HomeMy WebLinkAboutC39150A-D - FY 19-20 HVAC Services and ReparisC'C' -IgIE - 1�,
C3915OA-D
STAFF REPORT
CITY OF PALM DESERT
PUBLIC WORKS DEPARTMENT
MEETING DATE: August 22, 2019
PREPARED BY: Carlos Hernandez, Facilities Manager
REQUEST: Approve the use of four (4) specific contractors for Heating,
Ventilation, and Air Conditioning (HVAC) services and repairs up to
$25,000 per contractor for Fiscal Year (FY) 2019/20.
Recommendation
By Minute Motion:
Grant an exception to the bidding requirements, as provided for by
Section 3.30.160 (C.1) and (K) of the Municipal Code, for FY 2019/20.
2. Approve the use of specific local HVAC services and repairs from
Desert Air Conditioning, Inc., Pacific West Air Conditioning, H&H Air
Conditioning, and A#1 Service Heroes Air Conditioning up to $25,000
per contractor.
3. Authorize the City Manager to execute the agreements.
Funds are available in various General Fund Accounts for R/M Buildings.
Strategic Plan
This is an ongoing maintenance function and, as such, does not directly contribute to the
objectives of the Strategic Plan.
Backaround
The Public Works Department Facilities Division maintains various City -owned facilities,
including City Hall, Portola Community Center, Henderson Building, Historical Society
Building, Corporation Yard, Parkview Office Complex, State Building and three Fire
Stations. These facilities require various maintenance services, including HVAC services
and repairs. The City's Facilities Maintenance Division is neither equipped nor staffed to
accomplish all necessary repairs and maintenance to the facilities. Consequently, the City
relies on local contractors to perform services and repairs beyond the City's service
capabilities. HVAC services and repairs are some of the services needed consistently
and sometimes urgently.
Due to high temperatures in the Coachella Valley, it is important for City staff to establish
a pool of qualified service contractors so that in the event HVAC repairs costing more
than $2,000 are necessary, repairs may be done immediately. Establishing a list of
qualified contractors who are familiar with the City's specialty HVAC equipment will allow
August 22, 2019 - Staff Report
Approve the Use of Four (4) Specified HVAC Contractors
Page 2 of 3
for prompt repairs without requesting an emergency purchase order through the
procurement process. Staff contacted five (5) local and/or regularly used HVAC
contractors and requested information on services provided along with their hourly labor
rates. Four (4) contractors provided information as follows:
Contractor
Desert Air Conditioning, Inc.
Palm Springs CA
H&H Air Conditioning
Palm Desert, CA
A#1 Service Heroes
Palm Desert, CA
Pacific West Industries
Anaheim, CA
Priority One Air and Heat
Palm Desert, CA
Hourly Rate After Hour Rate
$98.00 $124.00
$98.50 $147.75
$118.00 $118.00
$149.00 $223.50
Non -Responsive
Weekend Rate
$138.00
$147.75
$118.00
$298.00
These contractors were chosen because of their location, quality of work, and/or
familiarity with the City's HVAC equipment. The services offered from by the contractors
on list are only for unscheduled, non -project related services. Staff's decision on which
contractor to use will be based on availability and cost for the most part. For instance,
although Pacific West Industries is not a local contractor, they hold one of the City's
primary HVAC preventative maintenance contracts and install much of the HVAC
equipment in City -owned facilities. Their familiarity with the HVAC equipment in these
areas is essential during episodes of equipment failure. Project related services, such as
scheduled replacement or upgrades of HVAC units, will follow the standard procedure for
procurement. Based on the need to immediately address HVAC failures at City facilities,
staff requests approval to use these four (4) contractors on an as needed basis during FY
2019-20 for $25,000 each with an annual aggregate amount of $100,000.
Fiscal Analvsis
Funds have been included in the various Public Works Building Accounts for HVAC
services and repairs; therefore, there is no fiscal impact beyond the annual amount.
LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY
REVIEW MANAGER
WA
Robert W. Hargreaves Tom Garcia, P.E. Jan . Moore Lauri Aylaian
City Attorney Director of Public Works Directo of Finance City Manaqer
August 22, 2019 - Staff Report
Approve the Use of Four (4) Specified HVAC Contractors
Page 3of3
CONTRACTORS: Desert Air Conditioning, Inc.
590 Williams Road
Palm Springs, CA 92264
Pacific West Air Conditioning
4051 E. La Palma Avenue, Unit A
Anaheim, CA 92807
H&H Air Conditioning, Inc.
74991 Joni Drive, #20
Palm Desert, CA 92260-2043
A#1 Service Heroes
77588 El Duna Ct, Ste. F
Palm Desert, CA 92211
ATTACHMENTS: Maintenance Agreements
Contractor Letters
CONTRACT NO. C39150A
(ITS Of P A[ M DESERT
73-510 FRED WARiNG DRivE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
INFOQa PALM-DESERT.ORG
CITY OF PALM DESERT
MAINTENANCE SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 22"d day of August, 2019, 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 Desert Air Conditioning, Inc., a
corporation with its principal place of business at 590 Williams Road, Palm Springs, CA 92264
("Contractor"). City and Contractor are sometimes individually referred to as "Party" and
collectively as "Parties" in this Agreement.
2. RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain
maintenance services required by the City on the terms and conditions set forth in this Agreement.
Contractor represents that it is experienced in providing HVAC services and repairs to public
clients, that it and its employees or subcontractors have all necessary licenses and permits to
perform the Services in the State of California, and that is familiar with the plans of City.
Contractor shall not subcontract any portion of the work 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.
2.2 Project.
City desires to engage Contractor to render such services for the Miscellaneous HVAC
Services and Repairs as Needed at Various City -owned Facilities project ("Project') as set
forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor 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 professional HVAC services and repairs necessary
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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 August 1, 2019 to June
30, 2019, unless earlier terminated as provided herein. Contractor shall complete the Services
within the term of this Agreement, and shall meet any other established schedules and deadlines.
The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to
complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Pavment of Subordinates: Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine the
means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Contractor on an independent contractor basis and not as an employee.
Contractor retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Contractor shall also not be employees of City and shall at all times be under
Contractor's exclusive direction and control. Contractor 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. Contractor 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. Contractor shall perform the Services expeditiously,
within the term of this Agreement, and in accordance with the Schedule of Services set forth in
Exhibit ' B" attached hereto and incorporated herein by reference. Contractor represents that it
has the professional and technical personnel required to perform the Services in conformance
with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall
respond to Contractor's submittals in a timely manner. Upon request of City, Contractor 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
Contractor shall be subject to the approval of City.
3.2.4 Citv's Representative. The City hereby designates Carlos Hernandez,
Facilities Manager, or his designee, to act as its representative for the performance of this
Agreement ("City's Representative"). City's Representative shall have the power to act on behalf
of the City for all purposes under this Agreement. Contractor shall not accept direction or orders
from any person other than the City's Representative or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Todd Shaw,
or his or her designee, to act as its representative for the performance of this Agreement
("Contractor's Representative"). Contractor's Representative shall have full authority to represent
and act on behalf of the Contractor for all purposes under this Agreement. The Contractor's
Representative shall supervise and direct the Services, using his 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.
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3.2.6 Coordination of Services. Contractor 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.
3.2.7 Standard of Care. Performance of Emglovees,. Contractor 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. Contractor represents and maintains that it is skilled in the professional calling
necessary to perform the Services. Contractor warrants that all employees and subcontractors
shall have sufficient skill and experience to perform the Services assigned to them. Finally,
Contractor represents that it, its employees and subcontractors have all licenses, permits,
qualifications and approvals of whatever nature that are legally required to perform the Services,
including a City Business License, and that such licenses and approvals shall be maintained
throughout the term of this Agreement. As provided for in the indemnification provisions of this
Agreement, Contractor 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
Contractor's failure to comply with the standard of care provided for herein. Any employee of the
Contractor or its sub -contractors 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 Contractor and shall not be
re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance. Contractor shall perform and complete all Services
under this Agreement within the term set forth in Section 3.1.2 above ("Performance Time").
Contractor shall 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 provided separately
in writing to the Contractor. Contractor agrees that if the Services are not completed within the
aforementioned Performance Time and/or pursuant to any such completion schedule or Project
milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged
and agreed that the City will suffer damage.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Contract,
Contractor shall continue to perform the Work while said dispute is decided by the City. If
Contractor disputes the City's decision, Contractor shall have such remedies as may be provided
by law.
3.2.10 Laws and Regulations: Emplovee/Labor Certifications. Contractor 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, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for
all violations of such laws and regulations in connection with Services. If the Contractor performs
any work knowing it to be contrary to such laws, rules and regulations and without giving written
notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a
public entity of the State of California subject to certain provisions of the Health & Safety Code,
Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed
that all provisions of the law applicable to the public contracts of a municipality are a part of this
Agreement to the same extent as though set forth herein and will be complied with. These include
but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours' labor
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shall constitute a legal day's work and that no worker shall be permitted to work in excess of eight
(8) hours during any one calendar day except as permitted by law. Contractor shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out
of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10.1 Emplovment Eliaibility: Contractor. By executing this
Agreement, Contractor verifies 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. Such
requirements and restrictions include, but are not limited to, examination and retention of
documentation confirming the identity and immigration status of each employee of the Contractor.
Contractor also verifies 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. Contractor shall avoid any violation of
any such law during the term of this Agreement by participating in an electronic verification of
work authorization program operated by the United States Department of Homeland Security, by
participating in an equivalent federal work authorization program operated by the United States
Department of Homeland Security to verify information of newly hired employees, or by some
other legally acceptable method. Contractor shall maintain records of each such verification, and
shall make them available to the City or its representatives for inspection and copy at any time
during normal business hours. The City shall not be responsible for any costs or expenses related
to Contractor's compliance with the requirements provided for in Section 3.2.10 or any of its sub-
sections.
3.2.10.2 Emplovment Eliaibilitv: Subcontractors. Sub -subcontractors and
Consultants. To the same extent and under the same conditions as Contractor, Contractor shall
require all of its subcontractors, sub -subcontractors and consultants performing any work relating
to the Project or this Agreement to make the same verifications and comply with all requirements
and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Emplovment Eliaibility: Failure to Comaly. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the City to terminate
the Agreement for cause: (1) failure of Contractor or its subcontractors, sub -subcontractors or
consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any
misrepresentation or material omission concerning compliance with such requirements (including
in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to
immediately remove from the Project any person found not to be in compliance with such
requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
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 Workers' 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.
3.2.10.5 Eaual ODDortunity Emplovment. Contractor represents that it is
an equal opportunity employer and it shall not discriminate against any subcontractor, 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
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initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or
termination. Contractor 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.
3.2.10.6 Air Qualitv. Contractor must fully comply with all applicable laws,
rules and regulations in furnishing or using equipment and/or providing services, including, but
not limited to, emissions limits and permitting requirements imposed by the California Air
Resources Board (GARB). Contractor shall specifically be aware of the CARB limits and
requirements' application to "portable equipment", which definition is considered by CARB to
include any item of equipment with a fuel -powered engine. Contractor shall indemnify City against
any fines or penalties imposed by CARB or any other governmental or regulatory agency for
violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others
for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.2.10.7 Water Qualitv.
(A) Manaaement and Compliance. To the extent applicable,
Contractor's Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the City's ordinances regulating discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground or
surface water in the State.
(B) Liability for Non -Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall
defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and
agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and
against any and all fines, penalties, claims or other regulatory requirements imposed as a result
of Contractor's non-compliance with the laws, regulations and policies described in this Section,
unless such non-compliance is the result of the sole established negligence, willful misconduct or
active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(C) Trainina.. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in this
Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by City, regarding the requirements of the laws, regulations and
policies described in this Section as they may relate to the Services provided under this
Agreement. Upon request, City will provide Contractor with a list of training programs that meet
the requirements of this paragraph.
3.2.11 Insurance.
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3.2.11.1 Minimum Requirements. Without limiting Contractor's
indemnification of City, and prior to commencement of Work, Contractor 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. The City's Risk Manager
may modify this requirement if it is determined that the Contractor will not be utilizing a vehicle in
the performance of his/her duties under this Agreement.
(A) General Liabilitv Insurance. Contractor 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 Liabilitv Insurance. Contractor 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 Contractor 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 Manager 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) Umbrella or Excess Liabilitv Insurance., Contractor may opt
to utilize umbrella or excess liability insurance in meeting insurance requirements. In such
circumstances, Contractor may 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:
(a) 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;
(b)
reimbursement;
(c)
policies; and
Pay on behalf of wording as opposed to
Concurrency of effective dates with primary
primary policies. (d) Policies shall "follow form" to the underlying
(e) Insureds under primary policies shall also
be insureds under the umbrella or excess policies.
(D) Workers' Compensation Insurance. Contractor shall
maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of
insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers,
agents, employees and volunteers.
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3.2.11.2 Other Provisions and Reauirements.
(A) Proof of Insurance. Contractor 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 contract.
City reserves the right to require complete, certified copies of all required insurance policies, at
any time.
(B) Duration of Coveraae. Contractor shall procure and
maintain for the duration of the contract insurance against claims for injuries to persons or
damages to property, which may arise from or in connection with the performance of the Work
hereunder by Contractor, his/her agents, representatives, employees or subconsultants.
