HomeMy WebLinkAbout07 C41710 - CBRE - Real Estate Advisory SvcsCONTRACT NO. C41710
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STAFF REPORT
CITY OF PALM DESERT
ECONOMIC DEVELOPMENT DEPARTMENT
MEETING DATE: June 24, 2021
PREPARED BY: Martin Alvarez, Director of Economic Development
REQUEST: Approval of a professional services agreement with CBRE, Inc. to
provide Real Estate Advisory Services.
________________________________________________________________________
Recommendation
By Minute Motion: Authorize the City Manager to execute a professional
services agreement with CBRE, Inc. to provide professional real estate
advisory services in an amount not to exceed $75,000.
Strategic Plan Objective
The approval of the proposed agreement aligns with the City’s Envision Palm Desert Strategic
Plan and Economic Development Strategic Plan in the following areas:
• Economic Development Priority 1: Expand job and business creation opportunities
• Economic Development Priority 2: Expand quality education
• Economic Development Strategic Plan (2018) - Expand entrepreneurial development
Background
City’s Envision Palm Desert Strategic Plan and the 2018 Economic Development Strategic
Plan set forth goals to continue to enhance educational opportunities and expand job and
business development opportunities. On the education front, the City continues its efforts to
establish a standalone 4-year university at the California State University San Bernardino
Palm Desert Campus (CSUSB-PDC) with the creation of a 501c4, independent non-profit
entity known as Priority One Coachella Valley (P1CV). The formation of P1CV was led by
the City of Palm Desert and the Greater Palm Springs Visitors and Convention Bureau (CVB)
with initial donations of $150K by the City and $30K by the CVB. The main focus of P1CV
is to implement public outreach and media campaigns to persuade the California legislature
to expand the CSUSB- Palm Desert Campus or create a stand-alone Palm Desert Campus
on the 170-acre shovel-ready property, donated by the City of Palm Desert in 2000 and 2015.
Another focus of the strategic plan has been the expansion of new entrepreneur jobs and
business creation opportunities in efforts to diversify the Palm Desert economy. Recent steps
taken to achieve this goal include the development of the Palm Desert iHUB in the northern
part of Palm Desert. In March of 2020 (prior to COVID-19 restrictions), the City invested $1M
in the creation of the Palm Desert iHUB, which includes a 10,000 square foot leased office
space located at 37-023 Cook Street, Suite 102 (southwest corner Cook St./University Drive).
June 24, 2021 – Staff Report
CBRE RE Advisory Services
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PD iHUB includes a partnership with CSUSB-PDC and the Coachella Valley Economic
Partnership (CVEP). CSUSB’s partnership includes a sublease of 3,000 square feet within
the City’s iHUB to provide faculty offices and a classroom space for their new Cybersecurity,
Entrepreneur, and Hospitality Management programs. CSUSB has also facilitated the
installation of high-speed broadband at the PD iHUB (1Gbps CENIC line), which is an internet
connection five (5) times faster than commercially available on the market.
The operations of PD iHUB will be handled by CVEP and will include a focus on attracting
new start-up technology-based businesses, business mentoring, and collaboration with
CSUSB-PDC students. The PD iHUB is scheduled to open this summer after COVID-19
restrictions are lifted and the City anticipates scheduling a grand opening in the Fall of 2021.
Discussion
As the City continues to make strides in expanding education and new jobs in Palm
Desert, staff is seeking the assistance of professional real estate advisors to focus on the
northern part of the City (north of Frank Sinatra/see attached map) to accomplish the
following scope of work:
• Evaluate the City’s existing Economic Development Strategic Plan (EDSP) and
make recommendations on how to best attract development, industries, and
investment to Palm Desert.
• Provide peer review of the (EDSP) and offer updates relative to development
opportunities in light of future economic growth projections and capital market
activities, including restated market absorption analysis.
• Evaluate the development potential of the City’s North Sphere, bounded by
Interstate 10 to the north, Monterey Avenue to the west, Gerald Ford to the east,
and Frank Sinatra to the south.
o Assess the City’s Land Use and Zoning requirements and recommend
enhancements or deletions relative to market conditions, infrastructure, and
transportation options
o Provide recommendations on economic development tools that will attract
new technology-based businesses, bio-medical/research companies and
support the expansion of other regional industries and institutions that would
help to diversify the City’s economy. This information can be turned into a
focused marketing campaign.
• Make recommendations for potential strategic acquisition targets by the City and
create general policy guidelines to support other future acquisition possibilities that
would enhance the City’s economic development opportunities.
On April 7, 2021, staff posted and requested proposals from qualified real estate advisory
service firms (RE Advisors). On April 26, 2021, staff received two proposals from qualified
firms.
