECT: EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE CITY AND THE CLUB MCC (MARRAKESH COUNTRY CLUB) FOR PROPERTY KNOWN AS THE HAYSTACK/PORTOLA SITE RECOMMENDATION: 1. Authorize the City Manager to execute a six-month Exclusive Negotiation Agreement (ENA) between the City and The Club MCC (Marrakesh Country Club) for property located at the northwest corner of Portola Avenue and Haystack Way, and to execute any related documents necessary to effectuate this action. 2. Authorize the City Attorney to make any necessary non-monetary changes to the ENA. BACKGROUND/ANALYSIS: The City of Palm Desert owns a 1.24-acre undeveloped property located at the northwest corner of Portola Avenue and Haystack Way, adjacent to Marrakesh Country Club . The property was acquired in 2006 from the Coachella Valley Water Dist rict to preserve open space adjacent to the existing Haystack storm drain channel. The property was recently subdivided into two parcels: the eastern 0.91-acre parcel is proposed for sale, while the western 0.33 -acre parcel is proposed for retention by the City as open space. Surplus Land Act and Disposition: To facilitate the disposition of the site, the Property is subject to the requirements of the California Surplus Land Act (SLA), administered by the California Department of Housing and Community Development (HCD). The SLA requires appropriate notice, the first right of refusal to affordable housing developers, engagement with eligible entities, and documentation of proposals received. A 60-day Notice of Availability for the Property was issued on March 12, 2025. No affordable housing proposals were submitted, and staff subsequently obtained a Notice of Determination from HCD allowing the City to proceed with the sale of the property, contingent upon recording a covenant on the property title requiring that any future housing development of 10 or more units include a minimum of 15 percent affordable housing. Exclusive Negotiation Agreement: Staff was contacted by the Marrakesh Country Club Homeowners Association (HOA) with a proposal to acquire the property at the appraised value of $210,000. The HOA is requesting approval of a six-month Exclusive Negotiation Agreement (ENA) to evaluate the feasibility of developing additional recreational amenities and open space. 167 City of Palm Desert Haystack/Portola Site Exclusive Negotiation Agreement Page 2 of 2 The proposed six-month ENA would allow the Marrakesh HOA to:  Conduct property due diligence  Prepare a conceptual site plan for review by the HOA Board and membership  Negotiate and Purchase and Sale Agreement, including a project schedule for entitlements and close of escrow Staff recommends approval of the six-month ENA, with an option for a six-month extension at the City Manager’s discretion if needed to facilitate the sale of the property. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no fiscal impact to the City with the execution of this ENA. ATTACHMENTS: 1. Property Site Map 2. Marrakesh Correspondence 3. Exclusive Negotiation Agreement CONFLICT OF INTEREST AWARENESS CHECKLIST: ☒ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☒ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Marrakesh HOA, Ashley Varela, Kent Stone Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 168 PO R T O L A A V E N U E MARR A K E S H D R I V E RAB A T D R I V E MAR O C D R I V E HAYSTACK R O A D APN: 630-250-052 City Owned ± Vicinity Map SLA 0.33 Acres 0.95 Acres 169 170 171 172 1 EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT THIS EXCLUSIVE NEGOTIATING RIGHTS AGREEMENT (this “Agreement”) is entered into effective as of February 26, 2026 (“Effective Date”) by and between the City of Palm Desert, a California charter city (“City”) and Marrakesh Country Club, a California non-profit mutual benefit corporation (“MCC”). City and Homeowner’s Association are hereinafter referred to collectively as the “Parties.” R E C I T A L S A. The City is the owner of certain real property constituting approximately 0.91 acres, located within the City limits located on the West Side of Portola Avenue and North of Haystack Road, identified as Riverside County Assessor Parcel Number 630-250-052, as more particularly described in Exhibit A attached hereto (the “Property”). The Property is vacant, unimproved land. B. The City has fulfilled its obligations under the Surplus Land Act, and based on subsequent outreach, selected the MCC as the entity with which to enter into exclusive negotiations for the disposition of the Property. C. MCC has proposed acquiring the property to develop ancillary uses to the MCC. D. The purpose of this Agreement is to establish the procedures and standards for the negotiation of a potential Purchase and Sale Agreement (“PSA”) that would address: (i) the disposition of the Property facilitated by the City, to the MCC, and (ii) MCC’s development of the Property as a recreation and event lawn, garden a nd / or pickleball courts (the “Project”). As more fully set forth below, this Agreement in itself does not obligate the City or the MCC to execute a PSA, or obligate the City to convey the Property, or any portion thereof, to MCC, nor does it grant MCC the right to develop the Project on the Property. A G R E E M E N T NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Incorporation of Recitals. The Recitals set forth above, and all defined terms set forth in such Recitals and in the introductory paragraph preceding the Recitals, are hereby incorporated into this Agreement as though set forth in full. 2. Good Faith Efforts to Negotiate. The Parties shall use their best efforts to negotiate a PSA that will describe the terms and conditions governing the conveyance of the Property by the City to MCC, or an Affiliate (as defined below) of MCC approved by the City, and the development of a Project on the Property by an Affiliate of the MCC, 173 2 approved by the City. The Parties shall diligently and in good faith pursue such negotiations. This Agreement does not impose a binding obligation on the City to convey any portion of, or interest in, the Property to MCC, nor does it obligate City to grant any approvals or authorizations required for a Project (including the PSA). Without limiting the generality of the foregoing, MCC expressly acknowledges that any agreement(s) resulting from the negotiations contemplated hereby shall become effective only if the conveyance agreement is approved by the City Council following compliance with all applicable notice and hearing requirements of the City and compliance with all other applicable requirements of law, including without limitation the California Environmental Quality Act (“CEQA”). As used in this Agreement, an “Affiliate” of a person or entity shall mean an entity controlling, controlled by, or under common control with such person or entity, and shall include, but shall not be limited to Marrakesh Community Association or a limited partnership in which the MCC is a member of a general partner of such limited partnership. The term “control” as used in the immediately preceding sentence shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the entity in question, whether through ownership, voting securities, contract, or otherwise. 3. MCC’s Exclusive Right to Negotiate with City. City agrees that it will not, during the Term of this Agreement (as defined below), directly or indirectly, through any officer, employee, agent, or otherwise, solicit, initiate or encourage the submission of bids, offers or proposals by any person or entity with respect to the acquisition of any interest in the Property or the development of the Property, and City shall not engage any broker, financial adviser or consultant to initiate or encourage proposals or offers from other parties with respect to the disposition or development of the Property or any portion thereof. Furthermore, City shall not, directly or indirectly, through any officer, employee, agent or otherwise, engage in negotiations concerning any such transaction with, or provide information to, any person other than MCC and its representatives with a view to engaging, or preparing to engage, that person with respect to the disposition or development of the Property or any portion thereof. The parties further agree and acknowledge that the City shall not facilitate the disposition or transfer of the Property to any third party during the Term. 4. Term. The Term shall commence on the Effective Date, and shall terminate six (6) months thereafter, unless extended or earlier termin ated as provided herein (the “Term”). The Term may be extended for up to a maximum of one hundred eighty (180) additional days upon the mutual written agreement of MCC and City’s City Manager if the City Manager determines in his sole and absolute discret ion that the Parties have made substantial progress in their negotiations to merit such extension. The Parties may, with City Manager approval, agree to additional extensions. If a PSA has not been executed by the City and MCC (or an entity related to MCC and reasonably approved by the City) by the expiration of the Term (as the Term may have been extended pursuant to this Section), then this Agreement shall terminate, and neither Party shall have any further rights or obligations under this Agreement except such rights and obligations that expressly survive termination. If a PSA is executed by the City and the MCC (or an Affiliate of MCC approved by the City), this Agreement shall 174 3 thereupon terminate, and all rights and obligations of the Parties shall be as set forth in the executed PSA. 5. Good Faith Deposit. In consideration for this Agreement, MCC has, prior to City’s execution of this Agreement, provided to City a cash deposit in the amount of Five Thousand and 00/100 Dollars ($5,000.00) (the “Good Faith Deposit”). During the Term, City shall invest the Good Faith Deposit for purposes of earning interest thereon. If the Parties enter into a PSA, the Good Faith Deposit shall be disposed of as specified in the PSA. If this Agreement is terminated without execution of a PSA for any reason, then the Good Faith Deposit and any interest earned thereon, less any amounts expended to reimburse City for City Costs as provided in Section 6 below, shall be refunded promptly to MCC. If this Agreement is terminated as a result of an Event of Default, then the Good Faith Deposit and any interest earned thereon shall be disposed of as more fully provided in Section 12.4. If at any time prior to the Parties entering into a PSA, City Costs (as defined in Section 6) are incurred in an aggregate amount that equals or exceeds the amount of the original Good Faith Deposit, the MCC shall replenish the Good Faith Deposit with the amount necessary to cover the City Costs, and no further City Costs shall be expended until MCC provides City with a cash deposit to cover the amount of the City Costs. If MCC declines to provide such additional cash, within fifteen (15) business days of request therefore from the City, the City may elect to terminate this Agreement, and neither Party shall have any further rights or obligations under this Agreement except such rights and obligations that expressly survive termination. 6. Costs and Expenses. City shall be entitled to draw upon the Good Faith Deposit and apply such draws to reasonable expenses incurred by the City during the Term. The Good Faith Deposit may be used to cover costs that City incurs in connection with the proposed Project and negotiation with MCC regarding agreements for development of the Property. Expenses shall be limited to third party vendors including without limitation, expenses incurred for financial feasibility studies, design analyses, appraisals, environmental analyses, title examination, reasonable legal fees, and consulting fees (collectively, “City Costs”). City shall notify MCC monthly in writing of the amount drawn by City to pay City Costs. The notice shall include copies of all invoices paid and accounting details from the Good Faith Deposit. 7. Termination. 7.1 Termination by Mutual Agreement. This Agreement may be terminated at any time by the mutual written consent of the Parties. In the event of such termination, subject to Section 7.4, neither Party shall have any further rights against or liability to the other under this Agreement. 7.2 Termination by City for Cause. City shall have the right to terminate this Agreement upon City’s good faith reasonable determination that MCC is not negotiating diligently and in good faith. City shall exercise such right by delivering not le ss than ten (10) business days’ advance written notice to MCC describing the nature of MCC’s default and the termination date. If MCC does not commence to cure the default and 175 4 resume negotiations in good faith within such ten (10) business day period, as applicable, City may terminate this Agreement effective as of the termination date stated in the notice. In the event of termination by the City pursuant to this Section 7.2, subject to Section 7.4, neither Party shall have any further rights against or liability to the other under this Agreement. 7.3 Termination by MCC. MCC shall have the right to terminate this Agreement upon MCC’s good faith reasonable determination that City is not negotiating diligently and in good faith. MCC shall exercise such right by delivering not less than ten (10) business days’ advance written notice to City describing the nature of City’s default and the termination date. If City does not commence to cure the default and resume negotiations in good faith within such ten (10) business day period, MCC may terminate this Agreement effective as of the termination date stated in the notice. In addition, MCC shall have the right to terminate this Agreement, effective upon ten (10) days’ written notice to City, if MCC determines, in the exercise of MCC’s sole discretion, that the results of MCC’s investigation of the Property are unsatisfactory with respect to MCC’s desired development activities or if MCC is unable to obtain other necessary approvals, rights or interests. In the event of termination by the MCC pursuant to this Section 7.3, subject to Section 7.4, neither Party shall have any further rights against or liability to the other under this Agreement. Notwithstanding anything to the contrary contained herein, in the event MCC chooses to terminate this Agreement as the result of an uncured material default by the City where the City has acted in bad faith, the MCC shall be entitled to seek reimbursement of the Good Faith Deposit and any additions made by MCC or its Affiliate to the Good Faith Deposit prior to the date of the termination of this Agreement. 7.4 Effect of Termination. Upon the expiration of the Term as such may be extended, or upon the earlier termination of this Agreement, without the Parties havi ng successfully negotiated and executed a PSA, this Agreement shall forthwith be void, and there shall be no further liability or obligation on the part of either of the Parties or their respective officers, employees, agents or other representatives; provided however, the provisions of Section 9.1 (Studies), Section 9.2 (Access; Indemnity), Section 10 (Confidentiality), Section 12.4 (Liquidated Damages), and Section 14.7 (Indemnification) shall survive such termination. In no event shall either Party have the right to seek an award of damages as a result of the termination of this Agreement. 8. Compliance with CEQA. The Parties acknowledge that the Project description set forth in this Agreement is preliminary in nature and shall be described in furthe r detail in the PSA to be negotiated during the Term. The Parties acknowledge that development of the Property for the Project will require the grant of discretionary land use entitlements subject to the City’s normal review and approval process, that the Project must comply with CEQA, and that nothing in this Agreement is intended to or shall be interpreted as the grant of any approvals for development of the Project or the Property, or the modification or waiver of any City procedures or requirements. Without limiting the foregoing, the Parties acknowledge that the City retains discretion to (i) require modification of the Project as City may, in its discretion, determine to be reasonably necessary to comply with CEQA, (ii) select other feasible alternative and/or 176 5 impose mitigation measures to avoid or minimize significant environmental impacts; (iii) balance the benefits of the Project against any significant environmental impacts prior to taking final action, if such impacts cannot otherwise be avoide d; and/or (iv) determine not to proceed with the Project. The Parties acknowledge that nothing in this Agreement shall be deemed a commitment by the City to facilitate the City to enter into an agreement for conveyance of any interest in the Property or for the development of the Project. In addition, the Parties acknowledge that the final form of any agreement governing the development of the Property may contain matters not covered in this Agreement, and the provisions herein are not intended to exclude or preclude any other issues that may arise during negotiations. MCC acknowledges that the Project must be evaluated under CEQA, as required by the terms of the City’s approval of the PSA. If City determines that CEQA compliance requires preparation of either a Mitigated Negative Declaration (“MND”) or an Environmental Impact Report (“EIR”) for the Project, then i) MCC will select the consultant for preparation of the MND/EIR, subject to the City’s reasonable approval; and ii) Developer will pay City’s costs for environmental review, including the cost of City’s MND/EIR consultant. MCC’s obligation to pay such costs shall be in addition to MCC’s obligation to pay City expenses pursuant to Section 6. MCC further acknowledges that the City owns the fee interest in the Property and the disposition of the Property is subject to the approval of the City Council. 9. Developer’s Studies; Right of Access; Deliverables. 9.1 MCC’s Studies. During the Term of this Agreement, MCC may prepare, at MCC’s sole expense, any studies, surveys, plans, specifications and reports (“MCC’s Studies”) MCC deems necessary or desirable in MCC’s sole discretion, to determine the suitability of the Property for the Project. Such studies may include, without limitation, title investigation, relocation analyses, marketing, feasibility, soils, seismic and environmental studies, financial feasibility analyses, and design studies. MCC shall provide to City without representation or warranty, copies of all reports, test result s, studies, analyses, cost estimates, and documents prepared by third -party consultants for or commissioned by MCC with respect to the Project or the Property within ten (10) business days following their completion; provided however, MCC shall not be obli gated to provide proprietary or financial information. MCC agrees to include in all contracts for the preparation of any of MCC’s Studies a provision that will permit City to have the right to use and rely upon each study and report. MCC’s obligation to provide reports and studies pursuant to this Section 9.1 shall survive the expiration or earlier termination of this Agreement. The City shall promptly deliver to MCC, upon MCC’s request, existing written information and plans regarding the Property in the City’s possession or immediate control. 9.2 Right of Access. City will use best efforts to procure from the City, concurrent with the execution of this Agreement, sufficient rights for MCC, including its 177 6 employees, agents, assigns and contractors, to reasonably access the Property for the purposes of inspection, environmental assessments, soils testing, and similar work. MCC shall be responsible for obtaining any additional rights of access to the Property from third parties that may be necessary to prepare MCC’s Studies. The City may impose reasonable limitations on access to the Property and may require MCC to provide the City with proof of insurance in compliance with the City’s requirements prior to performance of studies on the Property. The City’s advanced written approval shall be required for any invasive testing. MCC agrees that unless the City agrees otherwise in writing, MCC shall repair, restore, and return the Property and all improvements located thereon to their condition immediately prior to any such testing at MCC’s sole cost and expense, excluding ordinary wear and tear or damage or destruction by acts of God. MCC shall at all times keep the Property free and clear of all liens and encumbrances related to MCC’s inspection activities on the Property or otherwise within MCC’s control. MCC shall indemnify, defend, and hold the City and their respective elected and appointed officers, officials, employees, consultants, agents and representatives (collectively, the “Indemnitees”) harmless from and against all liability, loss, cost, claim, demand, action, suit, legal or administrative proceeding, penalty, deficiency, fine, damage and expense (including without limitation reasonably attorney’s fees and of litigation) (all of the foregoing, collectively “Claims”) arising out of MCC’s and MCC’s agents, employees, consultants, representatives and contractor’s entry on the Property or otherwise arising out of the exercise of this right of access granted to MCC hereunder, provided that MCC shall have no obligation related to Claims resulting from the Indemnitees’ gross negligence or willful misconduct, or MCC’s mere discovery of information regarding the Property, or a pre-existing condition on the Property, as long as none of MCC’s or MCC’s agents, employees, consultants, representatives and contractor’s actions or omissions cause an exacerbation of such pre-existing condition. MCC’s defense and indemnity obligations pursuant to this Section 9.2 shall survive the expiration or earlier termination of this Agreement. 9.3 Deliverables. MCC shall provide to City the deliverables identified in Exhibit B, attached hereto and incorporated herein by reference, consistent with the schedule set forth in Exhibit B, unless such other dates are agreed to in writing by MCC and City Manager. 10. Confidentiality of Information. While desiring to preserve its rights with respect to treatment of certain information on a confidential or proprietary basis, MCC acknowledges that City will need sufficient, detailed information about the proposed Project to make informed decisions about the content and approval of the PSA. City will work with MCC to maintain the confidentiality of proprietary information subject to the requirements imposed on City by the Public Records Act (Government Code Section 6250 et seq.). MCC acknowledges that City may share information provided by MCC of a financial and potential proprietary nature with third party consultants who have been contractually engaged to advise City concerning matters related to this Agreement and/or the PSA and to City Council members as part of the negotiation and decision- making process. If this Agreement is terminated without the execution of a PSA, City 178 7 shall return to MCC any confidential information subm itted by MCC under this Agreement. If any litigation is filed seeking to make public any information MCC submitted to City in confidence, City and MCC shall cooperate in defending the litigation if MCC elects not to make public the information in question . MCC shall pay City's reasonable costs of defending such litigation if MCC elects not to make public the information in question and shall indemnify City against all costs and reasonable attorneys’ fees awarded to the plaintiff in any such litigation. 11. Execution of Definitive Agreement. The City shall have no legal obligation to grant any approvals or authorizations for the Project prior to City approval of the Project and related agreements following compliance with CEQA and all other applicable requirements of law. 12. Defaults and Remedies. 12.1 Default. In the event either Party breaches its obligations under this Agreement, the non-defaulting Party shall give written notice of a default to the defaulting Party specifying the nature of the default and the required action to cure the default. If a default remains uncured ten (10) days for monetary defaults and twenty (20) days for nonmonetary defaults (subject to such longer period as may be reasonably necessary so long as the defaulting party has commenced a cure within such twenty (20) day period and is diligently prosecuting such cure to completion) after receipt by the defaulting Party of such notice, the non-defaulting Party may exercise the remedies set forth in Subsections 12.2, 12.3, and 12.4 below, as applicable. 12.2 Remedies for City Default. In the event of an uncured default by City hereunder, MCC’s sole remedy shall be to terminate this Agreement and to seek reimbursement in accordance with Section 7.3. Upon such termination, MCC sha ll be entitled to repayment of the remaining Good Faith Deposit and any interest earned thereon, as further provided in Section 5 and, neither Party shall have any further right, remedy or obligation under this Agreement; provided however, any obligation u nder a specific provision of this Agreement for a Party to pay or reimburse the other Party for a cost or to provide indemnity and defense shall survive such termination. Except as expressly provided herein, neither Party shall have any liability to the o ther for damages or otherwise for any default, nor shall either Party have any other claims with respect to performance under this Agreement. Each Party specifically waives and releases any such rights or claims they may otherwise have at law or in equity. 12.3 Remedies for MCC Default. In the event of an uncured default by MCC, City's sole remedy shall be to terminate this Agreement and to retain the Good Faith Deposit and any interest earned thereon as further set forth in Subsection 12.4 below. Following such termination, neither Party shall have any right, remedy or obligation under this Agreement; provided however, any obligation under a specific provision of this Agreement for a Party to pay or reimburse the other Party for a cost or to provide indemnity and defense shall survive such termination. 12.4 Liquidated Damages. IN THE EVENT OF TERMINATION DUE TO MCC'S DEFAULT AS DESCRIBED IN THIS SECTION 12 ABOVE, SUBJECT TO ALL 179 8 APPLICABLE NOTICE AND CURE PERIODS, THE GOOD FAITH DEPOSIT (OR, AS APPLICABLE, SUCH PORTION THEREOF WHICH HAS NOT BE DRAWN AGAINST BY THE CITY FOR CITY COSTS) MAY BE RETAINED BY CITY AS LIQUIDATED DAMAGES AND AS ITS PROPERTY WITHOUT ANY DEDUCTION, OFFSET OR RECOUPMENT WHATSOEVER. THE PARTIES AGREE THAT THE DAMAGES SUFFERED BY CITY BY REASON OF A MCC DEFAULT WOULD BE UNCERTAIN AND THAT SUCH DAMAGES WOULD INVOLVE SUCH VARIABLE FACTORS AS THE CONSIDERATION THAT ANOTHER PARTY WOULD PAY FOR THE PROPERTY; THE EXPENSES OF CONTINUING THE OWNERSHIP AND CONTROL OF THE PROPERTY AND OF IDENTIFYING OTHER INTERESTED PARTIES AND NEGOTIATING WITH SUCH PARTIES; POSTPONEMENT OF TAX REVENUES TO THE COMMUNITY; AND THE FAILURE OF CITY TO EFFECT ITS PURPOSES AND OBJECTIVES WITHIN A REASONABLE TIME, RESULTING IN ADDITIONAL IMMEASURABLE DAMAGE AND LOSS TO CITY. IT IS IMPRACTICABLE AND EXTREMELY DIFFICULT TO FIX THE AMOUNT OF SUCH DAMAGES TO CITY, BUT THE PARTIES ARE OF THE OPINION, UPON THE BASIS OF ALL INFORMATION AVAILABLE TO THEM, THAT SUCH DAMAGES WOULD APPROXIMATELY EQUAL THE AMOUNT OF THE GOOD FAITH DEPOSIT HELD BY CITY AT THE TIME OF THE DEFAULT OF MCC, AND THE AMOUNT OF SUCH GOOD FAITH DEPOSIT SHALL BE PAID TO CITY UPON ANY SUCH OCCURRENCE AS THE TOTAL OF ALL LIQUIDATED DAMAGES FOR ANY AND ALL SUCH DEFAULTS AND NOT AS A PENALTY. IN THE EVENT THAT THIS PARAGRAPH SHOULD BE HELD TO BE VOID FOR ANY REASON, CITY SHALL BE ENTITLED TO THE FULL EXTENT OF DAMAGES OTHERWISE PROVIDED BY LAW. MCC AND CITY SPECIFICALLY ACKNOWLEDGE THIS LIQUIDATED DAMAGES PROVISION BY THEIR SIGNATURES HERE: MCC: 13. City Rights Following Expiration or Termination . Following expiration or termination of this Agreement, unless a PSA is executed by the Parties, City shall have the absolute right to pursue facilitation of the disposition and development of the Property in any manner and with any party or parties it deems appropriate; provided, however, nothing herein shall be deemed to preclude or disqualify MCC from responding to future requests for qualifications and/or proposals, if any, that City ma y publicly issue to qualified firms with respect to development of the Property. 14. Miscellaneous. 