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HomeMy WebLinkAboutPost-Meeting Agenda Package - Palm Desert City Council - Regular Meeting_Mar12_2026 PALM DESERT CITY COUNCIL REGULAR MEETING POST-MEETING AGENDA Thursday, March 12, 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 RECOMMENDATION: The following items were considered in closed session: 4.a Closed Session Meeting Minutes: February 26, 2026 4.b Conference with Real Property Negotiations pursuant to Government Code Section 54956.8 Property Description: Desert Willow Lot Pad C and D (APNs 620-450-012, 620-450-013, 620-450-014, 620-450-016, 620-450-017, 620-450-018, and 620-450-020) Agency: Successor Agency to the Palm Desert Redevelopment Agency City Negotiator: Chris Escobedo/Richard Cannone/Martin Alvarez Negotiating Parties: Kam Sang Company, Inc. Under Negotiation: Price and Terms 5.ROLL CALL - REGULAR MEETING - 4:00 P.M. 6.PLEDGE OF ALLEGIANCE Councilmember Harnik 7.INSPIRATION Mayor Trubee 8.REPORT OF CLOSED SESSION City Attorney Shah 9.AWARDS, PRESENTATIONS, AND APPOINTMENTS 9.a PRESENTATION - MINI MUSTER MONTH 7 9.b PRESENTATION - ENTREPRENEURIAL RESOURCE CENTER (ERC) ANNUAL REPORT UPDATE 9 9.c PRESENTATION - RIVERSIDE UNIVERSITY HEALTH SYSTEM BEHAVIORAL HEALTH (RUHS BH), MATURE ADULT PROGRAM 33 10.CITY MANAGER COMMENTS 11.MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Palm Desert City Council Meeting Agenda October 23, 2025 2 12.NONAGENDA PUBLIC COMMENTS 35 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, with the exception of item 13.f, which was pulled for public comment. 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES 39 RECOMMENDATION: Approve the Minutes of February 26, 2026. 13.b APPROVAL OF WARRANT REGISTERS 49 RECOMMENDATION: Approve the warrant registers issued for the period 2/19/2026 to 2/26/2026. 13.c CONSIDERATION OF APPROVAL FOR ISSUANCE OF THE KEY TO THE CITY 71 RECOMMENDATION: Approve the issuance of the Key to the City to Ron Gregory pursuant to Resolution No. 2025-072 and the Ceremonial Recognition Policy. 13.d PUBLIC SAFETY COMMITTEE 2026 WORK PLAN FRAMEWORK AND SUBCOMMITTEE STRUCTURE 81 RECOMMENDATION: Receive and file the Public Safety Committee’s 2026 work plan framework. 1. Acknowledge the Committee’s action creating three subcommittees to guide 2026 priorities: Traffic, Budget, and Innovative Technology. 2. 13.e ACCEPTANCE OF A RESIGNATION FROM HOUSING COMMISSION 87 RECOMMENDATION: With regret, accept the resignation of Andrew Firestine from the Housing Commission effective February 9, 2026. Palm Desert City Council Meeting Agenda October 23, 2025 3 13.f ADOPTION OF ORDINANCE NO. 1443 AMENDING CHAPTERS 8.34 AND 8.36 OF THE PALM DESERT MUNICIPAL CODE REGARDING TOBACCO RETAILER LICENSING, SMOKING REGULATIONS, FLAVORED TOBACCO LAW COMPLIANCE, AND KRATOM SALES AND POSSESSION 89 RECOMMENDATION: Adopt 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 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.” 13.g ADVANCE PAYMENT OF 2026 INDEPENDENCE DAY CELEBRATION EXPENDITURES FROM FISCAL YEAR 2026-27 ANNUAL BUDGET 125 RECOMMENDATION: Approve advance payment of expenditures in an amount not to exceed $169,838, to be included in the FY 2026-27 Annual Budget, for production of the 2026 Independence Day Celebration. 1. Authorize the City Manager to finalize and execute vendor contracts and related agreements necessary for event production. 2. 13.h AWARD OF CONTRACT TO CLIFTON LARSON ALLEN, LLP. (CLA) TO PERFORM PROFESSIONAL AUDITING SERVICES FOR THE REPORTING REQUIRED FOR THE FISCAL YEARS ENDING JUNE 30, 2026, JUNE 30, 2027 AND JUNE 30, 2028 129 RECOMMENDATION: Award a Professional Services Agreement with CliftonLarsonAllen, LLP. (CLA), to perform professional auditing services for the reporting required in fiscal years ending June 30, 2026, June 30, 2027, and June 30, 2028, in the amount of $105,462 for the first year, and two subsequent years as outlined in the contract. 1. Authorize the Finance Director to negotiate and approve additional auditing or related professional services that may be necessary, in an amount reasonable for such services, and within available and previously approved budget appropriations. 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 written requests for change orders, amendments, and any other documents necessary to effectuate this action, in accordance with Section 3.30.170 of the Palm Desert Municipal Code. 4. Palm Desert City Council Meeting Agenda October 23, 2025 4 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. 15.a APPROVE OUTSIDE AGENCY COMMITTEE FUNDING RECOMMENDATIONS FOR THE PROGRAM YEAR 2026-27 COMMUNITY DEVELOPMENT BLOCK GRANT 155 RECOMMENDATION: Conduct a public hearing and accept public comment related to the Community Development Block Grant (CDBG) Program Year (PY) 2026-27. 1. Approve Outside Agency Funding Committee (Committee) recommendations for PY 2026-27 CDBG award of subrecipients, programs, and/or projects, and funding amounts as proposed. 2. Approve the use of the PY 2026-27 CDBG funding allocation awarded to the City of Palm Desert (City) by the U.S. Department of Housing and Urban Development (HUD) for the proposed funding of subrecipients' programs and/or projects recommended by the Committee. 3. Authorize staff to submit the recommended allocations to the County of Riverside Housing and Workforce Solutions (HWS). 4. Authorize the City Manager to execute any documents necessary to implement the actions taken herewith. 5. 16.ADJOURNMENT Palm Desert City Council Meeting Agenda October 23, 2025 5 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 for the Palm Desert Redevelopment Agency, and Housing Authority, was posted on the City Hall bulletin board and City website www.palmdesert.gov no less than 72 hours prior to the meeting. /S/ Michelle Nance Assistant City Clerk Palm Desert City Council Meeting Agenda October 23, 2025 6 WHEREAS, during the month of March, Fire Station #33 of the Western Division of the Riverside County Fire Department and CAL FIRE, in partnership with the Historical Society of Palm Desert and the Desert Sands Unified School District, provide hands-on fire prevention and personal safety education to Palm Desert third-grade students through the Fire Prevention and Mini-Muster Program; and WHEREAS, the Fire Prevention and Mini-Muster Program proudly celebrates its 33rd year at Gerald Ford Elementary, Abraham Lincoln Elementary, and George Washington Charter Schools; its 28th year at James Earl Carter Elementary School; and its 20th year at Ronald Reagan Elementary School; and WHEREAS, firefighters, educators, volunteers, and community partners dedicate their time and expertise to teaching students critical life-saving skills, including fire safety awareness, emergency preparedness, and personal responsibility; and WHEREAS, this longstanding program strengthens the partnership between public safety professionals, schools, and families while fostering a culture of preparedness and resilience within the City of Palm Desert; and WHEREAS, by educating and empowering young residents, the Fire Prevention and Mini-Muster Program contributes to maintaining a fire-safe community for generations to come; NOW, THEREFORE, BE IT PROCLAIMED, that I, Evan Trubee, Mayor of the City of Palm Desert, California, on behalf of the entire City Council, do hereby proclaim March 2026 as Mini-Muster Month in the City of Palm Desert, and encourage all residents to recognize and support the students, firefighters, educators, and volunteers who make this meaningful program possible. th 7 8 Page 1 of 14 January 29, 2026 Authored by: Dr. Ezekiel Bonillas Dr. Mike Stull 2025 Palm Desert ERC Annual Update: Innovations and Milestones 9 Page 2 of 14 PREFACE – IMPORTANT UPDATE REGARDING THE CENTER FOR ENTREPRENEURSHIP AND SCHOOL OF ENTREPRENEURSHIP AT CALIFORNIA STATE UNIVERSITY SAN BERNARDINO In May 2025, the California State University (CSU) Board of Trustees formalized a generous endowment to CSUSB’s School of Entrepreneurship and the Inland Empire Center for Entrepreneurship. Randall W. Lewis, executive vice president for marketing with The Lewis Group of Companies and a recipient of an Honorary Doctor of Humane Letters degree from Cal State San Bernardino (2021), gifted the school and center with $6 million. On May 21, 2025, the CSU Board of Trustees approved the renaming of the CSUSB School of Entrepreneurship and Inland Empire Center for Entrepreneurship to the Randall W. Lewis School of Entrepreneurship and Innovation and the Randall W. Lewis Center for Entrepreneurship. The endowed gift and irrevocable estate gift aim to empower the Randall W. Lewis School of Entrepreneurship and Innovation to broaden its transformative impact across the university and throughout the region. The school will continue to champion interdisciplinary approaches to entrepreneurial thinking and practice, engaging all academic colleges and administrative divisions in advancing a culture of innovation and opportunity. 10 Page 3 of 14 INTRODUCTION The following is a comprehensive activity report for the recently expanded Palm Desert Entrepreneurial Resource Center (ERC) – formerly known as Palm Desert iHub – a vibrant center of innovation and entrepreneurship in the heart of Coachella Valley. The Palm Desert Entrepreneurial Resource Center (ERC) is committed to fostering innovation, supporting startups, and driving economic growth in the desert region. As a catalyst for entrepreneurial success and regional economic development, the Palm Desert ERC focuses on transforming the regional landscape for business and entrepreneurial opportunities. The management of this dynamic facility was awarded to the Randall W. Lewis School of Entrepreneurship and Innovation (RLSEI) and Randall W. Lewis Center for Entrepreneurship (RLCE) at California State University, San Bernardino (CSUSB) in November 2023. This marked a pivotal shift towards heightened professionalism, innovation, and performance, with the RLSEI and RLCE jointly steering the Palm Desert ERC into a new era starting January 2024. This strategic partnership is designed to enhance the Palm Desert ERC's influence as a central player in both the local and broader Coachella Valley business ecosystems. While 2024 served as a start-up year with new management, 2025 served as a year of scaling and growth. The pages that follow provide a detailed report on the annual progress and achievements in 2025. We delve into the initiatives undertaken, milestones reached, and significant outcomes that underscore the impactful contributions of the RLSEI and RLCE. This report is a testament to our commitment to excellence and accountability, showcasing how our strategic management of the Palm Desert ERC has positively influenced the greater Palm Desert community and stakeholders. This quarterly report not only reflects on past accomplishments but also outlines our future initiatives aimed at sustaining and expanding our impact. As we move forward, the Palm Desert ERC will continue to introduce innovative programs and partnerships that address the evolving needs of our entrepreneurial community. We are committed to developing and expanding comprehensive support services to facilitate business creation and growth. Our ongoing efforts include enhancing our program offerings, growing our network of industry experts and providing entrepreneurs with the tools they need to succeed. By fostering a robust ecosystem of resources, the Palm Desert ERC remains at the forefront of entrepreneurial development in the Coachella Valley. 11 Page 4 of 14 KEY METRICS Several key metrics from the third quarter of 2025 highlight the impact and success of our initiatives at the Palm Desert Entrepreneurial Resource Center (ERC). At the 24-month mark since taking over management, these metrics span various aspects of our operations and underscore our dedication to nurturing entrepreneurship and stimulating economic growth in Palm Desert and the broader Coachella Valley. These indicators include the number of new business startups initiated, businesses assisted, and the extensive reach achieved through business counseling, as well as networking and training events. Each metric provides valuable insight into our efforts to support and empower local entrepreneurs. Furthermore, our effective team of business consultants, experts, and affiliates have aided business stakeholders make use of financial resources—such as SBA loans, business loans, and equity capital investments. This has been instrumental in fostering the growth and sustainability of businesses within our ecosystem. We also take pride in the Palm Desert ERC client achievements in various aspects, encompassing securing procurement contracts and boosting sales, which are clear indicators of the economic benefits reaped from our programs. In addition, we are committed to supporting a diverse range of business and entrepreneurial stakeholders, including minority-owned and women-owned firms, and entrepreneurs at various stages of their business journey. Lastly, we examine the composition of our incubator community, highlighting the number of companies currently housed and those that have successfully graduated, which reinforces our role as a catalyst for entrepreneurial success and development. Economic Metric Jan – Mar Q1 Apr – May Q2 Jun – Aug Q3 Sept – Dec Q4 Year-to- Date Total 1 Business Starts Number of entrepreneurs assisted that launched a new business or entity within specific time period. 10 22 14 19 65 2 Businesses Assisted Number of companies/entrepreneurs assisted through business counseling/consulting services provided at the PD ERC. 80 214 593 299 1186 3 Business Events at PD ERC Business networking events, workshops, or technical training events hosted at the PD ERC. 19 36 25 32 112 3A Virtual Events at PD ERC Events hosted from PD ERC facility. 16 25 18 10 69 4 PD ERC sponsored event attendance Number of attendees at PD ERC sponsored events. 460 776 556 443 2235 12 Page 5 of 14 5 Economic Impact Quantitative metrics utilized to measure economic impact of PD ERC through services provided to companies/entrepreneurs SBA Loans Gross dollar amount of SBA-backed loans provided to companies/entrepreneurs as result of PD ERC provided services (i.e. 504, 7a) 0 $49.54M $30.1M $7.68 $87.23M Business Loans Gross dollar amount of non-SBA backed loans provided to companies/entrepreneurs as result of PD ERC provided services (i.e. bank loans, lines of credit) $20,000 0 $78,000 $55,000 $153,000 Other Capital Additional forms of capital that exclude SBA Loans or formalized institutional loans (i.e. bank loans) $7,500 $5,000 $113,000 $2,000 $127,500 Equity Capital and/or Investments Direct investments into companies that exclude debt capital (loans, lines of credit) $47,232 $61,228 $369,370 $22,965 $500,795 Government and/or Procurement Contracts Gross dollar amount of contracts secured by companies serviced at PD ERC. These can include contracts with larger companies or governments. $0 $0 $0 $0 $0 Increase in Sales This figure is directly reported by PD ERC service companies to track direct sales increases as result of business advisory, consulting, and/or coaching services provided. $534,397 $513,628 $1.43M $712,324 $3.19M 6 Jobs Supported Number of jobs created or retained at PD ERC client companies. 148 409 801 271 1629 7 Minority-owned firms assisted Number of minority-owned businesses and/or entrepreneurs that have received services at PD ERC 54 218 344 168 784 8 Woman-owned firms assisted Number of women-owned businesses and/or entrepreneurs that have received services at PD ERC 46 254 300 145 745 9 Companies in residence Number of entrepreneurs and/or companies maintaining residence within the PD ERC (excluding CSUSB) 6 6 6 6 6 10 Graduating companies Number of companies and/or entrepreneurs that have graduated from PD ERC- provided longitudinal programming (i.e. It’s Your Time, Veteran Entrepreneurs, Mini-MBA) 0 38 31 39 108 13 Page 6 of 14 2025: PROGRAM HIGHLIGHTS The Mini MBA in Entrepreneurship continues to be a cornerstone program of the Palm Desert Entrepreneurial Resource Center, delivering practical, high-impact education to current and aspiring business owners across the Coachella Valley. Designed and led by faculty from CSUSB’s School of Entrepreneurship and Innovation, the six-week, cohort-based program equips participants with the tools needed to think strategically, strengthen operations, and scale with intention. From financial fundamentals and human resources to strategy, leadership, and growth execution, the Mini MBA bridges academic rigor with real-world application, helping entrepreneurs translate ideas into sustainable businesses. In the fourth quarter of 2025, the program celebrated a major milestone with the graduation of its fifth cohort, a clear testament to the growing success and demand for the program. Each graduating cohort strengthens the region’s entrepreneurial pipeline by fostering peer networks, mentorship, and long-term collaboration among business leaders at various stages of growth. As the Mini MBA continues to mature, it reflects the Palm Desert ERC’s broader mission to build capacity, retain local talent, and support businesses that contribute to a resilient and inclusive regional economy. What further distinguishes the Mini MBA is its ability to meet entrepreneurs where they are, whether they are launching their first venture or recalibrating after decades of experience. The program has become a trusted space for seasoned business owners seeking to retool, upskill, and adapt to changing markets, technologies, and growth opportunities. Participants come from diverse backgrounds and business life stages, with cohorts representing entrepreneurs ranging in age from 25 to 82, creating a rich, cross-generational learning environment that reinforces the Mini MBA’s role as a platform for lifelong entrepreneurial development. The It’s Your Time program, hosted by the Coachella Valley Women’s Business Center at the Palm Desert Entrepreneurial Resource Center, continues to play a vital role in expanding entrepreneurial access and opportunity across the Coachella Valley. Designed to support women entrepreneurs at the earliest stages of business formation and growth, the program delivers structured education, hands-on guidance, and one-on-one advising that helps participants build confidence, clarity, and momentum. Through a cohort-based model, participants develop foundational skills in business planning, financial literacy, marketing, and operations while gaining the support of a trusted peer network. Over the past 24 months, It’s Your Time has graduated more than 50 participants, many of whom have gone on to launch new ventures, formalize existing businesses, and increase revenue and stability. The program’s impact extends beyond individual outcomes, 14 Page 7 of 14 contributing directly to the region’s small business ecosystem by supporting women-led enterprises that generate income, create jobs, and strengthen local neighborhoods. As part of the Palm Desert ERC’s integrated service model, the program serves as a critical entry point for entrepreneurs who may later engage in advanced programming, access to capital, and long-term business advising. A defining feature of It’s Your Time is its commitment to inclusion and accessibility. To ensure business education reaches all segments of desert residents, the CVWBC offers the full program series in Spanish, removing language barriers and expanding opportunity for underserved communities. This bilingual approach reflects a broader commitment to equitable economic development, reinforcing the ERC’s mission to meet entrepreneurs where they are and empower them with the tools needed to succeed. 