(C) Primarv/Non-Contributina. Coverage provided by
Contractor 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 Riahts 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 Contractor, or City will
withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City
may cancel 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 Subroaation. All insurance coverage maintained
or procured pursuant to this agreement shall be endorsed to waive subrogation against the City
of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, or
shall specifically allow Contractor or others providing insurance evidence in compliance with these
specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own
right of recovery against the City of Palm Desert, its elected or appointed officers, agents, officials,
employees and volunteers and shall require similar written express waivers and insurance
clauses from each of its subcontractors.
(G) Enforcement of Contract Provisions (non estoppel).
Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to
inform Contractor of non-compliance with any requirement imposes no additional obligations on
the City nor does it waive any rights hereunder.
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(H) Reauirements Not Limitina. 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 Contractor maintains higher limits than the
minimums shown above, the City requires and shall be entitled to coverage for the higher limits
maintained by the Contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City.
(1) Notice of Cancellation. Contractor agrees to oblige its
insurance agent or broker and insurers to provide to 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 of Palm Desert and its officers, officials, employees, agents, and volunteers
shall be additional insureds under such policies. This provision shall also apply to any
excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coveraae 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 Contractor'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 Throuah Clause. Contractor agrees to ensure that its
sub -consultants, sub -contractors, and any other party involved with the project who is brought
onto or involved in the project by Contractor, provide the same minimum insurance coverage and
endorsements required of Contractor. Contractor 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. Contractor agrees that upon request, all agreements with
consultants, subcontractors, and others engaged in the project will be submitted to City for review.
(N) Citv's Riaht to Revise Specifications. The City or its Risk
Manager reserves the right at any time during the term of the contract to change the amounts and
types of insurance required by giving the Contractor ninety (90) days advance written notice of
such change. If such change results in substantial additional cost to the Contractor, the City and
Contractor may renegotiate Contractor's compensation. If the City reduces the insurance
requirements, the change shall go into effect immediately and require no advanced written notice.
(0) 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.
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(P) Timely Notice of Claims. Contractor shall give City prompt
and timely notice of claims made or suits instituted that arise out of or result from Contractor's
performance under this Agreement, and that involve or may involve coverage under any of the
required liability policies.
(Q) Additional Insurance. Contractor 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 work.
3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury
or damage to any person or property. In carrying out its Services, the Contractor 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. Safety precautions, where
applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Bonds.
3.2.13.1 Performance Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Performance Bond in the
amount of the total, not -to -exceed compensation indicated in this Agreement, and in a form
provided or approved by the City. If such bond is required, no payment will be made to Contractor
until it has been received and approved by the City.
3.2.13.2 Pavment Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount
of the total, not -to -exceed compensation indicated in this Agreement, and in a form provided or
approved by the City. If such bond is required, no payment will be made to Contractor until it has
been received and approved by the City.
3.2.13.3 Bond Provisions. Should, in City's sole opinion, any bond
become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace
the affected bond within 10 days of receiving notice from City. In the event the surety or
Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written
notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least
ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due
or will be made under this Agreement until any replacement bonds required by this Section are
accepted by the City. To the extent, if any, that the total compensation is increased in accordance
with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds
to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to
the City. To the extent available, the bonds shall further provide that no change or alteration of
the Agreement (including, without limitation, an increase in the total compensation, as referred to
above), extensions of time, or modifications of the time, terms, or conditions of payment to the
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Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City
may terminate this Agreement for cause.
3.2.13.4 Suretv Qualifications. Only bonds executed by an admitted
surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The
surety must be a California -admitted surety with a current A.M. Best's rating no less than A:VIII
and satisfactory to the City. If a California -admitted surety insurer issuing bonds does not meet
these requirements, the insurer will be considered qualified if it is in conformance with
Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the
City.
3.2.14 Accounting Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor 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. Contractor 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.
3.2.15 Work Sites.
3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are
to be performed and shall become acquainted with all conditions affecting the Services prior to
commencing the Services. Contractor shall make such examinations as it deems necessary to
determine the condition of the work sites, its accessibility to materials, workmen and equipment,
and to determine Contractor's ability to protect existing surface and subsurface
improvements. No claim for allowances —time or money —will be allowed as to such matters after
commencement of the Services.
3.2.15.2 Field Measurements. Contractor shall make field
measurements, verify field conditions and shall carefully compare such field measurements and
conditions and other information known to Contractor with the Contract Documents, including any
plans, specifications, or scope of work before commencing Services. Errors, inconsistencies or
omissions discovered shall be reported to the City immediately and prior to performing any
Services or altering the condition.
3.2.15.3 Hazardous Materials and Differing Conditions. Except as set
forth in the Special Conditions or Specifications, should Contractor encounter material reasonably
believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substance and
hazardous materials as defined in California state or federal law at the Site which have not been
rendered harmless, the Contractor shall immediately stop work at the affected area and shall
report the condition to the City in writing. The City shall contract for any services required to
directly remove and/or abate PCBs, hazardous substances, other toxic wastes and hazardous
materials, and shall not require the Contractor to subcontract for such services. The Services in
the affected area shall not thereafter be resumed except by written agreement of the City and
Contractor.
3.2.16 Loss and Damaoe. Contractor shall be responsible for all loss and damage
which may arise out of the nature of the Services agreed to herein, or from the action of the
elements, or from any unforeseen difficulties which may arise or be encountered in the
prosecution of the Services until the same is fully completed and accepted by City.
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3.2.17 Warrantv. Contractor warrants all Services under the Contract (which for
purposes of this Section shall be deemed to include unauthorized work which has not been
removed and any non -conforming materials incorporated into the work) to be of good quality and
free from any defective or faulty material and workmanship. Contractor agrees that for a period
of one year (or the period of time specified elsewhere in the Contract or in any guarantee or
warranty provided by any manufacturer or supplier of equipment or materials incorporated into
the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10)
days after being notified in writing by the City of any defect in the Services or non-conformance
of the Services to the Contract, commence and prosecute with due diligence all Services
necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act
sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its
sole cost and expense, repair and replace any portions of the work (or work of other contractors)
damaged by its defective Services or which becomes damaged in the course of repairing or
replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct
defective work shall be reinstated for an additional one-year period, commencing with the date of
acceptance of such corrected work. Contractor shall perform such tests as the City may require
to verify that any corrective actions, including, without limitation, redesign, repairs, and
replacements comply with the requirements of the Contract. All costs associated with such
corrective actions and testing, including the removal, replacement, and reinstitution of equipment
and materials necessary to gain access, shall be the sole responsibility of the Contractor. All
warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any
portion of the work, whether express or implied, are deemed to be obtained by Contractor for the
benefit of the City, regardless of whether or not such warranties and guarantees have been
transferred or assigned to the City by separate agreement and Contractor agrees to enforce such
warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails
to perform its obligations under this Section, or under any other warranty or guaranty under this
Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and
replace any defective or non -conforming work and any work damaged by such work or the
replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to
fully reimburse the City for any expenses incurred hereunder upon demand.
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 "C" attached hereto and incorporated herein by reference. The total compensation shall
not exceed Twenty -Five Thousand and 00/100 ($25,000.00) annually without written approval
of the City's City Manager. Extra Work may be authorized, as described below, and if authorized,
will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Pavment of Compensation. Contractor shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within thirty (30) days of receiving such statement,
review the statement and pay all approved charges thereon. Contractor shall submit its final
invoice to City within thirty (30) days from the last date of provided Services or termination in
accordance with section 3.4, and failure by the Contractor to submit a timely invoice shall
constitute a waiver of its right to final payment.
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3.3.3 Deductions. City may deduct or withhold, as applicable, from each
progress payment an amount necessary to protect City from loss because of: (1) stop payment
notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3)
sums representing expenses, losses, or damages as determined by the City, incurred by the City
for which Contractor is liable under the Agreement; and (4) any other sums which the City is
entitled to recover from Contractor under the terms of the Agreement or pursuant to state law,
including Section 1727 of the California Labor Code. The failure by the City to deduct any of
these sums from a progress payment shall not constitute a waiver of the City's right to such sums.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.5 Extra Work. At any time during the term of this Agreement, City may
request that Contractor 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.
Contractor shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.3.6 Prevailina Waqes. Contractor 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, and if the total compensation is
$15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall
provide Contractor with a copy of the prevailing rates of per diem wages in effect at the
commencement of this Agreement. Contractor 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 Contractor's principal
place of business and at the project site. Contractor shall defend, indemnify and hold the City, its
elected officials, officers, employees and agents free and harmless from any claim or liability
arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be
mandatory upon the Contractor and all subcontractors to comply with all California Labor Code
provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774
and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records
(Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815)
and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement
to submit certified payroll records directly to the Labor Commissioner under Labor Code section
1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the
small project exemption specified in Labor Code Section 1771.4.
3.3.7 Reaistration/DIR Compliance. If the Services are being performed as part
of an applicable "public works" or "maintenance" project, and if the total compensation is $15,000
or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all
subcontractors performing such Services must be registered with the Department of Industrial
Relations. Contractor shall maintain registration for the duration of the Project and require the
same of any subcontractors, as applicable. This Project may also be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's
sole responsibility to comply with all applicable registration and labor compliance requirements.
Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code
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Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is
exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and
1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or
any subcontractor that affect Contractor's performance of Services, including any delay, shall be
Contractor's sole responsibility. Any delay arising out of or resulting from such stop orders shall
be considered Contractor caused delay and shall not be compensable by the City. Contractor
shall defend, indemnify and hold the City, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of stop orders issued by the Department of
Industrial Relations against Contractor or any subcontractor.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. City may, by written notice to Contractor,
terminate the whole or any part of this Agreement at any time and without cause by giving written
notice to Contractor of such termination, and specifying the effective date thereof, at least seven
(7) days before the effective date of such termination. Upon termination, Contractor shall be
compensated only for those services which have been adequately rendered to City, and
Contractor shall be entitled to no further compensation. Contractor may not terminate this
Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Contractor to provide all finished or unfinished Documents and Data and other
information of any kind prepared by Contractor in connection with the performance of Services
under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 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.
3.5 General Provisions.
3.5.1 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:
Contractor:
Desert Air Conditioning, Inc.
590 Williams Road
Palm Springs, CA 92264
Attn: Todd Shaw
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City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Tom Garcia, Director of Public Works
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.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnitv. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, employees, agents and
authorized volunteers free and harmless from any and all claims, demands, causes of action,
suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements,
loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false,
fraudulent, or groundless, to property or persons, including wrongful death, (collectively, "Claims")
in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful
misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents
in connection with the performance of the Contractor's services, the Project or this Agreement,
including without limitation the payment of all damages, expert witness fees and attorneys' fees
and other related costs and expenses. Notwithstanding the foregoing, to the extent required by
Civil Code section 2782, Contractor's indemnity obligation shall not apply to liability for damages
for death or bodily injury to persons, injury to property, or any other loss, damage or expense
arising from the sole or active negligence or willful misconduct of the City or the City's agents,
servants, or independent contractors who are directly responsible to the City, or for defects in
design furnished by those persons.
3.5.2.2 Additional Indemnitv Obliqations. Contractor shall defend, with
counsel of City's choosing and at Contractor's own cost, expense and risk, any and all Claims
covered by this section that may be brought or instituted against City or its officials, employees,
agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment,
award or decree that may be rendered against City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall
also reimburse City for the cost of any settlement paid by City or its officials, employees, agents
and authorized volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for City's attorney's fees and costs, including expert witness
fees. Contractor shall reimburse City and its officials, employees, agents and authorized
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall
survive expiration or termination of this Agreement, and shall not be restricted to insurance
proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.
3.5.3 Governina Law; Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Riverside County. In
addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
Contractor must comply with the claim procedures set forth in Government Code sections 900 et
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seq. prior to filing any lawsuit against the City. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or
changed conditions have been followed by Contractor. If no such Government Code claim is
submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified
herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 Citv's Riaht to Emplov Other Contractors. City reserves right to employ
other contractors in connection with this Project.
3.5.6 Successors and Assiqns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.8 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 Contractor include all personnel, employees, agents, and subcontractors
of Contractor, except as otherwise specified in this Agreement. All references to City include its
elected officials, officers, employees, agents, and volunteers 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.
3.5.9 Amendment: Modification. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 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.
3.5.11 No Third Partv Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
3.5.12 Invaliditv: Severabilitv. 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.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
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for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the City's Filing Officer as required under state law in the performance of the
Services. 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.
3.5.14 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.
3.5.15 Authoritv to Enter Aareement. Contractor 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.
3.5.16 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.17 Entire Aareement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by both
parties.
[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND DESERT AIR CONDITIONING, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the 22ND
day of August, 2019.
CITY OF PALM DESERT DESERT AIR CONDITIONING, INC.
By:
LAURI AYLAIAN
CITY MANAGER By:
Its: President OR Vice President
Printed Name:
ATTEST:
By:
By:
City Clerk Its: Secretary OR Treasurer
Printed Name:
APPROVED AS TO FORM: Contractor's License Number and
Classification
By: Best Best &Krieger LLP DIR Registration Number (if applicable)
City Attorney
(BB&K 2018)-
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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.