14.1 Assignment. The qualifications and identity of MCC are of particular concern to City. It is because of those unique qualifications and identity that City has entered into this Agreement with MCC. Accordingly, except as provided below, MCC may not assign its rights under this Agreement to any other person or entity, without the prior written approval of City. Any purported voluntary or involuntary assignment of MCC’s exclusive negotiation rights without such City written approval shall be null and void. Notwithstanding the foregoing, MCC may assign its rights under this Agreement to its Affiliate, Marrakesh Community Association, or to a limited liability company or 180 9 partnership in which MCC or an affiliated entity: (a) is a managing member or general partner; (b) is responsible for managing the day-to-day entitlement and development activities of such entity; and (c) has a controlling interest in such entity, or to a tax credit partnership formed for the Project. 14.2 Notices. Except as otherwise specified in this Agreement, all notices to be sent pursuant to this Agreement shall be made in writing and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other partie s in accordance with this Section. All such notices shall be sent by: (i) personal delivery, in which case notice is effective upon delivery; (ii) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered on receipt if delivery is confirmed by a return receipt; or (iii) nationally recognized overnight courier, with charges prepaid or charged to the sender’s account, in which case notice is effective on delivery if delivery is confirmed by the delivery service. In addition, notice may be provided by electronic transmission (email), as long as notice is also sent via (i), (ii) or (iii) above. If notice is sent via electronic transmission (email), notice shall be deemed delivered upon transmittal. Any notice given by email shall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient’s time or on a non-business day. City: City of Palm Desert Attn: Martin Alvarez, Director of Economic Development 73510 Fred Waring Drive Palm Desert, California 92260 Telephone: (760) 776-6467 Email: malvarez@palmdesert.gov With copy to: Best Best & Krieger LLP Attention: Isra Shah, City Attorney 74-760 HWY 111, Suite 100 Indian Wells, California, 92210 Telephone: (949) 263-6569 Email: isra.shah@bbklaw.com MCC: Marrakesh Country Club Attention: Ashley Varela, General Manager 47-000 Marrakesh Drive Palm Desert, California, 92260 Telephone: (760)568-2688 Email: Ashley@marrakeshcountryclub.com 181 10 14.3 No Commissions. Each Party represents and warrants that it has not entered into any agreement, and has no obligation, to pay any real estate commission in connection with the transaction contemplated by this Agreement. If a real estate commission is claimed through either Party in connection with the transaction contemplated by this Agreement or any resulting PSA, then the Party through whom the commission is claimed shall indemnify, defend and hold the other Party harmless from any liability related to such commission. The provisions of this Paragraph shall survive termination of this Agreement. 14.4 Relationship of the Parties. The Parties agree that nothing in this Agreement shall be deemed or interpreted to create between them the relationship of lessor and lessee, of buyer and seller, or of partners or joint venturers. 14.5 Authority; Disclosure. MCC warrants that none of its principals, officers, partners, joint venturers, employees, associates, or affiliates who have any economic interest in this Agreement or the contemplated development of the Property or the Project, have a familial, financial, or other material relationship with any elected or appointed official or employee of the City. Each person executing this Agreement on behalf of MCC does hereby covenant and warrant that (a) MCC is created and validly existing under the laws of California, (b) MCC has and is duly qualified to do business in California, (c) MCC has full corporate power and authority to enter into this Agreement and to perform all of MCC’s obligations hereunder, and (d) each person (and all of the persons if more than one signs) signing this Agreement on behalf of MCC is duly and validly authorized to do so. Each person executing this Agreement on behalf of City does hereby covenant and warrant that (a) City has full power and authority to enter into this Agreement and to perform all of City’s obligations hereunder, and (b) each person (and all of the persons if more than one signs) signing this Agreement on behalf of City is duly and validly authorized to do so. 14.6 Waiver of Lis Pendens. It is expressly understood and agreed by the Parties that no lis pendens shall be filed against any portion of the Property with respect to this Agreement or any dispute or act arising from this Agreement. This Section shall survive the expiration of termination of this Agreement. 14.7 Indemnification. MCC hereby covenants, on behalf of itself and its permitted successors and assigns, to indemnify, hold harmless and defend the Indemnitees (defined in Section 9) from and against all Claims (defined in Section 9) arising out of or in connection with the negligent actions of MCC or MCC’s agents, employees, officers, representatives, contractors or consultants pursuant to, and during the Term of this Agreement; provided however, MCC shall have no indemnification obligation with respect to the gross negligence or willful misconduct of any Indemnitee. This Section shall survive the expiration or earlier termination of this Agreement. 14.8 Severability. If any term or provision of this Agreement or the application thereof shall, to any extent, be held by a court of competent jurisdiction to be invalid or unenforceable, such term or provision shall be ineffective to the extent of such invalidity or unenforceability without invalidating or rendering unenforceable the remaining terms 182 11 and provisions of this Agreement or the application of such terms and provisions to circumstances other than those as to which it is held invalid or unenforceable unless an essential purpose of this Agreement would be defeated by loss of the invalid or unenforceable provision. 14.9 Entire Agreement. This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements and understandings, oral or written, between the Parties with respect to such subject matter. 14.10 Amendments. This Agreement may be amended only by a written instrument executed by the Parties or their permitted successors in intere st. 14.11 Successors and Assigns; No Third-Party Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective permitted successors and assigns; provided however, that except as expressly permitted by this Agreement, neither Party shall transfer or assign any of such Party’s rights hereunder by operation of law or otherwise without the prior written consent of the other Party, and any such transfer or assignment without such consent shall be void. Subject to the immediately preceding sentence, this Agreement is not intended to benefit and shall not run to the benefit of or be enforceable by, any other person or entity other than the Parties and their permitted successors and assigns. 14.12 Captions; Interpretation. This Agreement shall be interpreted as though prepared jointly by the Parties. Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or any of its terms. 14.13 Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to conflicts of laws principles. Venue for any action under this Agreement shall be in Los Angeles County, California. 14.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. [signatures on following page] 183 12 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF PALM DESERT, a California charter city By: __________________________ Chris Escobedo City Manager Attest: By: __________________________ Anthony J. Mejia City Clerk APPROVED AS TO FORM: By: __________________________ Isra Shah City Attorney [signatures continue on following page] 184 13 MCC: MARRAKESH COUNTRY CLUB, a California corporation By: __________________________ Kent Stone President 185 14 Exhibit A LEGAL DESCRIPTION 186 15 Exhibit B MCC Deliverables/Schedule of Performance th 187 16 188 17 Exhibit C SITE MAP 189 190 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Randy Chavez, Director of Public Works SUBJECT: AGREEMENT WITH REGENCY ESTATES HOMEOWNERS’ ASSOCIATION FOR IMPROVEMENTS AT THE TAMARISK ROW RETENTION BASIN AND ACCEPTANCE OF EMERGENCY ACCESS EASEMENT RECOMMENDATION: 1. Approve a Right-Of-Entry Agreement for Temporary Access and Construction with Palm Desert Regency Estates Homeowners Association for access to repair and restore the Tamarisk Row Retention Basin. 2. Authorize repair and restoration improvements to the Tamarisk Row Retention Basin in an amount not to exceed $200,000. 3. Authorize the City Attorney to make necessary non -monetary changes to the agreement. 4. Authorize the City Manager to execute the agreement and any other documents necessary to effectuate the taken herewith. 5. Approve acceptance of Emergency Access Easement Deed granting emergency access to the Tamarisk Row Retention Basin to perform emergency repair and maintenance. BACKGROUND/ANALYSIS: On August 20, 2023, Tropical Storm Hilary caused widespread flooding and damage throughout the Coachella Valley, including impacts to stormwater infrastructure in Palm Desert. In the aftermath of the storm, the City undertook extensive cleanup, repair, and drainage system maintenance efforts to restore affected areas and improve long-term flood resilience. One of the facilities affected by the storm is the Tamarisk Row Retention Basin, which is owned by the Palm Desert Regency Estates Homeowners Association (Regency Estates HOA). Damage to the basin’s spillway has created a risk to the adjacent public street and requires repair to reduce the potential of street closure during future storm events. As part of the post-storm response, the City has provided up to $200,000 in funding to multiple property owners and homeowners’ associations impacted by Tropical Storm Hilary to complete similar storm-related drainage and infrastructure improvements. The proposed action is consistent with that approach and is intended to address a specific public infrastructure concern. On January 5, 2026, staff met with representatives of the Regency Estates HOA, who confirmed their willingness to allow the City access to the property for the limited purpose of completing the proposed repair and restoration improvements. Staff recommen ded entering into a Right-of- Entry Agreement for Temporary Access and Remediation to authorize City access to the private property to perform such repairs and restoration. 191 City of Palm Desert Approve Agreement for Regency Estates HOA Page 2 of 3 The City will utilize up to $200,000 in available funds to repair the damaged spillw ay. If funding and site conditions allow, staff will also prioritize addressing percolation issues within the basin and removing excess vegetation to improve overall basin function. City crews may also provide in-kind services, including vegetation removal, to supplement contractor work and maximize the effectiveness of available funding. Upon execution of the agreement, staff will coordinate implementation of the repair and restoration improvements and continue to work with the Regency Estates HOA through out the duration of the project. In addition to the Agreement, to facilitate potential emergency repair work to the Tamarisk Row Retention Basin if needed in the future on a temporary basis, Regency Estates HOA will grant to the City an emergency access easement allowing the City the right, but not the obligation, to enter the property and perform emergency maintenance and repair of the retention basin. Acceptance of the emergency access easement will be needed by the City. On February 17, 2026, staff met with the Regency States HOA Board to present the proposed scope of work for their review and formal consideration. Following the presentation, the Board voted and approved the proposal. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Funds are available for the repair and restoration of the Tamarisk Row Retention Basin are included in the approved FY 2025-26 Financial Plan and Capital Improvement Project (CIP) List under Account No. 4004159-4219100 (CP–Disaster/Emergency). The improvements will be made by a contractor currently under contract with the City for an amount not to exceed $200,000. Therefore, this action will result in no additional impact on the General Fund. ATTACHMENT: 1. Right-Of-Entry Agreement for Temporary Access and Construction 2. Emergency Access Easement Deed with Certificate of Acceptance 192 City of Palm Desert Approve Agreement for Regency Estates HOA Page 3 of 3 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☒ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 193 194 195 196 197 198 199 200 201 202 72500.00000\44567176.1 CITY OF PALM DESERT 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: City Manager APN(s.): _____________ EXEMPT FROM RECORDING FEES PER GOV. CODE, §§ 6103, 27383 EXEMPT FROM DOCUMENTARY TRANSFER TAX PER REV. & TAX CODE, § 11922 EMERGENCY ACCESS EASEMENT DEED FOR VALUE RECEIVED, PALM DESERT REGENCY ESTATES HOMEOWNERS ASSOCIATION, a California nonprofit public benefit corporation ("Grantor"), hereby grants to the CITY OF PALM DESERT, a municipal corporation ("Grantee"), a perpetual nonexclusive easement for emergency access on, over, under, along and across all of Grantor's real property located in the City of Palm Desert, County of Riverside, State of California, more particularly described on Exhibit A attached hereto and incorporated herein by this reference ("Grantor's Property"). The emergency access easement purpose is to grant Grantor the right, but not the obligation, to enter Grantor’s Property to perform emergency main tenance and repair of the retention basin and associated facilities and improvements located on Grantor’s Property. In connection with the exercise of such emergency access, Grantee shall have the right to trim or cut tree roots and other vegetation as may interfere with the Grantee’s access or the maintenance and repair of the retention basin and associated facilities and improvements located on Grantor’s Property. The easement described herein shall run with the land and shall be binding upon and inur e to the benefit of the parties and their respective successors and assigns. IN WITNESS WHEREOF, this Emergency Access Easement Deed is executed by the undersigned this _____ day of _______________, 2026. PALM DESERT REGENCY ESTATES HOMEOWNERS ASSOCIAT ION, a California nonprofit public benefit corporation By: _________________________________________ Name: _________________________________________ Its: ____________________________________________ 203 72500.00000\44567176.1 State of California ) ) ss. County of Riverside ) 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 t o 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 entit y 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) 204 72500.00000\44567176.1 EXHIBIT “A” LEGAL DESCRIPTION 205 72500.00000\44567176.1 CITY OF PALM DESERT CERTIFICATE OF ACCEPTANCE OF EMERGENCY ACCESS EASEMENT DEED This Certificate of Acceptance pertains to the interest in certain real property conveyed by the Emergency Access Easement Deed dated _________________________ to which this Certificate of Acceptance is attached, from PALM DESERT REGENCY ESTATES HOMEOWNERS ASSOCIATION, a California nonprofit public benefit corporation ("Grantor"), to the CITY OF PALM DESERT, a California municipal corporation ("Grantee"). Said Emergency Access Easement Deed is hereby accepted by the undersigned officer on behalf of Grantee pursuant to authority conferred by the said Grantee's governi ng body, and said Grantee hereby consents to recordation of same. Dated: ________________________ CITY OF PALM DESERT, a California municipal corporation By: ______________________________ Chris Escobedo City Manager ATTEST: ______________________________ Anthony Mejia City Clerk 206 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Ivan Tenorio, Homeless and Supportive Services Manager SUBJECT: APPROPRIATION OF FISCAL YEAR 2025-26 FUNDS FOR THE CALIFORNIA DEPARTMENT OF JUSTICE TOBACCO GRANT PROGRAM RECOMMENDATION: 1. Approve an appropriation of $121,003 in Fiscal Year 2025-26 for the California Department of Justice (DOJ) Tobacco Grant Program and establish the related grant project accounts. 2. Authorize the Director of Finance to appropriate funds from the General Fund Reserve to the Interfund Transfer Out Account (Account Number 1104199-450100) in the amount of $121,003, and transfer into the Tobacco Grant Fund (Account Number 2210000 -3910000). 3. Appropriate $121,003 to the Tobacco Grant Fund Professional Other No. (Account No. 2214422-4309000). 4. Authorize the City Manager, or designee, to execute any amendments, modifications, or extensions to the executed Memorandum of Understanding. BACKGROUND/ANALYSIS: On December 11, 2025, City Council adopted Resolution No. 2025-074 accepting the DOJ Tobacco Grant Program award and authorizing the City Manager, or designee, to execute the Memorandum of Understanding (MOU), Grant Agreement documents, and related actions. The December 11, 2025, staff report noted that an appropriation would be necessary from the General Fund to initially fund expenditures related to the grant award and that staff would return to Council upon final award. DOJ has finalized the City’s Tobacco Grant Program award at $393,144, which is less than the City’s requested amount of $421,494. The approved award totals by fiscal year are: Budget Category FY 25/26 FY 26/27 FY 27/28 FY 28/29 Personnel $114,241 $123,554 $133,629 N/A Operating Expenses & Equipment $1,000 $1,000 $1,000 N/A Administration Cost $5,762 $6,227 $6,731 N/A Total Cost $121,003 $130,781 $141,360 N/A This appropriation provides the spending authority for FY 2025 -26. Staff will budget the remaining award years (FY 2026-27 and FY 2027-28) during future annual budget processes. FY 2028-29 will serve as a closeout year to fully expend any unexpended balances from prior fiscal years. 207 City of Palm Desert Tobacco Grant Program Page 2 of 3 Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: An appropriation of $121,003 from the General Fund Reserve is necessary to fund FY 2025 -26 expenditures related to this grant award. The Tobacco Grant Program is reimbursement -based, and all eligible expenditures will be reimbursed by DOJ subject to grant requirements and approval of submitted reimbursement requests. ATTACHMENTS: 1. Summary of Award Letter 2. Budget Detail FY 26-29 208 City of Palm Desert Tobacco Grant Program Page 3 of 3 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 1870 2.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): _________________________ Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 209 210 Tobacco Grant Program GRANT SERVICES BRANCH – LOCAL ASSISTANCE DIVISION OF OPERATIONS 11/19/2025 Page 1 of 4 TOBACCO GRANT SUMMARY OF AWARD DOJ-PROP56-2025-26-1-036 PALM DESERT, CITY OF This Summary of Award document will be used by the Tobacco Grant Program when determining whether an activity or expense claimed was approved for funding and is reimbursable. Activities other than those presented here may not be reimbursable. A Grant Modification may be necessary for material deviations. Please consult with your Grant Program Officer before engaging in any activity beyond this scope or if you have questions about the scope of the activities and budget allowability. By signing the Memorandum of Understanding, your agency agrees to the commitments outlined below and this document becomes part of the Grant Agreement. AWARD SUMMARY $421,494 On-Site Training None Other Changes or Stipulations: Moved $1,000/year training costs to Travel section and made specific to DOJ Tobacco Enforcement trainings. IMPORTANT PROVISIONS FOR ALL GRANTEES I. Enforcement Activities a. Authorized - If enforcement activities were proposed, only activities that target retailers for illegal sales/marketing of tobacco products were approved. It is expected that the flavor ban will be enforced within one or more enforcement activities. b. Unauthorized - Community or school patrols, or other enforcement actions related to tobacco use and possession, are not permitted. II. Educational Activities a. Authorized – Retailer and/or officer educational activities on tobacco laws and ordinances, if included, are authorized as noted below. b. Unauthorized – School or community education efforts, including media campaigns, are not permitted as part of this award. All educational efforts should be directed to retailers and/or officers. 211 11/19/2025 Page 2 of 4 III. Removed Personnel or Other Items a. If specific personnel or other items were removed and not funded, they cannot be reinstated during the grant term. IV. Reduced Line Items a. If a specific line item was reduced, the intention was to not fully fund it or the activities it represents. V. Mileage/Fuel a. Budgets that include mileage or fuel were amended to include both together in one line item for flexibility and the type of backup documentation available. Mileage is limited to the state rate in effect at the time of travel. VI. Equipment a. All equipment items must be purchased during the first year of the project as noted on the Budget Detail. Their awarding is intended to support project goals and be used to support grant activities throughout the grant term. Please reference the Tobacco Grant Program Grantee Handbook for more information regarding allowable costs. GOALS AND ACTIVITIES Retail Inspections • Per year, 40 retailers will be inspected. • Additional details regarding these inspections: o The City of Palm Desert will conduct retailer inspections through walk-in inspections. Inspections will occur four times per year (quarterly). All 40 retailers within the City will be subject to random inspection, Minor Decoy Operations • Per year, 4 minor decoy operations will be conducted. • Per year, 40 retailers will be targeted through these operations. • Additional details regarding these operations: o The City of Palm Desert will conduct minor decoy operations through walk-in operations every three-six months alongside our partner RCSD, which will help provide safety measures and follow-up enforcement actions. Retailers will be selected both at random for compliance checks and in tandem with ongoing investigations to limit future violations. Follow-up actions will very on the nature of the infraction but may include fees, citations, retailer education efforts, and other regulatory and legal responses. Shoulder Tap Operations – Not Applicable Undercover Buys • Per year, 4 undercover buy operations will be conducted (other than minor decoy or shoulder tap). 212 11/19/2025 Page 3 of 4 • Per year, 40 retailers will be targeted through these operations. • Additional details regarding these undercover operations: o The city will conduct undercover buy operations through walk-in operations. The operations will focus specifically on the sales of any tobacco products to minors. Retailers will be selected if part of a broader investigative effort, with the expectation to plan 2-4 undercover buy operations per year. City code enforcement officers will work alongside our partner RCSD on these enforcement efforts. Retailer Education • Per year, 40 retailers will receive educational materials. • Per year, 40 retailers will receive on-site education. • Additional details regarding these retailer education activities: o The City of Palm Desert will conduct retailer education through walk-in operations. The city has three methods to conduct onsite education. The first method is educating retailers on the STAKE ACT (Stop Tobacco Access to Kids Enforcement Act). The second method is education through WE CARD, an online program that provides educational and training services for retailers of tobacco, alcohol, e-cigarettes, vapor products and other age-restricted products. The third method of retailer education will be reviewing store policies during employee training. These walk-in education operations will occur four times per year (quarterly). Enforcement Officer Education • Per year, 6 enforcement officers will receive education about tobacco laws and ordinances. • Additional details regarding these officer education activities: o The City of Palm Desert plans to educate enforcement officers in three different areas. The first is educating enforcement officers on the inspection of businesses. Second, will be training enforcement officers on how to conduct education for businesses. Third, will be training enforcement officers on PC 308 training, which involves laws regulating the sale and possession of tobacco products to and by minors. Prosecution – Not Applicable Task Force – Not Applicable Other Activities – Not Applicable PARTNERING AGENCIES Based upon the proposal submitted and any subsequent modifications approved by DOJ, the following agencies are expected to partner with and support the activities and fulfillment of goals referenced above: • Riverside County Sheriff’s Department As the project partner, the Riverside County Sheriff's Department (RCSD) will work alongside the proposed City code enforcement officers to conduct the proposed decoy sting operations, to aid with any citations if found. This is something the City already regularly conducts alongside RCSD; however, grant funding will allow for expanded operations and inspections. 213 11/19/2025 Page 4 of 4 Please notify your Grant Program Officer of any proposed changes to partnering agencies, particularly if they are included within your budget. 214 TOBACCO GRANT BUDGET DETAIL CITY OF PALM DESERT DOJ-PROP56-2025-26-1-036 25/26 AWARD BUDGET Revised 2.5.2026 A. Personnel Services Salaries Classification/Positions Computation FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTALS 41,519$ 44,904$ 48,566$ -$ 134,989$ 41,519$ 44,903$ 48,565$ -$ 134,987$ SUBTOTAL 83,038$ 89,807$ 97,131$ -$ 269,976$ Overtime Classification/Positions Computation FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTALS 479$ 518$ 560$ -$ 1,557$ SUBTOTAL 479$ 518$ 560$ -$ 1,557$ Benefits Classification/Positions Computation FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTALS 30,724$ 33,229$ 35,938$ -$ 99,891$ SUBTOTAL 30,724$ 33,229$ 35,938$ -$ 99,891$ TOTAL PERSONNEL SERVICES 114,241$ 123,554$ 133,629$ -$ 371,424$ B.Operating Expenses and Equipment Description Computation FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTALS -$ -$ -$ -$ -$ SUBTOTAL -$ -$ -$ -$ -$ Description Computation FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTALS -$ -$ -$ -$ -$ SUBTOTAL -$ -$ -$ -$ -$ Description and Destination Computation FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTALS 1,000$ 1,000$ 1,000$ -$ 3,000$ SUBTOTAL 1,000$ 1,000$ 1,000$ -$ 3,000$ TOTAL OPERATING EXPENSES AND EQUIPMENT 1,000$ 1,000$ 1,000$ -$ 3,000$ Costs Per Fiscal Year (July 1 - June 30) Code Compliance Officer(s) Management Aide Code Compliance Officer(s) Benefits (consolidated for all positions listed above) None Equipment (Tangible items with a PER-UNIT cost of $5,000 or more) NONE Other Expenses (Excludes Equipment and Travel/Training) Travel to DOJ Tobacco Enforcement Training(s)Must adhere to state rates in effect at time of travel Travel Expenses/Registration Fees* *For approved tobacco related training and travel only. Travel cannot exceed current state rates. Page 1 of 2 215 TOBACCO GRANT BUDGET DETAIL CITY OF PALM DESERT DOJ-PROP56-2025-26-1-036 25/26 AWARD BUDGET Revised 2.5.2026 C.Administrative Costs* Description Enter Desired Percentage (up to 5%)FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 TOTAL 5,762$ 6,227$ 6,731$ -$ 18,720$ *Administrative costs must not exceed 5% of the total budget for Sections A & B.TOTAL 5,762$ 6,227$ 6,731$ -$ 18,720$ SUMMARY Budget Category FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 Total Request 114,241$ 123,554$ 133,629$ -$ 371,424$ 1,000$ 1,000$ 1,000$ -$ 3,000$ 5,762$ 6,227$ 6,731$ -$ 18,720$ 121,003$ 130,781$ 141,360$ -$ 393,144$ TOTAL PROJECT COSTS Administrative Costs 5.0% A. Personnel Services B. Operating Expenses and Equipment C. Administrative Costs Page 2 of 2 216 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Chris Escobedo, City Manager SUBJECT: COVE COMMUNITIES SERVICES COMMISSION AREAS IDENTIFIED FOR ENHANCED COLLABORATION RECOMMENDATION: Receive and file report on Cove Communities Services Commission areas identified for enhanced collaboration. BACKGROUND/ANALYSIS: In 1981, the cities of Indian Wells, Palm Desert, and Rancho Mirage formed the Cove Communities Services Commission to provide responsible, well-coordinated, and effective fire, police, and paramedic services. The Commission is comprised of six elected cit y council members, two from each participating city. Although each Cove city now contracts public safety services individually, the Cove Communities Services Commission remains actively engaged in regional programs and projects that benefit all three cities. These efforts include collaboration in public safety, senior services, and recreational services. In 2025, Commissioners expressed interest in identifying opportunities for enhanced regional collaboration. At the October 22, 2025 meeting, staff presen ted potential focus areas. City Managers from each city subsequently reviewed the concepts and presented refined recommendations at the January 21, 2026 meeting. These items were approved by the Cove Communities Services Commission. The following areas were identified: Affordable Housing The City of Indian Wells is pursuing state legislation that would allow a portion of its affordable housing funds to be used toward the construction of student -focused affordable housing at the California State University, San Bernardino – Palm Desert Campus, in exchange for Regional Housing Needs Assessment (RHNA) credit. Additionally, the three cities are exploring the formation of a RHNA subregion. Establishing a subregion would provide a formal framework for joint planning and the creation of affordable housing units across city boundaries, offering greater flexibility and regional coordination in meeting state housing requirements. 