HomeMy WebLinkAboutAgenda Packet - 2023-08-24
PALM DESERT CITY COUNCIL
REGULAR MEETING POST-MEETING AGENDA
Thursday, August 24, 2023
3:30 p.m.
Council Chamber, City Hall
73-510 Fred Waring Drive
Palm Desert, California
This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert
Redevelopment Agency, and the Palm Desert Housing Authority. Pursuant to Assembly Bill 2449, this
meeting may be conducted as a hybrid meeting allowing public access via teleconference or in
person, and up to two Councilmembers may attend remotely.
WATCH THE MEETING LIVE: Watch the City Council meeting live at the City’s website:
www.palmdesert.gov under the “Council Agenda” link at the top of the homepage, or on
the City’s YouTube Channel.
OPTIONS FOR PARTICIPATING IN THIS MEETING:
If unable to attend the meeting in person, you may choose from the following options:
OPTION 1: VIA EMAIL
Send your comments by email to: CouncilMeetingComments@palmdesert.gov.
Emails received prior to 10:00 a.m. on the day of the City Council meeting will be made part of the
record and distributed to the City Council. Emails will not be read aloud at the meeting.
OPTION 2: LIVE VIA ZOOM
Access via palmdesert.gov/zoom or zoom.us, click “Join Meeting” and enter Webinar ID 833
6744 9572.
1.
OPTION 3: LIVE VIA TELEPHONE
(213) 338-8477 and enter Meeting ID 833 6744 9572 followed by #.1.
Indicate that you are a participant by pressing # to continue.2.
During the meeting, press *9 to add yourself to the queue and wait for the Mayor or City
Clerk to announce your name/phone number. Press *6 to unmute your line and limit your
comments to three minutes.
3.
Pages
1.CALL TO ORDER - CLOSED SESSION - 3:30 P.M.
2.PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
This time has been set aside for members of the public to address the City
Council on items contained only on the Closed Session Agenda within the three-
minute time limit. Speakers may utilize one of the options listed on the first page
of this agenda.
3.RECESS TO CLOSED SESSION
4.CLOSED SESSION AGENDA
RECOMMENDATION:
The following items will be considered in closed session.
4.a Closed Session Meeting Minutes: July 13, 2023
4.b Conference with Real Property Negotiations pursuant to Government Code
Section 54956.8
4.b.1 PROPERTY DESCRIPTION: 73710 FRED WARING DRIVE, SUITE
135
Agency: City of Palm Desert
City Negotiator: Todd Hileman/Chris Escobedo/Eric Ceja
Negotiating Parties: Desert Recreation District
Under Negotiation: Price and Terms
4.b.2 PROPERTY DESCRIPTION: 45656 MOUNTAIN VIEW AVENUE
Agency: City of Palm Desert
City Negotiator: Todd Hileman/Chris Escobedo/Eric Ceja
Negotiating Parties: Maureen Gage and Steven Yinger
Under Negotiation: Price and Terms
4.b.3 PROPERTY DESCRIPTION: DESERT WILLOW LOT PAD A (APN 620-
400-025)
Agency: Successor Agency
City Negotiator: Todd Hileman/Chris Escobedo/Eric Ceja
Negotiating Parties: City of Palm Desert
Under Negotiation: Price and Terms
5.ROLL CALL - REGULAR MEETING - 4:00 P.M.
6.PLEDGE OF ALLEGIANCE
Councilmember Harnik
7.INSPIRATION
Mayor Pro Tem Quintanilla
8.REPORT OF CLOSED SESSION
City Attorney Hargreaves
City Council Meeting
Page 2 of 852
9.AWARDS, PRESENTATIONS, AND APPOINTMENTS
9.a PROCLAMATION - DR. VINES DAY 13
10.CITY MANAGER COMMENTS 15
11.MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION
12.NONAGENDA PUBLIC COMMENTS 35
This time has been set aside for the public to address the City Council on issues
that are not on the agenda for up to three minutes. Speakers may utilize one of
the options listed on the first page of the agenda. Because the Brown Act does
not allow the City Council to act on items not listed on the agenda, members
may briefly respond or refer the matter to staff for a report and recommendation
at a future meeting.
13.CONSENT CALENDAR
All matters listed on the Consent Calendar are considered routine and may be
approved by one motion. The public may comment on any items on the Consent
Agenda within the three-minute time limit. Individual items may be removed by
the City Council for a separate discussion.
13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND
HOUSING AUTHORITY MINUTES
71
RECOMMENDATION:
Approve the Minutes of July 13, 2023.
13.b APPROVAL OF WARRANTS 83
RECOMMENDATION:
Approve the warrants issued for the period 4/17/2023 to 8/11/2023.
13.c RECEIVE AND FILE APPLICATIONS FOR ALCOHOLIC BEVERAGE
LICENSES
187
RECOMMENDATION:
Receive and file the applications for Alcoholic Beverage Licenses for the
following businesses:
MR BS SUBS, LLC. 74600 HIGHWAY 111 Ste F1.
LA PRO Visions, Inc; LA PROVENCE PATISSERIE 72785 Hwy
111 Ste B1
2.
CEC Entertainment; Chuck E Cheese's 72513 Hwy 111 Ste H 3.
Palm Desert Harmony, Inc.; Pokehana 73405 Hwy 111 Ste 1044.
13.d ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT
COMMITTEE, CULTURAL ARTS COMMITTEE, AND PARKS AND
RECREATION COMMITTEE
203
RECOMMENDATION:
With regret, accept the resignations of Anyse Smith from the Civic
Engagement Committee; Debra Norby (Alternate) from the Cultural Arts
Committee; and James Henderson from the Parks and Recreation
Committee.
City Council Meeting
Page 3 of 852
13.e HOUSING AUTHORITY: RESOLUTION NO. HA-118 AUTHORIZING
EXECUTION AND DELIVERY OF A HOUSING AND LOAN AGREEMENT
WITH A0358 MONTEREY, L.P., APPROVING A LOAN IN THE AMOUNT
OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE HOUSING
UNITS AND RELATED ACTIONS
205
RECOMMENDATION:
Approve Resolution No. HA-118 authorizing the execution and
delivery of a Loan Agreement, Deed of Trust, Secured Promissory
Note and Housing Agreement, in substantial form, between the
Palm Desert Housing Authority and A0358 Monterey, L.P., a
California Limited Partnership, and approving a loan in the amount
of Seven Million Two Hundred Thirty-Five Thousand Dollars
($7,235,000.00) from the Authority’s Low and Moderate Income
Housing Asset Fund to fund the construction of One-Hundred
Thirty Nine (139) of the One-Hundred Seventy Four (174)
affordable housing units comprising the proposed apartment
project.
1.
Authorize the Chairman and/or Executive Director, in consultation
with legal counsel, to execute as appropriate and deliver, for and
in the name of the Authority, the Loan Agreement, Deed of Trust,
Secured Promissory Note and Housing Agreement presented to
the Authority Board at this meeting, as the same may be modified
by the Executive Director in consultation with legal counsel to the
Authority, provided such modifications are materially consistent
with the purpose of the Resolution.
2.
Authorize the Chairman, the Executive Director, or their respective
designees, in consultation with legal counsel to the Authority, to
execute and deliver, for and in the name of the Authority, all other
necessary or proper documents and instruments, and to do all
things which they may deem necessary or proper to effectuate the
purposes of the Resolution.
3.
13.f APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING &
BUSINESS IMPROVEMENT DISTRICT CONTRACT NO. C43370 WITH
FG CREATIVE
317
RECOMMENDATION:
Authorize Amendment No. 2 to El Paseo Parking and Business
Improvement District (EPPBID) Contract No. C43370 with FG
Creative in the amount of $250,000 for Fiscal Year (FY) 2023/24.
1.
Authorize the City Attorney to make non-substantive changes to
the contract.
2.
Authorize the City Manager to execute the agreement on behalf of
the City.
3.
City Council Meeting
Page 4 of 852
13.g APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF
PALM DESERT AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT
PALM DESERT APARTMENTS PROJECT
359
RECOMMENDATION:
Approve the attached Housing Agreement by and between the
City of Palm Desert and A0358 Monterey, a California Limited
Partnership, (“Owner”), in accordance with the conditions of
approval of the development, of 176 units known as The Crossings
at Palm Desert Apartments, a multifamily rental housing project
located at the southeast corner of Dick Kelly Drive, Palm Desert,
California (the “Project”).