1. R.C.L.C.O. – Los Angeles, CA
2. CBRE, Inc. - Ontario, CA
June 24 , 2021 -Staff Report
CBRE RE Advisory Services
Page 3 of 3
A team of City staff, including members from the Economic Development Department,
Community Development, and the City Manager's office reviewed both proposals and
interviewed each firm . After the review of the proposal and the interviews , staff is
recommending contracting with CBRE , Ontario , CA. CBRE was the firm best fit to perform
the real estate advisory services identified in the scope above . CBRE is well qualified and
has performed similar scopes of work for other private and public entities (see attached
proposal). The proposed scope of work is scheduled to be completed within 90-days from
contract execution and has complete s imilar work the Cities of Oceanside , Chula Vista and
the U .S. Navy in San Diego . Staff recommends approval of the attached agreement with
CBRE .
Fiscal Analysis
The cost for the professional real estate advisory services is $75 ,000. Funds to complete
the scope of work identified in the attached agreement are available in the Economic
Development Department Budget for FY 2021/22 .
LEGAL REVIEW DEPT. REVIEW FINANCIAL ASSISTANT
REVIEW CITY MANAGER
/\/1o.,,vf0,v Al.,v-o..,v e,z 9/!M'\,e:t '111. '11100,u,, :Anay :Firestine
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Martin Alvarez
Robert W . Director of Janet M . Moore Andy F irestine
Hargreaves Economic Director of Finance Assistant City
City Attorney Development Manager
L. Todd H ileman , City Manager: L . TOC\C\ H-tleVvtetV\-
Vendor : CBRE , Inc .
4141 In land Empire Boulevard , Suite 100
Ontar io, CA 91764
Attachments : CBRE Proposal
Professional Services Agreement with CBRE (Contract No. C41710)
University District Map
CITY COUNCil,A,CTION
APPROVED_-"i_ ____ DENIED ____ _
RECEIVED OTHER _____ _
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NoEs: None/ ,-t:J 1 ' '1
ABsENT: __ N_Dn_..,e~---------
AnsTAIN: Nane...
VERIFIED BY:_.,.M..,{..._:::1_$+-/ ._S_f3"'-_____ ::
Original on File with Citv Clerk's Office
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COMMERCIAL REAL ESTATE SERVICES
M E M O
Date: May 26, 2021
To: Martin Alvarez
Director of Economic Development
City of Palm Desert, CA
From:
CC:
Subject:
Mr. Alvarez,
Brian Hutcherson
Mike McShea, Alberto Vela, William Andersen
Price Proposal for Consulting Support / City of Palm Desert
CBRE
CBRE, Inc.
www.cbre.com
T +1 858 546 2639
F +1 858 546 3985
C +1 858 405 6109
brian. hutcherson@cbre.com
Our team is excited to have been selected to work with the City of Palm Desert!
Please see the price proposal included in this document that reflects all costs associated with
starting and completing the below tasks for the City of Palm Desert. This price proposal is a
Lump Sum, Fixed Fee, and Not to Exceed the proposed amount. All travel, meetings, and
conferences have been included.
Scope of Work
1. Evaluate the City's existing Economic Development Strategic Plan (EDSP) and
recommend how best to attract development, industries, and investment to Palm Desert.
2. Provide peer review of the (EDSP) and offer updates relative to development
opportunities in light of future economic growth projections and capital markets activities,
including restated market absorption analysis.
3. Evaluate the development potential of the City's North Sphere, bounded by Interstate 10
on the north, Monterey Avenue to the west, Gerald Ford to the east, and Frank Sinatra
to the south.
a. Assess the City's Land Use and Zoning requirements and recommend
enhancements or deletions relative to market conditions, infrastructure, and
transportation options.
b. Provide recommendations on economic development tools that will attract new
technology-based businesses, bio-medical/research companies and support the
expansion of other regional industries and institutions that would help to diversify
the City's economy.
4. Make recommendations for potential strategic acquisition targets by the City and create
general policy guidelines to support other future acquisition possibilities that would
enhance the City's economic development opportunities.
The CBRE team will complete all tasks described in the above for a flat fee of $84,645. In the
event that the City of Palm Desert engages us to represent the City in the solicitation of
developers to redevelop existing owned property, acquire, dispose, or lease City assets, CBRE
will be compensated by a commission schedule to be negotiated at a later date. This
arrangement limits the City's out-of-pocket costs for representation services. In this scenario,
CBRE will rebate 50% of $84,645 back to the City from the proceeds of any commissions.