217 City of Palm Desert Cove Communities Services Commission Collaboration Page 2 of 3 Public Works Collaboration – Bike Route Connectivity The three cities have a strong history of partnering on roadway projects that cross city boundaries, including improvements along Highway 111, Monterey Avenue, and Fred Waring Drive. A newly identified opportunity is enhanced coordination of bike lane additions and connectivity to create a more seamless network for residents traveling across city boundaries. Public Works and Capital Projects staff from the three cities will incorporate bike route connectivity into ongoing and future capital project coordination efforts. Emergency Preparedness The three cities have formalized a mutual partnership for emergency management. Under this agreement, each city has committed to:  Sharing space, shelter, technology, and personnel during emergencies  Providing limited staff support (up to 80 hours) when not managing its own emergency  Retaining full control over its own operations  Prioritizing its own emergency response needs first While the cities have historically supported one another through informal coordination, this agreement formalizes a framework for disaster assistance while ensuring each city maintains operational autonomy. Additional collaborative efforts include joint training and coordination of Community Emergency Response Team (CERT) programs. National Night Out National Night Out is an annual nationwide campaign that promotes police-community partnerships and public safety awareness. Although traditionally held on the first Tuesday in August, the event is typically moved to early October in the Coachella Valley due to extreme summer heat. For the past two years, Rancho Mirage has hosted the regional event at the Community Park and Amphitheater, most recently on October 4, 2025. The event has grown into a significant regional public safety outreach effort, featuring law enforcement and fire/EMS demonstrations, specialized equipment displays, family activities, and participation from 39 vendors. Given that the event serves residents across all three Cove communities and involves regional public safety agencies, staff recommends formalizing National Night Out as a jointly supported and funded regional initiative moving forward. 218 City of Palm Desert Cove Communities Services Commission Collaboration Page 3 of 3 Additional Regional Public Safety Initiative Separate from this list, the three cities are evaluating participation in a Drone as First Responder (DFR) program through the Riverside County Sheriff’s Department. Because all three cities share the Palm Desert Sheriff’s Station, the Sheriff’s Department and city staff are jointly evaluating vendors that deploy public safety drones, as well as exploring the development of a Real-Time Crime Center at the Palm Desert Station. The collaborative efforts outlined above are intended to inform the City Council of current and potential areas of enhanced regional coordination among the Cove communities. These initiatives reflect a continued commitment to responsible governance, operational efficiency, and improved service delivery for residents across all three cities. Staff will continue refining these concepts and evaluating implementation pathways, including cost-sharing frameworks, governance structures where applicable, and policy considerations. Additional updates and formal recommendations will be brought forward as next steps are developed for Commission and City Council consideration. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: None at this time. CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than competitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determi nation. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 219 220 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 26, 2026 PREPARED BY: Pedro Rodriguez, Code Compliance & Support Services Manager SUBJECT: INTRODUCTION OF AN ORDINANCE AMENDING CHAPTERS 8.34 AND 8.36 OF THE PALM DESERT MUNICIPAL CODE RELATING TO TOBACCO RETAILER LICENSING, SMOKING REGULATIONS AND REGULATION OF KRATOM SALES AND POSSESSION. RECOMMENDATION: Hold a public hearing and introduce an Ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTERS 8.34 AND 8.36 OF THE PALM DESERT MUNICIPAL CODE RELATING TO TOBACCO RETAILER LICENSING, SMOKING REGULATIONS, AND REGULATION OF KRATOM SALES AND POSSESSION AND MAKING A FINDING OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.” BACKGROUND/ANALYSIS: In December 2009, the City Council adopted Ordinance No. 1200, which revised PDMC Chapter 8.36 concerning the regulation and prohibition of smoking. Since that tim e, smoking products and practices have evolved significantly, including the widespread use of electronic smoking devices and the introduction of substances beyond traditional tobacco. This item was initially brought forward to City Council at the August 22, 2024, study session. Staff has been working on a comprehensive cleanup of the chapter and addressing new legislation and products, including Kratom. The proposed amendments to PDMC Chapters 8.34 and 8.36 are intended to modernize the Municipal Code, close regulatory gaps, clarify enforcement authority, and align local regulations with current public health objectives. Key components of the amendments include updated definitions, new licensing and sales prohibitions, regulation of kratom products, enhanced enforcement measures, and clarification of smoking restrictions within private country club communities. PDMC Chapter 8.36 regulates smoking in public places, places of employment, and other specified locations to protect public health and reduce expo sure to secondhand smoke. PDMC Chapter 8.34 establishes licensing requirements and operational standards for tobacco retailers. Since the adoption of Ordinance No. 1200 in 2009, new smoking technologies and products such as electronic smoking devices and non-tobacco substances have emerged. Additionally, enforcement experience has identified ambiguities within the code, particularly regarding applicability to private country clubs and the sale of emerging substances such as kratom. 221 City of Palm Desert Tobacco Retailer License and Smoking Regulations Page 2 of 4 At that 2024 study session, staff requested direction on the intent of the smoking ordinance following a Code Compliance complaint related to smoking outside a restaurant located within a private country club community. Staff’s review identified a potential conflict between the smoking prohibitions and the exclusion of private country clubs from the definition of “public place.” As a result of the direction received by City Council, the amendments are being proposed to Chapter 8.34 and Chapter 8.36. At the February 11, 2026, study session, the prohibition and regulation of kratom products were discussed. This amendment incorporated the prohibition of high-risk synthetic kratom products into Chapter 8.36. Amendments to Chapter 8.34 – Tobacco Retailer License General Cleanup  Revise language throughout the chapter to improve clarity, consistency, and precision.  Update terminology to reflect current usage and remove outdated or redundant provisions. Amended Definitions  Update definitions to encompass electronic smoking devices and non-tobacco substances.  Add definitions and regulatory language related to kratom products. Licensing Requirements and Prohibitions  Prohibit the sale of electronic smoking devices.  Prohibit the sale of flavored tobacco products.  Prohibit the sale of tobacco products at pharmacies. Kratom Regulations  Prohibit the sale and possession of high-risk synthetic kratom products.  Aligns clear enforcement standards for kratom retailers with existing tobacco laws.  Establish clear authority for enforcement related to kratom violations and penalties.  Aligns with regional public health concerns and regulatory enforcement practices across multiple valley cities. Inspections and Enforcement  Enhance enforcement provisions by allowing more frequent compliance monitoring.  Increase penalties for operational violations.  Authorize revocation of a tobacco retailer license for illegal kratom sales. Amendments to Chapter 8.36 – Regulation and Prohibition of Smoking General Cleanup and Definitions  Revise ordinance language for clarity and consistency.  Update definitions to include electronic smoking devices and non-tobacco substances. 222 City of Palm Desert Tobacco Retailer License and Smoking Regulations Page 3 of 4 Clarification of Smoking Restrictions PDMC Chapter 8.36 currently prohibits smoking in unenclosed areas of:  Public places, including within 20 feet of primary entrances to privately owned commercial, industrial, institutional, or professional office buildings.  Places of employment.  Businesses, including within 20 feet of dining area entrances.  Common areas of multifamily residential properties owned by the City. While smoking is prohibited in these locations, a private country club was previously excluded from the definition of “public place,” creating ambiguity in enforcement. Private Country Clubs  Amend the code to define a private country club as a “public place” for purposes of smoking regulation.  Retain exceptions specifying that the following are not public places: o A private residence within a private country club. o The fairway or putting green of a golf course located within a private country club. This clarification ensures consistent application of smoking regulations and aligns with the public health intent of the ordinance. The amendments set forth in these two chapters are a reasonable and necessary exercise of the City’s police power to protect public health, safety, and welfare. Additionally, these amendments modernize the City’s smoking and tobacco retailer regulations, address emerging products and substances, and enhance enforcement authority. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no fiscal impact related to this item. ATTACHMENTS: 1. Chapter 8.34 (w/ Kratom prohibition) 2. Draft Chapter 8.34 (w/ Kratom prohibition) 3. Chapter 8.36 4. Draft Chapter 8.36 5. Tobacco Retailer and Smoking Ordinance (w/ Kratom prohibition) 6. Presentation – will be provided prior to the meeting 223 City of Palm Desert Tobacco Retailer License and Smoking Regulations Page 4 of 4 CONFLICT OF INTEREST AWARENESS CHECKLIST: ☐ Site-Specific Property Interest – Councilmembers should check if they own or lease real property within 1,000 feet of the project site (Gov. Code § 87103(b); FPPC Reg. 18702.2). ☐ SB 1439 Applicability (Campaign Contributions) – Applies to licenses, permits, or other entitlements for use, and to contracts or franchise agreements other than co mpetitively bid, labor, or personal employment contracts. Applicant(s)/Appellant(s): Not Applicable Councilmembers should review any campaign contributions received within the last 12 months from parties or participants to the proceeding and must not accept contributions over $500 from those parties for 12 months following the final decision (Gov. Code § 84308). Note: These indicators are informational and do not constitute a legal determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 224 Chapter 8.34 TOBACCO RETAILER LICENSE § 8.34.010 Definitions. The following words and phrases, whenever used in this chapter, shall have the meaning defined in this section unless the context clearly requires otherwise: “Characterizing flavor” means a distinguishable taste or aroma, or both, other than the taste or aroma of tobacco, imparted by a tobacco product or any byproduct produced by the tobacco product. Characterizing flavors include, but are not limited to, tastes or aromas relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, alcoholic beverage, menthol, mint, wintergreen, herb, or spice. A tobacco product shall not be determined to have a characterizing flavor solely because of the use of addi tives or flavorings or the provision of ingredient information. Rather, it is the presence of a distinguishable taste or aroma, or both, that constitutes a characterizing flavor. “City” means the City of Palm Desert “Constituent” means any ingredient, substance, chemical, or compound, other than tobacco, water, or reconstituted tobacco sheet, that is added by the manufacturer to a tobacco product during the processing, manufacture, or packing of the tobacco product. “Consumer” means a person who purchases a tobacco product for consumption. “Coupon” means any voucher, rebate, card, paper, note, form, statement, ticket, image, or other issue, whether in paper, digital, or other form, used for commercial purposes to obtain an article, product, service, or accommodation without charge or at a discounted price. “Department” means the Development Services Department of the city. “Electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhalin g from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Electronic smoking device includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine, and whether natural or synthetic. Electronic smoking device does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessa tion product or for other therapeutic purposes where such product is marketed and sold solely for such an approved purpose. “Flavored tobacco product” means any tobacco product that contains a constituent that imparts a characterizing flavor, as defined in California Health and Safety Code Section 104559.5(a)(1), or any tobacco product, other than looseleaf tobacco, a premium cigar, or a shisha tobacco product, that is not listed on the 225 Unflavored Tobacco List established by the California Attorney General pursuant to California Health and Safety Code Section 104559.1. “Full retail price” means the price listed for a tobacco product on its packaging or on any related shelving, advertising, or display where the tobacco product is sold or offered for sale, plus all applicable taxes and fees if such taxes and fees are not included in the listed price. “Kratom” means the plant Mitragyna speciosa, whether growing or not, and any compound, manufacture, salt, derivative, mixture, or preparation of that plant, inc luding its leaves, and any product containing mitragynine, speciociliatine, speciogynine, paynantheine, or 7-hydroxymitragynine (also known as 7-OH), whether natural or synthesized. “Kratom leaf” means the leaf of the kratom plant, also known as Mitragyna speciosa, in any form, but without chemical alternation beyond traditional drying or grinding. “Kratom leaf extract” means the material obtained by extraction of kratom leaves by any means, provided that the extraction process does not introduce synthetic or chemically altered kratom alkaloids. “Kratom product” means a product consisting of kratom leaf, kratom leaf extract, or both; any part of a leaf of the plant Mitragyna speciosa in fresh, dehydrated or dried form or a kratom extract or any product that contains any kratom alkaloid or metabolite. “Labeling” means written, printed, pictorial, or graphic matter upon any tobacco product or any of its packaging. “License” means a valid tobacco retailer’s license issued by the department to a person to act as a tobacco retailer. “Looseleaf tobacco” consists of cut or shredded pipe tobacco, usually sold in pouches, excluding any tobacco product which, because of its appearance, type, packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, consumers as tobacco for making cigarettes, including roll-your-own cigarettes. “Natural kratom leaf product” consisting of kratom leaf, kratom leaf extract, or both, that has not been chemically altered or adulterated with synthetic or concentrated kratom alkaloids or derivatives, including, but not limited to 7-hydroxymitragynine in concentrations exceeding levels that occur naturally in kratom leaf. “Packaging” means a pack, box, carton, or container of any kind or, if no other container, any wrapping (including cellophane) in which a tobacco product is sold, or offered for sale, to a consumer. 226 “Person” means any natural person partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee or any other legal entity. “Pharmacy” means any retail establishment in which the profession of pharmacy is practiced by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offered for sale, regardless of whether the retail establishment sells other retail goods in addition to prescription pharmaceuticals. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have, or can or does share, ultimate control over the day-to-day operations of a business. “Tobacco product” means any substance containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco. “Self-service display” means the open display or storage of tobacco products in a manner that is physically accessible to the general public without the assistance of the retailer or employee of the retailer and a direct face-to-face transfer between the purchaser and the retailer or employee of the retailer. A vending machine is a form of self-service display. “Shisha tobacco product” means a tobacco product smoked or intended to be smoked in a hookah. Shisha tobacco product includes, and may be referred to as, hookah tobacco, waterpipe tobacco, maassel, narghile, and argileh. Shisha tobacco product does not include any electronic devices, such as an electronic hookah, electronic cigarette, or electronic tobacco product. “Synthesized” means an alkaloid or alkaloid derivative that has been created by chemical synthesis or biosynthetic means (include but not limited to: fermentation, recombinant techniques, yeast derived enzymatic techniques) rather than traditional food preparation techniques such as heating or extracting. It also includes alkaloids that have been further exposed to chemicals or processes that would confer a structural change in the alkaloids contained within the extract. “Synthetic kratom alkaloid” means any kratom alkaloid or derivative that has been created, isolated, increased, or modified through chemical synthesis, biosynthesis, fermentation, recombinant techniques, enzymatic processing, or other processes that materially alter the naturally occurring alkaloid profile. “Synthetic kratom product” means any product containing a synthetic kratom alkaloid, including synthesized or chemically altered 7-hydroxymitragynine (7-OH), regardless of labeling or marketing. 227 “Tobacco paraphernalia” means cigarette papers or wrappers, pipes, holders of smoking materials of all types, cigarette rolling machines, and any other item designed for the smoking or ingestion of or marketed for the consumption, use, or preparation of tobacco products, as defined in California Health and Safety Code Section 104559.5(a)(17)(A)(iii). “Tobacco product” means any substance containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco product as defined in California Health and Safety Code Section 104559.5(a)(17), including, but not limited to, any product containing, made, or derived from tobacco or nicotine intended for human consumption, electronic devices that deliver nicotine or other vaporized liquids, and any component, part, or accessory of a tobacco product. Tobacco product does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marketed and sold solely for such an approved purpose. “Tobacco product flavor enhancer” means a product designed, manufactured, produced, marketed, or sold to produce a characterizing flavor when added to a tobacco product, as defined in California Health and Safety Code Section 104559.5(a)(18). “Tobacco retailer” means any person who sells, offers for sale, or does or offers to exchange for any form of consideration, tobacco, tobacco products, or tobacco paraphernalia. “Tobacco retailing” shall mean the doing of any of these things. This definition is without regard to the quantity of tobacco, tobacco products, or tobacco paraphernalia sold, offered for sale, exchanged, or offered for exchange. § 8.34.020 Requirements. A. It is unlawful for any person to act as a tobacco retailer without first obtaining and maintaining a valid tobacco retailer’s license pursuant to this chapter for each location at which that activity is to occur. No license may issue to authorize tobacco retailing at other than a fixed location. For example, tobacco retailing by persons on foot and tobacco retailing from vehicles are prohibited. No license may be issued to authorize sales of tobacco products at a temporary event, such as a festival or farmers’ market. B. The payment of the license fee designated in Section 8.34.060 confers paid status upon a license for a term of one year. Each tobacco retailer shall apply for the renewal of his or her tobacco retailer’s license no later than thirty (30) days prior to expiration of the payment term. A license that is not renewed in a timely manner shall expire at the end of its term, and the tobacco retailer must obtain a new license prior to any further sale, offer for sale, or distribution of any tobacco product. C. Nothing in this chapter shall be construed to grant any person obtaining and maintaining a tobacco retailer’s license any status or right other than the right to act as a tobacco retailer at the location in the city identified on the face of the permit. For 228 example, nothing in this chapter shall be construed to render inapplicable, supersede, or apply in lieu of any other provision of applicable law, including, without limitation, any condition or limitation on smoking in enclosed places of employment made applicable to business establishments by California Labor Code Section 6404.5 or the prohibition on the sale of flavored tobacco products and tobacco product flavor enhancers under California Health and Safety Code Section 104559.5. All licenses are issued subject to the city’s right to amend this chapter from time to time, and tobacco retailers shall comply with all provisions of this chapter, as amended. D. It is unlawful for any person to sell, offer for sale, or possess with the intent to sell or offer for sale, a flavored tobacco product or a tobacco product flavor enhancer, except as permitted under California Health and Safety Code Section 104559.5(c), (d), and (e) for flavored shisha tobacco products, premium cigars sold in cigar lounges, and looseleaf tobacco. There shall be a rebuttable presumption that a tobacco product is a flavored tobacco product if a manufacturer or any of the manufacturer’s agents or employees, in the course of their agency or employment, has made a statement or claim directed to consumers or to the public that the tobacco product has or produces a characterizing flavor, including, but not limited to, text, color, and/or images on the product’s labeling or packaging that are used to explicitly or implicitly communicate that the tobacco product has a characterizin g flavor. E. A tobacco retailer’s permit issued to a hookah tobacco retailer shall only authorize the sale of flavored shisha tobacco products if the retailer complies with all conditions set forth in California Health and Safety Code Section 104559.5(c), in cluding maintaining a valid state cigarette and tobacco products retailer license issued by the California Department of Tax and Fee Administration, prohibiting persons under 21 years of age from entering the premises at any time, and operating in accordan ce with all state and local laws related to tobacco sales and consumption, including, but not limited to, California Labor Code Section 6404.5. F. No tobacco retailer shall violate, or cause or allow the tobacco retailer’s agents or employees to violate, any provision of this chapter or any other local, state, or federal law applicable to tobacco products or tobacco retailing. G. Tobacco retailers are responsible for the actions of their employees and agents relating to the sale, offer to sell, and furnishing of tobacco products at the retail location. The sale of any tobacco product by an employee shall be considered an act of the tobacco retailer, and the license holder shall be responsible for any monetary penalties levied. H. Nothing in this chapter shall be construed to penalize the purchase, use, or possession of a tobacco product by any person not engaged in tobacco retailing. I. No tobacco retailer shall do any of the following: (1) Honor or redeem, or offer to honor or redeem, a coupon to allow a consumer to purchase a tobacco product for less than full retail price; (2) Sell any tobacco product to a consumer through a multiple package discount or otherwise provide any such product to a consumer for less 229 than the full retail price in consideration for the purchase of any tobacco product or any other item; or (3) Provide any free or discounted item to a consumer in consideration for the purchase of any tobacco product. J. No person or tobacco retailer shall sell or offer to sell any electronic smoking device that delivers natural or synthetic nicotine or any other substance(s) to the person inhaling from the device. This includes any component, part, or accessory intended or reasonably expected to be used with the electronic smoking device, whether or not sold separately. K. No pharmacy or pharmacy employee or agent shall sell or offer to sell any tobacco product. The department shall not issue any new, or renew any existing, license for any pharmacy. L. No tobacco retailer or other person shall sell or offer for sale a ny tobacco product to any consumer unless the tobacco product: (1) is sold in the original manufacturer’s packaging intended for sale to consumers; (2) conforms to all applicable federal labeling requirements; and (3) conforms to all applicable child -resistant packaging requirements. M. Tobacco retailing by means of a self -service display is prohibited. All sales of tobacco products and tobacco paraphernalia shall be conducted in person, over the counter, at the permitted location. N. Tobacco retailers shall post conspicuously, at each point of purchase, a notice stating that selling tobacco products to anyone under 21 years of age is illegal and subject to penalties. The form and content of such notice shall be subject to the approval of the department. O. No tobacco retailer or other person shall sell or offer to sell a tobacco product to another person without first verifying by means of government -issued photographic identification that the recipient is at least 21 years of age. P. No tobacco retailer shall allow, at its retail location, any individual who is younger than 21 years of age to sell or offer to sell tobacco products. Q. Kratom Regulations 1. No person or business shall sell, offer for sale, or distribute any synthetic kratom product within the City. 2. This chapter shall not prohibit the sale or distribution of natural kratom leaf products that do not contain synthetic or chemically altered kratom alkaloids. 3. No person under twenty-one (21) years of age shall possess any kratom or kratom product within the City. 4. This chapter shall not apply to possession of kratom or kratom products by persons twenty-one (21) years of age or older, provided such products are otherwise lawful under this chapter. 