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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
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-18-
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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
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-19-
EXHIBIT "A"
SCOPE OF SERVICES
MISCELLANEOUS HVAC SERVICES AND REPAIRS AS NEEDED AT VARIOUS CITY -
OWNED FACILITIES
(BB&K 2018)
Exhibit A-1
72500.00001\31605757.1 Rev 11-9-18
EXHIBIT "B"
SCHEDULE OF SERVICES
AS NEEDED, AS DIRECTED BY CITY STAFF
(BB&K 2018)
Exhibit B-1
72500.00001\31605757.1 Rev 11-9-18
Vendor
Desert Air Conditioning Inc.,
Palm Springs CA
EXHIBIT "C"
COMPENSATION
Hourly Rate After Hour Rate Weekend Rate
$98.00 $124.00 $138.00
MATERIALS REIMBURSED AT COST PLUS $15%
TOTAL AMOUNT NOT TO EXCEED $100,000
Exhibit C-1
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CONTRACT NO. C39150B
UTY Of PRIM DESERT
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
INFO@PALM-DESERT.ORG
CITY OF PALM DESERT
MAINTENANCE SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 22"d day of August, 2019, 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 Pacific West Air Conditioning, Inc.,
a corporation with its principal place of business at 4051 E. La Palma Avenue, Unit A Anaheim,
CA 92807 ("Contractor"). City and Contractor are sometimes individually referred to as "Party"
and collectively as "Parties" in this Agreement.
2. RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain
maintenance services required by the City on the terms and conditions set forth in this Agreement.
Contractor represents that it is experienced in providing HVAC services and repairs to public
clients, that it and its employees or subcontractors have all necessary licenses and permits to
perform the Services in the State of California, and that is familiar with the plans of City.
Contractor shall not subcontract any portion of the work 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.
2.2 Project.
City desires to engage Contractor to render such services for the Miscellaneous HVAC
Services and Repairs as Needed at Various City -owned Facilities project ("Project') as set
forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scone of Services. Contractor 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 professional HVAC services and repairs necessary
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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 August 1, 2019 to June
30, 2019, unless earlier terminated as provided herein. Contractor shall complete the Services
within the term of this Agreement, and shall meet any other established schedules and deadlines.
The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to
complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Pavment of Subordinates. Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine the
means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Contractor on an independent contractor basis and not as an employee.
Contractor retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Contractor shall also not be employees of City and shall at all times be under
Contractor's exclusive direction and control. Contractor 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. Contractor 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. Contractor shall perform the Services expeditiously,
within the term of this Agreement, and in accordance with the Schedule of Services set forth in
Exhibit "B" attached hereto and incorporated herein by reference. Contractor represents that it
has the professional and technical personnel required to perform the Services in conformance
with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall
respond to Contractor's submittals in a timely manner. Upon request of City, Contractor 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
Contractor shall be subject to the approval of City.
3.2.4 Citv's Representative. The City hereby designates Carlos Hernandez,
Facilities Manager, or his designee, to act as its representative for the performance of this
Agreement ("City's Representative"). City's Representative shall have the power to act on behalf
of the City for all purposes under this Agreement. Contractor shall not accept direction or orders
from any person other than the City's Representative or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Devin
Johnson, Project Manager, or his or her designee, to act as its representative for the
performance of this Agreement ("Contractor's Representative"). Contractor's Representative
shall have full authority to represent and act on behalf of the Contractor for all purposes under
this Agreement. The Contractor's Representative shall supervise and direct the Services, using
his best skill and attention, and shall be responsible for all means, methods, techniques,
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sequences and procedures and for the satisfactory coordination of all portions of the Services
under this Agreement.
3.2.6 Coordination of Services. Contractor 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.
3.2.7 Standard of Care: Performance of Employees. Contractor 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. Contractor represents and maintains that it is skilled in the professional calling
necessary to perform the Services. Contractor warrants that all employees and subcontractors
shall have sufficient skill and experience to perform the Services assigned to them. Finally,
Contractor represents that it, its employees and subcontractors have all licenses, permits,
qualifications and approvals of whatever nature that are legally required to perform the Services,
including a City Business License, and that such licenses and approvals shall be maintained
throughout the term of this Agreement. As provided for in the indemnification provisions of this
Agreement, Contractor 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
Contractor's failure to comply with the standard of care provided for herein. Any employee of the
Contractor or its sub -contractors 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 Contractor and shall not be
re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance. Contractor shall perform and complete all Services
under this Agreement within the term set forth in Section 3.1.2 above ("Performance Time").
Contractor shall 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 provided separately
in writing to the Contractor. Contractor agrees that if the Services are not completed within the
aforementioned Performance Time and/or pursuant to any such completion schedule or Project
milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged
and agreed that the City will suffer damage.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Contract,
Contractor shall continue to perform the Work while said dispute is decided by the City. If
Contractor disputes the City's decision, Contractor shall have such remedies as may be provided
by law.
3.2.10 Laws and Reaulations: Emplovee/Labor Certifications. Contractor 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, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for
all violations of such laws and regulations in connection with Services. If the Contractor performs
any work knowing it to be contrary to such laws, rules and regulations and without giving written
notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a
public entity of the State of California subject to certain provisions of the Health & Safety Code,
Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed
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that all provisions of the law applicable to the public contracts of a municipality are a part of this
Agreement to the same extent as though set forth herein and will be complied with. These include
but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours' labor
shall constitute a legal day's work and that no worker shall be permitted to work in excess of eight
(8) hours during any one calendar day except as permitted by law. Contractor shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out
of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10.1 Emplovment Eliaibilitv: Contractor. By executing this
Agreement, Contractor verifies 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. Such
requirements and restrictions include, but are not limited to, examination and retention of
documentation confirming the identity and immigration status of each employee of the Contractor.
Contractor also verifies 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. Contractor shall avoid any violation of
any such law during the term of this Agreement by participating in an electronic verification of
work authorization program operated by the United States Department of Homeland Security, by
participating in an equivalent federal work authorization program operated by the United States
Department of Homeland Security to verify information of newly hired employees, or by some
other legally acceptable method. Contractor shall maintain records of each such verification, and
shall make them available to the City or its representatives for inspection and copy at any time
during normal business hours. The City shall not be responsible for any costs or expenses related
to Contractor's compliance with the requirements provided for in Section 3.2.10 or any of its sub-
sections.
3.2.10.2 Emplovment Eliaibilitv; Subcontractors. Sub -subcontractors and
Consultants. To the same extent and under the same conditions as Contractor, Contractor shall
require all of its subcontractors, sub -subcontractors and consultants performing any work relating
to the Project or this Agreement to make the same verifications and comply with all requirements
and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Emplovment Eliaibilitv: Failure to Comolv. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the City to terminate
the Agreement for cause: (1) failure of Contractor or its subcontractors, sub -subcontractors or
consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any
misrepresentation or material omission concerning compliance with such requirements (including
in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to
immediately remove from the Project any person found not to be in compliance with such
requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
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 Workers' 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.
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3.2.10.5 Eaual Opportunity Emplovment. Contractor represents that it is
an equal opportunity employer and it shall not discriminate against any subcontractor, 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. Contractor 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.
3.2.10.6 Air Quality. Contractor must fully comply with all applicable laws,
rules and regulations in furnishing or using equipment and/or providing services, including, but
not limited to, emissions limits and permitting requirements imposed by the California Air
Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and
requirements' application to "portable equipment", which definition is considered by CARB to
include any item of equipment with a fuel -powered engine. Contractor shall indemnify City against
any fines or penalties imposed by CARB or any other governmental or regulatory agency for
violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others
for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.2.10.7 Water Quality.
(A) Management and Compliance. To the extent applicable,
Contractor's Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the City's ordinances regulating discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground or
surface water in the State.
(B) Liability for Non -Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall
defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and
agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and
against any and all fines, penalties, claims or other regulatory requirements imposed as a result
of Contractor's non-compliance with the laws, regulations and policies described in this Section,
unless such non-compliance is the result of the sole established negligence, willful misconduct or
active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(C) Traininq. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in this
Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by City, regarding the requirements of the laws, regulations and
policies described in this Section as they may relate to the Services provided under this
Agreement. Upon request, City will provide Contractor with a list of training programs that meet
the requirements of this paragraph.
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3.2.11 Insurance.
3.2.11.1 Minimum Reauirements. Without limiting Contractor's
indemnification of City, and prior to commencement of Work, Contractor 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. The City's Risk Manager
may modify this requirement if it is determined that the Contractor will not be utilizing a vehicle in
the performance of his/her duties under this Agreement.
(A) General Liabilitv Insurance. Contractor 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. Contractor 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 Contractor 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 Manager 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) Umbrella or Excess Liability Insurance. Contractor may opt
to utilize umbrella or excess liability insurance in meeting insurance requirements. In such
circumstances, Contractor may 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:
(a) 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;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall "follow form" to the underlying
primary policies.
(e) Insureds under primary policies shall also
be insureds under the umbrella or excess policies.
(D) Workers' Compensation Insurance., Contractor shall
maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of
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insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers,
agents, employees and volunteers.
3.2.11.2 Other Provisions and Reauirements.
(A) Proof of Insurance. Contractor 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 contract.
City reserves the right to require complete, certified copies of all required insurance policies, at
any time.
(B) Duration of Coveraae. Contractor shall procure and
maintain for the duration of the contract insurance against claims for injuries to persons or
damages to property, which may arise from or in connection with the performance of the Work
hereunder by Contractor, his/her agents, representatives, employees or subconsultants.
(C) Primarv/Non-Contributina. Coverage provided by
Contractor 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 Riahts 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 Contractor, or City will
withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City
may cancel 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 VI (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 Subroaation. All insurance coverage maintained
or procured pursuant to this agreement shall be endorsed to waive subrogation against the City
of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, or
shall specifically allow Contractor or others providing insurance evidence in compliance with these
specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own
right of recovery against the City of Palm Desert, its elected or appointed officers, agents, officials,
employees and volunteers and shall require similar written express waivers and insurance
clauses from each of its subcontractors.
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(G) Enforcement of Contract Provisions (non estoppel).
Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to
inform Contractor of non-compliance with any requirement imposes no additional obligations on
the City nor does it waive any rights hereunder.
(H) Reauirements Not Limitina. 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 Contractor maintains higher limits than the
minimums shown above, the City requires and shall be entitled to coverage for the higher limits
maintained by the Contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City.
(1) Notice of Cancellation. Contractor agrees to oblige its
insurance agent or broker and insurers to provide to 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 of Palm Desert and its officers, officials, employees, agents, and volunteers
shall be additional insureds under such policies. This provision shall also apply to any
excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coveraae 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 Contractor'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 Throuah Clause. Contractor agrees to ensure that its
sub -consultants, sub -contractors, and any other party involved with the project who is brought
onto or involved in the project by Contractor, provide the same minimum insurance coverage and
endorsements required of Contractor. Contractor 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. Contractor agrees that upon request, all agreements with
consultants, subcontractors, and others engaged in the project will be submitted to City for review.
(N) Citv's Riaht to Revise Specifications. The City or its Risk
Manager reserves the right at any time during the term of the contract to change the amounts and
types of insurance required by giving the Contractor ninety (90) days advance written notice of
such change. If such change results in substantial additional cost to the Contractor, the City and
Contractor may renegotiate Contractor's compensation. If the City reduces the insurance
requirements, the change shall go into effect immediately and require no advanced written notice.
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(0) 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. Contractor shall give City prompt
and timely notice of claims made or suits instituted that arise out of or result from Contractor's
performance under this Agreement, and that involve or may involve coverage under any of the
required liability policies.
(Q) Additional Insurance. Contractor 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 work.
3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury
or damage to any person or property. In carrying out its Services, the Contractor 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. Safety precautions, where
applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Bonds.
3.2.13.1 Performance Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Performance Bond in the
amount of the total, not -to -exceed compensation indicated in this Agreement, and in a form
provided or approved by the City. If such bond is required, no payment will be made to Contractor
until it has been received and approved by the City.
3.2.13.2 Pavment Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount
of the total, not -to -exceed compensation indicated in this Agreement, and in a form provided or
approved by the City. If such bond is required, no payment will be made to Contractor until it has
been received and approved by the City.
3.2.13.3 Bond Provisions. Should, in City's sole opinion, any bond
become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace
the affected bond within 10 days of receiving notice from City. In the event the surety or
Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written
notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least
ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due
or will be made under this Agreement until any replacement bonds required by this Section are
accepted by the City. To the extent, if any, that the total compensation is increased in accordance
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with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds
to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to
the City. To the extent available, the bonds shall further provide that no change or alteration of
the Agreement (including, without limitation, an increase in the total compensation, as referred to
above), extensions of time, or modifications of the time, terms, or conditions of payment to the
Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City
may terminate this Agreement for cause.
3.2.13.4 Suretv Qualifications. Only bonds executed by an admitted
surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The
surety must be a California -admitted surety with a current A.M. Best's rating no less than A:VIII
and satisfactory to the City. If a California -admitted surety insurer issuing bonds does not meet
these requirements, the insurer will be considered qualified if it is in conformance with
Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the
City.
3.2.14 Accountina Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor 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. Contractor 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.
3.2.15 Work Sites.
3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are
to be performed and shall become acquainted with all conditions affecting the Services prior to
commencing the Services. Contractor shall make such examinations as it deems necessary to
determine the condition of the work sites, its accessibility to materials, workmen and equipment,
and to determine Contractor's ability to protect existing surface and subsurface
improvements. No claim for allowances —time or money —will be allowed as to such matters after
commencement of the Services.
3.2.15.2 Field Measurements. Contractor shall make field
measurements, verify field conditions and shall carefully compare such field measurements and
conditions and other information known to Contractor with the Contract Documents, including any
plans, specifications, or scope of work before commencing Services. Errors, inconsistencies or
omissions discovered shall be reported to the City immediately and prior to performing any
Services or altering the condition.