Pricing Model:
CBRETeam
TITLE Person
Executive Overslght Mlke McShea
Project Manager 8rian Hu�cherson
ConsWction NbertoVela
Senior Support Marke�ing Sarah Fnedfeld
Ecanomic Developemn� Expert BIII Mdersen
CBRE
Tre�el TnPs (6) aQ $125 X 3
' PeerReNewsupdatee �i �e�relopmemPate��eioi RemmmenoPote�oais�m�egi� InPersonMeetings%384 presen�ationsandPrepahion
De�elopmentSVategicLPlan MaMetAnalysis CitysNoriM1SpM1ere Ccquisi4ons Utl¢OCO�fE�a�C25
45 Days 60 Days Land Use & Developmenl Tools
Rate I Hours Fee Fburs Fee Fb�rs Fee Hours Fee Hours
$350.00 2 $]OO.00I 1 §350.00 8 $2,800.00 i6 $5.600.00
s�so.00 �I i� 5a.000.00� za ss,000.00 ao s�,soo.00 is sa,000.00i
$250.00 II 8 52,00O.00I 10 $2,500.00 i6 $6,000.00 B $2,00O.00I
si�s.00 �I a s�oo.00� i si�e.00 a $�oa.00 a $�oo.aa
$270.00 II 24 $6,480.00I 8 $2,160.00 28 $7.560.00 8 $2.160.00I
Hours II 50 I 44 I 86 52
Fees $12,880.00I i11,185.00� 522,560.00 $14,46a.00
' �������■
Fee Hours Fee
$3,500.00 8 52,80000
$2500.00 8 52,00000
$2,500.00 8 52,000.00
s�oa.ao a s�oo.oa
sz.�oa.00 e sz,iso.oa
36
$ii,soa.ao ss,sso.oa
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�
GRANDTOTAL I $84,645.00I
Our team looks forward to getting started on this assignment and is excited about working with
you and your staff.
If there are any additional questions or concerns, please don't hesitate to contact me directly at
the number listed above.
�
/ ' �
Brian Hutcherson
Western Regional Manager
Public Institutions & EducationSolutions
CBRE, Inc
CONTRACT NO. C41710
CITY OF PALM DESERT
PROFESSIONAL SERVICES AGREEMENT
Contract No. C41710
1. PARTIES AND DATE.
This Agreement is made and entered into this 24TH day of June, 2021, 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, County of Riverside, State of California (“City”) and CBRE, Inc. with its principal place of
business at 4141 Inland Empire Boulevard, Suite 100, Ontario, CA 91764 ("Consultant"). City
and Consultant are sometimes individually referred to herein as "Party" and collectively as
"Parties."
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: Professional Real Estate Advisory 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 exhibit 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 July 1, 2021 to October
31, 2021, unless earlier terminated as provided herein. 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. 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.
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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 "A" 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: Chris Herman, President.
3.2.5 City's Representative. The City hereby designates Martin Alvarez, Director
of Economic Development, 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 Consultant 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.
3.2.6 Consultant's Representative. Consultant hereby designates Kristin
Herman, CFO, 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 to 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
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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 Exhibit “A” 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.
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 amended 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, handicap,
ancestry, sex or age. 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 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.
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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 form 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.
(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 injury 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
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(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) [Reserved]
(G) [Reserved]
If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for
an additional period of three (3) years followin g 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 provision 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 promptly 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 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
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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 Consultant. 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.
(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.
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(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, 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. Consultant shall receive compensation, including
authorized reimbursements, for all Services rendered under this Agreement at the rates set forth
in Exhibit "A" attached hereto and incorporated herein by reference. The total compensation shall
not exceed Seventy Five Thousand ($75,000.00) 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
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constitute a waiver of any claims by the City for any reason whatsoever.
3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any
expenses unless authorized in writing by City, or included in Exhibit "A" of this Agreement.
3.3.4 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 execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization
from the City.
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 W age 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, 1813, 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 Code 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
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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 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
Consultant shall be entitled to no further compensation. Consultant may not terminate this
Agreement except for cause.
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 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:
Consultant: CBRE, Inc.
4141 Inland Empire Blvd, Suite 100
Ontario, CA 91764
ATTN: Brian Hutcherson
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
ATTN: Martin Alvarez, Dir. of Economic Development
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.
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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 copyrights, 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 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 the 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 liable, 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,
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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 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, including 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
Consultant’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
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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, and, 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 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 work
days. 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,
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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 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 NEXT PAGE]
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SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT
AND CBRE, INC.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
executed on the day and year first above written.
CITY OF PALM DESERT
By:
L. TODD HILEMAN
City Manager
ATTEST:
By:
M. Gloria Sanchez, Acting City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney
REVIEWED BY:
____________________________________
Martin Alvarez
Director of Economic Development
CBRE, INC.
By:
Its:
Printed
Name:
By:
Its:
Printed
Name:
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy,
or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public,
personally appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the
document and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this certificate is attached, and not the truthfulness, accuracy,
or validity of that document.
STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public,
personally appeared , who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed
the instrument.
I certify under PENALTY OF PERJURY under the laws of
the State of California that the foregoing paragraph is true
and correct.
WITNESS my hand and official seal.
Signature of Notary Public
OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the
document and could prevent fraudulent removal and reattachment of this form to another document.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
Individual
Corporate Officer
Title(s) Title or Type of Document
Partner(s) Limited
General Number of Pages
Attorney-In-Fact
Trustee(s)
Guardian/Conservator Date of Document
Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
CONTRACT NO. C41710
EXHIBIT "A"
SCOPE OF SERVICES
See CBRE Proposal
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