230 5. There shall be a rebuttable presumption that a product is a synthetic kratom product if a manufacturer or any of the manufacturer’s agents or employees, in the course of their agency or employment, has made a statement or claim directed to consumers or to the public that the product has or produces effects similar to a synthetic kratom product, including, but not limited to, text, color, and/or images on the product’s labeling or packaging that are used to explicitly or implicitly communicate that the product is a synthetic kratom product. R. It is unlawful for any person to sell, offer for sale, or distribute any kratom product to a person under twenty-one (21) years of age. S. No person or tobacco retailer shall sell or offer for sale any natural kratom leaf product unless it is: (1) is sold in the original manufacturer’s packaging intended for sale to consumers; (2) conforms to all applicable federal labeling requirements; and (3) conforms to all applicable child-resistant packaging requirements. T. Natural kratom leaf product retailing by means of a self -service display is prohibited. All sales of natural kratom leaf products shall be conducted in person, over the counter. U. Retailers selling natural kratom leaf products shall post conspicuously, at each point of purchase a notice stating that selling kratom products to anyone under 21 years of age is illegal and subject to penalties. The form and content of such notice shall be subject to the approval of the department. V. No retailer or other person shall sell or offer to sell a natural kratom leaf product to another person without first verifying by means of government-issued photographic identification that the recipient is at least twenty-one (21) years of age. § 8.34.030 Application procedure. Application for a tobacco retailer’s license shall be submitted in the name of each proprietor proposing to conduct retail tobacco sales and shall be signed by each proprietor or an authorized agent thereof. It is the responsibility of each proprietor to be informed of the laws affecting the issuance of a tobacco retaile r’s license, including, but not limited to, California Health and Safety Code Section 104559.5 prohibiting the sale of flavored tobacco products and tobacco product flavor enhancers and the kratom regulations under this chapter. A license that is issued in error or on the basis of false or misleading information supplied by a proprietor may be revoked pursuant to Section 8.34.090 of this chapter. No license holder may rely on the issuance of a license as a determination by the City that the license holder h as complied with all laws applicable to tobacco retailing. All applications shall be submitted on a form supplied by the department and shall contain the following information: A. The name, address, and telephone number of each proprietor; 231 B. The business name, address, and telephone number of the single fixed location for which a tobacco retailer’s license is sought; C. The name and mailing address authorized by each proprietor to receive all license-related communications and notices (the “authorized address”). If an authorized address is not supplied, each proprietor shall be understood to consent to the provision of notice at the business address specified in subsection (B) of this section; D. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation; E. A statement signed by each proprietor affirming that the business will comply with all state and local laws related to the sale of tobacco products, including the prohibition on flavored tobacco products and tobacco product flavor enhancers under California Health and Safety Code Section 104559.5 and the kratom regulations under this chapter; F. For applications by hookah tobacco retailers intending to sell flavored shisha tobacco products, a certification that the business meets all conditions set forth in California Health and Safety Code Section 104559.5(c); G. Proof that the location for which a license is sought has been issued a valid state license for the sale of tobacco products, if the tobacco retailer sells products that require such license; H. A statement whether or not the tobacco retailer or any agent of the tobacco retailer has been found to have violated this chapter or other applicable law governing tobacco products or tobacco retailing and, if so, the dates and locations of all such violations within the previous five (5) years; I. An application for a new or renewal license will be denied if there are any outstanding fines or late fees issued by the department, or during any period of suspension; and J. Such other information as the department deems necessary for the administration or enforcement of this chapter. § 8.34.040 Issuance of license. Upon the receipt of an application for a tobacco retailer’s license and the license fee, the department shall issue a license unless substantial record evidence demonstrates one of the following bases for denial: A. The application is incomplete or inaccurate; or B. The application seeks authorization for tobacco retailing by a proprietor for which or whom a suspension is in effect pursuant to Section 8.34.080 of this chapter; or 232 by a proprietor which or who has had a license revoked pursuant to Section 8.34.09 0 of this chapter; or C. The application seeks authorization for tobacco or kratom retailing that is prohibited pursuant to Section 8.34.020 of this chapter (e.g., mobile vending), that is unlawful pursuant to this Palm Desert code (e.g., the zoning code), or that is unlawful pursuant to any other local, state or federal law, including, but not limited to, the prohibition on the sale of flavored tobacco products and tobacco product flavor enhancers under California Health and Safety Code Section 104559.5. D. For applications by hookah tobacco retailers intending to sell flavored shisha tobacco products, the application fails to demonstrate compliance with all conditions set forth in California Health and Safety Code Section 104559.5(c). E. The sale of tobacco products and accessories is prohibited in City-owned structures and in any area of a structure leased by the City. § 8.34.050 Display of license. Each license shall be prominently displayed in a publicly visible location at the licensed premises. § 8.34.060 Fees for license. The fee to issue or to renew a tobacco retailer’s license shall be established by resolution of the city council of Palm Desert, California. The fee shall be calculated so as to recover no more than the total cost of license administration and enforcement, including, for example, but not limited to, issuing the license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violations, and prosecution of violators. Fees are nonrefundable except as may be required by law. § 8.34.070 Licenses nontransferable. A tobacco retailer’s license is nontransferable. If the information required in the license application pursuant to Section 8.34.030, subsections (A) through (C), changes a new tobacco retailer’s license is required before the business may continue to act as a tobacco retailer. For example, if a proprietor to whom a license has been issued changes business location, that proprietor must apply for a new license prior to acting as a tobacco retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a tobacco retailer. Any attempted transfer shall render the license null and void. Notwithstanding any other provision of this chapter, prior violations of this chapter at a location shall continue to be counted against that location and license ineligibility and suspension periods shall continue to apply to that location unless: (1) One hundred percent of the interest in the stock, assets, or income of the business, other than a security interest for the repayment of debt, has been transferred to the new owner(s); and (2) the City is provided with clear and convincing evidence, including an affidavit, that the business has been acquired in 233 an Arm’s Length Transaction. An Arm’s Length Transaction, for the purposes of this section, means a transaction in which two or more unrelated and unaffiliated parties agree on the transfer in question; the parties act independently and in their own self- interest; and the parties have equal bargaining power and symmetric information, leading the parties to agree upon fair-market terms. § 8.34.080 License violation. A. Violation of Tobacco and Kratom-Related Laws. It is a violation of this chapter for a person, licensee, or his or her agent or employee to violate any local, state, or federal tobacco-related law, including, but not limited to, the prohibition on the sale, offer for sale, or possession with intent to sell flavored tobacco products or tobacco product flavor enhancers under California Health and Safety Code Section 104559.5 or the kratom regulations in this chapter B. License Compliance Monitoring. Compliance with this chapter shall be monitored by the code compliance division. The city council anticipates that compliance checks of a sample of tobacco retailers selected or based on complaints will be conducted as necessary during each twelve-month period. Compliance checks shall take place during normal business hours, with or without notice. If a violation has occurred, the tobacco retailer shall be inspected as needed to ensure compliance. All permitted premises must be open to inspection by the department during regular business hours and may include the use of audio or video recording equipment to document illegal sales or attempted sales. The department shall coordinate with the California Department of Public Health and the California Department of Tax and Fee Administration to ensure compliance with state tobacco laws, including the flavored tobacco sales restrictions under California Health and Safety Code Section 104559.5. § 8.34.090 Suspension, expiration, or revocation of license. A. Suspension or Revocation of License for Violation. In addition to any other penalty authorized by law, a tobacco retailer’s license shall be suspended or revoked if the department finds, after notice to the licensee and opportunity to be heard, that the licensee or his or her agents or employees has or have violated the requirements of this chapter or other conditions of the license imposed pursuant to Section 8.34.080. 1. Upon a finding by the department of a first license violation within any sixty-month period, the license shall be suspended for thirty (30) days. 2. Upon a finding by the department of a second license violation within any sixty-month period, the license shall be suspended for ninety (90) days. 3. Upon a finding by the department of a third license violation within any sixty-month period, the license shall be suspended for one (1) year. 4. Upon a finding by the department of a fourth license violation within any sixty-month period, the license shall be revoked and the proprietor or proprietors who had been issued the license shall never again be issued a tobacco retailer’s license pursuant to this chapter. 234 B. Expiration of License for Failure to Pay Renewal Fee. A tobacco retailer’s license that is not timely renewed pursuant to Section 8.34.020(B) shall automatically expire at the end of its term, and the tobacco retailer must obtain a new license prior to any further sale, offer for sale, or distribution of any tobacco product. C. Revocation of License Issued in Error. A tobacco retailer’s license shall be revoked if the department finds, after notice and opportunity to be heard, that one or more of the bases for denial of a license under Section 8.34.040 existed at the time application was made or at any time before the license issued. The revocation shall be without prejudice to the filing of a new application for a license. D. Appeal of Suspension or Revocation. A decision of the department to revoke or suspend a license is appealable to the city council and must be filed with the city clerk within ten (10) days of mailing of the department’s decision. An appeal shall stay all proceedings in furtherance of the appealed action. A suspension or revocation pursuant to subsection (B) is not subject to appeal. E. Coordination with State Penalties. In addition to the penalties described in this section, violations of California Health and Safety Code Section 104559.5, including the sale of flavored tobacco products or tobacco product flavor enhancers, may result in civil penalties and license suspension or revocation by the California Department of Tax and Fee Administration as prescribed in California Business and Professions Code Sections 22974.2 and 22958. § 8.34.100 Administrative fine. A. Grounds for Fine. If the department finds, based on substantial evidence, that (1) any unlicensed person, including a person named on a revoked or suspended license, has engaged in tobacco retailing in violation of Section 8.34.020 of this chapter; or (2) that any person has violated the kratom regulations in Section 8.34.020 of this chapter, the department shall fine that person as follows: 1. A fine not exceeding one hundred dollars ($100) for a first violation in any twelve-month period; 2. A fine not exceeding two hundred dollars ($200) for a second violation in any twelve-month period; or 3. A fine not exceeding five hundred dollars ($500) for a third or subsequent violation in any twelve-month period. Each day that such a person engages in tobacco retailing or unlawful sale of kratom shall constitute a separate violation. A fine shall be imposed in the amounts set forth in this subsection upon findings made by the department that the person, or any agent or employee of the person, has violated any provision of this chapter. Any administrative fine shall be imposed solely against the tobacco retailer and/or seller of kratom, not the tobacco retailer’s or seller of kratom’s employees or agents. 235 B. Notice of Violation. A notice of violation and of intent to impose a fine shall be personally served on, or sent by certified mail to, the person or persons subject to the fine. The notice shall contain a description of the facts upon which the asserted violation is based and include an advisement of the right to request a hearing to contest the fine. Any request for a hearing must be in writing and must be received by the department within ten (10) calendar days of personal service of the notice on the person or persons subject to a fine or within fifteen (15) calendar days if the person or persons subject to a fine are served by mail. C. Imposition of Fine. If no request for a hearing is timely received, the department’s determination on the violation and the imposition of a fine shall be final and payment shall be made within thirty (30) calendar days of written demand made in the manner specified above for a notice of violation. If the fine is not paid within that time, the fine may be collected, along with interest at the legal rate, in any manner provided by law. In the event that a judicial action is necessary to compel payment of the fine and accumulated interest, the person or persons subject to the fine shall also be liable for the costs of the suit and attorney’s fees incurred by the city in collecting the fine. D. Notice of Hearing. If a hearing is requested pursuant to subsection (B) of this section, the department shall provide written notice, within forty-five (45) calendar days of its receipt of the hearing request, to the person or persons subject to a fine of the date, time, and place of the hearing in the manner specified above for a notice of violation. E. Hearing Decision. The hearing officer shall render a written decision and findings within twenty (20) working days of the hearing. Copies of the decision and findings shall be provided to the person or persons subject to a fine in the manner specified above for a notice of violation. F. Finality of the Hearing Officer’s Decision. The decision of the hearing officer shall be the final decision of the city. G. Appeal to Superior Court of Limited Jurisdiction. Notwithstanding the provisions of Section 1094.5 or 1094.6 of the Code of Civil Procedure, within twenty (20) days after personal service of the hearing officer’s decision and findings, or within twenty-five (25) days if served by mail, any person subject to a fine may seek review of the hearing officer’s decision and findings by the superior court of limited jurisdi ction. A copy of the notice of appeal to the superior court shall be timely served in person or by first-class mail upon the department by the contestant. The appeal shall be heard de novo, except that the contents of the department’s file in the case shall be received in evidence. A copy of the records of the department of the notices of the violation and of the hearing officer’s decision and findings shall be admitted into evidence as prima facie evidence of the facts stated therein. H. Failure to Pay Fine. If no timely notice of appeal to the superior court is filed, or the department is not timely served with a copy of a notice of appeal, the 236 hearing officer’s decision and findings shall be deemed confirmed and the fine shall be collected pursuant to subsection (C) of this section. I. A tobacco retailer without a current valid license shall: (1) Keep all tobacco and/or natural kratom leaf products out of public view. The public display of tobacco products in violation of this provision shall constitute tobacco retailing without a license; and (2) Not display any advertisement relating to tobacco products that offers the sale of such products from the tobacco retailer’s location. J. State Penalties. Administrative fines imposed under this section are in addition to any civil penalties or license suspension or revocation imposed by the California Department of Public Health, the California Department of Tax and Fee Administration, or other enforcing agencies under California Health and Safety Code Section 104559.5 or Business and Professions Code Sections 22974.2 and 22958 for violations of state tobacco laws, including the sale of flavored tobacco products or tobacco product flavor enhancers. K. Infraction. The city may issue an infraction citation to any property owne r, manager, agent, employee or operator, pursuant to the provisions set forth in Chapter 1.08, Citations for Code Violations, including, but not limited to, the imposition of any and all criminal penalties set forth therein if there is any violation of this chapter committed, caused or maintained by any of the above parties. Unless otherwise provided herein, any person convicted of an infraction shall, for each separate violation of this chapter be subject to: (1) a fine in an amount not to exceed one hundred dollars ($100) for a first conviction of an offense; (2) a fine in an amount not to exceed two hundred dollars ($200) for a second conviction of the same offense within a twelve-month period of the date of the first offense; and (3) a fine in an amount not to exceed five hundred dollars ($500) for the third conviction of the same offense within a twelve-month period of the date of the first offense. § 8.34.110 Enforcement. The remedies provided by this chapter are cumulative and in addition to any other remedies available at law or in equity. A. Causing, permitting, aiding, abetting or concealing a violation of any provision of this chapter shall constitute a violation. B. In addition to the administrative enforcement procedures provided by Section 8.34.090 of this chapter, violations of this chapter may, in the discretion of the 237 prosecutor, be prosecuted as infractions or as otherwise provided by state law, including California Health and Safety Code Section 104559.5 and Business and Professions Code Sections 22974.2 and 22958. C. Violations of this chapter are declared to be public nuisances, subject to all applicable civil, administrative, and criminal remedies and penalties according to the provisions and procedures contained in this Municipal Code and state law, including, but not limited to, an action for abatement or injunctive relief. D. Violations of this chapter are hereby declared to be unfair business practices and are presumed to at least nominally damage each and every resident of the community in which the business operates. E. In addition to other remedies provided by this chapter or by other law, any violation of this chapter may be remedied by a civil action brought by the city attorne y, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement proceedings and suits for injunctive relief. F. Any person acting for the interests of itself, its members or the general public may bring an action for injunctive relief to prevent future such violations or to recover such actual damages as he or she may prove. G. The department shall coordinate with the California Department of Public Health, the California Department of Tax and Fee Administration, and other state or local enforcing agencies to report suspected violations of state tobacco laws, including the sale of flavored tobacco products or tobacco product flavor enhancers, and to facilitate the seizure of illegal products as authorized by California Business and Professions Code Section 22974.2. 238 Attachment A 1 Chapter 8.34 TOBACCO RETAILER LICENSE 2 § 8.34.010 Definitions. 3 The following words and phrases, whenever used in this chapter, shall have the 4 meaning defined in this section unless the context clearly requires otherwise: 5 “Characterizing flavor” means a distinguishable taste or aroma, or both, other 6 than the taste or aroma of tobacco, imparted by a tobacco product or any byproduct 7 produced by the tobacco product. Characterizing flavors include, but are not limited to, 8 tastes or aromas relating to any fruit, chocolate, vanilla, honey, candy, cocoa, dessert, 9 alcoholic beverage, menthol, mint, wintergreen, herb, or spice. A tobacco product shall 10 not be determined to have a characterizing flavor solely because of the use of additives 11 or flavorings or the provision of ingredient information. Rather, it is the presence of a 12 distinguishable taste or aroma, or both, that constitutes a characterizing flavor. 13 “City” means the City of Palm Desert. 14 “Constituent” means any ingredient, substance, chemical, or compound, other 15 than tobacco, water, or reconstituted tobacco sheet, that is added by the manufacturer 16 to a tobacco product during the processing, manufacture, or packing of the tobacco 17 product. 18 “Consumer” means a person who purchases a tobacco product for consumption. 19 “Coupon” means any voucher, rebate, card, paper, note, form, statement, ticket, 20 image, or other issue, whether in paper, digital, or other form, used for commercial 21 purposes to obtain an article, product, service, or accommodation wit hout charge or at a 22 discounted price. 23 “Department” means the Development Services Department of the city. 24 “Electronic smoking device” means any device that may be used to deliver any 25 aerosolized or vaporized substance to the person inhaling from the device, including, 26 but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Electronic 27 smoking device includes any component, part, or accessory of the device, and also 28 includes any substance that may be aerosolized or vaporized by such device, whether 29 or not the substance contains nicotine, and whether natural or synthetic. Electronic 30 smoking device does not include any product that has been approved by the United 31 States Food and Drug Administration for sale as a tobacco cessation product or for 32 other therapeutic purposes where such product is marketed and sold solely for such an 33 approved purpose. 34 “Flavored tobacco product” means any tobacco product that contains a 35 constituent that imparts a characterizing flavor, as defined in Californi a Health and 36 Safety Code Section 104559.5(a)(1), or any tobacco product, other than looseleaf 37 239 tobacco, a premium cigar, or a shisha tobacco product, that is not listed on the 1 Unflavored Tobacco List established by the California Attorney General pursuant to 2 California Health and Safety Code Section 104559.1. 3 “Full retail price” means the price listed for a tobacco product on its packaging or 4 on any related shelving, advertising, or display where the tobacco product is sold or 5 offered for sale, plus all applicable taxes and fees if such taxes and fees are not 6 included in the listed price. 7 “Kratom” means the plant Mitragyna speciosa, whether growing or not, and any 8 compound, manufacture, salt, derivative, mixture, or preparation of that plant, including 9 its leaves, and any product containing mitragynine, speciociliatine, speciogynine, 10 paynantheine, or 7-hydroxymitragynine (also known as 7-OH), whether natural or 11 synthesized. 12 “Kratom leaf” means the leaf of the kratom plant, also known as Mitragyna 13 speciosa, in any form, but without chemical alternation beyond traditional drying or 14 grinding. 15 “Kratom leaf extract” means the material obtained by extraction of kratom leaves 16 by any means, provided that the extraction process does not introduce synthetic or 17 chemically altered kratom alkaloids. 18 “Kratom product” means a product consisting of kratom leaf, kratom leaf extract, 19 or both; any part of a leaf of the plan t Mitragyna speciosa in fresh, dehydrated or dried 20 form or a kratom extract or any product that contains any kratom alkaloid or metabolite. 21 “Labeling” means written, printed, pictorial, or graphic matter upon any tobacco 22 product or any of its packaging. 23 “License” means a valid tobacco retailer’s license issued by the department to a 24 person to act as a tobacco retailer. 25 “Looseleaf tobacco” consists of cut or shredded pipe tobacco, usually sold in 26 pouches, excluding any tobacco product which, because of its appearance, type, 27 packaging, or labeling, is suitable for use and likely to be offered to, or purchased by, 28 consumers as tobacco for making cigarettes, including roll-your-own cigarettes. 29 “Natural kratom leaf product” consisting of kratom leaf, kratom leaf extract, or 30 both, that has not been chemically altered or adulterated with synthetic or concentrated 31 kratom alkaloids or derivatives, including, but not limited to 7-hydroxymitragynine in 32 concentrations exceeding levels that occur naturally in kratom le af. 33 “Packaging” means a pack, box, carton, or container of any kind or, if no other 34 container, any wrapping (including cellophane) in which a tobacco product is sold, or 35 offered for sale, to a consumer. 36 240 “Person” means any natural person partnership, cooperative association, private 1 corporation, personal representative, receiver, trustee, assignee or any other legal 2 entity. 3 “Pharmacy” means any retail establishment in which the profession of pharmacy 4 is practiced by a pharmacist licensed by the State of California in accordance with the 5 Business and Professions Code and where prescription pharmaceuticals are offered for 6 sale, regardless of whether the retail establishment sells other retail goods in addition to 7 prescription pharmaceuticals. 8 “Proprietor” means a person with an ownership or managerial interest in a 9 business. An ownership interest shall be deemed to exist when a person has a ten 10 percent or greater interest in the stock, assets, or income of a business other than the 11 sole interest of security for debt. A managerial interest shall be deemed to exist when a 12 person can or does have, or can or does share, ultimate control over the day -to-day 13 operations of a business. 14 “Tobacco product” means any substance containing tobacco leaf, including, but 15 not limited to, cigarettes, cigars, pipe tobacco, snuff chewing tobacco, dipping tobacco, 16 bidis, or any other preparation of tobacco. 17 “Self-service display” means the open display or storage of tobacco products in a 18 manner that is physically accessible to the general public without the assistance of the 19 retailer or employee of the retailer and a direct face -to-face transfer between the 20 purchaser and the retailer or employee of the retailer. A vending machine is a form of 21 self-service display. 22 “Shisha tobacco product” means a tobacco product smoked or intended to be 23 smoked in a hookah. Shisha tobacco product includes, and may be referred to as, 24 hookah tobacco, waterpipe tobacco, maassel, narghile, and argileh. Shisha tobacco 25 product does not include any electronic devices, such as an electronic hookah, 26 electronic cigarette, or electronic tobacco product. 