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Home My WebLink About000 2022-0210 Agenda Packet CITY OF PALM DESERT REGULAR PALM DESERT CITY COUNCIL (CC), SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (SA), AND HOUSING AUTHORITY (HA) MEETING (VIRTUAL MEETING) THURSDAY, FEBUARY 10, 2022 3:00 p.m. Closed Session 4:00 p.m. Regular Session Note: Pursuant to Assembly Bill 361, this meeting may be conducted by teleconference and there will be no in-person public access to the meeting location. City Council Meetings are live-streamed. You can access and view the meetings through the City’s website at https://www.cityofpalmdesert.org and click on “Council Agenda” at the top of the page. Options for participating in the meeting: To participate by email, internet or telephone, see detailed instructions on the last page. Page 1 AGENDA FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 2 CALL TO ORDER – 3:00 P.M. PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY – Any person wishing to discuss any Closed Session business that is within the subject matter may participate utilizing one of the three options listed on the back page of this agenda. ADJOURN TO CLOSED SESSION A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1) (Successor Agency) Property: 18.73-acre site, located on Desert Willow Drive, northwest of Market Place (APNs 620-450-012, 013, 014). City Negotiator: Todd Hileman/Martin Alvarez Other Party Negotiator: Family Development Group, Inc. Property Owner: Successor Agency to Palm Desert Redevelopment Agency 2) (Successor Agency) Property: Approximately 93-acre portion of the 128-acre site, located west of Portola Avenue and south of Gerald Ford Drive (APNs 694-310-002, 003, and a portion of 694-310-006). City Negotiator: Todd Hileman/Martin Alvarez/Eric Ceja Other Party Negotiator: Refuge Palm Desert, LLC Property Owner: Successor Agency to Palm Desert Redevelopment Agency 3) (City) Property: 45656 Mountain View (APN 627-351-024-8) City Negotiator: Todd Hileman/Andy Firestine/Janet Moore Other Party Negotiator: The Lerae Britain Moeller Bush Living Trust Property Owner: The Lerae Britain Moeller Bush Living Trust B. Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1) Potential cases: 2 RECONVENE THE CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MEETING – 4:00 P.M. a) Roll Call b) Pledge of Allegiance to the Flag – Councilmember Karina Quintanilla c) Inspiration/Invocation – Councilmember Kathleen Kelly Page 2 AGENDA FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 3 REPORT ON ACTION FROM CLOSED SESSION AWARDS, PRESENTATIONS, AND APPOINTMENTS CITY MANAGER COMMENTS MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION NON AGENDA PUBLIC COMMENTS: This is an opportunity for the public to speak on issues that are not on the agenda for a maximum of three minutes. Speakers may utilize one of the three options listed on the back page of this agenda. Because the Brown Act does not allow the City Council, Successor Agency, and Housing Authority Boards to take action on items not on the Agenda, members may briefly respond or instead refer the matter to staff for report and recommendation at a future City Council, Successor Agency, or Housing Authority Meeting. CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and may be approved by one (1) Minute Motion. 1.MINUTES of the regular City Council, Successor Agency, and Housing Authority Meeting of January 13, 2022 (CC) (SA) (HA) ............................................................... Page 9 Rec.: Approve as presented. 2.APPROVE CLAIMS AND DEMANDS WARRANTS: City & Housing: 1/21/2022 (CC, HA) ........................................................................................................................ Page 19 Rec.: Receive and file. 3.REQUEST TO AUTHORIZE findings that the State of California continues in a Governor- declared state of emergency (AB361) to combat the COVID epidemic, that state and local health officials are recommending social distancing, and consequently that the City Council and its other Brown-Act bodies may continue to employ remote teleconferencing under Government Code Section 54953(e) (CC) ............................................ Page 33 Page 3 AGENDA FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 4 Rec.: The City Council hereby finds the State of California continues in a Governor- declared state of emergency to combat the COVID epidemic, that state and local health officials are recommending social distancing, and consequently that the City Council and its other Brown-Act bodies may continue to employ remote teleconferencing under Government Code Section 54953(e). 4.RESOLUTION to approve Mid-Year Adjustments for the Fiscal Year 2021-22 Revenue and Expenditures (CC) ................................................................................... Page 35 Rec: By Minute Motion, waive further reading and adopt a resolution approving mid-year adjustments to revenue and expenditures for the FY 2021-22. 5.RESOLUTION to authorize the destruction of paper records that have been digitally imaged from the Development Services Department (Planning/Land Development Division) to rely on the electronic record as the official record. (CC) .............. Page 43 Rec.: Waive further reading and adopt. 6.AWARD of Contract No. C42330 in the amount of $158,830 to United Storm Water, Inc. of Industry, California for the 2021 Catch Basin and Drain Cleaning Project (Project No. 501-21) (CC) …………………. ........................................................................ Page 49 Rec.: By Minute Motion: 1.Award Contract No. C42330 in the amount of $158,830 to United Storm Water, Inc. of Industry, California, for the 2021 Catch Basin and Drain Cleaning Project; 2.Authorize the Director of Finance to set aside a 10% contingency in the amount of $15,883; 3.Authorize the City Manager or designee to review and approve written requests for the use of contingency for unanticipated conditions, per Section 3.30.170 Section A of Ordinance No. 1335; and 4.Authorize the City Manager to execute the Agreement. 7.AWARD of Contract to KOA Corporation of Monterey Park, California, for Traffic Engineering Services in the amount of $186,300 for the Neighborhood Traffic Management Plan (Project No. 570-21) (CC) ................................................. Page 75 Rec.: By Minute Motion: 1.Award Contract to KOA Corporation of Monterey Park, California, for Traffic Engineering Services in the amount of $186,300; and 2.Authorize the City Manager or their designee to execute said agreement and any amendments and related documents as recommended by staff. Page 4 AGENDA FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 5 8.AWARD of Contract No. C42440 in the amount of $89,800 to Multi W Systems, Inc. of El Monte, California, for the Civic Center Pump Station Improvements Project (Project No. 920-22 (CC) .................................................................................................... Page 133 Rec.: By Minute Motion: 1.Award Contract No. C42440 for the Civic Center Pump Station Improvements Project to Multi W Systems, Inc. of El Monte, California, in the amount of $89,800; 2.Authorize the Director of Finance to set aside a 10% contingency in the amount of $9,000; 3.Authorize the Director of Finance to transfer $98,800 from the Civic Center Photovoltaic Project (Account No. 4504161-4400100) to Civic Center Capital Project (Account No. 1104674-4400100); 4.Authorize the Mayor to execute the agreement; and 5.Authorize the City Manager to approve change orders associated with this contract based on staff’s recommendations. 9.AWARD Contract No. C42170 to Commercial Waterproofing Systems, Inc. of Santa Ana, California, for the Desert Willow Golf Resort Maintenance Facility Roof Repairs in the amount of $77,000 (Project No. 851-22) (CC) .................................................. Page 159 Rec.: By Minute Motion: 1. Award Contract No. C42170 to Commercial Waterproofing Systems, Inc., of Santa Ana, California, for the Desert Willow Golf Resort Maintenance Facility Roof Repairs in the amount of $77,000; 2.Authorize the Director of Finance to set aside a 10% contingency in the amount of $7,700 for unforeseen conditions; and 3.Authorize the City Manager to execute said the agreement and any change orders associated with this contract based on staff’s recommendations. 10.APPROVE AND AWARD an agreement with Mosaic Public Partners LLC and authorize the expenditure of up to $86,000 for recruitment services (CC) ............................... Page 209 Rec.: By Minute Motion: 1.Approve and award an agreement with Mosaic Public Partners LLC; and 2.Authorize the expenditure of up to $86,000 for recruitment services, including additional expenses. 11.AWARD Contract to Conserve Landcare of Thousand Palms, California for the Parks and Landscape Enhancement Project for an annual amount of $250,000 for a term of 53 months (Project No. 934-22) (CC) ............................................................................... Page 229 Rec.: By Minute Motion: 1.Award Contract for the Parks and Landscape Enhancement Project to Conserve Landcare of Thousand Palms, California, for an annual amount of $250,000; 2.Authorize the Mayor to execute the agreement; and Page 5 AGENDA FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 6 3. Authorize City Manager to approve change orders associated with this contract and up to three (3) one-year contract extensions based on staff’s recommendations. 12.ACCEPT Contract No. C38820B with Los Angeles Engineering, Inc. of Riverside, California, for the San Pablo Avenue Phase 2 Street Improvements as complete and authorize the City Clerk to file a Notice of Completion (Project No. 681-20) (CC)...Page 287 Rec.: By Minute Motion: 1.Accept Contract No. C38820B with Los Angeles Engineering, Inc. of Riverside, California, for the San Pablo Avenue Phase 2 Street Improvements as complete; 2.Approve Change Order No. 13 to Contract No. C38820B in the amount of $22,421.79; 3.Approve Contract Amendment No. 1 to Contract No. C38820A in the amount of $25,000; 4.Authorize the transfer of $25,000 from the remaining contingency amount for the project from Contract No. C38820B to Contract C38820A; 5.Authorize the City Clerk to file the Notice of Completion; and 6.Authorize the City Manager or their designee to execute the change order and contract amendment. 13.APPROVE Mills Act Contract for property located at 72-765 Mesquite Court, Unit C, Kings Point at Palm Desert (Shadow Cove), APN 628-270-033 (CC) ...................... Page 299 Rec.: By Minute Motion: 1.Approve the following Mills Act contract for 72-765 Mesquite Court, Unit C, Kings Point at Palm Desert (Shadow Cove), APN 628-270-033 in accordance with section 29.70.030 of the Palm Desert Municipal Code (PDMC). 2.Authorize City Manager and City Attorney to approve, sign and execute the contracts. 14.RECEIVE AND FILE letter of resignation from Ms. Donna Ault, Housing Commission (CC) ........................................................................................................................ Page 373 Rec.: Receive and file with sincere regret. 15.ORDINANCE NO. 1375: Consideration of approval to the City Council for Zoning Ordinance Amendment 21-0002 to amend the Palm Desert Municipal Code, Chapter 25, modifying Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and Chapter 5, Section 5.11 “Disclosures Upon Transfer of Residential Property” regulating the public engagement process. (2nd Reading) (CC) ......... Page 375 Rec.: Waive further reading and adopt. CONSENT ITEMS HELD OVER Page 6 AGENDA FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 7 ACTION CALENDAR 16.REQUEST FOR DIRECTION for a future Request for Proposals (RFP) for design work related to North Sphere Regional Park (NSRP) (CC) ..................................... Page 381 Rec.: By Minute Motrion, provide City staff confirmation of contents for a future RFP for design work related to the NSRP and authorize the Parks and Recreations Commission to work with the selected design firm on the final park design. PUBLIC HEARING 17.RESOLUTION NO. 2022-07 to approve a Historic District Designation for Sandpiper Condominiums Circle 2 located on El Paseo (Cont’d from January 27th meeting) (CC) ........................................................................................................................ Page 385 Rec.: Waive further reading and adopt a resolution reaffirming the action of the Cultural Resources Preservation Committee, designating the Sandpiper Condominiums Circle 2, located on El Paseo, with a Historic District designation in accordance with Section 29.50.010 of the Palm Desert Municipal Code (PDMC). 18.RESOLUTION NO. 2022-08 to approve a Historic District Designation for Sandpiper Condominiums Circle 3 located on El Paseo (Cont’d from January 27 meeting) (CC) ........................................................................................................................ Page 441 Rec.: Waive further reading and adopt a resolution reaffirming the action of the Cultural Resources Preservation Committee, designating the Sandpiper Condominiums Circle 3, located on El Paseo, with a Historic District designation in accordance with Section 29.50.010 of the Palm Desert Municipal Code (PDMC). ADJOURNMENT Page 7 AGENDA FEBRUARY 10, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Agenda Page 8 THREE OPTIONS FOR PARTICIPATING IN THE MEETING Option 1 - To Participate by E-mail: 1.Send your comments by email to: CouncilMeetingComments@cityofpalmdesert.org E-mails received by 12:00 noon prior to the start of the meeting will be made part of the record and distributed to the City Council. This method is encouraged because it will give Councilmembers the opportunity to reflect upon your input. Emails will not be read aloud. Option 2 - To Participate and Provide Verbal Comments by Using Your Internet: 1.Access via https://www.cityofpalmdesert.org/zoom and click “Launch Meeting” or 2.Access www.zoom.us, click “Join Meeting” and enter Webinar ID 833 6744 9572 Option 3 - To Listen and Provide Verbal Comments Using Your Telephone: 1.Dial any of the following based on your location: (669) 900-9128 or (213) 338-8477 or (669)219-2599 or (971) 247-1195 or (253) 215-8782. If there are high volumes of calls, please continue dialing until you connect successfully. 2.Enter the Meeting ID: 833 6744 9572 followed by #. 3.Indicate that you are a participant by pressing # to continue. 4.You will hear audio of the meeting in progress. Remain on the line if the meeting has not yet started. 5.During the meeting, Press *9 to add yourself to the queue and wait for City Clerk staff to announce your name/phone number. The City Clerk will unmute your line when it is your turn to speak. Limit your comments to three (3) minutes. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies regarding any item on this agenda, are available for public inspection at City Hall and on the City’s website at https://www.cityofpalmdesert.org by clicking “Council Agenda” at the top of the page. Declaration of Posting: I, Níamh M. Ortega, Deputy City Clerk of the City of Palm Desert, do hereby certify, under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert City Council, Successor Agency for the Palm Desert Redevelopment Agency, and Housing Authority, was posted on the City Hall bulletin board no less than 72 hours prior to the meeting. Dated this 3rd day of February, 2022. Note: This agenda is subject to amendment up to 72 hours in advance of the meeting. Níamh M. Ortega _ Niamh M. Ortega, Deputy City Clerk Page 8 CITY OF PALM DESERT REGULAR PALM DESERT CITY COUNCIL (CC), SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY (SA), AND HOUSING AUTHORITY (HA) MEETING (VIRTUAL MEETING) DRAFT MINUTES Thursday, January 13, 2022 CALL TO ORDER – 3:01 P.M. Mayor Harnik convened the meeting. ROLL CALL Present: Mayor Pro Tem/Vice Chair/Vice Chairman Sabby Jonathan Councilmember/Director/Member Kathleen Kelly Councilmember/Director/Member Gina Nestande Councilmember/Director/Member Karina Quintanilla Mayor/Chair/Chairman Jan C. Harnik Staff Present: Todd Hileman, City Manager/Executive Director Robert W. Hargreaves, City Attorney Andrew Firestine, Assistant City Manager Janet M. Moore, Director of Finance Norma I. Alley, MMC, City Clerk/Secretary Niamh M. Ortega, Deputy City Clerk PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY None. ADJOURN TO CLOSED SESSION Mayor Harnik adjourned the meeting to closed session at 3:01 p.m. Page 9 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 2 A.Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: 1)(Successor Agency) Property: 18.73-acre site, located on Desert Willow Drive, northwest of Market Place (APNs 620-450-012, 013, 014). City Negotiator: Todd Hileman/Martin Alvarez Other Party Negotiator: Family Development Group, Inc. Property Owner: Successor Agency to Palm Desert Redevelopment Agency 2)(Successor Agency) Property: Approximately 93-acre portion of the 128-acre site, located west of Portola Avenue and south of Gerald Ford Drive (APNs 694-310-002, 003, and a portion of 694-310-006). City Negotiator: Todd Hileman/Martin Alvarez/Eric Ceja Other Party Negotiator: Refuge Palm Desert, LLC Property Owner: Successor Agency to Palm Desert Redevelopment Agency B.Conference with Legal Counsel regarding significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): 1)Potential cases: 2 RECONVENE THE CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MEETING – 4:00 P.M. Mayor Harnik reconvened the open session of the meeting at 4:00 p.m. a)Roll Call b)Pledge of Allegiance to the Flag – Councilmember Gina Nestande c)Inspiration/Invocation – Mayor Jan C. Harnik REPORT ON ACTION FROM CLOSED SESSION Relative to Item A1, City Attorney Hargreaves reported that direction was given and no reportable action was taken. Relative to Item A2, the City Council unanimously authorized a Purchase and Sale Agreement with the Refuge for the subject property and once finalized, the agreement will be available for the public to review. AWARDS, PRESENTATIONS, AND APPOINTMENTS None. Page 10 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 3 MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmember Quintanilla reported on her attendance at a recent McCallum Theatre Educational Policy meeting and highlighted the accomplishments of local schools throughout the pandemic. She also shared that McCallum’s Open Call was scheduled to move forward with applications due January 19, 2022. She recognized Ms. Donna Jean Darby’s recent resignation from the Cultural Arts Committee, and shared that she had been active on several committees throughout her years of service. Councilmember Quintanilla requested a blinking light be installed on San Pablo to allow pedestrians to safely cross as there have been some incidents with drivers making left turns and u-turns. She also requested that staff explore how a recent allocation of $25 million for community resilience and dedicated to extreme heat could be captured for Palm Desert. Mayor Pro Tem Jonathan reported he attended a number of meetings, and highlighted his participation in the Desert Willow management Request for Proposals interviews earlier in the week. The five-year contract with Kemper Sports to manage Desert Willow Golf Resort has reached the end of its term. Mayor Harnik noted there had been an increase in the incidents of graffiti throughout the City and commended the Public Works staff for their quick response to abate the graffiti. She encouraged the public to utilize Palm Desert’s “In Touch” app to report these and other issues they may notice around the city so staff can address them efficiently. She shared that January 17, 2022 was Martin Luther King, Jr., Day. She also noted there would be a ceremony at 1:00 p.m. on January 27, 2022 in the Civic Center Park for International Holocaust Remembrance Day. Lastly, she reminded the Council of the December 16 request of then Mayor Kelly for a discussion relative to a potential ballot initiative regarding redistricting. Noting the time period over the holidays and a recent COVID surge, the item was not ready to present at the current meeting, so it would be presented at the January 27, 2022 meeting. NON AGENDA PUBLIC COMMENTS Ms. Joan Speer spoke in favor of a five-district system. Ms. Louise Kermode spoke in opposition to the Lupine Plaza street closure. CONSENT CALENDAR All matters listed on the Consent Calendar are considered to be routine and may be approved by one (1) Minute Motion. 1.MINUTES of the regular City Council, Successor Agency, and Housing Authority Meeting of November 18, 2021 (CC) (SA) (HA) Rec.: Approve as presented. Page 11 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 4 2.APPROVE 2021 CLAIMS AND DEMANDS WARRANTS: City: 11/30/2021, 12/7/2021, 12/10/2021, 12/14/2021, 12/17/2021, 12/20/2021 and 12/28 - 12/31/2021 (CC); Successor Agency: 12/3/2021 and 12/17/2021 (SA); and City and Housing Authority: 12/3/2021, 12/10/2021 and 12/17/2021 (CC & HA) Rec.: Receive and file. 3.REQUEST TO AUTHORIZE findings that the State of California continues in a Governor-declared state of emergency (AB361) to combat the COVID epidemic, that state and local health officials are recommending social distancing, and consequently that the City Council and its other Brown-Act bodies may continue to employ remote teleconferencing under Government Code Section 54953(e) (CC) Rec.: The City Council hereby finds the State of California continues in a Governor-declared state of emergency to combat the COVID epidemic, that state and local health officials are recommending social distancing, and consequently that the City Council and its other Brown-Act bodies may continue to employ remote teleconferencing under Government Code Section 54953(e). 4.ORDINANCE NO. 1373: Adopt an urgency ordinance of the City Council of the City of Palm Desert, California, amending Chapter 25.34 (special use provisions) and adding Chapter 26.30 (urban lot splits) of the City of Palm Desert Municipal Code relating to urban lot splits and two-unit projects and determining the ordinance to be exempt from CEQA (CC) Main Motion: Waive further reading and readopt Urgency Ordinance No. 1373. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried 5.RESOLUTION NO. SA-RDA-088: Adopt a Recognized Obligation Payment Schedule and Administrative Budgets for the fiscal period from July 1, 2022 through June 30, 2023, pursuant to Health and Safety Code Section 34177 and taking certain related actions (SA) Rec.: Waive further reading and adopt. Page 12 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 5 6.RESOLUTION NO. SA-RDA-089: Approve a Purchase and Sale Agreement between the Successor Agency to the Palm Desert Redevelopment Agency and Refuge Palm Desert, LLC. for an approximately 93-acre site west of Portola Avenue and south of Gerald Ford Drive (SA40990A) (SA) Rec.: By Minute Motion, that the Successor Agency Board waive further reading and adopt Resolution No. SA-RDA-089, approving a Purchase and Sale Agreement (PSA) between the Successor Agency to the Pam Desert Redevelopment Agency (SARDA) and Refuge Palm Desert, LLC. (Developer), for an approximately 93-acre site, west of Portola Avenue and south of Gerald Ford Drive, with a purchase price of $5,595,105 (Fair Market Value) (APNs 694-310-002, 003, and a portion of 006). 7.RESOLUTION NO. SA-RDA-090: Approve a Purchase and Sale Agreement between the Successor Agency to the Palm Desert Redevelopment Agency and Family Development Group, Inc. for an 18.73-acre site known as Desert Willow Lot Pad C (SA4100A) (SA) Main Motion: Continue item to a date uncertain. Moved by: Jonathan/Kelly Vote and Action: 5 Yes/0 No. Motion Carried 8.RESOLUTION NO. 2022-01: Authorize the destruction of records from the Department of Development Services, as indicated on the records retention schedule (adopted October 29, 2020). Records from 1996 through 2019 (CC) Rec.: Waive further reading and adopt. 9.REQUEST TO APPROVE Amendment No. 2 to the Agreement for Law Enforcement Services with the County of Riverside (C38780) (CC) Main Motion: Continue item to March 10, 2022, meeting or as soon as possible. Moved by: Jonathan/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried Page 13 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 6 10.REQUEST TO APPROVE Amendment No. 3 to contract with Michael Baker International, Inc. of Palm Desert, California for On-Call City Surveying, City Engineer and Plan Review Services in an amount not to exceed $305,000 (C40520) (CC) Rec.: By Minute Motion: 1.Approve Amendment No. 3 to Contract No. C40520 with Michael Baker International, Inc. of Palm Desert, California for On-Call City Surveying, City Engineer and Plan Review Services in an amount not to exceed $305,000; 2.Appropriate $180,000 from Unobligated General Funds to Account No. 1104300-4301000; and 3.Authorize the City Manager or their designee to execute said Amendment and any additional contract amendments. 11.REQUEST TO APPROVE a backup location for the Open-Air shopping market on San Pablo (CC) Main Motion: Authorize the road closure on San Pablo Avenue between Magnesia Falls and Fred Waring, Saturday, and Sunday from January 15 through May 15, 2022, in the event College of the Desert’s Street Fair is cancelled. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried 12.REQUEST TO APPROVE a declaration of surplus property, and authorize to donation or disposal as appropriate (CC) Rec.: By Minute Motion, declare the item listed on the attached “Exhibit A” as surplus, and grant authorization to donate or dispose as appropriate. 13.RECEIVE AND FILE the resignation of Juan Mireles from the Architectural Review Board and the Housing Commission. (CC) Rec.: Receive and file with sincere regret. 14.RECEIVE AND FILE the resignation of Donna Jean Darby from the Cultural Arts Committee. (CC) Rec.: Receive and file with sincere regret. Main Motion: Approve all items on the consent calendar, as presented, with the exception of Items 4, 7, 9 and 11 which were considered and moved separately. Moved by: Nestande/Kelly Vote and Action: 5 Yes/0 No. Motion Carried Page 14 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 7 ACTION CALENDAR 15.ORDINANCE NO. 1374: Update Palm Desert Municipal Code sections relative to organic waste recycling requirements to comply with Senate Bill 1383 (1st reading) (CC) Main Motion: Waive further reading and pass to second reading amending Chapters 1.04 (General Provisions), 1.08 (Citations for Code Violations), 1.12 (General Penalty), 3.30 (Purchasing System and Public Works Contracts), 8.12 (Trash Enclosures), 8.16 (Solid Waste), 8.17 (Recyclable Materials), 8.19 (Automated Collection of Solid Waste, Recycling and Green Waste for All Residents), 8.80 (Administrative Remedies), 8.81 (Administrative Citations), 15 (Building and Construction), and 24.04 (Water-Efficient Landscape) of the Palm Desert Municipal Code to update organic waste recycling requirements for residents and businesses in compliance with state law (California Senate Bill 1383). Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried 16.RESOLUTION NO. 2022-02: Rescind Resolution No. 2021-25 and updating the Homelessness Taskforce Bylaws; and appoint members to serve on the Homelessness Taskforce (CC) Main Motion: 1. Approve Resolution No. 2022-02 rescinding Resolution No. 2021- 25 and updating the Homelessness Taskforce Bylaws; and 2.Appoint the following to the Homelessness Taskforce for a term ending June 30, 2023: •Patricia Ann Munson, Community Member •Randy Florence, Business Member •Davis Meyer, Member At Large; and 3.Appoint the following to the Homelessness Taskforce for a term ending June 30, 2025: •Jeremy Wittie, Community Member •Diane Vines, Business Member •Cindy Burreson, Alternate Moved by: Quintanilla/Kelly Vote and Action: 5 Yes/0 No. Motion Carried Page 15 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 8 17.REQUEST TO APPROVE Amendment No. 1 to Contract No. C37040B with Southstar Engineering and Consulting of Riverside, California in an amount not to exceed $350,000 for additional construction management services related to President’s Plaza East and West Parking Lot Improvements (Project No. 758-14) (CC) Main Motion: 1. Approve Amendment No. 1 to Contract No. C37040B with Southstar Engineering and Consulting of Riverside, California in an amount not to exceed $350,000; 2.Appropriate $350,000 from the Unobligated General Fund to Account No. 4004692-4400100 as well as the transfers in/out for the appropriation; and 3.Authorize the City Manager or designee to execute said amendment. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried 18.REQUEST TO APPROVE the annual Council Liaison Assignments for calendar year 2022. (CC) Main Motion: Approve as presented. Moved by: Quintanilla/Kelly Vote and Action: 5 Yes/0 No. Motion Carried 19.REQUEST TO APPOINT Two (2) City Councilmembers to the Palm Desert iHUB Advisory Board (CC) Main Motion: Appoint Mayor Harnik and Councilmember Quintanilla to the Palm Desert iHUB Advisory Board. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried 20.REQUEST FOR DIRECTION for a “Bicycle Rack Incentive Program” for private commercial properties (CC) Main Motion: 1. Move forward with a “Palm Desert Bicycle Rack Incentive Program” for private commercial properties; and 2.Utilize the Resource Preservation and Enhancement Committee to assist in narrowing the field of possible choices taking into account both practicality and directive branding; and 3.Utilize Engage Palm Desert to solicit public input in conjunction with the committee’s work; and 4.Defer the issue of a subsidy cap until the previous steps are complete. Moved by: Kelly/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried Page 16 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 9 21.REQUEST FOR DIRECTION on the meeting format for Committee, Commission and Council meetings (CC) Rec.: By Minute Motion, provide staff with direction to continue committee, commission, and Council meetings as virtual meetings under the provisions of AB 361 with additional direction to continue to evaluate public health data and available options with the pending technology upgrades to the Administrative Conference Room and the remodel of the Council Chambers. Main Motion: Direct staff to continue to conduct virtual meetings with the intent to convert to hybrid meetings when the Council Chamber and Administrative Conference Room technology is in place to do so, assuming public health considerations warrant hybrid meetings at that time. Moved by: Jonathan/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried PUBLIC HEARING 22.ORDINANCE NO. 1375: Amend the Palm Desert Municipal Code, Chapter 25, modifying Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and Chapter 5, Section 5.11 “Disclosures Upon Transfer of Residential Property” regulating the public engagement process (1st Reading) (CC) Staff provided a report. Mayor Harnik declared the public hearing open and continued the item to the January 27, 2022 meeting. Main Motion: Continue the public hearing to the January 27, 2022 meeting. Moved by: Quintanilla/Kelly Vote and Action: 5 Yes/0 No. Motion Carried Page 17 DRAFT MINUTES – FOR DISCUSSION PURPOSES ONLY JANUARY 13, 2022 City Council, Successor Agency to the Palm Desert Redevelopment Agency, and Housing Authority Meeting Draft Minutes Page 10 23.Redrawing of Council Member District Boundaries (CC) Staff presented the report in conjunction with Mal Richardson, Attorney, Best, Best & Krieger, LLP. Mayor Harnik declared the public hearing open, and receiving no public comment, declared the public hearing closed. Main Motion: Direct Consultant to bring back map options for consideration at the earliest convenience. Moved by: Nestande/Quintanilla Vote and Action: 5 Yes/0 No. Motion Carried CITY MANAGER COMMENTS None. ADJOURNMENT With City Council, Successor Agency, and Housing Authority concurrence, Mayor Harnik adjourned the meeting at 6:24 p.m. JAN C. HARNIK MAYOR/CHAIR/CHAIRMAN ATTEST: NÍAMH M. ORTEGA, DEPUTY CITY CLERK AND SECRETARY Palm Desert City Council Successor Agency to the Palm Desert Redevelopment Agency Housing Authority Page 18 C it y of Palm Desert Check Register I /2 1 /2022 -1 /2 1 /2022 Bank ID C heck N umber Vendor Name Acco unt N umber Tran saction Desc Invoice A m o unt Paid 00 0 1528786 ACCURATE FIRST AID SERVICES LLC 11 04330 42 19000 FIRST AID SUPPLIES -CO RPY ARD C-138 0 128 .87 00 0 1528786 ACCU RATE FIR ST AID SERV ICES LLC I 104340 42 19000 FIR ST AID SU PPLI ES -C ITY HALL C-132 1 186 .19 00 0 1528786 ACCURATE FIRST AID SE RV ICES LL C 1104340 42 19000 FIRST AID SUP PLI ES -C ITY HALL C-1373 295 .34 00 0 152878 7 ALARM MON ITORING SERV ICES INC 11 04330 4309000 ALARM MONITORING -CO RP ORAT ION 93422 315 .00 00 0 1528787 ALARM MONITORI NG SERV ICES IN C 11 043 40 4309000 ALARM MONITORING -CITY HALL 93421 288 .00 00 0 1528787 ALARM MON ITORING SER VI CES INC 11 04340 4309000 ALARM MONITORIN G -CIT Y HALL 93420 144 .00 00 0 1528787 ALA RM MON ITORING SERV ICES IN C 11 04344 4309000 ALARM MON ITORING -PORTOLA C 93283 225 .00 00 0 152 8788 ALPHA MED IA LLC I 104417 4322200 Pres id ent's Pl aza Radio Ad 5992 18-2 10000 00 0 152 8788 ALP HA MED IA LL C I 1044 17 4322200 Pres id en t's Pl aza Radio Ad 5992 18-1 650 .00 00 0 1528788 ALP HA MED IA LLC 1104417 4322200 Pre side nt's Pl aza· Radio Ad 5992 16-2 175 .00 00 01528788 AL PH A MED IA LL C 1104417 4322200 Pre sident's Pl aza Radio Ad 5992 16-1 1,075 .00 00 0 1528 788 ALPH A MEDIA LLC 11 044 17 4322200 Pre sident's Pl aza Rad io Ad 5992 15-2 140 .00 00 0 1528788 ALPHA MEDIA LLC 11 044 17 4322200 Pre sident's Pl aza Radio Ad 5992 15-1 860 .00 00 0 1528789 AMERIGAS 11 0433 1 4217000 SUPPLY AS NEEDED GAS TO THE 3130325480 16000 00 0 1528790 ARMSTRONG GROWE RS 11 046 10 433200 1 nowers -CC Park 214770 2 12.05 00 0 152879 1 ARY AN , STEVE 1104154 43 11 500 CJPIA Conf -Mile age MILEAGE10 082 1 175 .00 00 0 152879 1 ARY AN , STE VE 11 04 154 43 12000 CJPIA Co nf -Meals MEALS I 0082 1 177.50 00 0 152879 1 ARY AN , STE VE 11 04 154 4312000 CJPIA Co nf -Parking PARKIN G I0082 1 70 .00 00 0152879 1 ARY AN , STEVE I 104 154 43 12000 CJPI A Co nf -Lodging LODG INGI00821 360 .86 00 0 152879 1 ARY AN , STEVE 11 04 15 4 43 12000 CJPI A Co nf -Data DAT AACCESS I 0082 1 7.43 00 0 1528792 ASSURE HIRE INC 11 04 15 4 4309000 Background Check 3 1949 387 .00 00 0 1528 793 B S N SPORT S LLC 11 046 10 42 19000 ove rsee d enh anci ng too l 9 15072078 225.45 00 0 15 28795 BAKER , WALL ACE V. 11 044 70 4309000 Hearing Exami ner 4 1 396 .00 00 0 152879 7 BASSA M AL-B EITAWI 11 04300 4363000 IT E Member ship ITE -B A2022 33 5.00 00 0 1528798 BECK OIL INC 11 0433 1 42 17000 SUPPLY OF GAS AND DIESE L FUEL 48374 1 3,558.78 00 0 1528798 BEC K OIL INC 11 0433 1 42 17000 SU PPLY OF GAS AND DI ESE L FUEL 485486 4,6 19 .36 00 01528800 CACEO 11 044 70 43 12000 Webinar 5.26.22 Rit chey 200019 15 4 38 .00 Re port Date 0 1/2 1/2022 City & Housing Page Page 19 City o f Palm De sert Check Register 1/2 1/2 022 -1/2 1/2022 Bank ID Check Number Vendor Name Account Number Trans action Des c Invoice A mount Paid 00 0 152880 3 CDW LLC 11 04 190 42 12000 Tec h Equipment P637765 166 .36 00 0 15 28803 CDW LL C 11 04 190 421 2000 Tec h Eq ui pment P6434 15 14.22 00 0 1528803 CDW LL C I 104 190 42 12000 Tec h Eq uip ment Q l 4 1985 116 .25 00 0 1528803 CDW LL C 11 04 190 42 12 000 Tec h Eq uipm ent N948532 79.45 00 0 15288 03 CDW LL C 11 04 190 4212 000 Tech Eq uipm ent Q337 3 I I 432.49 00 0 1528803 CDW LL C 1104 190 42 12000 Tec h Equi pment Q44872 7 102 . 13 00 0 1528804 CITYSOU RCE D INC 11 04 190 4336000 Sa les Tax -Age nda MGMT CS-000244S I-S T 775 .00 00 0 1528806 COAC HELL A VALL EY WATER DIST 11 04330 435 1000 I 052 CO RP ORAT ION YA RD 3 15 I 77 847704 DC2 1 448 .06 00 0 1528806 COAC HELLA VALL EY WAT ER DIST 11 04 34 0 435 1000 (A} 1057 C ity Ha ll 3 15 I 87847714D C2 1 435 .19 00 0 1528806 COAC HELL A VALL EY WATE R DIST I 104344 435 1000 (B) I 05 7 Po rt ola CC 3 15 I 878477 14 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ELECTRICA L DIST INC. 1104340 433 1000 light ing supp lies 5725 -1 032808 36 .24 00 0 15288 08 COUNTY OF RIVERS ID E-EM ERG ENCY 1104 154 421 9 100 FY 2 I /22 Emergen cy Se rvices 1ST QTR FY 2 1/22 16,354.70 00 0 1528809 CU LLI GA N OF ONTARIO 11 04330 4309000 3 WAT ER DI SPENSE RS -CO RPYARD 724900 77.00 00 0 1528809 CU LLI GA N OF O NTARIO 11 04330 4309000 3 WATE R DISPENSE RS -CO RPY ARD 727323 77.00 00 0 1528809 CU LLI GAN OF ONT ARIO 11 04330 4309000 3 WAT ER DISPENSE RS -CO RPY ARD 729758 86 .00 00 0 1528 809 CUL LI GAN OF ONTARJO I 104 340 43 09000 3 WAT ER DISPENS ENS ERS-CITY H 72 489 7 77.00 00 0 152 8809 CU LLI GAN OF ONT ARIO 11043 40 4309000 3 WAT ER DIS PENS EN SERS-CITY 1-1 727 32 1 77.00 00 0 152 8809 CUL LI GAN OF ONTA RIO 11 04340 4309000 3 WAT ER DISPENSE NSE RS -CITY H 729756 86 .00 00 0 1528809 CU LLI GAN OF ONT ARIO 11 0434 4 4309000 I WAT ER DISPENSE R -PORTO LA CC 72 4904 29 .00 Re po rt Date 01 /2 1/2022 City & Housing Page 3 Page 20 City of Palm Desert Check 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ENTERPRISE FM TRUST 11 0433 1 4334000 22MG5X MA INTENANCE FBN4375244 90 .83 00 0 1528826 ENTERPRJSE FM TRUST 11 0433 I 4334000 22MG63 MA INTENANCE FBN4375244 90 .83 00 0 1528826 ENTERPRISE FM TRUST 11 0433 I 4334000 22MP 7V MA INTENANCE FBN4375244 90.83 00 0 1528826 ENTERJ>RJSE FM TRUST 11 0433 1 4334000 22V3QW MA INTENANCE FBN4375244 90 .83 00 0 1528826 ENTERPRISE FM TRU T 11 0433 1 4334000 22V3MJ MAINTENANCE FBN4375244 90 .83 00 0 1528826 ENTERPRISE FM TRUST 11 0433 I 4334000 22V3NF MA INTENANCE FBN4375244 90 .83 Re port Date 01 /2 1/2022 City & Housing Page 5 Page 21 City of Palm De se rt C heck Register 1/2 1/2022 -1 /2 1/2022 Bank ID Check Number Vendor Name Account Number Transaction De sc Invoice Amount Paid 00 0 1528841 HAMMER PLUMB ING AND PUM PIN G INC . 11 046 11 433 1000 CA HUIL LA HILL S PARK RESTROOM T 188 11-1 380.00 00 0 1528841 HAMMER PLUMBING AND PUMP ING INC . 11 046 11 4331000 CAI-IU ILLA HI LLS PARK RESTROOM T 18812 -1 380 .00 00 0 1528843 HIGH TECH IRRIGAT ION INC. 11 04614 4337001 irr igat ion supplie s -LMA 9 70 11 80 40 .69 00 0 1528845 HORIZON PROFESSIONAL LANDSCAPE 11 046 14 433700 1 DESERT WILLOW LOWER PARK ING LO 6222 996 .00 00 0 1528846 HR GREEN PAC IFIC INC 11 04420 430 9000 Deputy Building Official 149379 14 ,976 .25 00 01528848 IMAGE SOURCE 11 04 190 4342000 Usage and supplies -New 60 mo 25ARl380 109 98173 00 0 1528848 IM AGE SOURCE 1104 190 4342000 Usage and supp li es -New 60 mo 25A Rl3 52 130 1,264 .52 00 01528848 IM AGE SOURCE 1104 190 4342000 Usage and supplie s -New 60 mo 25AR 1366735A 1,597.43 00 0 1528849 IMP ERIAL IRRIGAT ION DISTRICT 1104250 4351400 S/W COR CC WSH 50 I 55642 -D C2 I 86 .10 00 0 1528849 IM PERIAL IRRIGAT ION DISTRICT 1104250 4351400 S/W COR CC WS H 50 I 55645 -DC2 I 76 .04 00 0 1528849 IMP ERIAL IRRIGAT ION DISTRICT 11 04250 4351400 40996 WASH STTRF SIGNAL 50524526-DC2 I 115.15 00 0 1528849 IMP ERIAL IRRIGAT ION DISTRICT 11 04250 4351400 33 108 Mont Safety Lt 50650535-DC2 I 138 .28 00 0 1528850 INTERNAT IONAL MUN ICIPAL SIGNAL A SOC IAT ION I 104300 4362000 2022 membership renewal s 5 16 I 7-2022 270 .00 00 01528851 I PERMIT 11 00000 322 11 00 REFUND HVRC 2 l-092 I HVRC2 l-092 I 136 .15 00 0 1528852 IRON MOUNTA IN INC 11 04 190 4336000 Media vaul ting -offs ite stora 202464972 289 .55 00 0 1528854 JOE GONSALVES & SON CORP I 104112 4309000 Legis lat ive advocates . $3 ,000/ 159588 3,000 .00 00 0 1528855 JOSLYN SEN IOR CENTER 11 04800 4389300 FY 2 1 /22 Jos lyn Center Quarter 12368 58 ,581 .21 00 0 1528856 JUNK EX PRESS , THE 11 04470 4305500 Abate #2 1-1842 2 1009 1 475 .00 00 0 1528858 KART AL CORPORAT ION , THE 11 042 11 430600 1 Car was hes -CO PS 050 122-1 269 .70 00 0 1528858 KART AL CO RPORAT ION , THE 11 0421 1 430600 1 Car was hes -COPS 050 122 -2 223 .6 5 00 0 1528 860 KITSC H PI X 110411 0 4309000 State of The City 202 1 3859 6,500.00 00 0 1528860 KITSCH PIX 11041 10 4309000 State of The City 202 1 PDAC 3860 3,175 .00 00 0 1528863 LOCK SHOP INC. 11 046 10 4219000 keys -CC Park BB00549277 35 .56 00 0 1528863 LOCK SHO P INC . 