15 Page 8 of 14 FEATURED SUCCESS STORIES Palm Desert-based Urban Habitat stands as a powerful example of how long-term local investment, entrepreneurial vision, and community commitment can converge to create meaningful regional impact. Founded in 2016 by Brett and Theresa Brennan, Urban Habitat has grown from a locally rooted venture into one of California’s premier landscape contracting firms. Headquartered in Palm Desert, the company’s success reflects more than business growth; it represents what is possible when entrepreneurs choose to build, scale, and reinvest in the communities that helped shape them. That growth was recognized on a statewide stage at the 2025 Spirit of the Entrepreneur Awards, where Urban Habitat was honored as Top Construction Firm and received the coveted Best of the Best award. Today, the company employs more than 170 team members, supporting families across the Coachella Valley and beyond. Even as Urban Habitat has expanded its footprint, its leadership has remained deeply connected to Palm Desert, demonstrating that high-growth companies can achieve excellence while staying rooted in the region. Urban Habitat’s ongoing support of CSUSB’s Palm Desert Campus and the Palm Desert Entrepreneurial Resource Center reflects its commitment to building the next generation of leaders. As regular guest speakers at ERC programming and student-centered events, Brett and Theresa Brennan provide students and aspiring entrepreneurs with direct access to real-world insight, leadership perspective, and the realities of building a successful company. By pairing an entrepreneurial mindset with community philanthropy, Urban Habitat reinforces a full-circle ecosystem where education leads to opportunity, opportunity leads to careers, and those careers circle back to strengthen the local economy. Resort Carpet & Tile Care, co-founded by Matt McLeroy and Andrew Hernandez, is a professional carpet and tile cleaning business serving residential and commercial clients throughout Riverside County. After transitioning into the business full-time in August 2025, Matt quickly scaled operations, growing the company to two additional employees and shifting its focus to long-term commercial contracts, now representing over 80% of total revenue. Image 1(From left to right): Dr. Ezekiel Bonillas, Martha Z. (PDC student), Julissa R. (PDC student), Camden C (PDC student), Brett Brennan, Theresa Brennan at the 2025 Spirit of the Entrepreneur Awards 16 Page 9 of 14 With support from the Coachella Valley Women’s Business Center (CVWBC), Matt addressed key challenges around cash flow, collections, and operational systems. Despite strong monthly sales, outstanding invoices and the lack of a client management system were limiting growth. CVWBC provided strategic guidance on improving collections, strengthening referral programs, and implementing systems to support sustainable operations. The structured planning and accountability offered by CVWBC proved most impactful. By setting clear 30-, 60-, and 90-day goals, the business gained clarity, improved cash flow, and built momentum for long-term growth. Resort Carpet & Tile Care consistently exceeds $20,000 in monthly sales today and has established a strong commercial client base. Recently, Resort Carpet & Tile Care was recognized with the Best New Business Award from the Palm Desert Chamber of Commerce. Image 2: Cofounders Matt McLeroy and Andrew Hernandez 17 Page 10 of 14 2026 UPCOMING PROGRAMMING & INITIATIVES Mini MBA in Entrepreneurship (Cohort-based series)—A curriculum designed to empower current and aspiring entrepreneurs. From nurturing an entrepreneurial mindset to mastering financial considerations, human resources, strategy, and the secrets to scaling for growth, each session is packed with insights ready to be applied to a venture. This 6-week intensive course offers participants an opportunity to network with like- minded entrepreneurs, innovate within their companies, and apply new knowledge. (Fall & Spring) Industry Insights—Featuring business owners from a wide array of industries in the Greater Coachella Valley. This series explores the latest trends, innovative techniques, and business strategies that will elevate, inform, and inspire entrepreneurs in all business life cycles. Participants uncover valuable insights from a distinguished panel of speakers and refine skills in this dynamic and ever-evolving series. (Ongoing) Entrepreneur Meetup – as a part of our ongoing focus of making the Palm Desert ERC the go-to location for all resources and events related to entrepreneurship, in Fall 2025 we will be launching the Entrepreneur Meetup event that will give aspiring and existing entrepreneurs an opportunity to connect, share stories, and build meaningful relationships The goal is to establish this as a monthly event that will provide a regular platform for entrepreneurs, investors, and industry experts to connect, collaborate, and gain valuable insights (New). AI Launchpad—Interactive workshops to help entrepreneurs and small business owners turn ideas in to custom AI-assistants. The objective is to help regional businesses and entrepreneurs boost their company or passion projects. Utilizing the latest AI’s such as ChatGPT, Gemini Gems, Cursor, Lovable, Bolt, and more. (Ongoing) It’s Your Time—A 12-week program offered by the CVWBC and designed to help women start and grow their own businesses; laying foundations on helping them become successful entrepreneurs. (Ongoing) CVWBC Accelerate—A Next Level is a six-week program to help businesses grow by providing intensive guidance, support, and structure. Business owners identify timing to scale their business and the types of growth. A program designed to help business owners prepare to become employers. (Ongoing) Riverside County Innovation Month Pitch Competition—In collaboration with the County of Riverside, we will be hosting a regional pitch competition on April 7, 2026, at the Palm Desert ERC. Coachella Valley businesses that enter the competition will receive free training and as they compete for prize money and a coveted spot at the Riverside County Innovation Month Pitch Finale event in late April 2026. 18 Page 11 of 14 Cyber & AI Entrepreneurship Academy—designed as an intensive educational program (like the Mini-MBA, we aim to offer a cohort at the Palm Desert ERC in 2026, in collaboration with the Center for Cyber and AI at CSUSB. The goal of the program is to help professionals and students with basic technical skills in cyber and AI to acquire foundational knowledge in entrepreneurship to enable them to create new ventures in the cyber/AI industry. 19 Page 12 of 14 CONCLUSION As the Palm Desert Entrepreneurial Resource Center concludes its second full year under CSUSB’s Randall W. Lewis School of Entrepreneurship & Innovation along with the Randall W. Lewis Center for Entrepreneurship management, 2025 stands as a defining period of scale, performance, and measurable return on investment. Building on the foundational work completed in 2024, the ERC transitioned from system startup to sustained execution, delivering significant gains across business formation, capital access, job support, and program participation. The year-to-date outcomes reflected in this report demonstrate not only increased activity, but a maturing entrepreneurial ecosystem capable of producing durable economic impact for Palm Desert and the greater Coachella Valley. Throughout 2025, the ERC strengthened its role as a regional hub where education, entrepreneurship, and economic development intersect. Flagship programs such as the Mini MBA and It’s Your Time expanded capacity and deepened impact, while partnerships with the City of Palm Desert, Riverside County Office of Economic Development, and private-sector leaders continued to unlock capital, talent pathways, and growth opportunities. The diversity of entrepreneurs served, ranging from first-time founders to seasoned business owners, underscores the ERC’s effectiveness as an inclusive platform designed to meet businesses at every stage of their lifecycle. Looking ahead, the Palm Desert ERC is well positioned to build on this momentum. With established systems, trusted partnerships, and a growing pipeline of entrepreneurs and employers, the ERC will continue advancing initiatives that strengthen local businesses, retain talent, and foster innovation rooted in the region. Together, the City of Palm Desert, CSUSB, and ERC partners are cultivating a resilient entrepreneurial environment where education leads to opportunity, opportunity leads to careers, and successful enterprises reinvest in the community. This full-circle model remains central to the ERC’s mission and to Palm Desert’s long-term economic vitality. Image 3: Entrepreneurs and entrepreneurship students interacting at annual Lunch with the Entrepreneurs event at Palm Desert ERC 20 Page 13 of 14 APPENDIX Explanatory Notes for Key Metrics: Business Startup metric is comprised of clients served whose business is in one of three categories: (a) Less than 1 year in business, (b) pre-venture stage, and (c) startup phase. There is an overlap between the pre-venture and launch phase. This is the result of the natural progression of the business life cycle from planning stage to launch. However, in the case of our reporting for 3rd quarter, we noted 129 distinct entrepreneurs that were served through our programs in the “startup” phase which includes businesses that in prelaunch phase of business through their first year after launching their business. Clients self-report their progress and for the purpose of our data collection, a business is considered “launched” when a client reports any of the following: first sale, obtain business license, incorporates, or files a fictitious name. Businesses assisted consists of entrepreneurs and/or business owners that have obtained services from any of the ERC programs. This includes the Randall W. Lewis Center for Entrepreneurship (RLCE), Coachella Valley Women’s Business Center (CVWBC), AmPac Business Capital, and the Randall W. Lewis School of Entrepreneurship and Innovation (RLSEI). This number does not include CSUSB students that attend regular undergraduate programs during CSUSB’s academic school year such as course sessions. Business events at the Palm Desert ERC exclude programming assumed from the previous ERC manager (Riverside County Registrar of Voters polls, or City of Palm Desert Outreach programs). What are included in these events are unique programs hosted by Randall W. Lewis School of Entrepreneurship and Innovation (RLSEI) and Randall W. Lewis Center for Entrepreneurship (RLCE). These include Research Weeks, the Mini MBA program, business social and networking events, and Masterclass by CVWBC. In addition, Palm Desert ERC service providers provided virtual and webcast events to expand access and geographic footprint of services along with in-person events. We have noted and distinguished the events held in-person at the Palm Desert ERC as well as events hosted virtually from the Palm Desert ERC facility. In addition, we note the distinctive event attendance for virtual versus in-person events. Economic Impact figures are important quantitative figures utilized to measure impact on business clients serviced at the Palm Desert ERC. These numbers are collected from service providers at the Palm Desert ERC and compiled for the purposes of this report. Each program administered through the Palm Desert ERC is tasked with collecting data on clients serviced. For example, the CVWBC intakes each new client and has regular follow ups where clients will report and document progress. Data is verified with documentation provided by each program through various methods. Debt Financing: These figures include SBA-backed financing, bank loans and/or lines of credit that clients obtain as a result of counseling, consulting, and advising services provided through Palm Desert ERC programming. Debt financing is a method of raising capital for a business or project by borrowing funds from external 21 Page 14 of 14 sources. The borrower is obligated to repay the principal amount borrowed, along with any interest or fees, over a specified period. Equity Financing: These figures include funds that clients/entrepreneurs invest in their own firms as well as capital raised by selling ownership stakes in their firms. Equity financing is a method of raising capital for a business or project by selling ownership shares or equity stakes to investors in exchange for funds. Unlike debt financing, where the business borrows money and must repay it with interest, equity financing involves issuing shares of ownership in the company to investors, who become partial owners of the business. Sales Revenue: For the purpose of this report, we track contracts that are awarded to client companies of the ERC such as government or procurement contacts. In addition, we track sales revenue increase that clients serviced at the Palm Desert ERC obtain as a result of services provided such as professional or technical development workshops, training events, in addition to consulting and advisory services. Jobs supported: This figure is directly reported by client companies of the Palm Desert ERC. It is a method utilized to quantify the direct number of jobs that are supported as result of ERC services. Part-time and full-time jobs are summarized in this figure. For example, a business owner that hires two (2) part-time employees would quantify as three (3) jobs. Or a business owner and spouse that have two (2) full time employees would count as four (4). This figure typically includes the business owner and the employees. It is difficult to track part-time vs. full-time employees as many clients experience fluctuations in business and these numbers are self-reported by business owners and documented by ERC service providers. Underrepresented Minority-Owned Firms: These figures include the number of minority-owned businesses as defined by the U.S. Small Business Administration (SBA). These include firms that 51%+ owned by a female, Latino, Black, Asian American and other groups classified as minorities. Companies in Residence and Graduated Companies: This figure quantifies and tracks companies that are based in the ERC and pay a monthly rental for an office or cubical space. As of June 2024, there are 6 distinct companies that rent office space at the Palm Desert ERC. This excludes CSUSB faculty offices, classrooms, and the CVWBC. Graduated companies are companies that sign up for a series of programs and obtain completion certificate upon completion of program requirements. In the 2nd quarter our partners gained momentum and we witnessed an increase in activity as result of CVWBC’s It’s Your Time and the School of Entrepreneurship’s Mini MBA programs. 22 23 24 Entre . c s u s b . e d u #Think L i k e A n O w n e r 3 What is the Palm Desert ERC? Rebranded version of Palm Desert iHub (launched March 2025) Partnership: City of Palm Desert, Riverside County, CSUSB Randall W. Lewis School of Entrepreneurship & RWLCE Location: 37023 Cook Street, Suite 102, across from CSUSB Palm Desert Campus 25 Entre . c s u s b . e d u #Think L i k e A n O w n e r 4 What we DO •Business training, counseling, access to capital •Networking & Community Events •Co-working space, offices, meeting rooms, conference areas •Mini-MBA program, Veterans Entrepreneurship, Lunch with the Entrepreneurs •Specialized training via Coachella Valley Women’s Business Center (CVWBC), Small Business Development Center (CVSBDC), AI Coachella Valley (AICV), AmPac Business Capital www.PalmDesertERC.org 26 Entre . c s u s b . e d u #Think L i k e A n O w n e r 5 What we’ve DONE (2025) •1186 Businesses Assisted •112 Business events with 2230+ attendees •$87.2M Access to Business Capital •1629+ Jobs supported; 745 Woman-owned businesses assisted •Business Support Resources: AI Coachella Valley (AICV), First Choice Business Brokers, AmPac Business Capital, Free Vector Advisors www.PalmDesertERC.org 27 Randall W. Lewis Center for Entrepreneurship's $1 Billion Economic Impact Initiative 28 29 30 Entre . c s u s b . e d u #Think L i k e A n O w n e r 9 Dr. Ezekiel Bonillas Assistant Professor of Entrepreneurship ebonillas@csusb.edu (909) 537-5745 www.linkedin.com/in/ezekielbonillas 31 32 33 34 From:Jana Koroczynsky To:CityClerk Subject:PULTE EXPLORE AGAIN Date:Thursday, March 12, 2026 9:26:40 AM We have to replace our pool filters, again, because of the sand experienced since Pulte Explore removed the soil stabilizer on the escarpment. We assumed they were going to plant the "meandering trail" after they finished the wall and scaped the slope. But instead, we have extra pool cleaning, again, and have other expenses in order to remove THEIR sand from OUR pool, deck, landscape, and even inside the home. When we ask PULTE for watering of the slope and trail, the response is, at best, INSUFFICIENT. What are their immediate plans for the "meandering trail?" Are they going to plant the landscaping or replace the soil stabilizer? Communicating with PULTE is nearly impossible so we are communicating with the city. We need action immediately. Jana Koroczynsky 35 36 From:Team Mom Charities To:jeff.gonzalez@asm.ca.gov Cc:district4@rivco.org; district2@rivco.org; district1@rivco.org; planning@rivco.org; KiWright@rivco.org; esmedina@rivco.org; bent@ranchomirageca.gov; Information Mail; cob@rivco.org; CityClerkMail@laquintaca.gov; CityClerk; kristier@ranchomirageca.gov; CityClerk@ranchomirageca.gov Subject:URGENT: Special Agenda Request – Team Mom Safe Haven Sanctuary (Public Benefit Land Lease/Donation) Date:Thursday, March 12, 2026 9:39:52 PM ​To: The Honorable Members of the California State Legislature, Riverside County Board of Supervisors, and the City Councils of Rancho Mirage, La Quinta, and Palm Desert, ​ Dear Clerks, Administrators, and Honorable Members, ​ I am writing to you today with a proposal for a vital community partnership. My name is Margaret Webb, known as Team Mom Across the Nation. As the President of Team Mom Charities Inc. (Tax ID: 85-3794194), I am seeking a public benefit land lease or property donation within the Coachella Valley for the Team Mom Safe Haven Sanctuary. ​Acknowledgment of Upcoming Sessions & Time Sensitivity I am writing with the utmost respect for your time and current agendas. I am aware of the following upcoming regular sessions: ​ Rancho Mirage City Council: Regularly scheduled for April 2nd (following the March 5th session). ​ La Quinta City Council: Upcoming meeting on March 17th. ​ Palm Desert City Council: Upcoming Study Session on March 26th. ​ Riverside County Board of Supervisors: Meetings held every Tuesday at 9:30 a.m. ​While I understand these sessions are already being finalized, I am working against a strict March 21st deadline for the Lowe’s Bucket List Grant. Because of this, I respectfully request a special meeting or a brief emergency addition to an upcoming agenda to discuss this land lease proposal. I want to be as courteous and considerate of your allotted time as possible while ensuring we do not miss this opportunity for our community’s veterans and youth. ​Infrastructure & Referral Requirements The sanctuary is a low-impact facility for Community Solace and Reflection and must be plumbed for water with access to gas/utilities. Our safety protocols are strictly referral-based: ​Veterans: Referral required from the VA. ​Youth: Referral required from a Principal, Teacher, Counselor, Pastor, Doctor, or Judge. ​Stewardship: I serve as a volunteer caretaker alongside my family and community volunteers; there is no paid staff. 37 ​Compliance and Oversight All legal matters regarding this lease are overseen by my Pro Bono Counsel, Michael Patrick Duff, ensuring full transparency and compliance with California public land laws. ​ Respectfully making this a matter of record, ​Margaret Webb (Team Mom) President, Team Mom Charities Inc. Phone: 760-569-9177 Compliance Attorney: Michael Patrick Duff (Bar #230280) Attorney Phone: 760-420-9298 38 1 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 *Councilmember Quintanilla arrived at 2:05 p.m. 