3.2.15.3 Hazardous Materials and Differina Conditions. Except as set
forth in the Special Conditions or Specifications, should Contractor encounter material reasonably
believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substance and
hazardous materials as defined in California state or federal law at the Site which have not been
rendered harmless, the Contractor shall immediately stop work at the affected area and shall
report the condition to the City in writing. The City shall contract for any services required to
directly remove and/or abate PCBs, hazardous substances, other toxic wastes and hazardous
materials, and shall not require the Contractor to subcontract for such services. The Services in
the affected area shall not thereafter be resumed except by written agreement of the City and
Contractor.
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3.2.16 Loss and Damaae. Contractor shall be responsible for all loss and damage
which may arise out of the nature of the Services agreed to herein, or from the action of the
elements, or from any unforeseen difficulties which may arise or be encountered in the
prosecution of the Services until the same is fully completed and accepted by City.
3.2.17 Warrantv. Contractor warrants all Services under the Contract (which for
purposes of this Section shall be deemed to include unauthorized work which has not been
removed and any non -conforming materials incorporated into the work) to be of good quality and
free from any defective or faulty material and workmanship. Contractor agrees that for a period
of one year (or the period of time specified elsewhere in the Contract or in any guarantee or
warranty provided by any manufacturer or supplier of equipment or materials incorporated into
the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10)
days after being notified in writing by the City of any defect in the Services or non-conformance
of the Services to the Contract, commence and prosecute with due diligence all Services
necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act
sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its
sole cost and expense, repair and replace any portions of the work (or work of other contractors)
damaged by its defective Services or which becomes damaged in the course of repairing or
replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct
defective work shall be reinstated for an additional one-year period, commencing with the date of
acceptance of such corrected work. Contractor shall perform such tests as the City may require
to verify that any corrective actions, including, without limitation, redesign, repairs, and
replacements comply with the requirements of the Contract. All costs associated with such
corrective actions and testing, including the removal, replacement, and reinstitution of equipment
and materials necessary to gain access, shall be the sole responsibility of the Contractor. All
warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any
portion of the work, whether express or implied, are deemed to be obtained by Contractor for the
benefit of the City, regardless of whether or not such warranties and guarantees have been
transferred or assigned to the City by separate agreement and Contractor agrees to enforce such
warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails
to perform its obligations under this Section, or under any other warranty or guaranty under this
Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and
replace any defective or non -conforming work and any work damaged by such work or the
replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to
fully reimburse the City for any expenses incurred hereunder upon demand.
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 "C" attached hereto and incorporated herein by reference. The total compensation shall
not exceed Twenty -Five Thousand and 00/100 ($25,000.00) annually without written approval
of the City's City Manager. Extra Work may be authorized, as described below, and if authorized,
will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Pavment of Compensation. Contractor shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within thirty (30) days of receiving such statement,
review the statement and pay all approved charges thereon. Contractor shall submit its final
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invoice to City within thirty (30) days from the last date of provided Services or termination in
accordance with section 3.4, and failure by the Contractor to submit a timely invoice shall
constitute a waiver of its right to final payment.
3.3.3 Deductions. City may deduct or withhold, as applicable, from each
progress payment an amount necessary to protect City from loss because of: (1) stop payment
notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3)
sums representing expenses, losses, or damages as determined by the City, incurred by the City
for which Contractor is liable under the Agreement; and (4) any other sums which the City is
entitled to recover from Contractor under the terms of the Agreement or pursuant to state law,
including Section 1727 of the California Labor Code. The failure by the City to deduct any of
these sums from a progress payment shall not constitute a waiver of the City's right to such sums.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.5 Extra Work. At any time during the term of this Agreement, City may
request that Contractor 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.
Contractor shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.3.6 Prevailina Waaes. Contractor is aware of the requirements of California
Labor Code Section 1720, et seg., and 1770, et seg., 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, and if the total compensation is
$15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall
provide Contractor with a copy of the prevailing rates of per diem wages in effect at the
commencement of this Agreement. Contractor 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 Contractor's principal
place of business and at the project site. Contractor shall defend, indemnify and hold the City, its
elected officials, officers, employees and agents free and harmless from any claim or liability
arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be
mandatory upon the Contractor and all subcontractors to comply with all California Labor Code
provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774
and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records
(Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815)
and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement
to submit certified payroll records directly to the Labor Commissioner under Labor Code section
1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the
small project exemption specified in Labor Code Section 1771.4.
3.3.7 Registration/DIR Compliance. If the Services are being performed as part
of an applicable "public works" or "maintenance" project, and if the total compensation is $15,000
or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all
subcontractors performing such Services must be registered with the Department of Industrial
Relations. Contractor shall maintain registration for the duration of the Project and require the
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same of any subcontractors, as applicable. This Project may also be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's
sole responsibility to comply with all applicable registration and labor compliance requirements.
Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code
Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is
exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and
1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or
any subcontractor that affect Contractor's performance of Services, including any delay, shall be
Contractor's sole responsibility. Any delay arising out of or resulting from such stop orders shall
be considered Contractor caused delay and shall not be compensable by the City. Contractor
shall defend, indemnify and hold the City, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of stop orders issued by the Department of
Industrial Relations against Contractor or any subcontractor.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. City may, by written notice to Contractor,
terminate the whole or any part of this Agreement at any time and without cause by giving written
notice to Contractor of such termination, and specifying the effective date thereof, at least seven
(7) days before the effective date of such termination. Upon termination, Contractor shall be
compensated only for those services which have been adequately rendered to City, and
Contractor shall be entitled to no further compensation. Contractor may not terminate this
Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Contractor to provide all finished or unfinished Documents and Data and other
information of any kind prepared by Contractor in connection with the performance of Services
under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 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.
3.5 General Provisions.
3.5.1 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:
Contractor:
Pacific West Air Conditioning, Inc.
4051 E. La Palma Avenue, Unit A
Anaheim, CA 92807
Attn: Devin Johnson, Project Manager
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City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Tom Garcia, Director of Public Works
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.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnitv. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, employees, agents and
authorized volunteers free and harmless from any and all claims, demands, causes of action,
suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements,
loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false,
fraudulent, or groundless, to property or persons, including wrongful death, (collectively, "Claims")
in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful
misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents
in connection with the performance of the Contractor's services, the Project or this Agreement,
including without limitation the payment of all damages, expert witness fees and attorneys' fees
and other related costs and expenses. Notwithstanding the foregoing, to the extent required by
Civil Code section 2782, Contractor's indemnity obligation shall not apply to liability for damages
for death or bodily injury to persons, injury to property, or any other loss, damage or expense
arising from the sole or active negligence or willful misconduct of the City or the City's agents,
servants, or independent contractors who are directly responsible to the City, or for defects in
design furnished by those persons.
3.5.2.2 Additional Indemnitv Obligations. Contractor shall defend, with
counsel of City's choosing and at Contractor's own cost, expense and risk, any and all Claims
covered by this section that may be brought or instituted against City or its officials, employees,
agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment,
award or decree that may be rendered against City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall
also reimburse City for the cost of any settlement paid by City or its officials, employees, agents
and authorized volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for City's attorney's fees and costs, including expert witness
fees. Contractor shall reimburse City and its officials, employees, agents and authorized
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall
survive expiration or termination of this Agreement, and shall not be restricted to insurance
proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.
3.5.3 Governing Law: Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Riverside County. In
addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
Contractor must comply with the claim procedures set forth in Government Code sections 900 et
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seq. prior to filing any lawsuit against the City. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or
changed conditions have been followed by Contractor. If no such Government Code claim is
submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified
herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 Citv's Riaht to Emplov Other Contractors. City reserves right to employ
other contractors in connection with this Project.
3.5.6 Successors and Assians. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.7 Assianment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.8 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 Contractor include all personnel, employees, agents, and subcontractors
of Contractor, except as otherwise specified in this Agreement. All references to City include its
elected officials, officers, employees, agents, and volunteers 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.
3.5.9 Amendment: Modification. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 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.
3.5.11 No Third Partv Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
3.5.12 Invaliditv: Severabilitv. 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.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
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for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the City's Filing Officer as required under state law in the performance of the
Services. 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.
3.5.14 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.
3.5.15 Authoritv to Enter Aareement. Contractor 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.
3.5.16 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.17 Entire Aareement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by both
parties.
[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND PACIFIC WEST AIR CONDITIONING, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the 22ND
day of August, 2019.
CITY OF PALM DESERT
By:
LAURI AYLAIAN
CITY MANAGER
ATTEST:
City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney
PACIFIC WEST AIR CONDITIONING, INC.
M
Its: President OR Vice President
Printed Name:
L-
Its: Secretary OR Treasurer
Printed Name:
Contractor's License Number and
Classification
DIR Registration Number (if applicable)
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-17-
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.
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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
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-18-
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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
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-19-
EXHIBIT "A"
SCOPE OF SERVICES
MISCELLANEOUS HVAC SERVICES AND REPAIRS AS NEEDED AT VARIOUS CITY -
OWNED FACILITIES
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Exhibit A-1
72500.00001\31605757.1 Rev 11-9-18
EXHIBIT "B"
SCHEDULE OF SERVICES
AS NEEDED, AS DIRECTED BY CITY STAFF
(BB&K 2018)
Exhibit B-1
72500.00001\31605757.1 Rev 11-9-18
EXHIBIT "C"
COMPENSATION
Vendor Hourly Rate After Hour Rate Weekend Rate
Desert Air Conditioning Inc., $98 00 $124.00 $138.00
Palm Springs CA
MATERIALS REIMBURSED AT COST PLUS $15%
TOTAL AMOUNT NOT TO EXCEED $100,000
Exhibit C-1
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72500.00001\31605757.1 Rev 11-9-18
CONTRACT NO. C39150C
(IT Y Of P A I M DESERT
73-510 FRED WARiNG DRrvE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
INFO@A PALM-DESERT.ORG
CITY OF PALM DESERT
MAINTENANCE SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 22"d day of August, 2019, 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 Hugh Hoard, Inc., a corporation with
its principal place of business at 74-991 Joni Drive, #20, CA 92260 ("Contractor"). City and
Contractor are sometimes individually referred to as "Party" and collectively as "Parties" in this
Agreement.
2. RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain
maintenance services required by the City on the terms and conditions set forth in this Agreement.
Contractor represents that it is experienced in providing HVAC services and repairs to public
clients, that it and its employees or subcontractors have all necessary licenses and permits to
perform the Services in the State of California, and that is familiar with the plans of City.
Contractor shall not subcontract any portion of the work 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.
2.2 Project.
City desires to engage Contractor to render such services for the Miscellaneous HVAC
Services and Repairs as Needed at Various City -owned Facilities project ("Project') as set
forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor 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 professional HVAC services and repairs necessary
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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 August 1, 2019 to June
30, 2019, unless earlier terminated as provided herein. Contractor shall complete the Services
within the term of this Agreement, and shall meet any other established schedules and deadlines.
The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to
complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Pavment of Subordinates: Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine the
means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Contractor on an independent contractor basis and not as an employee.
Contractor retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Contractor shall also not be employees of City and shall at all times be under
Contractor's exclusive direction and control. Contractor 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. Contractor 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. Contractor shall perform the Services expeditiously,
within the term of this Agreement, and in accordance with the Schedule of Services set forth in
Exhibit "B" attached hereto and incorporated herein by reference. Contractor represents that it
has the professional and technical personnel required to perform the Services in conformance
with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall
respond to Contractor's submittals in a timely manner. Upon request of City, Contractor shall
provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Reauirements. All work prepared by
Contractor shall be subject to the approval of City.
3.2.4 City's Representative. The City hereby designates Carlos Hernandez,
Facilities Manager, or his designee, to act as its representative for the performance of this
Agreement ("City's Representative"). City's Representative shall have the power to act on behalf
of the City for all purposes under this Agreement. Contractor shall not accept direction or orders
from any person other than the City's Representative or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Cary Best, or
his or her designee, to act as its representative for the performance of this Agreement
("Contractor's Representative"). Contractor's Representative shall have full authority to represent
and act on behalf of the Contractor for all purposes under this Agreement. The Contractor's
Representative shall supervise and direct the Services, using his 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.
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3.2.6 Coordination of Services. Contractor 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.
3.2.7 Standard of Care: Performance of Emplovees. Contractor 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. Contractor represents and maintains that it is skilled in the professional calling
necessary to perform the Services. Contractor warrants that all employees and subcontractors
shall have sufficient skill and experience to perform the Services assigned to them. Finally,
Contractor represents that it, its employees and subcontractors have all licenses, permits,
qualifications and approvals of whatever nature that are legally required to perform the Services,
including a City Business License, and that such licenses and approvals shall be maintained
throughout the term of this Agreement. As provided for in the indemnification provisions of this
Agreement, Contractor 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
Contractor's failure to comply with the standard of care provided for herein. Any employee of the
Contractor or its sub -contractors 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 Contractor and shall not be
re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance. Contractor shall perform and complete all Services
under this Agreement within the term set forth in Section 3.1.2 above ("Performance Time").
Contractor shall 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 provided separately
in writing to the Contractor. Contractor agrees that if the Services are not completed within the
aforementioned Performance Time and/or pursuant to any such completion schedule or Project
milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged
and agreed that the City will suffer damage.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Contract,
Contractor shall continue to perform the Work while said dispute is decided by the City. If
Contractor disputes the City's decision, Contractor shall have such remedies as may be provided
by law.