1.
Authorize the City Manager or his designee, to finalize the Housing
Agreement, and the documents described in the Agreement or
otherwise deemed necessary or proper to effectuate the Housing
Agreement and conditions of approval, with such changes thereto
as the City Manager or his designee, in consultation with the City’s
legal counsel, may deem appropriate or necessary and consistent
with the purposes of the Housing Agreement and conditions of
approval, with such approval to be conclusively evidenced by the
execution and delivery thereof.
2.
Authorize the Mayor and/or City Manager or their designee, to
execute and deliver, for and in the name of the City, the Housing
Agreement and other documents, as described in
Recommendation No. 2, and authorize the City Clerk to record the
Housing Agreement.
3.
13.h APPOINT AMY LAWRENCE TO THE COACHELLA VALLEY ECONOMIC
PARTNERSHIP'S BOARD OF DIRECTORS
405
RECOMMENDATION:
Appoint Amy Lawrence to the Coachella Valley Economic Partnership’s
Board of Directors.
13.i APPROVE OUT-OF-STATE TRAVEL FOR PUBLIC AFFAIRS MANAGER
FOR STRATEGIC MARKETING PLANNING IN AUSTIN, TX
407
RECOMMENDATION:
Authorize out-of-state travel for the Public Affairs Manager to travel to
Austin, TX, for an in-depth strategic planning session with the City’s
creative agency, Idea Peddler.
13.j REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN
THE 2024 LEADERSHIP COACHELLA VALLEY PROGRAM
409
RECOMMENDATION:
Approve an expenditure in the amount of $1,200 for Mayor Pro Tem
Quintanilla to participate in the 2024 Leadership Coachella Valley program.
City Council Meeting
Page 5 of 852
13.k CITY COUNCIL AND HOUSING AUTHORITY: APPROVE DOWN
PAYMENT ASSISTANCE LOAN FROM THE LOW-AND MODERATE-
INCOME HOUSING ASSET FUND TO CONTINUE AN AFFORDABLE
HOUSING COST FOR THE HOMEOWNERS AT 75-476 WILDFLOWER
LANE
417
RECOMMENDATION:
Approve the issuance of a silent down-payment assistance loan by
the Palm Desert Housing Authority pursuant to the Desert Rose
Sales Program and standard documents, in the amount of $30,000
to continue an affordable housing cost for the homeowners at 75-
476 Wildflower Lane pursuant to California Health and Safety
Code Section 50052.5 as a qualified low- or moderate-income
household from the Low- and Moderate-Income Housing Asset
Fund.
1.
Authorize the release of the City’s Deed of Trust recorded
December 7, 2012, securing the promissory note for the existing
silent down payment BEGIN loan.
2.
Authorize waiving the interest on the homeowner’s existing City
Loan from the original date the City’s Deed of Trust recorded on
December 7, 2012, through the date of release.
3.
Approve the Palm Desert Housing Authority’s Housing Asset Fund
down payment assistance loan term to be forgivable 30 years from
the original City Loan recording of December 7, 2012, so long as
all terms of the loan are met by the homeowners.
4.
Authorize Director of Finance to transfer $30,000 from the
Homebuyer Down Payment Assistance Account No. 8734699-
4400100 and reimburse the City in BEGIN Fund.
5.
Authorize the City Manager/Executive Director, or designee, to
execute, release, and finalize any documents necessary to
effectuate the actions taken herewith.
6.
13.l RELEASE GRADING BOND AND REDUCE THE FAITHFUL
PERFORMANCE AND LABOR AND MATERIALS BONDS FOR TR 37993,
MONTAGE
419
RECOMMENDATION:
Reduce the Faithful Performance and Labor and Materials Bonds
for TR 37993.
1.
Release the Grading Bond in the full amount of $186,906.2.
City Council Meeting
Page 6 of 852
13.m AWARD CONTRACT NO. C46140 TO DESERT AIR CONDITIONING,
INC., FOR HEATING, VENTILATION, AND AIR CONDITIONING
PREVENTATIVE MAINTENANCE IN THE ANNUAL AMOUNT OF
$106,028 (PROJECT NO. MFA00008)
439
RECOMMENDATION:
Waive any minor proposal irregularities and award Contract No.
C46140 to Desert Air Conditioning, Inc., for the Heating,
Ventilation and Air Conditioning (HVAC) Preventative Maintenance
in the annual amount of $106,028.
1.
Authorize extra work and services for HVAC repairs and
replacements up to the annual amount of $75,000.
2.
Authorize the City Manager or designee to approve up to two, one-
year contract amendments/extensions.
3.
Authorize the City Manager or designee to review and approve
change orders for any unforeseen circumstances per Section
3.30.170 of Ordinance No. 1392.
4.
Authorize the City Attorney to make any necessary, non-monetary
changes to the Agreement and the authorize the City Manager to
execute said agreement.
5.
13.n RESOLUTION AUTHORIZING DESTRUCTION OF OBSOLETE
RECORDS FROM THE FINANCE DEPARTMENT AND HUMAN
RESOURCES DEPARTMENT
549
RECOMMENDATION:
Adopt Resolution No. 2023-039 authorizing the destruction of obsolete
records from the Finance Department and Human Resources Department
pursuant to California Government Code Section 34090.
13.o AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK
AND FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
555
RECOMMENDATION:
Pursuant to PDMC Section 3.30.160(I), award Contract No.
C44620D to R&R B Inc. dba Servpro of Chino/Chino Hills, Chino,
California and Contract No. C44620E to Doug Wall Construction,
Bermuda Dunes, California for Park and Facilities Repairs and
Improvements, for a period of three (3) years in an aggregate
amount not to exceed $3,000,000 per fiscal year.
1.
Authorize the City Manager to review and approve up to two (2)
additional one-year terms per contract for an aggregated amount
not to exceed $3,000,000 per fiscal year.
2.
Authorize the City Manager or designee to review and approve
change orders for unforeseen circumstances.
3.
Authorize the City Manager to execute said agreements.4.
City Council Meeting
Page 7 of 852
13.p RESOLUTION NO. 2023-040 TO RATIFY THE PROCLAMATION OF A
LOCAL EMERGENCY DUE TO HURRICANE HILARY
RECOMMENDATION:
Adopt Resolution No. 2023-040 entitled, "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RATIFYING
THE PROCLAMATION OF A LOCAL EMERGENCY DUE TO
HURRICANE HILARY ISSUED BY THE MAYOR AND CITY MANAGER
ACTING AS THE EMERGENCY CORPS COMMANDER ON AUGUST 20,
2023."
14.ACTION CALENDAR
The public may comment on individual Action Items within the three-minute time
limit. Speakers may utilize one of the options listed on the first page of the
agenda.
14.a APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT
SERVICES BETWEEN THE CITY OF PALM DESERT AND THE COUNTY
OF RIVERSIDE FOR A THREE-YEAR TERM FROM FY2024/2025 TO
FY2026/2027
669
RECOMMENDATION:
Approve Agreement No. C46170 for Law Enforcement Services
with the County of Riverside for a three-year term effective from
July 1, 2024, through June 30, 2027.
1.
Authorize the City Attorney to make any necessary, non-monetary
changes to the Agreement.
2.
Authorize the Mayor to execute the Agreement and any
documents necessary to effectuate and implement the actions
taken herewith.
3.
14.b PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE
OF PUBLIC HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND
OUTREACH PLAN – OPTIONAL PROCESSES FOR ESTABLISHING
DISTRICT BOUNDARIES
693
RECOMMENDATION:
Approve the Public Education and Outreach Plan & Schedule of
Public Hearings/Workshops.
1.
Provide direction relative to optional processes for establishing
district boundaries.
2.