11 046 10 433 1000 lock service -CC Re stroom s A I 33506 11 000 00 0 1528864 LOWE'S HOME CENTERS INC. 11 04250 42 19000 traffic supp li es 902850-0 I 0422 46 .52 00 01528864 LOWE 'S HOME CENTERS INC. 11 04340 42 19000 office hea ters 907722-12202 1 196 .14 00 01528864 LOWE'S HOME CENTERS INC . 1104340 4331000 wa ll repairs 90 176 1-1 2282 I 4 1.1 7 Re po rt Date 01 /2 1/2022 City & Housing Page 7 Page 22 City of Pa lm De se rt Check Register I /2 1 /20 22 - I /2 I /2022 Bank ID C heck N umber Vendor Name Account N umber Transaction De s c Invoice Amount Paid 00 0 15288 73 ON TH E FLY T ERM IT E & PES T CONTROL I 1046 14 4392 10 1 ROD ENT CONTR OL -ENT RAD A DEL P 272 1 11 000 00 0 15288 74 OPENGO V INC 11 04 190 4336000 Ope nGov proc urem ent softwa re INV00006 !68 37,19 1.00 00 0 15288 75 OZZ IE'S INTE RNA TI ONAL T IRE & AU TO I 10433 I 4334000 SU PPL EMEN TAL GENE RAL FLEET REP 2839 1 1,735 .95 00 0 1528876 PAC IFIC WES T AIR CON 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SOUTHWEST AQUATICS 11 046 14 4392 10 1 RI M WATER FEATURE ENTRADA DEL 12-18499 773 .53 00 0 1528905 S PAN IS HO NE PLUS 11044 17 432 1900 Redi stri c ting trans la tion 00 11 040 56 172 00 0 1528906 S PRINT SOLUTIONS INC 11 0433 1 4334000 L EASE D V EH IC LE MONTHLY G PS 24 1265004-044 860 .70 00 0 1528907 ST FRAN C IS EL EC TRI C LL C 11 04250 4332500 TRAFF IC S IGNAL PREV ENTATIV E 200 168 18 1,526.40 00 0 1528908 STAPLES BUSIN ESS ADVANTAGE 11 04470 42 11 000 Code S upplies 3495900023 79 .76 Report Date 0 1/2 1/2022 City & Housing Pa ge 1 1 Page 24 C ity of Palm Desert Check Register I /2 I /2022 -I /2 1 /2022 Bank ID C heck N umbe r Vendor Na m e Acco unt Number Transaction De sc Invoice A mount Paid 00 0 15289 18 VERIZON WIRELESS I 104 11 0 4365000 City Co un ci l Ce ll Phone s 9895743783-1 136 .32 00 0 15289 18 VERI ZON WIRELESS I 104 111 4365000 City Clerk Ce ll s 9895743783-8 172 .82 00 0 15289 18 VERI ZON WIREL ESS I 104 13 0 4365000 City Manager Ce ll s 9895743783-6 2 14.47 00 0 15289 18 VERIZON WIRELESS I 104 15 0 4365000 Finance Ce ll s 9895743783 -7 132 .8 I 00 0 15 28918 VERI ZON WIRELESS I 104 154 4365000 Hum an Re so ur ces Ce ll s 9895743783 -9 108 .76 00 01528918 VERIZON WIRELESS I 1042 11 430600 1 CO PS Ce ll Phones 9895743783 -3 190 .87 00 015289 18 VERIZON WIRELESS I 104300 4365000 Public Works Ce ll Phone s 9895743783-4 1,644 .50 00 0 15 289 18 VERIZON WIRELESS 11 04420 4365000 Bui lding & Safety Ce ll s 9895743783-5 432 .12 00 0 15289 18 VERIZON WIRELESS I 104470 4365000 Co mm . De v. Ce ll Ph ones 9895743783 -2 696 .83 00 0 15 289 19 VINTAGE ASSOC IATES I 1046 1 I 4332001 LMA 16 -PARKS 222982 24 ,321.00 00 0 15289 19 VINTAGE ASSOC IATES I 1046 1 I 4391000 LMA 16-S P CO MM UN ITY GARDENS 222982 779 .00 00 0 1528920 WAG E WORKS IN C 11 04 15 4 4309000 FY 21 /22 Fle xibl e spe ndin g ace INV 3266306 212 .75 00 0 1528923 WEST COAST ARBORISTS INC I 1046 14 4337001 HARDWOOD -MEDI ANS 179808 20 ,534 .00 00 0 1528923 WEST COAST ARB ORISTS INC I 104614 4392 10 1 HARDWOOD -ENTRADA DEL PASEO 179808 5,800 .00 00 0 1528923 WEST COAST ARBORISTS INC 1104614 4337001 PALMS -MEDIANS 17 9795 2,332 .00 00 0 1528923 WEST COAST ARBORI STS IN C I 1046 14 4392 IOI PALMS -ENTRADA DEL PASEO 17 9795 2,156 .00 00 0 1528924 WESTERN PUMP INC I 10433 1 4334000 VEHICLE CO MPLI ANCE TEST ING AND W37779 700.46 00 0 1528926 XEROX FIN ANC IAL SERV ICES I 104 190 4342000 New 60 month cop ier lease -Fu 29603 13 2,85 1.42 00 0 152892 7 XPRESS GRAP HI CS I 1044 17 436 1000 EPPBID Broc hur e 22-45089 194.43 00 0 15 28927 XPRESS GRA PHI CS I 1044 17 436 1000 City Hall Closed Signs 21 -45051 120 .79 00 0 15 28929 ZERO WASTE USA 11 046 11 42 19000 DOG LITT ER BAG S -PARK S 456869 2,482 .56 General Fund 653,224.98 00 0 15289 12 AL TUM GROU P, TH E 2 11 43 I I 4332000 PROF ESS IONAL SERV ICES FOR WHIT 7250 4,257 .50 Gas Tax(2106,2107,2107.5) 4,257.50 00 0 1528825 ELECNOR BELCO ELECTRIC INC. 2 130000 2060000 RETENT PO Pl 15302 /C39260 14-055 1-002 -4 , 175.23 00 0 152 8825 ELECNOR BELCO ELECTRIC IN C. 2 134250 5000906 TRAFF IC SIGNAL HARDW ARE UPGRA D 14-055 1-002 83 ,504 .55 Report D ate 0 1/2 1/2022 City & Housing · Pa ge 13 Page 25 City of Palm Dese rt Check Register 1/2 1/2 02 2 - I /2 I /2022 Bank ID C heck N um her Vendor Name Account Number Transaction Desc Invoice A mount Paid New Cons truction Tax 308,204.31 00 0 1528887 RECYCLE A WAY LLC 2364 195 42 19000 tra sh cans for recycle b in RA-19326 O RD ER# 397.7 1 00 0 1528922 W EBSTAURANT STORE INC 2364 195 4219000 SU PPLY AS NEEDED RECYC LI NG 7 143 1538 2 ,300.7 1 Recy cling Fund 2,698.42 00 0 1528806 COAC H ELL A VA LL EY W ATE R D IST 2424549 435 1000 11 41 AQUATIC CENTER 5 1254 1849896122 1 6 77.23 00 0 15288 14 DESERT ALARM INC 2424549 433 1 IOI a larm moni to rin g -AC 390429 177.00 00 0 1528830 FAM ILY YMCA OF TH E DESERT 2424549 4309000 AQUA T IC CENTER : OTHER EX P ENSES 6370 8,358.2 1 00 01528830 FAM ILY YMCA OF TH E DESERT 2424549 4309300 AQUA T IC CENTE R : M ANAGEMENT FEE 6370 I 3,750 .00 00 0 1528830 FAM IL Y YMCA OF TH E DESERT 2424549 480 11 00 AQUA T IC CENTER : FOOD/MERCHANDI 6370 213 .61 00 0 15 28830 FAM ILY YMCA OF THE DE ERT 2424549 4802 10 1 AQUATIC CENTER CONTRACTED LAB 6370 65 ,296 .19 00 01528903 SOUTH ERN CA LIFORN IA ED ISON 2424549 435 1400 73751 Magnesia Falls Dr POOL 700019219986JA22 8,211 .87 00 01528921 WATERLIN E TECHNOLOGIES INC 2424549 42 111 00 AQUA T IC CENTER 55566 13 699 .13 00 0 152892 1 WATERL INE TEC HNOLOG IES INC 2424549 42 111 00 AQUATIC CENTER 5560636 325 .94 00 0 152892 1 WATERLINE TECHNOLOG IES INC 2424549 42 111 00 AQUATIC CENTER : 556 184 1 391. 13 00 0 1528921 WATERLINE TECHNOLOG IES INC 2424549 42 111 00 AQUATIC CENTE R : 556250 1 312 .91 00 0 152892 1 WATERL INE TECHNOLOG IES INC 2424549 421 11 00 AQUATJC CENTE R : 556328 1 286 .83 00 0 152892 1 WATERL I NE TECHNOLOG IES INC 2424549 433 1 IOI AQUATJC CENTER 5562059 3,750 .00 Aquatic Center 102,450.05 00 0 1528823 EA RTH ESSEN TI ALS LLC 2434 195 4395100 CANNA BIS RE BA TE 12/15/2 1 EA RTH 2 1,234 .68 00 0 152886 1 LEAF AT 73740 LLC 2434 195 4395100 CANNA B IS REBATE 12/7/2 1 LEAF 33 ,08 1.30 00 0 1528862 LIBRA CRAFTED BY HOTN 2434 195 4395 100 CANNAB IS REBATE I 2/15/21 LI BRA 66,000.55 00 0 1528879 PALM DESE RT HWY 111 E . RETA IL LLC 2434195 4395100 CANNA BI S REBATE-HWY 111 12/23 /21 WEST I 27,332 .86 00 0 1528879 PALM DESE RT HWY 111 E. RETA IL LL C 2434 195 4395 100 CANNA B IS REBATE- M ELANI E PL 12/23 /21 WEST2 13,539.4 1 00 0 1528880 PALM ROY ALE CO LL EC TIV E INC 2434 195 4395100 CANNAB IS R EBATE 12/17/2 1 PALM R 5 1,443 .83 Ca nnabi s Compliance Fund 212 ,632.63 Rep o rt Date 01 /2 1/2022 City & Housing Pa ge 15 Page 26 C ity of Pa lm Dese rt Check Register I /2 I /2022 -I /2 1 /2 022 Bank ID C heck N umber Vendor N am e A ccount N umber Trans action Des c Invoice A mount Paid 00 0 15288 06 COAC HELLA VALL EY WAT ER DIST. 27 54687 435 1000 6 I 050 La Paloma II 31517384 7700DC2 I 60 .98 00 0 15 28806 CO ACHELLA VALL EY WAT ER DIST. 2754693 4351000 3 105 0 La Paloma Ill 3 15 17 3847700 DC2 I 38 .76 00 0 15 28806 COAC HELL A VALL EY WATER DIST. 2754694 4351000 7 I 050 Sandpiper 3 I 5 I 73 847700 DC2 I 62 .15 00 0 1528806 COAC HELLA VALLEY WATER DIST. 2754695 435 1000 8 I 050 Sandpiper 3 15 I 73847700 DC2 1 63 .32 00 0 1528806 COAC HELL A VALLEY WATER DIST. 2754696 435 1000 4 I 050 Ho vley Court West 3 15173 84 7700 DC2 I 48 .04 00 0 1528806 COAC HELL A VALLEY WATER DIST. 2754697 435 1000 14 1050 Palm Co urt 3 15 I 73 847700 DC2 1 3 1.66 00 01528845 HORIZON PRO FESS IO NAL LANDSCA PE 2754686 4332 100 tree branch removal -La Palom 6 175 495 .00 00 0 1528845 HO RJ ZON PROF ESS IONA L LANDSCAPE 2754643 4332000 LMA 7 DIAMONDBACK 6225 100 .00 00 0 152 8845 HORI ZON PROF ESS IONAL LANDSCAPE 2754680 4332000 LMA MONT EREY MEA DOWS 6225 12 5.00 00 0 1528845 HORIZON PROF ESS IONAL LANDS CA PE 2754681 4332000 LMA 7 TH E GLEN 6225 260.00 00 0 1528845 HORJ ZON PROF ESS IONAL LA NDSCAP E 2754682 4332000 LMA 7 HOVL EY ESTATES 6225 135 .00 00 0 1528 845 HORIZON PROF ESS IONAL LANDSCAPE 2754683 4332000 LMA 7 SONATA I 6225 325 .00 00 0 1528845 HORIZON PROF ESS IONAL LANDSCAPE 2754684 4332000 LMA 7 SONATA II 6225 450 .00 00 0 1528845 HORIZON PR OFESS IONAL LANDSCAPE 2754685 4332000 LMA 7 HOVL EY CO LL ECT ION 6225 350 .00 00 0 1528845 HORJ ZON PROFESS IONAL LAN DS CA PE 2754686 4332000 LMA 7 LA PALOMA I 6225 145 .00 00 0 15 28845 HORI ZON PROF ESS IONAL LANDS CA PE 2754687 4332000 LMA 7 LA PALOM A 11 6225 145 .00 00 0 1528845 HORIZON PROFESS IONAL LAND SCA PE 2754693 4332000 LMA 7 LA PALOM A 111 6225 125 .00 00 0 15 28845 HORIZON PROF ESS IONAL LANDSCAPE 275 4694 4332000 LMA 7 SANP IPER COU RT 6225 150 .00 00 0 15 28845 HORIZON PR O FESS IONAL LANDSCAPE 2754695 4332000 LMA 7 SANP IPER COU RT WEST 622 5 155 .00 00 0 1528845 HORJ ZON PROFESSIONAL LANDSCAPE 2754696 4332000 LMA 7 HOVLEY COU RT WEST 6225 225 .00 00 0 1528845 HORJ ZON PROF ESS IONAL LANDSCAPE 2754697 4332000 LMA 7 PALM COURT 6225 100 .00 00 0 1528903 SOUTHERN CA LIFORN IA ED ISON 2754643 4351400 DIAMONDBACK 7004 I 395027 IJ A22 13 .80 00 0 1528903 SOUTHERN CA LI FORN IA ED ISON 2754680 4351000 (21) Mo ntere y Me adows 7000 I 758 503 3DC2 I 16.65 00 0 1528903 SOUTHERN CA LI FORN IA ED ISON 2754680 43514 00 MONT EREY /MEA D. ASSMT 7004 139502 71 JA22 68 .62 00 0 1528903 SOUTHERN CA LI FORN IA EDISON 275468 1 4351000 (20) The Glen 7000 I 7585033DC2 I 16 .98 00 0 1528 903 SOUTHERN CA LIFORN IA EDISON 2754682 4351000 ( 18) Ho vley Es tate s 700017585033DC2 I 36 .86 00 0 1528 903 SOUTHERN CA LI FORN IA EDISON 2754683 4351000 ( I 9) So nata I 7000 I 75 85033 DC2 I 17 .3 1 Re port Date 0 1/2 I /2022 City & Housing Page 17 Page 27 City of Palm Desert Check Register I /2 1 /2022 - I /2 1 /2 022 Bank ID Check Number Vendor Name Account Number Transaction Desc Invoice Amount Paid 00 0 1528799 BURRTEC 2774373 435 1800 TRAS H PICKUP SRV PP East 433 10 1-0 1/22 7,7 I 8.37 00 0 1528799 BURRTEC 2774373 4351800 TRAS H PI CKUP SRV PP West 433I04 -01 /22 6,414 .84 00 0 1528806 COAC HELLA VALLEY WATE R DIST 2774373 435 1000 (3) I 056 Preside nt s Plaza 315 I 858477 12DC2 I 59 .57 00 01528806 COACHELLA VALLEY WATER DIST 2774373 435 1000 (5) I 056 Presidents Plaza 315 I 85847712DC2 I 59 .57 00 0 1528903 SOUTHERN CA LI FORN IA EDI SON 2774373 435 1400 (22) Pr esidents Plaza E/W 7000 I 7585033DC2 I 145 .6 1 Zone #1 Pres ident Plaza Parkng 14 ,397.96 00 01528806 COACHELLA VALLEY WATER DIST 2784374 4351000 (I) I 056 Vineyard s 3 I 5 1858477 12DC2 I 55 .53 00 0 1528806 COAC HELLA VALLEY WATER DIST 2784374 4351000 (7) I 056 Vi neya rds 3 I 5 185847712DC2 I 97 .33 00 01528845 HORJZON PROFESS IONAL LANDSCAPE 2784374 4332000 LMA 7 VINEY ARDS 6225 200 .00 00 0 1528903 SOUT HERN CA LI FORN IA ED ISON 2784374 4351000 (2) Vineyards 7000 I 7585033DC2 I 16 .98 00 01528903 SOUTHERN CALIFORN IA ED ISON 2784374 4351400 VINEYARDS 7004 I 395027 IJA22 116 .56 Zone #3-Vineyards 486.40 00 0 1528806 COACHELLA VALLEY WATER DIST 2794374 4351000 12 I 050 Waring Court 3 15 17384 7700DC2 I 31 .66 00 0 1528845 HORIZON PROFESS IONAL LANDSCAPE 2794374 4332000 LMA 7 WARING COURT 6225 195 .00 Zone #7 -Waring Court 226.66 00 0 1528806 COACHELLA VALLEY WATER DIST 2804374 435 1000 I I I 050 Palm Gate 315 I 73847700DC2 I 30.49 00 0 1528845 HORIZON PROFESS IONAL LANDSCAPE 2804374 4332000 LMA 7 PA LM GATE 6225 120 .00 Zone #8 Palm Gate 150.49 00 01528806 COACHELLA VALLEY WATER DIST 2814374 435 1000 ( 4) I 056 The Grove 3 15185 84 77 12 DC2 I 404 .07 00 01528845 HORIZON PROFESS IONAL LANDSCA PE 2814374 4332000 LMA 7 THE GROVE 6225 460 .00 00 01528903 SOUTHERN CA LI FORN IA ED ISON 2814374 4351000 (6) The Grove 7000 I 7585033DC2 I 30 .69 00 0 1528903 SOU TH ERN CA LI FORN IA EDI SON 28 14374 435 1400 GROVE 7004 1395027 1 JA22 339 .69 Zone#9 The Grove 1,234.45 00 0 1528806 COAC HELLA VALLEY WATER DIST 2824373 4351000 (2) I 056 Presidents Plaza 3 3 I 5 185847712DC2 I 46 .87 Re po rt Date 01 /2 1/2022 City & Housing -P age 19 Page 28 City of Palm Desert Check Register 1/2 1/2 0 22 -1/2 1/202 2 Bank ID C heck Number Vendor Name Account Number Transaction Des c Invoice Amount Paid 00 0 1528903 SOUTHERN CA LI FORN IA ED ISON 2874682 435 1400 PETUN IA I (Petuni a / S hep herd) 700413950271 JA22 13 .80 00 0 1528903 SOUTH ERN CA LIFORN IA ED ISON 2874682 435 1400 PETUN IA I (W Pe tuni a/S hepherd) 7004 I 395027 IJ A22 13 .80 00 0 1528903 SOUTHERN CA LIF ORN IA ED ISON 2874683 435 1400 SUN DANCE E (Chi nook / S he phe rd 7004 I 395027 IJ A22 1380 Zone 16 S hepherd Lane 1,787.62 00 0 1528806 COAC HELLA VALLEY WATE R D IST. 2994374 435 1000 9 1050 PDCC 3 151 7 384 7700 DC2 I 198 09 00 0 1528845 HO RI ZON PR OFESS IONAL LANDSCAPE 2994374 4332000 LM A 7 PA LM DESERT CC 6225 480 .00 00 0 1528903 SOUTHERN CA LIFORN IA ED ISON 2994374 435 1000 ( 16) Pa lm Desert CC 7000 I 7585033DC2 I 230 1 00 0 1528903 SOUTHERN CA LIFORNIA ED ISON 29943 74 435 14 00 PALM DESE RT C.C. 70041395027 1 JA22 3,138 .27 00 0 1528903 SOUTHERN CALIFORN IA E DI SON 2994374 4351400 M IC HIGA N / CA 70041395027 I JA 22 86 .84 PD CC/Comm Se rvice Area #26 3,926.21 00 0 152 878 7 ALARM MON ITO R ING SERV ICES INC 4254430 4395000 C HANGE ORDER NO. I TO PROV ID E 93383 144 .00 00 0 1528805 COAC HEL LA VALLEY ECONOMI C PA RTNERS HI P 4254430 4395000 !H UB GRAND OPENING 2962 1,745 .00 00 0 15288 11 DED ICATE D BU ILD ING SE RVI CES LLC 4254430 4395000 C HANGE ORDE R NO. I TO PROVIDE INV 15394 2 ,800 .00 00 0 1528842 HERITAGE RESTAURANT G ROU P INC 4254430 4393000 DINING DECK GRANT 12/14/2 1-I NV 5,000 .00 00 0 1528899 S INATRA & COO K PROJ ECT LL C 4254430 4345000 iHub Renta l Jul '21 -Feb '22 RENT FEB 22 16 ,136.52 00 0 1528928 ZAGARA M l VI LLC 4254430 4393000 DINING D EC K GRANT 11 /17/2 1-I N V 5,000 .00 Economic Development Proj 30,825.52 00 0 1528925 W INGED OLUTIONS INC 4304674 4400 100 C IVI C CE NTER PARK LAGOON WATEF W S 12312 1 PD 1,168 .50 CP Parks & Rec Facilities 1,168.50 00 0 1528847 ID EA PED DL E R LL C 4364650 4309200 Ph oto 3 tr ff cabs 16 16 1,500 .00 00 0 1528853 JNS M EDI A S PEC IALISTS /OBA JNS NEXT 4364650 4321700 A rt in America 8904 3,804 .35 00 0 152 8859 KINO LO RBER INC 43 64650 432 1700 Film Ri g hts 8 54887 5 10 .00 00 0 152889 1 SAME DAY EX PRESS 4364650 4337200 Ma int e na nce of th e City's perm 0 10 122 4 ,600.00 00 0 1528908 STA PL E BUS INESS ADVANTAGE 4364650 42 11 000 A IPP S uppli es 3495469 128-1 49 .62 Report Date 01 /2 1/2 022 City & Housing Pa ge 2 1 Page 29 C it y of Pa lm Dese rt Check Register l /2 1/2 02 2 -1 /2 1/2 022 Ba nk ID C hec k N umb e r Vendo r Na me Acco unt N umb e r T ran sacti o n Desc In vo ice A m o un t Pa id 00 0 1528806 COAC HELLA VALLEY WATER DIST. 5 104 195 436960 1 (3) 11 6 1 -73710 FW FP 652499886934DC2 I 86 .99 00 01528806 COAC HELLA VALLEY WATER DIST. 5 104 195 4369602 (2) 11 6 1 -73720 FW 652499886934 DC2 I 71.47 00 01528806 COAC HELLA VALLEY WATER DIST. 5 104 195 4369800 (4) 11 6 1 -72559 Hwy 111 652499886934 DC2 ! 61 .79 00 0 1528806 COAC HELLA VALLEY WATER DIST. 5104 195 4369800 (5) 11 6 1 -72559 Hwy 111 FP 652499886934DC2 I 40 .65 00 0152881 1 DEDICATED BUILDING SE RVI CES LL C 5 104 195 4369500 JAN ITORI AL -SHEF IF F SUBSTAT IO INV l5 394 2,800 .00 00 0 15288 11 DED ICATED BUILDING SERV ICES LLC 5104 195 4369601 JAN ITORI AL - PARK VIEW OFFICE INV 15394 11,500 .00 00 015288 11 DEDICATED BUILDING SERV ICES LLC 5 104 195 4369800 JANITORJAL -HENDERSON CC !NV 15394 500 .00 00 0 15288 17 DESERT FIRE EXTINGU ISHER 5 104 195 4369601 FIRE EXTINGU ISHER-PARK VIEW B 11 097595 1,000 .00 00 0 15288 17 DESERT FIRE EXT INGU ISHE R 5 104 195 4369602 FIRE EXT INGU ISHER -STATE BLDG I 1097595 50 .62 00 0 1528876 PACIFIC WEST AIR COND IT ION ING 5 104 195 4369500 PR OV ID E IWAC PREVENTATIVE 135277 2,183.42 00 0 1528903 SOUTHERN CA LI FORN IA EDI SON 5104 195 435 1400 737 10 FW Dr Ste 11 6 700339417 l 88 JA22 70 .71 00 01528903 SOUT HERN CA LI FORN IA EDIS ON 5104 195 435 1400 73720 FW STE I00A 700066496069JA22 783 .90 00 0 1528903 SOUT HERN CALIFORN IA EDISON 5104 195 4351400 73710 & 73720 FW STE 700485l07855 JA22 2,835 .80 00 0 1528903 OUTHERN CA LI FORN IA EDISON 5 104 195 436960 1 73710 FW Dr DR2 / HMI 700485l07855JA22 528 .87 00 01528903 SOUTHERN CA LI FORN IA ED ISON 5 104195 4369602 73720 FW Dr HM 700485l07855JA22 556 .84 PD Offi ce Complex-Ente rp ri se 25,489 .52 00 0 1528794 B&H FOTO & ELECTRON ICS CORP 5304 190 4404000 Aud io Vi sual equipme nt upgrade 195545794 18,600 .58 00 0 1528826 ENTERPRJSE FM TRUST 5304331 4344000 234LD4 LEASE FBN4375244 9 10.24 00 0 1528826 ENTERPRIS E FM TRUST 5304331 4344000 22V3PJ LEASE FBN4375244 652.46 00 0 1528826 ENTERPRI SE FM TRUST 530433 1 4344000 22V3QC LEASE FBN4375244 659.59 00 0 1528826 ENTERPRISE FM TRUST 530433 1 4344000 22V3RD LEASE FBN4375244 388.44 00 01528826 ENTE RPRISE FM TRUST 530433 1 4344000 22V458 LEASE FBN4375244 638 .93 00 0 1528826 ENTERPRI SE FM TRUST 530433 1 4344000 22V3PN LEASE FBN4375244 665 .88 00 0 1528826 ENTERPRISE FM TRUST 530433 1 4344000 22V3S3 LEASE FBN4375244 652.46 00 0 1528826 ENTERPRI SE FM TRU T 530433 1 4344000 22 V3PC LEASE FBN4375244 652.46 00 0 1528826 ENTE RPRJ SE FM TRUST 5304331 4344000 22MTQF LEASE FBN4375244 988 .29 Report Date 0 1/2 1/2022 City & Housing . Pa ge 23 Page 30 ,. Bank ID Check Number Vendor Name 00 0 152888 4 PORTOLA PALMS HOMEOWNERS ASSN 00 0 1528884 PORTOLA PALMS HOMEOWNERS ASSN Audited and Found Correc t Report Date O I /2 1 /2022 City & Housing City of Palm De sert Check Register 1/21 /2022 -1/21 /2022 Account Number 8734 195 4337000 87341 95 4337000 Transaction De sc PPMHP-HOA Fee Lot 73-2 /2022 PPMHP-HOA Fee Lot 129-2/2022 Invoice 2 1-00073 2/22 2 1-00 I 29 2/22 Hou s in g Asset Fund 1ty Manager Page 25 Amount Paid 265 .00 26 5 .00 1,06 0.00 Total For Bank ID -00 2,569,141.93 Page 31 [This page has intentionally been left blank.] Page 32 STAFF REPORT CITY OF PALM DESERT MEETING DATE: February 10, 2022 PREPARED BY: Robert Hargreaves, City Attorney REQUEST: By Minute Motion, make findings that the State of California continues in a Governor-declared state of emergency to combat the COVID epidemic, that state and local health officials are recommending social distancing, and that the City may continue to employ remote teleconferencing. _____________________________________________________________________ Recommendation By Minute Motion, the City Council hereby finds the State of California continues in a Governor-declared state of emergency to combat the COVID epidemic, that state and local health officials are recommending social distancing, and consequently that the City Council and its other Brown-Act bodies may continue to employ remote teleconferencing under Government Code Section 54953(e). Strategic Plan The proposed action has no impact on the Strategic Plan. Background Analysis AB 361 (Government Code Section 54953(e)) provides that a local agency may employ remote teleconferencing upon a finding by the governing board that certain circumstances exist, among those that there is a Governor-declared emergency and state or local officials are recommending social distancing. The City Council will need to make those findings each month in which it continues to implement remote teleconferencing. The alternative is to revert to the preexisting Brown Act standards for teleconferencing which require that: (1) all teleconferencing locations be identified on the agenda; (2) agendas be posted at all teleconferencing locations; (3) all teleconferencing locations be open to the public; and (4) a majority of the council participate from locations within the City. Page 33 February 10, 2022 - Staff Report AB361 Page 2 of 2 Fiscal Analysis There is no direct fiscal impact associated with this item. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER RWH Robert W. Hargreaves City Attorney N/A N/A Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman ATTACHMENTS: None Page 34 STAFF REPORT CITY OF PALM DESERT FINANCE DEPARTMENT MEETING DATE: February 10, 2022 PREPARED BY: Janet M. Moore, Director of Finance REQUEST: Request for Approval of a Resolution Approving Mid-Year Adjustments for the Fiscal Year 2021-22 Revenue and Expenditures Recommendation By Minute Motion waive further reading and adopt Resolution No. 2022- _____ approving mid-year adjustments to Revenue and Expenditures for the FY 2021- 22. Executive Summary After a continual review of the estimated revenues and expenditures budgeted for the FY 2021-22 during the first half of the fiscal year, staff believes adjustments are now necessary to both General Fund revenue as well as General Fund appropriations (based on expenditures). While the original estimates considered the continued economic challenges of COVID-19 on the City’s operating budgets, indicating an expected shortfall of $6,998,441 actual revenues are showing recovery faster than anticipated and the revised estimates show that a shortfall is unlikely: Discussion In June of 2021, the City Council approved the City’s FY 2021-22 budget with an estimated revenue shortfall of $6,998,441 in the City’s General Fund. The deficit was primarily a result of the anticipated continued impacts of COVID-19 on the City’s General Fund revenue. In October of 2021, staff provided the Council with an update on the fiscal year end for 2020-21 indicating that revenues, while not at pre-pandemic levels, had shown recovery in the last quarter of the fiscal year. Because the City also received extraordinary one- time revenues, reduced operational spending, and delayed non-essential projects; reserves were not needed to cover operating expenditures for the prior year. During the same period in October 2021, the current fiscal year’s revenues were still limited. Sales tax and TOT revenue collections were slightly ahead of expectations but REVISED GENERAL FUND REVENUE AND EXPENDITURES Revised General Fund Revenue 63,256,104 Revised General Fund Appropriations 2021-22 63,139,545$ Revised General Fund Revenue Over/(Under) Expenditures 116,559$ Page 35 Staff Report Approval of the Mid-Year Adjustments FY 2021/2022 February 10, 2022 Page 2 of 5 the data (to the extent it was available) was for the low season and revised estimates would have been premature. Now, after six months of collections, staff has determined revenue estimate adjustments are needed and when combined with the adjustments to appropriations described below, staff is anticipating that reserves will not be needed to cover operating costs at fiscal year- end 2022. General Fund Revenues The original estimate for FY 2021-22 General Fund revenues was $55,506,104 which represented an increase of approximately $6.9 million (14%) over the FY 2020-21. The estimate was based on recovery indicators considering the emerging variants of COVID- 19. What wasn’t completely known was how consumers and travelers would react to the lifting of the year-long restrictions or the variants. Staff has continued to evaluate the actual year to date revenues and determined that the original estimates need to be increased in the amount of $7.75M (14%) over the original projected revenues. The table below itemizes the request including an estimated increase in sales tax of $3.15M and an estimated increase in Transient Occupancy Taxes (including short-term rentals) of $3.7M. Other smaller per line increases total $900K. General Fund Expenditures The original estimate for FY 21-22 General Fund appropriations was $62,504,545 which represents an approximate increase of $3.7 million (6%) compared to FY 2020-21. The original projections included increases in public safety costs, personnel services and benefits, and the cost of contracts due to another increase in the statewide minimum wage. General Fund Original Budget Revised Budget Request Category Revenue Sales Tax 19,879,000$ 3,150,000$ 23,029,000$ Transient Occupancy Tax (TOT) 9,132,678$ 3,200,000$ 12,332,678$ Short-term rental TOT 1,200,000$ 500,000$ 1,700,000$ Building Permits 843,550$ 400,000$ 1,243,550$ Encroachment Permits 40,000$ 120,000$ 160,000$ Subdivision Fees 250,000$ 100,000$ 350,000$ Plan Check Fees 180,100$ 250,000$ 430,100$ Code Compliance Inspection Fee 100,000$ 30,000$ 130,000$ Total Revenue Adjustment Request 7,750,000$ Proposed Adjustment Request Page 36 Staff Report Approval of the Mid-Year Adjustments FY 2021/2022 February 10, 2022 Page 3 of 5 Only minor adjustments are needed to appropriations in the aggregate amount of $635K (1%) and primarily include adjustments for professional services, equipment and building repair and maintenance. The table below itemizes the request and includes adjustments for consultants for engineering, building official duties, plan check, inspections, real estate services, and design/ engineering services for Lupine Plaza that were in addition to those expected to be offset by salary savings from staff vacancies. The remaining minor adjustments include equipment and work stations for additional staffing as well as upgrades to areas for noise attenuation. There is also a reduction in a line item appropriation for the City’s required contribution to CalPERS recognizing savings for making the payment at the beginning of the fiscal year. It is not yet known how many City contracts will be affected by the “Great Resignation”. But we are already seeing consultants and contractors having difficulties hiring employees. Competition is causing certain industries to be hit harder than others and will cause the cost of those services to increase going forward. Reserves Report In 2018 the City Council adopted a General Fund Reserve Policy. The policy sets categorical reserve standards based on the needs and risks to the City’s General Fund from all types of emergencies, long-term capital projects, deferred maintenance at City Facilities, equipment replacement and cash flow needs. The policy also takes into account situations that would affect service delivery to the City’s residents during times when revenues are either not yet received or not anticipated for a period of time, similar to the pandemic’s immediate impact on City revenue. The reserves committed each year fluctuate based on the parameters of the policy, however, are currently 100% funded. The following iteration shows the change in reserves from June of 2020 to June of 2021. The unassigned fund balance on June 30, 2020, was dedicated to the next year’s budget deficit, however, recovery of some City revenues and one-time extraordinary revenues received, offset the need to use reserves to balance the budget. General Fund Original Budget Revised Budget Request Category Expenditures Required Retirement Contribution 3,536,040$ (350,000)$ 3,186,040$ Capital Office Equipment - Computers 10,000$ 135,000$ 145,000$ R/M Buildings 86,000$ 100,000$ 186,000$ Professional Other - Building and Safety 1,000$ 450,000$ 451,000$ Professional Other - Dev Services 143,961$ 150,000$ 293,961$ Professional Econ Development 25,000$ 50,000$ 75,000$ Professional Other - Planning 137,939$ 100,000$ 237,939$ Total General Fund Appropriation Requested for Mid-Year 635,000$ Proposed Adjustment Request Page 37 Staff Report Approval of the Mid-Year Adjustments FY 2021/2022 February 10, 2022 Page 4 of 5 The two categories with the most significant increase are Facilities Maintenance Reserve and Capital Improvement Project Reserve. Facilities Maintenance Reserve has increased based on the reserve study completed on the City’s facilities and fluctuates with the accomplishments or deferments of facilities maintenance projects. Capital Improvement Project Reserve are for future projects that are not yet identified and is based on a percentage of the total projects anticipated over the City’s five-year Capital Improvement Program. American Rescue Plan Act Allocations As part of the American Rescue Plan (ARPA), the City has received half, or $4,991,526 of a total allocation of $9,983,052, to assist with the effects of the pandemic on City revenues, pandemic related programs and costs for services. The second half is expected in June of this fiscal year. For those cities receiving less than $10M, the final regulations simplified the reporting requirements for the revenue loss calculation and substantiation but did not change the allowed uses. As noted at the time the budget was adopted, the City has identified the essential services of police, fire, emergency medical services and economic development recovery loans/programs as eligible expenses for ARPA funds. The effect of this will allow the City to further focus on economic recovery and resume services and projects, delayed due to pandemic related restrictions and/or lack of funding, sooner. As an example, the City recently resumed visitor services again from the North Wing lobby. These services were paused during the pandemic. Reserve Category (per policy adopted Reserves FYE 06-30-2020 Increase/ (Decrease) PY to CY Balance or Reserve Amount FYE 06/30/2021 Fund Balance Designation 6/30/21 Unrestricted Fund Balance 84,183,127 10,981,468 95,164,595 Fund Balance less Nonspendable & Restricted - General Fund Operating Reserve 14,697,232 928,904 15,626,136 Assigned Emergency/Contingency Reserve 9,728,667 1,372,554 11,101,221 Committed Facilities Maintenance Reserve 20,761,965 2,347,338 23,109,303 Committed Capital Improvement Projects Reserve 13,888,779 3,119,776 17,008,555 Committed Liability Reserve 4,000,000 - 4,000,000 Committed Employment Benefits Reserve 9,121,496 212,747 9,334,243 Committed Other Fund Stability Reserve 6,611,508 668,927 7,280,435 Committed Equipment Replacement Reserve - 1,193,094 1,193,094 Committed Econ Development/Land Acq Reserve 1,900,000 (1,070,000) 830,000 Committed Total Reserves:80,709,647 89,482,987 Unassigned after Reserve Allocations 3,473,480 2,208,128 5,681,608 Unassigned Page 38 Staff Report Approval of the Mid-Year Adjustments FY 2021/2022 February 10, 2022 Page 5 of 5 Other Funds At this time there are no requests for mid-year adjustments to other governmental funds. Other governmental fund include transportation, signalization, parks, drainage, fire facility fees, housing mitigation, art in public places, childcare facilities, grant funds, recycling, aquatic center, enterprise funds (including Desert Willow and Parkview Office Complex), capital improvement funds, internal service funds, debt service, assessment districts, landscape and lighting districts and housing authority funds. The total budget for other funds remains unchanged at $99,858,295. Fiscal Impact and Conclusion In addition to the above requests, during the year, the City Manager is authorized to make, intra- and inter-departmental adjustments as well as intra- and inter-fund adjustments, in order to meet City needs, adjust staffing, and be responsive to the timing of projects, provided such adjustments do not exceed the approved total budget including any approved appropriations throughout the year. These adjustments have taken into consideration the City Manager’s authorization for inter- and intra- departmental/fund adjustments. The result of the revised revenue estimates and added appropriations estimates indicate that reserve funds will not be needed to fund the City’s operations this fiscal year. In fact, the estimates suggest an increase to fund balance of approximately $116K. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASST CITY MANAGER N/A Robert W. Hargreaves City Attorney Janet M. Moore Janet M. Moore Department Head Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman ATTACHMENTS: 1. Resolution No. 2022- ______ 2. Exhibit A to the Resolution Itemizing Requested Mid-Year Adjustments REVISED GENERAL FUND REVENUE AND EXPENDITURES Original General Fund Revenue Budget 55,506,104$ Requested Adjustments 7,750,000$ Revised General Fund Revenue 63,256,104 Original General Fund Appropriations 62,504,545$ Requested Adjustments 635,000$ Revised General Fund Appropriations 2021-22 63,139,545$ Revised General Fund Revenue Over/(Under) Expenditures 116,559$ Page 39 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2021-22 BUDGET AS A RESULT OF MID-YEAR ADJUSTMENTS WHEREAS, as a result of a mid-year review, it is desirable to revise the FY 2021- 22 Budget; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that the FY 2021-22 Budget is hereby revised as follows: 1. Each of the amounts shown in Exhibit A, attached hereto, in the General Fund Revenue column entitled “Revised Budget Request”, are hereby accepted as the revised Estimated Revenues for the identified revenue categories. 2. Each of the amounts shown in Exhibit A, attached hereto, in the General Fund Expenditure column entitled "Revised Budget Request", are hereby adjusted and appropriated to the departments, activities and projects identified therein as the revised budgets. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this 10th day of February, 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ________ JAN C. HARNIK, MAYOR ATTEST: _____________ NIAMH M. ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 40 City of Palm Desert Mid-Year Budget Adjustments Exhibit A Fiscal Year 2021-22 General Fund Original Budget Revised Budget Request Category Revenue Sales Tax 19,879,000$ 3,150,000$ 23,029,000$ 1100000 3133000 Transient Occupancy Tax (TOT) 9,132,678$ 3,200,000$ 12,332,678$ 1100000 3188300 Short-term rental TOT 1,200,000$ 500,000$ 1,700,000$ 1100000 3188330 Building Permits 843,550$ 400,000$ 1,243,550$ 1100000 3221100 Encroachment Permits 40,000$ 120,000$ 160,000$ 1100000 3221500 Subdivision Fees 250,000$ 100,000$ 350,000$ 1100000 3411200 Plan Check Fees 180,100$ 250,000$ 430,100$ 1100000 3411400 Code Compliance Inspection Fee 100,000$ 30,000$ 130,000$ 1100000 3422400 Total Revenue Adjustment Request 7,750,000$ General Fund Original Budget Revised Budget Request Category Expenditures Required Retirement Contribution 3,536,040$ (350,000)$ 3,186,040$ 1104159 4101500 Capital Office Equipment - Computers 10,000$ 135,000$ 145,000$ 1104190 4404000 R/M Buildings 86,000$ 100,000$ 186,000$ 1104340 4331000 Professional Other - Building and Safety 1,000$ 450,000$ 451,000$ 1104420 4309000 Professional Other - Dev Services 143,961$ 150,000$ 293,961$ 1104430 4309000 Professional Econ Development 25,000$ 50,000$ 75,000$ 1104430 4309102 Professional Other - Planning 137,939$ 100,000$ 237,939$ 1104470 4309000 Total General Fund Appropriation Requested for Mid-Year 635,000$ REVISED GENERAL FUND REVENUE AND EXPENDITURES Revised General Fund Revenue 63,256,104 Revised General Fund Appropriations 2021-22 63,139,545$ Revised General Fund Revenue Over/(Under) Expenditures 116,559$ Proposed Adjustment Request Account Number Proposed Adjustment Request Account Number Page 1 Page 41 [This page has intentionally been left blank.] Page 42 RESOLUTION NO. 2022-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, SETTING FORTH ITS FINDINGS AND AUTHORIZING THE DESTRUCTION OF PAPER RECORDS THAT HAVE BEEN DIGITALLY IMAGED FROM THE DEVELOPMENT SERVICES DEPARTMENT (PLANNING/LAND DEVELOPMENT DIVISION), TO RELY ON THE ELECTRONIC RECORD AS THE OFFICIAL RECORD WHEREAS, the Development Services Department of the City of Palm Desert, California, has imaged, in compliance with applicable state laws, official files, records, exhibits, permits, and other documents of said department; and WHEREAS, the images have been quality checked, and contain all significant details from the original and are an adequate substitute for the original document for all purposes for which the document was created or maintained; and WHEREAS, indexing has been verified/quality checked; and WHEREAS, the images have been placed on optical media that cannot be altered or changed (DVD-r, CD-R, or WORM), microfilm or microfiche; and WHEREAS, the optical media that cannot be altered or changed (DVD-r, CD-R, or WORM), microfilm or microfiche, has been stored in a safe and separate location. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: Section 1. That the above recitations are true and correct and constitute the findings of the Coty Council in this matter. Section 2. That it does hereby approve the destruction of the paper version of the documents, records or files as set forth in Exhibit “A” and “B,” attached hereto, to rely on the images as the “Official Record” and will be retained for the applicable retention period. Section 4. That plan check files (Land Development/Engineering) dated 1997- 2014 have exceeded its retention period (Exhibit “A”). Page 43 RESOLUTION NO. 2022-____ 2 PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council held on this 10th day of February 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN HARNIK, MAYOR ATTEST: NIAMH ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 44 RESOLUTION NO. 2022-____ 3 EXHIBIT “A” DESTRUCTION OF FILES FROM THE DEVELOPMENT SERVICES DEPARTMENT (PLANNING/LAND DEVELOPMENT DIVISION) THAT HAVE EXCEEDED ITS RETENTION PERIOD PLAN CHECKS 2006-2014 BOX NO. D-PW-1 (LAND DEVELOPMENT/ENGINEERING) RETENTION NO. TYPE CASE/PRJT NO. PROJECT NAME STREET NO. STREET NAME YEAR PW-021 TRAFFIC PLAN 23.54 42ND AVE & WASHINGTON 2006 PW-021 GRADING PERMIT AGLIO COMMERCIAL CENTER 74900 JONI DR 2006 PW-021 GRADING PERMIT BEST BUY/111 TOWN CENTER TOWN CENTER WAY 2011 PW-021 GRADING PERMIT 83.01 PALM DESERT AQUATIC CENTER 73751 MAGNESIA FALLS DRIVE 2010 PW-021 GRADING PERMIT ATRIA HACIENDA 44600 MONTEREY AVENUE 2010 PW-021 STREET PLAN ATRIA HACIENDA 44600 MONTEREY AVENUE 2010 PW-021 GRADING PERMIT AHMANSON DEV STOCKPILE PAINTERS PATH & HIGHWAY 111 2011 PW-021 GRADING PERMIT MISC 13-206 AUTOZONE 34860 MONTEREY AVENUE/DICK KELLY DR 2014 PW-021 STREET PLAN 21.67 PDHS AZTEC ROAD EXPANSION AZTEC RD AT COOK PHYLIS JACKSON 2010 PW-021 GRADING PERMIT TR 25296 BIGHORN CONNECTOR ROAD 535 MESQUITE HILLS 2009 PW-021 GRADING PERMIT MISC 10-278 BUFFALO WILD WINGS 72920 HIGHWAY 111 2011 PW-021 GRADING PERMIT CALIFORNIA VILLAS 77107 CALIFORNIA DRIVE 2007 PLAN CHECKS 1997-2003 BOX NO. D-PW-2 (LAND DEVELOPMENT/ENGINEERING) RETENTION NO. TYPE CASE/PRJT NO. PROJECT NAME STREET NO. STREET NAME YEAR PW-021 PARCEL MAP PM 30042 WONDER PALMS-ADMIN COOK STREET/GERALD FORD DRIVE 1997 PW-021 PARCEL MAP PM 30042 WONDER PALMS-BORROW SITE COOK STREET/GERALD FORD DRIVE 2003 PW-021 PARCEL MAP PM 30042 WONDER PALMS-HYDROLOGY COOK STREET/GERALD FORD DRIVE 2002 PW-021 PARCEL MAP PM 30042 WONDER PALMS-STREET PLAN COOK STREET/GERALD FORD DRIVE 2002 PW-021 PARCEL MAP PM 30042 WONDER PALMS-SOIL REPORT COOK STREET/GERALD FORD DRIVE 2002 PW-021 PARCEL MAP PM 30042 WONDER PALMS-SIGN/STRIPE PLAN COOK STREET/GERALD FORD DRIVE 2002 PW-021 PARCEL MAP PM 30193 HOVLEY GARDENS 74501 42ND AVENUE 2002 PW-021 PARCEL MAP PM 30193 HOVLEY GARDENS 74501 42ND AVENUE 2001 Page 45 RESOLUTION NO. 2022-____ 4 PLAN CHECKS 2007-2012 BOX NO. D-PW-3 (LAND DEVELOPMENT/ENGINEERING) RETENTION NO. TYPE CASE/PRJT NO. PROJECT NAME STREET NO. STREET NAME YEAR PW-021 SINGLE-FAMILY GRADING TR 27520-4 MOORHOUSE 125 TEPIN WAY 2007 PW-021 SINGLE-FAMILY GRADING TR 27520-5 MASTERSON 155 TEPIN 2012 PW-021 SINGLE-FAMILY GRADING TR 28227-1 EISLER 419 TOMAHAWK 2008 PW-021 SINGLE-FAMILY GRADING PM 11388 OLINGER 72315 UPPER WAY W DR 2008 PW-021 SINGLE-FAMILY GRADING TR 26068 MCILROY 101 WANISH 2011 PW-021 SINGLE-FAMILY GRADING TR 27520-5 ROSENBLATT 200 WIKETMAL PLACE 2008 PW-021 SINGLE-FAMILY GRADING TR 27520-5 STUART 201 WIKETMAL PLACE 2008 PLAN CHECKS 2007-2012 BOX NO. D-PW-4 (LAND DEVELOPMENT/ENGINEERING) RETENTION NO. TYPE CASE/PRJT NO. PROJECT NAME STREET NO. STREET NAME YEAR PW-021 SINGLE-FAMILY GRADING TR 25296-6 STRICKER 904 ANDREAS CANYON 2007 PW-021 SINGLE-FAMILY GRADING TR 25296-6 GERSHOWITZ 906 ANDREAS CANYON 2010 PW-021 SINGLE-FAMILY GRADING TR 25296-2 PAR DEVELOPMENT 918 ANDREAS CANYON 2011 PW-021 SINGLE-FAMILY GRADING TR25296-2 B-16 DEVELOPMENT 934 ANDREAS CANYON 2012 PW-021 SINGLE-FAMILY GRADING TR 25296-2 B-16 DEVELOPMENT 942 ANDREAS CANYON 2010 PW-021 SINGLE-FAMILY GRADING TR25296-2 BAKER 944 ANDREAS CANYON 2012 PW-021 SINGLE-FAMILY GRADING TR 25296-2 GERBER 952 ANDREAS CANYON 2011 PW-021 SINGLE-FAMILY GRADING TR30438-2 BELL 72265 BAJADA TRAIL 2010 PW-021 SINGLE-FAMILY GRADING TR 30438-2 MINISTRELLI 72286 BAJADA TRAIL 2009 PW-021 SINGLE-FAMILY GRADING TR 30438-2 MINISTRELLI 72300 BAJADA TRAIL 2007 PW-021 SINGLE-FAMILY GRADING TR30438-2 MINISTRELLI 72314 BAJADA TRAIL 2011 PW-021 SINGLE-FAMILY GRADING 04-33112 JONES 72700 BEL AIR ROAD 2009 PW-021 SINGLE-FAMILY GRADING TR 25296-7 MERAGE 1001 CAHUILLA FALLS 2012 PW-021 SINGLE-FAMILY GRADING TR 25296-7 DEKRUYF 1004 CAHUILLA FALLS 2009 PW-021 SINGLE-FAMILY GRADING TR 25296-7 PAR DEVELOPMENT 1024 CAHUILLA FALLS 2007 PW-021 SINGLE-FAMILY GRADING TR 25296-7 BOSLEY 1030 CAHUILLA FALLS 2009 PW-021 SINGLE-FAMILY GRADING TR 21698 SEIFERT 33 CALLE CLAIRE 2009 PW-021 SINGLE-FAMILY GRADING TR 29713 CARPENTER 49743 CANYON VIEW DRIVE 2007 Page 46 RESOLUTION NO. 2022-____ 5 PLAN CHECKS 2007-2010 BOX NO. D-PW-5 (LAND DEVELOPMENT/ENGINEERING) RETENTION NO. TYPE CASE/PRJT NO. PROJECT NAME STREET NO. STREET NAME YEAR PW-021 SINGLE-FAMILY GRADING 09-115-00 CHAPARRAL CC 143 CAMINO ARROYO 2009 PW-021 SINGLE-FAMILY GRADING TR 29713 REFSCHNEIDER 49757 CANYON VIEW DRIVE 2010 PW-021 SINGLE-FAMILY GRADING TR 29713 DEAN 49785 CANYON VIEW DRIVE 2009 PW-021 SINGLE-FAMILY GRADING TR 29713 PORTNOFF 49813 CANYON VIEW DRIVE 2007 PW-021 SINGLE-FAMILY GRADING TR 29713 LIENAU 49925 CANYON VIEW DRIVE 2009 PW-021 SINGLE-FAMILY GRADING TR 29713 GRAHAM 49967 CANYON VIEW DRIVE 2009 PW-021 SINGLE-FAMILY GRADING TR 29713 NICKERSON 49995 CANYON VIEW DRIVE 2009 PW-021 SINGLE-FAMILY GRADING KIRKPATRICK 49225 CAT CANYON ROAD 2008 PW-021 SINGLE-FAMILY GRADING TR 26018 MORRISON GROUP 130 CHALAKA PLACE 2009 PW-021 SINGLE-FAMILY GRADING TR 23929 SFS INVESTMENTS 357 CREST LAKE 2009 PW-021 SINGLE-FAMILY GRADING DANIELS 73148 CROSBY LANE 2009 PW-021 SINGLE-FAMILY GRADING MCINTOSH 77747 DELAWARE PLACE 2008 PW-021 SINGLE-FAMILY GRADING GUZMAN 77935 DELAWARE PLACE 2008 PW-021 SINGLE-FAMILY GRADING TR 28655-1 LANDIS 73956 DESERT GARDEN TRAIL 2008 PW-021 SINGLE-FAMILY GRADING TR 28655-1 STEIN 78890 DESERT GARDEN TRAIL 2008 PW-021 SINGLE-FAMILY GRADING TR 29713 MICHAEL KINER 49783 DESERT VISTA 2008 PW-021 SINGLE-FAMILY GRADING TR 28227-1 STONE 780 DOVE RUN CIR 2007 Page 47 RESOLUTION NO. 2022-____ 6 PLAN CHECKS 2007-2010 BOX NO. D-PW-6 (LAND DEVELOPMENT/ENGINEERING) RETENTION NO. TYPE CASE/PRJT NO. PROJECT NAME STREET NO. STREET NAME YEAR PW-021 SINGLE-FAMILY GRADING TR 28270 NAUJAIM 238 KIVA COURT 2007 PW-021 SINGLE-FAMILY GRADING TR 30438-2 MINISTRELLI 72272 BAJADA TRL 2007 PW-021 SINGLE-FAMILY GRADING TR 29713 SCHLOSSER 49825 DESERT VISTA DRIVE 2009 PW-021 SINGLE-FAMILY GRADING TR 28227 KRESHEK 808 FIREDANCE LANE 2010 PW-021 SINGLE-FAMILY GRADING TR 6685-1 ELLY 75640 GRAHAMSTOWN LANE 2010 PW-021 SINGLE-FAMILY GRADING TR 2184 SORDAL 74755 DEL CORONADO DR 2007 PW-021 SINGLE-FAMILY GRADING PM 4832 MACCUAIG 73978 CATALINA WAY 2008 PW-021 SINGLE-FAMILY GRADING TR 29713 DEWEX 50044 CANYON VIEW DRIVE 2008 PW-021 SINGLE-FAMILY GRADING FEDDERLY 73297 GRAPEVINE STREET 2009 PW-021 SINGLE-FAMILY GRADING SCRIVENS 73200 GRAPEVINE STREET 2008 PW-021 SINGLE-FAMILY GRADING 05-0036395 JODOIN 73242 JOSHUA TREE STREET 2008 PW-021 SINGLE-FAMILY GRADING MICSTEVEN 73505 JUNIPER STREET 2008 PW-021 SINGLE-FAMILY GRADING TR 31346 LEMON 73020 KAVANAUGH COURT 2008 PW-021 SINGLE-FAMILY GRADING TR MB21/50 FARRELL 73345 JOSHUA TREE STREET 2008 PW-021 SINGLE-FAMILY GRADING ELLIOTT 73570 JOSHUA TREE STREET 2008 PW-021 SINGLE-FAMILY GRADING MOORE 73060 JOSHUA TREE STREET 2010 PLAN CHECKS 2009-2013 BOX NO. D-PW-7 (LAND DEVELOPMENT/ENGINEERING) RETENTION NO. TYPE CASE/PRJT NO. PROJECT NAME STREET NO. STREET NAME YEAR PW-021 SINGLE-FAMILY GRADING TR 25296-1 HUBMAN 518 MESQUITE HILLS 2009 PW-021 SINGLE-FAMILY GRADING TR 25296-1 RIPPEE 521 MESQUITE HILLS 2013 PW-021 SINGLE-FAMILY GRADING TR 25296-1 CATHTON 522 MESQUITE HILLS 2013 PW-021 SINGLE-FAMILY GRADING TR 25296-1 FELD 527 MESQUITE HILLS 2010 PW-021 SINGLE-FAMILY GRADING TR 25296-1 BLUMENFELD 530 MESQUITE HILLS 2009 PW-021 SINGLE-FAMILY GRADING TR 25296-1 PRETTI 538 MESQUITE HILLS 2009 PW-021 SINGLE-FAMILY GRADING TR 25296-1 SOMMERS 213 PALM RIDGE 2009 PW-021 SINGLE-FAMILY GRADING TR 28575-3 RIPPEE 642 PINNACLE CREST 2009 Page 48 CONTRACT NO. C42330 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: February 10, 2022 PREPARED BY: Ryan Gayler, Project Manager REQUEST: Award Contract No. C42330 in the amount of $158,830 to United Storm Water, Inc. of Industry, California for the 2021 Catch Basin and Drain Cleaning Project (Project No. 501-21). ___________________________________________________________________________ Recommendation By Minute Motion: 1. Award Contract No. C42330, in the amount of $158,830 to United Storm Water, Inc. of Industry, California, for the 2021 Catch Basin and Drain Cleaning Project; 2. Authorize the Director of Finance to set aside a 10% contingency in the amount of $15,883; 3. Authorize the City Manager or designee to review and approve written requests for the use of contingency for unanticipated conditions, per Section 3.30.170 Section A of Ordinance No. 1335; and, 4. Authorize the City Manager to execute the Agreement. Funds are available in the Storm Drain Maintenance Reserve Account, Account No. 4204314- 4332000, and Benefit Assessment District Account No. 2894374-4332000. Strategic Plan Catch basin and drain cleaning is a maintenance activity and does not contribute directly to the objectives of the Strategic Plan. Background Analysis As a critical component of the City’s overall stormwater management program, drainage facilities must be regularly inspected and cleaned. Catch basins can sometimes trap sediment and other solids that might otherwise clog a storm drain and cause flooding. The regular removal of trapped sediment and debris from these facilities reduces the incidence of foul odors, minimizes contamination in receiving waters, and satisfies some of the requirements of the City’s NPDES (National Pollutant Discharge Elimination System) Separate Storm Sewer System (MS4) permit. The project also includes the fabrication and installation of connector pipe screen (CPS) units. The installation of CPS units is a requirement of the NPDES permit to reduce the amount of trash that enters the storm drain system, and ultimately the Whitewater River Channel. The CPS units allow water to enter the storm drain system while detaining trash or debris in the catch basin. The installation of CPS units are prioritized in high density residential or commercial areas. Page 49 February 10, 2022 - Staff Report Award Contract No. C42330 to United Storm Water, Inc. (Project No. 501-21) Page 2 of 2 Twenty-nine catch basins are within the boundary of a Benefit Assessment District (BAD) that was created to fund the maintenance of storm drain facilities that feed into the Section 29 Retention Basin. The BAD will fund the cleaning of those catch basins. The project was advertised for bid and on January 19, 2022, three bids were received electronically through the City’s bid management portal with the following results: Contractor Location Bid Amount United Storm Water, Inc. Industry, CA $158,830.00 Downstream Services, Inc. Escondido, CA $289,583.00 EverLevel Holdings, LLC Chino Hills, CA $418,200.00 United Storm Water, Inc., submitted the lowest responsive bid in the amount of $158,830. Staff reviewed the bid documents, and all the required forms were submitted. United Storm Water has performed well for the City on previous catch basin and drain cleaning projects. Fiscal Analysis This project is being done as a part of the City’s storm drain maintenance program, which was included in the City’s Capital Improvement Project (CIP) List for Fiscal Year 2021-22. There is no fiscal impact beyond the contract amount. Project Year Funding Source Description Budget for this Project* Total Cost Catch Basin and Drain Cleaning FY 21/22 Fund 420 Repair and Maintenance $155,350 $158,830 FY 21/22 Fund 289 $3,480 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman, City Manager: L. Todd Hileman CONTRACTOR: United Storm Water, Inc. 14000 East Valley Boulevard Industry, CA 91746 ATTACHMENTS: Contractor’s Bid Agreement and Bonds Vicinity Map Page 50 City of Palm Desert 2021 CATCH BASIN AND DRAIN CLEANING PROJECT (21-39), bidding on 01/19/2022 11:00 AM (PST) Page 1 of 4 Printed 01/25/2022 PlanetBids, Inc. Page 51 City of Palm Desert 2021 CATCH BASIN AND DRAIN CLEANING PROJECT (21-39), bidding on 01/19/2022 11:00 AM (PST) Page 2 of 4 Printed 01/25/2022 PlanetBids, Inc. Page 52 City of Palm Desert 2021 CATCH BASIN AND DRAIN CLEANING PROJECT (21-39), bidding on 01/19/2022 11:00 AM (PST) Page 3 of 4 Printed 01/25/2022 PlanetBids, Inc. Page 53 City of Palm Desert 2021 CATCH BASIN AND DRAIN CLEANING PROJECT (21-39), bidding on 01/19/2022 11:00 AM (PST) Page 4 of 4 Printed 01/25/2022 PlanetBids, Inc. Page 54 CONTRACT NO. C42330 -1- CONTRACT FOR CONSTRUCTION This Contract for Construction (“Contract”), No. C42330, is made and entered into this _10th_ day of _February_, _2022_, by and between City of Palm Desert, a Charter City and 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, sometimes hereinafter called the “City” and ___United Storm Water, Inc.____, sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: 2021 CATCH BASIN AND DRAIN CLEANING PROJECT PROJECT NO. 501-21 The general items of work to be done consists of Mobilization, Traffic Control, Clean Catch Basin, Clean Drain Pipe, Sand Removal, Clean Under-Sidewalk Drain, and Fabricate and Install CPS units. Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. ARTICLE 2. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 60 Calendar Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of ___One Hundred Fifty-eight Thousand Eight Hundred Thirty and no cents___ Dollars ($158,830.00). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. ARTICLE 4. LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Page 55 CONTRACT NO. C42330 -2- Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000.00 for each and every Day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders Permits Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. Page 56 CONTRACT NO. C42330 -3- All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. ARTICLE 7. INDEMNIFICATION AND INSURANCE A. Indemnification 1. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: (a) Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; (b) Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; (c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; (d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, Page 57 CONTRACT NO. C42330 -4- including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. 2. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. 3. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. B. Insurance 1. 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 Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 2. General Liability 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, and a $2,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 3. 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 Contract, 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. 4. 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, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions: A drop down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; Page 58 CONTRACT NO. C42330 -5- (a) Pay on behalf of wording as opposed to reimbursement; and (b) Concurrency of effective dates with primary policies; and (c) Policies shall “follow form” to the underlying primary policies; and (d) Insureds under primary policies shall also be insureds under the umbrella or excess policies. 5. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees and volunteers. 6. Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites. C. Other Provisions or Requirements 1. 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. 2. Duration of Coverage. 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, its agents, representatives, employees or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 3. Primary/Non-Contributing. 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 Page 59 CONTRACT NO. C42330 -6- 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. 4. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. 5. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, 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 Contract. 6. 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. 7. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees 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, 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. 8. 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. 9. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the 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. Page 60 CONTRACT NO. C42330 -7- 10. 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. 11. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City 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. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10 07 04) and completed operations (i.e. ISO Form CG 20 37 07 04) of Contractor. 12. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 13. 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. 14. Pass Through 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. 15. City’s Right to Revise Requirements. 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. 16. 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. 17. 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 Contract, and that involve or may involve coverage under any of the required liability policies. 18. 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. Page 61 CONTRACT NO. C42330 -8- 19. 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. ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. ARTICLE 9. FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 62 CONTRACT NO. C42330 -9- IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF PALM DESERT By: L. TODD HILEMAN CITY MANAGER ATTEST: By: NÍAMH M. ORTEGA DEPUTY CITY CLERK APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney UNITED STORM WATER, INC. By: EDUARDO PERRY JR., PRESIDENT By: ROBERT PINA, SECRETARY ____________________________________ Contractor’s License Number and Classification ____________________________________ DIR Registration Number (CONTRACTOR’S SIGNATURE MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED, IF APPLICABLE) END OF CONTRACT Page 63 CONTRACT NO. C42330 -10- Performance Bond KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert, a Charter City and 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, (hereinafter referred to as the “City”) has awarded to __UNITED STORM WATER,INC.__, (hereinafter referred to as the “Contractor”) an agreement for Contract No. C42330, (hereinafter referred to as the “Project”). WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated _December 29, 2021_, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents. NOW, THEREFORE, we, __UNITED STORM WATER, INC.__, the undersigned Contractor and ________________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of __ One Hundred Fifty-eight Thousand Eight Hundred Thirty and no cents ___ DOLLARS, ($158,830.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by the City in enforcing such obligation. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15. Page 64 CONTRACT NO. C42330 -11- Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: i. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or ii. Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. iii. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 65 CONTRACT NO. C42330 -12- IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________. (The above must be filled in by corporate attorney.) THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: (Name and Address of Surety) ___________________________________________ ___________________________________________ ___________________________________________ (Name and Address of Agent or ___________________________________________ Representative for service of ___________________________________________ process in California, if different ___________________________________________ from above) (Telephone number of Surety ___________________________________________ and Agent or Representative for service of process in California) Page 66 CONTRACT NO. C42330 -13- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 67 CONTRACT NO. C42330 -14- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of Attorney to local representatives of the bonding company must also be attached. END OF PERFORMANCE BOND Page 68 CONTRACT NO. C42330 -15- Payment Bond (Labor and Materials). KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Palm Desert, a Charter City and municipal corporation organized and operating under the laws of the State of California (hereinafter designated as the “City”), by action taken or a resolution passed __February 10__ , 20_22_, has awarded to __UNITED STORM WATER, INC.__ hereinafter designated as the “Principal,” a contract for the work described as follows: Contract No. C42330 (the “Project”); and WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated _December 29, 2021_, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of _ One Hundred Fifty-eight Thousand Eight Hundred Thirty and no cents __ Dollars ($158,830.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Revenue and Taxation Code Section 18663, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of Page 69 CONTRACT NO. C42330 -16- any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Civil Code Section 9100, and has not been paid the full amount of his claim. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of Contract, including but not limited to, the provisions of Sections 2819 and 2845 of the California Civil Code. IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title Page 70 CONTRACT NO. C42330 -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. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 71 CONTRACT NO. C42330 -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 DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached. END OF PAYMENT BOND Page 72 !!! !! !! !! !!! ! !! !! !! ! !!!! !! !! ! !!!!! !!! !! !! ! !! !! !!! ! ! !!!! ! ! ! ! ! !!! !!!!! !!! ! ! !! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! !! !! ! !!!!!!!!!!!! !!!!!!!!! !!!!!!! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! !! !!! ! ! ! ! !! ! ! !!! ! ! ! !! ! ! ! ! !! ! ! !! !! !! ! ! ! ! !! !! !!!!!!!! !! ! ! ! ! ! !!! ! !!! !! !!!!!!!!!!!!! ! !!! !!! !!!!!!!! !! !! !!!!!!!!!!!!!!!!!!!!!!!!! !! !!!!!!!!!!!!!!!!!!! !!!! !!!!! ! ! !! ! ! ! ! ! !! ! !!!! ! !! ! ! !!! !! !!!!!!! ! !! !! !!! !! ! ! !!! !! !! !! !! !!!! ! ! ! !!! !!! ! !!!!! !!!! !!!!!!!!!! !!!!!!! ! !!!!!!! ! !!!!!!!!!!!!!!!!!! ! !! ! ! ! ! !! ! ! ! ! ! !! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !!! !! ! !! ! ! ! ! !! !!!!! ! ! !! ! !!!! ! !! !!!!! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! !!!!! !! ! !! ! ! ! ! ! !! !!!!!!!!!!!!!!!!!!!!!! ! !!! ! !!! !! !! !!!! !!! ! ! ! ! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !!! ! ! ! !!! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! ! !! !! !!! ! !!! !!!! !!! !! ! ! ! ! ! ! ! ! ! ! ! ! !! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! !! ! !!!!!!! ! !!!! ! ! ! !! ! !! ! ! ! ! !! ! ! ! !!!! ! !! ! !!! ! ! !! ! ! !! !! !!! !!!!! !!! !! ! !! !! ! !! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! !!! ! ! ! !! ! ! ! ! ! !! ! ! ! ! !MONTEREY AVEFRED WARING DRPORTOLA AVEHOVLEY LN E FRANK SINATRA DR WASHINGTON STGRAPEVINE ST EL PASEO COUNTRY CLUB DR COOK STFAIRWAY DR OASIS CLUB DRCOOK STHAYSTACK RD MESA VIEW DR MAGNESIA FALLS DR PORTOLA AVEHOVLEY LN E DEEP CANYON RDTOWN CENTERWAYELDORADO DRHOVLEY LN W DINAHSHORE DR GERALD FORD DR WARNER TRLCA L IFORNIAAVE SAN PABLO AVEPORTOLA AVEBOB HOPE DRHWY 111 HWY 74Palm Desert Catch Basins !!! !! !! !! !!! ! !! !! !! ! !!!! !! !! ! !!!!! !!! !! !! ! !! !! !!! ! ! !!!! ! ! ! ! ! !!! !!!!! !!! ! ! !! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! !! ! !! !! ! !!!!!!!!!!!! !!!!!!!!! !!!!!!! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! !! !!! ! ! ! ! !! ! ! !!! ! ! ! !! ! ! ! ! !! ! ! !! !! !! ! ! ! ! !! !! !!!!!!!! !! ! ! ! ! ! !!! ! !!! !! !!!!!!!!!!!!! ! !!! !!! !!!!!!!! !! !! !!!!!!!!!!!!!!!!!!!!!!!!! !! !!!!!!!!!!!!!!!!!!! !!!! !!!!! ! ! !! ! ! ! ! ! !! ! !!!! ! !! ! ! !!! !! !!!!!!! ! !! !! !!! !! ! ! !!! !! !! !! !! !!!! ! ! ! !!! !!! ! !!!!! !!!! !!!!!!!!!! !!!!!!! ! !!!!!!! ! !!!!!!!!!!!!!!!!!! ! !! ! ! ! ! !! ! ! ! ! ! !! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! !! !!! !! ! !! ! ! ! ! !! !!!!! ! ! !! ! !!!! ! !! !!!!! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! !!!!! !! ! !! ! ! ! ! ! !! !!!!!!!!!!!!!!!!!!!!!! ! !!! ! !!! !! !! !!!! !!! ! ! ! ! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !!! ! ! ! !!! ! ! ! ! ! ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! !! ! !! !! !!! ! !!! !!!! !!! !! ! ! ! ! ! ! ! ! ! ! ! ! !! !!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !! ! ! ! ! ! !! ! !!!!!!! ! !!!! ! ! ! !! ! !! ! ! ! ! !! ! ! ! !!!! ! !! ! !!! ! ! !! ! ! !! !! !!! !!!!! !!! !! ! !! !! ! !! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! !!! ! ! ! !! ! ! ! ! ! !! ! ! ! ! !MONTEREY AVEFRED WARING DRPORTOLA AVEHOVLEY LN E FRANK SINATRA DR WASHINGTON STGRAPEVINE ST EL PASEO COUNTRY CLUB DR COOK STFAIRWAY DR OASIS CLUB DRCOOK STHAYSTACK RD MESA VIEW DR MAGNESIA FALLS DR PORTOLA AVEHOVLEY LN E DEEP CANYON RDTOWN CENTERWAYELDORADO DRHOVLEY LN W DINAHSHORE DR GERALD FORD DR WARNER TRLCA L IFORNIAAVE SAN PABLO AVEPORTOLA AVEBOB HOPE DRHWY 111 HWY 74I Date: 05/2018Page 73 [This page has intentionally been left blank.] Page 74 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: February 10, 2022 PREPARED BY: Bassam AL-Beitawi, Transportation Planner REQUEST: Award Contract No. _________ to KOA Corporation of Monterey Park, California, for Traffic Engineering Services in the amount of $186,300 for the Neighborhood Traffic Management Plan (Project No. 570-21) Recommendation: By Minute Motion: 1) Award Contract No. _________ to KOA Corporation of Monterey Park, California, for Traffic Engineering Services in the amount of $186,300; and 2) Authorize the City Manager or their designee to execute said agreement and any amendments and related documents as recommended by staff. Funds for this project are available in Measure A Fund Account No. 2134565-5000903. Strategic Plan Objective(s): The proposed projects will further the goals of the Strategic Plan by providing a safe, efficient, reliable, and sustainable transportation system for residents and visitors of the City. Furthermore, the proposed Neighborhood Traffic Management Plan fulfils the following priorities identified in the City’s Strategic Plan: Transportation Mini-Vision: By 2033, each resident and visitor will have safe, convenient, and efficient transportation options. Transportation Priority 1: Create walkable neighborhoods and areas within Palm Desert that would include residential, retail, services and employment centers, parks and recreation, and open space to reduce the use of low occupancy vehicles. Background: The project will establish a systematic and easily accessible approach of physical and visual devices along a neighborhood street to handling neighborhood traffic calming requests. The project will allow the City to address and utilize, where applicable, traffic calming tools to improve the quality of life in neighborhoods by reducing adverse impact Page 75 Contract No. __________ February 10, 2022 – Staff Report Neighborhood Traffic Management Plan (Project No. 570-21) Page 2 of 3 caused by vehicular traffic such as; speeding, traffic volume reduction, cut-through traffic, and pedestrian access. According to the Federal Highway Administration, the primary purpose of traffic calming is to support the livability and vitality of residential and commercial areas through improvements in non-motorist safety, mobility, and comfort. These objectives are typically achieved by reducing vehicle speeds or volumes on a single street or a street network. An effective traffic calming program includes a toolbox of options that use self-enforcing physical, or psycho-perception means to produce desired effects. The results can be accomplished through a combination of infrastructure and non-infrastructure project and programs, such as: • Roadway safety education to children and adults • Engaging residential and commercial neighborhoods • Traffic and speed enforcement • Context-sensitive design policies for new projects and retrofitting existing roadways • Awareness-building through permanent and portable speed display devices • Data collection and performance measurement City staff duly advertised a Request for Proposal (RFP) for said services on PlanetBids on November 9, 2021, and on December 14, 2021, the City received three proposals. A selection committee comprised of staff from the Public Works Department reviewed the proposals according to the following criteria in the RFP: • Qualifications of the firm • Technical approach and work plan • Completeness of the proposal • Fee proposal The selection committee ranked the proposals as follows: PROPOSER LOCATION RANKING KOA Corporation San Diego, CA 1 Kimley-Horn and Associates, Inc. Indian Wells, CA 2 Interwest Consulting Group, Inc. Palm Springs, CA 3 Based on the review, staff recommends awarding to KOA Corporation. KOA brings more than 30 years of solid traffic engineering local experience in the Southern California region. The project team who will be involved in this project brings more than 20 years of Traffic Calming and Neighborhood Traffic Management experience delivering programs and plans to various cities that differs in size and character, in Southern California. The team also includes professionals who are highly experienced in developing community Page 76 Contract No. __________ February 10, 2022 – Staff Report Neighborhood Traffic Management Plan (Project No. 570-21) Page 3 of 3 outreach programs. A sound outreach program is very essential to the success of an effective and sustainable Neighborhood Traffic Management Program. Fiscal Analysis: The Neighborhood Traffic Calming Program was included in the City’s Capital Improvement Project (CIP) List for FY2021/2022 and funded from Measure A Fund 213. Therefore, there is no fiscal impact on the General Fund. The 5-Year funding breakdown for the project is as follows: Project Funding Source Fiscal Year Description Budget for this Project* Total Project Cost Neighborhood Traffic Calming Program Measure A FY21/22 Study $186,300 FY22/23 Construction $150,000 FY23/24 Construction $150,000 FY24/25 Construction $150,000 FY25/26 Construction $150,000 $786,300 * Bolded amount is the subject of this request. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager Todd Hileman, City Manager: L. Todd Hileman CONSULTANT: KOA Corporation 5095 Murphy Canyon Road, Suite 330 San Diego, CA 92123 ATTACHMENTS: Agreement Consultant’s Proposal Page 77 Contract No. ____________ CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this 10th day of February, 2022, 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 KOA, a California Corporation, with its principal place of business at 5095 Murphy Canyon Road, Suite 330, San Diego, CA 92123, ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. RECITALS. 2.1 Project. The City is a public agency of the State of California and is in need of professional services for the following project: Neighborhood Traffic Management Plan (hereinafter referred to as “the Project”). 2.2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant is duly licensed and has the necessary qualifications to provide such services. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from February 10, 2022, to June 30, 2023, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services shall not be employees of City and shall at all times be Page 78 Contract No. ____________ 2 under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit "A" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Joel Falter, Principal. 3.2.5 City's Representative. The City hereby designates Bassam AL- Beitawi, Transportation Planner, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 3.2.6 Consultant's Representative. Consultant hereby designates Ali Shahzad, PE, Project Manager, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall Page 79 Contract No. ____________ 3 perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and Page 80 Contract No. ____________ 4 regulations in any manner affecting the performance of the Project or the Services, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. 3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (B) Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. Page 81 Contract No. ____________ 5 (C) Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. (D) Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers and representatives. (E) Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: (1) A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (2) Pay on behalf of wording as opposed to reimbursement; (3) Concurrency of effective dates with primary policies; and (4) Policies shall “follow form” to the underlying primary policies. (5) Insureds under primary policies shall also be insureds under the umbrella or excess policies. (F) Fidelity Coverage. Reserved. (G) Cyber Liability Insurance. Reserved. If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the Agreement. 3.2.11.2 Other Provisions or Requirements. (A) Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Page 82 Contract No. ____________ 6 Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (B) Duration of Coverage. Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants. (C) Primary/Non-Contributing. Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self- insurance shall be called upon to protect it as a named insured. (D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement. (E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. (G) Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits Page 83 Contract No. ____________ 7 maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (I) Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. (K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (M) Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. (N) City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (P) Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. Page 84 Contract No. ____________ 8 (Q) Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. 3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies of this Section. 3.3 Fees and Payments. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed One Hundred Eighty-Six Thousand Three Hundred Dollars ($186,300) without written approval of the City Council or City Manager, as applicable. 3.3.2 Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "A" of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City. 3.4 Labor Code Requirements. 3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Page 85 Contract No. ____________ 9 Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of Services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant. 3.4.3 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.5 Accounting Records. 3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. Page 86 Contract No. ____________ 10 3.6 General Provisions. 3.6.1 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: KOA Corporation 5095 Murphy Canyon Road, Suite 330 San Diego, CA 92123 ATTN: Joel Falter, Principal City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 ATTN: Bassam AL-Beitawi, Transportation Planner Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.6.3 Ownership of Materials and Confidentiality. Page 87 Contract No. ____________ 11 3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. 3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. 3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Page 88 Contract No. ____________ 12 Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. 3.6.5 [Reserved] 3.6.6 Indemnification. 3.6.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted Page 89 Contract No. ____________ 13 to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers or representatives. 3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. Page 90 Contract No. ____________ 14 3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.6.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.6.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. [SIGNATURES ON NEXT PAGE] Page 91 Contract No. ____________ 15 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND KOA CORPORATION IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT By: L. TODD HILEMAN City Manager ATTEST: By: Niamh M. Ortega Deputy City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney KOA Corporation By: Its: By: Its: QC PlanetBids ID: _____________ __________ __________ Page 92 Contract No. ____________ 16 EXHIBIT "A" SCOPE OF SERVICES, SCHEDULE OF SERVICES AND COMPENSATION Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Contract No.C42440 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: February 10, 2022 PREPARED BY: Randy Chavez, Landscape Supervisor Andy Ramirez, Deputy Director of Public Works REQUEST: Award Contract No. C42440 in the amount of $89,800 to Multi W Systems, Inc. of El Monte, California, for the Civic Center Pump Station Improvements Project (Project No. 920-22) ______________________________________________________________________ Recommendation By Minute Motion: 1) Award Contract No. C42440 for the Civic Center Pump Station Improvements Project to Multi W Systems, Inc. of El Monte, California, in the amount of $89,800; 2) Authorize the Director of Finance to set aside a 10% contingency in the amount of $9,000; 3) Authorize the Director of Finance to transfer $98,800 from the Civic Center Photovoltaic Project (Account No. 4504161- 4400100) to Civic Center Capital Project (Account No. 1104674- 4400100); 4) Authorize the Mayor to execute the agreement; and, 5) Authorize the City Manager to approve change orders associated with this contract based on staff’s recommendations. Following approval of the above actions, funds will be available in Account No. 1104674- 4400100, Civic Center Park Capital Project. Strategic Plan This project is in alignment with the Parks & Recreation strategic plan to, “prepare for the financial requirements of maintaining existing parks to the highest level of service.” Page 133 Contract No. C42440 February 10, 2022 – Staff Report Award C42440 to Multi W Systems, Inc. (Project No. 920-22) Page 2 of 3 Background Analysis Approximately 30 acres of landscape and irrigation provide the foundation of the aesthetics of the Civic Center campus. The equipment that powers this operation is a multifaceted pump station (also referred to as the Civic Center Pump Station) and delivers water from an on-site well to the lake that acts as a reservoir. A reservoir outlet then conveys water into the pump station that ultimately delivers water to several miles of irrigation lines. Installed in December of 2005, this critical infrastructure consists of a Programmable Logic Controller (PLC), three 50 Horsepower (HP) pumps, three Variable Frequency Drives (VFD’s), filters, and other ancillary components. On August 28, 2021, the PLC and one of three VFD’s failed. Staff contacted the current pump maintenance contractor, Automated Power Specialties, to assist with repairs. However, the contractor was unable to perform the necessary work. Staff then contacted Multi W Systems, Inc. (Multi W), a company that services various Coachella Valley government agencies. Multi W was highly responsive and submitted a quote to perform temporary repairs to keep the system operable while a comprehensive assessment could be completed. On September 10, 2021, the City Manager authorized emergency work for an amount of $16,815.15. Multi W replaced the VFD and provided a temporary PLC. This work minimized irrigation disruptions while protecting millions of dollars of landscape and pump assets. Shortly after repairs were made, a second VFD failed causing staff to determine that the remaining VFDs reached their life cycle. Furthermore, a thorough assessment confirmed the need to upgrade the outdated system to adequately manage the City’s resources. This project will upgrade the outdated pump station with a Supervisory Control and Data Acquisition (SCADA) system to provide remote alerts to the Department and an emergency shut off feature to protect the pumps. This project will minimize future disruptions and manage water and electrical efficiencies. On November 23, 2021, staff advertised a public Notice Inviting Bids on the City of Palm Desert’s bidding portal, PlanetBids.com. A total of 19 entities downloaded Bid Documents; two vendors attended the Mandatory Pre-Bid meeting; and only Multi W submitted a Bid. Based on Multi W’s workmanship and responsiveness, staff recommends awarding Contract No. C42440 in the amount of $89,800 to Multi W Systems, Inc. of El Monte, California, for the Civic Center Pump Station Improvements Project (Project No. 920-22) and requests a 10% Contingency in the amount of $9,000 for unforeseen circumstances. Page 134 Contract No. C42440 February 10, 2022 – Staff Report Award C42440 to Multi W Systems, Inc. (Project No. 920-22) Page 3 of 3 Fiscal Analysis The Public Works approved Capital Improvement Project (CIP) List for Fiscal Year 2021- 2022 includes $250,000 for the Civic Center Photovoltaic Project. Following a thorough review of the project, staff determined that $100,000 of said project could be used for the Civic Center Pump Station Improvement Project without compromising the funding needs of the Photovoltaic Project. Therefore, staff recommends transferring $98,800 from the Civic Center Photovoltaic Project to the Civic Center Pump Improvement Project. This will be a one-time expenditure, so there is no further fiscal impact. Photovoltaic Project Pump Station Project Budget Account No. 4504161-4400100 $250,000 $0.00 Transfer of Funds Account No. 1104674-4400100 -$98,800 $98,800 Project Total $151,200 $98,800 * Bolded amounts are the subject of this request. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman CONTRACTOR: Multi W Systems, Inc. 2615 Strozier Ave. El Monte, CA 91733 ATTACHMENTS: Agreement Payment & Performance Bonds Contractor’s Bid Vicinity Map Page 135 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -1- CITY OF PALM DESERT CONTRACT FOR CONSTRUCTION This Contract for Construction (“Contract”), No. C42440, is made and entered into this 10th day of February 2022, by and between City of Palm Desert, a Charter City and 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, sometimes hereinafter called the “City” and Multi W Systems, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: CIVIC CENTER PARK PUMP STATION IMPROVEMENTS PROJECT NO. 920-22 Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 45 Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. CONTRACT PRICE. RESERVE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of EIGHTY-NINE THOUSAND EIGHT HUNDRED Dollars ($89,900.00). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each, and everyday completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $500 for each and every Day of delay beyond the time Page 136 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -2- prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders Permits Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, Page 137 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -3- the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. INDEMNIFICATION AND INSURANCE Indemnification To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, including Page 138 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -4- attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. Insurance 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 Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. General Liability 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 $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 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 Contract, 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. 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, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions: A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; Page 139 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -5- Pay on behalf of wording as opposed to reimbursement; and Concurrency of effective dates with primary policies; and Policies shall “follow form” to the underlying primary policies; and Insureds under primary policies shall also be insureds under the umbrella or excess policies. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees and volunteers. Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites. Builder’s Risk Insurance. Upon commencement of construction and with approval of City, Contractor shall obtain and maintain builder’s risk insurance for the entire duration of the Project until only the City has an insurable interest. The Builder’s Risk coverage shall include the coverages as specified below. The named insureds shall be Contractor and City, including its officers, officials, employees, and agents. All subcontractors (excluding those solely responsible for design Work) of any tier and suppliers shall be included as additional insureds as their interests may appear. Contractor shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to City. The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to the City of Palm Desert. The City will act as a fiduciary for all other interests in the Project. Policy shall be provided for replacement value on an "all risk" basis for the completed value of the project. There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) Ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving Page 140 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -6- contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) Ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site or any staging area. Such insurance shall be on a form acceptable to City to ensure adequacy of terms and sub-limits and shall be submitted to the City prior to commencement of construction. Other Provisions or Requirements 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. Duration of Coverage. 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, its agents, representatives, employees or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. Primary/Non-Contributing. 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. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, 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 Contract. Commented [A1]: Stephen/Brianne is this necessary? Commented [A3]: I always send an email to Stephen explaining the scope of the project and asking for his recommendation. It is nice to have for the project file. Commented [A2R1]: Bertha, can you please ask Brianne on this one? Commented [A4R3]: Bertha, Can you please ask Stephen about this section? Page 141 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -7- 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. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees 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, 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. 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. Requirements Not Limiting. Requirements of specific coverage features, or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the 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. 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. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City 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. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e., ISO Form CG 20 10 07 04) and completed operations (i.e., ISO Form CG 20 37 07 04) of Contractor. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 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 Page 142 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -8- 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. Pass Through 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. City’s Right to Revise Requirements. 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. 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. 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 Contract, and that involve or may involve coverage under any of the required liability policies. 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. 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. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. Page 143 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -9- FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 144 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -10- IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF PALM DESERT By: TODD HILEMAN City Manager ATTEST: By: NIAMH M. ORTEGA Deputy City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney MULTI W SYSTEMS, INC. By: Its: Printed Name: By: Its: Printed Name: ____________________________________ Contractor’s License Number and Classification ____________________________________ DIR Registration Number (CONTRACTOR’S SIGNATURE MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED, IF APPLICABLE) Page 145 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -11- Performance Bond KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert, a Charter City and 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, (hereinafter referred to as the “City”) has awarded to Multi W Systems, Inc., (hereinafter referred to as the “Contractor”) an agreement for the Civic Center Pump Station Improvements, Contract No. C42440, (hereinafter referred to as the “Project”). WHEREAS the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated February 10, 2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents. NOW, THEREFORE, we, Multi W. Systems, Inc., the undersigned Contractor and ________________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of EIGHTY-NINE THOUSAND EIGHT HUNDRED DOLLARS, ($89,900), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by the City in enforcing such obligation. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15. Page 146 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -12- Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 147 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -13- IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________. (The above must be filled in by corporate attorney.) THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: (Name and Address of Surety) ___________________________________________ ___________________________________________ ___________________________________________ (Name and Address of Agent or ___________________________________________ Representative for service of ___________________________________________ process in California, if different ___________________________________________ from above) (Telephone number of Surety ___________________________________________ and Agent or Representative for service of process in California) Page 148 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -14- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 149 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -15- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of Attorney to local representatives of the bonding company must also be attached. Page 150 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -16- Payment Bond (Labor and Materials). KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Palm Desert, a Charter City and municipal corporation organized and operating under the laws of the State of California (hereinafter designated as the “City”), by action taken or a resolution passed February 10, 2022, has awarded to Multi W Systems, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows: Civic Center Pump Station Improvements, Contract No. C42440 (the “Project”); and WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated February 10, 2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of EIGHTY-NINE THOUSAND EIGHT HUNDRED Dollars ($89,900) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Revenue and Taxation Code Section 18663, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating Page 151 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -17- to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Civil Code Section 9100, and has not been paid the full amount of his claim. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of Contract, including but not limited to, the provisions of Sections 2819 and 2845 of the California Civil Code. IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title Page 152 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -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 DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 153 Contract No. C42440 Civic Center Pump Station Improvements 72500.00001\32656428.1 -19- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached. Page 154 City of Palm Desert Civic Center Park Pump Station Improvements (21-36), bidding on 12/21/2021 2:00 PM (PST) Page 1 of 3 Printed 01/26/2022 PlanetBids, Inc. Page 155 City of Palm Desert Civic Center Park Pump Station Improvements (21-36), bidding on 12/21/2021 2:00 PM (PST) Page 2 of 3 Printed 01/26/2022 PlanetBids, Inc. Page 156 City of Palm Desert Civic Center Park Pump Station Improvements (21-36), bidding on 12/21/2021 2:00 PM (PST) Page 3 of 3 Printed 01/26/2022 PlanetBids, Inc. Page 157 PRIVATE ST PRIVATE ST RUTLEDGE WAY KRUG AVE RANCHO RD CARMELCIR MASSON STMARTINICTHEITZCT SANPASCUALAVECARMELCIR MAGNESIA FALLS DR SAN PABLO AVESAN PABLO AVEFRED WARING DRSAN PASCUAL AVEMAGNESIA FALLS DR FRED WARING DR Date: Jan 2022 LOCATOR MAP Palm Desert Civic Center Pump Station Landscaping PRIVATE ST PRIVATE ST RUTLEDGE WAY KRUG AVE RANCHO RD CARMELCIR MASSON STMARTINICTHEITZCT SANPASCUALAVECARMELCIR MAGNESIA FALLS DR SAN PABLO AVESAN PABLO AVEFRED WARING DRSAN PASCUAL AVEMAGNESIA FALLS DR FRED WARING DR 0 500 Feet City of Palm Desert SUBJECTPROPERTY I Page 158 Contract No.C42170 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: February 10, 2022 PREPARED BY: Andy Ramirez, Deputy Director of Public Works REQUEST: Award Contract No. C42170 to Commercial Waterproofing Systems, Inc. of Santa Ana, California, for the Desert Willow Golf Resort Maintenance Facility Roof Repairs in the amount of $77,000 (Project No. 851-22) ______________________________________________________________________ Recommendation By Minute Motion: 1) Award Contract No. C42170 to Commercial Waterproofing Systems, Inc., of Santa Ana, California, for the Desert Willow Golf Resort Maintenance Facility Roof Repairs in the amount of $77,000; 2) Authorize the Director of Finance to set aside a 10% contingency in the amount of $7,700 for unforeseen conditions; and, 3) Authorize the City Manager to execute said the agreement and any change orders associated with this contract based on staff’s recommendations. Funds are available in the Desert Willow Golf Capital Account No. 4414195-4809200. Strategic Plan The Desert Willow Golf Resort Maintenance Facility sustains one of the City’s premier recreational facilities and supports the City’s goal of maintaining a high quality of life and recreation for its residents and visitors. Background Analysis Located at 38-995 Desert Willow Drive, the Desert Willow Golf Resort Maintenance Facility supports over 60 staff members from fleet mechanics to various levels of maintenance workers. The building also provides storage of heavy equipment, locker rooms, and a full kitchen. Currently, due to wear from extreme weather conditions, there are on-going roof leaks that require immediate repair. The proposed work consists of installing a new restoration roof system to coat a surface area of 9,206 square feet. The scope of this project entails lifting three HVAC units, installing flashing, reconnecting the HVAC units, sealing all skylights and protrusions. Other critical requirements include improving drainage spacing; tree removals; and Page 159 Contract No. C42170 February 10, 2022 – Staff Report Award C42170 to Commercial Waterproofing Systems, Inc. for the DWGR Roof Repairs (Project No. 851-22) Page 2 of 3 providing a warranty of work for a period of 10 years. On Friday, December 17, 2021, staff issued a Notice Inviting Bids through the City’s online bid management provider, PlanetBids. On Monday, January 10, 2022, two (2) bids were submitted electronically as follows: CONTRACTOR LOCATION AMOUNT Commercial Waterproofing Systems, Inc. Santa Ana, CA $77,000 Universal Coatings, Inc. Fresno, CA $77,000 As demonstrated in the table above, there are two bids that were received in the same amount. Staff conferred with the City Attorney’s office to review this rare occurrence. The City Attorney cited Chapter 3.30.100(H) of the City’s Municipal Code that states, “If two or more bids received are the same amount, the City Council may decide which bid to accept and award.” After speaking with the General Manager of the Desert Willow Golf Resort and experienced City staff, it was determined that working with a contractor based in close proximity to the City was an important factor, especially during supply chain concerns affecting the industry. As shown in the table above, Commercial Waterproofing Systems, Inc. of Santa Ana, California is located within close driving distance, whereas Universal Coatings, Inc., is based over 300 miles away in Fresno, California. Commercial Waterproofing Systems, Inc., has been in business for over 22 years and uniquely proposes to use subcontractors within the valley and the county of Riverside for ancillary work. Furthermore, staff received excellent recommendations regarding this contractor from the Director of Facilities Management and Construction of the Redondo Beach Unified School District and the Director of Facilities of Ability First, a multi-campus non-profit serving disabled adults and children. Each of these former clients highlighted how Commercial Waterproofing Systems, Inc., always kept within budget, demonstrated superb craftsmanship, provided dynamic communication and outstanding professionalism. Therefore, staff recommends that the City Council award the Desert Willow Golf Resort Maintenance Facility Roof project to Commercial Waterproofing Systems, Inc. Fiscal Analysis The Capital Improvement Project (CIP) List for Fiscal Year 2021-2022 included $70,000 for the Desert Willow Golf Resort Maintenance Facility Roof Repairs Project. Including contingency, the total project cost of this project is $84,700, which is $14,700 over the budget amount. At this time, staff is not requesting an appropriation of funds to cover the excess amount since it is expected to be offset by potential savings from other Desert Willow Capital Projects accounts. Page 160 Contract No. C42170 February 10, 2022 – Staff Report Award C42170 to Commercial Waterproofing Systems, Inc. for the DWGR Roof Repairs (Project No. 851-22) Page 3 of 3 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager, L. Todd Hileman: L. Todd Hileman CONTRACTOR: Commercial Waterproofing Systems, Inc. 1630 Palm Street Santa Ana, California 92701 ATTACHMENTS: Agreement Payment & Performance Bonds Contractor’s Bid Vicinity Map Page 161 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -1- CONTRACT FOR CONSTRUCTION This Contract for Construction (“Contract”), No. C42170, is made and entered into this 10th day of February 2022, by and between City of Palm Desert, a Charter City and 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, sometimes hereinafter called the “City” and Commercial Waterproofing Systems, Inc., sometimes hereinafter called “Contractor.” WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: DESERT WILLOW GOLF RESORT MAINTENANCE FACILITY ROOF REPAIRS PROJECT NO. 851-22 Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 45 Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. CONTRACT PRICE. RESERVE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Seventy-Seven Thousand Dollars ($77,000.00). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each, and everyday completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $500 for each and every Day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as Page 162 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -2- a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders Permits Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, Page 163 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -3- the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. INDEMNIFICATION AND INSURANCE Indemnification To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, including Page 164 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -4- attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. Insurance 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 Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. General Liability 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 $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 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 Contract, 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. 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, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions: A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; Page 165 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -5- Pay on behalf of wording as opposed to reimbursement; and Concurrency of effective dates with primary policies; and Policies shall “follow form” to the underlying primary policies; and Insureds under primary policies shall also be insureds under the umbrella or excess policies. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees and volunteers. Pollution Liability Insurance. Environmental Impairment Liability Insurance shall be written on a Contractor’s Pollution Liability form or other form acceptable to the City providing coverage for liability arising out of sudden, accidental and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 dollars per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites. Builder’s Risk Insurance. Upon commencement of construction and with approval of City, Contractor shall obtain and maintain builder’s risk insurance for the entire duration of the Project until only the City has an insurable interest. The Builder’s Risk coverage shall include the coverages as specified below. The named insureds shall be Contractor and City, including its officers, officials, employees, and agents. All subcontractors (excluding those solely responsible for design Work) of any tier and suppliers shall be included as additional insureds as their interests may appear. Contractor shall not be required to maintain property insurance for any portion of the Project following transfer of control thereof to City. The policy shall contain a provision that all proceeds from the builder’s risk policy shall be made payable to the City of Palm Desert. The City will act as a fiduciary for all other interests in the Project. Policy shall be provided for replacement value on an "all risk" basis for the completed value of the project. There shall be no coinsurance penalty or provisional limit provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, Nonconforming Work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) Ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving Page 166 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -6- contractor), with sub-limits sufficient to insure the full replacement value of any key equipment item; (6) Ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site or any staging area. Such insurance shall be on a form acceptable to City to ensure adequacy of terms and sub-limits and shall be submitted to the City prior to commencement of construction. Other Provisions or Requirements 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. Duration of Coverage. 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, its agents, representatives, employees or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. Primary/Non-Contributing. 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. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, 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 Contract. Commented [A1]: Stephen/Brianne is this necessary? Commented [A3]: I always send an email to Stephen explaining the scope of the project and asking for his recommendation. It is nice to have for the project file. Commented [A2R1]: Bertha, can you please ask Brianne on this one? Commented [A4R3]: Bertha, Can you please ask Stephen about this section? Page 167 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -7- 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. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees 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, 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. 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. Requirements Not Limiting. Requirements of specific coverage features, or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the 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. 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. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City 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. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e., ISO Form CG 20 10 07 04) and completed operations (i.e., ISO Form CG 20 37 07 04) of Contractor. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 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 Page 168 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -8- 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. Pass Through 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. City’s Right to Revise Requirements. 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. 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. 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 Contract, and that involve or may involve coverage under any of the required liability policies. 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. 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. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. Page 169 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -9- FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 170 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -10- IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written. CITY OF PALM DESERT By: L. TODD HILEMAN City Manager ATTEST: By: NIAMH M. ORTEGA Deputy City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney COMMERCIAL WATERPROOFING SYSTEMS, INC. By: Its: Printed Name: By: Its: Printed Name: ____________________________________ Contractor’s License Number and Classification ____________________________________ DIR Registration Number (CONTRACTOR’S SIGNATURE MUST BE NOTARIZED AND CORPORATE SEAL AFFIXED, IF APPLICABLE) QC PlanetBids ID: ______________ __________ __________ Page 171 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -11- Performance Bond KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert, a Charter City and 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, (hereinafter referred to as the “City”) has awarded to Commercial Waterproofing Systems, Inc., (hereinafter referred to as the “Contractor”) an agreement for DESERT WILLOW GOLF RESORT MAINTENANCE FACILITY ROOF REPAIRS, Contract No. C42170, (hereinafter referred to as the “Project”). WHEREAS the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated February 10, 2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents. NOW, THEREFORE, we, Commercial Waterproofing Systems, Inc., the undersigned Contractor and ________________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of SEVENTY-SEVEN THOUSAND DOLLARS, ($77,000), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by the City in enforcing such obligation. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15. Page 172 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -12- Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK] Page 173 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -13- IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________. (The above must be filled in by corporate attorney.) THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: (Name and Address of Surety) ___________________________________________ ___________________________________________ ___________________________________________ (Name and Address of Agent or ___________________________________________ Representative for service of ___________________________________________ process in California, if different ___________________________________________ from above) (Telephone number of Surety ___________________________________________ and Agent or Representative for service of process in California) Page 174 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -14- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 175 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -15- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of Attorney to local representatives of the bonding company must also be attached. END OF PERFORMANCE BOND Page 176 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -16- Payment Bond (Labor and Materials). KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Palm Desert, a Charter City and municipal corporation organized and operating under the laws of the State of California (hereinafter designated as the “City”), by action taken or a resolution passed February 10, 2022, has awarded to Commercial Waterproofing Systems, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows: DESERT WILLOW GOLF RESORT MAINTENANCE FACILITY ROOF REPAIRS, Contract No. C42170 (the “Project”); and WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated February 10, 2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of Seventy-Seven Thousand Dollars ($77,000) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Revenue and Taxation Code Section 18663, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining Page 177 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -17- or relating to any scheme or work of improvement herein above described, or pertaining or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Civil Code Section 9100, and has not been paid the full amount of his claim. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract to be performed thereunder, shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of Contract, including but not limited to, the provisions of Sections 2819 and 2845 of the California Civil Code. IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title Page 178 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -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 DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for Contractor/Principal. Page 179 Contract No. C42170 DW Golf Resort Maintenance Facility Roof Repair 72500.00001\32656428.1 -19- Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached. Page 180 City of Palm Desert Desert Willow Golf Resort Maintenance Facility Roof Repairs (21-38), bidding on 01/10/2022 2:00 PM (PST) Page 1 of 3 Printed 01/11/2022 PlanetBids, Inc. Page 181 City of Palm Desert Desert Willow Golf Resort Maintenance Facility Roof Repairs (21-38), bidding on 01/10/2022 2:00 PM (PST) Page 2 of 3 Printed 01/11/2022 PlanetBids, Inc. Page 182 City of Palm Desert Desert Willow Golf Resort Maintenance Facility Roof Repairs (21-38), bidding on 01/10/2022 2:00 PM (PST) Page 3 of 3 Printed 01/11/2022 PlanetBids, Inc. Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 Page 199 Page 200 Page 201 Page 202 Page 203 Page 204 Page 205 Page 206 Page 207 DESERT WILLO W C TPORTOLA AVEDESERT WILLO W C TPORTOLA AVEDate: 2/2011 Desert Willow Maintenance Facility I Desert WillowMaintenance Facility APN: 620-400-029 VICINITY MAP 38650 Portola Ave APN: 620-400-029 Page 208 STAFF REPORT CITY OF PALM DESERT CITY MANAGER’S OFFICE MEETING DATE: February 10, 2022 PREPARED BY: Andrea Staehle, Human Resources Manager REQUEST: Approve and award an agreement with Mosaic Public Partners LLC and authorize the City Manager to execute the agreement and expend up to $86,000 for recruitment services. ___________________________________________________________________________ Recommendation By minute motion, that the City Council, 1) Approve and award an agreement with Mosaic Public Partners LLC; and 2) Authorize the City Manager to execute the agreement to expend up to $86,000 for recruitment services, including additional expenses. Background Analysis The City of Palm Desert has three vacant management positions due to resignations and a retirement, including the City Clerk, Finance Director, and Public Works Director. The City Clerk and Finance Director positions represent immediate recruitment needs Additionally, the Assistant City Manager is serving dual roles as the Assistant City Manager and Public Works Director. As a result of the labor market, level of position, and an interest to target the recruitments, the City has engaged with Mosaic Public Partners LLC to conduct these recruitments due to the company’s expertise, network, and thorough background processing. The total amount for the three recruitments is $78,000 plus expenses. The recruitment includes project management, candidate profile development, outreach and recruiting, candidate screening and evaluation, presentation of candidates, selection process, background and final qualification, negotiations, and customary travel. If there are additional travel requirements, the cost is $1,500 per day plus actual travel expenses. Though the City does not anticipate additional travel requirements, the City has added contingency funding in the request. Fiscal Analysis Staff is requesting authorization to expend up to $86,000 for recruitment services, including contingency funding for additional expenses. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT Page 209 February 10, 2022 - Staff Report Approve and Authorize City Manager to Execute Agreement for Recruitment Services Page 2 of 2 CITY MANAGER N/A Robert W. Hargreaves City Attorney Andrea Staehle Andrea Staehle Human resources Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager L. Todd Hileman, City Manager: L. Todd Hileman ATTACHMENT: 1. Mosaic Public Partners Contract Page 210 Contract No. ______________ CITY OF PALM DESERT SHORT-FORM SERVICES AGREEMENT MOSAIC PUBLIC PARTNERS 1. Parties and Date. This Agreement is made and entered into this 18th day of January, 2022, 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, California (“City”) and Mosaic Public Partners LLC, a Limited Liability Company, with its principal place of business at 200 Gateway Drive #1908, Lincoln, CA 95648 ("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Terms and Conditions. The Parties shall comply with the Terms and Conditions attached hereto as Exhibit “A” and incorporated herein by this reference. 3. Scope of Services; Schedule. The Vendor shall be solely responsible for providing all materials, labor, tools, equipment, water, light, power, transportation, and superintendence of every nature and all other services and all facilities necessary to execute, complete, and deliver the services as particularly described in the Scope of Services (“Services”) attached hereto as Exhibit “B” and incorporated herein by this reference. The Services shall be completed timely and in accordance with the Schedule of Services set forth in Exhibit “B”. 4. Term. The term of this Agreement shall be from February 10, 2022 to June 17, 2022, unless earlier terminated as provided herein. 5. Compensation. Vendor shall receive compensation for Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by this reference. The total compensation shall not exceed Seventy-Eight Thousand Dollars ($78,000) Plus Expenses as outlined in the Vendor’s Proposal. Vendor’s invoices shall include a detailed description of the Services performed. Invoices shall be submitted to the City upon completion of tasks. The City shall review and pay all non-disputed and approved charges on such invoices in a timely manner. Vendor shall submit its final invoice to the City within thirty (30) days from the last date of Services performed and failure to do so shall result in a waiver of payment from the City. 6. Insurance. In accordance with Exhibit A, Section C of the Terms and Conditions, Vendor shall, at its expense, procure and maintain for the duration of the Agreement such insurance policies as checked below and provide proof of such insurance policies in a form satisfactory to the City. Commercial General Liability Insurance: X $1,000,000 per occurrence/$2,000,000 aggregate. $2,000,000 per occurrence/$4,000,000 aggregate. Automobile Liability: X $1,000,000 combined single limit for bodily injury and property damage. Workers’ Compensation: X Statutory Limits / Employer’s Liability $1,000,000 per accident or disease and a waiver of subrogation in favor of the City and their respective officers, agents, employees, volunteers and representatives. Page 211 Contract No. ______________ 2 Professional Liability (Errors and Omissions): X Errors & Omissions liability insurance with a limit of not less than $1,000,000 per claim and in the aggregate. IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT MOSAIC PUBLIC PARTNERS LLC: By: __________________________ By: _________________________________ L. TODD HILEMAN GREG NELSON CITY MANAGER FOUNDER AND MANAGING PARTNER Attest: __________________________ DEPUTY CITY CLERK Approved as to Form: __________________________ Best Best & Krieger LLP City Attorney Page 212 EXHIBIT “A” TERMS AND CONDITIONS FOR SERVICES 1. Compliance with Law. Vendor shall comply with all applicable laws and regulations of the federal, state and local government. Vendor certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time. By its signature hereunder, Vendor 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. Vendor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment in violation of state or federal law. Vendor is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. If the work is 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 for maintenance or $25,000 or more for construction, alteration, demolition, installation, or repair, Vendor agrees to fully comply with such Prevailing Wage Laws, including, along with subcontractors, being registered with the Department of Industrial Relations (Labor Code §§ 1725.1; 1771.1). It shall be mandatory upon the Vendor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code §§ 1771; 1774; 1775), employment of apprentices (Labor Code § 1777.5), certified payroll records (Labor Code §§ 1771.4; 1776), hours of labor (Labor Code §§ 1813; 1815) and debarment of contractors and subcontractors (Labor Code § 1777.1). This Agreement may be subject to compliance monitoring and enforcement. 2. Standard of Care. The Vendor shall perform the Services in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession practicing under similar conditions. 3. Insurance. If required by Section 6 of this Agreement, the Vendor shall take out and maintain during this Agreement: A. Commercial General Liability Insurance for bodily injury, personal injury and property damage, at least as broad as Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 0001). 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 for bodily injury and property damage including coverage for owned, non-owned, rented, and hired vehicles, at least as broad as Insurance Services Office Form Number CA 0001 (ed. 10/13) covering automobile liability, Code 1 (any auto); C. Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance; and if applicable, as determined by the City’s Risk Manager, D. Professional Liability (Errors and Omissions) that covers the Services to be performed in connection with this Agreement. Any policy inception date, continuity date, or retroactive date must be before the effective date of this agreement and Vendor agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this agreement. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City of Palm Desert, and their elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Vendor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Vendor hereby waives its own right of recovery against the City of Palm Desert or their elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subcontractors. Workers compensation coverage shall have an endorsement in favor of the City of Palm Desert, and their respective officers, agents, employees, volunteers and representatives. Insurance carriers shall be licensed and authorized to do business in California. Such insurance carrier shall have not less than an "A-:VII" rating according to the latest Best Key Rating unless otherwise approved by City’s Risk Manager. Vendor shall add the City, and their respective officers, officials, employees, agents, volunteers and representatives as additional insureds on Vendor’s Commercial General Liability, Automobile Liability, and if applicable, Pollution Liability and Cyber Liability policies. Coverage provided by Vendor shall be primary and any insurance or self-insurance procured or maintained by the City shall not be required to contribute with it. 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 (i.e. pollution, cyber, and fidelity coverages) required by giving the Vendor advance written notice of such change. If such change results in substantial additional cost to the Vendor, the City and Vendor may renegotiate Vendor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 4. Indemnification. To the fullest extent permitted by law, Vendor shall defend (with counsel of City’s choosing), indemnify and hold the City, and their respective officials, officers, employees, volunteers, agents and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death (collectively, “Claims”), in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Vendor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Vendor’s Services, the project, or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Vendor’s obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant or the City, or their respective officials, officers, employees, agents, volunteers or representatives. If Vendor’s obligation to defend, indemnify, and/or hold harmless arises out of Vendor’s performance as a “design professional” (as that term is defined under Civil Code § 2782.8), then, and only to the extent required by Civil Code § 2782.8, which is fully incorporated herein, Vendor’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Vendor, and, upon Vendor obtaining a final adjudication by a court of competent jurisdiction, Vendor’s liability for such claim, including the cost to defend, shall not exceed the Vendor’s proportionate percentage of fault. 