27 “Synthesized” means an alkaloid or alkaloid derivative that has been created by 28 chemical synthesis or biosynthetic means (include but not limited to: fermentation, 29 recombinant techniques, yeast derived enzymatic techniques) rather than traditional 30 food preparation techniques such as heating or extracting. It also includes alkaloids that 31 have been further exposed to chemicals or processes that would confer a structural 32 change in the alkaloids contained within the extract. 33 “Synthetic kratom alkaloid” means any kratom alkaloid or derivative that has 34 been created, isolated, increased, or modified through chemical synthesis, biosynthesis, 35 fermentation, recombinant techniques, enzymatic processing, or other processe s that 36 materially alter the naturally occurring alkaloid profile. 37 “Synthetic kratom product” means any product containing a synthetic kratom 38 alkaloid, including synthesized or chemically altered 7-hydroxymitragynine (7-OH), 39 regardless of labeling or marketing. 40 241 “Tobacco paraphernalia” means cigarette papers or wrappers, pipes, holders of 1 smoking materials of all types, cigarette rolling machines, and any other item designed 2 for the smoking or ingestion of or marketed for the consumption, use, or preparation of 3 tobacco products, as defined in California Health and Safety Code Section 4 104559.5(a)(17)(A)(iii). 5 “Tobacco product” means any substance containing tobacco leaf, including, but 6 not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, 7 bidis, or any other preparation of tobacco product as defined in California Health and 8 Safety Code Section 104559.5(a)(17), including, but not limited to, any product 9 containing, made, or derived from tobacco or nicotine intended for human consumption, 10 electronic devices that deliver nicotine or other vaporized liquids, and any component, 11 part, or accessory of a tobacco product. Tobacco product does not include any product 12 that has been approved by the United States Food and Drug Administration for sale as 13 a tobacco cessation product or for other therapeutic purposes where such product is 14 marketed and sold solely for such an approved purpose. 15 “Tobacco product flavor enhancer” means a product designed, manufactured, 16 produced, marketed, or sold to produce a characterizing flavor when added to a tobacco 17 product, as defined in California Health and Safety Code Section 104559.5(a)(18). 18 “Tobacco retailer” means any person who sells, offers for sale, or does or offers 19 to exchange for any form of consideration, tobacco, tobacco products, or tobacco 20 paraphernalia. “Tobacco retailing” shall mean the doing of any of these things. This 21 definition is without regard to the quantity of tobacco, tobacco products, or tobacco 22 paraphernalia sold, offered for sale, exchanged, or offered for exchange. 23 § 8.34.020 Requirements. 24 A. It is unlawful for any person to act as a tobacco retailer without first 25 obtaining and maintaining a valid tobacco retailer’s license pursuant to this chapter for 26 each location at which that activity is to occur. No license may issue to authorize 27 tobacco retailing at other than a fixed location. For example, tobacco retailing by 28 persons on foot and tobacco retailing from vehicles are prohibited. No license may be 29 issued to authorize sales of tobacco products at a temporary event, such as a festival or 30 farmers’ market. 31 B. The payment of the license fee designated in Section 8.34.060 confers 32 paid status upon a license for a term of one year. Each tobacco retailer shall apply for 33 the renewal of his or her tobacco retailer’s license no later than thirty (30) days prior to 34 expiration of the payment term. A license that is not renewed in a timely manner shall 35 expire at the end of its term, and the tobacco retailer must obtain a new license prior to 36 any further sale, offer for sale, or distribution of any tobacco product. 37 C. Nothing in this chapter shall be construed to grant any person obtaining 38 and maintaining a tobacco retailer’s license any status or right other than the right to act 39 as a tobacco retailer at the location in the city identified on the face of the permit. For 40 242 example, nothing in this chapter shall be construed to render inapplicable, supersede, 1 or apply in lieu of any other provision of applicable law, including, without limitation, any 2 condition or limitation on smoking in enclosed places of employment made applicable to 3 business establishments by California Labor Code Section 6404.5 or the prohibition on 4 the sale of flavored tobacco products and tobacco product flavor enhancers under 5 California Health and Safety Code Section 104559.5. All licenses are issued subject to 6 the city’s right to amend this chapter from time to time, and tobacco retailers shall 7 comply with all provisions of this chapter, as amended. 8 D. It is unlawful for any person to sell, offer for sale, or possess with the 9 intent to sell or offer for sale, a flavored tobacco product or a tobacco product flavor 10 enhancer, except as permitted under California Health and Safety Code Section 11 104559.5(c), (d), and (e) for flavored shisha tobacco products, premium cigars sold in 12 cigar lounges, and looseleaf tobacco. There shall be a rebuttable presumption that a 13 tobacco product is a flavored tobacco product if a manufacturer or any of the 14 manufacturer’s agents or employees, in the course of their agency or employment, has 15 made a statement or claim directed to consumers or to the public that the tobacco 16 product has or produces a characterizing flavor, including, but not limited to, text, color, 17 and/or images on the product’s labeling or packaging that are used to explicitly or 18 implicitly communicate that the tobacco product has a characterizing flavor. 19 E. A tobacco retailer’s permit issued to a hookah tobacco retailer shall only 20 authorize the sale of flavored shisha tobacco products if the retailer complies with all 21 conditions set forth in California Health and Safety Code Section 104559.5(c), including 22 maintaining a valid state cigarette and tobacco products retailer license issued by the 23 California Department of Tax and Fee Administration, prohibiting persons under 21 24 years of age from entering the premises at any time, and operating in accordance with 25 all state and local laws related to tobacco sales and consumption, including, but not 26 limited to, California Labor Code Section 6404.5. 27 F. No tobacco retailer shall violate, or cause or allow the tobacco retailer’s 28 agents or employees to violate, any provision of this chapter or any other local, state, or 29 federal law applicable to tobacco products or tobacco retailing. 30 G. Tobacco retailers are responsible for the actions of their employees and 31 agents relating to the sale, offer to sell, and furnishing of tobacco products at the retail 32 location. The sale of any tobacco product by an employee shall be considered an act of 33 the tobacco retailer, and the license holder shall be responsible for any monetary 34 penalties levied. 35 H. Nothing in this chapter shall be construed to penalize the purchase, use, 36 or possession of a tobacco product by any person not engaged in tobacco retailing. 37 I. No tobacco retailer shall do any of the following: (1) Honor or redeem, or 38 offer to honor or redeem, a coupon to allow a consumer to purchase a tobacco product 39 for less than full retail price; (2) Sell any tobacco product to a consumer through a 40 multiple package discount or otherwise provide any such product to a consumer for less 41 243 than the full retail price in consideration for the purchase of any tobacco product or any 1 other item; or (3) Provide any free or discounted item to a consumer in consideration for 2 the purchase of any tobacco product. 3 J. No person or tobacco retailer shall sell or offer to sell any electronic 4 smoking device that delivers natural or synthetic nicotine or any other substance(s) to 5 the person inhaling from the device. This includes any component, part, or accessory 6 intended or reasonably expected to be used with the electronic smoki ng device, 7 whether or not sold separately. 8 K. No pharmacy or pharmacy employee or agent shall sell or offer to sell any 9 tobacco product. The department shall not issue any new, or renew any existing, 10 license for any pharmacy. 11 L. No tobacco retailer or other person shall sell or offer for sale any tobacco 12 product to any consumer unless the tobacco product: (1) is sold in the original 13 manufacturer’s packaging intended for sale to consumers; (2) conforms to all applicable 14 federal labeling requirements; and (3) conforms to all applicable child-resistant 15 packaging requirements. 16 M. Tobacco retailing by means of a self -service display is prohibited. All sales 17 of tobacco products and tobacco paraphernalia shall be conducted in person, over the 18 counter, at the permitted location. 19 N. Tobacco retailers shall post conspicuously, at each point of purchase, a 20 notice stating that selling tobacco products to anyone under 21 years of age is illegal 21 and subject to penalties. The form and content of such notice shall be subject to the 22 approval of the department. 23 O. No tobacco retailer or other person shall sell or offer to sell a tobacco 24 product to another person without first verifying by means of government -issued 25 photographic identification that the recipient is at least 21 years of age. 26 P. No tobacco retailer shall allow, at its retail location, any individual who is 27 younger than 21 years of age to sell or offer to sell tobacco products. 28 Q. Kratom Regulations 29 1. No person or business shall sell, offer for sale, or distribute any synthetic 30 kratom product within the City. 31 2. This chapter shall not prohibit the sale or distribution of natural kratom leaf 32 products that do not contain synthetic or chemically altered kratom 33 alkaloids. 34 3. No person under twenty-one (21) years of age shall possess any kratom 35 or kratom product within the City. 36 4. This chapter shall not apply to possession of kratom or kratom products by 37 persons twenty-one (21) years of age or older, provided such products are 38 otherwise lawful under this chapter. 39 244 5. There shall be a rebuttable presumption that a product is a synthetic 1 kratom product if a manufacturer or any of the manufacturer’s agents or 2 employees, in the course of their agency or employment, has made a 3 statement or claim directed to consumers or to the public that the product 4 has or produces effects similar to a synthetic kratom product, including, 5 but not limited to, text, color, and/or images on the product’s labeling or 6 packaging that are used to explicitly or implicitly communicate that the 7 product is a synthetic kratom product. 8 R. It is unlawful for any person to sell, offer for sale, or distribute any kratom product 9 to a person under twenty-one (21) years of age. 10 S. No person or tobacco retailer shall sell or offer for sale any natural kratom leaf 11 product unless it is: (1) is sold in the original manufacturer’s packaging intended 12 for sale to consumers; (2) conforms to all applicable federal labeling 13 requirements; and (3) conforms to all applicable child-resistant packaging 14 requirements. 15 T. Natural kratom leaf product retailing by means of a self-service display is 16 prohibited. All sales of natural kratom leaf products shall be conducted in person, 17 over the counter. 18 U. Retailers selling natural kratom leaf products shall post conspicuously, at each 19 point of purchase a notice stating that selling kratom products to anyone under 20 21 years of age is illegal and subject to penalties. The form and content of such 21 notice shall be subject to the approval of the department. 22 V. No retailer or other person shall sell or offer to sell a natural kratom leaf product 23 to another person without first verifying by means of government -issued 24 photographic identification that the recipient is at least twenty-one (21) years of 25 age. 26 27 § 8.34.030 Application procedure. 28 Application for a tobacco retailer’s license shall be submitted in the name of each 29 proprietor proposing to conduct retail tobacco sales and shall be signed by each 30 proprietor or an authorized agent thereof. It is the responsibility of each proprietor to be 31 informed of the laws affecting the issuance of a tobacco retailer’s license, including, but 32 not limited to, California Health and Safety Code Section 104559.5 prohibiting the sale 33 of flavored tobacco products and tobacco product flavor enhancers and the kratom 34 regulations under this chapter. A license that is issued in error or on the basis of false or 35 misleading information supplied by a proprietor may be revoked pursuant to Section 36 8.34.090 of this chapter. No license holder may rely on the issuance of a license as a 37 determination by the City that the license holder has complied with all laws applicable to 38 tobacco retailing. All applications shall be submitted on a form supplied by the 39 department and shall contain the following information: 40 A. The name, address, and telephone number of each proprietor; 41 245 B. The business name, address, and telephone number of the single fixed 1 location for which a tobacco retailer’s license is sought; 2 C. The name and mailing address authorized by each proprietor to receive all 3 license-related communications and notices (the “authorized address”). If an authorized 4 address is not supplied, each proprietor shall be understood to consent to the provision 5 of notice at the business address specified in subsection (B) of this section; 6 D. Whether or not any proprietor has previously been issued a license 7 pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the 8 dates of the suspension period or the date of revocation; 9 E. A statement signed by each proprietor affirming that th e business will 10 comply with all state and local laws related to the sale of tobacco products, including the 11 prohibition on flavored tobacco products and tobacco product flavor enhancers under 12 California Health and Safety Code Section 104559.5 and the kratom regulations under 13 this chapter; 14 F. For applications by hookah tobacco retailers intending to sell flavored 15 shisha tobacco products, a certification that the business meets all conditions set forth 16 in California Health and Safety Code Section 104559.5(c); 17 G. Proof that the location for which a license is sought has been issued a 18 valid state license for the sale of tobacco products, if the tobacco retailer sells products 19 that require such license; 20 H. A statement whether or not the tobacco retailer or any agent of the 21 tobacco retailer has been found to have violated this chapter or other applicable law 22 governing tobacco products or tobacco retailing and, if so, the dates and locations of all 23 such violations within the previous five (5) years; 24 I. An application for a new or renewal license will be denied if there are any 25 outstanding fines or late fees issued by the department, or during any period of 26 suspension; and 27 J. Such other information as the department deems necessary for the 28 administration or enforcement of this chapter. 29 § 8.34.040 Issuance of license. 30 Upon the receipt of an application for a tobacco retailer’s license and the license 31 fee, the department shall issue a license unless substantial record evidence 32 demonstrates one of the following bases for denial: 33 A. The application is incomplete or inaccurate; or 34 B. The application seeks authorization for tobacco retailing by a proprietor for 35 which or whom a suspension is in effect pursuant to Section 8.34.080 of this chapter; or 36 246 by a proprietor which or who has had a license revoked pursuant to Section 8.34.090 of 1 this chapter; or 2 C. The application seeks authorization for tobacco or kratom retailing that is 3 prohibited pursuant to Section 8.34.020 of this chapter (e.g., mobile vending), that is 4 unlawful pursuant to this Palm Desert code (e.g., the zoning code), or that is unlawful 5 pursuant to any other local, state or federal law, including, but not limited to, the 6 prohibition on the sale of flavored tobacco products and tobacco product flavor 7 enhancers under California Health and Safety Code Section 104559.5. 8 D. For applications by hookah tobacco retailers intending to sell flavored 9 shisha tobacco products, the application fails to demonstrate compliance with all 10 conditions set forth in California Health and Safety Code Section 104559.5(c). 11 E. The sale of tobacco products and accessories is prohibited in City-owned 12 structures and in any area of a structure leased by the City. 13 § 8.34.050 Display of license. 14 Each license shall be prominently displayed in a publicly visible location at the 15 licensed premises. 16 § 8.34.060 Fees for license. 17 The fee to issue or to renew a tobacco retailer’s license shall be established by 18 resolution of the city council of Palm Desert, California. The fee shall be calculated so 19 as to recover no more than the total cost of license administration and enforcement, 20 including, for example, but not limited to, issuing the license, administering the license 21 program, retailer education, retailer inspection and compliance checks, documentation 22 of violations, and prosecution of violators. Fees are nonrefundable except as may be 23 required by law. 24 § 8.34.070 Licenses nontransferable. 25 A tobacco retailer’s license is nontransferable. If the information required in the 26 license application pursuant to Section 8.34.030, subsections (A) through (C), changes 27 a new tobacco retailer’s license is required before the business may continue to act as a 28 tobacco retailer. For example, if a proprietor to whom a license has been issued 29 changes business location, that proprietor must apply for a new license prior to acting 30 as a tobacco retailer at the new location. Or if the business is sold, the new owner must 31 apply for a license for that location before acting as a tobacco retailer. Any attempted 32 transfer shall render the license null and void. Notwithstanding any other provision of 33 this chapter, prior violations of this chapter at a location shall continue to be counted 34 against that location and license ineligibility and suspension periods shall continue to 35 apply to that location unless: (1) One hundred percent of the interest in the stock, 36 assets, or income of the business, other than a security interest for the repayment of 37 debt, has been transferred to the new owner(s); and (2) the City is provided with clear 38 and convincing evidence, including an affidavit, that the business has been acquire d in 39 247 an Arm’s Length Transaction. An Arm’s Length Transaction, for the purposes of this 1 section, means a transaction in which two or more unrelated and unaffiliated parties 2 agree on the transfer in question; the parties act independently and in their own s elf-3 interest; and the parties have equal bargaining power and symmetric information, 4 leading the parties to agree upon fair-market terms. 5 § 8.34.080 License violation. 6 A. Violation of Tobacco and Kratom-Related Laws. It is a violation of this 7 chapter for a person, licensee, or his or her agent or employee to violate any local, 8 state, or federal tobacco-related law, including, but not limited to, the prohibition on the 9 sale, offer for sale, or possession with intent to sell flavored tobacco products or 10 tobacco product flavor enhancers under California Health and Safety Code Section 11 104559.5 or the kratom regulations in this chapter 12 B. License Compliance Monitoring. Compliance with this chapter shall be 13 monitored by the code compliance division. The city council anticipates that compliance 14 checks of a sample of tobacco retailers selected or based on complaints will be 15 conducted as necessary during each twelve-month period. Compliance checks shall 16 take place during normal business hours, with or without notice. If a violation has 17 occurred, the tobacco retailer shall be inspected as needed to ensure compliance. All 18 permitted premises must be open to inspection by the department during regular 19 business hours and may include the use of audio or video recording equipment to 20 document illegal sales or attempted sales. The department shall coordinate with the 21 California Department of Public Health and the California Department of Tax and Fee 22 Administration to ensure compliance with state tobacco laws, including the flavored 23 tobacco sales restrictions under California Health and Safety Code Section 104559.5 . 24 § 8.34.090 Suspension, expiration, or revocation of license. 25 A. Suspension or Revocation of License for Violation. In addition to any other 26 penalty authorized by law, a tobacco retailer’s license shall be suspended or revoked if 27 the department finds, after notice to the licensee and opportunity to be heard, that the 28 licensee or his or her agents or employees has or have violated the requirements of this 29 chapter or other conditions of the license imposed pursuant to Section 8.34.080. 30 1. Upon a finding by the department of a first license violation with in 31 any sixty-month period, the license shall be suspended for thirty (30) days. 32 2. Upon a finding by the department of a second license violation 33 within any sixty-month period, the license shall be suspended for ninety (90) days. 34 3. Upon a finding by the department of a third license violation within 35 any sixty-month period, the license shall be suspended for one (1) year. 36 4. Upon a finding by the department of a fourth license violation within 37 any sixty-month period, the license shall be revoked and the proprietor or proprietors 38 who had been issued the license shall never again be issued a tobacco retailer’s license 39 pursuant to this chapter. 40 248 B. Expiration of License for Failure to Pay Renewal Fee. A tobacco retailer’s 1 license that is not timely renewed pursuant to Section 8.34.020(B) shall automatically 2 expire at the end of its term, and the tobacco retailer must obtain a new license prior to 3 any further sale, offer for sale, or distribution of an y tobacco product. 4 C. Revocation of License Issued in Error. A tobacco retailer’s license shall be 5 revoked if the department finds, after notice and opportunity to be h eard, that one or 6 more of the bases for denial of a license under Section 8.34.040 existed at the time 7 application was made or at any time before the license issued. The revocation shall be 8 without prejudice to the filing of a new application for a license . 9 D. Appeal of Suspension or Revocation. A decision of the department to 10 revoke or suspend a license is appealable to the city council and must be filed with the 11 city clerk within ten (10) days of mailing of the department’s decision. An appeal shall 12 stay all proceedings in furtherance of the appealed action. A suspension or revocation 13 pursuant to subsection (B) is not subject to appeal. 14 E. Coordination with State Penalties. In addition to the penalties described in 15 this section, violations of California Health and Safety Code Section 104559.5, including 16 the sale of flavored tobacco products or tobacco product flavor enhancers, may result in 17 civil penalties and license suspension or revocation by the California Department of Tax 18 and Fee Administration as prescribed in California Business and Professions Code 19 Sections 22974.2 and 22958. 20 § 8.34.100 Administrative fine. 21 A. Grounds for Fine. If the department finds, based on substantial evidence, 22 that (1) any unlicensed person, including a person named on a revoked or suspended 23 license, has engaged in tobacco retailing in violation of Section 8.34.020 of this chapter; 24 or (2) that any person has violated the kratom regulations in Section 8.34.020 of this 25 chapter, the department shall fine that person as follows: 26 1. A fine not exceeding one hundred dollars ($100) for a first violation 27 in any twelve-month period; 28 2. A fine not exceeding two hundred dollars ($200) for a second 29 violation in any twelve-month period; or 30 3. A fine not exceeding five hundred dollars ($500) for a third or 31 subsequent violation in any twelve-month period. 32 Each day that such a person engages in tobacco retailing or unlawful sale of 33 kratom shall constitute a separate violation. A fine shall be imposed in the amounts set 34 forth in this subsection upon findings made by the department that the person, or any 35 agent or employee of the person, has violated any provision of this chapter. Any 36 administrative fine shall be imposed solely against the tobacco retailer and/or seller of 37 kratom, not the tobacco retailer’s or seller of kratom’s employees or agents. 38 249 B. Notice of Violation. A notice of violation and of intent to impose a fine shall 1 be personally served on, or sent by certified mail to, the person or persons subject to 2 the fine. The notice shall contain a description of the facts upon which the asserted 3 violation is based and include an advisement of the right to request a hearing to contest 4 the fine. Any request for a hearing must be in writing and must be received by the 5 department within ten (10) calendar days of personal service of the notice on the person 6 or persons subject to a fine or within fifteen (15) calendar days if the person or persons 7 subject to a fine are served by mail. 8 C. Imposition of Fine. If no request for a hearing is timely received, the 9 department’s determination on the violation and the imposition of a fine shall be final 10 and payment shall be made within thirty (30) calendar days of written demand made in 11 the manner specified above for a notice of violation. If the fine is not paid within that 12 time, the fine may be collected, along with interest at the legal rate, in any manner 13 provided by law. In the event that a judicial action is necessary to compel payment of 14 the fine and accumulated interest, the person or persons subject to the fine shall also be 15 liable for the costs of the suit and attorney’s fees incurred by the city in collecting the 16 fine. 17 D. Notice of Hearing. If a hearing is requested pursuant to subsection (B) of 18 this section, the department shall provide written notice, with in forty-five (45) calendar 19 days of its receipt of the hearing request, to the person or persons subject to a fine of 20 the date, time, and place of the hearing in the manner specified above for a notice of 21 violation. 22 E. Hearing Decision. The hearing officer shall render a written decision and 23 findings within twenty (20) working days of the hearing. Copies of the decision and 24 findings shall be provided to the person or persons subject to a fine in the manner 25 specified above for a notice of violation. 26 F. Finality of the Hearing Officer’s Decision. The decision of the hearing 27 officer shall be the final decision of the city. 28 G. Appeal to Superior Court of Limited Jurisdiction. Notwithstanding the 29 provisions of Section 1094.5 or 1094.6 of the Code of Civil Procedure, withi n twenty 30 (20) days after personal service of the hearing officer’s decision and findings, or within 31 twenty-five (25) days if served by mail, any person subject to a fine may seek review of 32 the hearing officer’s decision and findings by the superior court of limited jurisdiction. A 33 copy of the notice of appeal to the superior court shall be timely served in person or by 34 first-class mail upon the department by the contestant. The appeal shall be heard de 35 novo, except that the contents of the department’s file in the case shall be received in 36 evidence. A copy of the records of the department of the notices of the violation and of 37 the hearing officer’s decision and findings shall be admitted into evidence as prima facie 38 evidence of the facts stated therein. 39 H. Failure to Pay Fine. If no timely notice of appeal to the superior court is 40 filed, or the department is not timely served with a copy of a notice of appeal, the 41 250 hearing officer’s decision and findings shall be deemed confirmed and the fine shall be 1 collected pursuant to subsection (C) of this section. 2 I. A tobacco retailer without a current valid license shall: (1) Keep all tobacco 3 and/or natural kratom leaf products out of public view. The public display of tobacco 4 products in violation of this provision shall constitute tobacco retailing without a license; 5 and (2) Not display any advertisement relating to tobacco products that offers the sale 6 of such products from the tobacco retailer’s location. 