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 26, 2026, at 2:00 p.m., in the Council Chamber, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. STUDY SESSION TOPICS 2.a 2026 CITY COUNCIL GOAL SETTING City Manager Chris Escobedo outlined the 2026 Goal Setting process and introduced staff who presented a PowerPoint update on the status of the 2025 City Council goals. City Councilmembers then presented their proposed goals for 2026. Mayor Trubee stated that his proposed goal related to the Palm Desert Historical Society has been withdrawn. City Clerk Mejia advised that a resolution formally adopting the 2026 City Council Goals will be presented for adoption at a future meeting. Councilmember Harnik, with City Council consensus, requested that the North Sphere area be renamed. 3. ADJOURNMENT The City Council adjourned the Study Session at 2:51 p.m. Respectfully submitted, _________________________ Michelle Nance Assistant City Clerk/Assistant Secretary _________________________ Anthony J. Mejia, MMC City Clerk/Secretary 39 40 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 - 3:00 P.M. A Regular Meeting of the Palm Desert City Council was called to order by Mayor Trubee on Thursday, February 26, 2026, at 3:00 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 3:00 p.m. 4. CLOSED SESSION AGENDA 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 led the Pledge of Allegiance. 7. INSPIRATION Councilmember Harnik 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. 41 City of Palm Desert City Council Minutes February 26, 2026 2 9. AWARDS, PRESENTATIONS, AND APPOINTMENTS 9.a PROCLAMATION - LEADERSHIP COACHELLA VALLEY 25TH ANNIVERSARY Mayor Trubee presented a Proclamation to representatives of Leadership Coachella Valley in celebration of their 25th anniversary. 9.b PRESENTATION - LEADERSHIP COACHELLA VALLEY Ryland Penta, Gerry Neighbors, Eileen Lynch, Matt McLeroy, Kelly Tweedie, Erin Hyland, Jessika Pollard, and Sean Webb, representing Leadership Coachella Valley, narrated a PowerPoint presentation highlighting the program's 25-year legacy of developing informed, connected leaders who strengthen regional collaboration, civic engagement, and economic growth across the Coachella Valley. 9.c PRESENTATION - RIVERSIDE UNIVERSITY HEALTH SYSTEM, MATURE ADULT PROGRAM This item was continued to March 12, 2026. 10. CITY MANAGER COMMENTS 10.a SHERIFF DEPARTMENT UPDATE Lt. Porras, of the Riverside County Sheriff’s Department, introduced Corporal Avila, who provided a department update highlighting the recent addition of two (2) new motorcycles to enhance traffic enforcement, special event coverage, and rapid response capabilities throughout the City. 10.b FIRE DEPARTMENT UPDATE Deputy Chief of Eastern Operations Beverlin, of CAL FIRE/Riverside County Fire, expressed his gratitude to the City and introduced new Division Chief Cody Wright. 11. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmembers provided updates on their attendance at various meetings and events. Councilmember Quintanilla, with the support of Mayor Trubee, requested that staff explore a review of the Cannabis scorecard. Mayor Pro Tem Pradetto, with the support of Councilmember Harnik, requested that the Mayor and Mayor Pro Tem work with the City Manager to review the request for action procedure. 12. NON-AGENDA PUBLIC COMMENTS None. 42 City of Palm Desert City Council Minutes February 26, 2026 3 13. CONSENT CALENDAR Mayor Pro Tem Pradetto announced his recusal from Item 13.j due to the proximity of the matter to his real property. Motion by: Councilmember Harnik Seconded by: Councilmember Nestande To approve the consent calendar as presented. Motion Carried (5 to 0) 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES Motion by: Councilmember Harnik Seconded by: Councilmember Nestande Approve the Minutes of February 12, 2026. Motion Carried (5 to 0) 13.b APPROVAL OF WARRANT REGISTERS Motion by: Councilmember Harnik Seconded by: Councilmember Nestande Approve the warrant registers issued for the period 2/5/2026 to 2/12/2026. Motion Carried (5 to 0) 13.c JANUARY 2026 PROCUREMENT REPORT Motion by: Councilmember Harnik Seconded by: Councilmember Nestande Receive and file the monthly Procurement Report for January 2026. Motion Carried (5 to 0) 43 City of Palm Desert City Council Minutes February 26, 2026 4 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. Motion by: Councilmember Harnik Seconded by: Councilmember Nestande 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.” Motion Carried (5 to 0) 13.e RATIFICATION OF LETTER SUPPORTING ASSEMBLY BILL 1708 (SOLACHE) – HOMELESS HOUSING, ASSISTANCE, AND PREVENTION (HHAP) PATHWAYS FOR CITIES ACT Motion by: Councilmember Harnik Seconded by: Councilmember Nestande Ratify the issuance of the letter supporting Assembly Bill 1708 (Solache) - Homeless Housing, Assistance, and Prevention (HHAP) Pathways for Cities Act. Motion Carried (5 to 0) 13.f RATIFICATION OF LETTER SUPPORTING CITY OF INDIAN WELLS LOW FLOW CHANNEL PROJECT (PROPOSITION 1 GRANT APPLICATION) Motion by: Councilmember Harnik Seconded by: Councilmember Nestande 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. Motion Carried 44 City of Palm Desert City Council Minutes February 26, 2026 5 13.g RATIFICATION OF LETTER SUPPORTING CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO COMMUNITY PROJECT FUNDING REQUEST FOR REGIONAL ENTREPRENEURIAL RESOURCE CENTERS Motion by: Councilmember Harnik Seconded by: Councilmember Nestande 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. Motion Carried (5 to 0) 13.h AMENDMENT TO THE 2026 CITY COUNCIL LIAISON AND SUBCOMMITTEE ASSIGNMENTS Motion by: Councilmember Harnik Seconded by: Councilmember Nestande Approve amendments to the 2026 City Council Liaison and Subcommittee Assignments. Motion Carried (5 to 0) 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. Motion by: Councilmember Harnik Seconded by: Councilmember Nestande 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. Motion Carried (5 to 0) 45 City of Palm Desert City Council Minutes February 26, 2026 6 13.j EXCLUSIVE NEGOTIATION AGREEMENT BETWEEN THE CITY AND THE CLUB MCC (MARRAKESH COUNTRY CLUB) FOR PROPERTY KNOWN AS THE HAYSTACK/PORTOLA SITE Motion by: Councilmember Harnik Seconded by: Councilmember Nestande 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. Motion Carried (4 to 0) 13.k AGREEMENT WITH REGENCY ESTATES HOMEOWNERS’ ASSOCIATION FOR IMPROVEMENTS AT THE TAMARISK ROW RETENTION BASIN AND ACCEPTANCE OF EMERGENCY ACCESS EASEMENT Motion by: Councilmember Harnik Seconded by: Councilmember Nestande 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. Motion Carried (5 to 0) 46 City of Palm Desert City Council Minutes February 26, 2026 7 13.l APPROPRIATION OF FISCAL YEAR 2025-26 FUNDS FOR THE CALIFORNIA DEPARTMENT OF JUSTICE TOBACCO GRANT PROGRAM Motion by: Councilmember Harnik Seconded by: Councilmember Nestande 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. Motion Carried (5 to 0) 13.m COVE COMMUNITIES SERVICES COMMISSION AREAS IDENTIFIED FOR ENHANCED COLLABORATION Motion by: Councilmember Harnik Seconded by: Councilmember Nestande Receive and file report on Cove Communities Services Commission areas identified for enhanced collaboration. Motion Carried (5 to 0) 14. ACTION CALENDAR None. 15. PUBLIC HEARINGS 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. Pedro Rodriquez, Code Compliance & Support Services Manager, narrated a PowerPoint presentation and responded to City Council inquiries. Mayor Trubee opened the public hearing. 47 City of Palm Desert City Council Minutes February 26, 2026 8 The following individuals spoke in support of allowing adult use of natural Kratom products and a prohibition on synthetic high-potency Kratom products: • Don Mezzie • Jordan Thomas • Alec Sholay • Matthew McHolland • GiGi Croupe • Heather S. Mayor Trubee closed the public hearing, there being no other member of the public wishing to speak. Motion by: Councilmember Harnik Seconded by: Councilmember Quintanilla 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.” Motion Carried (5 to 0) 16. ADJOURNMENT The City Council adjourned at 5:10 p.m. Respectfully submitted, _________________________ Michelle Nance Assistant City Clerk/Assistant Secretary _________________________ Anthony J. 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Staviski 1.30.2643003001104150 65884107 2,558.00 02/19/202600006644 RSG INCW1 HSNG RENTAL RATE ANALYSIS_DE2543092008714195 14775 1,127.50 02/19/202600006645 STAPLES BUSINESS ADVANTAGEW1 FB26-1 Office Supplies p.142110001104430 6055465167 78.18 02/19/202600006646 THE PITTSBURGH PAINTS COW1 GRAFFITI REMOVAL SUPPLIES43915021104310 972220009964 78.45 02/19/202600006647 TKE ENGINEERING INCW1 PLAN CHECK & GENERAL ENG_NV2543011501104423 2025-1716 3,450.00 02/19/202600006647 TKE ENGINEERING INCW1 PLAN CHECK & GENERAL ENG_DE2543011501104423 2025-1879 625.00 02/19/202600006647 TKE ENGINEERING INCW1 Multiple HA Property CM NV2543311008714195 2025-1723 365.00 02/19/202600006647 TKE ENGINEERING INCW1 Multiple HA Property CM DC2543311008714195 2025-1886 2,135.00 02/19/2026Report Date 8Page City and Housing Docusign Envelope ID: 46AC16C4-E438-4051-8BB6-B1EAD9427B80 56 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/19/2026 - 2/19/2026 City of Palm Desert Account Number 02/19/202600006647 TKE ENGINEERING INCW1 HA Parking Lot Imps Nov2543311008714195 2025-1722 750.00 02/19/202600006648 TPX COMMUNICATIONS COW1 INTRNET/PHONE SVC JAN2543650001104190 188994101-0 9,283.39 02/19/202600006649 UNITY COURIER SERVICE, INCW1 FY2526 Book Courier Service43090002524662 44513 391.32 02/19/202600006649 UNITY COURIER SERVICE, INCW1 FY2526 Book Courier Service43090002524662 45014 424.03 02/19/202600006649 UNITY COURIER SERVICE, INCW1 FY2526 Book Courier Service43090002524662 45541 394.81 02/19/202600006650 URBAN WORXW1 R/M PLUMBING SRV - 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2/26/2026 City of Palm Desert Account Number 02/26/202600006659 AMAZON CAPITAL SERVICES INC.W1 Amazon prog supplies.43900002524662 1DYY-1XJY-L3H1 24.56 02/26/202600006660 AVENU MUNISERVICES LLCW1 STARS Services Q3 2025 JUL-SEP43090001104159 INV06-022509 1,202.06 02/26/202600006661 BECK OIL INCW1 02/02/26 FLEET GAS/DIESEL FUEL42170001104331 200205 4,517.70 02/26/202600006662 BMW MOTORCYCLE OF RIVERSIDEW1 FY 25/26 RSO POLICE MTRCYCLE R43340001104210 5049820 650.33 02/26/202600006662 BMW MOTORCYCLE OF RIVERSIDEW1 FY 25/26 RSO POLICE MTRCYCLE R43340001104210 5049821 648.15 02/26/202600006662 BMW MOTORCYCLE OF RIVERSIDEW1 FY 25/26 RSO POLICE MTRCYCLE R43340001104210 5049867 337.13 02/26/202600006662 BMW MOTORCYCLE OF RIVERSIDEW1 FY 25/26 RSO POLICE MTRCYCLE R43340001104210 5049921 213.15 02/26/202600006662 BMW MOTORCYCLE OF RIVERSIDEW1 RSO BMW Motorcycle Replacement43914002294210 A24515 26,514.17 02/26/202600006663 BRIAN K. STEMMER CONSTRUCTIONW1 TO0024016 FS#33 BLDG REPAIRS43310002304220 9782 630.00 02/26/202600006664 CALIBA INCW1 RTNT 24251714 / C45120B20600002300000 PP#12-RTNT -19,624.54 02/26/202600006664 CALIBA INCW1 FS102 Construction Cont JAN2644002002304220 PP#12 392,490.75 02/26/202600006665 CHUCK, BRADW1 02/05/26 SAFETY FOOTWEAR - BC43915001104300 BOOTREIMB-BC0226 250.00 02/26/202600006666 CITY NETW1 NV25 STREET OUTREACH43090002264212 2025-1100121 20,882.67 02/26/202600006667 CYNTHIA HERNANDEZW1 ALA ADV AIR 6.25-6.29 C.H11501002520000 ALA ADV AIR 6/25 483.40 02/26/202600006668 DANIEL HURTADOW1 PSA PRDM DHURTADO 3/9-1211501001100000 ADV MEI 3.09.26 301.00 02/26/202600006668 DANIEL HURTADOW1 PSA MILE DHURTADO 3/9-1211501001100000 ADV MILE 3.09.26 259.55 02/26/202600006669 DECKARD TECHNOLOGIES INCW1 STR MONITOR & ENFORC_JA2643090001104422 2393 5,783.33 02/26/202600006670 DESERT NAPA AUTO PARTSW1 MISC FLEET SUPPLIES43340001104331 176760 92.73 02/26/202600006670 DESERT NAPA AUTO PARTSW1 MISC FLEET SUPPLIES43340001104331 177961 15.96 02/26/202600006670 DESERT NAPA AUTO PARTSW1 MISC FLEET SUPPLIES43340001104331 178157 28.25 02/26/202600006670 DESERT NAPA AUTO PARTSW1 MISC FLEET SUPPLIES43340001104331 179672 8.69 02/26/202600006670 DESERT NAPA AUTO PARTSW1 MISC FLEET SUPPLIES43340001104331 178364 380.61 02/26/202600006670 DESERT NAPA AUTO PARTSW1 SUPPLIES FLEET #2501 - OWNED43340001104331 180147 24.99 02/26/202600006670 DESERT NAPA AUTO PARTSW1 MISC FLEET SUPPLIES43340001104331 171882 -14.13 02/26/202600006671 DESERT REDI-MIXW1 R/M CONCRETE - STREETS43320001104310 1217508 523.28 02/26/202600006671 DESERT REDI-MIXW1 R/M CONCRETE - OCOTILLO43320001104310 1217736 1,919.21 02/26/202600006671 DESERT REDI-MIXW1 R/M CONCRETE - ALESSANDRO43320001104310 1217738 1,354.35 02/26/2026Report Date 2Page City and Housing Docusign Envelope ID: 7427C420-8F5E-43E6-9EF5-FD83B58D911B 64 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/26/2026 - 2/26/2026 City of Palm Desert Account Number 02/26/202600006672 FEDERAL EXPRESS CORP.W1 YONATAN DOTAN & TODD HILEMAN43660001104130 9-176-06852 28.29 02/26/202600006673 FG CREATIVE INCW1 25/26 ADVERTISING SVCS EPPBID43215002714491 10397 24,995.00 02/26/202600006674 FRAZER LTDW1 FS MEDIC UNIT DOOR ALARM44030005304220 104036 366.89 02/26/202600006675 HERMANN DESIGN GROUP INCW1 OC25 REV HOMME ADAMS PK DESIGN44001004004618 25043-003REV 558.75 02/26/202600006676 MAGER, VANESSAW1 F&B SAN PABLO MTG VM 2/12/2643125001104430 SP02-12REIM1-VM 141.04 02/26/202600006677 MATICH CORPORATIONW1 Eldorado Dr St Rehab Final Inv43915052114311 012625017-SUP 35,257.95 02/26/202600006678 MIDWEST TAPE LLCW1 FY2526 PHYSICAL DVD AND BLUE R42112002524662 508418416 154.33 02/26/202600006679 MUNICIPAL RESOURCE GROUP LLCW1 Records Management- JAN2543090001104111 260158 2,000.00 02/26/202600006680 NATIONAL AUTO FLEET GROUPW1 2025 PLUG-IN HYBRID VEH #250944030005304310 WC10729 34,832.88 02/26/202600006681 PAINTERS WAREHOUSE OFW1 GRAFFITI REMOVAL SUPPLIES43915021104310 HTGEE 48.65 02/26/202600006682 PALM DESERT ACE HARDWAREW1 STREET MAINT SUPPLIES42190001104310 253631 69.58 02/26/202600006682 PALM DESERT ACE HARDWAREW1 R/M EQUIP SUPPLIES - CITY HALL42190001104340 253782 29.33 02/26/202600006682 PALM DESERT ACE HARDWAREW1 BLDG SUPPLIES - CITY HALL42190001104340 253504 10.43 02/26/202600006682 PALM DESERT ACE HARDWAREW1 R/M BLDG SUPPLIES - CITY HALL42190001104340 253606 97.86 02/26/202600006682 PALM DESERT ACE HARDWAREW1 R/M BLDG SUPPLIES - CITY HALL42190001104340 253625 9.53 02/26/202600006682 PALM DESERT ACE HARDWAREW1 R/M BLDG SUPPLIES - FREEDOM42190001104611 253502 90.23 02/26/202600006682 PALM DESERT ACE HARDWAREW1 R/M SMALL TOOLS - FREEDOM42190001104611 253512 32.61 02/26/202600006682 PALM DESERT ACE HARDWAREW1 R/M SMALL TOOLS - FREEDOM42190001104611 253513 13.04 02/26/202600006683 POWELL, ERICAW1 02/18/26 STDT ART MEDALLIONS42190004364650 REIMB-EP021826 468.42 02/26/202600006684 PROPER SOLUTIONS INC.W1 CTYCLRK TMP EMP BRANDY 2.6.2643003001104111 17891 427.80 02/26/202600006684 PROPER SOLUTIONS INC.W1 CTYCLRK TMP EMP BRANDY 2.6.2643003001104111 17891 628.59 02/26/202600006684 PROPER SOLUTIONS INC.W1 CTYCLRK TMP EMP BRANDY 2.6.2643003001104111 17891 433.61 02/26/202600006685 ROBERT HALFW1 Temp Acc. 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Staviski 2.6.2643003001104150 65907033 2,558.00 02/26/202600006686 SATOR SPORTS INCW1 SOCCER GOAL SETS - HOVLEY PARK42190001104611 151536 8,181.39 02/26/202600006687 SHUSTER ADVISORY GROUP LLCW1 ADVSRY FEE 401a 457b RHS JAN2643090001104159 10653 2,083.33 02/26/202600006688 SOULE, THOMASW1 LOCC SOULE MILE 1.23.2643115001104417 MILE 1.23.26 3.77 02/26/202600006688 SOULE, THOMASW1 LOCC SOULE MEI 1.23.2643120001104417 MEI 1.23.26 64.50 02/26/2026Report Date 3Page City and Housing Docusign Envelope ID: 7427C420-8F5E-43E6-9EF5-FD83B58D911B 65 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/26/2026 - 2/26/2026 City of Palm Desert Account Number 02/26/202600006688 SOULE, THOMASW1 LOCC SOULE AIR 1.23.2643120001104417 FLIGHT 1.23.26 442.77 02/26/202600006689 SUPERB ENGINEERING INCW1 RTNT 25262225 / C4980020600004000000 PP#3-RTNT -2,719.56 02/26/202600006689 SUPERB ENGINEERING INCW1 CAHUILLA HILLS PARK ADA IMPS44002004004618 PP#3 54,391.15 02/26/202600006690 RAMSAY GROUPW1 JA26 CDBG ADMIN43090002204800 18 3,800.00 02/26/202600006691 UNITY COURIER SERVICE, INCW1 FY2526 Book Courier Service43090002524662 46041 396.56 02/26/202600006692 VERIZON WIRELESS SERVICES LLCW1 RSO LOCATION SURVEILLANCE43904001104210 9022423702 150.00 02/26/202600006693 VISA U.S.A. 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INCW1 VISA TRAVEL REPORT JA26-JU2643091021104430 251200-05670 3,289.00 02/26/202602008802 AMERICAN ASPHALT SOUTH INCW1 RTNT 24251889 / C4926020600002130000 2026-2606-RTNT -542.85 02/26/202602008802 AMERICAN ASPHALT SOUTH INCW1 2025 Slurry Seal Project44002002134134 2026-2606 10,857.05 02/26/202602008803 ANDERSON COMMUNICATION INCW1 COPS RADIO MAINT REPAIR43060011104211 21401B 575.00 02/26/202602008804 BIO TOX LABORATORIESW1 FY 25/26 RSO BLOOD & URINE ANA43904001104210 48570 90.00 02/26/202602008805 BLUE CROSS OF CALIFORNIAW1 EMS 1/22/26 RUN (25-241882)34124002300000 25-049970 497.00 02/26/202602008806 BLUE SHIELD OF CALIFORNIAW1 EMS 12/21/25 RUN (25-663915)34124002300000 25-127394 87.70 02/26/202602008807 C A C E OW1 CACEO DUES - D.MORA43630001104422 300023697 100.00 02/26/202602008808 C A P I OW1 CAPIO WEBINAR 2/24/26 TSoule43120001104417 26822 30.00 02/26/202602008809 CV STRATEGIESW1 Professional Comm Svc Dec2543090001104159 8698 5,531.25 02/26/202602008810 CVRMW1 DE25 (5) SHELTER BEDS43090002254212 7548 3,750.00 02/26/202602008811 DATA TICKET INCW1 CITATION PROCESSING_DE2543090001104422 188915 513.44 02/26/202602008812 DEPENDABLE BREAK ROOMW1 FB26 COFFEE RENTAL - CORPYARD42190001104330 MI49245 108.74 02/26/202602008812 DEPENDABLE BREAK ROOMW1 BREAKROOM SUPPLIES - CORPYARD42190001104330 I110229 585.75 02/26/202602008812 DEPENDABLE BREAK ROOMW1 BREAKROOM SUPPLIES - CH42190001104340 I108212 547.71 02/26/202602008812 DEPENDABLE BREAK ROOMW1 FB26 COFFEE RENTAL - CH43090001104340 MI49382 108.74 02/26/202602008812 DEPENDABLE BREAK ROOMW1 FB26 COFFEE RENTAL - CH43090001104340 MI49459 108.74 02/26/202602008813 DESERT ELECTRIC SUPPLYW1 R/M ELECT/LIGHT - TRAFFIC43325001104250 S129642165.001 901.06 02/26/202602008814 DESERT TREE SPRAYINGW1 FB26 RODENT CONTROL - CC PARK43320011104610 5275 310.00 02/26/202602008814 DESERT TREE SPRAYINGW1 FB26 RODENT CONTROL - PARKS43320011104611 5275 305.00 02/26/2026Report Date 4Page City and Housing Docusign Envelope ID: 7427C420-8F5E-43E6-9EF5-FD83B58D911B 66 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/26/2026 - 2/26/2026 City of Palm Desert Account Number 02/26/202602008814 DESERT TREE SPRAYINGW1 FB26 RODENT CONTROL - GARDENS43910001104611 5275 90.00 02/26/202602008814 DESERT TREE SPRAYINGW1 FB26 RODENT CONTROL - ENTRADA43921011104614 5275 140.00 02/26/202602008814 DESERT TREE SPRAYINGW1 FB26 RODENT CONTROL - K/B43321002854374 5275 90.00 02/26/202602008815 E & E PEL'S ENTERPRISESW1 F&B for 3.2.26 Emp Apprc Event43095011104154 3489 800.00 02/26/202602008816 EISENHOWER MEDICAL CENTERW1 July25 RSO Medical Exam43904001104210 T253260068 1,200.00 02/26/202602008816 EISENHOWER MEDICAL CENTERW1 Nov25 RSO Medical Exam43904001104210 T253340046 800.00 02/26/202602008817 ESCRIBE SOFTWARE LTD.W1 FY2627 ESCRIBE 7.26-2.2714301001100000 21325 20,665.52 02/26/202602008817 ESCRIBE SOFTWARE LTD.W1 FY2526 ESCRIBE 3.26-6.2643620011104190 21325 14,761.15 02/26/202602008818 FIESTA FORDW1 R/M FLEET #072 - OWNED43340001104331 5148780 136.98 02/26/202602008819 GANNETT CALIFORNIA LOCALIQW1 DEC25 Legal Advertising43210001104111 0007511396 3,459.12 02/26/202602008819 GANNETT CALIFORNIA LOCALIQW1 JAN26 Legal Advertising Desert43210001104111 0007557739 3,437.82 02/26/202602008820 GLS USW1 Housing Authority of Riv43660001104130 5636635 5.35 02/26/202602008820 GLS USW1 MBoren, TMitze, ASimley Art43660001104430 5636635 26.76 02/26/202602008821 HORIZON LIGHTING INC.W1 R/M ELECT/LIGHT - CH43310001104340 INV42008 255.85 02/26/202602008821 HORIZON LIGHTING INC.W1 R/M ELECT/LIGHT - TRI-CITIES43371001104610 INV42223 1,205.60 02/26/202602008821 HORIZON LIGHTING INC.W1 R/M ELECT/LIGHT - FREEDOM43325011104611 INV41774 294.80 02/26/202602008822 IN-N-OUT BURGERW1 Empl Appreciation F&B 3/5/2643095011104154 E89584 REM 3,280.84 02/26/202602008823 KAISER FOUNDATION HEALTH PLANW1 EMS 12/21/25 RUN (25-663911)34124002300000 25-127183 1,927.65 02/26/202602008824 KAISER FOUNDATION HEALTH PLANW1 EMS 12/21/25 RUN (25-802857)34124002300000 25-161900 581.39 02/26/202602008825 KNORR SYSTEMS INCW1 ADDT'L PUMP EQUIPMENT - PDAC44001002424549 295428 21,642.29 02/26/202602008826 LEAGUE OF CALIFORNIA CITIESW1 LOCC CONF. L. HOLT 03.11.2643120001104470 INV-49665-W1N3Y4 700.00 02/26/202602008826 LEAGUE OF CALIFORNIA CITIESW1 LOCC CONF. SIJI F. 03.11.2643120001104470 INV-49664-F1S3K2 700.00 02/26/202602008826 LEAGUE OF CALIFORNIA CITIESW1 LOCC CONF. JOSH N. 03.11.2643120001104470 INV-49666-Q5P8V1 700.00 02/26/202602008826 LEAGUE OF CALIFORNIA CITIESW1 LOCC CONF. J. COLLUM 03.11.2643120001104470 INV-49668-Z7J6J5 700.00 02/26/202602008826 LEAGUE OF CALIFORNIA CITIESW1 LOCC CONF. 