5. Laws; Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of Riverside, State of California. 6. Termination. The City may terminate the whole or any part of this Agreement for any or no reason by giving three (3) calendar days written notice to Vendor. In such event, the City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for the work. The City shall pay Vendor the reasonable value as determined by the City of any portion of the Services completed prior to termination. The City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Vendor shall not be entitled to payment for unperformed Services and shall not be entitled to damages or compensation for termination of the Services. Vendor may terminate its obligation to provide further work under this Agreement upon thirty (30) calendar day’s written notice to the City only in the event of the City’s failure to perform in accordance with the terms of this Agreement through no fault of Vendor. 7. Changes. By written notice, the City may from time to time, make changes to the Services furnished to the City by Vendor. If such change causes an increase or decrease in the Agreement Price or in the time required for performance, Vendor or the City shall promptly notify the other party thereof and assert its claim for adjustment within fifteen (15) days after the change is ordered, and an equitable adjustment shall be made. However, nothing in this clause shall excuse the Vendor from proceeding immediately with the Agreement as changed. 8. Miscellaneous Terms. Vendor shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City. This Agreement may not be modified or altered except in writing signed by the Parties. There are no intended third party beneficiaries of any right or obligation of the Parties. This is an integrated Agreement representing the entire understanding of the Parties as to those matters contained herein, and supersedes and cancels any prior oral or written understanding or representations with respect to matters covered hereunder. 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. The captions of the various paragraphs are for convenience and ease of reference only, and do not Page 213 Contract No. ______________ Ex. A-4 define, limit, augment, or describe the scope, content or intent of this Agreement. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal. Notice may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the Parties to the addresses set forth in this Agreement. Vendor is retained as an independent contractor and is not an employee of the City. No employee or agent of Vendor shall become an employee of the City. Vendor warrants that the individual who has signed this Agreement has the legal power, right and authority to make this Agreement and bind the Vendor hereto. Page 214 EXHIBIT “B” SCOPE OF SERVICES; SCHEDULE OF SERVICES PLEASE SEE PROPOSAL BY MOSAIC PUBLIC PARTNERS ATTACHED HERETO. Page 215 Page 216 Page 217 Page 218 Page 219 Page 220 Page 221 Page 222 Page 223 Page 224 Page 225 Page 226 Page 227 EXHIBIT “C” COMPENSATION SEVENTY EIGHT THOUSAND DOLLARS ($78,000) PLUS EXPENSES, AS OUTLINED IN VENDOR’S PROPOSAL ATTACHED HERETO AS EXHIBIT B. Page 228 Contract No. C_________ STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: February 10, 2022 PREPARED BY: Randy Chavez, Landscape Supervisor Andy Ramirez, Deputy Director of Public Works REQUEST: Award Contract No. C_________ to Conserve Landcare of Thousand Palms, California for the Parks and Landscape Enhancement Project for an annual amount of $250,000 for a term of 53 months (Project No. 934-22) ______________________________________________________________________ Recommendation By Minute Motion: 1) Award Contract No. C_______ for the Parks and Landscape Enhancement Project to Conserve Landcare of Thousand Palms, California, for an annual amount of $250,000; 2) Authorize the Mayor to execute the agreement; and, 3) Authorize the City Manager to approve change orders associated with this contract and up to three (3) one-year contract extensions based on staff’s recommendations. Following approval of the above actions, funds will be available in Account No. 1104610- 4332001, R/M Civic Center Park Landscaping, 1104611-4332001, R/M Parks Landscaping, and 1104614-4337001, R/M Medians, 4414195-4332000, R/M Desert Willow, and various Landscape and Lighting Districts (LLD) accounts. Strategic Plan The Parks and Landscape Enhancement Project is in alignment with the Parks & Recreation strategic plan to maintain existing parks to the highest level of service. Background Analysis The approved Operational Budget for Fiscal Year 2021-2022 included $100,000 for the annual Median Rehabilitation Project to improve landscape at various focal points of the City as many plant materials have reached the end of their life cycle. This project goal focuses at improving water conservation by incorporating inorganics and installing Page 229 Contract No. C__________ February 10, 2022 – Staff Report Award C_________ to Conserve Landcare (Project No. 934-22) Page 2 of 4 aesthetically pleasing drought tolerant landscape. Staff has prioritized this fiscal year to commence its first median rehabilitation on Cook Street between Gerald Ford Drive to Country Club Drive. This on-going annual program will address other distressed medians such as Gerald Ford Drive, Frank Sinatra Drive, Country Club Drive, Monterey Avenue, and Fred Waring Drive. To improve economies of scale for the Median Rehabilitation Project and other high profile landscaped areas, an analysis identified the opportunity to improve contract efficiencies by consolidating the annual Median Rehabilitation Project of $100,000 with other budgeted landscape improvements totaling of $150,000. Examples include refreshing decomposed granite on El Paseo, turf installations at Hovley Soccer Park and Washington Charter Park, various assessment districts, and frontage areas along Desert Willow Golf Resort. Combining these as the Parks and Landscape Enhancement Project will eliminate lengthy time inefficiencies of issuing multiple and similar-in-scope contracts for individual rehabilitations at medians, parks, City properties, and frontages along assessment districts and the Desert Willow Golf Resort. This recommendation will save several months of administrative processes and address project needs in a timelier manner as the contractor will be required to provide a crew within seven (7) days to perform work upon notice by the Public Works Department. On December 08, 2021, staff issued a request for proposals (RFP) through the local newspaper and the City’s online bid management provider, Planet Bids. A total of 24 entities downloaded Bid Documents and four vendors attended the Mandatory Pre-Bid meeting. On January 5, 2022, two (2) proposals were received. A selection committee from the Public Works Department reviewed the two proposals and ranked each one based on: • Clarity and Conformance of the proposal • Content of the proposal, including the work plan • Proposer’s experience and performance • Comments by references • Fee Proposal As part of the RFP, vendors were asked to provide maintenance and construction price sheets for labor, plant material, and irrigation work. Items such as landscape design work, small scale installation projects, work to repair park furnishings, and specialized equipment were also requested to deliver Design-Build landscape projects in a short amount of time. The selection committee ranked the proposals numerically as follows: Page 230 Contract No. C__________ February 10, 2022 – Staff Report Award C_________ to Conserve Landcare (Project No. 934-22) Page 3 of 4 CONTRACTOR LOCATION RANKING Conserve Landcare Thousand Palms, CA 1 Mariposa Landscapes, Inc. Irwindale, CA 2 After tabulating the scoresheets, Conserve Landcare had the highest score with a 92 percent. Therefore, staff proceeded with verification of Conserve’s references, and spoke with the Director of Public Works for the City of Rancho Mirage and the Executive Community Manager for Mission Hills Villas II; both of whom gave very positive recommendations. Phrases such as “one-stop-shop” and “design-build” were conveyed to City staff and underscored positive traits by Conserve’s references. The type of work and budget from Conserve’s references are similar in scope and budget to the City’s Parks and Landscape Enhancement Project. Staff determined that Conserve Landcare provided the highest quality of service required to meet or exceed City standards. In addition, Conserve Landcare submitted all required documents and Price Sheets. Mariposa Landscapes did not submit the required Price Sheets and therefore, their Proposal was incomplete. Based on the review, staff recommends awarding the Parks and Landscape Enhancement Project to Conserve Landcare for a term of 53 months (February 1, 2022, to June 30, 2026), and an option of three, one-year extensions. Fiscal Analysis The approved Public Works Operations Budget for Fiscal Year 2021-2022 includes an annual amount of $100,000 for the Median Rehabilitation Project and a cumulative amount of $150,000 for various landscape improvement projects. This contract consolidates all projects under the Parks and Landscape Enhancement Project for a total annual amount of $250,000. Therefore, with this action, there will be no additional impact to the general fund. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet M. Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager Page 231 Contract No. C__________ February 10, 2022 – Staff Report Award C_________ to Conserve Landcare (Project No. 934-22) Page 4 of 4 City Manager, L. Todd Hileman: L. Todd Hileman CONTRACTOR: Conserve Landcare 72265 Manufacturing Road Thousand Palms, CA 92276 ATTACHMENTS: Agreement Payment & Performance Bonds Contractor’s Proposal Page 232 Revised 11-2-20 BBK 72500.00001\32374943.1 - 1 - CITY OF PALM DESERT MAINTENANCE SERVICES AGREEMENT PROJECT NO. 934-22 CONTRACT NO. _____________ 1. PARTIES AND DATE. This Agreement is made and entered into this 10th day of February 2022 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 Conserve Landcare, a Corporation with its principal place of business at 72265 Manufacturing Road Thousand Palms, California 92276 (“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 maintenance services to public clients, that it and its subcontractors have all necessary licenses and permits to perform the services in the State of California, and that it 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 PARKS AND LANDSCAPE ENHANCEMENT 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 maintenance services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from February 1, 2022, to June 30, 2026, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than three (3) additional one-year terms. 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 Payment of Subordinates; Independent Contractor. The Page 233 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 2 - 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. Any personnel performing the Services under this Agreement on behalf of Contractor shall 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 in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. 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 City’s Representative. The City hereby designates Randy Chavez, Landscape Supervisor, or his or her 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 except for increasing compensation. 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 [***INSERT NAME OR TITLE***], 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. 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. Contractor shall perform, at its own cost and expense Page 234 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 3 - 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; Employee/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 the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. 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. 3.2.10.1 Employment Eligibility; Contractor. Contractor certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Contractor certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 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. 3.2.10.3 Equal Opportunity Employment. Contractor represents that Page 235 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 4 - 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 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. 3.2.10.4 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. 3.2.10.5 Water Quality 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. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor to penalties, fines, or additional regulatory requirements. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, 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. (A) General Liability 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- Page 236 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 5 - 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 insurance, a Waiver of Subrogation endorsement in favor of the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. (E) RESERVED (F) RESERVED (G) RESERVED 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 Coverage. Contractor shall procure and Page 237 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 6 - 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) Primary/Non-Contributing. 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 Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by 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 Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, 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, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, 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. (H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the 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. (I) Notice of Cancellation. Contractor agrees to oblige its Page 238 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 7 - insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that 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 Through 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) City’s Right 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 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. (O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (P) Timely Notice of Claims. 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 Page 239 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 8 - 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 Payment 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 ten (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 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 Surety 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. Page 240 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 9 - 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, 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. Should Contractor encounter material reasonably believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substances 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 Damage. 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 Warranty. Contractor warrants all Services under the Agreement (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 Agreement 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 Agreement, 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 Page 241 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 10 - 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 (1) 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 Agreement. 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 Agreement, 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 TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000.00) PER FISCAL YEAR without written approval of the City Council or City Manager, as applicable. 3.3.2 Payment of Compensation. Contractor shall submit to City monthly invoices which provides a detailed description of the Services and hours rendered by Contractor. City shall, within thirty (30) days of receiving such statement, review the statement and pay all non-disputed and approved charges. Contractor shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Contractor to submit a timely invoice shall constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Contractor. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 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. Page 242 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 11 - 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 Wages. 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 or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 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 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. 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 elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives 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. Page 243 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 12 - 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 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: CONSERVE LANCARE 72265 Manufacturing Road Thousand Palms, CA 92276 City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Attn: Public Works Department Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.5.2 Indemnification. 3.5.2.1 Scope of Indemnity. To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, Page 244 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 13 - 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 Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorneys’ fees and other related costs and expenses except such Claims caused by the sole or active negligence or willful misconduct of the City. 3.5.2.2 Additional Indemnity 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 the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives 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 the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, 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 Contractor, the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. 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 Agreement 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 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 City’s Right to Employ 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 Page 245 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 14 - 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 the City include its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content or intent of this Agreement. 3.5.9 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 Party 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 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5.13 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 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. 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 Authority 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. Page 246 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 15 - 3.5.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties. [SIGNATURES ON NEXT PAGE] Page 247 Revised 11-2-20 BBK 72500.00001\32374943.1 - 16 - SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND CONSERVE LANDCARE IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. CITY OF PALM DESERT By: TODD HILEMAN CITY MANAGER ATTEST: By: City Clerk APPROVED AS TO FORM: By: Best Best & Krieger LLP City Attorney REVIEWED BY: _________________________________ Andy Firestine Assistant City Manager CONSERVE LANDSCARE A CORPORATION [IF CORPORATION, TWO SIGNATURES, PRESIDENT OR VICE PRESIDENT AND SECRETARY OR TREASURER REQUIRED] By: Its: Printed Name: By: Its: Printed Name: ____________________________________ Contractor’s License Number and Classification ____________________________________ DIR Registration Number (if applicable) Page 248 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 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. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 249 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 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 DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 250 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit A - 1 EXHIBIT “A” SCOPE OF SERVICES A. PROJECT DESCRIPTION The City is requesting proposals from licensed and qualified Proposers to provide landscape enhancement and improvement services for City parks, medians, assessment districts, and landscape facilities. The Proposer shall possess at the time of submitting a proposal and throughout the term of the contract a valid, and active Class C-27 Landscape license issued by the California State Contractor Licensing Board. Contractor shall also procure all Bonds and insurance outlined in the Agreement prior to commencing work. The Proposer to be knowledgeable in the installation, repair, and maintenance of the following park and landscape items: • Landscape and Irrigation maintenance, repair, and installation • Sod preparation and installation • Topdressing of sports turf • Park amenities material installation (sand volleyball courts, baseball infields, etc.) • Minor playground repairs • Park site furnishing repairs and installation • Medians landscape improvements • Assessment Districts improvements • Tree and shrub planting • Mow curb and related concrete repairs • Installation of cobble and inorganics • Proper traffic control as defined in the WATCH handbook. • Small scale landscape projects. The scope of services is not limited to the items listed above. In addition, more detailed work may be required, such as installation and programming of Smart Controllers, troubleshooting faulty irrigation wires, repairing and programming two-wire irrigation systems, leveling and grading, and other specialty work associated with park and landscape maintenance The City intends to award the contract as a 5-year agreement with an option of (3) one-year extensions, subject to funding availability and City Council approval. The Agreement shall not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) per fiscal year for performance of said Services. 2.2 GENERAL CONDITIONS AND REQUIREMENTS The successful Proposer (“Contractor”) shall work with City Project Manager, or designated field staff, to schedule necessary landscape work. Where the Contractor thinks a solution to a problem differs from what City requested, they shall notify the City along with their recommendation. The Contractor shall comply with all federal, state, county and City regulations regarding safety, including traffic control, and shall provide safety training for their employees. Page 251 Contract No. __________________ (BB&K 2019) 72500.00001\32374943.1 Exhibit A-2 Contract amendments are required to modify the terms of the Agreement for changes such as added work or increased costs and must be done in accordance with and prior to expiration of the Agreement. 2.3 WORK BREAKDOWN The Contractor will be required to provide all necessary labor, standard vehicles, standard equipment, small hand tools, small equipment, safety equipment including traffic cones and advance warning signs, to perform all the Services described. Full compensation for these items shall be included in the various Price Sheet rates and no additional payment will be made therefor. The Contractor may be required to perform services with equipment or material not specified on the Price Sheets. When such work is requested, the cost for specialized equipment and materials not listed in the Price Sheets will be paid at material/rental cost as indicated on receipt(s), with a 15% mark up. Labor will be paid utilizing the Price Sheet. Contractor shall provide personnel qualified to perform the Services outlined in this RFP and Agreement. The Contractor will have a crew available to perform requested work within seven (7) days notice. Once a project commences, Contractor will not leave work site until all work is completed. Contractor will also work with City personnel regarding yearly maintenance activities and will ensure labor is available to perform time sensitive tasks. Prior to commencing work, it will be the responsibility of the Contractor to verify field quantities and conditions and submit estimates to the Director of Public Works or his designee for approval. Once the work has been completed, the Director of Public Works or his designee will verify quantities and quality of work prior to processing payment. If work is not performed in a satisfactory manner as determined by Director of Public Works or his designee, Contractor will need to make such repairs at no additional cost to the City. Page 252 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit B - 1 EXHIBIT “B” SCHEDULE OF SERVICES The term of this Agreement shall be from February 1, 2022, to June 30, 2026, unless earlier terminated as provided herein. The City shall have the unilateral option, at its sole discretion, to renew this Agreement automatically for no more than Three (3) additional one-year terms. 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 Page 253 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 1 EXHIBIT “C” COMPENSATION [***INSERT RATES & AUTHORIZED REIMBURSABLE EXPENSES***] [In the event that this Agreement is renewed pursuant to Section 3.1.2, the rates set forth above may be increased or reduced each year at the time of renewal, but any increase shall not exceed the Consumer Price Index, All Urban Consumers, Los Angeles-Riverside-Orange Counties.] Page 254 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 2 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to Conserve Landcare, (hereinafter referred to as the “Contractor”), a corporation, an agreement for Park and Landscape Enhancement Project (hereinafter referred to as the “Project”). WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated February 10, 2022, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents. NOW, THEREFORE, we, Conserve Landcare, the undersigned Contractor and _____________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the annual sum of Two Hundred Fifty Thousand DOLLARS, ($250,000), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law or equity, including, but not limited to, California Code of Civil Procedure section 337.15. Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: (1)Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or Page 255 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 3 (2)Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. (3)Permit the City to complete the Project in any manner consistent with local, California and federal law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents. Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor. Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project. The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project, including but not limited to the provisions of sections 2819 and 2845 of the California Civil Code. [SIGNATURES ON NEXT PAGE] Page 256 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 4 IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. The rate of premium on this bond is ____________ per thousand. The total amount of premium charges, $_______________________________. (The above must be filled in by corporate attorney.) THIS IS A REQUIRED FORM Any claims under this bond may be addressed to: (Name and Address of Surety) (Name and Address of Agent or Representative for service of process in California, if different from above) (Telephone number of Surety and Agent or Representative for service of process in California) NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. Page 257 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 5 NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 258 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 6 NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached. Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 259 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 7 PAYMENT BOND KNOW ALL MEN BY THESE PRESENTS That WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed February 10, 2022, has awarded to Conserve Landcare hereinafter designated as the “Principal,” a contract for the work described as follows: Parks and Landscape Enhancement Project (the “Project”); and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated February 10, 2022 (“Contract Documents”), the terms and conditions of which are expressly incorporated by reference; and WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth. NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal annual sum of Two Hundred Fifty Thousand Dollars ($250,000) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining Page 260 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 8 or relating to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Section 9100 of the Civil Code, and has not been paid the full amount of his claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration or modification herein mentioned and the provisions of sections 2819 and 2845 of the California Civil Code. [SIGNATURES ON NEXT PAGE] Page 261 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 9 IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By Title (Corporate Seal) Surety By Attorney-in-Fact (Attach Attorney-in-Fact Certificate) Title Signatures of those signing for the Contractor and Surety must be notarized and evidence of corporate authority attached. A Power-of-Attorney authorizing the person signing on behalf of the Surety to do so much be attached hereto. NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. Page 262 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 10 NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 263 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 11 NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of- Attorney to local representatives of the bonding company must also be attached. Notary Acknowledgment A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF ______________ On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual  Corporate Officer Title(s) Title or Type of Document  Partner(s)  Limited  General Number of Pages  Attorney-In-Fact  Trustee(s)  Guardian/Conservator Date of Document  Other: Signer is representing: Name Of Person(s) Or Entity(ies) Signer(s) Other Than Named Above Page 264 Contract No. __________________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit D - 1 Page 265 Page 266 Page 267 Page 268 Page 269 Page 270 Page 271 Page 272 Page 273 Page 274 Page 275 Page 276 Page 277 Page 278 Page 279 Page 280 Page 281 Page 282 Page 283 Page 284 Page 285 [This page has intentionally been left blank.] Page 286 STAFF REPORT CITY OF PALM DESERT PUBLIC WORKS DEPARTMENT MEETING DATE: February 10, 2022 PREPARED BY: Randy Bowman, Deputy Director of Public Works REQUEST: Accept Contract No. C38820B with Los Angeles Engineering, Inc. of Riverside, California, for the San Pablo Avenue Phase 2 Street Improvements as complete and authorize the City Clerk to file a Notice of Completion (Project No. 681-20). Recommendation By Minute Motion: 1.Accept Contract No. C38820B with Los Angeles Engineering, Inc. of Riverside, California, for the San Pablo Avenue Phase 2 Street Improvements as complete; 2. Approve Change Order No. 13 to Contract No. C38820B in the amount of $22,421.79; 3.Approve Contract Amendment No. 1 to Contract No. C38820A in the amount of $25,000; 4.Authorize the transfer of $25,000 from the remaining contingency amount for the project from Contract No. C38820B to Contract C38820A; 5.Authorize the City Clerk to file the Notice of Completion; and, 6.Authorize the City Manager or their designee to execute the change order and contract amendment. Background Notice of Completion: On September 10, 2020, the City Council awarded Contract No. C38820B for the San Pablo Avenue Phase 2 Street Improvements to Los Angeles Engineering, Inc. of Covina, California. Construction began on November 4, 2020 and was completed on August 6, 2021. Staff has inspected the work performed by the contractor and has found said work to be complete and in accordance with the contract requirements. Contract No. C38820B Change Order No. 13: On September 10, 2020, the City Council awarded the subject construction contract to Los Angeles Engineering, Inc. in the amount of $6,655,233. With its award of the construction contract, the City Council approved $998,284.95 in contingency for the project and authorized the City Manager to approve change orders up to $100,000 per change order for a total of $500,000 before requiring City Council authorization. Page 287 February 10, 2022 - Staff Report Accept C38820B as complete and authorize the City Clerk to file the NOC Page 2 of 4 The project team has negotiated final pay item quantities and cost accounting for the project. The sum of change orders administratively approved to date totals $484,734.95. The final change order for the contractor, Change Order No. 13, is in the net amount of $22,421.79. Change Order No. 13 brings the total of all change orders to $507,156.74, which is over the $500,000 threshold City Council imposed on the project, and therefore it requires City Council approval. This change order has no impact on the contract duration, and covers the following items of work: 1.City directed the Contractor to repair an approximately 10’x75’ sink hole at Magnesia Falls that was outside the project limits. The Contractor performed the work at force account. 2.This Construction Change Order includes the balance of the final Contract bid item quantities for the project. Below is a summary of change orders to date, proposed and pending change orders, and current balance of the project contingency: Change Order Change Order Amounts* Contingency Balance Approved Project Contingency $998,284.95 Change Orders 1 - 12 Previously Approved $484,734.95 Change Order No. 13 (requires City Council approval) $22,421.79 Total of All Change Orders and Remaining Contingency $507,156.74 $491,128.21 *Item in bold is the subject of the current request. With City Council approval of Change Order 13, the construction contract will end at 7.6 percent over the original contract amount and leave $491,128.21 left in the project contingency. All the project contingency is allocated from Measure A funds. A final project cost summary is included in the Fiscal Analysis below. Contract No. C38820A Contract Amendment No. 1: On March 12, 2020, the City Council awarded Contract No. C38820A for construction management services for the San Pablo Avenue Phase 2 Street Improvements to Southstar Engineering & Consulting, Inc. of Riverside, California in the amount of $1,072,766.76. A final contract amendment to Contract No. C38820A in an amount of $25,000.00 is needed for final documentation and archiving. With approval of the requested contract amendment, the final cost of construction management will be $1,097,766.76, which is equivalent to 15.3% of the final construction cost. Industry standards typically range construction management costs at 10% to 15%. Given the complex nature of the project, plus the ATP grant funding the construction manager was required to document, staff finds the final construction management costs acceptable. Page 288 February 10, 2022 - Staff Report Accept C38820B as complete and authorize the City Clerk to file the NOC Page 3 of 4 Fiscal Analysis The table below provides the original budget, and the actual expenses to date, including the change order and contract amendment as part of the requested action. Project Element Vendor Funding Source Budget Actual * Professional Engineering Dokken Engineering Restricted Capital Project Fund 451 $701,507.00 $701,507.00 Construction Management Southstar Engineering Restricted Capital Project Fund 451 $1,072,766.76 $1,072,766.76 Construction Los Angeles Engineering, Inc. Restricted Capital Project Fund 451 $3,255,233.00 $3,255,233.00 Measure A Fund 231 $3,400,000.00 $3,400,000.00 Construction Subtotal $6,655,233.00 Construction Contingency Measure A Fund 231 $998,284.95 Change Orders 1 – 12 to Agreement C38820B Los Angeles Engineering, Inc. Construction Contingency $484,734.95 Requested Change Order 13 to Agreement C38820B Los Angeles Engineering, Inc. Construction Contingency $22,421.79 Requested Contract Amendment No. 1 to Agreement C38820A Southstar Engineering Construction Contingency $25,000.00 Total $9,427,791.71 $8,961,663.50 ATP Grant ($3,222,000.00) ($3,222,000.00) Total Net Project Cost to City $6,205,791.71 $5,739,663.50 Project Balance $466,128.21 *Bolded amounts are the subject of this request There is no fiscal impact associated to the general fund with this action. Page 289 February 10, 2022 - Staff Report Accept C38820B as complete and authorize the City Clerk to file the NOC Page 4 of 4 LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Andy Firestine Andy Firestine Assistant City Manager Janet M. Moore Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman CONTRACTOR: Los Angeles Engineering, Inc. 633 North Barranca Avenue Covina, CA 91723 CONSULTANT: Southstar Engineering & Consulting, Inc. 1945 Chicago Avenue, Unit C Riverside, CA 92507 ATTACHMENTS: Notice of Completion Contract No. C38820B Change Order No. 13 Contract No. C38820A Contract Amendment No. 1 Vicinity Map Page 290 To be recorded with the Riverside County Recorder on or within 15 days after completion and acceptance by the City Council. NO RECORDING FEE PER SECTION 6103 OF THE GOVERNMENT CODE. APN 000-000-000 R/W NOTICE OF COMPLETION (Cal. Civ. Code § 9200 et seq. – Public Works) NOTICE IS HEREBY GIVEN: 1.That the interest or estate stated in paragraph 3 herein in the real property herein described is SOLELY OWNED by the CITY OF PALM DESERT, A MUNICIPAL CORPORATION, a political subdivision of the State of California, and whose address is 73-510 FRED WARING DRIVE, PALM DESERT, CALIFORNIA, 92260. 2.That the full name and address of the owner of said interest or estate is set forth in the preceding paragraph. 3.That the nature of the title of the stated owner, as set forth in paragraph 1, is FEE. 4.That on the 6th day of August 2021 work of improvement described as the San Pablo Phase II Street Improvements, Project No. 681-20 Contract No. C38820B, on the real property herein described was completed. 5.That the name of the original contractor, if any, for said work of improvement was: Los Angeles Engineering, Inc., 633 North Barranca Avenue, Covina, CA 91723. 6.That the real property herein referred to is situated in the City of Palm Desert, County of Riverside, State of California, and is described as 42000 – 45000 San Pablo Avenue, Palm Desert, California 92260. 