3.2.10 Laws and Regulations: Emplovee/Labor Certifications. Contractor 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, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for
all violations of such laws and regulations in connection with Services. If the Contractor performs
any work knowing it to be contrary to such laws, rules and regulations and without giving written
notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a
public entity of the State of California subject to certain provisions of the Health & Safety Code,
Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed
that all provisions of the law applicable to the public contracts of a municipality are a part of this
Agreement to the same extent as though set forth herein and will be complied with. These include
but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours' labor
(BB&K 2018) - 3 -
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shall constitute a legal day's work and that no worker shall be permitted to work in excess of eight
(8) hours during any one calendar day except as permitted by law. Contractor shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out
of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10.1 Emplovment Eligibility: Contractor. By executing this
Agreement, Contractor verifies 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. Such
requirements and restrictions include, but are not limited to, examination and retention of
documentation confirming the identity and immigration status of each employee of the Contractor.
Contractor also verifies 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. Contractor shall avoid any violation of
any such law during the term of this Agreement by participating in an electronic verification of
work authorization program operated by the United States Department of Homeland Security, by
participating in an equivalent federal work authorization program operated by the United States
Department of Homeland Security to verify information of newly hired employees, or by some
other legally acceptable method. Contractor shall maintain records of each such verification, and
shall make them available to the City or its representatives for inspection and copy at any time
during normal business hours. The City shall not be responsible for any costs or expenses related
to Contractor's compliance with the requirements provided for in Section 3.2.10 or any of its sub-
sections.
3.2.10.2 Emplovment Eligibility: Subcontractors. Sub -subcontractors and
Consultants. To the same extent and under the same conditions as Contractor, Contractor shall
require all of its subcontractors, sub -subcontractors and consultants performing any work relating
to the Project or this Agreement to make the same verifications and comply with all requirements
and restrictions provided for in Section 3.2.10.1.
3.2.10.3 Emplovment Eligibility: Failure to ComolV. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the City to terminate
the Agreement for cause: (1) failure of Contractor or its subcontractors, sub -subcontractors or
consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any
misrepresentation or material omission concerning compliance with such requirements (including
in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to
immediately remove from the Project any person found not to be in compliance with such
requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
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 Workers' 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.
3.2.10.5 Equal Opportunity Emplovment. Contractor represents that it is
an equal opportunity employer and it shall not discriminate against any subcontractor, 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
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initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or
termination. Contractor 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.
3.2.10.6 Air Qualitv. Contractor must fully comply with all applicable laws,
rules and regulations in furnishing or using equipment and/or providing services, including, but
not limited to, emissions limits and permitting requirements imposed by the California Air
Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and
requirements' application to "portable equipment", which definition is considered by CARB to
include any item of equipment with a fuel -powered engine. Contractor shall indemnify City against
any fines or penalties imposed by CARB or any other governmental or regulatory agency for
violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others
for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.2.10.7 Water Qualitv.
(A) Management and Compliance. To the extent applicable,
Contractor's Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the City's ordinances regulating discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground or
surface water in the State.
(B) Liability for Non -Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall
defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and
agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and
against any and all fines, penalties, claims or other regulatory requirements imposed as a result
of Contractor's non-compliance with the laws, regulations and policies described in this Section,
unless such non-compliance is the result of the sole established negligence, willful misconduct or
active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(C) Traininq. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in this
Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by City, regarding the requirements of the laws, regulations and
policies described in this Section as they may relate to the Services provided under this
Agreement. Upon request, City will provide Contractor with a list of training programs that meet
the requirements of this paragraph.
3.2.11 Insurance.
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3.2.11.1 Minimum Reauirements. Without limiting Contractor's
indemnification of City, and prior to commencement of Work, Contractor 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. The City's Risk Manager
may modify this requirement if it is determined that the Contractor will not be utilizing a vehicle in
the performance of his/her duties under this Agreement.
(A) General Liabilitv Insurance. Contractor 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 Liabilitv Insurance. Contractor 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 Contractor 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 Manager 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) Umbrella or Excess Liabilitv Insurance. Contractor may opt
to utilize umbrella or excess liability insurance in meeting insurance requirements. In such
circumstances, Contractor may 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:
(a) 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;
(b) Pay on behalf of wording as opposed to
reimbursement;
policies; and
(c) Concurrency of effective dates with primary
(d) Policies shall "follow form" to the underlying
primary policies.
(e) Insureds under primary policies shall also
be insureds under the umbrella or excess policies.
(D) Workers' Compensation Insurance. Contractor shall
maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of
insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers,
agents, employees and volunteers.
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3.2.11.2 Other Provisions and Requirements.
(A) Proof of Insurance. Contractor 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 contract.
City reserves the right to require complete, certified copies of all required insurance policies, at
any time.
(B) Duration of Coveraae. Contractor shall procure and
maintain for the duration of the contract insurance against claims for injuries to persons or
damages to property, which may arise from or in connection with the performance of the Work
hereunder by Contractor, his/her agents, representatives, employees or subconsultants.
(C) Primarv/Non-Contributina. Coverage provided by
Contractor 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) Citv's Riahts 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 Contractor, or City will
withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City
may cancel 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 VI (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 Subroaation. All insurance coverage maintained
or procured pursuant to this agreement shall be endorsed to waive subrogation against the City
of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, or
shall specifically allow Contractor or others providing insurance evidence in compliance with these
specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own
right of recovery against the City of Palm Desert, its elected or appointed officers, agents, officials,
employees and volunteers and shall require similar written express waivers and insurance
clauses from each of its subcontractors.
(G) Enforcement of Contract Provisions (non estODDel).
Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to
inform Contractor of non-compliance with any requirement imposes no additional obligations on
the City nor does it waive any rights hereunder.
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(H) Requirements Not Limitina. 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 Contractor maintains higher limits than the
minimums shown above, the City requires and shall be entitled to coverage for the higher limits
maintained by the Contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City.
(1) Notice of Cancellation. Contractor agrees to oblige its
insurance agent or broker and insurers to provide to 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 of Palm Desert and its officers, officials, employees, agents, and volunteers
shall be additional insureds under such policies. This provision shall also apply to any
excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coveraae 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 Contractor'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 Throuah Clause. Contractor agrees to ensure that its
sub -consultants, sub -contractors, and any other party involved with the project who is brought
onto or involved in the project by Contractor, provide the same minimum insurance coverage and
endorsements required of Contractor. Contractor 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. Contractor agrees that upon request, all agreements with
consultants, subcontractors, and others engaged in the project will be submitted to City for review.
(N) Citv's Riaht to Revise Specifications. The City or its Risk
Manager reserves the right at any time during the term of the contract to change the amounts and
types of insurance required by giving the Contractor ninety (90) days advance written notice of
such change. If such change results in substantial additional cost to the Contractor, the City and
Contractor may renegotiate Contractor's compensation. If the City reduces the insurance
requirements, the change shall go into effect immediately and require no advanced written notice.
(0) 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.
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(P) Timely Notice of Claims. Contractor shall give City prompt
and timely notice of claims made or suits instituted that arise out of or result from Contractor's
performance under this Agreement, and that involve or may involve coverage under any of the
required liability policies.
(Q) Additional Insurance. Contractor 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 work.
3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury
or damage to any person or property. In carrying out its Services, the Contractor 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. Safety precautions, where
applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Bonds.
3.2.13.1 Performance Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Performance Bond in the
amount of the total, not -to -exceed compensation indicated in this Agreement, and in a form
provided or approved by the City. If such bond is required, no payment will be made to Contractor
until it has been received and approved by the City.
3.2.13.2 Pavment Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount
of the total, not -to -exceed compensation indicated in this Agreement, and in a form provided or
approved by the City. If such bond is required, no payment will be made to Contractor until it has
been received and approved by the City.
3.2.13.3 Bond Provisions. Should, in City's sole opinion, any bond
become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace
the affected bond within 10 days of receiving notice from City. In the event the surety or
Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written
notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least
ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due
or will be made under this Agreement until any replacement bonds required by this Section are
accepted by the City. To the extent, if any, that the total compensation is increased in accordance
with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds
to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to
the City. To the extent available, the bonds shall further provide that no change or alteration of
the Agreement (including, without limitation, an increase in the total compensation, as referred to
above), extensions of time, or modifications of the time, terms, or conditions of payment to the
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Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City
may terminate this Agreement for cause.
3.2.13.4 Suretv Qualifications. Only bonds executed by an admitted
surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The
surety must be a California -admitted surety with a current A.M. Best's rating no less than A:VIII
and satisfactory to the City. If a California -admitted surety insurer issuing bonds does not meet
these requirements, the insurer will be considered qualified if it is in conformance with
Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the
City.
3.2.14 Accountina Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor 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. Contractor 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.
3.2.15 Work Sites.
3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are
to be performed and shall become acquainted with all conditions affecting the Services prior to
commencing the Services. Contractor shall make such examinations as it deems necessary to
determine the condition of the work sites, its accessibility to materials, workmen and equipment,
and to determine Contractor's ability to protect existing surface and subsurface
improvements. No claim for allowances —time or money —will be allowed as to such matters after
commencement of the Services.
3.2.15.2 Field Measurements. Contractor shall make field
measurements, verify field conditions and shall carefully compare such field measurements and
conditions and other information known to Contractor with the Contract Documents, including any
plans, specifications, or scope of work before commencing Services. Errors, inconsistencies or
omissions discovered shall be reported to the City immediately and prior to performing any
Services or altering the condition.
3.2.15.3 Hazardous Materials and Differina Conditions. Except as set
forth in the Special Conditions or Specifications, should Contractor encounter material reasonably
believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substance and
hazardous materials as defined in California state or federal law at the Site which have not been
rendered harmless, the Contractor shall immediately stop work at the affected area and shall
report the condition to the City in writing. The City shall contract for any services required to
directly remove and/or abate PCBs, hazardous substances, other toxic wastes and hazardous
materials, and shall not require the Contractor to subcontract for such services. The Services in
the affected area shall not thereafter be resumed except by written agreement of the City and
Contractor.
3.2.16 Loss and Damaae. Contractor shall be responsible for all loss and damage
which may arise out of the nature of the Services agreed to herein, or from the action of the
elements, or from any unforeseen difficulties which may arise or be encountered in the
prosecution of the Services until the same is fully completed and accepted by City.
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3.2.17 Warrantv. Contractor warrants all Services under the Contract (which for
purposes of this Section shall be deemed to include unauthorized work which has not been
removed and any non -conforming materials incorporated into the work) to be of good quality and
free from any defective or faulty material and workmanship. Contractor agrees that for a period
of one year (or the period of time specified elsewhere in the Contract or in any guarantee or
warranty provided by any manufacturer or supplier of equipment or materials incorporated into
the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10)
days after being notified in writing by the City of any defect in the Services or non-conformance
of the Services to the Contract, commence and prosecute with due diligence all Services
necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act
sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its
sole cost and expense, repair and replace any portions of the work (or work of other contractors)
damaged by its defective Services or which becomes damaged in the course of repairing or
replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct
defective work shall be reinstated for an additional one-year period, commencing with the date of
acceptance of such corrected work. Contractor shall perform such tests as the City may require
to verify that any corrective actions, including, without limitation, redesign, repairs, and
replacements comply with the requirements of the Contract. All costs associated with such
corrective actions and testing, including the removal, replacement, and reinstitution of equipment
and materials necessary to gain access, shall be the sole responsibility of the Contractor. All
warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any
portion of the work, whether express or implied, are deemed to be obtained by Contractor for the
benefit of the City, regardless of whether or not such warranties and guarantees have been
transferred or assigned to the City by separate agreement and Contractor agrees to enforce such
warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails
to perform its obligations under this Section, or under any other warranty or guaranty under this
Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and
replace any defective or non -conforming work and any work damaged by such work or the
replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to
fully reimburse the City for any expenses incurred hereunder upon demand.
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 "C" attached hereto and incorporated herein by reference. The total compensation shall
not exceed Twenty -Five Thousand and 00/100 ($25,000.00) annually without written approval
of the City's City Manager. Extra Work may be authorized, as described below, and if authorized,
will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Pavment of Compensation. Contractor shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within thirty (30) days of receiving such statement,
review the statement and pay all approved charges thereon. Contractor shall submit its final
invoice to City within thirty (30) days from the last date of provided Services or termination in
accordance with section 3.4, and failure by the Contractor to submit a timely invoice shall
constitute a waiver of its right to final payment.
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3.3.3 Deductions. City may deduct or withhold, as applicable, from each
progress payment an amount necessary to protect City from loss because of: (1) stop payment
notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3)
sums representing expenses, losses, or damages as determined by the City, incurred by the City
for which Contractor is liable under the Agreement; and (4) any other sums which the City is
entitled to recover from Contractor under the terms of the Agreement or pursuant to state law,
including Section 1727 of the California Labor Code. The failure by the City to deduct any of
these sums from a progress payment shall not constitute a waiver of the City's right to such sums.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.5 Extra Work. At any time during the term of this Agreement, City may
request that Contractor 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.