7 J. State Penalties. Administrative fines imposed under this section are in 8 addition to any civil penalties or license suspension or revocation imposed by the 9 California Department of Public Health, the California Department of Tax and Fee 10 Administration, or other enforcing agencies under California Health and Safety Code 11 Section 104559.5 or Business and Professions Code Sections 22974.2 and 22958 for 12 violations of state tobacco laws, including the sale of flavored tobacco products or 13 tobacco product flavor enhancers. 14 K. Infraction. The city may issue an infraction citation to any property owner, 15 manager, agent, employee or operator, pursuant to the provisions set forth in 16 Chapter 1.08, Citations for Code Violations, including, but not limited to, the imposition 17 of any and all criminal penalties set forth therein if there is any violation of this chapter 18 committed, caused or maintained by any of the above parties. Unless otherwise 19 provided herein, any person convicted of an infraction shall, for each separate violation 20 of this chapter be subject to: 21 (1) a fine in an amount not to exceed one hundred dollars ($100) for a first 22 conviction of an offense; 23 (2) a fine in an amount not to exceed two hundred dollars ($200) for a second 24 conviction of the same offense within a twelve-month period of the date of the 25 first offense; and 26 (3) a fine in an amount not to exceed five hundred dollars ($500) for the third 27 conviction of the same offense within a twelve-month period of the date of the 28 first offense. 29 30 § 8.34.110 Enforcement. 31 The remedies provided by this chapter are cumulative and in addition to any 32 other remedies available at law or in equity. 33 A. Causing, permitting, aiding, abetting or concealing a violation of any 34 provision of this chapter shall constitute a violation. 35 B. In addition to the administrative enforcement procedures provided by 36 Section 8.34.090 of this chapter, violations of this chapter may, in the discretion of the 37 251 prosecutor, be prosecuted as infractions or as otherwise provided by state law, 1 including California Health and Safety Code Section 104559.5 and Business and 2 Professions Code Sections 22974.2 and 22958. 3 C. Violations of this chapter are declared to be public nuisances , subject to 4 all applicable civil, administrative, and criminal remedies and penalties according to the 5 provisions and procedures contained in this Municipal Code and state law, including, 6 but not limited to, an action for abatement or injunctive relief . 7 D. Violations of this chapter are hereby declared to be unfair business 8 practices and are presumed to at least nominally damage each and every resident of 9 the community in which the business operates. 10 E. In addition to other remedies provided by this chapter or by other law, any 11 violation of this chapter may be remedied by a civil action brought by the city attorney, 12 including, for example, administrative or judicial nuisance abatement proceedings, civil 13 or criminal code enforcement proceedings and suits for injunctive relief. 14 F. Any person acting for the interests of itself, its members or the general 15 public may bring an action for injunctive relief to prevent future such violations or to 16 recover such actual damages as he or she may prove. 17 G. The department shall coordinate with the California Department of Public 18 Health, the California Department of Tax and Fee Administration, and other state or 19 local enforcing agencies to report suspected violations of state tobacco laws, including 20 the sale of flavored tobacco products or tobacco product flavor enhancers, and to 21 facilitate the seizure of illegal products as authorized by California Business and 22 Professions Code Section 22974.2. 23 252 Chapter 8.36 Regulation and Prohibition of Smoking § 8.36.010 Purpose of chapter. Smoking of tobacco, or any other weed or plant, is a positive danger to health and a cause of material annoyance, inconvenience, discomfort and health hazard to those who are present in confined places. In addition, the California Air Resources Board has placed secondhand smoke in the same category as the most toxic automotive and industrial air pollutants by categorizing it as a toxic air contaminant for which there is no safe level of exposure. Therefore, it is the city’s intent to provide for the public health, safety and welfare, by prohibiting the smoking of tobacco, or any other weed or plant, in public places and places of employment, except in designated smoking area s as set forth herein. Smoking tobacco or any other weed, plant, or substance, including through electronic smoking devices, poses a danger to public health and causes material annoyance, inconvenience, discomfort, and health hazards to those present in co nfined places. The California Air Resources Board has categorized secondhand smoke as a toxic air contaminant with no safe level of exposure, placing it in the same category as the most toxic automotive and industrial air pollutants. Therefore, it is the C ity’s intent to protect public health, safety, and welfare by prohibiting the smoking of tobacco or any other weed, plant, or substance in public places and places of employment, except in designated smoking areas as set forth herein. § 8.36.020 Definitions. The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise: “Business” means any sole proprietorship, partnership, joint venture, corporation , association, or other entity formed for profit-making purposes. “City” means the City of Palm Desert and its related entities, including the Palm Desert Housing Authority. “Common area” means every unenclosed area of a multiunit residence that residents of more than one (1) unit of that multiunit residence are entitled to enter or use, including, for example, paths, courtyards, playgrounds, swimming pools, parking lots, and picnic areas. “Dining area” means any area, including streets and sidewalks, which is available to or customarily used by the general public or an employee, and which is designed, established, or regularly used for consuming food or drink. “Electronic smoking device” means any device that may be used to deliver any aerosolized or vaporized substance to the person inhaling from the device, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Electronic smoking device includes any component, part, or accessory of the device, and also includes any substance that may be aerosolized or vaporized by such device, whether or not the substance contains nicotine, and whether natural or synthetic. Electronic smoking device 253 does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marketed and sold solely for such an approved purpose. “Employee” means any person who is employed or retained as an independent contractor by any employer or nonprofit entity in consideration for direct or indirect monetary wages or profit, or any person who volunteers his or her services for an employer or nonprofit entity. “Employer” means any person, business, entity or nonprofit entity that retains the service of one (1) or more employees. “Enclosed area” means an area in which outside air cannot circulate freely to all parts of the area, and includes an area that has: 1. Any type of overhead cover whether or not that cover includes vents or other openings and at least three (3) walls or other vertical boundaries of any height whether or not those boundaries include vents or other openings; or 2. Four walls or other vertical boundaries that exceed six (6) feet in height whether or not those boundaries include vents or other openings. “Multiunit residence” means a residential property containing two (2) or more units. “Nonprofit entity” means any entity that meets the requirements of California Corporations Code Section 5003 as well as any corporation, unincorporated ass ociation or other entity created for charitable, religious, philanthropic, education, political, social or similar purposes, the net proceeds of which are committed to the promotion of the objectives or purposes of the entity and not to private gain. A government agency is a nonprofit entity within the meaning of this chapter. “Person” means any natural person, business, cooperative association, nonprofit entity, personal representative, receiver, trustee, assignee, or any other legal entity including government agencies. "Place of employment" means any enclosed areas under the control of a public or private employer which employees normally frequent during the course of employment, including, but not limited to, work areas, employee lounges, conference room s, and employee cafeterias. A private residence is not a place of employment, except for childcare facilities in private homes. “Pharmacy” means any retail establishment in which the profession of pharmacy is practiced by a pharmacist licensed by the State of California in accordance with the Business and Professions Code and where prescription pharmaceuticals are offered for sale, regardless of whether the retail establishment sells other retail goods in addition to prescription pharmaceuticals. 254 “Primary entrance” means the entrance to a building or business through which the majority of patrons enter. A building or business has only one primary entrance. Where the door into the establishment is at the end of a corridor formed by two or more vertical walls or barriers, with or without overhead cover, the primary entrance shall be deemed to be at the end of the corridor open to the exterior. “Public place” means: 1. Any area to which the public is invited or in which the public is permitted, including, but not limited to, shopping malls, retail stores, retail service establishments, retail food production and marketing establishments, r estaurants, theaters, waiting rooms, reception areas, educational facilities, health facilities, public transportation facilities, and their associated parking areas. A private residence or the fairway or putting green of a golf course within a private country club is not a public place; 2. Areas measured a distance of forty (40) feet from the entrances and exits to City-owned public places; 3. Areas measured a distance of twenty (20) feet from the primary entrances to publicly or privately-owned commercial, industrial, institutional, or office professional buildings; 4. Unenclosed areas owned by the City, including, but not limited to, City-owned property, parks, playgrounds, restrooms, baseball and soccer fields, except the golf course area of Desert Willow, or where specific signs are posted permitting such smoking; 5. Unenclosed public events, including, but not limited to, sports events, entertainment, speaking performances, ceremonies, and fairs; 6. Hotels, except in designated areas. “Reasonable distance” means a distance of twenty (20) feet or, with respect to a designated smoking area or such larger area as the city manager reasonably determines in writing to be necessary in a given circumstance to ensure that occupants of an area in which smoking is prohibited are not exposed to secondhand smoke created by smokers outside the area. “Secondary entrance” means any entrance to a building or business that is not the primary entrance. One building or business may have multiple secondary entrances. “Secondhand smoke” means smoke from tobacco or any other weed, plant, or substance created by burning or carrying any lighted pipe, hookah, cigar, cigarette, or electronic smoking device of any kind, and the smoke exhaled by an individual who engages in smoking. “Shopping mall” means any parcel of land zoned and used for retail sales by more than one retailer that is jointly operated or which includes shared parking facilities. 255 “Smoke,” or “smoking” means and includes any of the following: (1) the direct burning or indirect heating of any cigar, cigarette, pipe, electronic smoking device, or any similar kind of smoking equipment or article, using any form of tobacco, plant product, or other combustible substance in any form, or (2) the holding or carrying of a lighted or operated cigar, cigarette, pipe, electronic smoking device, or any other lighted smoking equipment or device, or (3) emitting or exhaling the smoke directly from a cigar, cigarette, pipe, electronic smoking device, or any other lighted smoking equipment or device. Smoke also means the gaseous or vaporous products or particles created by the use of a lighted or operated pipe, cigar, cigarette, electronic smoking device, or other kind of smoking equipment or article. “Tobacco product” means any substance containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, bidis, or any other preparation of tobacco product as defined in California Health and Safety Code Section 104559.5(a)(17), including, but not limited to, any product containing, made, or derived from tobacco or nicotine intended for human consumption, electronic devices that deliver nicotine or other vaporized liquids, and any component, part, or accessory of a tobacco product. Tobacco prod uct does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where such product is marketed and sold solely for such an approved purpose. “Unenclosed area” means any area that is not an enclosed area. § 8.36.030 Prohibition of smoking in unenclosed areas. A. Smoking is prohibited in the unenclosed areas of the following places within the City, except places where smoking is already prohibited by state or federal law, in which case, those laws apply: 1. Public places; 2. Places of employment; 3. Businesses, including, but not limited to, restaurants and bars, and other public accommodations. In addition, smoking is prohibited within a reasonable distance of the primary entrance to a dining area. Where a business has more than one entrance, an outdoor smoking area may be designated within a reasonable distance of one of the secondary entrances. In such case, smoking is prohibited within a reasonable distance of the primary entrance and any other secondary entrances. 4. Common areas of multifamily residential properties owned by the City, except where permitted under Section 8.36.070. B. No person shall dispose of smoking waste or place or maintain a receptacle for smoking waste in an area in which smoking is prohibited by this chapter or other law, including within any reasonable distance required by this chapter. 256 § 8.36.040 Designation of smoking areas. A. Places Where Smoking Permitted. Notwithstanding Section 8.36.030 of this chapter, smoking is permitted in the following locations within the City, unless otherwise provided by state or federal law: 1. Private residential property, other than: (a) those private residential properties used as a child-care or health-care facility subject to licensing requirements when employees, children or patients are present; or (b) home-based business where members of the public are invited. Nothing in this chapter shall require a person or entity who or which owns or controls a private residential property, including, but not limited to, a condominium association or an apartment owner, to permit smoking and such a person may prohibit smoking throughout the property he, she or it owns or controls. 2. Designated areas in shopping mall unenclosed areas, provided that: (a) there is not more than one (1) square foot of area designated for smoking for every twenty thousand (20,000) square feet of rentable space of the shopping mall (provided that each shopping mall may have at least one designated smoking area of forty (40) or fewer square feet in area); (b) the area is prominently marked with signs; (c) it is located the greatest distance practicable, and at least a reasonable distance, from any doorway or opening into an area or any accessway from parking facilities to the retail areas of the shopping mall; (d) smoke is not permitted to enter adjacent areas in which smoking is prohibited by this chapter, other law or by the owner, lessee or licensee of the adjacent property; and (e) the location(s) of the designated smoking area(s) is or are approved in writing by the city manager of the City or designee based on the standards of this subsection and the goals of this chapter. 3. Any unenclosed area in which no nonsmoker is present and, due to the time of day or other factors, it is not reasonable to expect another person to arrive. B. Where smoking areas are designated, existing physical barriers and ventilation systems shall be used to eliminate the toxic effect of smoke in adjacent nonsmoking areas, but employers are not required to incur any expense to make structural or physical modifications in providing these areas. There shall be no designated smoking areas in areas that have a common or shared air space with other areas in whic h smoking is prohibited such as, without limitation, air conditioning systems, heating systems, ventilation systems, entries, doorways, hallways, and stairways or within a reasonable distance of commercial building entries. In all disputes in the work plac e, the rights of the nonsmoker shall be given priority over the rights of the smoker. C. No person shall smoke in an area in which smoking is otherwise permitted by this chapter or other law within a reasonable distance from any primary entrance, opening, crack, or vent into an area in which smoking is prohibited by this chapter, other law or by the owner, lessee or licensee of that area. 257 § 8.36.050 Optional prohibition. All managers and owners of any establishment exempted from the provisions of Section 8.36.070 serving or doing business with the public may, at their discretion, post “No Smoking” signs within various areas of their businesses and utilize the full right of the provision of this chapter. No public place other than those enumerated in Section 8.36.070 shall be designated as a smoking area in its entirety. § 8.36.060 Posting of signs. Signs which designate smoking or no smoking areas established by this chapter shall be clearly, sufficiently, and conspicuously posted in every room, building or other place so covered by this chapter. “No Smoking” signs shall be specifically placed in retail food productions and marketing establishments, including grocery stores and supermarkets open to the public, so they are clearly visible to persons upon enterin g the store, clearly visible to persons in checkout lines and clearly visible to persons at meat and produce counters. The manner of such posting, including the wording, size, color, design and place of posting, whether on the walls, doors, tables, counter s, stands or elsewhere, shall be at the discretion of the owner, operator, manager or other person having control of such room, building or other place, so long as clarity, sufficiency and conspicuousness are apparent in communicating the intent of this chapter. § 8.36.070 Exceptions. Exceptions to the smoking prohibitions of this chapter are as follows: A. Private offices, including those in the work place, designated areas of hotels and motels, areas and rooms while in use for private social functions, private hospital rooms, psychiatric facilities, jails, and stores that deal exclusively in tobacco products and accessories, provided such stores comply with all state and local laws, including California Labor Code Section 6404.5 and California Health and Safety Code Section 104559.5. No pharmacy shall be considered a store that deals exclusively in tobacco products and accessories. B. Fairways or putting greens of golf courses within private country clubs, provided smoking complies with all applicable state and local laws. Notwithstanding the foregoing, nothing in this chapter shall require a person or entity that owns or controls a private country club to permit smoking and such a person or entity may prohibit smoking throughout the property he, she or it owns or controls. C. Areas measured within a twenty-foot zone outside of a building’s primary entrance, as long as the smoker is actively passing through on the way to another destination and so long as the smoke does not enter any indoor area in which smoking is prohibited. D. Any owners or other person having control of a business or other establishment subject to this chapter may apply to the city for an exemption or 258 modification of the provisions of this chapter due to unique or unusual circumstances or conditions. E. Up to twenty-five percent of the contiguous deck area around swimming pools in multifamily residential properties owned by the City. Such designated smoking areas must be clearly signed. § 8.36.080 Nonretaliation. No person or employer shall discharge, refuse to hire or in any manner retaliate against an employee or applicant for employment beca use such employee or applicant exercises any rights afforded by this chapter. § 8.36.090 Enforcement. A. The owner, operator or manager of any facility, business or agency within the purview of this chapter shall comply herewith. Such owner, operator or manager shall post, or cause to be posted, all “No Smoking” signs required by this chapter. Such owner, operator or manager shall not allow service to any person who violates this chapter by smoking in a posted “No Smoking” area. B. It shall be the responsibility of employers to disseminate information concerning the provisions of this chapter to employees. C. The city’s code enforcement officers, police, and fire personnel are authorized to issue citations for violation of the provisions of this chapter. Any peace officer may enforce the provisions of this Chapter. The City’s code compliance department may designate additional persons to monitor and facilitate compliance with this Chapter. D. The City’s code compliance department shall coordinate with the California Department of Public Health and the California Department of Tax and Fee Administration to ensure compliance with state laws regarding smoking and tobacco use, including California Labor Code Section 6404.5. The department may use audio or video recording equipment when conducting inspections to record and document illegal smoking activities. § 8.36.100 Violation—Penalty. A. Any person who violates any provision of this chapter by: (1) smoking in a posted “No Smoking” area; (2) failing to post or cause to be posted a “No Smoking” sign required by this chapter; (3) owning, managing or operating a business or building in which the prohibitions of this chapter are violated; or (4) violating any other provision of this chapter, is deemed guilty of an infraction in accordance with Chapter 1.12 of this code. Violations of this chapter may be criminally prosecuted as infractions or misdemeanors at the discretion of the prosecuting attorney as the interests of justice require. 259 B. Any violation of this chapter is hereby declared to be a nuisance, subject to all applicable civil, administrative, and criminal remedies and penalties according to the provisions and procedures contained in this Municipal Code and state law, including, but not limited to, an action for abatement or injunctive relief. C. Each incident of smoking in violation of this chapter is an infraction subject to: 1) a fine in an amount not to exceed fifty dollars ($50) for a first conviction of an offense; (2) a fine in an amount not to exceed one hundred dollars ($100) for a second conviction of the same offense within a twelve-month period of the date of the first offense; and (3) a fine in an amount not to exceed two hundred and fifty dollars ($250) for the third conviction of the same offense within a twelve-month period of the date of the first offense. 260 1 Chapter 8.36 Regulation and Prohibition of Smoking 2 § 8.36.010 Purpose of chapter. 3 Smoking of tobacco, or any other weed or plant, is a positive danger to health 4 and a cause of material annoyance, inconvenience, discomfort and health hazard to 5 those who are present in confined places. In addition, the California Air Resources 6 Board has placed secondhand smoke in the same category as the most toxic 7 automotive and industrial air pollutants by categorizing it as a toxic air contaminant for 8 which there is no safe level of exposure. Therefore, it is the city’s intent to provide for 9 the public health, safety and welfare, by prohibiting the smoking of tobacco, or any other 10 weed or plant, in public places and places of employment, except in designated 11 smoking areas as set forth herein. The smoking of tobacco, or any other weed, plant, or 12 substance, including through electronic smoking devices, is a danger to public health 13 and a cause of material annoyance, inconvenience, discomfort, and health hazard to 14 those who are present in confined places. The California Air Resources Board has 15 categorized secondhand smoke as a toxic air contaminant with no safe level of 16 exposure, placing it in the same category as the most toxic automotive and industrial air 17 pollutants. Therefore, it is the City’s intent to provide for the public health, safety, and 18 welfare by prohibiting the smoking of tobacco, or any other weed, plant, or substance, in 19 public places and places of employment, except in designated smoking areas as set 20 forth herein. 21 § 8.36.020 Definitions. 22 The following words and phrases, whenever used in this chapter shall have the 23 meanings defined in this section unless the context clearly requires otherwise: 24 “Business” means any sole proprietorship, partnership, joint venture, corporation 25 association, or other entity formed for profit-making purposes. 26 “City” means the City of Palm Desert and its related entities, including the Palm 27 Desert Redevelopment Agency and the Palm Desert Housing Authority. 28 “Common area” means every unenclosed area of a multiunit residence that 29 residents of more than one (1) unit of that multiunit residence are entitled to enter or 30 use, including, for example, paths, courtyards, playgrounds, swimming pools, parking 31 lots, and picnic areas. 32 “Dining area” means any area, including streets and sidewalks, which is available 33 to or customarily used by the general public or an employee, and which is designed, 34 established, or regularly used for consuming food or drink. 35 “Electronic smoking device” means any device that may be used to deliver any 36 aerosolized or vaporized substance to the person inhaling from the device, including, 37 but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah. Electronic 38 261 smoking device includes any component, part, or accessory of the device, and also 1 includes any substance that may be aerosolized or vaporized by such device, whether 2 or not the substance contains nicotine, and whether natural or synthetic. Electronic 3 smoking device does not include any product that has been approved by the United 4 States Food and Drug Administration for sale as a tobacco cessation product or for 5 other therapeutic purposes where such product is marketed and sold solely for such an 6 approved purpose. 7 “Employee” means any person who is employed or retained as an independent 8 contractor by any employer or nonprofit entity in consideration for direct or indirect 9 monetary wages or profit, or any person who volunteers his or her services for an 10 employer or nonprofit entity. 11 “Employer” means any person, business, entity or nonprofit entity that retains the 12 service of one (1) or more employees. 13 “Enclosed area” means an area in which outside air cannot circulate freely to all 14 parts of the area, and includes an area that has: 15 1. Any type of overhead cover whether or not that cover includes 16 vents or other openings and at least three (3) walls or other vertical boundaries of any 17 height whether or not those boundaries include vents or other openings; or 18 2. Four walls or other vertical boundaries that exceed six (6) feet in 19 height whether or not those boundaries include vents or other openings. 20 “Multiunit residence” means a residential property containing two (2) or more 21 units. 22 “Nonprofit entity” means any entity that meets the requirements of California 23 Corporations Code Section 5003 as well as any corporation, unincorporated association 24 or other entity created for charitable, religious, philanthrop ic, education, political, social 25 or similar purposes, the net proceeds of which are committed to the promotion of the 26 objectives or purposes of the entity and not to private gain. A government agency is a 27 nonprofit entity within the meaning of this chapter. 28 “Person” means any natural person, business, cooperative association, nonprofit 29 entity, personal representative, receiver, trustee, assignee, or any other legal entity 30 including government agencies. 