7.I, Jan C. Harnik, Mayor of the City of Palm Desert, am authorized to execute and file this Notice of Completion with the County Recorder of the County of Riverside on behalf of the City of Palm Desert. I have read the Notice of Completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. CITY OF PALM DESERT A MUNICIPAL CORPORATION Date: By: Jan C. Harnik, Mayor When recorded, return to: Office of the City Clerk City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 STATE OF CALIFORNIA } } ss COUNTY OF RIVERSIDE } On __________ __________, 2021, before me, Níamh M. Ortega, Deputy City Clerk of the City of Palm Desert, personally appeared Jan Harnik, Mayor of the City of Palm Desert, a Municipal Corporation, and acknowledged to me that the City of Palm Desert executed the same. Níamh M. Ortega, Deputy City Clerk Rev. May 2020 Page 291 Contract # / P.O. # C38820B P115151 Change Order No. 13 Contingency: YES NO Contract Purpose: San Pablo Avenue Phase 2 Streetscape Improvements Account No. 4514342-4400100 Contractor’s Name: Los Angeles Engineering, Inc. Project No. 681-20 633 N. Barranca Avenue, Covina, CA 91723 Vendor No. V0015332 You are hereby requested to comply with the following changes from the contract plans and specifications: DESCRIPTION OF CHANGES DECREASE INCREASE In Contract Price In Contract Price 1. Repair sink hole at Magnesia Falls. Work was performed at force account.32,067.10 2. Final Contract Bid Item Balance 9,645.31 TOTALS: 9,645.31 32,067.10 NET CHANGE IN CONTRACT PRICE: 22,421.79 JUSTIFICATION: 1.City directed the Contractor to repair an approximately 10’x75’ sink hole at Magnesia Falls that was outside the project limits. The Contractor performed the work at force account. 2.This Construction Change Order includes the balance of the final Contract bid item quantities for the project. TOTAL BUDGET FOR PROJECT:+7,653,517.95 CONTINGENCY: Less: Expend. & Encumb. To Date: -7,139,967.95 Amount Approved by Council: +998,284.95 Less: This Amendment Amount: -22,421.79 Less: Prior Change Order(s): -484,734.95 BALANCE OF BUDGET Less: This Change Order:-22,421.79 REMAINING FOR PROJECT:491,128.21 Balance Remaining of Contingency:491,128.21 The amount of the Contract will be increased by the Sum of: Twenty-Two Thousand Four Hundred Twenty- One and 79/100 dollars ($22,421.79). Page 292 Contract C38820B Contract Change Order No. 13 Continued from front This Change Order covers changes to the subject contract as described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Change Order items for a lump sum price agreed upon between the Contractor and the City of Palm Desert, otherwise referred to as Owner. Contract Time Extension: 0 Calendar Days Revised Contract Total: $7,162,389.74 The undersigned Contractor approves the foregoing Change Order No. 13 as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous costs relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on account of said Change Order No. 13. The Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of that directly or indirectly related to the approved time extension, required to complete the Change Order items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Change Order shall be effective when approved by the Owner. Execution of this Change Order by the Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the Owner from all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and all consequential damages. This document will become a supplement to the Contract and all provisions will apply hereto, all items included above must have required signatures as per the purchase resolution. 1.REQUESTED BY:2.ACCEPTED BY: ANDY FIRESTINE ASSISTANT CITY MANAGER CONTRACTOR Date Accepted 3.CERTIFIED FUNDS AVAILABLE:4.APPROVED BY: JANET MOORE FINANCE DIRECTOR L.TODD HILEMAN CITY MANAGER Date Approved NOTE: No payments will be made prior to City Manager and Council approval PlanetBids: QC: Page 293 Page 1 of 3 AMENDMENT NO. 1 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND SOUTHSTAR ENGINEERING & CONSULTING, INC. Contract No. C38820A 1.Parties and Date. This Amendment No. 1 to the PROFESSIONAL CONSULTANT SERVICES AGREEMENT is made and entered into as of this 10TH day of February, 2022, by and between the City of Palm Desert (“City”) and SOUTHSTAR ENGINEERING & CONSULTING, INC., a California Corporation with its principal place of business at 1945 Chicago Avenue, Unit C, Riverside, CA 92507 (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.” 2.Recitals. 2.1 Agreement. The City and Southstar Engineering & Consulting, Inc. have entered into an agreement entitled “PROFESSIONAL CONSULTANT SERVICES AGREEMENT” dated March 12, 2020 (“Agreement” or “Contract”) for the purpose of retaining the services of Consultant to provide certain professional services. 2.2 Amendment. The City and Southstar Engineering & Consulting, Inc. desire to amend the Agreement for additional professional services related to the San Pablo Phase 2 Streetscape Improvements project in the amount of up to $25,000. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3.5.14 of the Agreement. 3.Terms. 3.1 Term. Section 3.1.2 of the Agreement is hereby amended in its entirety to read as follows: “The term of this Agreement shall be from March 12, 2020, to June 30, 2022, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines.” 3.2 Compensation. Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows: “Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in the rate sheet provided by the Consultant. The total compensation shall not exceed One Million Ninety-Seven Thousand Seven Hundred Sixty Six and 76/100 ($1,097,766.76) without authorization of the City Council or City Manager, as applicable, per the Palm Desert Municipal Code. 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 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Page 294 Page 2 of 3 parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 3.4 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obliga tions they have undertaken pursuant to this Amendment No. 1. 3.5 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. [SIGNATURES ON FOLLOWING PAGE] Page 295 Page 3 of 3 SIGNATURE PAGE FOR AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND SOUTHSTAR ENGINERING & CONSULTING, INC. IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the PROFESSIONAL CONSULTANT SERVICES AGREEMENT as of the day and year first above written. CITY OF PALM DESERT Approved By: JAN C. HARNIK MAYOR Attested By: DEPUTY CITY CLERK Approved As To Form: By: Best Best & Krieger LLP City Attorney SOUTHSTAR ENGINERING & CONSULTING, INC. Signature Name Title Signature Name Title QC PlanetBids ID: _____________ __________ __________ Page 296 Page 297 [This page has intentionally been left blank.] Page 298 STAFF REPORT CITY OF PALM DESERT DEPARTMENT OF BUILDING AND SAFETY MEETING DATE: February 10, 2022 PREPARED BY: Jason Finley, Chief Building Official REQUEST: Approve Mills Act Contract for property located at 72-765 Mesquite Court, Unit C, Kings Point at Palm Desert (Shadow Cove), APN 628- 270-033. ___________________________________________________________________________ Recommendation By Minute Motion: 1.Approve the following Mills Act contract for 72-765 Mesquite Court, Unit C, Kings Point at Palm Desert (Shadow Cove), APN 628-270-033 in accordance with section 29.70.030 of the Palm Desert Municipal Code (PDMC). 2. Authorize City Manager and City Attorney to approve, sign and execute the contracts. Strategic Plan The California Mills Act Program (a voluntary program) provides property owners of qualified historic landmarks and districts the opportunity and tax incentives to preserve their properties in the original aesthetic conditions. In doing so, this program promotes the goals of the Arts and Culture element of the City’s Envision Palm Desert Strategic Plan by increasing the public recognition and appreciation of our City’s architectural and artistic treasures. Cultural tourism events have grown in popularity throughout the Coachella Valley to celebrate these types of architecture. Tourists drawn to Palm Desert to view our growing list of cultural landmarks provide economic benefits to the City of Palm Desert Executive Summary Kings Point at Palm Desert was designed in the mid-century by Hugh Michael Kaptur and built by Kings Point Developers between 1974 to 1976. It is the largest example of Kaptur’s work within the City whose accolades include homes for William Holden and Steve McQueen’s. Kaptur’s vision was to maintain sightlines to take advantage of the beautiful mountain views. Kings Point was designated as a Historic District property by City Council Resolution No. 2019-89 on December 12, 2019. A “Historic District” designation allows properties within Page 299 February 10, 2022 - Staff Report Mills Act Contract that area to voluntarily apply for the California Mills Act designation when a property: 1)Owner-occupied or income-producing property for the purpose of protecting and preserving properties. 2)Is of historical significance and considered historic if it is at least 50 years old. 3)Considered a good example of a particular architectural style or if it is associated with a person or event of local, statewide, or national historic importance. The Cultural Resources Preservation Committee, along with staff, reviewed and confirmed this property meets the necessary criteria and recommended moving said application to City Council for approval. Once a property owner enters a contract, the County Assessor will determine the value of the property as of January 1 of each year based upon an income approach to valuation (“restricted value”) rather than the property’s market value. The income projected for an owner-occupied property is based on comparable rents for similar properties in the area or, if sufficient rental information is unavailable, the income that it could reasonably be expected to produce under prudent management. In the case of an income producing property, the income amount is based on rent received and on typical rents received for similar properties having similar uses. The restricted value can be considerably lower than the market value thereby creating tax savings to the property owner, especially if the building was recently purchased. During the term of the contract, the property owner is required to allow for periodic examinations of the interior and exterior of the premises by the County Assessor, the Department of Parks and Recreation, the State Board of Equalization, and the City or its agent as may be necessary to determine the Owner’s compliance with the Agreement. Background Analysis The Mills Act (Government Code 50280 et seq.) is a State law that provides incentives for the restoration and preservation of qualified historic buildings by private property owners. Enacted in 1972, the Mills Act legislation grants participating local governments (cities and counties) the authority to enter into contracts with owners of qualified owner- occupied and income-producing property who actively participate in the rehabilitation, restoration, preservation, and maintenance of their historic property. In exchange, participating property owners may be eligible for a reduction in their property taxes. The Mills Act is recognized as one of the most important incentive programs available in California for use by private property owners of qualified historic buildings. Over 80 communities in the state have established a Mills Act program. Page 300 February 10, 2022 - Staff Report Mills Act Contract Applications for a Mills Act contract are hereby presented to the City Council for review and approval. The staff has developed a Mills Acts Program Manual, which includes an overview of the Mills Act program, submittal requirements and worksheets needed for review and processing of the Mills Act contract requests. Fiscal Analysis There is no fiscal impact associated with this action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER RH Robert W. Hargreaves City Attorney Martin Alvarez Martin Alverez, Director of Development Services N/A Janet M. Moore Director of Finance N/A Andy Firestine Assistant City Manager City Manager Todd Hileman: L. Todd Hileman APPLICANT: Judith Lynn Snow 72-765 Mesquite Court, Unit C Palm Desert, Ca 92260 ATTACHMENTS: 1. Mills Act Contract 2.Mills Act Application 3. Mills Act Manual Page 301 RECORDING REQUESTED BY, AND WHEN RECORDED, MAIL TO: City Clerk’s Office City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 FOR THE BENEFIT OF THE CITY OF PALM DESERT -NO FEE - 6103 OF THE GOVT. CODE (This Space for Recorder’s Use Only) Historic Property Preservation Agreement (“Mills Act Contract”) Between City of Palm Desert, California a Municipal Corporation “City” and Judith L. Snow “Owner” Legal Description of Property APN 628-270-033 72-765 Mesquite Court, Unit C, Palm Desert, California 92260 Dated: February 10, 2022 (Resolution No. 2019-89 – Case No. CRPC 19-01 Approved at the Palm Desert City Council Meeting of December 12, 2019) ____________________________________________________________________________________________________________ (Title of Document) Page 302 2 HISTORIC PROPERTY PRESERVATION AGREEMENT (“MILLS ACT CONTRACT or Agreement”) This agreement is made this February 10, 2022, by and between the City of Palm Desert, a municipal corporation (“City”) and Judith L. Snow (“Owner”). RECITALS 1. California Government Code section 50280, et. seq. allows cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance. 2. Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address 72-765 Mesquite Court, Unit C, Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference. 3. On December 12, 2019, the Cultural Resources Preservation Committee and/or the City Council designated the Historic Property as an historic resource pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code. 4. City and Owner desire to enter into this Agreement for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character. 5. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. Page 303 3 TERMS NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: 1.Effective Date and Term of Agreement. This Agreement shall be effective and commence on February 10, 2022, (“Effective Date”) and shall remain in effect for a term of ten (10) years thereafter. 2.Yearly Renewal. Each year upon the anniversary of the Effective Date (“Renewal Date”), an additional one (1) year shall automatically be added to the remaining term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreement. 3. Nonrenewal. If either the Owner or City desires in any year not to renew this Agreement, Owner or City shall serve a written notice of nonrenewal upon the party in advance of the Renewal Date (“Notice of Nonrenewal”). The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then remaining. 4.Owner Protest of City Nonrenewal. Within fifteen (15) days of Owner’s receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protect, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreement. Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5.Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: Page 304 4 A.Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Attached hereto as Exhibit “B,” and incorporated herein by this reference, is a list of the minimum standards and conditions for maintenance, use, protection, and preservation of the Historic Property, which shall apply to the Historic Property and be complied with by Owner throughout the term of this Agreement. In addition, Owner shall comply with the terms of the City’s Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal Code), and shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B.Owner shall, where necessary, repair, maintain, restore, and rehabilitate the Historic Property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation and the City of Palm Desert. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs attached as Exhibit “C” and incorporated herein by this reference. At a minimum, Owner shall continually maintain the exterior of the Historic Property in the same condition as documented in Exhibit “C.” C.Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit “D,” which is incorporated herein by this reference. All such projects shall be undertaken and completed in accordance with the Secretary of Interior Standards for Rehabilitation and the City of Palm Desert design guidelines. D.Owner shall not be permitted to block the view corridor with any new structure, such as walls, fences, or shrubbery, so as to prevent the viewing of the Historic Property from the public right-of-way. Page 305 5 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the interior and exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement. City shall inspect Historic Property prior to entering into this Agreement and at least every five years thereafter to determine Owner’s continued compliance with Agreement. 7. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. 8. Breach of Agreement; Remedies. A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner’s violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City’s declaration of Owner’s breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B. Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50286, that Owner breached any of the conditions of the Agreement, Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a Page 306 6 qualified historic property, or Owner failed to maintain and preserve the Historic Property in accordance with the terms of this Agreement. If this Agreement is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Riverside as required by Government Code section 50286. C.Alternative Remedies. As an alternative to cancellation of this Agreement for Owner’s breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9.Destruction of Property; Eminent Domain; Cancellation. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled. No cancellation fee pursuant to Government Code section 50286 shall be imposed if the Agreement is cancelled pursuant to this Section. 10. Waiver. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreement. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to the City to pursue in the event that there is a reach of this Agreement. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 11.Binding Effect of Agreement. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and Page 307 7 restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument herein after executed, covering or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions are set forth in such contract, deed or other instrument. 12. Covenants Run with the Land. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. 13. Notice. Any notice required to be given by the terms of this Agreement shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City: City of Palm Desert Building and Safety Division 73-510 Fred Waring Drive Palm Desert, CA 92260 Owner: Judith L. Snow 72-765 Mesquite Court, Unit C, Palm Desert, Ca 92260 14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and Page 308 8 any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15.Indemnity of City. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restrictions on the use or development of the Historic Property, from application or enforcement of Title 29 of the City’s Municipal Code, or from the enforcement of this Agreement. This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreement and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents. 16.Binding Upon Successors. All of the agreements, rights, covenants, reservations and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever. 17.Legal Costs. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein, or to determine the rights and duties of any party Page 309 9 hereunder, the prevailing party in such proceeding may recover all reasonable attorneys’ fees to be fixed by the court, in addition to court costs and other relief ordered by the court. 18.Severability. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby. 19. Recordation. No later than twenty (20) days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Riverside. 20.Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21.Governing Law and Venue. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. Page 310 10 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: _______________ CITY OF PALM DESERT By ______________________ JAN C. HARNIK, MAYOR ATTEST: By ________________________________ NIAMH ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Dated: ________________ Judith Lynn Snow ___________________________ Owner Owner APPROVED AS TO FORM ___ ROBERT W. HARGREAVES CITY ATTORNEY Page 311 11 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 ___________________ } } SS. County of __________________ } On , 2022 , before me,____________________, a 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 Page 312 Page 313 Page 314 Page 315 Page 316 Page 317 Page 318 Page 319 Page 320 Page 321 Page 322 Page 323 Page 324 Page 325 Page 326 Page 327 Page 328 Page 329 Page 330 Page 331 Page 332 Page 333 Page 334 Page 335 Page 336 Page 337 Page 338 Page 339 Page 340 Page 341 Page 342 Page 343 1 CITY OF PALM DESERT MILLS ACT PROGRAM APPLICATION MANUAL Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260 (760)346-0611 Page 344 2 TABLE OF CONTENTS APPLICATION INFORMATION Introduction and Purpose 3 Property Qualifications 3 Terms of a Contract 3 Administration 4 Application and Selection Process 5 FORMS Application Checklist 6 Application 7 10-Year Property Improvement Plan 8 APPENDICES A. Sample Projects Qualified Under the Mills Act 10 B. Secretary of the Interior’s Standards for Rehabilitation 11 C. Sample Mills Act Contract 12 D. Sample Site Plan 25 E. Site Inspection Form 26 F. State Mills Act Legislation 27 Page 345 3 MILLS ACT PROGRAM APPLICATION MANUAL INTRODUCTION AND PURPOSE The City of Palm Desert Mills Act Program was established by Resolution No. 2011-1 in 2011. The Mills Act is state legislation, en acted in 1972, that grants participating local governments the authority to enter into contracts with owners of qualified historic properties who receive a reduction in local property taxes to help offset the costs to restore, rehabilitate, repair and maintain their properties. Although it is applicable to historic income producing properties, it is the single most important economic incentive program available in California for owner occupied historic residential buildings, particularly single-family homes. A Mills Act program is developed in accordance with California Government Code, Article 12, Sections 50280-50290 and California Revenue and Taxation Code, Article 1.0, Sections 439-439.4 This manual is designed to assist you in completing the Mills Act application and provides a summary of the program requirements. QUALIFYING HISTORIC PROPERTIES To qualify for the Palm Desert Mills Act program a property must be one of the following:  Designated City Landmark  Contributing feature of a designated City historic district  Listed individually in the National Register of Historic Places  Contributing feature of historic district listed in the National Register of Historic Places  National Historic Landmark A property must be designated at the time an application is submitted. Questions regarding the designation status of a property of the City’s designation program can be addressed to the Cultural Resources Administrator in the Depa rtment of Building and Safety. TERMS OF A MILLS ACT CONTRACT Duration: A Mills Act contract is for a minimum term of ten years. It is automatically renewed each year on its anniversary date and a new ten year term becomes effective. Contracts are transferred to new owners when the property is sol d. Page 346 4 Termination: The property owner may terminate the contract by notifying the City at least ninety (90) days prior to the annual renewal date. The City may terminate the contract by notifying the owner at least sixty (60) days prior to the renewal date. The owner may make a written protest about termination by the City. The contract remains in effect for the balance of the term of the contract beyond the year of termination. Alterations or Additions to a Property: Work performed on the property (interior, exterior, and grounds) must meet all City requirements and comply with the “Secretary of the Interior’s Standards for Rehabilitation”. A 10-Year Property Improvement Plan is required as part of the application and will be re-evaluated by the City every five years or as needed. Annual Reports: Property owners are required to submit an annual report to the City indicating work completed per the 10-Year Property Improvement Plan. The report is due by December 31 of each year and should include copies of receipts and/or building permits where applicable. Inspection for Compliance: City staff conducts a pre-contract inspection of the property to ensure compliance with the terms of the contract. Conditions not conforming to the Secretary of the Interior’s Standards for Rehabilitation may be required to be brought into compliance before a contract is executed. City staff will conduct annual property inspections following submittal of the annual report to ensure that proposed work has been completed and meets all applicable City standards. Inspections may also be required by the County Assessor, State office Historic Preservation and/or State Board of Equalization. All inspections are by appointment with the property owner. Breach of Contract: If the City determines that the property owner is in breach of contract, the City may cancel the contract and the owner is liable for a cancellation fee of 12.5% of the current value of the property as determined by the County Assessor. ADMINISTRATION City of Palm Desert: Mills Act applications and contracts are administered by the Cultural Resources Administrator in the Department of Building and Safety. Upon selection for the program, contracts are reviewed by the Cultural Resources Preservation Committee and referred to the City Council for approval. Riverside County: The County records executed Mills Act contract documents with the County Recorder before December 31 of the applicable calendar year. After recordation, the City transmits contract documents to the Riverside County Assessor where the calculation for the exact property tax under the Mills Act is completed. Page 347 5 The County Assessor calculates the tax saving using a stated-mandated reassessment formula based on “capitalization of income” rather than simple “market value.” Mills Act participants may realize a property tax savings averaging about 50% each year depending on property value, net operating income, and other variables. Recently purchased historic properties are most likely to receive the highest reduction. The Mills Act Program does not guarantee a reduction amount for any property. Contracts that are recorded by December 31 are reassessed by June 30 of the following year and the reduced tax will appear on the tax bill of October of that year. State of California: Within six months of entering into a Mills Act contract, the prope rty owner must submit written notice to the State Office of Historic Preservation. This notification states that the property owner has entered into a Mills Act contract. A copy of the letter must be submitted to the City Cultural Resources Administrator. APPLICATION AND SELECTION PROCESS The City accepts up to seven (7) Mills Act contracts per year. Applications are accepted year-round, but to be considered for the next fiscal year applications must be submitted by July 30th. Fees: A non-refundable application fee of $318.00 is due with your application. If your application is accepted, a contract initiation fee deposit of $1000.00 will be due. Submittal Requirements: The application should include the following: 1. Application Checklist 2. Application Form 3. Copy of the grant deed, including a complete legal description 4. 10-Year Property Improvement Plan 5. Photographs – Photographs shall be black and white 35mm film including negatives or compact disc (CD) of the building interior (all rooms) and exterior (front, sides, rear as well as assessor buildings, and hardscape and landscape features). Include as many views of architectural details as necessary to document the character defining features of the building and site. Include one 8 x 10 printed image that best captures the property, (e.g. front façade). Images shall be printed onto archival paper in 3 x 5, 4 x 6 or multiple image letter sized sheet format. 6. Site plan – The plan shall be drawn to scale and showing the location of all buildings, structures and major site features on the property, street names, north arrow, and dimensions. 7. Non-refundable application fee of $318.00 The complete application should be submitted to: Cultural Resources Administrator Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Page 348 6 City of Palm Desert Mills Act Application Checklist The following should be completed and submitted with your application packet. See the Palm Desert Mills Act Application Manual for details on the submittal requirements. † Application Form † Copy of the grant deed, including complete legal description † 10-Year Property Improvement Plan † Photographs † Site Plan † Non-Refundable Application Fee The complete application should be submitted to: Cultural Resources Administrator Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Page 349 7 City of Palm Desert Department of Building and Safety MILLS ACT HISTORIC PROPERTY CONTRACT APPLICATION 73-510 Fred W aring Drive · Palm Desert · California · 92260 · (760) 776-6420 · Fax (760) 776-6392 Property Owner Information: Name: Address: City: State: Zip: Phone: (HM) (WK) Email: Property Information: Address of Property: Assessor’s Parcel No(s): Legal Description (attach additional sheets if necessary): Date of Purchase by Current owner: Use of Property: Eligibility for the Mills Act Program: A property must be designated and recorded with the Riverside County Recorder at the time an application is submitted. Please check the designation(s) that apply to the property: City Historic Landmark Contributor to a City Historic District National Register of Historic Places (individually listed) National Register of Historic Places (contributor to a historic district) National Historic Landmark Name of Historic District (if applicable): Date of Designation: Property Owner Consent: I am (w e are) the present ow ner(s) of the property described above and hereby apply for consideration for a Mills Act Historic Property Contract Signature of Property Owner Date Signature of Property Owner Date For Office Use: Mills Act Application Page 350 8 10-Year Property Improvement Plan For sample projects qualifying under the Mills Act see Appendix “A”. Attach additional sheets if necessary. Year Proposed Project Estimated Cost 1 2 3 4 5 6 7 8 9 10 This schedule will be attached as an exhibit to the Historic Property Preservation Agreement (Mills Act Contract). It may be revised or updated by mutual consent of the property owner(s) and the Cultural Resources Administrator in the Department of Building and Safety. All projects that affect the exterior of the property are subject to review and approval by the Cultural Resources Administrator and/or the Cultural Resources Preservation Committee before work begins. Work must meet all City requirements and the Secretary of the Interior’s Standards for Rehabilitation (Appendix B). Page 351 APPENDICES A. Sample Projects Qualified Under the Mills Act B. Secretary of the Interior’s Standards for Rehabilitation C. Sample Mills Act Contract Agreement D. Sample Site Plan E. Site Inspection Form F. State Mills Act Legislation Page 352 APPENDIX A Sample Projects Qualified Under the Mills Act Program Access Modifications – Exterior Access Modifications – Interior Accessory Structure – Repair or Replace Annual Maintenance and Repairs Appliance Vent Architectural – Remove Non-historic feature and Restore to Original Architectural Trim – Repair Architectural Trim – Replace Architectural Trim – Install New Balcony/Decks – New Railings Balcony/Decks – Repair or Replace Basement – Access – Repair or Replace to Code Basement – New or Rebuild Cabinets – New Built-in Bathroom Cabinets – New Built-in Kitchen Cabinets – New Built-in Other Caulking Chimney – Inspect and Clean Chimney – New Chimney – Rebuild or Repair Code Repair Item Column – Replace or Rebuild Corbels/Structural Brackets – Replace or Repair Door – Hardware Door – New Basement Hatch Cover and Base Door – Repair or Replace Drain for Deck – Install or Repair Drainage Protection or Correction Dry-Rot Remove, Repair, and/or Replace Electrical – Rewire or Install New Outlets Electrical – Complete Rewire and Service Upgrade Electrical – Ground and Service Entry Electrical – Install New Circuits Electrical – Lighting Fixtures Electrical – New Service Lines to Garage Electrical – Security Lighting and Alarm Electrical – New Outlets Flashing Floor Furnace – Remove or Restore Flooring – Carpet Flooring – Repair Flooring - Repair Wood Floors Flooring – Replacement Foundation – Bolting and Seismic W ork Foundation – New Foundation – Repair Gable or Attic – Re-screening Garage Door Garage – Repair or Replace Gutters and Downspouts HVAC – Complete New System HVAC – Maintenance or Repair Insulation – Walls Insulation – Attic Interior Trim – Refinish Kitchen – New Counters Masonry – New Masonry – Repair or Replace Tile Hearth Masonry – Repairs Masonry – Re-point Brick Mechanical – Air Conditioning Mechanical – Heating Unit Mechanical – Ventilation and Duct W ork Painting – Exterior Painting – Interior Painting – Lead Based Paint Removal Painting – Exterior Trim Patio – Repair Plastering – Remove, Replace, or Refinish Plumbing – DWV (Drain, Waste, Vent) Plumbing – Fixtures Plumbing – Install New Supply Lines Plumbing – Install Sump Pump & discharge drain Plumbing – Minor Repairs Plumbing – New Supply Plumbing – Service Lines Plumbing – Sewer Porch – Ceiling Replacement Porch – Repair or Replace Porch Railing – Repair or Replace to Code Porch – Resurface Remove Substandard Construction Repair Eaves and/or Overhangs Repair Exterior Stucco Replace Non-historic Feature Roof – Minor Repair Roof – Re-roof Roof – Tear off and Install New Security Lighting and Alarm System Seismic Retrofitting Siding – Remove Asbestos Siding and Restore Siding – Repair or Replace Skylights – Repair or Replace Stair – Repair or Replace Stone W ork Stoop – Repair or Replace Structural – New Framing or Repairs Structural Bracing Structural Modifications Structural Repairs – Roof and or Ceiling Joists Termite Treatment Termite Damage – Repair Tile – Replace, Repair, Re-point Utility Enclosure – New Ventilation – Attic Fan Waterproofing Weatherproofing Window – Screens or Hardware Windows – Repair or Replacement Page 353 APPENDIX B The Secretary of the Interior's Standards for Rehabilitation The Standards (Department of Interior regulations, 36 CFR 67) pertain to historic buildings of all materials, construction types, sizes, and occupancy and encompass the exterior and the interior, related landscape features and the building's site and environment as well as attached, adjacent, or related new construction. The Standards are to be applied to specific rehabilitation projects in a reasonable manner, taking into consideration economic and technical feasibility. 1. A property shall be used for its historic purpose or be placed in a new use that requires minimal change to the defining characteristics of the building and its site and environment. 2. The historic character of a property shall be retained and preserved. The removal of historic materials or alteration of features and spaces that characterize a property shall be avoided. 3. Each property shall be recognized as a physical record of its time, place, and use. Changes that create a false sense of historical development, such as adding conjectural features or architectural elements from other buildings, shall not be undertaken. 4. Most properties change over time; those changes that have acquired historic significance in their own right shall be retained and preserved. 5. Distinctive features, finishes, and construction techniques or examples of craftsmanship that characterize a property shall be preserved. 6. Deteriorated historic features shall be repaired rather than replaced. Where the severity of deterioration requires replacement of a distinctive feature, the new feature shall match the old in design, color, texture, and other visual qualities and, where possible, materials. Replacement of missing features shall be substantiated by documentary, physical, or pictorial evidence. 7. Chemical or physical treatments, such as sandblasting, that cause damage to historic materials shall not be used. The surface cleaning of structures, if appropriate, shall be undertaken using the gentlest means possible. 8. Significant archeological resources affected by a project shall be protected and preserved. If such resources must be disturbed, mitigation measures shall be undertaken. 9. New additions, exterior alterations, or related new construction shall not destroy historic materials that characterize the property. The new work shall be differentiated from the old and shall be compatible with the massing, size, scale, and architectural features to protect the historic integrity of the property and its environment. 10. New additions and adjacent or related new construction shall be undertaken in such a manner that if removed in the future, the essential form and integrity of the historic property and its environment would be unimpaired. Page 354 APPENDIX C Recording Requested by: ) When Recorded Mail to: ) ) CITY OF PALM DESERT ) 73-510 Fred W aring Drive ) Palm Desert, CA 92260 ) ) Attention: Cultural Resources ) Administrator ) ) ) ) (Space above for Recorder’s Office) HISTORIC PROPERTY PRESERVATION AGREEMENT (“MILLS ACT CONTRACT”) betw een THE CITY OF PALM DESERT a municipal corporation and Owner(s) of the property located at APN - - Page 355 HISTORIC PROPERTY PRESERVATION AGREEMENT (“MILLS ACT CONTRACT”) This agreement is made this _, by and between the City of Palm Desert, a municipal corporation (“City”) and (“Owner”). RECITALS 1. California Government Code section 50280, et. seq. allow cities the discretion to enter into contracts with the owners of qualified historic properties, as that term is defined in Government Code section 50280.1, for the purpose of providing for the use, maintenance, protection, and restoration of such historic property so as to retain its characteristics as property of historic significance. 2. Owner holds fee title in and to that certain real property, together with associated structures and improvements thereon, generally located at the street address Palm Desert, California (“Historic Property”). A legal description of the Historic Property is attached hereto as Exhibit “A,” and incorporated herein by this reference. 3. On ,_ , the Cultural Resources Preservation Committee and/or the City Council designated the Historic Property as an historic resource pursuant to the terms and provisions of Title 29 of the Palm Desert Municipal Code. 4. City and Owner desire to enter into this Agreem ent for the purpose of protecting and preserving the characteristics of historical significance of the Historic Property that help provide the community with its own unique civic identity and character. 