City Council Meeting
Page 8 of 852
14.c INTRODUCTION OF ORDINANCE NO. 1399 UPDATING CHAPTER 8.20
OF THE PALM DESERT MUNICIPAL CODE UPDATING PUBLIC
NUISANCE ABATEMENT AND COST RECOVERY PROCEDURES, AND
MAKING A FINDING OF EXEMPTION UNDER CEQA
739
RECOMMENDATION:
Waive full reading and introduce Ordinance No. 1399 entitled, “AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, UPDATING CHAPTER 8.20 OF THE PALM DESERT
MUNICIPAL CODE REGARDING PUBLIC NUISANCE ABATEMENT AND
COST RECOVERY PROCEDURES, AND MAKING A FINDING OF
EXEMPTION UNDER CEQA”
14.d REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING
CHAPTER 5.04 REGARDING MODIFICATION, SUSPENSION, OR
REVOCATION OF BUSINESS LICENSES
757
15.PUBLIC HEARINGS
The public may comment on individual Public Hearing Items within the three-
minute time limit. The applicant or appellant will be provided up to five minutes
to make their presentation. Speakers may utilize one of the options listed on the
first page of this agenda.
15.a JOINT CITY COUNCIL AND HOUSING AUTHORITY PUBLIC HEARING
TO CONSIDER REMOVAL OF BLAIR ARMSTRONG FROM THE PALM
DESERT HOUSING COMMISSION IN ACCORDANCE WITH HEALTH
AND SAFETY CODE SECTION 34282
767
RECOMMENDATION:
Pursuant to Health and Safety Code Section 34282, conduct a
hearing on the removal of Blair Armstrong from the Palm Desert
Housing Commission.
1.
Find Blair Armstrong to be in neglect of duty of his obligations as a
Housing Commissioner and remove him from the Palm Desert
Housing Commission, effective immediately.
2.
City Council Meeting
Page 9 of 852
15.b RESOLUTION NO. 2023-041: APPROVE A PROPOSED PLAN FOR
BOND ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY FOR THE CROSSINGS AT PALM
DESERT APARTMENT PROJECT
773
RECOMMENDATION:
Conduct the public hearing under the requirements of Tax and
Equity Fiscal Responsibility Act (“TEFRA”) and the Internal
Revenue Code of 1986, as amended (the “Code”) in connection
with the proposed issuance in one or more series of revenue
bonds by the California Statewide Communities Development
Authority (“CSCDA”), a joint exercise of powers authority and
public entity of the State of California, in an amount not to exceed
Sixty Million Dollars $60,000,000.00 (the “Bonds”), to finance the
acquisition, construction and development of the 176-unit
Crossings at Palm Desert Apartments, a multifamily rental housing
project located at located at the southeast corner of Dick Kelly
Drive & Gateway Drive, Palm Desert, California (the “Project”) and
receive public comments.
1.
Adopt Resolution No. 2023-041 in the form attached hereto
approving the issuance of the Bonds by CSCDA for the benefit of
A0357 Palm Desert, L.P., a California Limited Partnership (the
"Borrower") a partnership of which Urban Housing Communities,
LLC (the "Developer") or a related person to the Developer is the
general partner, to provide for the financing of the Project. Such
adoption is solely for the purposes of satisfying the requirements
of TEFRA, the Code and California Government Code Sections
6500 et seq.
2.
15.c ORDINANCE NO. 1398 TO CHANGE THE ZONING DESIGNATION OF
PARCEL 1 OF PARCEL MAP NO. 36614, LOCATED APPROX. 500 FEET
FROM NW CORNER OF HWY 111 AND FRED WARING DR. FROM
RESORT COMMERCIAL CENTER (PC-4) TO DISTRICT COMMERCIAL
CENTER (PC-2) - CEQA FINDING
787
RECOMMENDATION:
Waive full reading and introduce Ordinance No. 1398 entitled, “AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION PURSUANT TO
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) AND
APPROVING A CHANGE OF ZONE FROM PC-4 TO PC-2 FOR THE
PROPERTY LOCATED ON PARCEL 1 OF PARCEL MAP NO. 36614 AT
72221 HIGHWAY 111 (ASSESSOR'S PARCEL NUMBER 640-020-054)”
City Council Meeting
Page 10 of 852
15.d CONSIDER APPROVAL OF A TRANSIENT OCCUPANCY TAX SHARING
AGREEMENT NO. C46160 BETWEEN THE CITY OF PALM DESERT
AND NEWAGE DESERT SPRINGS, LLC
833
RECOMMENDATION:
Approve the DRAFT Transient Occupancy Tax (TOT) Sharing
Agreement No. C46160 between the City of Palm Desert and
Newage Desert Springs, LLC remitting 50% of incremental TOT
generation not to exceed $10 million to the property owner for the
development and expansion of conference/ballroom space at the
JW Marriott Desert Springs.
1.
Authorize the City Attorney to make non-substantive changes to
the Agreement.
2.
Authorize the City Manager to execute said Agreement.3.
16.INFORMATION ITEMS
17.ADJOURNMENT
City Council Meeting
Page 11 of 852
18.PUBLIC NOTICES
Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the
designated office for inspection of records in connection with this meeting is the
Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive,
Palm Desert. Staff reports for all agenda items considered in open session, and
documents provided to a majority of the legislative bodies are available for
public inspection at City Hall and on the City’s website at www.palmdesert.gov
by clicking “Council Agenda” at the top of the page.
Americans with Disabilities Act: It is the intention of the City of Palm Desert to
comply with the Americans with Disabilities Act (ADA) in all respects. If, as an
attendee or a participant at this meeting, or in meetings on a regular basis, you
will need special assistance beyond what is normally provided, the City will
attempt to accommodate you in every reasonable manner. Please contact the
Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to
inform us of your needs and to determine if accommodation is feasible.
AFFIDAVIT OF POSTING
I, Níamh M. Ortega, Assistant City Clerk of the City of Palm Desert, do hereby
certify, under penalty of perjury under the laws of the State of California, that the
foregoing agenda for the Palm Desert City Council, Successor Agency for the
Palm Desert Redevelopment Agency, and Housing Authority, was posted on the
City Hall bulletin board and City website www.palmdesert.gov no less than 72
hours prior to the meeting.
/S/ Níamh M. Ortega
Assistant City Clerk
City Council Meeting
Page 12 of 852
WHEREAS, Diane Vines came to the Coachella Valley with vast
experience in nursing, nursing administration, education and mental health,
including teaching appointments at prestigious universities, service as a
community psychiatric nurse and leadership of the street medicine program at
the University of Portland; and
WHEREAS, for the past four years, Dr. Vines has put all this experience to
work as the Director and Principal Investigator for the CSUSB Nursing Street
Medicine Program in the Coachella Valley and San Bernadino; and
WHEREAS, the unique program infuses nurse trainees with deep
appreciation for the needs of unhoused persons and the sensitivity to address
those needs; and
WHEREAS, Dr. Vines’ leadership will have positive ripples of influence in
the delivery of medical services and caregiving offered by her students for
years to come;
NOW, THEREFORE, I, Kathleen Kelly, Mayor of the
City of Palm Desert, and the entire City Council, do hereby recognize August
24, 2023, as
Dr. Diane Vines Day
and urge all citizens to join me in extending our congratulations and appreciation for her
dedicated service to our community.
In Witness Whereof, I have hereunto set my hand
and have caused the Official Seal of the City of
Palm Desert, California, to be affixed this 24th day
of August 2023.