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HOVLEY43320011104611 239038 5,418.00 02/26/2026Report Date 7Page City and Housing Docusign Envelope ID: 7427C420-8F5E-43E6-9EF5-FD83B58D911B 69 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 2/26/2026 - 2/26/2026 City of Palm Desert Account Number 02/26/202602008850 WHITE CAP LPW1 MISC SUPPLIES - STREETS42190001104310 50034941534 1,045.44 02/26/202602008850 WHITE CAP LPW1 MISC SUPPLIES - STREETS42190001104310 50035076623 1,064.99 02/26/202602008850 WHITE CAP LPW1 MISC SUPPLIES - STREETS43320001104310 50034941589 756.89 02/26/202602008850 WHITE CAP LPW1 MISC SUPPLIES - STREETS43320001104310 50035113791 705.11 Examined and Approved Total For Bank ID - W1 1,045,737.97City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 02/26/2026Report Date 8Page City and Housing Docusign Envelope ID: 7427C420-8F5E-43E6-9EF5-FD83B58D911B 70 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 12, 2026 PREPARED BY: Anthony J. Mejia, City Clerk SUBJECT: CONSIDERATION OF APPROVAL FOR ISSUANCE OF THE KEY TO THE CITY RECOMMENDATION: Approve the issuance of the Key to the City to Ron Gregory pursuant to Resolution No. 2025 - 072 and the Ceremonial Recognition Policy. BACKGROUND: On December 11, 2025, the City Council adopted Resolution No. 2025 -072 establishing the City’s Ceremonial Recognitions Policy (CLRK-004). The Policy designates the Key to the City as a rare and distinguished honor to be awarded sparingly to individuals whose contributions provide extraordinary and lasting benefit to Palm Desert. Councilmember Harnik has nominated Ron Gregory for consideration. Mayor Trubee and Mayor Pro Tem Pradetto reviewed the nomination and approved advancing it to the full City Council for consideration in accordance with the Policy. ANALYSIS: Ron Gregory served the City of Palm Desert on two appointed bodies for approximately forty- one (41) years of combined service: • Architectural Review Commission: April 8, 1981 – April 9, 2013 • Planning Commission: April 28, 2016 – June 30, 2025 His service on the Architectural Review Commission began during a formative period of Palm Desert’s physical growth. Commission records from 1981 reflect his participation in the review of major retail centers, financial institutions, hotel developments, and multi -family residential communities along Highway 111 and El Paseo. These projects established the scale, massing, and commercial character of corridors that remain central to the City’s identity. Commission minutes document substantive deliberations regarding: • Integration of permanent solar protection into architectural design • Building massing and façade treatment along public streets • Minimum tree sizing and buffering of parking areas • Screening of mechanical equipment visible from major corridors • Monument sign placement, scale, and illumination standards 71 City of Palm Desert Consideration of Issuing the Key to the City Page 2 of 3 These were not minor aesthetic refinements. They were structural decisions affecting building form, street frontage character, landscape maturity, and long-term visual quality. The standards applied during this period influenced development expectations that continue to guide commercial and residential projects throughout the City. Following his Architectural Review Commission service, Mr. Gregory returned to public service as a member of the Planning Commission from May 2016 thr ough June 30, 2025. In that role, he participated in land-use determinations, entitlement approvals, and General Plan implementation decisions affecting the City’s long-term growth framework. Taken together, Mr. Gregory’s service reflects sustained involvement in both the design-level and policy-level decisions that shaped Palm Desert’s built environment. His contributions span early corridor formation through contemporary land-use planning and represent direct participation in establishing the physical and regulatory framework that defines the community today. The Key to the City is intended to recognize contributions that produce enduring civic impact. In this case, the record reflects more than a long tenure. It reflects decades of participation in decisions that materially influenced the form, scale, and visual identity of Palm Desert. Policy Consistency The nomination is presented under the Community Contribution Key category established in Section III.D of the Ceremonial Recognitions Policy. Mr. Gregory’s service satisfies the Policy’s criteria in that it reflects: • Exceptional and sustained public service • A multi-decade commitment to civic development • Contributions with lasting impact on the character and integrity of the City The nomination has been advanced in accordance with the Policy’s review procedures and requires final approval by the City Council. Next Steps If approved, staff will coordinate the scheduling of the proclamation and presentation of the Key to the City at a future City Council meeting. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: The cost of the ceremonial Key and associated presentation materials is minimal and can be accommodated within the City Clerk’s operating budget. ATTACHMENTS: 1. Resolution No. 2025-072 72 City of Palm Desert Consideration of Issuing the Key to the City 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. 187 02.2). ☐ 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 f inal 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. 73 74 RESOLUTION NO. 2025-072 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESCINDING RESOLUTION NO. 2024-011 AND ADOPTING A POLICY FOR CEREMONIAL RECOGNITIONS AND PROCLAMATIONS WHEREAS, the City Council of the City of Palm Desert periodically issues ceremonial recognitions to honor individuals, groups, businesses, organizations, and community partners for noteworthy achievements, service, or contributions to the community; and WHEREAS, the City Council desires to ensure that ceremonial recognitions are administered in a consistent, fair, and appropriate manner and reflect the values and goals of the City; and WHEREAS, the City Council finds it necessary to establish clear standards and processes for Mayoral Certificates, Proclamations, Keys to the City, and service recognitions for members of City Boards, Commissions, Committees, and Task Forces and representatives serving on outside agencies; and WHEREAS, the City Council further finds that a consolidated administrative policy will improve internal consistency, enhance transparency, and support efficient administration of ceremonial recognitions; and WHEREAS, the City Council wishes to rescind Resolution No. 2024-011 and replace it with an updated and comprehensive policy; and WHEREAS, the City Council has reviewed the proposed Ceremonial Recognitions and Proclamations Policy attached hereto as Exhibit “A.” NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert as follows: SECTION 1. The City Council hereby adopts the Ceremonial Recognitions and Proclamations Policy, attached hereto as Exhibit “A” and incorporated herein by this reference. SECTION 2. Resolution No. 2024-011 is hereby rescinded in its entirety. SECTION 3. The City Clerk shall certify the adoption of this Resolution. Docusign Envelope ID: 64A651A7-1391-4916-B2E5-C1582B4B1B5C 75 Resolution No. 2025-072 Page 2 ADOPTED ON DECEMBER 11, 2025. EVAN TRUBEE MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-072 is a full, true, and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Desert on December 11, 2025, by the following vote: AYES: HARNIK, NESTANDE, PRADETTO, QUINTANILLA, AND TRUBEE NOES: NONE ABSENT: NONE ABSTAIN: NONE RECUSED: NONE 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 Docusign Envelope ID: 64A651A7-1391-4916-B2E5-C1582B4B1B5C 12/22/2025 76 Resolution No. 2025-072 Page 3 CITY OF PALM DESERT ADMINISTRATIVE PROCEDURES Subject CEREMONIAL RECOGNITIONS POLICY Policy No. CLRK-004 Date Issued: December 11, 2025 Amended: N/A Approved by Resolution No. 2025-072 Authored by City Clerk Department I. PURPOSE The purpose of this policy is to establish a comprehensive framework for ceremonial recognitions issued by or on behalf of the City of Palm Desert. This policy outlines the standards and procedures for Mayoral Certificates, Proclamations, Keys to the City, and Appointed Body service recognitions, ensuring the consistent, fair, and appropriate administration of these honors. II. SCOPE This Policy applies to all ceremonial recognitions requested of or issued by the City of Palm Desert, including Mayoral Certificates, Proclamations, Keys to the City, and Service recognitions for Appointed Bodies and outside agency representatives. III. GENERAL POLICIES A. GENERAL AUTHORITY No commission or committee, individual Councilmember, or other City official shall issue a ceremonial recognition on behalf of the City of Palm Desert except as authorized under this Policy. B. MAYORAL CERTIFICATES The Mayor may issue a Mayoral Certificate to recognize individuals, groups, businesses, or organizations for achievements, milestones, contributions to the community, or other positive actions that merit acknowledgment. Mayoral Certificates may be approved and issued at the discretion of the Mayor and do not require concurrence from the Mayor Pro Tem or the City Council. Mayoral Certificates may be presented by the Mayor at a City event, community event, meeting, or through personal delivery, mail, or other appropriate means. The Mayor may designate another Councilmember to present a Mayoral Certificate on their behalf. Docusign Envelope ID: 64A651A7-1391-4916-B2E5-C1582B4B1B5C 77 Resolution No. 2025-072 Page 4 C. PROCLAMATIONS Review and Approval. City staff shall review all requests for proclamations and forward them to the Mayor and Mayor Pro Tem with a finding as to whether the request complies with this Policy. If a request does not clearly fall within or outside the categories described in this Policy, staff shall forward the request for direction without making a compliance determination. If both the Mayor and Mayor Pro Tem approve the request, the proclamation may be issued. If only one approves and wishes to proceed, the request shall be placed on a regular City Council agenda for consideration by the full City Council. If neither approves, the request shall not move forward. Eligibility Criteria. The Mayor and Mayor Pro Tem may consider requests for proclamations on the following subjects: A. Community and Public Interest: 1. Significant matters of public interest that raise awareness about issues impacting Palm Desert residents or businesses. 2. Observances, celebrations, or recognition periods at the community, regional, state, or national level. 3. In memoriam recognitions honoring the life of long-time or prominent Palm Desert residents. B. Organizations, Businesses, and Services: 1. Local businesses, service providers, or philanthropic organizations located in or operating within the City that provide significant benefit to the community. 2. Local sports teams based in the City, upon achieving noteworthy accomplishments or milestones. C. Individuals and Public Officials: 1. Individuals recognized for extraordinary achievement or outstanding community service. 2. City officials and employees recognized for achievements or significant service milestones. 3. Partner public officials from other public entities who served alongside the Palm Desert City Council on regional boards, committees, or commissions upon completion of their term or chairpersonship. Signatures. Proclamations are intended to be signed by the full City Council. If any Councilmember declines to sign a proclamation, the Mayor may determine whether to proceed with the Mayor’s signature alone or with the remaining Councilmembers. Presentation. Proclamations should generally be presented outside of a City Council meeting, such as at a designated event, by mail, or by personal delivery. When a proclamation is to be presented at a City Council meeting, the Mayor shall determine the appropriate meeting for presentation. The City will strive to avoid scheduling more than three proclamation presentations at any single meeting. Docusign Envelope ID: 64A651A7-1391-4916-B2E5-C1582B4B1B5C 78 Resolution No. 2025-072 Page 5 D. KEYS TO THE CITY The Key to the City is a rare and distinguished ceremonial honor awarded to individuals or organizations whose contributions or achievements bring extraordinary benefit, distinction, or visibility to the City of Palm Desert. Keys to the City may be awarded under one of the following categories: 1. Community Contribution Key. Awarded to individuals or organizations whose exceptional and long-term service has strengthened the civic life, integrity, and development of the City of Palm Desert. Contributions must reflect a sustained and meaningful commitment that enhances the qual ity and character of life in Palm Desert, through community service, philanthropy, leadership, business, education, public service, or other fields that enrich civic life. Visible and behind-the-scenes contributions are equally valued. 2. Community Impact Key. Awarded to individuals or organizations whose achievements, public presence, or creative work foster a positive and meaningful connection with the Palm Desert community. Recipients should have attained significant public recognition that brings favorable attention to Palm Desert or contributes to its cultural, social, or economic vitality. The honoree’s appearance, performance, collaboration, or association with the City should generate community excitement, engagement, or cultural significance, such as participation in a City-sponsored or community event that promotes civic pride. Review and Approval. All nominations for Keys to the City shall be reviewed jointly by the Mayor and Mayor Pro Tem. If either wishes to advance the nomination, it shall be placed on a regular City Council agenda for consideration and final approval by the full City Council. If neither wishes to advance the nomination, it shall not move forward. Frequency. Because it is a rare and distinguished honor, Keys to the City shall be awarded sparingly and only in circumstances that reflect extraordinary or distinguished contributions as described in this Section. Presentation. Keys to the City shall be presented at a City Council meeting or at another appropriate ceremonial event as determined by the Mayor. Docusign Envelope ID: 64A651A7-1391-4916-B2E5-C1582B4B1B5C 79 Resolution No. 2025-072 Page 6 E. SERVICE RECOGNITIONS FOR APPOINTED BODY MEMBERS Service recognitions for members of City Boards, Commissions, Committees, and Task Forces (“Appointed Bodies”) and for Palm Desert representatives serving on outside agencies, such as the Coachella Valley Mosquito and Vector Control District, the Palm Springs International Airport Commission, and the Joslyn Center Board, shall be issued as follows: 1. Incomplete or Partial Term. Members who do not complete their term, or who serve a partial term, shall receive a Certificate of Recognition signed by the Mayor. The certificate shall be presented at the Appointed Body’s meeting by the assigned City Council Liaison. If the Appointed Body does not have an assigned City Council Liaison, the Mayor will be requested to present the certificate. 2. Completion of One Term or Service Totaling Four (4) or More Years. Members who complete one full term, or who have service totaling four years or more, shall receive a small “Thank You” clock or a similar commemorative item. The item shall be presented at the Appointed Body’s meeting by the assigned City Council Liaison. If the Appointed Body does not have an assigned City Council Liaison, the Mayor will be requested to present the item. 3. Completion of Two Terms or Service Totaling Eight (8) or More Years. Members who complete two full terms, or who have service totaling eight years or more, shall receive a large “Thank You” clock or a similar commemorative item. The item shall be presented at the Appointed Body’s meeting by the assigned City Council Liaison. If the Appointed Body does not have an assigned City Council Liaison, the Mayor will be requested to present the item. 4. Completion of Three or More Terms or Service Totaling Twelve (12) or More Years. Members who complete three or more full terms, or whose service totals twelve years or more, shall receive a large “Thank You” clock or a similar commemorative item, which shall be presented by the Mayor at a City Council meeting. Declining a Presentation. If an outgoing member declines a public presentation, the certificate or commemorative item may be mailed or made available for pickup. IV. COUNCIL AUTHORITY TO ISSUE RECOGNITIONS Nothing in this Policy restricts the City Council from issuing a ceremonial recognition by majority vote at a duly noticed meeting. V. IMPERMISSIBLE SUBJECTS Ceremonial recognitions issued under this policy shall not be granted: 1. For candidates for elected public office , or in connection with campaign activity, fundraising events, or endorsements. 2. For religious or political events, activities, or positions. 3. For activities or events that are contrary to City policy or that conflict with adopted City goals or values. Docusign Envelope ID: 64A651A7-1391-4916-B2E5-C1582B4B1B5C 80 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 12, 2026 PREPARED BY: Daniel Hurtado, Public Safety Coordinator SUBJECT: PUBLIC SAFETY COMMITTEE 2026 WORK PLAN FRAMEW ORK AND SUBCOMMITTEE STRUCTURE RECOMMENDATION: 1. Receive and file the Public Safety Committee’s 2026 work plan framework. 2. Acknowledge the Committee’s action creating three subcommittees to guide 2026 priorities: Traffic, Budget, and Innovative Technology. BACKGROUND/ANALYSIS: The Public Safety Committee (PSC) serves as an advisory body to support the City’s public safety priorities by regularly discussing law enforcement and community safety topics, coordinating with partner agencies, and identifying items for City Council consideration. The PSC uses an annual work plan to organize committee efforts, promote continuity, and maintain focus on issues that directly impact service levels and community quality of life. On February 10, 2026, the PSC convened to review 2025 accomplishments, discuss areas for improvement, and establish the framework for the 2026 work plan. The meeting was supported by a City staff report presented to the Committee that summarized outcomes achieved during 2025 and provided a foundation for discussion on how the City can sustain strong public safety performance as Palm Desert continues to grow and community needs evolve. At the February 10, 2026, special meeting, the PSC reviewed the prior year’s progress and discussed opportunities to strengthen the committee’s effectiveness in 2026. The Committee emphasized the importance of maintaining Palm Desert’s excellent level of public safety service and protecting residents’ quality of life, particularly as population growth and related serv ice demands continue to influence City operations. Committee members also discussed the need for additional, structured input on public safety resources to ensure the City remains proactive and aligned with community expectations. Based on the success experienced throughout 2025 and the desire to provide a clear and accountable structure for 2026, the PSC voted to adopt a three -subcommittee framework to guide the 2026 work plan. The PSC’s intent is to use these subcommittees to support deeper topic development, improve progress tracking, and ensure work plan items remain actionable throughout the year. The three subcommittees established by PSC action are Traffic, Budget, and Innovative Technology. 