Contractor shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.3.6 Prevailina Waaes. Contractor 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, and if the total compensation is
$15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall
provide Contractor with a copy of the prevailing rates of per diem wages in effect at the
commencement of this Agreement. Contractor 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 Contractor's principal
place of business and at the project site. Contractor shall defend, indemnify and hold the City, its
elected officials, officers, employees and agents free and harmless from any claim or liability
arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be
mandatory upon the Contractor and all subcontractors to comply with all California Labor Code
provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774
and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records
(Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815)
and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement
to submit certified payroll records directly to the Labor Commissioner under Labor Code section
1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the
small project exemption specified in Labor Code Section 1771.4.
3.3.7 Reaistration/DIR Compliance. If the Services are being performed as part
of an applicable "public works" or "maintenance" project, and if the total compensation is $15,000
or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all
subcontractors performing such Services must be registered with the Department of Industrial
Relations. Contractor shall maintain registration for the duration of the Project and require the
same of any subcontractors, as applicable. This Project may also be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's
sole responsibility to comply with all applicable registration and labor compliance requirements.
Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code
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Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is
exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and
1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or
any subcontractor that affect Contractor's performance of Services, including any delay, shall be
Contractor's sole responsibility. Any delay arising out of or resulting from such stop orders shall
be considered Contractor caused delay and shall not be compensable by the City. Contractor
shall defend, indemnify and hold the City, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of stop orders issued by the Department of
Industrial Relations against Contractor or any subcontractor.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. City may, by written notice to Contractor,
terminate the whole or any part of this Agreement at any time and without cause by giving written
notice to Contractor of such termination, and specifying the effective date thereof, at least seven
(7) days before the effective date of such termination. Upon termination, Contractor shall be
compensated only for those services which have been adequately rendered to City, and
Contractor shall be entitled to no further compensation. Contractor may not terminate this
Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Contractor to provide all finished or unfinished Documents and Data and other
information of any kind prepared by Contractor in connection with the performance of Services
under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 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.
3.5 General Provisions.
3.5.1 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:
Contractor:
Desert Air Conditioning, Inc.
74991 Joni Drive #20
Palm Desert, CA 92260-2043
Attn: Cary Best
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City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Tom Garcia, Director of Public Works
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.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnitv. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, employees, agents and
authorized volunteers free and harmless from any and all claims, demands, causes of action,
suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements,
loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false,
fraudulent, or groundless, to property or persons, including wrongful death, (collectively, "Claims")
in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful
misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents
in connection with the performance of the Contractor's services, the Project or this Agreement,
including without limitation the payment of all damages, expert witness fees and attorneys' fees
and other related costs and expenses. Notwithstanding the foregoing, to the extent required by
Civil Code section 2782, Contractor's indemnity obligation shall not apply to liability for damages
for death or bodily injury to persons, injury to property, or any other loss, damage or expense
arising from the sole or active negligence or willful misconduct of the City or the City's agents,
servants, or independent contractors who are directly responsible to the City, or for defects in
design furnished by those persons.
3.5.2.2 Additional Indemnitv Obliaations. Contractor shall defend, with
counsel of City's choosing and at Contractor's own cost, expense and risk, any and all Claims
covered by this section that may be brought or instituted against City or its officials, employees,
agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment,
award or decree that may be rendered against City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall
also reimburse City for the cost of any settlement paid by City or its officials, employees, agents
and authorized volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for City's attorney's fees and costs, including expert witness
fees. Contractor shall reimburse City and its officials, employees, agents and authorized
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall
survive expiration or termination of this Agreement, and shall not be restricted to insurance
proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.
3.5.3 Governina Law: Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Riverside County. In
addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
Contractor must comply with the claim procedures set forth in Government Code sections 900 et
(BB&K 2018) - 14 -
72500.00001\31605757.1 Rev 11-9-18
seq. prior to filing any lawsuit against the City. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or
changed conditions have been followed by Contractor. If no such Government Code claim is
submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified
herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 Citv's Riaht to Employ Other Contractors. City reserves right to employ
other contractors in connection with this Project.
3.5.6 Successors and Assians. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.7 Assianment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.8 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 Contractor include all personnel, employees, agents, and subcontractors
of Contractor, except as otherwise specified in this Agreement. All references to City include its
elected officials, officers, employees, agents, and volunteers 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.
3.5.9 Amendment: Modification. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 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.
3.5.11 No Third Partv Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
3.5.12 Invaliditv: Severabilitv. 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.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
(BB&K 2018) - 15 -
72500.00001\31605757.1 Rev 11-9-18
for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the City's Filing Officer as required under state law in the performance of the
Services. 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.
3.5.14 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.
3.5.15 Authoritv to Enter Aareement. Contractor 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.
3.5.16 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.17 Entire Aareement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by both
parties.
[SIGNATURES ON NEXT PAGE]
(BB&K 2018) - 16 -
72500.00001\31605757.1 Rev11-9-18
SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND HUGH HOARD, INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the 22ND
day of August, 2019.
CITY OF PALM DESERT HUGH HOARD, INC.
By:
LAURI AYLAIAN
CITY MANAGER By:
Its: President OR Vice President
Printed Name:
ATTEST:
By:
By:
City Clerk Its: Secretary OR Treasurer
Printed Name:
APPROVED AS TO FORM: Contractor's License Number and
Classification
By: Best Best &Krieger LLP DIR Registration Number (if applicable)
City Attorney
(BB&K 2018)
72500.00001\31605757.1 Rev 11-9-18
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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
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72500.00001\31605757.1 Rev 11-9-18
-18-
Notary Acknowledgment
A, nota public or other officer completing this certificate verifies only the identity of the individual who
signed he 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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
(BB&K 2018)
72500,00001\31605757.1 Rev 11-9-18
-19-
EXHIBIT "A"
SCOPE OF SERVICES
MISCELLANEOUS HVAC SERVICES AND REPAIRS AS NEEDED AT VARIOUS CITY -
OWNED FACILITIES
(BB&K 2018)
Exhibit A-1
72500.00001\31605757.1 Rev11-9-18
EXHIBIT "B"
SCHEDULE OF SERVICES
AS NEEDED, AS DIRECTED BY CITY STAFF
(BB&K 2018)
Exhibit B-1
72500.00001\31605757.1 Rev 11-9-18
EXHIBIT "C"
COMPENSATION
Vendor Hourly Rate After Hour Rate Weekend Rate
H&H Air Conditioning, $98.50 $147.75 $147.75
Palm Desert, CA
MATERIALS REIMBURSED AT COST PLUS $15%
TOTAL AMOUNT NOT TO EXCEED $100,000
Exhibit C-1
(BB&K 2018)
72500.00001\31605757.1 Rev 11-9-18
CONTRACT NO. C39150D
(ITI Of PRIM DESERT
73-510 FRED WARING DRivE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760 346-0611
INFO@A PALM-DESERT.ORG
CITY OF PALM DESERT
MAINTENANCE SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 22"d day of August, 2019, 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 A#1 Services Heroes, Inc., a
corporation with its principal place of business at 77588 El Duna Ct, Ste F Palm Desert, CA
92211 ("Contractor"). City and Contractor are sometimes individually referred to as "Party" and
collectively as "Parties" in this Agreement.
2. RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain
maintenance services required by the City on the terms and conditions set forth in this Agreement.
Contractor represents that it is experienced in providing HVAC services and repairs to public
clients, that it and its employees or subcontractors have all necessary licenses and permits to
perform the Services in the State of California, and that is familiar with the plans of City.
Contractor shall not subcontract any portion of the work 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.
2.2 Project.
City desires to engage Contractor to render such services for the Miscellaneous HVAC
Services and Repairs as Needed at Various City -owned Facilities project ("Project") as set
forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services,. Contractor 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 professional HVAC services and repairs necessary
(BB&K 2018) - 1 -
72500.00001\31605757.1 Rev 11-9-18
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 August 1, 2019 to June
30, 2019, unless earlier terminated as provided herein. Contractor shall complete the Services
within the term of this Agreement, and shall meet any other established schedules and deadlines.
The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to
complete the Services.
3.2 Responsibilities of Contractor.
3.2.1 Control and Pavment of Subordinates: Independent Contractor. The
Services shall be performed by Contractor or under its supervision. Contractor will determine the
means, methods and details of performing the Services subject to the requirements of this
Agreement. City retains Contractor on an independent contractor basis and not as an employee.
Contractor retains the right to perform similar or different services for others during the term of
this Agreement. Any additional personnel performing the Services under this Agreement on
behalf of Contractor shall also not be employees of City and shall at all times be under
Contractor's exclusive direction and control. Contractor 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. Contractor 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. Contractor shall perform the Services expeditiously,
within the term of this Agreement, and in accordance with the Schedule of Services set forth in
Exhibit "B" attached hereto and incorporated herein by reference. Contractor represents that it
has the professional and technical personnel required to perform the Services in conformance
with such conditions. In order to facilitate Contractor's conformance with the Schedule, City shall
respond to Contractor's submittals in a timely manner. Upon request of City, Contractor shall
provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Reauirements. All work prepared by
Contractor shall be subject to the approval of City.
3.2.4 Citv's Representative. The City hereby designates Carlos Hernandez,
Facilities Manager, or his designee, to act as its representative for the performance of this
Agreement ("City's Representative"). City's Representative shall have the power to act on behalf
of the City for all purposes under this Agreement. Contractor shall not accept direction or orders
from any person other than the City's Representative or his or her designee.
3.2.5 Contractor's Representative. Contractor hereby designates Cara J.
Goldberg, CFO, or his or her designee, to act as its representative for the performance of this
Agreement ("Contractor's Representative"). Contractor's Representative shall have full authority
to represent and act on behalf of the Contractor for all purposes under this Agreement. The
Contractor's Representative shall supervise and direct the Services, using his best skill and
attention, and shall be responsible for all means, methods, techniques, sequences and
(BB&K 2018) - 2 -
72500.00001 \31605757.1 Rev 11-9-1 B
procedures and for the satisfactory coordination of all portions of the Services under this
Agreement.
3.2.6 Coordination of Services. Contractor 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.
3.2.7 Standard of Care. Performance of Employees. Contractor 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. Contractor represents and maintains that it is skilled in the professional calling
necessary to perform the Services. Contractor warrants that all employees and subcontractors
shall have sufficient skill and experience to perform the Services assigned to them. Finally,
Contractor represents that it, its employees and subcontractors have all licenses, permits,
qualifications and approvals of whatever nature that are legally required to perform the Services,
including a City Business License, and that such licenses and approvals shall be maintained
throughout the term of this Agreement. As provided for in the indemnification provisions of this
Agreement, Contractor 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
Contractor's failure to comply with the standard of care provided for herein. Any employee of the
Contractor or its sub -contractors 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 Contractor and shall not be
re-employed to perform any of the Services or to work on the Project.
3.2.8 Period of Performance. Contractor shall perform and complete all Services
under this Agreement within the term set forth in Section 3.1.2 above ("Performance Time").
Contractor shall perform the Services in strict accordance with any completion schedule or Project
milestones described in Exhibits 'W' or "B" attached hereto, or which may be provided separately
in writing to the Contractor. Contractor agrees that if the Services are not completed within the
aforementioned Performance Time and/or pursuant to any such completion schedule or Project
milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged
and agreed that the City will suffer damage.
3.2.9 Disputes. Should any dispute arise respecting the true value of any work
done, of any work omitted, or of any extra work which Contractor may be required to do, or
respecting the size of any payment to Contractor during the performance of this Contract,
Contractor shall continue to perform the Work while said dispute is decided by the City. If
Contractor disputes the City's decision, Contractor shall have such remedies as may be provided
by law.
3.2.10 Laws and Regulations; EmDlovee/Labor Certifications. Contractor 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, including all
Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for
all violations of such laws and regulations in connection with Services. If the Contractor performs
any work knowing it to be contrary to such laws, rules and regulations and without giving written
notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a
public entity of the State of California subject to certain provisions of the Health & Safety Code,
Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed
(BB&K 2018) , - 3 -
72500.00001\31605757.1 Rev 11-9-18
that all provisions of the law applicable to the public contracts of a municipality are a part of this
Agreement to the same extent as though set forth herein and will be complied with. These include
but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours' labor
shall constitute a legal day's work and that no worker shall be permitted to work in excess of eight
(8) hours during any one calendar day except as permitted by law. Contractor shall defend,
indemnify and hold City, its officials, directors, officers, employees and agents free and harmless,
pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out
of any failure or alleged failure to comply with such laws, rules or regulations.
3.2.10.1 Emplovment Eligibility: Contractor. By executing this
Agreement, Contractor verifies 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. Such
requirements and restrictions include, but are not limited to, examination and retention of
documentation confirming the identity and immigration status of each employee of the Contractor.
Contractor also verifies 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. Contractor shall avoid any violation of
any such law during the term of this Agreement by participating in an electronic verification of
work authorization program operated by the United States Department of Homeland Security, by
participating in an equivalent federal work authorization program operated by the United States
Department of Homeland Security to verify information of newly hired employees, or by some
other legally acceptable method. Contractor shall maintain records of each such verification, and
shall make them available to the City or its representatives for inspection and copy at any time
during normal business hours. The City shall not be responsible for any costs or expenses related
to Contractor's compliance with the requirements provided for in Section 3.2.10 or any of its sub-
sections.
3.2.10.2 Emplovment Eliqibilitv; Subcontractors, Sub -subcontractors and,
Consultants. To the same extent and under the same conditions as Contractor, Contractor shall
require all of its subcontractors, sub -subcontractors and consultants performing any work relating
to the Project or this Agreement to make the same verifications and comply with all requirements
and restrictions provided for in Section 3.2.10.1.