Page 13 of 851
Page 14 of 851
50TH ANNIVERSARY
CELEBRATION
UPDATE
Page 15 of 851
EVENT
DETAILS
o Saturday, November 18,
2023 – 3 p.m. to 10 p.m.
o Palm Desert Civic Center
Park
o Palm Springs Life
producing the event
Page 16 of 851
PROGRAMMING
o Live Entertainment
o Art Installations
o Food Trucks / Beer & Wine
Garden
o Taste of Palm Desert
o Best of Palm Desert
o Kids Activities
o Storytelling
Page 17 of 851
PROPOSED PARTNERS/SPONSORS
*NOT COMPLETE LIST
o Palm Desert Historical Society
o McCallum Theatre
o The Living Desert Zoo and Gardens
o Palm Desert Area Chamber of Commerce
o Burrtec Waste and Recycling Services
o College of the Desert
o UCR Palm Desert Campus
o CSUSB – Palm Desert
o Acrisure Arena
o Coachella Valley Firebirds
o JW Marriott
o Renova Energy
o El Paseo Businesses
o The Gardens on El Paseo
o The Shops at Palm Desert
o Shadow Mountain Golf Club
o Family YMCA of the Desert
o Desert Recreation District
o Artists Center at the Galen
o Flat Black Art Supply
Page 18 of 851
FUTURE UPDATES
•Event Name/Branding
•Announcement of
Entertainment/Artists
•Secured Partnerships/Sponsors
•Marketing/Promotion Plan
Page 19 of 851
Page 20 of 851
PALM DESERT RESPONDS
TO HURRICANE HILARY
Page 21 of 851
BEFORE THE STORM:
•Emergency Operations Center Activated
•Communications Strategy
•New webpage created, updated
every 30 minutes during and after
the storm
•Press release sent to media,and
newsletters were sent to residents,
businesses, and HOAs on resources
•Message and flyer sent to all PDHA
tenants
•Twitter, Facebook,Nextdoor,
updates, roughly every 20
minutes throughout the storm
•Positive public perception of the
City’s response to the storm
Sandbag Distribution
Civic Center Park
8/19/2023Page 22 of 851
3
PUBLIC WORKS
RESPONSE
Cook Street
•Distributed over 50,000 sandbags to residents
•35 City staff activated
•Administrative staff
•All Street team activated
•All Landscape team activated
•Roughly 300 tons of sand provided
•Checked all roadway drainage systems and turned off
irrigation to parks and city property
•Prepared all storm equipment: chainsaws, pumps, rain
gear
•Prepared traffic control in preparation for road
closures Page 23 of 851
WHAT
OCCURRED
DURING THE
STORM
•Hurricane Hilary
caused widespread
flooding due to heavy
rainfall
•City staff quickly
coordinated a
response plan and
held regular Zoom
meetings ,enabling
efficient collaboration
on our strategy
El Paseo & 111Freedom Park
Grapevine Street
Page 24 of 851
FLOOD MITIGATION
INFRASTRUCTURE
WORKED AS IT
SHOULD
Cook Street at
Whitewater Channel
Retention Basin Near
Hovley Lane West
Page 25 of 851
INCLUDING
RECENT
INVESTMENTS
Whitestone Lane
Before: 2016
Whitestone Lane
During Storm: 2023
Page 26 of 851
Post-Storm
Assessment
•Park issues
•Flooding
•Damage to park
structures
•Landscape
•Damage to
approximately 300
to 400 trees
•Street issues
•Flooding & trees on
roadways
•Traffic signals
Fred Waring
Freedom Park
University Park East
NE Corner of
Freedom Park Page 27 of 851
SPANISH
WALK
•City and Riverside County Fire notified of a
major drainage channel topping its berm
and flooding the Spanish Walk
neighborhood
•34 homes red-tagged for life and safety
purposes
•City staff transported displaced residents by
vans loaned from Family YMCA of the
Desert
•City found temporary shelter for displaced
residents and provided food and drinks
Paseo Bravo Looking
Southeast
Flood on Paseo Bravo
Page 28 of 851
SPANISH WALK SINCE
THE STORM
•A new temporary berm structure was
created northwest of the community
•Community drained of water and
streets cleaned of mud and debris
•Ongoing assessment for other
mitigation efforts
Clean Up Efforts on
Paseo Bravo
Page 29 of 851
MAJOR TROUBLE
SPOTS
•Channel at Spanish Walk / clean up
•Berm / Regional solutions
•Cook & Gerald Ford
•Gerald Ford and Frank Sinatra
•Looking for permanent solutions to low points in roads
•Traffic signal outages
Gerald Ford at Cook
Fred Waring at Tenn.
Gerald Ford
Page 30 of 851
STRATEGY FOR
PARKS REOPENING
•Pumps to dewater
flooded areas
•Landscape
Contractors on
cleanup and debris
removal
•Inspect electrical,
irrigation, and
playground
equipment
Freedom Park
Magnesia Falls Park
Civic Center Park
Page 31 of 851
NEXT STEPS
12
•Prioritize remediation efforts
•Comprehensive drainage study
•Expedite Section 29 Drainage Basin Project
•Methods of possible reimbursement
•Talked to CJPIA regarding
reimbursements for city-owned assets
•Taking steps to pursue State or federal
funds
Hovley Soccer Park
Page 32 of 851
THANKS TO OUR STAFF
& VENDORS
•All City staff who supported storm
preparation and remediation efforts:
•Public Works
•Capital Improvements
•Landscape
•Streets Team
•Facilities
•Emergency Services Coordinator
•Communications
•And our fast-acting vendors:
•Family YMCA of the Desert
•Granite Construction
•Tri-Star Construction
•CTI
•West Coast Arborists
•Residence Inn by Marriott
•Burrtec
•Wilcorp
Page 33 of 851
Page 34 of 851
Page 35 of 851
Page 36 of 851
Page 37 of 851
Page 38 of 851
Page 39 of 851
Page 40 of 851
Page 41 of 851
Page 42 of 851
Page 43 of 851
Page 44 of 851
Page 45 of 851
Page 46 of 851
Page 47 of 851
Page 48 of 851
Page 49 of 851
Page 50 of 851
Page 51 of 851
Page 52 of 851
Page 53 of 851
Page 54 of 851
Page 55 of 851
Page 56 of 851
Page 57 of 851
Page 58 of 851
Page 59 of 851
Page 60 of 851
Page 61 of 851
Page 62 of 851
Page 63 of 851
Page 64 of 851
Page 65 of 851
Page 66 of 851
Page 67 of 851
Page 68 of 851
Page 69 of 851
Page 70 of 851
Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment
Agency, and Housing Authority
Regular Meeting Minutes
July 13, 2023, 3:15 p.m.
Present: Councilmembers Jan Harnik, Gina Nestande*, and Evan Trubee;
Mayor Pro Tem Karina Quintanilla*; and Mayor Kathleen Kelly
*Mayor Pro Tem Quintanilla and Councilmember Nestande remote
participated in accordance with AB 2449.
1. CALL TO ORDER - CLOSED SESSION - 3:15 P.M.
A Regular Meeting of the Palm Desert City Council was called to order by Mayor Kelly on
Thursday, July 13, 2023, at 3:15 p.m. in the Council Chamber, City Hall, located at 73 -
510 Fred Waring Drive, Palm Desert, California.
2. PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
3. RECESS TO CLOSED SESSION
Mayor Kelly adjourned to Closed Session at 3:16 p.m.
4. CLOSED SESSION AGENDA
4.a Closed Session Meeting Minutes: June 22, 2023
4.b Conference with Real Property Negotiations pursuant to Government Code
Section 54956.8:
4.b.1 Property Description: 72-559 Highway 111
4.b.2 Property Description: 9002 Shadow Ridge Road
4.c Conference with Legal Counsel regarding Significant Exposure to
Litigation pursuant to Government Code Section 54956.9(d)(2):
5. ROLL CALL - REGULAR MEETING - 4:00 P.M.
Mayor Kelly reconvened the regular meeting at 4:00 p.m.
6. PLEDGE OF ALLEGIANCE
Councilmember Nestande led the Pledge of Allegiance.
7. INSPIRATION
Councilmember Harnik offered words of inspiration.
8. REPORT OF CLOSED SESSION
Assistant City Attorney Shah stated that direction was given by the City Council; no
reportable actions were taken.
Page 71 of 851
Palm Desert City Council Meeting
July 13, 2023
2
9. AWARDS, PRESENTATIONS, AND APPOINTMENTS
None.
10. CITY MANAGER COMMENTS
10.a FOURTH OF JULY CELEBRATION UPDATE
Deputy Director of Economic Development Lawrence provided a report of the
event and thanked the City's partners for their support and participation. Mayor
Kelly expressed her appreciation for staff who worked the event.
10.b OUTDOOR WORKER APPRECIATION DAY
Public Works Director Alvarez noted that July 17-23 would be recognized as
Outdoor Worker Appreciation Week, and thanked staff in a variety of divisions
who provide service to the community on an ongoing basis.
11 . MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION
Councilmembers reported on their attendance at various meetings and events.