81 City of Palm Desert Public Safety Committee 2026 Work Plan_ Page 2 of 2 Under this framework, the Traffic subcommittee will serve as the committee’s primary venue for focused discussion on traffic safety priorities and traffic -related community concerns, including evaluation of patterns and issues that affect resident safety and quality of life. The Budget subcommittee will provide a structured setting for the PSC to review and discuss public safety resource needs and considerations tied to service delivery, including how the City can sustain performance and plan responsibly as demands evolve. The Innovative Technology subcommittee will focus on identifying and evaluating public safety-related technology concepts and tools, emphasizing practical benefit, implementation considerations, and alignment with City priorities. The PSC’s adoption of these three subcommittees reflects a delibe rate effort to build on 2025 momentum while providing a consistent structure for 2026 work. The PSC will continue to use this framework to organize agenda development and produce meaningful updates, with items elevated to the City Council when policy direc tion, budget action, or broader City consideration is warranted. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no fiscal impact associated with receiving this report. ATTACHMENTS: 1. Public Safety Committee City Staff Report – February 10, 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 determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 82 Page 1 of 4 PUBLIC SAFETY COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 10, 2026 PREPARED BY: Daniel Hurtado, Public Safety Coordinator SUBJECT: DISCUSS AND DEVELOP THE PUBLIC SAFETY COMMITTEE (PSC) 2026–2027 WORK PLAN, AND REAFFIRM THE USE OF THREE STANDING SUBCOMMITTEES: (1) COMMUNITY POLICING, (2) PUBLIC SAFETY BUDGET AND EMERGENCY PREPAREDNESS, AND (3) INNOVATIVE TECHNOLOGY. RECOMMENDATION: Discuss and develop the Public Safety Committee 2026–2027 Work Plan, and reaffirm the use of three standing subcommittees: (1) Community Policing, (2) Public Safety Budget and Emergency Preparedness, and (3) Innovative Technology. BACKGROUND/ANALYSIS: The City of Palm Desert Public Safety Committee (PSC) meets bimonthly to review law enforcement operations and public safety matters and provides recommendations to the City Council as needed. In 2025–2026, the PSC focused on three priority areas and established subcommittees to ensure consistent progress and shared workload. During the year, the City, in partnership with the Riverside County Sheriff’s Department, delivered numerous community policing and crime prevention efforts; advanced emergency preparedness outreach; and began implementing planning for a new business fire inspection program through an in-house Fire Marshal service model. At the February 11, 2025, PSC meeting, staff presented a proposed work plan outlining six potential areas of focus. Committee members reviewed the proposed topics and provided feedback. At the March 11, 2025, PSC meeting, the committee selected three priority focus areas for the 2025–2026 work plan and established a subcommittee for each priority to promote deeper review, equitable distribution of responsibilities, and ongoing progress tracking. 2025–2026 Work Plan Priorities (Adopted Framework) Strengthen collaboration with the Riverside County Sheriff’s Department to enhance community policing efforts and engagement. 83 Public Safety Committee City of Palm Desert (Public Safety Committee 2026-2027 Work Plan) Page 2 of 4 Public Safety Budget, Emergency Preparedness, and Fire Inspections for Businesses and Buildings Monitor and review the public safety budget to ensure alignment with community safety priorities. Assess the businesses and buildings. Innovative Technology operational efficiency. 2025–2026 Progress and Accomplishments: 1) Community Policing In partnership with the Riverside County Sheriff’s Department, PSC community policing efforts included City-sponsored public safety engagement, education, and outreach, including: • Public Safety Resources for Palm Desert Businesses meeting • Senior Bike Safety Awareness event • Senior Scam Awareness seminar hosted by Assemblymember Greg Wallis • E-Bike Safety Course (Palm Desert Civic Center) • National Night Out • “Good Neighbor” classes (presented by the District Attorney’s Office and hosted at the Palm Desert Sheriff’s Station community room) • Coffee with a Cop • Coffee with the Mayor • Shop with a Cop holiday outreach • Child Passenger Safety / Car Seat Check event hosted at the Palm Desert Station • “Know Your Limit” DUI prevention campaigns (education on BAC and safe alternatives such as rideshare) funded by the California Office of Traffic Safety • Citizens on Patrol Conference presentations • Active shooter presentations delivered to local government agencies, schools, businesses, and places of worship 84 Public Safety Committee City of Palm Desert (Public Safety Committee 2026-2027 Work Plan) Page 3 of 4 • CPTED inspections by certified personnel (home security, lighting, and landscaping assessments to reduce crime opportunities) • Youth Explorer Program • Youth Reading activities at the Palm Desert Library • Coffee with the school superintendent and various school principals • Crime prevention meetings with HOAs and Neighborhood Watch programs • Hiking Resources in South Palm Desert pop-up event 2) Public Safety Budget, Emergency Preparedness, and Fire Inspections Work progressed across multiple elements of this priority: • Fire inspections for businesses and buildings: The City transitioned toward an in-house Fire Marshal service model to support the creation and implementation of a City fire inspection program. Program development is underway. • Emergency preparedness and outreach: Emergency services staff continued outreach with local HOAs to support development of emergency plans and standardized community outreach. Topics included: - Power outage preparedness resources - Nixle emergency alerting awareness - Disaster preparedness month (September) education and events 3) Innovative Technology The Innovative Technology subcommittee met and reviewed potential parking technology solutions. After an in-depth review, the subcommittee did not pursue this topic further during the work plan year. Proposed 2026–2027 Work Plan Based on 2025–2026 outcomes and in the interest of continuity and measurable progress, staff recommends continuing the same three priority areas and maintaining the subcommittee model. Proposed Priority Areas and 2026–2027 Objectives: 85 Public Safety Committee City of Palm Desert (Public Safety Committee 2026-2027 Work Plan) Page 4 of 4 Community Policing education (fraud/scams, DUI prevention, bike/e- crime prevention partnerships. Public Safety Budget and Emergency Fire Inspections) Conduct review of public safety budget items tied to community priorities; continue HOA emergency planning outreach and citywide preparedness education; advance implementation milestones for the City's through the in-house Fire Marshal service model. Innovative Technology evaluation criteria. Subcommittee Structure To ensure comprehensive oversight and equitable distribution of responsibilities, staff recommend continuing three subcommittees aligned with the priorities: 1. Community Policing Subcommittee 2. Public Safety Budget and Emergency Preparedness Subcommittee 3. Innovative Technology Subcommittee Each subcommittee should provide periodic updates to the full PSC, including status, findings, and recommendations requiring City Council consideration. Subcommittee assignments are listed below for Committee discussion. Committee members will confirm whether they wish to keep the current assignments or request reassignment to a different subcommittee: • Community Policing: Committee Members Nelson, Wahlstrom and Butts • Budget, Inspections, and Emergency Preparedness: Committee Members Kramer and Taylor • Innovation & Technology: Committee Members Kramer, Wahlstrom and Nelson FINANCIAL IMPACT: There is no fiscal impact. 86 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 12, 2026 PREPARED BY: Monique M. Lomeli, Senior Deputy Clerk SUBJECT: ACCEPTANCE OF A RESIGNATION FROM HOUSING COMMISSION RECOMMENDATION: With regret, accept the resignation of Andrew Firestine from the Housing Commission effective February 9, 2026. BACKGROUND/ANALYSIS: Andrew Firestine has served on the Housing Commission since July 1, 2024, with his current term scheduled to end on June 30, 2027. On February 9, 2026, Mr. Firestine notified the City of his resignation, effective immediately. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact associated with the acceptance of this resignation. 87 City of Palm Desert (Housing Commission Resignation - Firestine) 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 determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 88 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 12, 2026 PREPARED BY: Michelle Nance, Assistant City Clerk SUBJECT: ADOPTION OF ORDINANCE NO. 1443 AMENDING CHAPTERS 8.34 AND 8.36 OF THE PALM DESERT MUNICIPAL CODE REGARDING TOBACCO RETAILER LICENSING, SMOKING REGULATIONS, FLAVORED TOBACCO LAW COMPLIANCE, AND KRATOM SALES AND POSSESSION RECOMMENDATION: Adopt 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 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.” BACKGROUND/ANALYSIS: On February 26, 2026, the City Council unanimously introduced Ordinance No. 144 3 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. 1443 89 City of Palm Desert Adoption of Ordinance 1443_____________________________________________________ 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 determination. Each Councilmember is responsible for identifying and disclosing any disqualifying interests in accordance with the Political Reform Act and FPPC regulations. 90 ORDINANCE NO. 1443 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 flavored tobacco products and imposes a $50 per package penalty, with license 91 Ordinance 1443 Page 2 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 92 Ordinance 1443 Page 3 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 age ncies 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 Exhibit A, incorporated herein by reference. 93 Ordinance 1443 Page 4 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 Exhibit 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 94 Ordinance 1443 Page 5 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. 1443 is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on February 26, 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 95 Ordinance 1443 Page 6 Exhibit “A” 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 additives 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 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 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. “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 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. 96 Ordinance 1443 Page 7 “Kratom” means the plant Mitragyna speciosa, whether growing or not, and any compound, manufacture, salt, derivative, mixture, or preparation of that plant, including 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. “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. 97 Ordinance 1443 Page 8 “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. “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. 98 Ordinance 1443 Page 9 § 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 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 characterizing 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), including 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 accordance 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. 99 Ordinance 1443 Page 10 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 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 any 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. 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 100 Ordinance 1443 Page 11 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 retailer’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 has 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; 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; 101 Ordinance 1443 Page 12 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 by a proprietor which or who has had a license revoked pursuant to Section 8.34.090 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. 102 Ordinance 1443 Page 13 § 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 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. 103 Ordinance 1443 Page 14 § 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. 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; 104 Ordinance 1443 Page 15 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. 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 jurisdiction. 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. 105 Ordinance 1443 Page 16 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 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 owner, 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 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. 106 Ordinance 1443 Page 17 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 attorney, including, for example, administrative or judicial nuisance abatement proceedings, civil or criminal code compliance 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. 107 Ordinance 1443 Page 18 Exhibit “B” 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 areas 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 confined 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 City’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 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. 108 Ordinance 1443 Page 19 “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: A. 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 B. 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 association 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 rooms, 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. “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: 6. 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, restaurants, 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; 109 Ordinance 1443 Page 20 C. Areas measured a distance of forty (40) feet from the entrances and exits to City-owned public places; D. Areas measured a distance of twenty (20) feet from the primary entrances to publicly or privately-owned commercial, industrial, institutional, or office professional buildings; E. 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; F. Unenclosed public events, including, but not limited to, sports events, entertainment, speaking performances, ceremonies, and fairs; G. 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. “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 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. “Unenclosed area” means any area that is not an enclosed area. 110 Ordinance 1443 Page 21 § 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: a. Public places; b. Places of employment; c. 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. d. 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. § 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: a. 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. b. 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. c. 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 111 Ordinance 1443 Page 22 providing these areas. There shall be no designated smoking areas in areas that have a common or shared air space with other areas in which 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 place, 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. § 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 entering 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, counters, 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. 112 Ordinance 1443 Page 23 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 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 because 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 compliance 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 division 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 division 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. 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; 113 Ordinance 1443 Page 24 (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. 114 115 116 117 118 From:Jaime Rojas To:CityClerk Cc:cityhall@palmdeset.gov Subject:Proposed Changes to Tobacco Retail Licensing Ordinance Date:Friday, March 13, 2026 8:35:14 AM Attachments:NATO Letter to Palm Desert CA (March 2026).docx.pdf Retailer Coalition Opposition Letter_Palm Desert.pdf Your attachments have been security checked by Mimecast Attachment Protection. Files where no threat or malware was detected are attached. Good Afternoon City Clerk, Please find attached a letter of opposition to the upcoming city council agenda regarding proposed changes to the tobacco retail licensing ordinance. This letter is submitted on behalf of the National Association of Tobacco Outlets and its various Palm Desert retailer members. Thank you for your consideration. Jaime Rojas NATO Legislative Consultant INLAND EMPIRE - HQ 6782 Plum Way Rancho Cucamonga, CA 91739 (213) 400-8664 Website | Services | Our Team | Water Issues NOTICE: This email is covered by the Electronic Communication Privacy Act, 18 U.S.C 2510-2521 and may be legally privileged. The information contained in this email is intended only for the use of the individual or entity named above. If the reader of this message is not the intended recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error please immediately notify us by sending an email to info@rojaspublicaffairs.com, and destroy the original message. 