31 "Place of employment" means any enclosed areas under th e control of a public or 32 private employer which employees normally frequent during the course of employment, 33 including, but not limited to, work areas, employee lounges, conference rooms and 34 employee cafeterias. A private residence is not a place of employ ment, except for child 35 care facilities in private homes. 36 37 262 “Pharmacy” means any retail establishment in which the profession of pharmacy 1 is practiced by a pharmacist licensed by the State of California in accordance with the 2 Business and Professions Code and where prescription pharmaceuticals are offered for 3 sale, regardless of whether the retail establishment sells other retail goods in addition to 4 prescription pharmaceuticals. 5 6 “Primary entrance” means the entrance to a building or business through which 7 the majority of patrons enter. A building or business has only one primary entrance. 8 Where the door into the establishment is at the end of a corridor formed by two or more 9 vertical walls or barriers, with or without overhead cover, the primary entrance shall be 10 deemed to be at the end of the corridor open to the exterior. 11 “Public place” means: 12 1. Any area to which the public is invited or in which the public is 13 permitted, including, but not limited to, shopping malls, retail stores, retail service 14 establishments, retail food production and marketing establishments, restaurants, 15 theaters, waiting rooms, reception areas, educational facilities, health f acilities, and 16 public transportation facilities and their associated parking areas. A private residence or 17 the fairway or putting green of a golf course within a private country club is not a public 18 place; 19 2. Areas measured a distance of forty (40) feet from the entrances 20 and exits to City-owned public places; 21 3. Areas measured a distance of twenty (20) feet from the primary 22 entrances to publicly or privately-owned commercial, industrial, institutional, or office 23 professional buildings; 24 4. Unenclosed areas owned by the City including, but not limited to, 25 City-owned property, parks, playgrounds, restrooms, baseball and soccer fields, except 26 the golf course area of Desert Willow or where specific signs are posted permitting such 27 smoking; 28 5. Unenclosed public events including, but not limited to, sports 29 events, entertainment, speaking performances, ceremonies and fairs; 30 6. Hotels, except in designated areas. 31 “Reasonable distance” means a distance of twenty (20) feet or, with respect to a 32 designated smoking area or such larger area as the city manager reasonably 33 determines in writing to be necessary in a given circumstance to ensure that occupants 34 of an area in which smoking is prohibited are not exposed to secondhand smoke 35 created by smokers outside the area. 36 263 “Secondary entrance” means any entrance to a building or business that is not 1 the primary entrance. One building or business may have multiple secondary entrances. 2 “Secondhand smoke” means smoke from tobacco or any other weed, plant, or 3 substance created by burning or carrying any lighted pipe, hookah, cigar, cigarette, or 4 electronic smoking device of any kind, and the smoke exhaled by an individual who 5 engages in smoking. 6 “Shopping mall” means any parcel of land zoned and used for retail s ales by 7 more than one retailer that is jointly operated or which includes shared parking facilities. 8 “Smoke,” or “smoking” means and includes any of the following: (1) the direct 9 burning or indirect heating of any cigar, cigarette, pipe, electronic smoking device, or 10 any similar kind of smoking equipment or article, using any form of tobacco, plant 11 product, or other combustible substance in any form, or (2) the holding or carrying of a 12 lighted or operated cigar, cigarette, pipe, electronic smoking device, or any other lighted 13 smoking equipment or device, or (3) emitting or exhaling the smoke directly from a 14 cigar, cigarette, pipe, electronic smoking device, or any other lighted smoking 15 equipment or device. Smoke also means the gaseous or vaporous products or particles 16 created by the use of a lighted or operated pipe, cigar, cigarette, electronic smoking 17 device, or other kind of smoking equipment or article. 18 “Tobacco product” means any substance containing tobacco leaf, including, but 19 not limited to, cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, 20 bidis, or any other preparation of tobacco product as defined in California Health and 21 Safety Code Section 104559.5(a)(17), including, but not limited to, any product 22 containing, made, or derived from tobacco or nicotine intended for human consumption, 23 electronic devices that deliver nicotine or other vaporized liquids, and any component, 24 part, or accessory of a tobacco product. Tobacco product does not include any product 25 that has been approved by the United States Food and Drug Administration for sale as 26 a tobacco cessation product or for other therapeutic purposes where such product is 27 marketed and sold solely for such an approved purpose. 28 “Unenclosed area” means any area that is not an enclosed area. 29 § 8.36.030 Prohibition of smoking in unenclosed areas. 30 A. Smoking is prohibited in the unenclosed areas of the following places 31 within the City, except places where smoking is already prohibited by state or federal 32 law, in which case, those laws apply: 33 1. Public places; 34 2. Places of employment; 35 3. Businesses, including, but not limited to, restaurants and bars, and 36 other public accommodations. In addition, smoking is prohibited within a reasonable 37 distance of the primary entrance to a dining area. Where a business has more than one 38 entrance, an outdoor smoking area may be designated within a reasonable distance of 39 264 one of the secondary entrances. In such case, smoking is prohibited within a 1 reasonable distance of the primary entrance and any other secondary entrances. 2 4. Common areas of multifamily residential properties owned by the 3 City, except where permitted under Section 8.36.070. 4 B. No person shall dispose of smoking waste or place or maintain a 5 receptacle for smoking waste in an area in which smoking is prohibited by this chapter 6 or other law, including within any reasonable distance required by this chapter. 7 § 8.36.040 Designation of smoking areas. 8 A. Places Where Smoking Permitted. Notwithstanding Section 8.36.030 of 9 this chapter, smoking is permitted in the following locations within the City, unless 10 otherwise provided by state or federal law: 11 1. Private residential property, other than: (a) those private residential 12 properties used as a child-care or health-care facility subject to licensing requirements 13 when employees, children or patients are present; or (b) home based business where 14 members of the public are invited. Nothing in this chapter shall require a person or entity 15 who or which owns or controls a private residential property, including, but not limited to, 16 a condominium association or an apartment owner, to permit smoking and such a 17 person may prohibit smoking throughout the property he, she or it owns or controls. 18 2. Designated areas in shopping mall unenclosed areas, provided 19 that: (a) there is not more than one (1) square foot of area designated for smoking for 20 every twenty thousand (20,000) square feet of rentable space of the shopping mall 21 (provided that each shopping mall may have at least one designated smoking area of 22 forty (40) or fewer square feet in area); (b) the area is prominently marked with signs; 23 (c) it is located the greatest distance practicable, and at least a reasonable distance, 24 from any doorway or opening into an area or any accessway from parking facilities to 25 the retail areas of the shopping mall; (d) smoke is not permitted to enter adjacent areas 26 in which smoking is prohibited by this chapter, other law or by the owner, lessee or 27 licensee of the adjacent property; and (e) the location(s) of the designated smoking 28 area(s) is or are approved in writing by the city manager of the City or designee based 29 on the standards of this subsection and the goals of this chapter. 30 3. Any unenclosed area in which no nonsmoker is present and, due to 31 the time of day or other factors, it is not reasonable to expect another person to arrive. 32 B. Where smoking areas are designated, existing physical barriers and 33 ventilation systems shall be used to eliminate the toxic effect of smoke in adjacent 34 nonsmoking areas, but employers are not required to incur any expense to make 35 structural or physical modifications in providing these areas. There shall be no 36 designated smoking areas in areas that have a common or shared air space with other 37 areas in which smoking is prohibited such as, without limitation, air conditioning 38 systems, heating systems, ventilation systems, entries, doorways, hallways, and 39 stairways or within a reasonable distance of commercial building entries. In all disputes 40 265 in the work place, the rights of the nonsmoker shall be given priority over the rights of 1 the smoker. 2 C. No person shall smoke in an area in which smoking is otherwise permitted 3 by this chapter or other law within a reasonable distance from any primary entrance, 4 opening, crack, or vent into an area in which smoking is prohibited by this chapter, other 5 law or by the owner, lessee or licensee of that area. 6 § 8.36.050 Optional prohibition. 7 All managers and owners of any establishment exempted from the provisions of 8 Section 8.36.070 serving or doing business with the public may, at their discretion, post 9 “No Smoking” signs within various areas of their businesses and utilize the fu ll right of 10 the provision of this chapter. No public place other than those enumerated in Section 11 8.36.070 shall be designated as a smoking area in its entirety. 12 § 8.36.060 Posting of signs. 13 Signs which designate smoking or no smoking areas established by this chapter 14 shall be clearly, sufficiently, and conspicuously posted in every room, building or other 15 place so covered by this chapter. “No Smoking” signs shall be specifically placed in 16 retail food productions and marketing establishments, including groc ery stores and 17 supermarkets open to the public, so they are clearly visible to persons upon entering the 18 store, clearly visible to persons in checkout lines and clearly visible to persons at meat 19 and produce counters. The manner of such posting, including the wording, size, color, 20 design and place of posting, whether on the walls, doors, tables, counters, stands or 21 elsewhere, shall be at the discretion of the owner, operator, manager or other person 22 having control of such room, building or other place, so long as clarity, sufficiency and 23 conspicuousness are apparent in communicating the intent of this chapter. 24 § 8.36.070 Exceptions. 25 Exceptions to the smoking prohibitions of this chapter are as follows: 26 A. Private offices, including those in the work place, designated areas of 27 hotels and motels, areas and rooms while in use for private social functions, private 28 hospital rooms, psychiatric facilities, jails, and stores that deal exclusively in tobacco 29 products and accessories, provided such stores comply with all state and local laws, 30 including California Labor Code Section 6404.5 and California Health and Safety Code 31 Section 104559.5. No pharmacy shall be considered a store that deals exclusively in 32 tobacco products and accessories. 33 B. Fairways or putting greens of golf courses within private country clubs, 34 provided smoking complies with all applicable state and local laws. Notwithstanding the 35 foregoing, nothing in this chapter shall require a person or entity that owns or controls a 36 private country club to permit smoking and such a person or entity may prohibit smoking 37 throughout the property he, she or it owns or controls. 38 266 C. Areas measured within a twenty-foot zone outside of a building’s primary 1 entrance, as long as the smoker is actively passing through on the way to another 2 destination and so long as the smoke does not enter any indoor area in which smoking 3 is prohibited. 4 D. Any owners or other person having control of a business or other 5 establishment subject to this chapter may apply to the city for an exem ption or 6 modification of the provisions of this chapter due to unique or unusual circumstances or 7 conditions. 8 E. Up to twenty-five percent of the contiguous deck area around swimming 9 pools in multifamily residential properties owned by the City. Such designated smoking 10 areas must be clearly signed. 11 § 8.36.080 Nonretaliation. 12 No person or employer shall discharge, refuse to hire or in any manner retaliate 13 against an employee or applicant for employment because such employee or applicant 14 exercises any rights afforded by this chapter. 15 § 8.36.090 Enforcement. 16 A. The owner, operator or manager of any facility, business or agency within 17 the purview of this chapter shall comply herewith. Such owner, operator or manager 18 shall post, or cause to be posted, all “No Smoking” signs required by this chapter. Such 19 owner, operator or manager shall not allow service to any person who violates this 20 chapter by smoking in a posted “No Smoking” area. 21 B. It shall be the responsibility of employers to disseminate information 22 concerning the provisions of this chapter to employees. 23 C. The City’s code enforcement officers, police and fire personnel are 24 authorized to issue citations for violation of the provisions of this chapter. Any peace 25 officer may enforce the provisions of this Chapter. The City’s code compliance 26 department may designate additional persons to monitor and facilitate compliance with 27 this Chapter. 28 D. The City’s code compliance department shall coordinate with the 29 California Department of Public Health and the California Department of Tax and Fee 30 Administration to ensure compliance with state laws regarding smoking and tobacco 31 use, including California Labor Code Section 6404.5. The department may use audio or 32 video recording equipment when conducting inspections to record and document illegal 33 smoking activities. 34 § 8.36.100 Violation—Penalty. 35 A. Any person who violates any provision of this chapter by: (1) smoking in a 36 posted “No Smoking” area; (2) failing to post or cause to be posted a “No Smoking” sign 37 267 required by this chapter; (3) owning, managing or operating a business or building in 1 which the prohibitions of this chapter are violated; or (4) violating any other provision of 2 this chapter, is deemed guilty of an infraction in accordance with Chapter 1.12 of this 3 code. Violations of this chapter may be criminally prosecuted as infractions or 4 misdemeanors at the discretion of the prosecuting attorney as the interests of justice 5 require. 6 B. Any violation of this chapter is hereby declared to be a nuisance , subject 7 to all applicable civil, administrative, and criminal remedies and penalties according to 8 the provisions and procedures contained in this Municipal Code and state law, 9 including, but not limited to, an action for abatement or injunctive relief . 10 C. Each incident of smoking in violation of this chapter is an infraction subject 11 to: a fifty-dollar ($50) fine. 12 1) a fine in an amount not to exceed fifty dollars ($50) for a first conviction of an 13 offense; 14 (2) a fine in an amount not to exceed one hundred dollars ($100) for a second 15 conviction of the same offense within a twelve-month period of the date of the 16 first offense; and 17 (3) a fine in an amount not to exceed two hundred and fifty dollars ($250) for the 18 third conviction of the same offense within a twelve-month period of the date of 19 the first offense. 20 21 22 268 ORDINANCE NO. 2025- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA AMENDING CHAPTERS 8.34 AND 8.36 OF THE PALM DESERT MUNICIPAL CODE RELATING TO TOBACCO RETAILER LICENSING AND SMOKING REGULATIONS TO COMPLY WITH CALIFORNIA FLAVORED TOBACCO LAWS, REGULATE KRATOM SALES AND POSSESSION, AND ENHANCE PUBLIC HEALTH PROTECTIONS AND MAKING A FINDING OF EXEMPTION UNDER CEQA. City Attorney’s Summary The purpose of this ordinance is to amend Palm Desert Municipal Code Chapters 8.34 and 8.36 to align with state flavored tobacco laws, enhance tobacco retailer licensing requirements, regulate the sale, distribution, and possession of kratom products by prohibiting synthetic kratom products, restricting sales of natural kratom leaf products to persons 21 and older, and prohibiting possession by persons under 21 and strengthen smoking regulations to adopt best practices to protect public health and reduce youth access to tobacco and kratom products. WHEREAS, the City of Palm Desert is committed to protecting the public health, safety, and welfare of its residents by regulating the sale and use of tobacco and kratom products and reducing exposure to secondhand smoke; and WHEREAS, the California Legislature has enacted several laws, including Senate Bill No. 793 (2020), Assembly Bill No. 935 (2023), Senate Bill No. 1230 (2024), and Assembly Bill No. 3218 (2024), collectively strengthening restrictions on the sale of flavored tobacco products and enhancing enforcement mechanisms to prevent youth access and protect public health; and WHEREAS, Senate Bill No. 793, effective December 21, 2022, following voter approval via Proposition 31, prohibits tobacco retailers from selling, offering for sale, or possessing with intent to sell most flavored tobacco products and tobacco product flavor enhancers, with exceptions for flavored shisha tobacco sold by licensed hookah retailers, premium cigars sold in cigar lounges, and looseleaf tobacco, as codified in California Health and Safety Code Section 104559.5; and WHEREAS, Assembly Bill No. 935 enhances enforcement of the flavored tobacco ban by aligning penalties with the Stop Tobacco Access to Kids Enforcement (STAKE) Act, allowing civil penalties ranging from $1,000 to $20,000 or more for violations and mandating license suspension or revocation for repeated violations; and WHEREAS, Senate Bill No. 1230, known as the Strengthen Tobacco Oversight Programs (STOP) and Seize Illegal Tobacco Products Act, effective January 1, 2025, authorizes the California Department of Tax and Fee Administration (CDTFA) to seize 269 flavored tobacco products and imposes a $50 per package penalty, with license suspension for a second seizure and revocation for a third, and increases STAKE Act penalties for sales to minors; and WHEREAS, Assembly Bill No. 3218, effective January 1, 2025, requires the California Attorney General to establish an Unflavored Tobacco List (UTL) by December 31, 2025, deeming any tobacco product not on the UTL as flavored and prohibited for sale, expands the definition of tobacco products to include synthetic nicotine and nicotine analogs, and prohibits distributors, wholesalers, and delivery sellers from selling non-UTL products or flavor enhancers; and WHEREAS, these state laws collectively aim to reduce youth tobacco use, protect marginalized communities disproportionately targeted by flavored tobacco marketing, and address the public health risks associated with nicotine addiction and secondhand smoke exposure; and WHEREAS, the California Air Resources Board has classified secondhand smoke as a toxic air contaminant with no safe level of exposure, necessitating robust local regulations to limit smoking in public places and places of employment; and WHEREAS, kratom (Mitragyna speciosa) is a tropical tree native to Southeast Asia, and its leaves are often consumed in powdered or extract form for their stimulant and sedative effects, with active compounds including mitragynine and 7 - hydroxymitragynine (7-OH), the latter being more potent and largely responsible for stronger pain-relieving, sedative, and euphoric effects; and WHEREAS, research has shown that 7-OH has euphoric and mood-enhancing effects, particularly at higher doses, increasing its appeal for recreational use, and binds to opioid receptors in the brain with greater affinity than morphine, raising significant concerns about its safety profile, including the potential for addiction, overdose, and adverse physical and psychological effects such as nausea, vomiting, and potential psychosis, with risks compounded when products contain higher concentrations of 7- OH; and WHEREAS, health advisories, including those from the United States Food and Drug Administration (FDA), have raised concerns over the safety of kratom products, particularly those with higher concentrations of 7-OH, which may increase the potential for abuse and harm to public health, culminating in the FDA’s formal request to the U.S. Drug Enforcement Administration (DEA) on July 29, 2025, to place 7 -OH products on the controlled substance list; and WHEREAS, kratom is not approved for any medical use by the FDA, is designated as a “Drug of Concern” by the DEA, and while legal in California with restrictions on packaging and sales to minors under 21 years old pursuant to Assembly Bill No. 1088 (effective 2025), several states and local jurisdictions, including cities in California such as San Diego and Oceanside, have banned or regulated kratom to protect public safety, especially vulnerable populations; and 270 WHEREAS, local law enforcement, including the Riverside County Sheriff ’s Office and District Attorney’s Office, has reported a significant increase in DUI arrests involving kratom as the primary active drug, with documented arrests and deaths associated with its use, underscoring its impairment risks and lack of proven medical benefits; and WHEREAS, the City Council finds that prohibiting synthetic kratom products, restricting sales of natural kratom leaf products to persons 21 and older, and prohibiting possession by persons under 21 will protect public health, particularly youth ,given the unproven benefits, documented risks, and alignment with the City’s tobacco control goals sales and distribution will protect public health, given the unproven benefits, documented risks, and alignment with the City’s tobacco control goals; and WHEREAS, Chapters 8.34 and 8.36 of the Palm Desert Municipal Code regulate tobacco retailer licensing and smoking, respectively, but require updates to align with state flavored tobacco laws, incorporate electronic smoking devices, regulate kratom sales, distribution, and possession, and enhance enforcement coordination; and WHEREAS, the proposed amendments to Chapter 8.34 update definitions to include electronic devices and nicotine analogs, explicitly prohibit the sale of flavored tobacco products and synthetic kratom products, permit limited sales of natural kratom leaf products to persons 21 and older with age verification and other safeguards, adopt proximity restrictions, enhance inspection requirements, strengthen enforcement mechanisms, and require coordination with state agencies for enforcement, ensuring compliance with Health and Safety Code Section 104559.5 and related provisions while implementing targeted kratom regulations; and WHEREAS, the proposed amendments to Chapter 8.36, building on prior revisions, clarify the regulation of electronic smoking devices, align definitions with state law, and add enforcement coordination to address flavored tobacco and kratom-related use, while maintaining exceptions consistent with state law; and WHEREAS, these amendments are necessary to protect public health, prevent youth access to addictive tobacco and kratom products, reduce exposure to secondhand smoke, and ensure that Palm Desert’s regulations are consistent with state law; and WHEREAS, the City Council finds that these changes are in the public interest and will promote the health, safety, and welfare of the community. THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Amendment to Chapter 8.34. Chapter 8.34 Tobacco Retailer License of the Palm Desert Municipal Code is hereby amended in its entirety to read as set forth in Attachment A, incorporated herein by reference. 271 SECTION 2. Amendment of Chapter 8.36. Chapter 8.36 Regulation and Prohibition of Smoking of the Palm Desert Municipal Code is hereby amended in its entirety to read as set forth in Attachment B, incorporated herein by reference. SECTION 3. CEQA Exemption. The City Council finds that the adoption of this ordinance is exempt from review under the California Environmental Quality Act (CEQA) (Public Resources Code § 21000 et seq.) and the CEQA Guidelines (14 Cal. Code Regs. § 15000 et seq.). This ordinance is not a “project” under CEQA Guidelines Section 15378(b)(5), as it is an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment. The amendments to Chapters 8.34 and 8.36 update tobacco retailer licensing (including kratom regulations) and smoking regulations, including definitions, enforcement, proximity restrictions, and fines, which are administrative actions with no physical environmental impact. Even if considered a project, the ordinance is exempt under CEQA Guidelines Section 15061(b)(3), the “common sense” exemption, because there is no possibility of a significant environmental effect. The ordinance regulates tobacco and kratom sales and public smoking to protect health, with measures like pharmacy sales bans and smoking prohibitions, none of which involve construction, land use changes, or activities affecting air, water, or habitat. SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 5. Posting and 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. ADOPTED ON ___________________ , 2026. EVAN TRUBEE MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK 272 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on ________ , 2026, and adopted at a regular meeting of the City Council held on __________ , 2026, 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 273 274 PROPOSED AMENDMENTS TO P.D.M.C. CHAPTERS 8.34 & 8.36, TOBACCO RETAILER LICENSE & SMOKING REGULATIONS City Council Meeting February 26, 2026 275 BACKGROUND •December 2009 -City Council adopted Ordinance No. 1200 •Current ordinance is outdated, lacks clarity for emerging electronic smoking devices and products. Growth of non -tobacco (vaping) smoking substances. •Licensing regulations are outdated, not aligned with industry standards. •Concerns with over -the -counter synthetic kratom products. •Ineffective fine structure to deter violations. 2276 PURPOSE OF AMENDMENTS •Modernize smoking and tobacco license regulations •Address emerging new products and substances •Regulate high-risk synthetic kratom products •Clarify enforcement and increase penalties •Protect public health •Align with original ordinance intent 277 KEY AMENDMENTS OVERVIEW Chapter Title Summary of Amendment 8.34 Tobacco Retailer License Updated definitions and terminology Prohibit flavored tobacco products Prohibit electronic smoking device sales Prohibit tobacco sales at pharmacies Prohibit synthetic kratom products 8.36 Regulation and Prohibition of Smoking •Regulates smoking in public places and workplaces •Includes distance requirements from entrances •Updated to include electronic devices •Define a private country club as a “public place” for purposes of smoking regulation. 