Councilmember Harnik reported a $1.3B grant for the I-10 trade corridor and that CVAG
would be leading the project. She reminded residents to check on their neighbors during
this time of extreme heat; reminded to donate blood through August 31, Nine Cities
Challenge. Councilmember Trubee reminded the public the inaugural Library Taskforce
meeting will take place in the following week. Mayor Kelly requested on April 27, 2019,
unanimously observed that the various downtown overlay districts were not serving to
implement the General Plan, particularly in regard to heights. Want staff assessment of
how well the overlay districts are functioning, and provide recommendations for
alternatives. Supported by all Councilmembers.
12. NON-AGENDA PUBLIC COMMENTS
Barbara Wasserkrug, Palm Desert resident, spoke in opposition to the use of FLOCK
license plate readers in the city. Mayor Kelly requested a summary in the weekly report
regarding the safeguards in place.
13. CONSENT CALENDAR
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Approve the consent calendar as presented.
Motion Carried (5 to 0)
13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING
AUTHORITY MINUTES
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Approve the Minutes of June 22, 2023.
Motion Carried
Page 72 of 851
Palm Desert City Council Meeting
July 13, 2023
3
13.b APPROVAL OF WARRANTS
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Approve the warrants issued for the period January 14 through June 30, 2023.
Motion Carried
13.c APPROVE SPONSORSHIP FOR CELEBRATE CV EVENT
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Approve sponsorship in the amount of $25,000 for the Celebrate CV event
scheduled for December 30, 2023.
2. Authorize the Director of Finance to appropriate $25,000 to Account No.
1104800-4306201, from available General Fund Reserves.
Motion Carried
13.d APPROVE REVISIONS TO THE CITY OF PALM DESERT'S PUBLIC ART
DEACCESSIONING POLICY
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Approve revisions to the City of Palm Desert's Public Art Deaccessioning Policy
for the City's permanent public art collection.
Motion Carried
13.e ADOPT A RESOLUTION DECLARING CITY OF PALM DESERT OWNED
PROPERTIES WITH ASSESSOR’S PARCEL NUMBERS (APN) 627-101-002,
627-101-017, 627-101-033, 627-101-061, 627-101-062, AND ADJACENT
RIGHT OF WAY SURPLUS LAND
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Adopt a Resolution declaring City of Palm Desert properties with APNs
627-101-002, 627-101-017, 627-101-033, 627-101-061, 627-101-062, and
adjacent Right of Way surplus land for purposes of the Surplus Land Act.
2. Authorize staff to release a Notice of Availability for the sale of the
properties.
Motion Carried
Page 73 of 851
Palm Desert City Council Meeting
July 13, 2023
4
13.f ADOPT A RESOLUTION DECLARING CITY OF PALM DESERT OWNED
PROPERTIES WITH ASSESSOR’S PARCEL NUMBERS (APN) 640-370-018
AND 640-370-016 SURPLUS LAND
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Adopt a Resolution declaring City of Palm Desert properties with APNs
640-370-018 and 640-370-016 surplus land for purposes of the Surplus
Land Act.
2. Authorize staff to release a Notice of Availability for the sale of the
properties.
Motion Carried
13.g ADOPT A RESOLUTION DECLARING CITY OF PALM DESERT OWNED
PROPERTY WITH ASSESSOR’S PARCEL NUMBER 627-164-012 SURPLUS
LAND AND AUTHORIZING STAFF TO RELEASE A NOTICE OF
AVAILABILITY FOR THE SALE OF THE PROPERTY
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Adopt a Resolution declaring City of Palm Desert property with APN 627-
164-012 surplus land for purposes of the Surplus Land Act.
2. Authorize staff to release a Notice of Availability for the sale of the
property.
Motion Carried
13.h APPROVAL OF RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX
IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) FOR
FISCAL YEAR 2023-24
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Approve a Resolution authorizing the annual levy of a special tax in the City of
Palm Desert Community Facilities District No. 2005-1 (University Park) for Fiscal
Year 2023-24.
Motion Carried
Page 74 of 851
Palm Desert City Council Meeting
July 13, 2023
5
13.i APPROVAL OF RESOLUTION AUTHORIZING THE LEVY OF A SPECIAL TAX
IN COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) FOR
FISCAL YEAR 2023-24
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Approve Resolution authorizing the annual levy of a special tax in the City of
Palm Desert Community Facilities District No. 2021-1 (University Park) for Fiscal
Year 2023-24.
Motion Carried
13.j APPROVE A ONE YEAR EXTENSION TO THE CONTRACT BETWEEN THE
CITY OF PALM DESERT AND CIRCUIT TRANSIT, INC., TO PROVIDE EL
PASEO COURTESY CART SERVICES FOR FISCAL YEAR 2023/24
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Approve Amendment No. 1 to Contract No. C43540 with Circuit Transit,
Inc., in an amount not to exceed $219,241.02, including regularly
scheduled, special events and flex hours for the operation of the El Paseo
Courtesy Cart Program during Fiscal Year 2023/24.
2. Authorize the City Manager to execute said contract and allow the City
Attorney to make non-substantive changes.
Motion Carried
Page 75 of 851
Palm Desert City Council Meeting
July 13, 2023
6
13.k HOUSING AUTHORITY: RATIFICATION OF MULTIPLE VENDOR
CONTRACTS FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE
HOUSING AUTHORITY PROPERTIES IN THE AGGREGATE AMOUNT NOT
TO EXCEED $270,000
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Ratify the award of multiple vendor contracts for construction
management services entered between the City of Palm Desert and Anser
Advisory Management LLC, MARRS Services, Inc., and MAAS
Companies, Inc., to support the completion of capital improvement
projects at the Housing Authority properties in the aggregate amount not
to exceed $270,000.
2. Authorize the City to administer the contracts on behalf of the Housing
Authority and authorize the City Manager to execute said contracts and
subsequent task orders.
3. Authorize Director of Finance to transfer $100,000 from Housing A uthority
Account No. 8714195-4309200 to Account No. 8714195-4331100 for
Fiscal Year 2022/23.
4. Direct the Director of Finance and Director of Public Works/Capital
Projects to review annual expenditures and performance of the vendors
under said contracts.
5. Authorize the contracts subject to the City Attorney’s non-monetary
changes as to form.
Motion Carried
13.l HOUSING AUTHORITY: APPROVAL OF AMENDMENT NO. 2 TO CONTRACT
HA 40360 WITH SOUTHWEST PROTECTIVE SERVICES, INC., FOR
COURTESY PATROL SERVICES AT PALM DESERT HOUSING AUTHORITY
PROPERTIES IN A TOTAL AMOUNT NOT TO EXCEED $145,517.20
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Approve Amendment No. 2 to Contract HA 40360 with Southwest
Protective Services, Inc., for courtesy patrol services at the Palm Desert
Housing Authority properties effective September 1, 2023, for an
additional one (1) year term in a total annual amount not to exceed
$145,517.20 (includes an annual amount not to exceed $135,517.20 and
up to $10,000 for additional services to be requested as needed).
2. Authorize the Executive Director to execute the Amendment and any
documents necessary to effectuate and implement the actions taken
herewith.
Motion Carried
Page 76 of 851
Palm Desert City Council Meeting
July 13, 2023
7
13.m RECEIVE AND FILE A LETTER OF SUPPORT FOR COACHELLA VALLEY
ASSOCIATION OF GOVERNMENTS’ GRANT APPLICATION TO THE
CALIFORNIA TRANSPORTATION COMMISSION'S LOCAL
TRANSPORTATION CLIMATE ADAPTATION PROGRAM
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Receive and file the letter of support for Coachella Valley Association of
Governments’ grant application for the ACCESS Indian Canyon Project to the
California Transportation Commission's Local Transportation Climate Adaptation
Program.
Motion Carried
13.n HOUSING AUTHORITY: APPROVE A RESOLUTION ADOPTING A RECORDS
MANAGEMENT AND RETENTION POLICY
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Approve a Resolution adopting the Records Management Policy and Records
Retention Schedules of the City of Palm Desert to apply to the Palm Desert
Housing Authority, except as otherwise preempted by federal, state, or local law.
Motion Carried
13.o REJECT ALL PROPOSALS FOR BUMP & GRIND TRAILHEAD RESTROOM
PROJECT AND AUTHORIZE STAFF TO READVERTISE FOR PROPOSALS
(PROJECT NO. 956-23)
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Reject all proposals presented for Bump & Grind Trailhead Restroom
Project.