119 March 12, 2026 Via Email: CityClerk@palmdesert.gov Mayor Evan Trubee Members of the Palm Desert City Council RE: Proposed Changes to Tobacco Retail Licensing Ordinance Dear Mayor Trubee and Members of the City Council: As the Executive Director of the National Association of Tobacco Outlets (NATO), a national retail trade association that represents more than 66,000 retail stores throughout the country including numerous retailers in Palm Desert, I am writing to submit our comments and concerns regarding changes to your existing tobacco retail license ordinance that would, among other things: ban the sale in the City of all electronic smoking devices, which under the state’s flavored tobacco ban means only tobacco flavored electronic smoking devices; prohibit those under 21 from working in tobacco retailers; and banning the use of coupons or other common discounting practices. (To be clear, NATO takes no position with respect to the kratom changes.) The Ban Would Affect Products Found by the FDA to be in the Public Health The U.S. Food and Drug Administration has a process whereby manufacturers submit products for scientific scrutiny to determine whether the products are “appropriate for the protection of public health.” To do so, the agency uses a review process that relies on science and evidence-based data to determine whether a tobacco product may stay on the market. Thus far, the FDA has granted marketing orders for 87 products, including 39 electronic smoking devices and associated products, seventeen of which are tobacco flavored. The prohibition in the proposed ordinance would impact these seventeen tobacco-flavored products and those found in the future by the FDA to meet this rigorous test as it continues to review applications for thousands of other electronic smoking devices including tobacco flavored products. By granting these applications, the FDA has determined that some tobacco flavored electronic smoking devices protect public health, and many adult smokers have chosen these products as a harm reduction strategy. The FDA also imposes certain marketing restrictions on the products relating to preventing underage use of the products. The FDA recognizes, that while no tobacco product is safe, “the health risks for different tobacco products exist on a spectrum, which is sometimes referred to as a ‘continuum of risk.’” With respect to electronic cigarettes, the FDA states that they “can generally be a lower-risk alternative for adults who smoke cigarettes.” (https://www.fda.gov/tobacco-products/health-effects-tobacco-use/relative-risks-tobacco-products, accessed March 6, 2026. The City’s ban on flavored electronic smoking devices that have received or 1850 M Street, Suite 1000, Washington, DC 20036 120 will receive this designation as the FDA continues its review of applications would be anti-scientific and work against public health. Cross-Border Purchasing of Banned Products Will Hurt City Retailers A ban on the sale in Palm Desert of all electronic smoking devices will cause adults who purchase these products to go outside the City to buy their preferred products. This cross-border purchasing will involve not only buying the banned products in a nearby City or in unincorporated areas, but also gasoline, snacks, and beverages, which will exacerbate the loss of sales by retailers in Palm Desert. Why would the City Council want to harm the City’s responsible, legitimate retailers in the City and cause their adult customers to go outside the City to patronize other retailers or to buy electronic smoking devices from illicit sellers? Illicit Product Market Expansion by Criminals Illicit markets for tobacco products, including electronic smoking devices, already exist across the country, especially in those cities and counties that assess high taxes or have banned the sale of various products. The non-partisan Tax Foundation, in conjunction with the Mackinac Center for Public Policy has found, for example, that in 2023 over 52% of cigarettes consumed in California have been smuggled into the state, the highest such ratio in the country. Indeed, a recent study found that after the statewide flavor ban, about 25% of tobacco product waste in California comes from flavored, banned products, and over 97% of electronic smoking device waste products in the State were of flavored, banned products. Banning the sale by legitimate retailers of tobacco-flavored electronic smoking devices and related products in the City will create even more incentive for criminals to supply these products in the City to anyone of any age who has cash. This increase in illegal sales will necessitate a higher level of law enforcement intervention, putting further pressure on already strained police resources. Increase in Non-Tobacco Product Prices The average convenience store business model relies on tobacco product sales for approximately one-third of all in-store sales. Since a ban on these products would eliminate many products from store shelves, stores may be forced to close or move to nearby jurisdictions where these bans do not exist. Retailers will also be forced to raise prices on other products to replace the lost sales from the ban. Palm Desert retailers will find it difficult to compete with retailers in neighboring localities or with illicit sellers who do not care to whom they sell illicit tobacco products. Employee layoffs and store closures are real possibilities in the event of significant sales declines. Electronic Cigarette Use Has Declined Among Youth Contrary to the implication of the language in the Ordinance recitals that “these amendments are necessary to protect public health, prevent youth access to addictive tobacco . . .products,” the problem of youth use of e-cigarettes has declined significantly. According to the 2023-24 California Healthy Kids Survey performed by the California Department of Education only 2% of 11th graders in Desert Sands Unified School District had used any electronic cigarettes in the preceding 30 days. This is considerably lower than the national average, which has also been in decline in recent years, and suggests that any change to prevent tobacco flavored electronic cigarette sales as “necessary” is contrary to the actual facts. The Centers for Disease Control found that e-cigarette use nationally among high schoolers dropped about 60% from 2019 to 2021. See E-Cigarette Use Among Middle and High School Students — National Youth Tobacco Survey, United States, 2021, US Department of 1850 M Street, Suite 1000, Washington, DC 20036 121 Health and Human Services, Centers for Disease Control and Prevention, Morbidity and Mortality Weekly Report, October 1, 2021, Vol. 70, No. 39. More recently, the CDC found that nationally, the level had dropped an additional 29% from 2022 to 2023. See Tobacco Product Use Among U.S. Middle and High School Students — National Youth Tobacco Survey, 2023, US Department of Health and Human Services, Centers for Disease Control and Prevention, Morbidity and Mortality Weekly Report, November 3, 2023, Vol. 72, No. 44. This national and local trend over several years of significant decreases in electronic cigarette use by youth does not support depriving all 21 and over adults of their ability to choose electronic smoking devices as a harm reduction strategy. Prohibiting Sales Clerks Under 21 Puts Adult Employees Out of Work Proposed § 8.34.020(P) provides: “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.” California law specifically permits persons 18 to 20 to sell alcohol [California Business and Professions Code, §25663(b)]. Many tobacco retailers are also alcohol retailers and staff their businesses accordingly. Banning clerks under the age of 21 means that 18-, 19- and 20-year-old adults, a population that typically needs to work while also attending college or other post-secondary education, will not be allowed to work in stores that sell tobacco products. Many retailers, especially smaller or family-owned establishments, need young adults to staff their stores adequately and may have their own adult age children working in the store part-time while they attend school. The higher legal age of 21 for store clerks will cause responsible, young adult employees to be terminated and place additional burdens on retailers to find replacement employees who are 21 or older. Please remove this provision directed against young adult employees. The Coupon and Promotion Ban Will Not Impact Underage Use: For over a century, consumers have been redeeming coupons or availing themselves of price promotions for all kinds of products, including age-restricted products such as alcohol and tobacco. No one seriously believes that underage persons use coupons to buy tobacco products. A ban on promotionally priced tobacco products has nothing to do with reducing underage tobacco use because state and federal laws already prohibit the sale of tobacco products to underage individuals at any price. For this reason, a coupon and promotion price ban impacts only those adults who are of legal age to purchase and use tobacco products. We trust that you will give serious consideration to all the facts and information contained in this letter to make an informed decision on these changes to your tobacco ordinance. Thank you for your time and willingness to hear from retailers. Sincerely, David Spross NATO Executive Director 1850 M Street, Suite 1000, Washington, DC 20036 122 Dear Mayor and Members of the City Council, As businesses and trade associations who operate in the City of Palm Desert, we respectfully submit this opposition letter regarding Ordinance No. 1443, which would amend Chapters 8.34 (Tobacco Retailer Licensing) and 8.36 (Smoking Regulations) of the Palm Desert Municipal Code. We are committed to responsible retailing practices and preventing youth access to tobacco products. Responsible retailers and wholesalers play an important role in ensuring that tobacco products are sold only to legal-age consumers and in maintaining compliance with existing local, state, and federal regulations. While we appreciate the City’s efforts to address public health concerns, we are concerned that several provisions of the ordinance may place additional burdens on responsible retailers without effectively addressing illicit or unregulated sales. In particular, the provisions that prohibit the sale of electronic smoking devices (vapor products) and impose additional operational restrictions on licensed tobacco retailers should be removed. These provisions may negatively impact compliant local businesses that rely on lawful product sales, and limiting the sale of vapor products may push consumers toward unregulated and illegal sources. Additionally, the State of California recently published its Unflavored Tobacco List (UTL), which details what tobacco and nicotine products can be sold. Placement on this list means a product is not flavored. The UTL is meant to help law enforcement target illicit products that are not listed and are illegal for sale. We believe that with clear guidance from the state, Palm Desert should align its law with the state to avoid local confusion. Therefore, we humbly suggest that the City Council consider the following revisions to your proposal that offers a stronger balance of protecting local public health without harming local businesses: - Provide an exemption to the vapor ban by allowing FDA-authorized and UTL-listed products to be sold. - Provide a grandfather exemption for current retailers in good standing with the city from license transfers restrictions, allowing us to protect business investments. 123 Thank you for your attention to this critical issue. We appreciate your thoughtful consideration of the impact this ordinance will have on our community. Sincerely, California Fuels & Convenience Alliance American Petroleum and Convenient Store Association California Distributors Association 124 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 12, 2026 PREPARED BY: Shelby Goodwin, Special Events Coordinator SUBJECT: ADVANCE PAYMENT OF 2026 INDEPENDENCE DAY CELEBRATION EXPENDITURES FROM FISCAL YEAR 2026-27 ANNUAL BUDGET RECOMMENDATION: 1. Approve advance payment of expenditures in an amount not to exceed $169,838, to be included in the FY 2026-27 Annual Budget, for production of the 2026 Independence Day Celebration. 2. Authorize the City Manager to finalize and execute vendor contracts and related agreements necessary for event production. BACKGROUND/ANALYSIS: For more than 30 years, the City of Palm Desert has hosted a premier Independence Day Celebration at Palm Desert Civic Center Park, attracting more than 10,000 attendees annually. This highly anticipated community event features live entertainment, food vendors, family - friendly activities, and a professionally choreographed fireworks display. On February 28, 2024, the City entered into a three -year agreement with Pyro Spectaculars for annual July 4th fireworks displays in 2024, 2025, and 2026. The total 3-year contract amount is $155,500, with the 2026 fireworks display priced at $52,500. In addition to the fireworks display, the event includes:  Live music performance with professional sound and lighting  Food trucks  Children’s activities  Color Guard presentation  Patriotic music synchronized with the fireworks broadcast on local radio  Shuttle services to and from The Gardens on El Paseo  Public safety support In 2026, the United States will commemorate the 250th anniversary of the signing of the Declaration of Independence. In recognition of this historic milestone, staff is proposing enhancements to elevate the City’s annual celebration and appropriately honor this significant national anniversary. Proposed enhancements include expanded patriotic décor and additional rental equipment to create a more cohesive and welcoming event environment, including fencing, tables, chairs, and umbrellas. Additional anniversary-related elements will include commemorative promotional items and expanded children’s activities to further enhance the overall celebratory experience. 125 City of Palm Desert Prepayment of 2026 Independence Day Celebration Expenditures Page 2 of 3 To produce the 2026 Independence Day Celebration, staff anticipates the following event -related expenditures: A. Base Event Costs B. 250th Anniversary Enhancements ENHANCEMENT EST. COST FOR 2026 Rental Equipment - fencing, tables, chairs, umbrellas $12,000 Commemorative 250th Anniversary promotional items $12,000 Patriotic Lighting for Amphitheatre $4,300 Kid’s Area Activities $7,000 Enhancement Subtotal: $35,300 EXPENSES EST. COST FOR 2026 Pyrotechnics $52,500 Fire Marshal - Inspection and Deposit Fees $6,900 Sound & Lighting $3,700 Live Music $4,500 Shuttles $7,000 Golf Cart Rentals $1,000 Radio Remotes $6,500 Special Event Insurance $4,000 Two-Way Radios $250 Overnight Security $6,000 Tops 'N Barricades $5,000 Display Banners $2,000 Riverside County Sheriff’s Office (RSO) – Public Safety $25,000 Health Department Permit $500 Staff & Volunteer Meals $1,000 Misc. Supplies $250 Water/Gatorade for Staff & Volunteers $350 Base Event Subtotal: $126,450 126 City of Palm Desert Prepayment of 2026 Independence Day Celebration Expenditures Page 3 of 3 C. Total Project Budget CATEGORY AMOUNT Base Event Costs $126,450 Anniversary Enhancements $35,300 Expense Subtotal $161,750 5% Contingency $8,088 Total Budget $169,838 Several vendors require executed agreements and deposits well in advance of the event date. Preapproval of budget for estimated expenditures will allow staff to finalize contracts, secure services, and maintain the established planning timeline for the celebration. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Funding in an amount not to exceed $169,838 will be included in the FY 2026-27 Annual Budget under the City-Produced Events Account (No. 1104416-4306101). For comparison, the FY 2025- 26 budget for the Independence Day Celebration was $130,000. 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. 127 128 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 12, 2026 PREPARED BY: Austin Yaple, Deputy Director of Finance SUBJECT: AWARD OF CONTRACT TO CLIFTON LARSON ALLEN, LLP. (CLA) TO PERFORM PROFESSIONAL AUDITING SERVICES FOR THE REPORTING REQUIRED FOR THE FISCAL YEARS ENDING JUNE 30, 2026, JUNE 30, 2027 AND JUNE 30, 2028 RECOMMENDATION: 1. Award a Professional Services Agreement with CliftonLarsonAllen, LLP. (CLA), to perform professional auditing services for the reporting required in fiscal years ending June 30, 2026, June 30, 2027, and June 30, 2028, in the amount of $105,462 for the first year, and two subsequent years as outlined in the contract. 2. Authorize the Finance Director to negotiate and approve additional auditing or related professional services that may be necessary, in an amount reasonable for such services, and within available and previously approved budget appropriations. 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, amendments, and any other documents necessary to effectu ate this action, in accordance with Section 3.30.170 of the Palm Desert Municipal Code. BACKGROUND/ANALYSIS: Following completion of the Fiscal Year (FY) 2024-25 audit, staff evaluated the City’s audit service needs, considering upcoming organizational and system changes to ensure alignment with long-term financial goals. As part of that review, staff considered the value of introducing a new auditor perspective to provide enhanced audit assurance and determined that transitioning services at this time will best support organizational continuity and long-term planning. Engaging CliftonLarsonAllen, LLP (CLA) for the FY 2025-26 audit will allow the firm to become familiar with current financial systems prior to planned software implementation, thereby supporting an efficient transition. The firm has an established relationship with the City for general accounting services and was previously identified as a top-ranked candidate by the Auditing Services Contract subcommittee (Finance Committee members) during the 2023 Request for Proposals process. To promote auditor independence and align with governance best practices, staff recommends periodically changing audit firms. A new auditor will provide a fresh perspective on the City’s financial reporting and internal controls. Legal Review: This report has been reviewed by the City Attorney’s Office. 129 City of Palm Desert Award of Auditing Services Contract Page 2 of 2 FINANCIAL IMPACT: The City performs an annual audit and funds are budgeted each year for this purpose. The cost is $105,462 for the fiscal year ending June 30, 2026 will be included as part of the FY 2026-27 Annual Budget. Subsequent years’ increases are detailed in Exhibit B of the attached agreement and contingent on future budget approvals. ATTACHMENTS: 1. Professional Services Agreement 2. CLA Cost Proposal 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. Vendor: CliftonLarsonAllen, LLP 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. 130 Contract No. C50500 1 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT 1. Parties and Date. This Agreement is made and entered into on March 12, 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 CLIFTON LARSON ALLEN, a Limited Liability Partnership, with its principal place of business at 220 SOUTH 6TH STREET, SUITE 300, MINNEAPOLIS, MN 55402 ("Consultant"). The City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 1.1 City Council Approval. On March 12, 2026, City Council approved the award of this Agreement to the Consultant above. 2. Recitals. 2.1 Project. The City is a public agency of the State of California and is in need of professional services for the following project: Audit Services (hereinafter referred to as “the Project”). 2.2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant is duly licensed and has the necessary qualifications to provide such services. 3. Terms. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from March 12, 2026, to June 30, 2029 (to allow for completion of the FY 2027-28 Audits), unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement for no more than two additional one-year terms. 131 Contract No. C50500 2 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees, or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Daphnie Munoz, Principal. 3.2.5 City's Representative. The City hereby designates Veronica Chavez, Finance Director, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consul tant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 132 Contract No. C50500 3 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 3.2.6 Consultant's Representative. Consultant hereby designates Daphnie Munoz, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available t o City's staff, consultants, and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non - performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural 133 Contract No. C50500 4 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additio nal compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. 