5. Owner, in consideration for abiding by the terms of this Agreement, shall be entitled to qualify for a reassessment of valuation of the Historic Property, pursuant to the provisions of Chapter 3, Part 2, of Division 1 of the California Revenue and Taxation Code, and any corresponding adjustment in property taxes resulting therefrom. TERMS NOW, THEREFORE, the City and Owner in consideration of mutual covenants and conditions set forth herein, do hereby agree as follows: Page 356 1. Effective Date and Term of Agreement. This Agreem ent shall be effective and commence on _, 20_ effect for a term of ten (10) years thereafter. (“Effective Date”) and shall remain in 2. Yearly Renewal. Each year upon the anniversary of the Effective Date (“Renewal Date”), an additional one (1) year shall automatically be added to the remaining term of the Agreement unless a notice of nonrenewal is delivered as provided in Section 3 of this Agreem ent. 3. Nonrenewal. If either the Owner or City desires in any year not to renew this Agreem ent, Owner or City shall serve a written notice of nonrenewal upon the party in advance of the Renewal Date (“Notice of Nonrenewal”). The Notice of Nonrenewal shall be effective only if served by Owner upon City at least ninety (90) days prior to the Renewal Date, or if served by City upon Owner, the Notice of Nonrenewal shall be effective only if served upon Owner at least sixty (60) days prior to the Renewal Date. If either City or Owner serves a Notice of Nonrenewal in any year, this Agreement shall remain in effect for the balance of the term then remaining. 4. Owner Protest of City Nonrenewal. Within fifteen (15) days of Owner’s receipt of the Notice of Nonrenewal from City, Owner may file with City a written protest of the Notice of Nonrenewal. Upon receipt of the written protect, the City Council shall set a hearing prior to the expiration of the Renewal Date of this Agreem ent. Owner may furnish the City Council with any information which Owner deems relevant and shall furnish the City Council with any information it may require. The City Council may, at any time prior to the annual Renewal Date, withdraw its Notice of Nonrenewal. 5. Standards for Historical Property. During the term of this Agreement, the Historic Property shall be subject to the following conditions, requirements, and restrictions: A. Owner shall preserve and maintain the characteristics of the cultural and historical significance of the Historic Property. Attached hereto as Exhibit “B,” and incorporated herein by this reference, is a list of the minimum standards and conditions for maintenance, use, protection, and Page 357 18 preservation of the Historic Property, which shall apply to the Historic Property and be complied with by Owner throughout the term of this Agreem ent. In addition, Owner shall comply with the terms of the City’s Cultural Resources Ordinance 1168 (Title 29 of the Palm Desert Municipal Code), and shall obtain any applicable permits necessary to protect, preserve, restore, and rehabilitate the Historic Property so as to maintain its historical and cultural significance. B. Owner shall, where necessary, repair, maintain, restore, and rehabilitate the Historic Property according to the rules and regulations of the Office of Historic Preservation of the State Department of Parks and Recreation and the City of Palm Desert. The condition of the exterior of the Historic Property on the effective date of this Agreement is documented in photographs attached as Exhibit “C” and incorporated herein by this reference. At a minimum, Owner shall continually maintain the exterior of the Historic Property in the same condition as documented in Exhibit “C.” C. Owner shall carry out specific restoration, repair, maintenance, and/or rehabilitation projects on the Historic Property, as outlined in the attached Exhibit “D,” which is incorporated herein by this reference. All such projects shall be undertaken and completed in accordance with the Secretary of Interior Standards for Rehabilitation and the City of Palm Desert design guidelines. D. Owner shall not be permitted to block the view corridor with any new structure, such as walls, fences or shrubbery, so as to prevent the viewing of the Historic Property from the public right-of-way. 6. Periodic Examinations. Upon reasonable advance notice, Owner shall allow reasonable periodic examinations of the exterior of the Historic Property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization and/or City, as may be necessary to determine Owner’s compliance with the terms and provisions of this Agreement. 7. Provision of Information of Compliance. Owner hereby agrees to furnish City with any and all information requested by City, which City deems necessary or advisable Page 358 19 to determine eligibility of the Historic Property and compliance with the terms and provisions of this Agreement. 8. Breach of Agreement; Remedies. A. Notice of Breach; Opportunity to Cure. If Owner breaches any provision of this Agreement, City may give written notice to Owner by registered or certified mail detailing Owner’s violations. If such violation is not corrected to the reasonable satisfaction of City within thirty (30) days after the date of notice of violation, or within such a reasonable time as may be required to cure the violation (provided the acts to cure the violation are commenced within thirty (30) days and thereafter diligently pursued to completion), the City may, without further notice, declare Owner to be in breach of this Agreement. Upon City’s declaration of Owner’s breach, City may pursue any remedy available under local, state, or federal law, including those specifically provided for in this section. B. Remedy - Cancellation. City may cancel this Agreement if City determines, following a duly noticed public hearing in accordance with Government Code section 50286, that Owner breached any of the conditions of the Agreement, Owner allowed the Historic Property to deteriorate to the point that it no longer meets the standards for a qualified historic property, or Owner failed to maintain and preserve the Historic Property in accordance with the terms of this Agreement. If this Agreem ent is cancelled, under this paragraph, Owner shall pay a cancellation fee to the Office of the Auditor for the County of Riverside as required by Government Code section 50286. C. Alternative Remedies. As an alternative to cancellation of this Agreement for Owner’s breach of any condition, City may bring an action in court necessary to enforce this Agreement including, but not limited to, an action to enforce this Agreement by specific performance, injunction, or receivership. 9. Destruction of Property; Eminent Domain; Cancellation. If the Historic Property is destroyed by earthquake, fire, flood, or other natural disaster such that in the Page 359 20 opinion of the City Building Official more than sixty percent (60%) of the original fabric of the structure must be replaced, this Agreement shall be cancelled because the historic value of the structure will have been destroyed. If the Historic Property is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the City Council to frustrate the purpose of this Agreement, this Agreement shall be cancelled. No cancellation fee pursuant to Government Code section 50286 shall be imposed if the Agreem ent is cancelled pursuant to this Section. 10. Waiver. City does not waive any claim of default by Owner if City does not enforce or cancel this Agreem ent. All other remedies at law or in equity which are not otherwise provided for in this Agreement or in City’s regulations governing historic properties are available to the City to pursue in the event that there is a reach of this Agreem ent. No waiver by City of any breach or default under this Agreement shall be deemed to be a waiver of any other subsequent breach thereof or default hereunder. 11. Binding Effect of Agreement. Owner hereby subjects the Historic Property to the covenants, conditions, and restrictions set forth in this Agreement. City and Owner hereby declare their specific intent that the covenants, conditions, and restrictions set forth herein shall be deemed covenants running with the land and shall inure to and be binding upon Owner’s successors and assigns in title or interest to the Historic Property. Each and every contract, deed or other instrument herein after executed, covering or conveying the Historic Property, or any portion thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, reservations and restrictions are set forth in such contract, deed or other instrument. 12. Covenants Run with the Land. City and Owner hereby declare their understanding and intent that the burden of the covenants, reservations and restrictions set forth herein touch and concern the land in that it restricts development of the Historic Property. City and Owner hereby further declare their understanding and intent that the benefit of such covenants, reservations and restrictions touch and concern the land by enhancing and maintaining the cultural and historical characteristics and significance of the Historic Property for the benefit of the public and the Owner. Page 360 21 13. Notice. Any notice required to be given by the terms of this Agreem ent shall be provided at the address of the respective parties as specified below or at any other address as may be later specified by the parties hereto: City: City of Palm Desert Department of Building and Safety 73-510 Fred Waring Drive Palm Desert, CA 92260 Owner: 14. Effect of Agreement. None of the terms, provisions or conditions of this Agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors or assigns, nor shall such terms, provisions or conditions cause the parties to be considered joint venturers or members of any joint enterprise. 15. Indemnity of City. Owner shall defend, indemnify, and hold harmless City and its elected officials, officers, agents and employees from any actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state or local governmental agency, arising out of or incident to (i) the direct or indirect use operation, or maintenance of the Historic Property by Owner or any contractor, subcontractor, employee, agent, lessee, licensee, invitee, or any other person; (ii) Owner’s activities in connection with the Historic Property; and (iii) any restrictions on the use or development of the Historic Property, from application or enforcem ent of Title 29 of the City’s Municipal Code, or from the enforcement of this Agreement. This indem nification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorneys’ fees, and related costs or expenses, and the reimbursement of City, its elected officials, employees, and/or agents for all legal expenses and costs incurred by each of them. Owner’s obligation to indemnify shall survive the termination, cancellation, or expiration of this Agreem ent and shall not be restricted to insurance proceeds, if any, received by City, its elected officials, employees, or agents. Page 361 22 16. Binding Upon Successors. All of the agreements, rights, covenants, reservations and restrictions contained in this Agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns and all persons acquiring any part or portion of the Historic Property, whether by operation of law or in any manner whatsoever. 17. Legal Costs. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, conditions or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorneys’ fees to be fixed by the court, in addition to court costs and other relief ordered by the court. 18. Severability. In the event that any of the provisions of this Agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be effected thereby. 19. Recordation. No later than twenty (20)days after the Effective Date, City shall cause this Agreement to be recorded in the office of the County Recorder of the County of Riverside. Owner shall provide written notice of the contract to the State Office of Historic Preservation within six (6) months of entering into the contract. 20. Amendments. This Agreement may be amended, in whole or in part, only by written recorded instrument executed by the parties hereto. 21. Governing Law and Venue. This Agreement shall be construed and governed in accordance with the laws of the State of California. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Riverside, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. Page 362 23 IN WITNESS WHEREOF, City and Owner have executed this Agreement on the day and year first above written. Dated: CITY OF PALM DESERT By ATTESTED TO: By Dated: Owner Owner APPROVED AS TO FORM City Attorney Page 363 24 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 ___________________ } } SS. County of __________________ } On , 2018 , before me,____________________, a 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 Page 364 25 APPENDIX D Page 365 26 APPENDIX E MILLS ACT PROGRAM CITY STAFF ANNUAL INSPECTION REPORT Date of inspection: Drive-by Site Visit Staff Name: Was work completed in accordance with all City requirements? Yes No Comments: Signature: Page 366 27 APPENDIX F GOVERNMENT CODE SECTION 50280-50290 50280. Upon the application of an owner or the agent of an owner of any qualified historical property, as defined in Section 50280.1, the legislative body of a city, county, or city and county may contract with the owner or agent to restrict the use of the property in a manner which the legislative body deems reasonable to carry out the purposes of this article and of Article 1.9 (commencing with Section 439) of Chapter 3 of Part 2 of Division 1 of the Revenue and Taxation Code. The contract shall meet the requirements of Sections 50281 and 50282. 50280.1. "Qualified historical property" for purposes of this article, means privately owned property which is not exempt from property taxation and which meets either of the following: (a) Listed in the National Register of Historic Places or located in a registered historic district, as defined in Section 1.191-2(b) of Title 26 of the Code of Federal Regulations. (b) Listed in any state, city, county, or city and county official register of historical or architecturally significant sites, places, or landmarks. 50281. Any contract entered into under this article shall contain the following provisions: (a)The term of the contract shall be for a minimum period of 10 years. (b) Where applicable, the contract shall provide the following: (1) For the preservation of the qualified historical property and, when necessary, to restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code. (2) For the periodic examinations of the interior and exterior of the premises by the assessor, the Department of Parks and Recreation, and the State Board of Equalization as may be necessary to determ ine the owner's compliance with the contract. (3) For it to be binding upon, and inure to the benefit of, all successors in interest of the owner. A successor in interest shall have the same rights and obligations under the contract as the original owner who entered into the contract. (c) The owner or agent of an owner shall provide written notice of the contract to the Office of Historic Preservation within six months of entering into the contract. 50281.1. The legislative body entering into a contract described in this article may require that the property owner, as a condition to entering into the contract, pay a fee not to exceed the reasonable cost of administering this program. 50282. (a) Each contract shall provide that on the anniversary date of the contract or such other annual date as is specified in the contract, a year shall be added automatically to the initial term of the contract unless notice of nonrenewal is given as provided in this section. If the property owner or the legislative body desires in any year not to renew the contract, that party shall serve written notice of nonrenewal of the contract on the other party in advance of the annual renewal date of the contract. Unless the notice is served by the owner at least 90 days prior to the renewal date or by the legislative body at least 60 days prior to the renewal date, one year shall automatically be added to the term of the contract. (b) Upon receipt by the owner of a notice from the legislative body of nonrenewal, the owner may make a written protest of the notice of nonrenewal. The legislative body may, at any time prior to the renewal date, withdraw the notice of nonrenewal. (c) If the legislative body or the owner serves notice of intent in any year not to renew the contract, the existing contract shall remain in effect for the balance of the period remaining since the original execution or the last renewal of the contract, as the case may be. (d) The owner shall furnish the legislative body with any information the legislative body shall require in order to enable it to determine the eligibility of the property involved. (e) No later than 20 days after a city or county enters into a contract with an owner pursuant to this article, the clerk of the legislative body shall record with the county recorder a copy of the contract, which shall Page 367 28 describe the property subject thereto. From and after the time of the recordation, this contract shall impart a notice thereof to all persons as is afforded by the recording laws of this state. 50284. The legislative body may cancel a contract if it determines that the owner has breached any of the conditions of the contract provided for in this article or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historical property. The legislative body may also cancel a contract if it determines that the owner has failed to restore or rehabilitate the property in the manner specified in the contract. 50285. No contract shall be canceled under Section 50284 until after the legislative body has given notice of, and has held, a public hearing on the matter. Notice of the hearing shall be mailed to the last known address of each owner of property within the historic zone and shall be published pursuant to Section 6061. 50286. (a) If a contract is canceled under Section 50284, the owner shall pay a cancellation fee equal to 121/2 percent of the current fair market value of the property , as determined by the county assessor as though the property were free of the contractual restriction. (b) The cancellation fee shall be paid to the county auditor, at the time and in the manner that the county auditor shall prescribe, and shall be allocated by the county auditor to each jurisdiction in the tax rate area in which the property is located in the same manner as the auditor allocates the annual tax increment in that tax rate area in that fiscal year. (c) Notwithstanding any other provision of law, revenue received by a school district pursuant to this section shall be considered property tax revenue for the purposes of Section 42238 of the Education Code, and revenue received by a county superintendent of schools pursuant to this section shall be considered property tax revenue for the purposes of Article 3 (commencing with Section 2550) of Chapter 12 of Part 2 of Division 1 of Title 1 of the Education Code. 50287. As an alternative to cancellation of the contract for breach of any condition, the county, city, or any landowner may bring any action in court necessary to enforce a contract including, but not limited to, an action to enforce the contract by specific performance or injunction. 50288. In the event that property subject to contract under this article is acquired in whole or in part by eminent domain or other acquisition by any entity authorized to exercise the power of eminent domain, and the acquisition is determined by the legislative body to frustrate the purpose of the contract, such contract shall be canceled and no fee shall be imposed under Section 50286. Such contract shall be deemed null and void for all purposes of determining the value of the property so acquired. 50289. In the event that property restricted by a contract with a county under this article is annexed to a city, the city shall succeed to all rights, duties, and powers of the county under such contract. 50290. Local agencies and owners of qualified historical properties may consult with the State Historical Resources Commission for its advice and counsel on matters relevant to historical property contracts. Page 368 29 California Revenue and Taxation Code, Article 1.9, Sections 439 – 439.4 439. Historical Property Restrictions; enforceably restricted property. For the purposes of this article and within the meaning of Section 8 of Article XIII of the Constitution, property is "enforceably restricted" if it is subject to an historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. 439.1. Historical Property; definitions. For purposes of this article "restricted historical property" means qualified historical property, as defined in Section 50280.1 of the Government Code, that is subject to a historical property contract executed pursuant to Article 12 (commencing with Section 50280) of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code. For purposes of this section, "qualified historical property" includes qualified historical improvements and any land on which the qualified historical improvements are situated, as specified in the historical property contract. If the historical property contract does not specify the land that is to be included, "qualified historical property" includes only that area of reasonable size that is used as a site for the historical improvements. 439.2. Historical Property; valuation. When valuing enforceably restricted historical property, the county assessor shall not consider sales data on similar property, whether or not enforceably restricted, and shall value that restricted historical property by the capitalization of income method in the following manner: (a) The annual income to be capitalized shall be determined as follows: (1) Where sufficient rental information is available, the income shall be the fair rent that can be imputed to the restricted historical property being valued based upon rent actually received for the property by the owner and upon typical rentals received in the area for similar property in similar use whe re the owner pays the property tax. When the restricted historical property being valued is actually encumbered by a lease, any cash rent or its equivalent considered in determining the fair rent of the property shall be the amount for which the property would be expected to rent were the rental payment to be renegotiated in the light of current conditions, including applicable provisions under which the property is enforceably restricted. (2) Where sufficient rental information is not available, the income shall be that which the restricted historical property being valued reasonably can be expected to yield under prudent management and subject to applicable provisions under which the property is enforceably restricted. (3) If the parties to an instrument that enforceably restricts the property stipulate therein an amount that constitutes the minimum annual income to be capitalized, then the income to be capitalized shall not be less than the amount so stipulated. For purposes of this section, income shall be determined in accordance with rules and regulations issued by the board and with this section and shall be the difference between revenue and expenditures. Revenue shall be the amount of money or money's worth, including any cash rent or its equivalent, that the property can be expected to yield to an owner- operator annually on the average from any use of the property permitted under the terms by which the property is enforceably restricted. Expenditures shall be any outlay or average annual allocation of money or money's worth that can be fairly charged Page 369 30 against the revenue expected to be received during the period used in computing the revenue. Those expenditures to be charged against revenue shall be only those which are ordinary and necessary in the production and maintenance of the revenue for that period. Expenditures shall not include depletion charges, debt retirement, interest on funds invested in the property, property taxes, corporation income taxes, or corporation franchise taxes based on income. (b) The capitalization rate to be used in valuing owner-occupied single family dwellings pursuant to this article shall not be derived from sales data and shall be the sum of the following components: (1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent. (2) A historical property risk component of 4 percent. (3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio. (4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life. (c) The capitalization rate to be used in valuing all other restricted historical property pursuant to this article shall not be derived from sales data and shall be the sum of the following components: (1) An interest component to be determined by the board and announced no later than September 1 of the year preceding the assessment year and that was the yield rate equal to the effective rate on conventional mortgages as determined by the Federal Housing Finance Board, rounded to the nearest 1/4 percent. (2) A historical property risk component of 2 percent. (3) A component for property taxes that shall be a percentage equal to the estimated total tax rate applicable to the property for the assessment year times the assessment ratio. (4) A component for amortization of the improvements that shall be a percentage equivalent to the reciprocal of the remaining life. (d) Unless a party to an instrument that creates an enforceable restriction expressly prohibits the valuation, the valuation resulting from the capitalization of income method described in this section shall not exceed the lesser of either the valuation that would have resulted by calculation under Section 110, or the valuation that would have resulted by calculation under Section 110.1, as though the property was not subject to an enforceable restriction in the base year. (e) The value of the restricted historical property shall be the quotient of the inco me determined as provided in subdivision (a) divided by the capitalization rate determined as provided in subdivision (b) or (c). (f) The ratio prescribed in Section 401 shall be applied to the value of the property determined in subdivision (d) to obtain its assessed value. 439.3. Historical Property; notice of nonrenewal. Notwithstanding any provision of Section 439.2 to the contrary, if either the county or city or the owner of restricted historical property subject to contract has served notice of Page 370 31 nonrenewal as provided in Section 50282 of the Government Code, the county assessor shall value that restricted historical property as provided in this section. (a) Following the hearing conducted pursuant to Section 50285 of the Government Code, subdivision (b) shall apply until the termination of the period for which the restricted historical property is enforceably restricted. (b) The board or assessor in each year until the termination of the period for which the property is enforceably restricted shall do all of the following: (1) Determine the full cash value of the property pursuant to Section 110.1. If the property is not subject to Section 110.1 when the restriction expires, the value shall be determined pursuant to Section 110 as if the property were free of contractual restriction. If the property will be subject to a use for which this chapter provides a special restricted assessment, the value of the property shall be determined as if it were subject to the new restriction. (2) Determine the value of the property by the capitalization of income method as provided in Section 439.2 and without regard to the fact that a notice of nonrenewal or cancellation has occurred. (3) Subtract the value determined in paragraph (2) of this subdivision by capitalization of income from the full cash value determined in paragraph (1). (4) Using the rate announced by the board pursuant to paragraph (1) of subdivision (b) of Section 439.2, discount the amount obtained in paragraph (3) for the number of years remaining until the termination of the period for which the property is enforceably restricted. (5) Determine the value of the property by adding the value determined by the capitalization of income method as provided in paragraph (2) and the value obtained in paragraph (4). (6) Apply the ratios prescribed in Section 401 to the value of the property determined in paragraph (5) to obtain its assessed value. 439.4. Historical Property; recordation. No property shall be valued pursuant to this article unless an enforceable restriction meeting the requirements of Section 439 is signed, accepted and recorded on or before the lien date for the fiscal year in which the valuation would apply. Page 371 [This page has intentionally been left blank.] Page 372 From:Jessica Gonzales To:Niamh M. Ortega Cc:Kevin Collins Subject:FW: Letter of Resignation from the Housing Commission Date:Thursday, January 27, 2022 7:56:48 AM Good Morning Niamh, Housing Commissioner Ault has submitted her resignation. Thank you. Jessica Gonzales Senior Management Analyst Ph: 760.346.0611 Direct: 760.776.6410 jgonzales@cityofpalmdesert.org From: Donna Ault <DonnaAult@msn.com> Sent: Tuesday, January 25, 2022 2:31 PM To: Jessica Gonzales <jgonzales@cityofpalmdesert.org> Cc: Jann Buller <jannb774@gmail.com>; Kevin Collins <kcollins@cityofpalmdesert.org> Subject: Letter of Resignation from the Housing Commission Dear Jessica, Jann,It is with deep regret that I must rescind my responsibilities as Housing Commissioner,as I am no longer a resident of Palm Desert. Currently, I am residing with family in LasVegas, helping them move to Seattle WA where I will most likely reside. I am very appreciative of the City of Palm Desert, my fellow commissioners and ALL whoI have had the privilege to meet through this body. Please give them all my fondestregards. Heartfully,Donna Ault Page 373 [This page has intentionally been left blank.] Page 374 Page 375 ORDINANCE NO. 1375 2 B. The Planning and Zoning Law authorizes cities to establish by ordinance the regulations for land use and development. SECTION 2. Amendment. The City Council of the City of Palm Desert, California, approve, and adopt the PDMC amendment to Section 25.60.60 (Public Hearing and Public Notice), adding Section 25.60.160 “Community Engagement,” and adding Section 5.11 (Disclosures Upon Transfer of Residential Property), as shown in Exhibit A, which is attached hereto and incorporated herewith. SECTION 3. Severability. If any section, subsection, subdivision, paragraph, sentence, clause, or phrase in this ordinance or any part thereof is for any reason held to be unconstitutional or invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase thereof irrespective of the fact that one (1) or more subsections, subdivisions, paragraphs, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 4. Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in The Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and in effect thirty (30) days after its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 10th day of February 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: JAN C. HARNIK, MAYOR ATTEST: CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 376 ORDINANCE NO. 1375 EXHIBIT A Zoning Ordinance Amendments 1. Amend Section 25.60.060 (Public Hearing and Public Notice) Title 25 (Zoning) as follows (red indicates changes/additions): B. Notice of hearing. Pursuant to California Government Code Sections 65090 to 65094, not less than 10 days before the scheduled date of a hearing, public notice shall be given of such hearing in the manner listed below. The notice shall state the date, time, and place of hearing, identify the hearing body, and provide a general description of the matter to be considered and the real property which is the subject of the hearing. 1. Notice of public hearing shall be published in at least one newspaper of general circulation in the City. 2. Except as otherwise provided herein, notice of the public hearing shall be mailed, postage prepaid, to the owners of property within a radius of 300 feet of the exterior boundaries of the property involved in the application, using for this purpose the last known name and address of such owners as shown upon the current tax assessor’s records. The radius may be increased as determined to be necessary and desirable by the Director based on the nature of the proposed project. If the number of owners exceeds 1,000, the City may, in lieu of mailed notice, provide notice by placing notice of at least one-eighth (1/8) page in one newspaper of general circulation within the City. a. Public notification for projects 5 acres or more projects shall be 1,000 feet for public notifications related to development projects and to ensure adequate community engagement efforts are achieved pursuant to requirements in Section 25.60.160. 2. Add Section 25.60.160 (Community Engagement) to Title 25 (Zoning) as follows: 25.60.160 Community Engagement Intent and purpose. It is the intent of this chapter to relate the provisions of this title and all other applicable projects to the appropriate City provisions that have been adopted to comply with the Community Engagement Plan’s intended purpose of requiring developers to present and engage in a public outreach meeting early in the entitlement process of new projects and address concerns of the public prior to an action of the approving body. Scope of regulations. This chapter shall be applied pursuant to the adopted “Resolution of the City Council of the City of Palm Desert Establishing Policies related to Community Engagement (Resolution No. 2021-50). Requirements related to Community Engagement for new projects are as follow: a) Developers to prepare and submit a Community Engagement Plan to the Planning/Land Development Division at the time of entitlement application. b) Meet the public notification requirements of Section 25.60.060. c) The Community Engagement Plan must contain the following: Page 377 ORDINANCE NO. 1375 1. Developer’s method (s) of communication with the public. Proposed location (s) of public outreach shall be provided; 2. Submit written publications distributed to the public that includes any informational items of the project; 3. A minimum of one (1) meeting with the public is required, follow up meetings may be required as requested by the Director of Development Services; 4. Developer shall provide written responses to staff on how each public concern will be addressed; d) The developer to coordinate with staff for the notification of community meetings with property owners within 1,000 feet of the proposed project. e) Staff is to be present at the meeting(s) as observers and summarize concerns and developer’s responses in the final staff report (s). f) The entitlements will include a condition of approval on residential and/or owner- occupied projects, the developer will disclose, as part of any closing documents, the City’s General Plan and Housing Elements adjacent to the project. 3. Add Section 5.11 “Disclosures Upon Transfer of Residential Property” to Title 5 (BUSINESS TAXES, LICENSES AND REGULATIONS) subsequently as follows: 5.11.010 Statement Required. A. Pursuant to Civil Code section 1102.6a, in addition to those disclosures required by Civil Code section 1102.6, the seller of any single-family residential property located within the City shall deliver to the prospective buyer a real estate transfer disclosure statement containing the following statement: “Know Your Neighborhood: The City of Palm Desert maintains a website that provides important information on potential development throughout the City. The City recommends that you visit the website as part of your consideration in buying a home in the City. The website can be accessed at https://www.cityofpalmdesert.org/departments/planning. Alternatively, you can call the City’s Development Services Department at (760) 346-0611, ext. 483.” B. The real estate transfer disclosure statement required by this chapter shall be delivered at the same time as those disclosures required by Civil Code section 1102.6 or as soon as practicable thereafter. C. For purposes of this section, 1. “City” means the City of Palm Desert, California. 2. “Single-family residential property” means either of the following: (a) real property improved with one to four dwelling units, including any leasehold exceeding one year's duration of such, (b) a unit in a residential stock cooperative, condominium, or planned unit development, or (c) a mobile home or manufactured home when offered for sale or sold through a real estate broker pursuant to Business and Professions Code section 10131.6. 3. “Seller” means a transferor in a real property transaction, and includes an owner who lists real property with a licensee, whether or not a transfer results, or who Page 378 ORDINANCE NO. 1375 receives an offer to purchase real property of which he or she is the owner from a licensee on behalf of another. “Seller” includes both a vendor and lessor of real property. 4. “Buyer” means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through a licensee, whether or not a transfer results, or who seeks the services of a licensee in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer” includes a purchaser, vendee, or lessee of real property 5.11.020 Form of Statement. The real estate transfer disclosure statement required by this chapter shall be in the following form in accordance with Civil Code section 1102.6a: LOCAL OPTION REAL ESTATE TRANSFER DISCLOSURE STATEMENT THIS DISCLOSURE STATEMENT CONCERNS THE REAL PROPERTY SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS _________________________________________. THIS STATEMENT IS A DISCLOSURE OF THE CONDITION OF THE ABOVE-DESCRIBED PROPERTY IN COMPLIANCE WITH ORDINANCE NO. _________ OF THE PALM DESERT CITY CODE AS OF ___________, 20___. IT IS NOT A WARRANTY OF ANY KIND BY THE SELLER(S) OR REAL ESTATE LICENSEE(S) REPRESENTING ANY PRINCIPAL(S) IN THIS TRANSACTION, AND IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THE PRINCIPAL(S) MAY WISH TO OBTAIN. I SELLER’S INFORMATION The Seller discloses the following information with the knowledge that even though this is not a warranty, prospective Buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any real estate licensee(s) representing any principal(s) in this transaction to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. THE FOLLOWING ARE REPRESENTATIONS MADE BY THE SELLER(S) AS REQUIRED BY THE CITY OF PALM DESERT, AND ARE NOT THE REPRESENTATIONS OF THE REAL ESTATE LICENSEE(S), IF ANY. THIS INFORMATION IS A DISCLOSURE AND IS NOT INTENDED TO BE PART OF ANY CONTRACT BETWEEN THE BUYER AND SELLER. 1. Know Your Neighborhood: The City of Palm Desert maintains a website that provides important information on potential development throughout the City. The City recommends that you visit the website as part of your consideration in buying a home in the City. The website can be accessed at https://www.cityofpalmdesert.org/departments/planning. Alternatively, you can call the City’s Development Services Department at (760) 346-0611, ext. 483. Page 379 ORDINANCE NO. 1375 Seller certifies that the information herein is true and correct to the best of the Seller's knowledge as of the date signed by the Seller. Seller ___________________________ Date ___________________________ Seller ___________________________ Date ___________________________ II BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE AND/OR INSPECTIONS OF THE PROPERTY AND TO PROVIDE FOR APPROPRIATE PROVISIONS IN A CONTRACT BETWEEN BUYER AND SELLER(S) WITH RESPECT TO ANY ADVICE/INSPECTIONS/DEFECTS. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS STATEMENT. Buyer __________________ Date ___________________________ Buyer __________________ Date ___________________________ A REAL ESTATE BROKER IS QUALIFIED TO ADVISE ON REAL ESTATE. IF YOU DESIRE LEGAL ADVICE, CONSULT YOUR ATTORNEY.” Page 380 STAFF REPORT CITY OF PALM DESERT DEVELOPMENT SERVICES DEPARTMENT DATE: PREPARED BY: REQUEST: February 10, 2022 Eric Ceja, Deputy Director of Development Services Shawn Muir, Management Analyst Request for direction for a future Request for Proposals (RFP) for design work related to North Sphere Regional Park (NSRP) Recommendation By Minute Motion, provide City staff: 1.Confirmation of contents for a future RFP for design work related to the NSRP and authorize the Parks and Recreations Commission to work with the selected design firm on the final park design. Strategic Plan •Parks & Recreation – Priority 1: “Prepare for the financial requirements of maintaining existing parks to the highest level of service. Planning efforts shall also address future costs of replacement and growth of the parks capital improvement fund.” •Parks & Recreation – Priority 2: “Assure a continuing flow of innovative ideas by seeking creative partnerships, ensuring adequate staffing, and encouraging resident input.” •Transportation – Priority 1: “Create walkable neighborhoods and areas within Palm Desert that would include residential; retail; services and employment centers; and parks, recreation and open space to reduce the use of low occupancy vehicles.” Background Analysis The NSRP is included in the Millennium Park Plan to provide residents of the development with outdoor recreational opportunities. The need for a regional park in this area is also designated by the City of Palm Desert General Plan. Request for Proposals Staff is preparing an RFP in which a specific scope of services will be developed when soliciting public engagement and planning design firms with similar experience. The Page 381 February 10, 2022 – Staff Report RFP for North Sphere Park Page 2 of 3 envisioned scope of services will require proposers to address the following: •Develop and execute a public engagement plan to understand the community needs for the facility. •Provide a report to the City summarizing public engagement methods, events, and outcomes. This report will establish a list of amenities that are needed at the Park based on analysis of public engagement data. •Provide a design that meets the established community needs, and is welcoming, inviting, and enjoyable for a variety of users. •Develop a water use, electrical, landscape and maintenance plan for park facilities included in the design. •Implement requirements of Millennium Specific Plan and environmental review documents •Provide additional concepts and design principles based on experience. •Final design will be submitted to the City at the completion of the project. Parks Commission and Public Outreach Staff suggests that, once a design firm is awarded a contract, the City Council authorize the Parks and Recreation Commission to work through design consideration and to assist in public outreach efforts. Staff believes utilizing the Parks and Recreation Commission through this process ensures adequate public participation from stakeholders in the community that are familiar with the City’s needs for park amenities. Additional public meetings to vet the design will also be scheduled with the public at large to solicit feedback before finalizing design options. Proposed Schedule With the confirmation of the above items, staff will prepare and release the RFP towards the end of March. Proposers would then have the month of April to prepare and submit their proposals for review. Staff will review all proposals and bring back an award of contract to the City Council in May. Once awarded, the selected firm will work on design options with the assigned staff and the Parks and Recreation Commission. Staff anticipates this process will take approximately four to six months, inclusive of public meetings and presentations to various community stakeholders. Once the Commission is confident with a final design, staff will prepare a report and bring the design to City Council for final consideration. It is anticipated that this will happen sometime in Winter 2022/2023. Fiscal Analysis There is currently $1,000,000 in the FY 21-22 Budget allocated to this project. An additional $500,000 has been earmarked in available bond proceeds and will be requested as part of the Budget process for FY 22-23, providing $1.5M available for the design and construction Page 382 February 10, 2022 – Staff Report RFP for North Sphere Park Page 3 of 3 of the park. Additional funding sources are likely needed for full construction of the park and staff will pursue grants and other funding sources that may be available. Selection and award of contract will be reviewed at a later meeting in which monies will be appropriated for the design. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Director of Development Services Janet M. Moore Janet Moore Director of Finance Andy Firestine Andy Firestine Assistant City Manager City Manager L. Todd Hileman: L. Todd Hileman Page 383 Page 384 STAFF REPORT CITY OF PALM DESERT BUILDING AND SAFETY DIVISION MEETING DATE: February 10, 2022 PREPARED BY: Jason Finley, Chief Building Official REQUEST: Approve Resolution No. 2022-___ approving a Historic District Designation for Sandpiper Condominiums Circle 2 Located on El Paseo ________________________________________________________________ Recommendation Waive further reading and adopt Resolution No. 2022-___, reaffirming the action of the Cultural Resources Preservation Committee, designating the Sandpiper Condominiums Circle 2, located on El Paseo, with a Historic District designation in accordance with Section 29.50.010 of the Palm Desert Municipal Code (PDMC). Strategic Plan The Archaeological and Cultural Resources Element is directly related to the Land Use, Open Space and Conservation and Arts and Culture Elements of the General Plan and may also influence the policies and programs outlines in the Community Design Element. The issues addressed in the Archaeological and Cultural Resources Element are part of those under California Government Code Section 65560(b) and Public Resources Code Section 5076. Furthermore, Section 21083.2(g) of the California Environmental Quality Act (CEQA) empowers the community to require adequate research, documentation, and preservation when the potential for significant cultural resources exists. Committee Recommendation On November 30, 2021, the Cultural Resources Preservation Committee at its regular scheduled meeting conducted a public hearing as required per PDMC 29.40.070 and unanimously recommended nominating the Sandpiper Condominiums Circle 2 located on El Paseo, with Historic District designation. Background On June 6, 2021, the board of directors of the “Palm Springs Garden Apartments #2 (HOA), referred to as Sandpiper 2, voted unanimously to pursue historic district designation of Circle 2. Sandpiper Condominiums Circles 2, completed in 1959 by the Los Angeles based architectural firm of Palmer & Krisel, exhibit numerous stylistic markers that place them directly in the historic context of Palm Desert’s Modern Period. Furthermore, Circle 2 is Page 385 February 10, 2022 - Staff Report Sandpiper Condominiums Circle 2 Page 2 of 3 an excellent example of multi-family residential development in Palm Desert. The 24 units and eight (8) buildings that comprise Circle 2 reflect a coherent vision of modernist architecture rarely found anywhere else in the United States. The siting of the buildings in Circle 2, and the landscape architecture further reinforce a coherent modernist architectural vision that successfully created a leisure lifestyle of “carefree desert living.” These properties are eligible for designation as a City Historic District in accordance with Section 29.50.010 Historic District Designation Criteria: • Exemplifies or reflects special elements of cultural, social, economic, political, aesthetic, engineering, architectural, or natural history; or • Is identified with persons or events significant in history; or • Embodies distinctive characteristics of a style, type, period, or method of construction, or is a valuable example of the use of indigenous materials or craftsmanship; or • Represents the work of master builders, designers, or architects; or • Reflects distinctive examples of community planning or significant development patterns, including those associated with different eras of settlement and growth, agricultural, or transportation; or • Conveys a sense of historic and architectural cohesiveness through its design, setting, materials, workmanship, or associations; or • Is an archaeological, paleontological, botanical, geological, topographical, ecological, or geographical resource that has yielded or has the potential to yield important information in history or pre-history. (Ord. 1168, 2008) The Cultural Resources Preservation Committee reviewed and unanimously approved the historic designation application and criteria during a public hearing conducted November 30, 2021, affirming that it is eligible. A historic designated area does interfere or restrict a property owner’s ability to enjoy their property (i.e., decorate, remodel, or alter). This designation allows property owners to voluntarily apply for the California Mills Act Program which provides tax incentives to maintain their property appearance in an original concept. Therefore, there is no requirement for property owners to participate. Page 386 February 10, 2022 - Staff Report Sandpiper Condominiums Circle 2 Page 3 of 3 Fiscal Analysis: There is no fiscal impact associated with this action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Director of Development Services N/A For Janet Moore Director of Finance N/A Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman APPLICANT: Cynthia Hope 76-6246 Alil Drive #365 Kailua-Kona, Hawaii, 96740 ATTACHMENTS: 1. Historic Designation Application 2. CRPC Agenda Minutes for November 30,2021 3. Resolution No. 2022- __ Page 387 Page 388 Page 389 Page 390 Page 391 Page 392 Page 393 Page 394 Page 395 Page 396 Page 397 Page 398 Page 399 Page 400 Page 401 Page 402 Page 403 Page 404 Page 405 Page 406 Page 407 Page 408 Page 409 Page 410 Page 411 Page 412 Page 413 Page 414 Page 415 Page 416 Page 417 Page 418 Page 419 Page 420 Page 421 Page 422 Page 423 Page 424 Page 425 Page 426 Page 427 Page 428 Page 429 Page 430 Page 431 Page 432 Page 433 Page 434 CITY OF PALM DESERT CULTURAL RESOURCES PRESERVATION COMMITTEE DRAFT Preliminary Minutes November 30, 2021 – 9:00 a.m. (Virtual Meeting) I. CALL TO ORDER Chair Paul Clark called the meeting to order at 9:09 a.m. II. ROLL CALL Current Meeting Year to Date Commissioners Present Absent Present Absent Yvonne Bell X 2 0 Paul Clark X 2 0 Don Graybill X 1 1 Kim Housken X 2 0 Rochelle McCune X 1 1 Thomas Mortensen X 2 0 David Toltzmann X 2 0 Also Present: Karina Quintanilla, City Council Member Liaison Jason Finley, Supervising Plans Examiner Latisha Booker, Recording Secretary III. ORAL COMMUNICATIONS - None TWO OPTIONS FOR PARTICIPATING IN THE MEETING Option 1 – To Participate and Provide Verbal Comments by Using Your Internet: 1. Click the link: https://palmdesert.zoom.us 2. Meeting ID: 874 0882 4486 Option 2 – To Listen and Provide Verbal Comments Using Your Telephone 1. Dial (for higher quality, dial a number based on your current location): Telephone US: +1 669 219 2599 or +1 669 900 9128 or +1 213 338 8477 or +1 602 753 0140 or +1 971 247 1195 or +1 253 215 8782 2. Enter the Webinar ID: 847 3970 7419 3. Indicate that you are a participant by pressing # to continue. 4. You will hear audio of the meeting in progress. Remain on the line if the meeting has not yet started. Page 435 AGENDA CULTURAL RESOURCES PRESERVATION COMMITEE NOVEMBER 30, 2021 _____________________________________________________________________ IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF AUGUST 31, 2021 Rec: Approved as presented. B. Approve Mills Act Application Rec: Approved as presented. V. CONSENT ITEMS HELD OVER None VI. NEW BUSINESS None VII. CONTINUED BUSINESS PUBLIC HEARING – SANDPIPER CIRCLE #2, PALM DESERT, CA, CASE CRPC 21-01. CONSIDER LOCAL HISTORIC LANDMARK DESIGNATION FOR THE PROPERTIES LOCATED WITHIN SANDPIPER CIRCLE #2: 211 - 213, 221 - 223, 231 - 233, 241- 243, 251- 253, 261- 263, 271- 273, 281 - 283, CIRCLE #2 COMMON AREA AS A LOCAL HISTORIC LANDMARK DESIGNATION FOR CITY COUNCIL APPROVAL. 1) Authorize staff to prepare a resolution approving local historic landmark designation for property located within Sandpiper Circle #2 for City Council consideration. Committee Chair Paul Clark declared the public hearing open and invited public testimony, and at the conclusion he declared the public hearing closed. Chair Paul Clark asked staff if there is anything that we would like to add. Administrator Jason Finley stated that the applicant made the corrections that was noted in the workshop. Motion was made by Committee Member Don Graybill to authorize staff to prepare a resolution approving, local historic landmark designation for property located within Sandpiper Circle #2 for City Council consideration. Committee Member Kim Housken seconded the motion. Motion carried by 6-0 vote (AYES: Clark, Housken, Bell, Mortensen, Graybill and Toltzmann; NOES: No; ABSENT: Rochelle McCune) VIII. OLD BUSINESS - None Page 436 AGENDA CULTURAL RESOURCES PRESERVATION COMMITEE NOVEMBER 30, 2021 _____________________________________________________________________ IX. REPORTS AND REMARKS Committee Chair Paul Clark asked Administrator Jason Finley when will the committee be able to meet in person. Jason states possibly after the new year and hybrid could be an option. Council Member Karina Quintanilla thanked Jason and Latisha for bringing her on board, she added that she is very excited to learn about the Committee and look forward to the field trip of the historic designations. Administrator Jason Finley added that Sunday, December 5, 2021, the Indian Wells Preservation Committee is having a talk on the Indian Wells and the Native American influence it had dating back to the 1800’s. Committee Member Kim Housken mentioned that the Coachella Valley Preservation meeting is tomorrow December 1, 2021, and it will also be in person at the Henderson Center here in Palm Desert at noon if anyone is interested. X. ADJOURNMENT With Cultural Resources Preservation Committee concurrence, Chair Paul Clark adjourned the meeting at 9:38 a.m. ___________________________________ Latisha Booker, Recording Secretary Page 437 RESOLUTION NO. 2022-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA APPROVING A HISTORIC DISTRICT DESIGNATION FOR SANDPIPER CONDOMINIUMS CIRCLE 2 LOCATED ON EL PASEO WHEREAS, on November 30, 2021, the Cultural Resource Preservation Committee conducted a public hearing to consider initiation of Historic District Designation for Sandpiper Condominiums Circle 2 located on El Paseo, Assessor’s Parcel No’s. 640- 250-020, 640-250-019, 640-250-021, 640-250-024, 640-250-022, 640-250-023, 640-500- 018, 640-250-016, 640-250-017, 640-250-012, 640-250-011, 640-250-010, 640-250-004, 640-250-005, 640-250-006, 640-250-001, 640-250-003, 640-250-002, 640-250-008, 640- 250-009, 640-250-007, 640-250-013, 640-250-015, 640-250-014, 640-250-025, as a historic district pursuant to Section 29.50 of the Palm Desert Municipal Code (PDMC); and WHEREAS, the Cultural Resources Preservation Committee has considered all of the evidence submitted into the administrative record which includes, but not limited to: 1. Agenda reports were prepared by the Building and Safety Division. 2. Staff provided a presentation at a workshop held on September 28, 2021, before the Cultural Resources Preservation Committee. 3. Staff presentation at a meeting and subsequent public hearing held on August 31, 2021, before the Cultural Resources Preservation Committee. 4. The City of Palm Desert, Cultural Resources Ordinance No. 1168, and all other applicable regulations and codes. 5. Public comments, both written and oral, received and/or submitted at or prior to the meeting, supporting and/or opposing the applicant’s request. 6. Testimony and/or comments from the applicant and its representatives submitted to the City in both written and oral form at or prior to the meeting. 7. All related documents received and/or submitted at or prior to the meeting. WHEREAS, based on the forgoing evidence, the Cultural Resources Preservation Committee finds that: 1. A request for Historic District Designation for the Sandpiper Condominiums Circle 2 located on El Paseo was made on June 4, 2021, to designate the Sandpiper Condominiums Circle 2 a Historic District. 2. Notice of the August 31, 2021, Cultural Resources Preservation Committee meeting was posted in The Desert Sun and at City Hall. 3. Notice of the August 31, 2021, Cultural Resources Preservation Committee was provided to the affected property owner as shown on the latest Riverside County assessment role. The owner was notified by first-class mail. 4. Notice of the Cultural Resources Preservation Committee meeting included the notice requirements set forth in California Environmental Quality Act (CEQA). Page 438 RESOLUTION NO. 2022-___ Page 2 of 3 WHEREAS, based on the Cultural Resources Ordinance 1168, the Cultural Resources Preservation Committee concludes the following: 1. Palm Deserts’ character and history are reflected in its cultural, historical, and architectural heritage. 2. Palm Deserts’ historical foundations should be preserved as living parts of the community life and development in order to foster an understanding of the City’s past so that future generations may have a genuine opportunity to appreciate, enjoy, and understand Palm Deserts’ heritage. 3. The Cultural Resources Preservation Committee has reviewed this site and determined it to be historically significant and could contribute to the economic and cultural revival of the City. WHEREAS, in view of all the evidence and based on the forgoing designation criterion, the Cultural Resources Preservation Committee concluded the following: Sandpiper Condominiums Circle 2, completed in 1958 through 1959 by the Los Angeles- based architectural firm of Palmer & Krisel, exhibit numerous stylistic markers that place them directly in the historic context of Palm desert’s Modern Period. Furthermore, Circle 2 is an excellent example of a multi-family residential development in Palm Desert. The 24 units and eight (8) buildings that comprise Circle 2 reflect a coherent vision of modernist architecture rarely found anywhere else in the United States. The siting of the buildings in Circle 2, and the landscape architecture further reinforce a coherent modernist architectural vision that successfully created a leisure lifestyle of “carefree desert living.” The site planning at Sandpiper is a pin-wheel configuration around a central hub (in this case the pool) and its greenbelt concept draws from 19th century British planner Ebenezer Howard’s Garden City. Howard’s concept envisioned a world where the best of city and rural life is combined to create a utopian environment. He espoused the need for green belts, in an effort to reduce congestion and to create a healthy environment in which to live. Palmer & Krisel expand Howard’s tenet by creating an environment free from cars, a popular symbol of urban distress. Their site planning re-examines not only urban but suburban living. Palmer & Krisel deftly sited all vehicular roads and carports on the perimeter of each circle. Their buildings turn their “fronts” away from the street. The “front porch” no longer faces the street but is moved to look onto the green belt. In this, the pool becomes the “new streetscape”: the new social gathering place for the complex. Palm Desert, along with neighboring Palm Springs and Rancho Mirage, are internationally known as a center of midcentury architecture. Therefore, the buildings and site that constitute Sandpiper Condominiums Circle 2 represent an excellent intact example of American Modernist architecture. This midcentury architecture may therefore be viewed as an important component of the historic trend that has come to Page 439 RESOLUTION NO. 2022-___ Page 3 of 3 define the Coachella Valley and one that exemplifies a particular period of the nation, state, or local history. The Sandpiper Condominiums Circle 2 located on El Paseo, meets the following designation criterion as contained in the City’s Cultural Resources Ordinance, and is hereby worthy of preservation and designation as a Local Historic District. A. Exemplifies or reflects special elements of cultural, social, economic, political, aesthetic, engineering, architectural, or natural history. B. Reflects distinctive examples of community planning or significant development patterns, including those associated with different eras of settlement and growth, agricultural, or transportation. NOW THEREFORE, BE IT RESOLVED THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY DESIGNATE SANDPIPER CONDOMINIUMS CIRCLE 2, LOCATED ON EL PASEO, AS A LOCAL HISTORIC DISTRICT PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California at its regular meeting held this 10th day of February 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: _________________________ JAN HARNIK, MAYOR ATTEST: NIAMH ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 440 STAFF REPORT CITY OF PALM DESERT BUILDING AND SAFETY DIVISION MEETING DATE: February 10, 2022 PREPARED BY: Jason Finley, Chief Building Official REQUEST: Approve Resolution No. 2022-08 approving a Historic District Designation for Sandpiper Condominiums Circle 3 Located on El Paseo ________________________________________________________________ Recommendation Waive further reading and adopt Resolution No. 2022-08, reaffirming the action of the Cultural Resources Preservation Committee, designating the Sandpiper Condominiums Circle 3, located on El Paseo, with a Historic District designation in accordance with Section 29.50.010 of the Palm Desert Municipal Code (PDMC). Strategic Plan The Archaeological and Cultural Resources Element is directly related to the Land Use, Open Space and Conservation and Arts and Culture Elements of the General Plan and may also influence the policies and programs outlines in the Community Design Element. The issues addressed in the Archaeological and Cultural Resources Element are part of those under California Government Code Section 65560(b) and Public Resources Code Section 5076. Furthermore, Section 21083.2(g) of the California Environmental Quality Act (CEQA) empowers the community to require adequate research, documentation, and preservation when the potential for significant cultural resources exists. Committee Recommendation On August 31, 2021, the Cultural Resources Preservation Committee at its regular scheduled meeting conducted a public hearing as required per PDMC 29.40.070 and unanimously recommended nominating the Sandpiper Condominiums Circle 3 located on El Paseo, with Historic District designation. Page 441 February 10, 2022 - Staff Report Sandpiper Condominiums Circle 3 Page 2 of 2 Background On February 20, 2020, the board of directors of the “Sandpiper 3 on El Paseo (HOA)”, which represents Sandpiper Condominiums Circle 3, voted unanimously to pursue historic district designation of Circle 3. Sandpiper Condominiums Circles 3, completed in 1959 by the Los Angeles based architectural firm of Palmer & Krisel, exhibit numerous stylistic markers that place them directly in the historic context of Palm Desert’s Modern Period. Furthermore, Circle 3 is an excellent example of multi-family residential development in Palm Desert. The 24 units and eight (8) buildings that comprise Circle 3 reflect a coherent vision of modernist architecture rarely found anywhere else in the United States. The siting of the buildings in Circle 3, and the landscape architecture further reinforce a coherent modernist architectural vision that successfully created a leisure lifestyle of “carefree desert living.” These properties are eligible for designation as a City Historic District in accordance with Section 29.50.010 Historic District Designation Criteria: • Exemplifies or reflects special elements of cultural, social, economic, political, aesthetic, engineering, architectural, or natural history; or • Is identified with persons or events significant in history; or • Embodies distinctive characteristics of a style, type, period, or method of construction, or is a valuable example of the use of indigenous materials or craftsmanship; or • Represents the work of master builders, designers, or architects; or • Reflects distinctive examples of community planning or significant development patterns, including those associated with different eras of settlement and growth, agricultural, or transportation; or • Conveys a sense of historic and architectural cohesiveness through its design, setting, materials, workmanship, or associations; or • Is an archaeological, paleontological, botanical, geological, topographical, ecological, or geographical resource that has yielded or has the potential to yield important information in history or pre-history. (Ord. 1168, 2008) Page 442 The Cultural Resources Preservation Committee reviewed and unanimously approved the historic designation application and criteria during a public hearing conducted August 31, 2021, affirming that it is eligible. A historic designated area does interfere or restrict a property owner’s ability to enjoy their property (i.e., decorate, remodel, or alter). This designation allows property owners to voluntarily apply for the California Mills Act Program which provides tax incentives to maintain their property appearance in an original concept. Therefore, there is no requirement for property owners to participate. Fiscal Analysis: There is no fiscal impact associated with this action. LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER N/A Robert W. Hargreaves City Attorney Martin Alvarez Martin Alvarez, Director of Development Services N/A For Janet Moore Director of Finance N/A Andy Firestine Assistant City Manager City Manager: L. Todd Hileman: L. Todd Hileman APPLICANT: Paul Preston 352 Sandpiper Street Palm Desert, California, 92260 ATTACHMENTS: 1. Historic Designation Application 2. CRPC Agenda Minutes for August 31,2021 3. Resolution No. 2022-08 Page 443 Page 444 Page 445 Page 446 Page 447 Page 448 Page 449 Page 450 Page 451 Page 452 Page 453 Page 454 Page 455 Page 456 Page 457 Page 458 Page 459 Page 460 Page 461 Page 462 Page 463 Page 464 Page 465 Page 466 Page 467 Page 468 Page 469 Page 470 Page 471 Page 472 Page 473 Page 474 Page 475 Page 476 CITY OF PALM DESERT CULTURAL RESOURCES PRESERVATION COMMITTEE Minutes August 31, 2021 – 9:00 a.m. (Virtual Meeting) I. CALL TO ORDER Jason Finley, Administrator called the meeting of the Cultural Resources Preservation Committee to order at 9:02 a.m. II. ROLL CALL Current Meeting Year to Date Commissioners Present Absent Present Absent Yvonne Bell X 1 0 Paul Clark X 1 0 Don Graybill X 0 1 Kim Housken X 1 0 Rochelle McCune X 1 0 Thomas Mortensen X 1 0 David Toltzmann X 1 0 Also Present: Jason Finley, Supervising Plans Examiner Latisha Booker, Recording Secretary III. ORAL COMMUNICATIONS - None IV. CONSENT CALENDAR A. MINUTES OF THE MEETING OF OCTOBER 29, 2019 Motion: was made by Committee Member Kim Housken to accept the Minutes as presented. Motion was seconded by Committee Member Thomas Mortensen. Committee Member Kim Housken would like to point out that although our last official meeting was October 29, 2019, that we’ve had a workshop in February 2020. Motion approved by a vote of 6-0 (AYES: Housken, Bell, Clark, McCune, Mortensen and Toltzmann; NOES: None; ABSENT: Don Graybill) V. CONSENT ITEMS HELD OVER - None VI. NEW BUSINESS A. ELECTION OF COMMITTEE CHAIR AND VICE CHAIR FOR 2021 Motion was made by Committee Member Kim Housken to nominate Paul Clark for the 2021/2022 Committee Chair position. Committee Member Tom Mortensen second the Motion. Motion carried by a 6-0 vote (AYES: Housken, Bell, Clark, Mortensen, McCune and Toltzmann; NOES: None; ABSENT: Page 477 Graybill) Motion was made by Tom Mortensen to nominate David Toltzmann for the 2021/2022 Vice Chair position. Committee Member Kim Housken second the Motion. Motion carried by 6-0 vote (AYES: Housken, Bell, Clark, McCune, Mortensen and Toltzmann; NOES: None; ABSENT: Don 0Graybill) Committee Chair Paul Clark thanked Jason Finley and the City staff for carrying the Committee to where we are today. B. REVIEW AND APPROVE MILLS ACT APPLICATION Motion was made by Committee Member Rochelle McCune to discuss the application with the applicant at the next Workshop. Committee Member Kim Housken seconded the Motion. Motion carried by 6-0 vote (AYES: Housken, Bell, Clark, McCune, Mortensen and Toltzmann; NOES: None; ABSENT: Don Graybill) Committee Member Kim Housken would like to note a correction on the application. Contributor to a City Historic District should be checked instead of City Historic Landmark. VII. CONTINUED BUSINESS - None VIII. OLD BUSINESS - None AGENDA CULTURAL RESOURCES PRESERVATION COMMITEE AUGUST 31, 2021 _____________________________________________________________________ IX. PUBLIC HEARING – SANDPIPER CIRCLE #2, PALM DESERT, CA, CASE NO. CRPC 21-01. X. CONSIDER LOCAL HISTORIC LANDMARK DESIGNATION FOR THE PROPERTIES LOCATED WITHIN SANDPIPER CIRCLE #2: 211 - 213, 221 - 223, 231 - 233, 241- 243, 251- 253, 261- 263, 271- 273, 281 - 283, CIRCLE #2 COMMON AREA AS A LOCAL HISTORIC LANDMARK DESIGNATION FOR CITY COUNCIL APPROVAL. 1) Conduct public hearing to receive testimony regarding local historic landmark designation for property located within Sandpiper Circle #2. 2) Authorize staff to prepare a resolution approving local historic landmark designation for property located within Sandpiper Circle #2 for City Council consideration. Committee Chair Paul Clark declared the public hearing open and invited public testimony. Committee Chair Kim Housken added a few corrections on the application for Sandpiper Circle. #2. She stated that it mirrored Sandpiper Circle #3 but was missing a few key words. The Paul and Betty Popenoe home was in Page 478 Coachella and not in Palm Desert. Palm Desert is not located in the eastern part of the valley it is centrally located. Under the section “Period of Significance” paragraph five it should say Shadow Mountain Resort and not Mountain Shadow Resort. Also, the applicant was not present at the meeting. Motion was made by Committee Member Kim Housken to continue the consideration regarding local historic landmark of the property located within Sandpiper Circle #2. Committee Chair Paul Clark will leave the hearing open. Committee Member Yvonne Bell seconded the motion. Motion carried by 6-0 vote (AYES: Clark, Bell, Housken, Toltzmann, McCune and Mortensen; NOES: No; ABSENT: Don Graybell) XI. PUBLIC HEARING - SANDPIPER CIRCLE #3, PALM DESERT, CA, CASE NO. CRPC 21-02. XII. CONSIDER LOCAL HISTORIC LANDMARK DESIGNATION FOR THE PROPERTIES LOCATED WITHIN SANDPIPER CIRCLE #3: 311 - 313, 321- 323, 331 - 333, 341 - 343, 351 - 353, 361 - 363, 371 - 373, 381 - 383, CIRCLE #3 COMMON AREA AS A LOCAL HISTORIC LANDMARK DESIGNATION FOR CITY COUNCIL APPROVAL. 3) Conduct public hearing to receive testimony regarding local historic landmark designation for property located within Sandpiper Circle #3. 4) Authorize staff to prepare a resolution approving local historic landmark designation for property located within Sandpiper Circle #3 for City Council consideration. Committee Chair Paul Clark declared the public hearing open and invited public testimony, and at the conclusion of hearing all speakers, he declared the public hearing closed. Committee Member Kim Housken would like to add a correction on the application for Sandpiper Circle #3. The introduction on page four regarding Sandpiper Circle. 11 and 12, they were designated in 2013 not 2012 and Sandpiper Circle. 5 – 10 was designated in 2017 and not 2016. Motion was made by Committee Member Yvonne Bell to authorize staff to prepare a resolution approving local historic landmark district destination properties located within Sandpiper Circle. #3 for City Council consideration. Council Member Kim Housken seconded the motion. Motion carried by 6-0 vote (AYES: Clark, Housken, Bell, Mortensen, McCune and Toltzmann; NOES: No; ABSENT: Don Graybill) XIII. REPORTS AND REMARKS Committee Chair Tom Mortensen suggested that with new Committee Members that everyone should introduce themselves with a little background. Page 479 Committee Chair Paul Clark said that he drove by the Wave House and it looks good. They have nice landscaping that’s looking good XIII. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda for the Cultural Resources Preservation Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this August 31, 2021. ___________________________________ Latisha Booker, Recording Secretary Page 480 RESOLUTION NO. 2022-___ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA APPROVING A HISTORIC DISTRICT DESIGNATION FOR SANDPIPER CONDOMINIUMS CIRCLE 3 LOCATED ON EL PASEO WHEREAS, on August 31, 2021, the Cultural Resource Preservation Committee conducted a public hearing to consider initiation of Historic District Designation for Sandpiper Condominiums Circle 3 located on El Paseo, Assessor’s Parcel No’s. 640- 260-023, 640-260-022, 640-260-024, 640-260-018, 640-260-016, 640-260-017, 640-260- 012, 640-260-010, 640-260-011, 640-260-004, 640-260-005, 640-260-006, 640-260-002, 640-260-003, 640-260-001, 640-260-008, 640-260-009, 640-260-007, 640-260-013, 640- 260-015, 640-260-014, 640-260-021, 640-260-020, 640-260-019, 640-260-025, as a historic district pursuant to Section 29.50 of the Palm Desert Municipal Code (PDMC); and WHEREAS, the Cultural Resources Preservation Committee has considered all of the evidence submitted into the administrative record which includes, but not limited to: 1. Agenda reports were prepared by the Building and Safety Division. 2. Staff provided a presentation at a meeting and subsequent public hearing held on August 31, 2021, before the Cultural Resources Preservation Committee. 3. The City of Palm Desert, Cultural Resources Ordinance No. 1168, and all other applicable regulations and codes. 4. Public comments, both written and oral, received and/or submitted at or prior to the meeting, supporting and/or opposing the applicant’s request. 5. Testimony and/or comments from the applicant and its representatives submitted to the City in both written and oral form at or prior to the meeting. 6. All related documents received and/or submitted at or prior to the meeting. WHEREAS, based on the forgoing evidence, the Cultural Resources Preservation Committee finds that: 1. A request for Historic District Designation for the Sandpiper Condominiums Circle 3 located on El Paseo was made on February 15, 2021, to designate the Sandpiper Condominiums Circle 3 2. Notice of the August 31, 2021, Cultural Resources Preservation Committee meeting was posted in The Desert Sun and at City Hall. 3. Notice of the August 31, 2021, Cultural Resources Preservation Committee was provided to the affected property owner as shown on the latest Riverside County assessment role. The owner was notified by first-class mail. 4. Notice of the Cultural Resources Preservation Committee meeting included the notice requirements set forth in California Environmental Quality Act (CEQA). Page 481 RESOLUTION NO. 2022-__ Page 2 of 3 WHEREAS, based on the Cultural Resources Ordinance 1168, the Cultural Resources Preservation Committee concluded the following: 1. Palm Deserts’ character and history are reflected in its cultural, historical, and architectural heritage. 2. Palm Deserts’ historical foundations should be preserved as living parts of the community life and development in order to foster an understanding of the City’s past so that future generations may have a genuine opportunity to appreciate, enjoy, and understand Palm Deserts’ heritage. 3. The Cultural Resources Preservation Committee has reviewed this site and determined it to be historically significant and could contribute to the economic and cultural revival of the City. WHEREAS, in view of all the evidence and based on the forgoing designation criterion, the Cultural Resources Preservation Committee concluded the following Sandpiper Condominiums Circle 3, completed in 1958 through 1960 by the Los Angeles- based architectural firm of Palmer & Krisel, exhibit numerous stylistic markers that place them directly in the historic context of Palm desert’s Modern Period. Furthermore, Circle 3 is an excellent example of a multi-family residential development in Palm Desert. The 24 units and eight (8) buildings that comprise Circle 3 reflect a coherent vision of modernist architecture rarely found anywhere else in the United States. The siting of the buildings in Circle 3, and the landscape architecture further reinforce a coherent modernist architectural vision that successfully created a leisure lifestyle of “carefree desert living.” The site planning at Sandpiper is a pin-wheel configuration around a central hub (in this case the pool) and its greenbelt concept draws from 19th century British planner Ebenezer Howard’s Garden City. Howard’s concept envisioned a world where the best of city and rural life is combined to create a utopian environment. He espoused the need for green belts, in an effort to reduce congestion and to create a healthy environment in which to live. Palmer & Krisel expand Howard’s tenet by creating an environment free from cars, a popular symbol of urban distress. Their site planning re-examines not only urban but suburban living. Palmer & Krisel deftly sited all vehicular roads and carports on the perimeter of each circle. Their buildings turn their “fronts” away from the street. The “front porch” no longer faces the street but is moved to look onto the green belt. In this, the pool becomes the “new streetscape”: the new social gathering place for the complex. Palm Desert, along with neighboring Palm Springs and Rancho Mirage, are internationally known as a center of midcentury architecture. Therefore, the buildings and site that constitute Sandpiper Condominiums Circle 3 represent an excellent intact example of American Modernist architecture. This midcentury architecture may therefore be viewed as an important component of the historic trend that has come to Page 482 RESOLUTION NO. 2022-__ Page 3 of 3 define the Coachella Valley and one that exemplifies a particular period of the nation, state, or local history. The Sandpiper Condominiums Circle 3 located on El Paseo, meets the following designation criterion as contained in the City’s Cultural Resources Ordinance, and is hereby worthy of preservation and designation as a Local Historic District. A. Exemplifies or reflects special elements of cultural, social, economic, political, aesthetic, engineering, architectural, or natural history, B. Reflects distinctive examples of community planning or significant development patterns, including those associated with different eras of settlement and growth, agricultural, or transportation. NOW THEREFORE, BE IT RESOLVED THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY DESIGNATE SANDPIPER CONDOMINIUMS CIRCLE 3 LOCATED ON EL PASEO, AS A LOCAL HISTORIC DISTRICT. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Palm Desert, California at its regular meeting held this 27th day of January 2022, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: _________________________ JAN HARNIK, MAYOR ATTEST: NIAMH ORTEGA, DEPUTY CITY CLERK CITY OF PALM DESERT, CALIFORNIA Page 483