2. Authorize Public Works staff to readvertise the project.
Motion Carried
13.p RATIFY THE CITY MANAGER’S APPROVAL OF CHANGE ORDER NO. 2 TO
CONTRACT NO. C40620 FOR THE DRAINAGE IMPROVEMENTS AT FIRE
STATION NO. 71-COUNTRY CLUB DRIVE (PROJECT NO. 562-23)
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Ratify the City Manager’s approval of Change Order No. 2 to C40620 with Pro-
Craft Construction for drainage improvements at Fire Station No. 71-Country
Club Drive, in the amount of $125,000.
Motion Carried
Page 77 of 851
Palm Desert City Council Meeting
July 13, 2023
8
13.q AUTHORIZE THE TRANSFER OF DEVELOPER DEPOSIT FOR PORTOLA
AVENUE MEDIAN AND MAGNESIA FALLS DRIVE MEDIAN ISLAND
LANDSCAPE PROJECT (PROJECT NO. 937-23/MLS00027)
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Authorize the Director of Finance to transfer developer deposit in the amount of
$151,200 from Deposit Account No. 4000000-2220000 to Project Account No.
4004614-4337001 for the Portola Avenue and Magnesia Falls Drive Median
Island Landscape Installation.
Motion Carried
13.r APPROVE FIRST AMENDMENT TO THE AGREEMENT FOR MARKETING
SERVICES BETWEEN THE CITY OF PALM DESERT AND IDEA PEDDLER
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
1. Approve Amendment No. 1 to Contract No. C43390 in the amount of
$890,000 with Idea Peddler for marketing services.
2. Authorize the City Attorney to make non-substantive changes to the
amendment and the City Manager to execute the agreement on behalf of
the City.
Motion Carried
13.s ADOPT A RESOLUTION SETTING THE CITY COUNCIL REGULAR MEETING
SCHEDULE FOR THE CALENDAR YEAR 2024
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Harnik
Adopt a Resolution establishing dates for regular meetings of the Palm Desert
City Council for the calendar year 2024.
Motion Carried
Page 78 of 851
Palm Desert City Council Meeting
July 13, 2023
9
14. ACTION CALENDAR
14.a AWARD CONTRACT TO PALM SPRINGS LIFE / DESERT PUBLICATIONS,
INC., TO PRODUCE PALM DESERT’S 50TH ANNIVERSARY CELEBRATION
Deputy Director of Economic Development Lawrence provided a staff report and
responded to City Council inquiries.
Motion by: Councilmember Harnik
Seconded by: Councilmember Trubee
1. Approve Contract with Palm Springs Life/Desert Publications, Inc., in the
amount of $350,000 to produce Palm Desert’s 50th Anniversary
Celebration scheduled for November 18, 2023.
2. Authorize staff to finalize negotiations of the Contract.
3. Authorize the City Manager to execute Contract, subject to the satisfaction
of the City Attorney.
4. Authorize Director of Finance to appropriate $270,000 to Account No.
1104800-4306101, from available General Fund Reserves.
Motion Carried (5 to 0)
14.b APPROVE CONTRACT WITH COACHELL A VALLEY WATER DISTRICT FOR
UTILITY CONFLICT RELOCATION IN ROUNDABOUT AT SAN PABLO
AVENUE AND SAN GORGONIO WAY
Deputy Director of Economic Development Lawrence presented a staff report
and responded to City Council inquiries.
Motion by: Mayor Pro Tem Quintanilla
Seconded by: Councilmember Nestande
1. Approve a Contract with Coachella Valley Water District (CVWD) for Utility
Conflict Relocation at San Pablo Phase 1 Roundabout in the amount of
$115,000 to prepare for installation of Sunburst sculpture by artist Donald
Gialanella.
2. Approve project contingency in the amount of $30,000.
3. Authorize Director of Finance to appropriate $145,000 to the Restricted
Capital Project Fund Account No. 4514342-4400100.
4. Authorize City Attorney to make any necessary, non -monetary changes to
the CVWD Contract.
5. Approve gas line relocation by SoCalGas.
6. Authorize City Manager to sign all documents and waive all permit fees
associated with execution of this project.
Motion Carried (5 to 0)
Page 79 of 851
Palm Desert City Council Meeting
July 13, 2023
10
14.c AWARD CONTRACT NO. C45240 IN THE AMOUNT OF $3,057,420 TO
MATICH CORPORATION OF SAN BERNARDINO, CALIFORNIA, FOR THE
FRED WARING DRIVE STREET REHABILITATION PROJECT (PROJECT NO.
752-23/MST00008)
Project Manager Gayler narrated a PowerPoint presentation and responded to
City Council inquiries.
Motion by: Councilmember Harnik
Seconded by: Councilmember Trubee
1. Make a finding that the project is categorically exempt from further review
under the California Environmental Quality Act guidelines, Class 1 of
Section 15301, and authorize the City Engineer to submit a Notice of
Exemption.
2. Award Contract No. C45240, including bid alternate #1, in the amount of
$3,057,420 to Matich Corporation of San Bernardino, California, for the
Fred Waring Drive Street Rehabilitation Project.
3. Authorize the Director of Finance to set aside a 10% contingency in the
amount of $306,000.
4. Authorize the Director of Finance to set aside an early completion
incentive in the amount of $300,000.
5. Authorize the City Manager to review and approve written requests for the
use of contingency for unanticipated conditions, per Section 3.30.170
Section B of Ordinance No. 1392.
6. Authorize the City Manager to review and approve the use of incentive
funds if the requisite conditions have been met.
7. Authorize the City Manager or designee to execute the Agreement and the
City Attorney to make non-monetary changes to the contract.
Motion Carried (5 to 0)
Page 80 of 851
Palm Desert City Council Meeting
July 13, 2023
11
15. PUBLIC HEARINGS
15.a APPROVE A PROPOSED PLAN FOR BOND ISSUANCE BY THE
CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR
THE CROSSINGS AT PALM DESERT APARTMENT PROJECT
Housing Manager Gonzales narrated a PowerPoint presentation and responded
to City Council inquiries.
Mayor Kelly opened and closed the public hearing, there being no member of the
public wishing to speak.
Motion by: Councilmember Nestande
Seconded by: Mayor Pro Tem Quintanilla
1. Conduct the public hearing under the requirements of Tax and Equity
Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of
1986, as amended (the “Code”) in connection with the proposed issuance
in one or more series of revenue bonds by the California Statewide
Communities Development Authority (“CSCDA”), a joint exercise of
powers authority and public entity of the State of California, in an amount
not to exceed Sixty Million Dollars $60,000,000.00 (the “Bonds”), to
finance the acquisition, construction and development of the 176-unit
Crossings at Palm Desert Apartments, a multifamily rental housing project
located at located at the southeast corner of Dick Kelly Drive & Gateway
Drive, Palm Desert, California (the “Project”) and receive public
comments.
2. Adopt a resolution in the form attached hereto approving the issuance of
the Bonds by CSCDA for the benefit of A0357 Palm Desert, L.P., a
California Limited Partnership (the "Borrower") a partnership of which
Urban Housing Communities, LLC (the "Developer") or a related person to
the Developer is the general partner, to provide for the financing of the
Project. Such adoption is solely for the purposes of satisfying the
requirements of TEFRA, the Code and California Government Code
Sections 6500 et seq.
Motion Carried (5 to 0)
Page 81 of 851
Palm Desert City Council Meeting
July 13, 2023
12
15.b APPROVE A POWER PURCHASE AGREEMENT WITH FOREFRONT POWER
FOR THE DESERT WILLOW OVERFLOW LOT PHOTOVOLTAIC PROJECT
(PROJECT NO. 777-14/CFA00005)
Project Manager Gayler presented a staff report and responded to City Council
inquiries.
Mayor Kelly opened the public hearing.
Following the adoption of the the resolution, Mayor Kelly closed the public
hearing, there being no member of the public wishing to speak.
Motion by: Councilmember Harnik
Seconded by: Councilmember Trubee
Conduct a Public Hearing and adopt a Resolution finding that the project will
result in net cost savings to the City over the life of the 20 -year contract and
finding that the project is categorically exempt from further review pursuant to the
requirements of the California Environmental Quality Act (CEQA).