3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amen ded from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer, and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, physical disability, ancestry, sex, age, marital status, gender, gender identity, gender expression, sexual orientation, reproductive health decision making, veteran or military status, or any other consideration made unlawful by federal, state, or local laws. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions 134 Contract No. C50500 5 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (B) Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office fo rm CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. (D) Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers, and representatives. 135 Contract No. C50500 6 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 (E) Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal in jury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: (1) A drop-down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (2) Pay on behalf of wording as opposed to reimbursement; (3) Concurrency of effective dates with primary policies; and (4) Policies shall “follow form” to the underlying primary policies. (5) Insureds under primary policies shall also be insureds under the umbrella or excess policies. (F) Fidelity Coverage. Consultant shall provide evidence of fidelity coverage on a blanket fidelity bond or other acceptable form. Limits shall be no less than $1,000,000 per occurrence. (G) Cyber Liability Insurance. Consultant shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss, which shall include the following coverage: (1) Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination, or use of the confidential information. (2) Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. (3) Liability arising from the failure of technology products (software) required under the contract for Consultant to properly perform the services intended. 136 Contract No. C50500 7 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 (4) Electronic Media Liability arising from personal injury plagiarism or misappropriation of ideas, domain name infringement or improper deep linking or framing, and infringement or violation of intellectual property rights. (5) Liability arising from the f ailure to render professional services. If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the agreement. 3.2.11.2 Other Provisions or Requirements. (A) Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (B) Duration of Coverage. Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants. (C) Primary/Non-Contributing. Coverage provided by Consultant shall be primary and any insurance or self -insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a pro vision that such coverage shall also apply on a primary and non -contributory basis for the benefit of City before the City’s own insurance or self -insurance shall be called upon to protect it as a named insured. (D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be prom ptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement. (E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the 137 Contract No. C50500 8 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. (G) Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consu ltant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (I) Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. (K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 138 Contract No. C50500 9 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 (L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross - liability exclusions. (M) Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self- insured retentions be eliminated, lowered, or replaced by a deductible. Self -insurance will not be considered to comply with these specifications unless approved by City. (P) Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (Q) Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. 3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, 139 Contract No. C50500 10 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 regulations, and ordinances listed in this Section is a violation of federal and state law. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations, and policies of this Section. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “B” attached hereto and incorporated herein by reference. The total compensation shall not exceed One hundred Five Thousand, Four Hundred Sixty- Two and 00/100 Dollars ($105,462.00) for the first year, One Hundred Ten Thousand, Seven Hundred Thirty-Eight and 00/100 Dollars ($110,738.00) for the second year, and One Hundred Sixteen Thousand, Two Hundred Seventy-Seven and 00/100 Dollars ($116,277.00) for the third year, without written approval of the City Council or City Manager, as applicable. 3.3.2 Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.2.1 Retainer. [Reserved] 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City or included in Exhibit "B" of this Agreement. 3.3.4 Travel Expenses. In accordance with Government Code section 53232.2(c), the Internal Revenue Service rates for reimbursement of travel, meals, lodging, and other actual and necessary expenses as established in Publication 463, or any successor publication, shall be used to determine reimbursement rates for Consultant. Travel in business class, first class or any category on any flight above the coach/economy level will not be reimbursed. 3.3.5 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the exe cution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City. 140 Contract No. C50500 11 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 3.4 Labor Code Requirements. 3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 181 3, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, agents, volunteers and representatives, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Co de sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of Services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify, and hold the City, its officials, officers, employees, agents, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant. 3.4.3 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code and agrees to comply with such provisions before commencing the performance of the Services. 3.5 Accounting Records. 3.5.1 Maintenance and Inspection. Consultant shall maintain complete 141 Contract No. C50500 12 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.6 General Provisions. 3.6.1 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Cons ultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ writte n notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: 142 Contract No. C50500 13 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 Consultant: CliftonLarsonAllen, LLP 220 South 6th Street, Suite 300 Minneapolis, MN 55402 ATTN: Daphnie Munoz, CPA, Principal City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 ATTN: Veronica Chavez, Finance Department Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.6.3 Ownership of Materials and Confidentiality. 3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all co pyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and 143 Contract No. C50500 14 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. 3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents, and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to th e City upon completion, suspension, abandonment, or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liab le, or anyone approved by the Consultant. 3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its 144 Contract No. C50500 15 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend, and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 3.6.5 [Reserved] 3.6.6 Indemnification. 3.6.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, includi ng wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consul tant’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers, or representatives. 3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, a nd, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior 145 Contract No. C50500 16 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 negotiations, understandings, or agreements. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers, and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.6.16 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties. 3.6.17 Invalidity; Severability. If any portion of this Agreement is declared 146 Contract No. C50500 17 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON FOLLOWING PAGE] 147 Contract No. C50500 18 Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND CLIFTON LARSON ALLEN, LLP. IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. Office Use: Quality Check Insurance City Clerk Contracts Initial Review Final Review CITY OF PALM DESERT CLIFTON LARSON ALLEN, A LIMITED LIABILITY PARTNERSHIP 148 Contract No. C50500 Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 EXHIBIT “A” SCOPE OF SERVICES Provide auditing services to the city of Palm Desert for its financial report for the fiscal years ending June 30, 2026, through June 30, 2028. 149 Contract No. C50500 Exhibit “B” Revised 01-2024 BBK 72500.00001\32374915.1 9.15.25 EXHIBIT "B" SCHEDULE OF SERVICES & COMPENSATION All-inclusive Maximum Price by Report Optional Report FY2025-26 FY2026-27 FY2027-28 Optional FY2028-29 Optional FY2029-30 City of Palm Desert Audit (A) $ 77,260 $ 81,120 $ 85,180 $ 89,440 $ 93,910 Palm Desert Recreational Facilities Corporation Audit 12,100 12,710 13,350 14,020 14,720 Single Audit (B) 7,120 7,480 7,850 8,240 8,650 GANN Limit Verifications 460 480 500 530 560 PDRFC Tax Returns 3,500 3,675 3,860 4,050 4,250 5% Technology Fee 5,022 5,273 5,537 5,814 6,105 Total Proposed for Fiscal Year (Not-to- Exceed) $ 105,462 $ 110,738 $ 116,277 $ 122,094 $ 128,195 (A) Includes the following Segment City Audit $ 56,450 $ 59,270 $ 62,230 $ 65,340 $ 68,610 Successor Agency 8,280 8,690 9,120 9,580 10,060 Housing Authority (incl. review of 100 tenant files) 12,540 13,170 13,830 14,520 15,250 $ 77,270 $ 81,130 $ 85,180 $ 89,440 $ 93,920 (B) Includes testing for one major program. Fee for each additional program $ 4,410 $ 4,630 $ 4,860 $ 5,100 $ 5,360 150 151 152 153 154 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: March 12, 2026 PREPARED BY: Ivan Tenorio, Homeless and Supportive Services Manager Lorena Ritchey, Management Analyst SUBJECT: APPROVE OUTSIDE AGENCY COMMITTEE FUNDING RECOMMENDATIONS FOR THE PROGRAM YEAR 2026-27 COMMUNITY DEVELOPMENT BLOCK GRANT RECOMMENDATION: 1. Conduct a public hearing and accept public comment related to the Community Development Block Grant (CDBG) Program Year (PY) 2026-27. 2. Approve Outside Agency Funding Committee (Committee) recommendations for PY 2026-27 CDBG award of subrecipients, programs, and/or projects, and funding amounts as proposed. 3. Approve the use of the PY 2026-27 CDBG funding allocation awarded to the City of Palm Desert (City) by the U.S. Department of Housing and Urban Development (HUD) for the proposed funding of subrecipients' programs and/or projects recommended by the Committee. 4. Authorize staff to submit the recommended allocations to the County of Riverside Housing and Workforce Solutions (HWS). 5. Authorize the City Manager to execute any documents necessary to implement the actions taken herewith. BACKGROUND/ANALYSIS: The City of Palm Desert receives an annual entitlement in CDBG Program funds from the Department of Housing and Urban Development (HUD). The City has historically allocated its CDBG funds to nonprofit organizations that provide eligible public services to low - and moderate-income residents, as well as capital improvement projects benefiting those residents. The City anticipates receiving $365,400 in CDBG funds for FY 2026–27, which will be included in the Proposed Annual Budget. Federal regulations limit public services to 15% ($54,810) and program administration to 20% ($73,080) of the award; there are no funding caps for public facilities and improvements. The final award amount will be included in the FY 2026-27 Proposed Annual Budget. To achieve significant cost savings in program management, the City Council approved the Joint Recipient Cooperative Agreement with HWS on June 8, 2023. This agreement designates the City as a Metro City participant and transfers responsibility for the general administration of grant funds and the submission of all required reports to HUD to be done by HWS. 155 City of Palm Desert Approve Program Year 2026-27 Recommendations Page 2 of 4 HWS requires PY 2026-27 CDBG applications to be submitted to the Riverside County Board of Supervisors for approval in January 2026. To meet the County's , deadline, the City opened its local application period on October 15, 2025, and applications were accepted through November 17, 2025. HWS has acknowledged and agreed with the City Council’s March 2026 approval timeline. Notice of Funding Availability was posted on the City’s CDBG webpage, published in The Desert Sun, and distributed directly to prior recipients and interested organizations via email and phone outreach. The City received six applications and were forwarded to HWS for initial eligibility review. Three applications were determined to not meet the HUD national objective requirements. Applications that did not meet the national objective criteria are listed individually in the table with a $0 funding recommendation. The remaining three applications were evaluated by the Committee, and funding recommendations were developed based on their eligibility. Project Year 2026-27 - Outside Agency Committee Recommendations The Committee is comprised of the Mayor, Mayor Pro Tem, City Manager, Finance Director, and Deputy Director of Economic Development. The Committee reviewed the PY 2026–27 CDBG applications and determined funding priorities. Each application was evaluated for consistency with HUD national objectives and the intended purpose of CDBG funds. When an application did not meet eligibility requirements, the reason was documented in the CDBG Funding Recommendations Budget Summary. Two of the three applications recommended for funding, Joslyn Center and Desert ARC, are located within the City of Palm Desert and have received CDBG funding in prior years. Operation SafeHouse, Inc. (SafeHouse), is located in Thousand Palms and operates the Harrison House Transitional Living Program which provides long-term transitional housing with on-site supportive services for 10 homeless youth ages 18–24. SafeHouse has also received CDBG funding in prior years. The Harrison House program provides an 18-month transitional living environment with shelter, case management, counseling, education, and job-training assistance, with a goal of placing participants into living-wage employment and permanent housing. The program is not duplicative of CityNet or CVAG, which focuses on outreach and short-term homelessness response. The Committee’s funding recommendations are presented in the following table and will be incorporated into the Annual Action Plan submitted to HWS, if approved. Program Year 2026-27 Community Development Block Grant Funding Recommendations $365,400 Applicant Activity Description PY 26-27 Request PY 26-27 Recommendation Public Services (15%) 1 Jewish Family of the Desert Emerg Financial Assistance $10,000 $0 156 City of Palm Desert Approve Program Year 2026-27 Recommendations Page 3 of 4 2 Jewish Family of San Diego Street Outreach $15,000 $0 3 Operation Safe House Inc Youth Homeless Transitional Living $18,000 $18,000 4 Food in Need of Distribution FIND Mobile Market - PDHS $20,000 $0 TOTAL $63,000 $18,000 Public Facilities and Improvements (No Cap) 5 The Joslyn Center Replace (7) A/C Units $100,000 $100,000 6 Desert ARC Replace (7) HVAC Units $471,212 $174,320 TOTAL $571,212 $274,320 Program Administration (20% Cap) 7 County Administrator County's shared cost 13% $47,502 $47,502 8 City Administrator City's shared cost 7% $25,578 $25,578 TOTAL $73,080 $73,080 GRAND TOTAL $707,292 $365,400 Public Review: As a condition for receiving Community Development Block Grant funds, grant recipients must be consistent with the County of Riverside Housing & Workforce Solutions Consolidated Plan, and the City must conduct a public hearing to allow input from the public . This information was posted on the City’s CDBG website, City staff published a 30-Day Notice of Public Hearing in the Desert Sun on February 1, 2026, and a 10-Day Notice of Public Hearing on March 1, 2026, in both English and Spanish. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: The City anticipates receiving approximately $365,400 in CDBG funds for FY 2026 -27, which will be budgeted in CDBG Account No. 2204800-4388000. Up to 20% of the award may be allocated to administrative costs to manage the CDBG Program which is split between the County and City (13% and 7% respectively). Remaining funds will be allocated to the various program awardees. The administrative amount allocated to the City will reimburse the General Fund for associated staff costs within the allocated amount. ATTACHMENTS: 1. CDBG Funding Recommendations Budget Summary 2. Public Hearing Notice - 30 days English 3. Public Hearing Notice - 30 days Spanish 4. Public Hearing Notice - 10 days English and Spanish 5. CDBG Presentation 157 City of Palm Desert Approve Program Year 2026-27 Recommendations 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): 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. 158 Page 1 Community Development Block Grant Funding Recommendations Budget 159 Page 2 Program Year 2026-27 Community Development Block Grant Funding Recommendations $365,400 Applicant Activity Description Funding Request OAC Recommendation Public Services (15%) 1 Jewish Family of the Desert Emergency Financial Assistance $10,000 $0 2 Jewish Family Service of San Diego Street Outreach $15,000 $0 3 Operation Safe House Inc Youth Homeless Transitional Living Program $18,000 $18,000 4 Food in Need of Distribution FIND Mobile Market - Palm Desert High School $20,000 $0 TOTAL $63,000 $18,000 Public Facilities and Improvements (No Cap) 5 The Joslyn Center Replace (7) Air Condition Units $100,000 $100,000 6 Desert ARC Replace (7) HVAC Units $471,212 $174,320 TOTAL $571,212 $274,320 Program Administration (20% Cap) 7 County Grant Administrator County's shared cost 13% $ 47,502 $47,502 City Grant Administrator City's shared cost 7% $ 25,578 $25,578 TOTAL $ 73,080 $73,080 GRAND TOTAL $ 707,292 $365,400 160 Page 3 Summary of Grant Applications Below you will find a summary of each grant application for Fiscal Year 2026-27. County and City CDBG Allocation: $365,400 1. Jewish Family Service of the Desert (Public Services)  Requested Amount: $10,000  Funding Recommendation: $0  Project Name: Case Management Emergency Financial Assistance for Palm Desert residents  Program Description: Jewish Family Service of the Desert (JFS) – Case Management Program. JFS provides free, year-round bilingual (English/Spanish) case management to residents throughout the Coachella Valley. The program delivers individualized client advocacy and emergency financial assistance to low- and moderate- income households, helping residents cover past-due rent, utilities, food, and medication. JFS anticipates increasing the number of Palm Desert individuals and families receiving emergency financial assistance by approximately 35 . Denied: Per the County Grant Administrator, the proposal lacks a clear and focused service delivery plan, includes multiple unfocused purposes, and does not adequately document that at least 51% of beneficiaries are low- to moderate-income Palm Desert residents. Additionally, the requested funding level—$10,000 for 35 clients (approximately $286 per client)—raises concerns about the feasibility of delivering meaningful services at the proposed per-client amount. 