3.2.10.3 EmDlovment Eliaibilitv: Failure to Comply. Each person
executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer
of Contractor, and understands that any of the following shall be grounds for the City to terminate
the Agreement for cause: (1) failure of Contractor or its subcontractors, sub -subcontractors or
consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any
misrepresentation or material omission concerning compliance with such requirements (including
in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to
immediately remove from the Project any person found not to be in compliance with such
requirements.
3.2.10.4 Labor Certification. By its signature hereunder, Contractor
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 Workers' 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.
(BB&K 2018) - 4 -
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3.2.10.5 Equal Opportunity Emplovment. Contractor represents that it is
an equal opportunity employer and it shall not discriminate against any subcontractor, 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. Contractor 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.
3.2.10.6 Air Qualitv. Contractor must fully comply with all applicable laws,
rules and regulations in furnishing or using equipment and/or providing services, including, but
not limited to, emissions limits and permitting requirements imposed by the California Air
Resources Board (GARB). Contractor shall specifically be aware of the CARB limits and
requirements' application to "portable equipment", which definition is considered by CARB to
include any item of equipment with a fuel -powered engine. Contractor shall indemnify City against
any fines or penalties imposed by CARB or any other governmental or regulatory agency for
violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others
for whom Contractor is responsible under its indemnity obligations provided for in this Agreement.
3.2.10.7 Water Qualitv•
(A) Management and Compliance. To the extent applicable,
Contractor's Services must account for, and fully comply with, all local, state and federal laws,
rules and regulations that may impact water quality compliance, including, without limitation, all
applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the
California Porter -Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws,
rules and regulations of the Environmental Protection Agency and the State Water Resources
Control Board; the City's ordinances regulating discharges of storm water; and any and all
regulations, policies, or permits issued pursuant to any such authority regulating the discharge of
pollutants, as that term is used in the Porter -Cologne Water Quality Control Act, to any ground or
surface water in the State.
(B) Liability for Non -Compliance. Failure to comply with the
laws, regulations and policies described in this Section is a violation of law that may subject
Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall
defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers and
agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and
against any and all fines, penalties, claims or other regulatory requirements imposed as a result
of Contractor's non-compliance with the laws, regulations and policies described in this Section,
unless such non-compliance is the result of the sole established negligence, willful misconduct or
active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
(C) Traininq. In addition to any other standard of care
requirements set forth in this Agreement, Contractor warrants that all employees and
subcontractors shall have sufficient skill and experience to perform the Services assigned to them
without impacting water quality in violation of the laws, regulations and policies described in this
Section. Contractor further warrants that it, its employees and subcontractors will receive
adequate training, as determined by City, regarding the requirements of the laws, regulations and
policies described in this Section as they may relate to the Services provided under this
Agreement. Upon request, City will provide Contractor with a list of training programs that meet
the requirements of this paragraph.
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3.2.11 Insurance.
3.2.11.1 Minimum Requirements. Without limiting Contractor's
indemnification of City, and prior to commencement of Work, Contractor 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. The City's Risk Manager
may modify this requirement if it is determined that the Contractor will not be utilizing a vehicle in
the performance of his/her duties under this Agreement.
(A) General Liabilitv Insurance. Contractor 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 Liabilitv Insurance. Contractor 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 Contractor 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 Manager 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) Umbrella or Excess Liabilitv Insurance. Contractor may opt
to utilize umbrella or excess liability insurance in meeting insurance requirements. In such
circumstances, Contractor may 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:
(a) 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;
(b) Pay on behalf of wording as opposed to
reimbursement;
(c) Concurrency of effective dates with primary
policies; and
(d) Policies shall "follow form" to the underlying
primary policies.
(e) Insureds under primary policies shall also
be insureds under the umbrella or excess policies.
(D) Workers' Compensation Insurance.. Contractor shall
maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance
(with limits of at least $1,000,000). Contractor shall submit to City, along with the certificate of
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insurance, a Waiver of Subrogation endorsement in favor of the City of Palm Desert, its officers,
agents, employees and volunteers.
3.2.11.2 Other Provisions and Reauirements.
(A) Proof of Insurance. Contractor 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 contract.
City reserves the right to require complete, certified copies of all required insurance policies, at
any time.
(B) Duration of Coveraae. Contractor shall procure and
maintain for the duration of the contract insurance against claims for injuries to persons or
damages to property, which may arise from or in connection with the performance of the Work
hereunder by Contractor, his/her agents, representatives, employees or subconsultants.
(C) Primarv/Non-Contributina. Coverage provided by
Contractor 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) Citv's Riahts 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 Contractor, or City will
withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City
may cancel 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 VI (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 Subroaation. All insurance coverage maintained
or procured pursuant to this agreement shall be endorsed to waive subrogation against the City
of Palm Desert, its elected or appointed officers, agents, officials, employees and volunteers, or
shall specifically allow Contractor or others providing insurance evidence in compliance with these
specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own
right of recovery against the City of Palm Desert, its elected or appointed officers, agents, officials,
employees and volunteers and shall require similar written express waivers and insurance
clauses from each of its subcontractors.
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(G) Enforcement of Contract Provisions (non estoppel).
Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to
inform Contractor of non-compliance with any requirement imposes no additional obligations on
the City nor does it waive any rights hereunder.
(H) Reauirements Not Limitina. 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 Contractor maintains higher limits than the
minimums shown above, the City requires and shall be entitled to coverage for the higher limits
maintained by the Contractor. Any available insurance proceeds in excess of the specified
minimum limits of insurance and coverage shall be available to the City.
(1) Notice of Cancellation. Contractor agrees to oblige its
insurance agent or broker and insurers to provide to 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 of Palm Desert and its officers, officials, employees, agents, and volunteers
shall be additional insureds under such policies. This provision shall also apply to any
excess/umbrella liability policies.
(K) Prohibition of Undisclosed Coveraae 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 Contractor'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 Throuah Clause. Contractor agrees to ensure that its
sub -consultants, sub -contractors, and any other party involved with the project who is brought
onto or involved in the project by Contractor, provide the same minimum insurance coverage and
endorsements required of Contractor. Contractor 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. Contractor agrees that upon request, all agreements with
consultants, subcontractors, and others engaged in the project will be submitted to City for review.
(N) Citv's Riaht to Revise Specifications. The City or its Risk
Manager reserves the right at any time during the term of the contract to change the amounts and
types of insurance required by giving the Contractor ninety (90) days advance written notice of
such change. If such change results in substantial additional cost to the Contractor, the City and
Contractor may renegotiate Contractor's compensation. If the City reduces the insurance
requirements, the change shall go into effect immediately and require no advanced written notice.
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(0) 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. Contractor shall give City prompt
and timely notice of claims made or suits instituted that arise out of or result from Contractor's
performance under this Agreement, and that involve or may involve coverage under any of the
required liability policies.
(Q) Additional Insurance. Contractor 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 work.
3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury
or damage to any person or property. In carrying out its Services, the Contractor 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. Safety precautions, where
applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Bonds.
3.2.13.1 Performance Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Performance Bond in the
amount of the total, not -to -exceed compensation indicated in this Agreement, and in a form
provided or approved by the City. If such bond is required, no payment will be made to Contractor
until it has been received and approved by the City.
3.2.13.2 Pavment Bond. If required by law or otherwise specifically
requested by City in Exhibit "C" attached hereto and incorporated herein by reference, Contractor
shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount
of the total, not -to -exceed compensation indicated in this Agreement, and in a form provided or
approved by the City. If such bond is required, no payment will be made to Contractor until it has
been received and approved by the City.
3.2.13.3 Bond Provisions. Should, in City's sole opinion, any bond
become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace
the affected bond within 10 days of receiving notice from City. In the event the surety or
Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written
notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least
ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due
or will be made under this Agreement until any replacement bonds required by this Section are
accepted by the City. To the extent, if any, that the total compensation is increased in accordance
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with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds
to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to
the City. To the extent available, the bonds shall further provide that no change or alteration of
the Agreement (including, without limitation, an increase in the total compensation, as referred to
above), extensions of time, or modifications of the time, terms, or conditions of payment to the
Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City
may terminate this Agreement for cause.
3.2.13.4 Suretv Qualifications. Only bonds executed by an admitted
surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The
surety must be a California -admitted surety with a current A.M. Best's rating no less than A:VIII
and satisfactory to the City. If a California -admitted surety insurer issuing bonds does not meet
these requirements, the insurer will be considered qualified if it is in conformance with
Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the
City.
3.2.14 Accounting Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor 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. Contractor 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.
3.2.15 Work Sites.
3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are
to be performed and shall become acquainted with all conditions affecting the Services prior to
commencing the Services. Contractor shall make such examinations as it deems necessary to
determine the condition of the work sites, its accessibility to materials, workmen and equipment,
and to determine Contractor's ability to protect existing surface and subsurface
improvements. No claim for allowances —time or money —will be allowed as to such matters after
commencement of the Services.
3.2.15.2 Field Measurements. Contractor shall make field
measurements, verify field conditions and shall carefully compare such field measurements and
conditions and other information known to Contractor with the Contract Documents, including any
plans, specifications, or scope of work before commencing Services. Errors, inconsistencies or
omissions discovered shall be reported to the City immediately and prior to performing any
Services or altering the condition.
3.2.15.3 Hazardous Materials and Differina Conditions. Except as set
forth in the Special Conditions or Specifications, should Contractor encounter material reasonably
believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substance and
hazardous materials as defined in California state or federal law at the Site which have not been
rendered harmless, the Contractor shall immediately stop work at the affected area and shall
report the condition to the City in writing. The City shall contract for any services required to
directly remove and/or abate PCBs, hazardous substances, other toxic wastes and hazardous
materials, and shall not require the Contractor to subcontract for such services. The Services in
the affected area shall not thereafter be resumed except by written agreement of the City and
Contractor.
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3.2.16 Loss and Damaae. Contractor shall be responsible for all loss and damage
which may arise out of the nature of the Services agreed to herein, or from the action of the
elements, or from any unforeseen difficulties which may arise or be encountered in the
prosecution of the Services until the same is fully completed and accepted by City.
3.2.17 Warrantv. Contractor warrants all Services under the Contract (which for
purposes of this Section shall be deemed to include unauthorized work which has not been
removed and any non -conforming materials incorporated into the work) to be of good quality and
free from any defective or faulty material and workmanship. Contractor agrees that for a period
of one year (or the period of time specified elsewhere in the Contract or in any guarantee or
warranty provided by any manufacturer or supplier of equipment or materials incorporated into
the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10)
days after being notified in writing by the City of any defect in the Services or non-conformance
of the Services to the Contract, commence and prosecute with due diligence all Services
necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act
sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its
sole cost and expense, repair and replace any portions of the work (or work of other contractors)
damaged by its defective Services or which becomes damaged in the course of repairing or
replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct
defective work shall be reinstated for an additional one-year period, commencing with the date of
acceptance of such corrected work. Contractor shall perform such tests as the City may require
to verify that any corrective actions, including, without limitation, redesign, repairs, and
replacements comply with the requirements of the Contract. All costs associated with such
corrective actions and testing, including the removal, replacement, and reinstitution of equipment
and materials necessary to gain access, shall be the sole responsibility of the Contractor. All
warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any
portion of the work, whether express or implied, are deemed to be obtained by Contractor for the
benefit of the City, regardless of whether or not such warranties and guarantees have been
transferred or assigned to the City by separate agreement and Contractor agrees to enforce such
warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails
to perform its obligations under this Section, or under any other warranty or guaranty under this
Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and
replace any defective or non -conforming work and any work damaged by such work or the
replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to
fully reimburse the City for any expenses incurred hereunder upon demand.
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 "C" attached hereto and incorporated herein by reference. The total compensation shall
not exceed Twenty -Five Thousand and 00/100 ($25,000.00) annually without written approval
of the City's City Manager. Extra Work may be authorized, as described below, and if authorized,
will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Pavment of Compensation. Contractor shall submit to City a monthly
itemized statement which indicates work completed and hours of Services rendered by
Contractor. The statement shall describe the amount of Services and supplies provided since the
initial commencement date, or since the start of the subsequent billing periods, as appropriate,
through the date of the statement. City shall, within thirty (30) days of receiving such statement,
review the statement and pay all approved charges thereon. Contractor shall submit its final
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invoice to City within thirty (30) days from the last date of provided Services or termination in
accordance with section 3.4, and failure by the Contractor to submit a timely invoice shall
constitute a waiver of its right to final payment.
3.3.3 Deductions. City may deduct or withhold, as applicable, from each
progress payment an amount necessary to protect City from loss because of: (1) stop payment
notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3)
sums representing expenses, losses, or damages as determined by the City, incurred by the City
for which Contractor is liable under the Agreement; and (4) any other sums which the City is
entitled to recover from Contractor under the terms of the Agreement or pursuant to state law,
including Section 1727 of the California Labor Code. The failure by the City to deduct any of
these sums from a progress payment shall not constitute a waiver of the City's right to such sums.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.5 Extra Work. At any time during the term of this Agreement, City may
request that Contractor 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.
Contractor shall not perform, nor be compensated for, Extra Work without written authorization
from City's Representative.