278 5 •Council direction from August 2024 and February 2025 study sessions •Clear regulations for retailers •Consistent and clear enforcement tools:align enforcement standards for kratom with tobacco law, to include license revocation for kratom-related violations. •Increased penalties for operational violations •Increase inspections and compliance monitoring •Aligns with regional public health concerns and regulatory enforcement practices across multiple valley cities. PROPOSED AMENDMENTS PROVIDE: 279 QUESTIONS Pedro Rodriguez Code Compliance & Support Services Manager 280 From:tony Rodini To:CityClerk Subject:REGULATION OF KRATOM SALES AND POSSESSION. Date:Monday, February 23, 2026 5:00:30 PM Hello, my name is Anthony Rodini and I am a California resident. I've been using Kratom for almost ten years, and I am a strong advocate for the plant. I have severe obsessive-compulsive disorder, as well as anxiety and a tic disorder. Kratom significantly helps reduce my anxiety, which in turn helps me manage the tics, ruminations, and other difficult symptoms caused by my conditions. Science will support that the natural plant in its unadulterated state poses no threat to the public health and safety. I believe that products containing 7-OH are in fact the problem and should be recognized as such. I understand that there is some misinformation, but I would like to kindly note that natural kratom and 7-OH are very different products. Respectfully asking you to consider regulation, and not prohibition. Please think of the many individuals who rely on natural kratom for support in their daily lives and try to see this from our perspective. This is a deeply important issue to proponents like myself, who are able to live happy and healthy lives thanks to kratom, a natural plant. thank you for your sincere consideration -- Tony Rodini 281 From:ED ARTHUR To:CityClerk Subject:Kratom ban Date:Monday, February 23, 2026 7:10:46 PM I understand that you are planning to ban all Kratom products. Please take a moment to hear my personal story regarding this plant. I am not in your community, I live in Irvine, but I feel it’s important that all municipalities understand the benefits to people who are using this plant responsibly. My name is Ed Arthur. I am 78 years old and retired at age 75 after working as a wood finisher for over 50 years. I am also a Vietnam veteran, and I was self-employed.I have used kratom for probably 15 years with absolutely no harmful effects whatsoever. I take a small dose twice a day, and it helps with energy and pain relief, as I have spinal stenosis and two torn rotator cuffs. I credit it for my ability to work happily until age 75 and to continue a very productive and active life in my senior https://url.us.m.mimecastprotect.com/s/SGwfCmZV6mUjNrmAhGfpIRUQWv?domain=years.it is my great desire to see this natural leaf product remain available to me. On the other hand, I would greatly appreciate regulations against the synthetic product called 7-OH (or 70H). It sounds highly addictive and gives our natural leaf a bad name.Thank you so much for your consideration.Ed Arthur Irvine, California 282 From:K M To:CityClerk Subject:Kratom regulation Date:Monday, February 23, 2026 9:09:04 PM To whomever needs to hear this, My name is Kathryn Magliaro. I am 56 yrs old. I have been married for 36 years. And I am the mother of two adult children. For many years ,my children basically lost me functioning as their mum,and my husband lost me functioning as his wife. Why ? Because in 2007 I was diagnosed with Trigeminal Neuralgia. If you do a quick Google search, you will soon find out that Neurology medical literature label this as one of the worst pains known in all of medicine. And that's no exaggeration. There is no cure, there is literally only pain management. It also has the moniker of "the suicide disease ." Why? Because it is very difficult to find anything that helps the pain ,so some opt to end their lives as their form of managing, ending their pain. I underwent 2 brain surgeries, they failed to help. I endured years of anti seizure meds, anti depressants, and every opiate available. Nothing helped my pain. As the years progressed, and the pain roared on, I did less ,and less living. Until I was basically bed ridden. That lasted from approximately 2010 through 2018. And I also battled those suicidal thoughts every single day, multiple times a day. I wanted this pain to just stop. But in 2019 I discovered this leaf Kratom. It was the only thing that helped me. I take it still to this day as a form of pain management. And over time I have received back everything I lost to this nerve disease. My family has me back functioning in the family, participating in their lives,and being present. For the first time, I have started to consider helping financially again, because I couldn't for all those years. I am back to hobbies doing crafts, and painting . Even those were things I had to stop. I always have taken pure leaf dried Kratom. Please understand this pure leaf dried Kratom is helping thousands of people like myself. This leaf absolutely saved me, I no longer have those suicidal thoughts. And like I mentioned i am living life again. Please do not prevent the thousands of people who need this to help their pain, please don't make it in accessible for them. If that is done, you are potentially forcing all of those people to be criminals, to get what is effective at helping their pain. We are supporting regulations. We want regulations. But we do not support a ban. Please follow the scientific research that is being done at the University of Florida. For 15 plus years they have been studying this leaf. Even the FDA did an observational study and printed that they could not find this leaf caused any harm, at any dose that was given. The FDA printed that. Please follow the science, and regulate this ,still making it available to those thousands upon thousands whom need it. Thank you for your time. Sincerely Kathryn Magliaro 283 From:Denise Geltman To:CityClerk Subject:8.34 + 8.36 PLEASE DO NOT BAN NATURAL LEAF KRATOM Date:Monday, February 23, 2026 10:17:57 PM Dear City Council Members, You may not know this but in November 2024, Dr. Scott Gottlieb, former head of the FDA went directly to the UN/WHO to ask them to ban NATURAL LEAF KRATOM worldwide. THEY TOLD HIM NO because it helps so many people around the World. My name is Denise Geltman. I have been taking NATURAL LEAF KRATOM for 10 years. I am 61 years old. I suffer from chronic nerve pain and spasms all over my body, It is torture. NATURAL LEAF KRATOM is my most important tool in my chronic pain toolbox. Because of NATURAL LEAF KRATOM I have been able to hold a part time job for 10 years and live my life instead of existing in pain. Please do not ban NATURAL LEAF KRATOM because it helps so many people. The current FDA recently finished a study which found NATURAL LEAF KRATOM is SAFE in EVERY dose. However, I am in full support of banning SYNTHETIC 7-OH products. They are super dangerous. Thank you for your time. I really appreciate it. Sincerely, Denise Geltman denisegeltman@ 284 From:Venus Lynn To:CityClerk Subject:Public Comment Opposing Kratom Restrictions - Agenda Item 15.a Date:Tuesday, February 24, 2026 4:40:08 AM Dear Mayor and Members of the City Council, My name is Venus Usher. Although I do not live in California, decisions being made in Palm Desert matter to people like me across the country. I would also like to visit one day, bans make that impossible. I live with severe chronic pain conditions, including interstitial cystitis, fibromyalgia, recurrent kidney stone pain, and abdominal adhesions that required a three hour surgery. These conditions do not go away. They do not get better. They are lifelong. For seventeen years I was dismissed, misdiagnosed, and labeled. I was placed in rehab over pain medication that had been prescribed to me. I was treated as though I was the problem instead of the patient. When traditional medicine failed me, kratom was the only thing that allowed me to regain a basic level of function and dignity. Kratom is not a recreational thrill for me. It is the reason I can get out of bed. It is the reason I can participate in life instead of simply enduring it. When cities move to restrict sales and possession by grouping kratom in with tobacco or smoking regulations, it sends a message that people like me are doing something wrong just by trying to manage our pain. Restrictions that go too far do not protect us. They make us vulnerable. They push access away from regulated storefronts and into uncertain territory. They create fear where there should be compassion. There are responsible ways to regulate kratom. Age limits. Testing requirements. Clear labeling. Consumer protection standards. Those approaches protect public safety without criminalizing adults who are simply trying to live with less suffering. Please understand that this is not an abstract policy debate. Behind every ordinance are real human beings. Veterans. Chronic pain patients. People in recovery. Mothers. Fathers. People who have already been through enough. I am asking you to think of us when you consider Agenda Item 15.a. Choose balanced regulation over unnecessary restriction. Choose compassion over fear. Thank you for your time and for considering the human impact of your decision. Sincerely, Venus Usher New Castle, De 19720 My Story: https://share.google/FmmBi7LTUucD1NZQD 285 From:lora@ To:CityClerk Subject:I approve kratom language in 8.34.010 Date:Tuesday, February 24, 2026 6:25:02 AM Attachments:image001.png Dear Palm Desert City Council – I wanted to thank you for introducing a good ordinance regarding kratom in your city. As a pain patient, 9-year kratom consumer and as a kratom educator, I appreciate that you are recognizing the real need for this supplement in your community. Untreated pain is becoming an incredibly common occurrence due to the opioid crisis. Kratom is a great alternative to prescribed pain medication. It is also an incredibly helpful tool for those moving away from illicit drugs or prescribed opioids due to abuse. I truly appreciate that you recognized that there is a real difference between natural leaf kratom and the synthetic products like 7-OH. Once again, thank you for being responsible and taking the needs of your citizens to heart. Yours Truly - Lora Romney 286 From:Michele Inman To:CityClerk Subject:Hearing on Regulating Kratom Date:Tuesday, February 24, 2026 8:21:14 AM To whom it may concern, As a local resident and Kratom user, I’m writing to ask that Kratom be protected from being banned in our area. It is a valuable resource for mental and physical health and a great alternative to pharmaceutical products. As someone who has had chronic pain, depression and anxiety, I know from experience that Kratom can be useful in treatment of pain and other discomforts. Unlike cannabis or opioids, Kratom does not lead to addiction or drowsiness caused by other analgesic supplements Kratom is also often used against social anxiety, phobia and depression. I find with minimal use, that (especially) in public, I feel less afraid. Kratom can make me more talkative, friendly and cheerful. Personally, I’m more inclined to immerse myself among people while being more comfortable in my own skin. Please also take into consideration, although alcohol and cannabis is legal in CA, most employers do not allow or accept any use of these products because of their obvious side effects and safety concerns. There needs to be a safe alternative and natural, botanical Kratom is that solution. Michele Inman text or call 287 From:Abdullah Mamun To:CityClerk Subject:I am in support for 8.34.010 as written Date:Tuesday, February 24, 2026 9:43:50 AM Dear City Clerk, I am writing to express my sincere appreciation for the thoughtful language included in Agenda Item 8.34.010. It is encouraging to see policymakers take the time to listen to community members and recognize that a natural plant, used for centuries worldwide and for decades within the United States, can serve as a safer alternative for many individuals —particularly those concerned about the dependency risks associated with certain prescribed medications. My name is Abdullah Mamun, and I am the owner of Authentic Kratom, a company I founded more than 12 years ago in Los Angeles, California. Our business focuses exclusively on natural kratom products, all of which are compliant with California’s regulatory framework, including the standards reflected in your ordinance. Over the past two years, the emergence of synthetic kratom derivatives, often referred to as “7-OH” products, has significantly impacted the marketplace. I have personally witnessed the negative consequences these products can have, including customers coming into our stores seeking help to discontinue their use. It has been deeply concerning to observe the harm caused by these synthetic alternatives, which further underscores the importance of responsible, evidence-based local policies such as the one your city has implemented. The steps your city has taken are truly commendable, and I hope neighboring jurisdictions will look to your leadership as a model. I also work closely with organizations such as the American Kratom Association and the Global Kratom Coalition. If there are any resources, research, or perspectives that may be helpful to you or your colleagues, I would be glad to assist in any way possible. Please feel free to reach out using the contact information below if you need clarification or additional information. Once again, thank you for your commitment to protecting and serving your community. Your efforts set an important standard. Sincerely, Abdullah Mamun CEO Authentic Kratom® www.authentickratom.com Tel: 288 From:jordan thomas To:CityClerk Subject:Kratom ban Date:Tuesday, February 24, 2026 2:58:13 PM Hi my name is Jordan Thomas. I am a resident of La Quinta. I am a 41 year old ex golf professional. I lost my health and life about 7 years ago. I have PTSD, Charcot Marie Tooth disease, and severe osteoarthritis. I take kratom to sleep and rehab. I could not sleep or train without it. If I couldn’t sleep or train, I would be bedridden in a wheelchair. It is a plant medicine for many people out here with illnesses. Opioids can be toxic, addictive, and have side effects like constipation. That would be my other option and it isn’t one. I have tried everything from CBD to celebrex and gabbapentin. I would lose what’s left of my quality of life health wise if Kratom was banned. Please consider this for me and many others in a similar situation. Please enforce law on the extracts and age but not the plant in general. It is used as a medicine. Thank you for your time and consideration. Thanks again, Jordan Thomas Sent from my iPhone 289 From:Matthew McHolland To:CityClerk Subject:Protect Kratom in Palm Desert — Regulate, Don’t Ban Date:Tuesday, February 24, 2026 4:50:19 PM Honorable Mayor and Members of the City Council, My name is Matthew W. McHolland, and I am here today to ask you to choose regulation over prohibition — education over fear — and balance over reaction. An estimated 5 to 15 million Americans currently use kratom. That is not a fringe population. That is millions of veterans, mothers, construction workers, small business owners, and seniors. These are not criminals. These are ordinary people seeking relief. And we must begin with clarity. There is a critical distinction between raw, natural kratom leaf — traditionally brewed as tea — and synthetic or adulterated products. Raw kratom leaf is a botanical. It is a member of the coffee family. It has been used traditionally in Southeast Asia for generations. What creates danger in any market is not the plant itself — it is contamination, synthetic analogues, and lack of standards. That is why kratom literacy is key. Kratom literacy means understanding the difference between raw leaf and highly concentrated extracts. It means knowing what adulterated products are. It means educating consumers instead of criminalizing them. It means labeling, age restrictions, and accountability. I support restricting kratom sales to adults 21 and over. That is responsible. That protects youth. But banning kratom entirely will not eliminate use — it will eliminate safety. When people who rely on kratom tea for chronic pain, anxiety, or depression suddenly lose access, they do not simply stop suffering. Many of them have already been abandoned by the medical system. Some were cut off from prescriptions. Some cannot tolerate pharmaceuticals. Some are trying to avoid far more dangerous substances. 290 If you remove a plant-based option that many consider manageable and functional, you risk pushing people toward far more harmful alternatives. We have seen this before. In 2016, the U.S. Drug Enforcement Administration attempted to emergency schedule kratom nationwide. What happened next was historic. The public response was overwhelming — one of the largest public comment responses in FDA history. Veterans, patients, researchers, and families showed up in record numbers. And the DEA withdrew the ban. Why? Because decisions are made by those who show up. And millions showed up to say: this plant matters. Palm Desert has an opportunity to lead wisely. You can distinguish between raw botanical leaf and synthetics. You can enforce 21+ age restrictions. You can implement smart regulation that protects consumers while preserving access. A ban may sound decisive. But education is stronger. Regulation is smarter. And literacy saves lives. Please do not punish responsible adults. Do not remove a lifeline for those quietly managing their pain. Do not create unintended consequences. Choose regulation. Choose literacy. Choose balance. Thank you for your time and your leadership. Sincerely, Matthew W. McHolland Sent from my T-Mobile 5G Device Get Outlook for Android 291 From:Marcelle Smith To:CityClerk Subject:Agenda Item 15A – Kratom Regulations Feb. 26 Public Hearing Date:Tuesday, February 24, 2026 5:39:25 PM Dear Mayor and Council Members, I am writing regarding the February 26 public hearing on proposed kratom regulations. I support thoughtful regulation that protects youth and promotes public safety. Measures such as age restrictions, clear labeling, and prohibiting synthetic or high-potency products are reasonable safeguards. At the same time, I urge the Council to ensure that any ordinance is carefully drafted so it does not unintentionally eliminate access for responsible adults or lawful natural leaf kratom products. Policies should distinguish between natural products and synthetic or enhanced substances and avoid overly broad definitions that could create unintended consequences or push consumers toward unregulated markets. A balanced, evidence-based approach can protect public health while preserving responsible adult access. Thank you for your time and consideration. Sincerely, Marcelle Morfin California 292 From:Stephen McIntosh To:CityClerk Subject:SUPPORT Agenda Item 15a (RE: Kratom) Date:Wednesday, February 25, 2026 12:00:42 AM To the Clerk and Honorable City Councilors, I would like to take a moment to voice my SUPPORT for Agenda Item 15a, Regulation of Kratom. I read the ordinance carefully, and I appreciate that you differentiate between natural kratom and synthetics. I am a permanently disabled retiree with advanced heart failure and chronic pain. Like many pain patients, my medication was stopped against my will in 2018. Like many Americans in general, I have very little choice in the insurance offered through my wife’s employer. Our household income is too high for Medi-Cal and for subsidized policies though Covered CA. My insurance (a popular HMO) only allows me to see their providers if I want office visits, prescriptions, or procedures to be covered. Botanical kratom allows me to do basic housework and the PT cardiology has recommended. Due to my health, many options are unavailable to me such as NSAIDs (cardiovascular risk) or TENS/electrostimulators (pacemaker). Some have not worked very well or caused significant side effects, such as medical cannabis. Local access to botanical kratom is of extreme importance to me, and I thank you for preserving it while addressing real concerns about adulterated products and underage access. Thank you again, Stephen C. McIntosh, MBA Software Developer and Instructor of Computer Information Systems (Ret.) 293 From:Miriam Campillo Macedonio To:CityClerk Subject:A Call for Humane, Science-Based Kratom Policy Date:Wednesday, February 25, 2026 9:13:08 PM My name is Miriam Campillo Macedonio, and I am writing as a deeply concerned resident regarding the City Council hearing on kratom Kratom is derived from the leaves of the Mitragyna speciosa tree, native to Indonesia, where it has been used safely for generations as a natural leaf tea. When consumed in its pure, unadulterated form, natural kratom has helped countless individuals manage chronic pain, stress, fatigue, and other health challenges—often when conventional medical treatments have failed or caused harmful side effects. The public safety concerns most often cited in policy discussions are overwhelmingly linked to synthetic kratom extracts or products contaminated with other substances, not the traditional, natural leaf itself. Policies that restrict or ban natural kratom—and especially those that criminalize possession— are not only misguided, but inhumane. Reprimanding or penalizing individuals for possessing natural plant leaves used responsibly for wellness purposes punishes people who are seeking relief, not causing harm. Such measures would disproportionately impact law-abiding residents who are simply trying to maintain their health and dignity. Criminalization does not protect public safety; instead, it stigmatizes and marginalizes vulnerable members of our community. Many Americans who rely on natural kratom are individuals who have been failed by the traditional medical system: mothers and fathers caring for their families, hardworking employees striving to remain productive, and veterans coping with physical and emotional pain. These are not reckless users—they are everyday people doing their best to live healthy, stable lives. Restricting access to natural kratom would leave them with fewer safe options and may push some toward far riskier alternatives, including stronger pharmaceuticals. I respectfully ask the Council to pursue a balanced, science-based approach—one that protects residents from unsafe synthetic products while preserving access to safe, natural kratom. Regulation, quality standards, and education are far more effective and humane than prohibition or punishment. Palm Desert has the opportunity to lead with reason, evidence, and compassion. Please consider the voices of constituents who rely on natural kratom for their well-being. By safeguarding responsible access, Palm Desert can uphold personal freedom, public health, and humane governance. Thank you for your time, your service, and your thoughtful consideration of this important matter. Sincerely, Miriam Campillo Macedonio 294 From:bavardcuiss To:CityClerk Subject:Kratom Ban Date:Thursday, February 26, 2026 4:44:28 AM Good Afternoon Councilmembers, I’ve chosen to speak out once again because I’m scared. For me, kratom has been one of the only things that gives me any quality of life. It eases my pain. It helps me stay stable enough to do basic things — preparing food, caring for myself and without it, my world becomes much smaller. I’m here as someone living with myalgic encephalomyelitis sometimes known as ME/CFS, a disabling illness that took over my life at age 15. ME/CFS is a Neuro immune disease that causes pain, cognitive dysfunction, and exhaustion that makes even simple tasks impossible. There is no cure, no FDA‑approved treatment, and no standard medical pathway for people like me. Every day is about survival and trying to hold onto whatever small pieces of functioning I can. I want to be very clear: I use kratom responsibly, carefully, and out of necessity — not recreationally. I use raw leaf natural products, not synthetics. The difference between them needs to be distinguished. I’m not alone. many people with my disease and many others use for management of pain and other chronic conditions. Due to the respiratory depression opioid narcotics can induce, raw unadulterated kratom leaf may be safer. This lends itself to why the CDC has no verified raw- leaf-only kratom deaths on record and the FDA has never documented a single death caused solely by natural kratom leaf. The World Health Organization conducted a scientific review of kratom and chose not to recommend a global ban. Their Expert Committee on Drug Dependence concluded there was inadequate evidence to justify stricter international control. Another report noted the WHO voted 11–1 against recommending international scheduling after reviewing the data. That matters. It shows that global health authorities — after examining the evidence — did not find kratom to be the kind of public danger that warrants prohibition. I understand the city’s concerns. Safety matters to all of us. We know from decades of public‑health research: banning a substance does not stop its use. It simply pushes it underground, where it becomes more dangerous, more likely to be misused and where no one will be checking for age. Banning it won’t stop misuse — but it will take away one of the only tools that people like me have to manage a disabling illness with no treatment options. It will punish responsible users while doing nothing to address the real risks like synthetics and accessibility to those under 21. I’m asking you to consider the human impact. To see the people behind the policy. To understand that for some of us, kratom is not a luxury — it is a lifeline. We aren’t criminals. Please don’t take away one of the only things that allows me to live with dignity, stability, and 295 some measure of relief. Thank you for your time. Heather S. La Quinta Resident Sent from Proton Mail for iOS. 296 From:Eric Avriette To:CityClerk Subject:Ordinance proposal/save the use of kratom Date:Thursday, February 26, 2026 9:51:21 AM Kratom has been greatly beneficial in my life for close to a decade. Just one drink a day has helped me manage my pain from arthritis and scoliosis. At the age of 71, I’m not taking any pharmaceutical medications. I must emphasize I receive the best quality of kratom from Kratom of Life, owned and operated by Matthew Holland. Matthew is an incredibly kind and brilliant business man who takes great pride in the quality of his product. Thank you for your time! 297 From:klrenstrom To:CityClerk Subject:Resident request - Vote "no" on Kratom ban Date:Thursday, February 26, 2026 12:18:39 PM City Council members and others in attendance: I’m sorry I won’t be able to attend the meeting this afternoon due to working a full-time job with minimal flexibility in hours. I hope you will consider my comments below and introduce them into the record regarding this issue. At age 9, I injured my low back jumping out of a tree house. Later I learned my nearly constant low back pain was also related to congenital arthritis. Basically my lowest 4 or 5 vertebrae have abnormally thin discs, contributing to pain, balance issues, sciatica, muscle spasms, and numbness in my feet. As an adult I’ve been prescribed physical therapy on at least 5 different occasions, and I’m very consistent about the practicing the exercises I’ve been given. Unfortunately, as I age, the arthritis gets worse. Various doctors prescribed heavy doses of Ibuprofen, which I took as directed for YEARS. This led to major abdominal pain and damage to my stomach and esophagus. The gastroenterologist prescribed daily antacid medication (Omeprazole) which, it turns out, not only prevented my stomach from producing excessive acid, but also coated my digestive tract in a way that prevented me from absorbing the nutrition from my food. By the time I was 50 years old, I was malnourished, with multiple physical, mental, and emotional consequences of vitamin deficiencies, in spite of eating a diet for over 20 years that consisted exclusively of fresh proteins, whole grains, fruits and vegetables only (no flour, no sugar, no alcohol, no processed food) But still I was SICK. I felt defeated and I was still in pain, every day. A friend who was a registered nurse told me about Kratom. She explained it was a plant, grown mostly in Asia, which had a mild pain-relieving effect without the drowsiness or altered mental state associated with even small doses of opiate-based pain medications. She recommended a source who could be trusted, and I began to use it during my work week to combat the devastating pain I used to experience from sitting in a desk chair. I’ve been able to eliminate all the other crazy chemicals that were making me sicker. I’ve had a small, consistent dosage, that has not increased in 9 years of use. I follow the directions I was given by that nurse, and have discussed my use of this plant with my regular pain management doctor, and she approved. Never have I felt like using more than the small dose that was recommended to me. Never have I wanted to “get high” using this plant. It helps with my pain without making me sleepy or silly. It allows me, as a 60 year old woman, to exercise daily, sleep well without waking in the night due to back pain, and work through long days, standing, sitting, walking, without having to stop to lay down and let my back “rest”. This was unheard of for me throughout my 30s and 40s. Please don’t remove access to this valued, natural, plant-based remedy from those of us who have finally found a safe, effective method to mitigate pain without the risks and side-effects of all the other chemicals available from the pharmaceutical industry. 298 Sincerely, Kim Pringle Palm Desert resident since 2015 Palm Desert, CA 92260 299