2. Jewish Family Service of San Diego (Public Services)  Requested Amount: $15,000  Funding Recommendation: $0  Project Name: Basic Necessities for Individuals Facing Homelessness- Street Outreach  Program Description: Jewish Family Service of the Desert (JFS) – Homeless Support & Street Outreach operates two HUD-funded Permanent Supportive Housing programs that provide safe and affordable housing for up to 207 chronically homeless individuals and families in Riverside County. In alignment with the regional “No Wrong Door” policy, JFS conducts daily outreach to people experiencing homelessness, offering immediate basic needs—food, water, hygiene kits, clean clothing, and backpacks with essential supplies —along with assessments, information, and referrals to appropriate service providers. CDBG funds will support food, hygiene items, and outreach supplies for individuals engaged through street outreach in Palm Desert and Desert Hot Springs. 161 Page 4 Denied: Per the County Grant Administrator, does not meet the CDBG national objective. These services and activities fall under the Emergency Solutions Grant (ESG) program, which specifically funds homeless operations. 3. Operation Safehouse (Public Services)  Requested Amount: $18,000  Funding Recommendation: $18,000  Project Name: Harrison House Transitional Living Program  Program Description: o The agency serves runaway youth, homeless and at-risk youth in the Coachella Valley. The agency requests funds for staffing to continue the operation of the Harrison House (transitional living home), which supports homeless young adults ages 18 to 24 who seek to become independent and self-sufficient adults. The agency proposes to serve 10 young people. 4. Food in Need of Distribution, Inc. dba: FIND Regional Food Bank (Public Services)  Requested Amount: $20,000  Funding Recommendation: $ 0  Project Name: FIND Mobile Market – Palm Desert High School  Project Description: FIND Food Bank operates the Community Mobile Market at Palm Desert High School, providing fresh, nutritious food directly to low- and moderate-income Palm Desert residents. The market distributes fruits and vegetables, proteins, pantry staples, and culturally appropriate items, staffed by trained personnel and volunteers who assist with distribution, safety, and referrals to additional services. Funds will support essential operational needs—including transportation, staffing, and supplies—ensuring the Mobile Market continues to offer reliable, accessible, and high-quality food assistance to the community. Denied: Per the County Grant Administrator, this does not meet HUD Public Service requirements because HUD requires unduplicated client counts for activities that qualify under the Limited Clientele national objective. Total participant counts alone are not sufficient for CDBG compliance. 5. The Joslyn Center (Public Facilities and Improvements)  Requested Amount: $ 100,000  Funding Recommendation: $ 100,000  Project Name: Joslyn Center Air Conditioning Replacement  Project Description: The Joslyn Center seeks funding to replace seven (7) aging HVAC units specifically four (4) 5-ton air conditioning compressors and associated heating units serving the Wellness Center, and three (3) units serving the Arthur Newman Theater. All systems were installed in 2007 and operate with obsolete R-22 refrigerant, making repairs costly and unreliable. These units have 162 Page 5 exceeded their useful life and are among the oldest at the facility. Replacement is essential to maintain safe, reliable cooling, especially during the summer months when the Center functions as a community “cooling center.” New units will also improve energy efficiency and reduce operating costs. Up to 20% of project funds will support required design and project management to ensure full CDBG compliance. 6. Desert ARC (Public Facilities and Improvements)  Requested Amount: $471,212  Funding Recommendation: $174,320  Project Name: Desert ARC Replacement HVAC Units – Building 1  Program Description: Desert ARC provides essential day programs, job training, and supportive services to adults with intellectual and developmental disabilities in a safe and inclusive environment. To maintain reliable climate control, Desert ARC seeks funding to replace seven (7) aging HVAC units serving in Building 1 of its Palm Desert campus where clients spend the majority of their day. These units have exceeded their useful life, experience frequent failures, and no longer operate efficiently, creating health and safety concerns, especially during extreme summer heat. Replacing the systems will ensure consistent indoor comfort, improve energy efficiency, reduce maintenance costs, and support the well- being of the hundreds of clients who rely on Desert ARC’s programs each day. The new HVAC systems will also provide an estimated 15-year service life for Building 1, ensuring long-term reliability and stability for program operations. 7. City of Palm Desert (Administration)  Requested Amount: $73,080  Funding Recommendation: $73,080  Project Description: Estimated allocation shared with the County. JointMetro Cooperating Contract Formula: 13% County and 7% City County receives $365,400 × 0.13 = $47,502 City receives $365,400 × 0.07 = $25,578 163 164 CITY OF PALM DESERT NOTICE OF PUBLIC HEARING Community Development Block Grant Program Program Year 2026-2027 Annual Action Plan NOTICE IS HEREBY GIVEN that the City of Palm Desert will conduct a public hearing to provide the public with an opportunity to express their views on the City’s Program Year (PY) 2026 Community Development Block Grant (CDBG) Annual Action Plan. The Palm Desert City Council will consider adopting the Annual Action Plan at the public hearing. NOTICE IS FURTHER GIVEN that the Public Hearing will be held on Thursday, March 12, 2026, at 4:00 p.m. at the Palm Desert Council Chamber, located at 73-510 Fred Waring Drive, Palm Desert, CA 92260. A presentation on the proposed Program Year (PY) 2026-2027 CDBG Annual Action Plan will be made at the City Council meeting on March 12, 2026. The public is invited to attend and provide comments during the hearing. Residents may submit comments regarding the PY 2026-2027 CDBG Annual Action Plan on or before March 12, 2026, to the Palm Desert City Clerk’s Office, located at 73-510 Fred Waring Drive, Palm Desert, CA 92260 (Attention: City Clerk). Comments may also be submitted via fax at (760) 340-0574 or by email at cityclerk@palmdesert.gov. Americans with Disabilities Act (ADA) In compliance with the ADA, if you require special assistance to participate in the public hearing, please contact the City Clerk’s Office at (760) 346-0611. Notification at least 48 hours before the meeting will help ensure that reasonable accommodations are made. Livestream Information The public may also access the livestream of the City Council meeting at the following link: https://www.palmdesert.gov/connect/city-council or via Telephone (213) 338-8477 and enter Meeting ID 833 6744 9572 followed by #. CDBG Program Background The national objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, primarily for low- and moderate-income persons. At least 80% of CDBG funds must be used for activities that benefit low- and moderate-income persons. CDBG goals include: 1. Improving the urban environment in low- and moderate-income areas; 2. Eliminating blighting influences and the deterioration of property, neighborhoods, and public facilities in low- and moderate-income areas; and 3. Ensuring decent, safe, sanitary housing for low- and moderate-income residents. The City of Palm Desert received $365,400.00 in CDBG funds for PY 2026-2027 (July 1, 2026 – June 30, 2027) for the purposes of undertaking a variety of projects meeting one of the three national objectives – 1) benefit low- and moderate-income persons, 2) aid in the prevention or elimination of slums and blight, or 3) meet other community development needs having a particular urgency. The proposed projects include Public Services (up to 15% of grant amount); Program Administration (up to 20% of grant amount), and Capital Projects. 165 Eligible activities include but are not limited to the following: public facility construction and improvements; handicap accessibility; operational funding for non-profit agencies servicing primarily low-income persons; rehabilitation of owner-occupied housing; housing development assistance; enforcement of City codes; clearance and demolition; infrastructure improvements; and business development and job creation activities. An electronic version of the 2026 Annual Action Plan may be viewed on the City’s website at https://www.palmdesert.gov/departments/special-programs/community-development-block- grant-cdbg. Si necesita ayuda con esta carta, por favor llame a la Ciudad de Palm Desert y puede hablar con Damian Olivares al teléfono (760) 346-0611. /s/ Anthony J. Mejia City Clerk City of Palm Desert, California Published: February 1, 2026 166 CIUDAD DE PALM DESERT AVISO DE AUDIENCIA PÚBLICA Programa de Subvenciones en Bloque para el Desarrollo Comunitario Plan de Acción Anual del Año Programático 2026-2027 POR LA PRESENTE SE DA AVISO de que la Ciudad de Palm Desert llevará a cabo una audiencia pública para brindar al público la oportunidad de expresar sus opiniones sobre el Plan de Acción Anual del Año Programático (PY) 2026 -2027 del Programa de Subvenciones en Bloque para el Desarrollo Comunitario (CDBG). El Concejo Municipal de Palm Desert considerará la adopción del Plan de Acción Anual durante dicha audiencia pública. ASIMISMO, SE DA AVISO de que la Audiencia Pública se llevará a cabo el jueves 12 de marzo de 2026, a las 4:00 p.m., en la Sala del Concejo Municipal de Palm Desert, ubicada en 73-510 Fred Waring Drive, Palm Desert, CA 92260. En la reunión del Concejo Municipal del 12 de marzo de 2026 se presentará el Plan de Acción Anual propuesto del CDBG para el Año Programático 2026. El público está invitado a asistir y presentar comentarios durante la audiencia. Los residentes pueden enviar comentarios sobre el Plan de Acción Anual del CDBG del PY 2026-2027 en o antes del 12 de marzo de 2026, a la Oficina del Secretario Municipal de Palm Desert, ubicada en 73-510 Fred Waring Drive, Palm Desert, CA 92260 (Atención: Secretario Municipal). Los comentarios también pueden enviarse por fax al (760) 340 - 0574 o por correo electrónico a cityclerk@palmdesert.gov. Ley para Estadounidenses con Discapacidades (ADA) En cumplimiento con la ADA, si necesita asistencia especial para participar en la audiencia pública, comuníquese con la Oficina del Secretario Municipal al (760) 346 - 0611. La notificación al menos 48 horas antes de la reunión ayudará a garantizar que se realicen las adaptaciones razonables. Información de Transmisión en Vivo El público también puede acceder a la transmisión en vivo de la reunión del Concejo Municipal en el siguiente enlace: https://www.palmdesert.gov/connect/city-council o por teléfono al (213) 338-8477 e ingrese el ID de la reunión 833 6744 9572, seguido del #. Antecedentes del Programa CDBG El objetivo nacional del programa CDBG es desarrollar comunidades urbanas viables mediante la provisión de vivienda digna, un entorno de vida adecuado y la ampliación de oportunidades económicas, principalmente para personas de ingresos bajos y moderados. Al menos el 80% de los fondos CDBG debe utilizarse para actividades que beneficien a personas de ingresos bajos y moderados. Los objetivos del CDBG incluyen: 1. Mejorar el entorno urbano en áreas de ingresos bajos y moderados; 167 2. Eliminar las influencias de deterioro y el deterioro de propiedades, vecindarios e instalaciones públicas en áreas de ingresos bajos y moderados; y 3. Garantizar vivienda digna, segura y sanitaria para residentes de ingresos bajos y moderados. La Ciudad de Palm Desert recibió $365,400 en fondos CDBG para el Año Programático 2026-2027 (1 de julio de 2026 – 30 de junio de 2027) con el propósito de llevar a cabo diversos proyectos que cumplan con uno de los tres objetivos nacionales: 1) beneficiar a personas de ingresos bajos y moderados; 2) ayudar en la prevención o eliminación de tugurios y deterioro urbano; o 3) atender otras necesidades de desarrollo comunitario de particular urgencia. Los proyectos propuestos incluyen Servicios Públicos (hasta el 15% del monto de la subvención), Administración del Programa (hasta el 20% del monto de la subvención) y Proyectos de Capital. Las actividades elegibles incluyen, entre otras: construcción y mejoras de instalaciones públicas; accesibilidad para personas con discapacidades; financiamiento operativo para agencias sin fines de lucro que atienden principalmente a personas de bajos ingresos; rehabilitación de viviendas ocupadas por sus propietarios; asistencia para el desarrollo de vivienda; cumplimiento de los códigos municipales; limpieza y demolición; mejoras de infraestructura; y actividades de desarrollo empresarial y creación de empleos. Una versión electrónica del Plan de Acción Anual 2026 puede consultarse en el sitio web de la Ciudad en: https://www.palmdesert.gov/departments/special-programs/community-development- block-grant-cdbg Si necesita ayuda con este aviso, por favor comuníquese con la Ciudad de Palm Desert y puede hablar con Damian Olivares al (760) 346-0611. /s/ Anthony J. Mejia Secretario Municipal Ciudad de Palm Desert, California Publicado: 1 de febrero de 2026 168 CITY OF PALM DESERT NOTICE OF PUBLIC HEARING FOR THE PROGRAM YEAR 2026-2027 COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL ACTION PLAN NOTICE IS HEREBY GIVEN that the City of Palm Desert will hold a Public Hearing and invites the general public to attend. This hearing is being held in accordance with the Housing and Community Development Act of 1974, as amended, to discuss the Draft Program Year (PY) 2026- 2027 Annual Action Plan. The City Council is expected to adopt the amendment on March 12, 2026. NOTICE IS FURTHER GIVEN that the Public Hearing will be held on Thursday, March 12, 2026, at 4:00 p.m. at the Palm Desert Council Chamber, located at 73-510 Fred Waring Drive, Palm Desert, CA 92260. The public may also access the livestream of the City Council meeting via the following link: https://www.palmdesert.gov/connect/city-council or via Telephone (213) 338-8477 and enter Meeting ID 833 6744 9572 followed by #. Public Comment: The public may submit comments on or before March 12, 2026, to the Palm Desert City Clerk’s Office, 73-510 Fred Waring Drive, Palm Desert, CA 92260 (Attention: City Clerk). Comments may also be submitted by email at cityclerk@palmdesert.gov. Si necesita ayuda con esta carta, por favor llame a la Ciudad de Palm Desert y puede hablar con Damian Olivares al teléfono (760) 346-0611. /s/ Anthony J. Mejia City Clerk City of Palm Desert, California Published: March 1, 2026 169 CIUDAD DE PALM DESERT AVISO DE AUDIENCIA PÚBLICA PARA EL AÑO PROGRAMÁTICO 2026-2027 PLAN DE ACCIÓN ANUAL DEL PROGRAMA CDBG SE NOTIFICA que la Ciudad de Palm Desert llevará a cabo una Audiencia Pública e invita al público en general a asistir. Esta audiencia se lleva a cabo de acuerdo con la Ley de Vivienda y Desarrollo Comunitario de 1974, según enmiendas, para discutir el Borrador del Plan de Acción Anual del Año Programático (AP) 2026-27. Se espera que el Concejo Municipal adopte la enmienda el 12 de marzo de 2026. TAMBIÉN SE NOTIFICA que la Audiencia Pública se llevará a cabo el jueves, 12 de marzo de 2026, a las 4:00 p.m. en la Sala del Concejo Municipal de Palm Desert, ubicada en 73-510 Fred Waring Drive, Palm Desert, CA 92260. El público también puede acceder a la transmisión en vivo de la reunión del Concejo Municipal a través del siguiente enlace: https://www.palmdesert.gov/connect/city-council o por teléfono al (213) 338-8477 e ingrese el ID de la reunión 833 6744 9572, seguido del #. Comentarios del Público: El público puede enviar comentarios antes o el mismo 12 de marzo de 2026, a la Oficina del Secretario de la Ciudad de Palm Desert, 73-510 Fred Waring Drive, Palm Desert, CA 92260 (Atención: Secretario de la Ciudad). Los comentarios también pueden enviarse por fax al (760) 340-0574 o por correo electrónico a cityclerk@palmdesert.gov. Si necesita ayuda con esta carta, por favor llame a la Ciudad de Palm Desert y comuníquese con Damian Olivares al teléfono (760) 346-0611. /s/ Anthony J. Mejia Secretario Municipal Ciudad de Palm Desert, California Publicado: 1 de marzo de 2026 170 COMMUNITY DEVELOPMENT BLOCK GRANT APPROVAL OF PROGRAM YEAR 2026 -27 FUNDING Ivan Tenorio, Homeless and Supportive Services Manager 171 Program Purposes: •Support Public Services •Support Public Facilities an infrastructure •Support Economic Opportunities National Objectives Requirements: •Benefit low -and -moderate income families •Prevent or eliminate Slums or Blight Communities •Address urgent Community needs 2 OVERVIEW 172 3 ALLOCATIONS Program Year 2026-27 Community Development Block Grant Funding Recommendations $365,400 Applicant Activity Description PY 26-27 Request PY 26-27 Recommendation Public Services (15%) 1 Jewish Family of the Desert Emerg Financial Assistance $10,000 $0 2 Jewish Family of San Diego Street Outreach $15,000 $0 3 Operation Safe House Inc Youth Homeless Transitional Living $18,000 $18,000 4 Food in Need of Distribution FIND Mobile Market -PDHS $20,000 $0 TOTAL $63,000 $18,000 Public Facilities and Improvements (No Cap) 5 The Joslyn Center Replace (7)A/C Units $100,000 $100,000 6 Desert ARC Replace (7)HVAC Units $471,212 $174,320 TOTAL $571,212 $274,320 Program Administration (20%Cap) 7 County Administrator County's shared cost 13%$47,502 $47,502 8 City Administrator City's shared cost 7%$25,578 $25,578 TOTAL $73,080 $73,080 GRAND TOTAL $707,292 $365,400 173 4 RECOMMENDATION •Approve the Outside Agency Community recommendations for Program Year 2026-27 CDBG Funding allocation •Authorize the City Manager to execute all documents and notify the County of Riverside of the approved Program Year 2026–27 funding recommendations. •These actions ensure continued HUD compliance, maximize the effective use of federal funds, and allocate resources to projects that meet HUD National Objectives and community priorities. 174 THANK YOU Questions? 175 176 COMMUNITY DEVELOPMENT BLOCK GRANT APPROVAL OF PROGRAM YEAR 2026 -27 FUNDING Ivan Tenorio, Homeless and Supportive Services Manager 177 Program Purposes: •Support Public Services •Support Public Facilities an infrastructure •Support Economic Opportunities National Objectives Requirements: •Benefit low -and -moderate income families •Promote vibrant, renewed communities •Address urgent Community needs 2 OVERVIEW 178 3 ALLOCATIONS Program Year 2026-27 Community Development Block Grant Funding Recommendations $365,400 Applicant Activity Description PY 26-27 Request PY 26-27 Recommendation Public Services (15%) 1 Jewish Family of the Desert Emerg Financial Assistance $10,000 $0 2 Jewish Family of San Diego Street Outreach $15,000 $0 3 Operation Safe House Inc Youth Homeless Transitional Living $18,000 $18,000 4 Food in Need of Distribution FIND Mobile Market -PDHS $20,000 $0 TOTAL $63,000 $18,000 Public Facilities and Improvements (No Cap) 5 The Joslyn Center Replace (7)A/C Units $100,000 $100,000 6 Desert ARC Replace (7)HVAC Units $471,212 $174,320 TOTAL $571,212 $274,320 Program Administration (20%Cap) 7 County Administrator County's shared cost 13%$47,502 $47,502 8 City Administrator City's shared cost 7%$25,578 $25,578 TOTAL $73,080 $73,080 GRAND TOTAL $707,292 $365,400 179 4 RECOMMENDATION •Approve the Outside Agency Committee recommendations for Program Year 2026-27 CDBG Funding allocation •Authorize the City Manager to execute all documents and notify the County of Riverside of the approved Program Year 2026–27 funding recommendations. •These actions ensure continued HUD compliance, maximize the effective use of federal funds, and allocate resources to projects that meet HUD National Objectives and community priorities. 180 THANK YOU Questions? 181