Motion Carried (5 to 0)
Motion by: Councilmember Harnik
Seconded by: Councilmember Trubee
1. Authorize the City Manager to execute the Power Purchase Agreement for
the Photovoltaic Systems at the planned Overflow Lot.
2. Authorize the City Manager to negotiate non-monetary changes and
clarifications to the agreements, in consultation with the City Attorney, as
may be required to carry out the intent of the agreement.
Motion Carried (5 to 0)
16. INFORMATION ITEMS
None.
17. ADJOURNMENT
The City Council adjourned at 4:45 p.m.
_________________________
Níamh M. Ortega
Assistant City Clerk/Assistant Secretary
_________________________
Anthony J. Mejia, MMC
City Clerk/Secretary
Page 82 of 851
Page 83 of 851
Page 84 of 851
Page 85 of 851
Page 86 of 851
Page 87 of 851
Page 88 of 851
Page 89 of 851
Page 90 of 851
Page 91 of 851
Page 92 of 851
Page 93 of 851
Page 94 of 851
Page 95 of 851
Page 96 of 851
Page 97 of 851
Page 98 of 851
Page 99 of 851
Page 100 of 851
Page 101 of 851
Page 102 of 851
Page 103 of 851
Page 104 of 851
Page 105 of 851
Page 106 of 851
Page 107 of 851
Page 108 of 851
Page 109 of 851
Page 110 of 851
Page 111 of 851
Page 112 of 851
Page 113 of 851
Page 114 of 851
Page 115 of 851
Page 116 of 851
Page 117 of 851
Page 118 of 851
Page 119 of 851
Page 120 of 851
Page 121 of 851
Page 122 of 851
Page 123 of 851
Page 124 of 851
Page 125 of 851
Page 126 of 851
Page 127 of 851
Page 128 of 851
Page 129 of 851
Page 130 of 851
Page 131 of 851
Page 132 of 851
Page 133 of 851
Page 134 of 851
Page 135 of 851
Page 136 of 851
Page 137 of 851
Page 138 of 851
Page 139 of 851
Page 140 of 851
Page 141 of 851
Page 142 of 851
Page 143 of 851
Page 144 of 851
Page 145 of 851
Page 146 of 851
Page 147 of 851
Page 148 of 851
Page 149 of 851
Page 150 of 851
Page 151 of 851
Page 152 of 851
Page 153 of 851
Page 154 of 851
Page 155 of 851
Page 156 of 851
Page 157 of 851
Page 158 of 851
Page 159 of 851
Page 160 of 851
Page 161 of 851
Page 162 of 851
Page 163 of 851
Page 164 of 851
Page 165 of 851
Page 166 of 851
Page 167 of 851
Page 168 of 851
Page 169 of 851
Page 170 of 851
Page 171 of 851
Page 172 of 851
Page 173 of 851
Page 174 of 851
Page 175 of 851
Page 176 of 851
Page 177 of 851
Page 178 of 851
Page 179 of 851
Page 180 of 851
Page 181 of 851
Page 182 of 851
Page 183 of 851
Page 184 of 851
Page 185 of 851
Page 186 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
MICHELLE NANCE, DEPUTY CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department: __________________________ Date: ________________
Response:
No comment – okay to present to City Council.
Refer to ______________________________________ - related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Page 187 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
0,&+(//(1$1&(, '(387<CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department:__________________________Date:B _______________
Response:
No comment – okay to present to City Council.
Refer to______________________________________ related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
MR BS SUBS, LLC. 74600 HIGHWAY 111 Ste F. Palm Desert, CA 92260
Friday, January 20, 2023.
June 22, 2023Development Services: Planning
✔
June 16, 2023
Page 188 of 851
Department of Alcoholic Beverage Control
A PP LICATION F OR ALC O H OLIC BEVERAGE LICENSE(S)
ABC 2 11 (6 /99)
State of California
T O :Department of Alcoholic Beverage Control
34-160 GATEWAY DR.
STE 120
File umber: 64 9009
R ece ipt Number: 280 7494
Geographical Code: 3318
PALM DESERT, CA 92211
(760) 324-2027
Copies Mailed Date: J un e 6 , 2023
Iss u ed Date:
DISTRICT SERVfNG LOCATION: PALM D ESE RT
First Owner:
Name of Business:
Location of Busi ness :
County :
Is Premi ses in side city limits?
Mailing Address:(If different
from
premi ses address)
Type of license(s):
Tran sfero r's license/name:
Lic e nse Type
MR B S SUBS LLC
MRBS SUBS
74600 HIGHWAY 111
STE F
PALM D ESERT, CA 92260-3801
RIVERSID E
Yes
82711 LORDSBURG DR
INDI O , CA 92203-3852
41
Tran saction Typ e Master
41 -On-Sale Beer An d Wine -Eating P ORI y
Lic e nse Type
Applicat ion Fee
Ap pli cation Fee
Appli cation Fee
4 1 -On-Sale Beer An d Wine -Eat
Tran saction Description
STATE Fi r GERPR INTS
ADD PRI MARY LI CENSE TYPE
FEDERAL Fl GER PRI TS
ANNUAL FEE
Have yo u ever been co nv icted of a felony ? No
Fee Code
NA
NA
NA
NA
Census Tract: 0451.2 7
Droppin g Pa rtn er: Yes
Secondary LT A nd Count
Dup D ate Fee
2 06/06 /23 $78.00
0 06/06/23 $990.00
2 06/06/23 $48.00
0 06/06/23 $495.00
Total $1,6 11.0 0
Have you ever violated any pro v is ions of the Alcoho lic B everage Contro l Act, or regul ation s of the
Dep artm ent p erta ining to th e Act? No
STATE OF CA LIFORNIA Count y of RIVE RSIDE Da te: Jun e 6, 2023
Applicant Name(s)
MR BS SUBS LLC
0
~£ :2 Wd Z I Nnr £202
Page 189 of 851
Page 190 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
MICHELLE NANCE, DEPUTY CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department: __________________________ Date: ________________
Response:
No comment – okay to present to City Council.
Refer to ______________________________________ - related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Page 191 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
0,&+(//(1$1&(, '(387<CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department:__________________________Date:B _______________
Response:
No comment – okay to present to City Council.
Refer to______________________________________ related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
LA PRO Visions, Inc; LA PROVENCE PATISSERIE 72785 Hwy 111 Ste B1, Palm Desert, CA 92260
Tuesday, August 1, 2023.
July 25, 2023Development Services: Planning
✔
July 25, 2023
Page 192 of 851
Department of Alcoholic Beverage Control
APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE
ABC 211 (6/99)
State of California
TO:Department of Alcoholic Beverage Control
34 -160 GATEWAY DR.
STE 120
File Number: 649896
Receipt Number: 2817028
Geographical Code: 3318
PALM DESERT, CA 92211
(760) 324-2027
Copies Ma il ed Date: July 7, 2023
Issued Date :
DIS TRICT SERVING LOCATION: PALM DESERT
First Owner:
Name of Business:
Loc ation of Bus in ess:
County
Is Premises inside city limits
Mailing Address:(lf different
from
premi ses address)
Type of license(s):
Transferor's li ce nse/na me:
License Type
41 -On -Sale Beer And Wine -Eating
58 -Caterer Perm it
License Tvpe
Application Fee
Applicati on Fee
Applicati on Fee
58 -Caterer Permit
41 -On-Sale Beer And Wine -Ea
LAPRO VISIONS INC
LA PROVENCE PATISSERIE
72785 HIGHWAY 111
STE Bl
PALM DESERT, CA 92260-3343
RIVERSIDE
Yes
41,58
Tran sactio n Type Master
ORJ y
ORJ N
Transaction D escri ption Fee Code
FEDERAL Fl GERPRJNTS NA
STATE Fl GERP RJ TS NA
ADD PRJMARY LIC E SE TYPE NA
ANN UA L FEE NA
ANNUAL FEE NA
Have you eve r been convicted of a fe lony? No
Census Tract: 0451.16
Dropping Partner: Yes
Secondary LT And Count
58[ I J
Dup Date Fee
07 /07 /23 $24 .00
I 07 /07 /23 $39.00
0 07 /07/23 $990.00
I 07 /07/23 $250 .00
0 07 /07 /23 $495.00
Total $1 ,798.00
Have you ever violated any pro visions of the Alco holi c Beverage Control Act, or re g ul ati ons of the
Department pertaining to the Act? No
STATE OF CALIFORNIA
Applicant Name(s)
LAPRO V IS IONS INC
County of RIVE RSID E Date: Jul y 7 , 2023
No
Page 193 of 851
Page 194 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
MICHELLE NANCE, DEPUTY CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department: __________________________ Date: ________________
Response:
No comment – okay to present to City Council.
