July 2 Daily Briefing: Grand jury findings, Love Local discounts returning, and more

Welcome to Wednesday, everyone. With the Fourth of July weekend approaching and wildfire season already impacting parts of Riverside County, our local animal shelters are facing a perfect storm — the county shelter system is operating at 230% capacity for dogs, while The Desert Sun reported that Palm Springs Animal Shelter is running at “two to three hundred percent above what we should be dealing with.” The good news is that the county has waived all adoption fees right now, so if you’ve been thinking about adding a furry friend to your family, there’s never been a better time to help ease this crisis!

🎶 Setting the mood: “The Bend” by Real Estate

LEADING OFF

City lost $700K due to inadequate grant oversight, grand jury finds

A Riverside County Civil Grand Jury investigation found Palm Springs lacked proper procedures to safeguard taxpayer funds from fraudulent nonprofit use, resulting in over $700,000 in losses. 

Driving the news: The investigation centered on a Universal Basic Income pilot program that the city funded through Queer Works and Desert AIDS Project, initially approved for $200,000 in March 2022 and expanded to $700,000 total by July 2022.

• The report was released in June, eight months after Queer Works CEO Jacob Rostovsky was indicted on 53 criminal counts for allegedly stealing more than $940,000 in public funds.

The problem: Palm Springs heavily relied on DAP Health’s endorsement to approve the Queer Works grant and lacked proper auditing procedures, the report said. 

• In addition, the grand jury found that the city failed to request monthly reports and invoices as required and provided no formal fraud prevention training for staff reviewing grant claims.

Looking back: Problems became apparent when then-City Councilmember Lisa Middleton raised concerns about Queer Works’ activities and missing financial reports in late 2023.

• The city had received only six progress reports from the organizations between 2022 and April 2023.

The response: On Tuesday, city officials acknowledged the findings and said they had been addressing issues identified in the report last year.

• The city has implemented six reforms since November 2024, including eliminating lump-sum payments for grants over $75,000 and mandating regular reporting.

What’s next: The grand jury issued 10 recommendations, including developing comprehensive grant guidelines by year’s end and annual fraud detection training for city employees.

• Rostovsky’s case is still working its way through the courts, with the next trial readiness conference currently scheduled for October.

Dive deeper with our complete story

BRIEFLY

🏛️Amid CEQA overhaul, board considers how environmental law applies to specific historic sites

The Palm Springs Historic Site Preservation Board met on Tuesday for a study session to review recommendations about how to apply the California Environmental Quality Act to Class 3 and Class 4 historic properties. The discussion takes place on the same day as Gov. Gavin Newsom signed into law two bills overhauling CEQA to make it easier to build in the state.

• The board discussed a memo from the city attorney recommending that board members treat Class 3 and 4 sites with a more conservative and clear approach, “with a level of CEQA analysis, depending on the project,” said Sarah Yoon, an associate planner for the city and Historic Preservation Officer. No action was taken during the session, and the board members’ questions will be relayed to the city attorney.
  
• The discussion comes on the same day the state rolled back parts of the landmark environmental law. Newsom threatened to reject the state budget unless lawmakers rolled back CEQA. Longtime CEQA opponents argue that it hinders housing development and is exploited by groups to prevent construction.
  
• Bottom line: The new laws will exempt high-density projects from CEQA review as long as they are not on environmentally sensitive or hazardous sites. The other makes legal review faster and exempts development projects, such as farmworker housing and child care centers, while making it easier to rezone certain areas for housing in specific cities.

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TODAY’S FEATURED EVENTS

Core & More
9 a.m. | The Center
Designed to improve stability and prevent falls, as well as bring a lot of fun to your workout routine. This class is held weekly and run by Emma Middlebrook. ($15)

“Women In The Wild” Art Walk
5 p.m. | Kee Gallery
It’s that time again for the free monthly Wednesday Art Walk at Kee Gallery. This month’s theme is all about “Women in the Wild” featuring five artists who paint out in nature.

Palm Springs Library Board Meeting
5:30 p.m. | City Hall
The Board reviews and amends library policy, reviews progress reports, discusses immediate and long-range library planning, and prepares an annual budget. Check out the agenda here.

Palm Springs Power Baseball
7 p.m. | Palm Springs Stadium
Your Palm Springs Power will go head-to-head with the San Diego United ($10)

See all events here

SAVE THE DATE

• 2025 All American 4th of July Weekend Thursday through Saturday in Palm Springs
  
• Falsettos begins at Palm Canyon Theatre on July 11
  
• Your Extraordinary Mind on July 12 at the Cultural Center
  
• PSUSD classified job fair on July 16 at the school district office

Submit your event here

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AND FINALLY …

If you’re looking for a way to beat the summer heat while supporting local businesses (and stretching your dollar in the process), Palm Springs has you covered with the return of its popular Love Local bonus card program.

Driving the news: Starting on Monday (July 7), residents can purchase digital gift cards worth $100, $200, or $300 and receive an additional 50 percent in bonus value from the city, turning that $100 purchase into $150 in local spending power.

• The cards work at more than 100 participating Palm Springs businesses, from restaurants and coffee shops to bookstores, spas, and hotels.

The timeline: Bonus funds expire on Oct. 31, though the original purchased amount never expires, giving cardholders flexibility beyond the promotional period.

Why it matters: The program aims to support local businesses during traditionally slower summer months, when even desert businesses can feel the heat of reduced foot traffic.

How to get yours: Visit this website to see participating businesses and purchase cards when the program launches on Monday. Local business owners interested in joining the program can contact Dean.Grubl@palmspringsca.gov.