3.3.6 Prevailing Waqes. Contractor is aware of the requirements of California
Labor Code Section 1720, et seg., and 1770, et seg., 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, and if the total compensation is
$15,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall
provide Contractor with a copy of the prevailing rates of per diem wages in effect at the
commencement of this Agreement. Contractor 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 Contractor's principal
place of business and at the project site. Contractor shall defend, indemnify and hold the City, its
elected officials, officers, employees and agents free and harmless from any claim or liability
arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be
mandatory upon the Contractor and all subcontractors to comply with all California Labor Code
provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774
and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records
(Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815)
and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement
to submit certified payroll records directly to the Labor Commissioner under Labor Code section
1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the
small project exemption specified in Labor Code Section 1771.4.
3.3.7 Registration/DIR Compliance. If the Services are being performed as part
of an applicable "public works" or "maintenance" project, and if the total compensation is $15,000
or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all
subcontractors performing such Services must be registered with the Department of Industrial
Relations. Contractor shall maintain registration for the duration of the Project and require the
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,. ,
same of any subcontractors, as applicable. This Project may also be subject to compliance
monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor's
sole responsibility to comply with all applicable registration and labor compliance requirements.
Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code
Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is
exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and
1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or
any subcontractor that affect Contractor's performance of Services, including any delay, shall be
Contractor's sole responsibility. Any delay arising out of or resulting from such stop orders shall
be considered Contractor caused delay and shall not be compensable by the City. Contractor
shall defend, indemnify and hold the City, its officials, officers, employees and agents free and
harmless from any claim or liability arising out of stop orders issued by the Department of
Industrial Relations against Contractor or any subcontractor.
3.4 Termination of Agreement.
3.4.1 Grounds for Termination. City may, by written notice to Contractor,
terminate the whole or any part of this Agreement at any time and without cause by giving written
notice to Contractor of such termination, and specifying the effective date thereof, at least seven
(7) days before the effective date of such termination. Upon termination, Contractor shall be
compensated only for those services which have been adequately rendered to City, and
Contractor shall be entitled to no further compensation. Contractor may not terminate this
Agreement except for cause.
3.4.2 Effect of Termination. If this Agreement is terminated as provided herein,
City may require Contractor to provide all finished or unfinished Documents and Data and other
information of any kind prepared by Contractor in connection with the performance of Services
under this Agreement. Contractor shall be required to provide such document and other
information within fifteen (15) days of the request.
3.4.3 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.
3.5 General Provisions.
3.5.1 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:
Contractor:
A#1 Services Heroes
77588 El Duna Ct, Ste F
Palm Desert, CA 92211
Attn: Cara J. Goldberg, CFO
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City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Tom Garcia, Director of Public Works
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.
3.5.2 Indemnification.
3.5.2.1 Scope of Indemnitv. To the fullest extent permitted by law,
Contractor shall defend, indemnify and hold the City, its officials, employees, agents and
authorized volunteers free and harmless from any and all claims, demands, causes of action,
suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements,
loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false,
fraudulent, or groundless, to property or persons, including wrongful death, (collectively, "Claims")
in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful
misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents
in connection with the performance of the Contractor's services, the Project or this Agreement,
including without limitation the payment of all damages, expert witness fees and attorneys' fees
and other related costs and expenses. Notwithstanding the foregoing, to the extent required by
Civil Code section 2782, Contractor's indemnity obligation shall not apply to liability for damages
for death or bodily injury to persons, injury to property, or any other loss, damage or expense
arising from the sole or active negligence or willful misconduct of the City or the City's agents,
servants, or independent contractors who are directly responsible to the City, or for defects in
design furnished by those persons.
3.5.2.2 Additional Indemnitv Obliaations. Contractor shall defend, with
counsel of City's choosing and at Contractor's own cost, expense and risk, any and all Claims
covered by this section that may be brought or instituted against City or its officials, employees,
agents and authorized volunteers. In addition, Contractor shall pay and satisfy any judgment,
award or decree that may be rendered against City or its officials, employees, agents and
authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall
also reimburse City for the cost of any settlement paid by City or its officials, employees, agents
and authorized volunteers as part of any such claim, suit, action or other proceeding. Such
reimbursement shall include payment for City's attorney's fees and costs, including expert witness
fees. Contractor shall reimburse City and its officials, employees, agents and authorized
volunteers, for any and all legal expenses and costs incurred by each of them in connection
therewith or in enforcing the indemnity herein provided. Contractor's obligation to indemnify shall
survive expiration or termination of this Agreement, and shall not be restricted to insurance
proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.
3.5.3 Governina Law. Government Code Claim Compliance. This Agreement
shall be governed by the laws of the State of California. Venue shall be in Riverside County. In
addition to any and all contract requirements pertaining to notices of and requests for
compensation or payment for extra work, disputed work, claims and/or changed conditions,
Contractor must comply with the claim procedures set forth in Government Code sections 900 et
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seq. prior to filing any lawsuit against the City. Such Government Code claims and any
subsequent lawsuit based upon the Government Code claims shall be limited to those matters
that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or
changed conditions have been followed by Contractor. If no such Government Code claim is
submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified
herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.
3.5.4 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
3.5.5 Citv's Riaht to Emplov Other Contractors. City reserves right to employ
other contractors in connection with this Project.
3.5.6 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties.
3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or
transfer, either directly or by operation of law, this Agreement or any interest herein without the
prior written consent of the City. Any attempt to do so shall be null and void, and any assignees,
hypothecates or transferees shall acquire no right or interest by reason of such attempted
assignment, hypothecation or transfer.
3.5.8 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 Contractor include all personnel, employees, agents, and subcontractors
of Contractor, except as otherwise specified in this Agreement. All references to City include its
elected officials, officers, employees, agents, and volunteers 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.
3.5.9 Amendment; Modification. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.10 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 Parry any
contractual rights by custom, estoppel or otherwise.
3.5.11 No Third Partv Beneficiaries. Except to the extent expressly provided for
in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed
by the Parties.
3.5.12 Invaliditv; Severabilitv. 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.
3.5.13 Prohibited Interests. Contractor maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide employee working solely
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for Contractor, to solicit or secure this Agreement. Further, Contractor 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 Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration
contingent upon or resulting from the award or making of this Agreement. Contractor further
agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic
Interest with the City's Filing Officer as required under state law in the performance of the
Services. 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.
3.5.14 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.
3.5.15 Authoritv to Enter Agreement. Contractor 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.
3.5.16 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
3.5.17 Entire Aareement. This Agreement contains the entire Agreement of the
parties with respect to the subject matter hereof, and supersedes all prior negotiations,
understandings or agreements. This Agreement may only be modified by a writing signed by both
parties.
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72500.00001\31605757.1 Rev 11-9-18
SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND A#1 SERVICES HEROES INC.
IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the 22ND
day of August, 2019.
CITY OF PALM DESERT A#1 SERVICES HEROES, INC.
By:
LAURI AYLAIAN
CITY MANAGER By:
Its: President OR Vice President
Printed Name:
ATTEST:
By:
By. City Clerk Its: Secretary OR Treasurer
Printed Name:
APPROVED AS TO FORM: Contractor's License Number and
Classification
By: DIR Registration Number (if applicable)
Best Best & Krieger LLP
City Attorney
(BB&K 2018) - 17 -
72500.00001\31605757.1 Rev 11-9-18
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who I
signed fhe 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 j 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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
(BB&K 2018)
72500.00001\31605757.1 Rev 11-9-18
-18-
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who
signed fhe 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
❑ Individual
❑ Corporate Officer
Title(s)
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney -In -Fact
❑ Trustee(s)
❑ Guardian/Conservator
❑ Other:
Signer is representing:
Name Of Person(s) Or Entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
Title or Type of Document
Number of Pages
Date of Document
Signer(s) Other Than Named Above
(BB&K 2018)
72500.00001\31605757.1 Rev 11-9-18
-19-
EXHIBIT "A"
SCOPE OF SERVICES
MISCELLANEOUS HVAC SERVICES AND REPAIRS AS NEEDED AT VARIOUS CITY -
OWNED FACILITIES
(BB&K 2018)
Exhibit A-1
72500.00001\31605757.1 Rev11-9-18
EXHIBIT "B"
SCHEDULE OF SERVICES
AS NEEDED, AS DIRECTED BY CITY STAFF
(BB&K 2018)
Exhibit B-1
72500.00001 \31605757.1 Rev 11-9-18
EXHIBIT "C"
COMPENSATION
Vendor Hourly Rate After Hour Rate
Al Heroes Air Conditioning, $118.00 $118.00
Palm Desert, CA
MATERIALS REIMBURSED AT COST PLUS $15%
TOTAL AMOUNT NOT TO EXCEED $100,000
Exhibit C-1
Weekend Rate
$118.00
(BB&K 2018)
72500.00001\31605757.1 Rev 11-9-18
servaw the cmchatra valr'ey
590 WILLIAMS ROAD • PALM SPRINGS • CA 92264
(760) 323-3383 -FAX (760) 323-8983
www.desertairps.com
LICENSE NO.276586
PUBLIC WORKS REGISTRATION NO. 1000001209
June 14, 2019
City of Palm Desert
Attn: Carlos Hernandez and Cyril Snake
73-510 Fred Waring Drive
Palm Desert, CA 92260
RE: HVAC Services and Rates Request
Dear Carlos and Cyril:
We are an air conditioning and heating service company. We service and install all makes and models of air
conditioning, heating, mini splits and evaporative cooling. We also have a full sheet metal shop which fabricates and
install ductwork. We also offer air conditioning, heating, mini split and evaporative cooling replacement and installation.
Are rates are as follows:
• Normal service hour rate $98.00 per hour but with your service contract through the end of June 2020, your
discounted rate is $88.00 per hour.
• Normal after hours rate is after 5:00 Monday through Friday and all day Saturday is $124.00 per hour but
with your service contract through the end of June 2020, your discounted rate is $112.00 per hour.
• Normal Sunday rate is $138.00 per hour but with your service contract through the end of June 2020, your
discounted rate is $124.00 per hour.
If you have any questions or if 1 can be of any further assistance, please let me know.
Sincerely,
!d& S
Cooling Sheet Metal Heating
PACIFIC WEST
A I R C 0 N 0 1 T 1 0 N I N 6
City of Palm Desert — 2019/2020 Service Rates
Pacific West Industries, Inc.
4051 E. La Palma Ave. Unit A
Anaheim, CA 92807
Tel 866.328.2129
Fax 714.630.4049
Pacif c West Air Conditioning is pleased to offer our services to the City of Palm Desert. We are
proud to offer our clients a wide array of services in order to fit their HVAC needs, which
include, but are not limited to, the following:
• Mechanical Systems - installation service & maintenance
o Air handlers, coils & piping, cooling towers, chemical water treatment, chiller &
boiler systems, ducting & ventilation, fans, pumps, motors, and package units
• Specialty Systems - installation service & maintenance
o Data centers, computer rooms, portable & temporary cooling, green building &
energy conservation, humidification & dehumidification systems, and engineering
• Building automation systems — installation, service & maintenance
o Carrier CCN, Open & Ivu Expert certified. Bacnet, LonWorks & Modbus
support, variable speed drives, remote monitoring, commissioning, testing &
training
Regular hourly rate = $149/hr.
After hours rate = $223.50/hr.
Weekend & holiday rate = $298/hr.
Regular working hours are between 7am4pm, Monday -Friday. All rates include all prevailing
wage & fringe benefits, per DIR requirements.
Respectfully submitted,
Devin Johnson
Project Manager
(951) 833-1538
Devin@pacwestac.com
Hugh Hoard Air Conditioning • Heating
im
INC. Refrigeration
Sales • Service
Lic. #510566 (760) 340-3088 FAX.(760) 341-2785
JUNE.12.2019
CARLOSHERNANDEZ
CYRIL SNAKE
CITY OF PALM DESERT
73510 FRED WARING DRIVE
PALM DESERT.CA.92260
HELLO,
THANK YOU FOR THE INQUIRY REGARDING OUR RATES AND
SERVICES. WE PROVIDE REPAIR, REPLACEMENT, AND
MAINTENANCE FOR HVAC EQUIPMENT.
SERVICE RATES:
REGULAR HOURLY RATE:
ONE HOUR MINIMUM 8:30-4:30P
AFTER HOURS AND WEEKEND
HOURLY RATE:
HOLIDAY LABOR RATE:
REGARDS,
CARY BEST
H & H AIR CONDITIONING
AND HEATING
CB/cd
$ 98.50/PER HOUR
$147.75/PER HOUR
$197.00/PER HOUR
74-991 Joni Drive #20 l Palm Desert, CA 92260-2043
June 17, 2019
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Carlos Hernandes, Facilities Mgr
RE: HVACVendor Requirements
Dear Carlos:
A#1 Services Heating & Air Conditioning, Inc dba Service Heroes thanks you for the opp.
qualify as a HVAC service provider. Per request, please find attached our Certificate of
and Business License. Please note we use a Yd party permit company that secures all o
licenses & permits and appears they have not mailed our current license. I have request
should have later today.
We provide all inclusive HVAC services from service maintenance, seasonal maintenanc
filtration, electrical, zoning, repairs & replacements. The labor rates are $118 first hour
additional hour, extra man charge $69 per hour.
Please email Sonia.oerezPalservicehe roes or call 760-565-2691 if additional informatip
Kind Regards,
L/^�t�''
C-elvll �'
Cara J. Goldberg, CFO
77588 El Duna Ct. Suite F Palm Desert, CA 92211
Phone76o.565.26gi www.axsmcoin