Refer to ______________________________________ - related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Page 195 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
0,&+(//(1$1&(, '(387<CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department:__________________________Date:B _______________
Response:
No comment – okay to present to City Council.
Refer to______________________________________ related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
CEC Entertainment; Chuck E Cheese's 72513 Hwy 111 Ste H Palm Desert, CA 92260
Tuesday, August 1, 2023.
July 25, 2023Development Services: Planning
✔
July 25, 2023
Page 196 of 851
Department of Alcoho lic Beverage Control State of California
APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE
ABC 2 11 (6/99)
TO:Department of Alcoholic Beverage Contro l
34-160 GATEWAY DR.
File Number: 649970
Receipt Number: 2817830
G eogra phical Code: 3318 STE 120
PALM DESERT, CA 92211
(760) 324-2027
Copies Mailed Date: July 11, 2023
Issued Date :
DISTRIC T S E RVING LOCATION : PALM DESERT
First Ow ner:
Name of Business:
Location of Business:
County
CEC ENTERT AINME T, LLC
CHUCK E CHEESE'S
72513 HIGHWAY 111
STEH
PALM DESERT, CA 92260-0800
RIVERSIDE
Is Premises inside city limits
Mailing Address :(lf different
from
Yes Census Tract: 0451.16
premi ses address)
Type of lic e nse(s):
1707 MARKET PLACE BLVD
STE 200
C/O LICENSI G DEPT
IRVING, TX 75063
41 Dropping Pa rtner: Yes
Transferor's lic e ns e/name: 348986 I CEC ENTERTAINMENT INC
Licen se Type Transaction Type
41 -On-Sale Beer And Win e -Eating PER
License Type
Application Fee
Application Fee
4 1 -On-Sale Beer And Wine -Ea
Tran sact ion Desc ripti o n
ISSUE TEMPORARY PERMIT
PERSON TO PERSON TRF
A UAL FEE
Have yo u ever been convicted of a felony? o
Master
y
Fee Code
NA
NA
NA
Secondary LT And Coun1
Dup Date Fee
07 /11 /23 $100 .00
0 07 /11/23 $365 .00
0 07 /1 1/23 $495.00
T o ta l $960 .00
Have you ever v iolated any pro v isions of the Alcoholic Beverage Con trol Act , or re gulation s of the
Department pertainin g to th e Act? o
STATE OF CA LIFORNIA County of RIVERSID E Date: Jul y 11 , 2023
Applicant Name(s)
CEC E TERT A INMENT, LLC
No
Page 197 of 851
Page 198 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
MICHELLE NANCE, DEPUTY CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department: __________________________ Date: ________________
Response:
No comment – okay to present to City Council.
Refer to ______________________________________ - related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Page 199 of 851
CITY OF PALM DESERT
CITY CLERK DEPARTMENT
INTEROFFICE MEMORANDUM
To:
From:
Date:
BUILDING AND SAFETY DIVISION AND PLANNING DIVISION
0,&+(//(1$1&(, '(387<CITY CLERK
Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY:
_____________________________________________________
A copy of the subject ABC License Application is attached for your review and
recommendation to the City Council or to another department(s) for further action. A
response is required. Please mark the appropriate response below and return to
my office by __________________________
Responding Department:__________________________Date:B _______________
Response:
No comment – okay to present to City Council.
Refer to______________________________________ related comments
(attach additional sheets, if necessary): _________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Other – Additional comments (attach additional sheets, if necessary):
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Palm Desert Harmany, Inc.; Pokehana 73405 Hwy 111 Ste 104 Palm Desert, CA 92260-3939
Tuesday, August 1, 2023.
July 25, 2023Development Services: Planning
✔
July 25, 2023
Page 200 of 851
Department of Alcoholic B eve ra ge Control State of California
APP LICATI O N F OR ALC O HOLIC BEVERAGE LICENSE(S)
ABC 2 11 (6/99)
T O:D ep artme nt of Alcoholic B everage Co ntrol
34-160 GATEWAY DR.
File umber: 64 9404
Recei pt Number: 28 11 548
Geographical Code: 33 18 STE 120
PALM DESERT, CA 92211
(760) 324-2027
Copies Mailed D ate: J un e 19, 2023
Iss u ed D ate:
DISTRICT SERVING LOCATION: PALM D ESERT
First Owner:
Name of Business :
Location of Busin ess:
County:
PALM D ESERT HARMONY INC
POKEHANA
73405 HWY 111
STE 10 4
PALM D ESERT, CA 92260-3939
RIVERSIDE
Is Premi ses inside city limits?
Mailing Address :(If different
from
Yes Cens us Tra ct: 0451.1 7
24115 COTTONWOOD A VE
APT B 18
premises address) MORENO VALLEY, CA 92553 -6227
Typ e of license(s): 41
Transferor's li cense/name : 583550 / ONO BRANDS INC
License Type Tran saction Ty pe
41 -On-Sale Bee r And Win e -Eating P PER
License Type
Appli ca ti o n Fee
4 1 -On-Sale Beer And Win e -Eat
Transaction D escripti on
PERSO TO PERSON TRF
A NNUAL FEE
Have you ever been convicted of a felony? o
Master
y
Fe e Co de
A
A
Dropping P artner: Yes
Secondary LT And Co unt
Dup Date Fee
0 06/1 9/23 $365 .00
0 06/19/23 $495.00
Total $860 .00
Have you ever vio lated any pro visions of the A lcoholi c Beverage Con trol Act, or regul ations of the
Dep artment pertaining to th e Act? No
STAT E OF CALIFORNIA County of RIVERSIDE Date: June 19 , 2023
Applicant Name(s)
PAL M D ESERT HARMONY IN C
No
,......, o = ...... -"'I c....>
> --<-:;:{"') ;%.I C: z ~,TT>
N Orn-,
co ,.,,~ :4 ..
'..fl-:; -rrl --< x» Difl :-"I. ::c :40
'-9 .,.,
o ...-.
0 ..,...-,,.,
,::, ,..,.,
Page 201 of 851
Page 202 of 851
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT
COMMITTEE, CULTURAL ARTS COMMITTEE, AND PARKS AND
RECREATION COMMITTEE
RECOMMENDATION:
With regret, accept the resignations of Anyse Smith from the Civic Engagement Committee;
Debra Norby (Alternate) from the Cultural Arts Committee; and James Henderson from the Parks
and Recreation Committee.
BACKGROUND/ANALYSIS:
Recently, it came to staff’s attention that several appointed body members may live outside of
City limits or are seasonal residents. The City Clerk staff verified appointed members ’ residency
and as a result discovered that Anyse Smith and Debra Norby reside outside of City limits. Upon
reaching out, these members voluntarily resigned upon learning of the City’s residency
requirements to serve on appointed bodies.
On June 13, 2023, the City Clerk’s Office issued a letter advising James Henderson, member of
the Parks and Recreation Committee, that he accrued four unexcused absences and pursuant
to the Palm Desert Municipal Code is subject to automatic resignation. The letter further informed
Mr. Henderson his resignation will be deemed automatic on June 29, 2023, unless he seeks and
is granted a waiver of unexcused absences from the Mayor. No such request was made.
On June 22, 2023, the City Council appointed Dan Rademacher as an alternate to the Parks
and Recreation Committee. On July 18, 2023, prior to his oath of office, Mr. Rademacher
informed staff he accepted another volunteer position and will not be able to serve on the
committee at this time.
As a result of these resignations, the Civic Engagement Committee has eight appointed members
(Civic Engagement Committee may have up to 12 members), the Cultural Arts Committee has no
vacancies and one alternate member, and the Parks and Recreation Committee has one vacancy.
FINANCIAL IMPACT:
There is no fiscal impact.
Page 203 of 851
Page 204 of 851
Page 1 of 3
PALM DESERT HOUSING AUTHORITY
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Jessica Gonzales, Housing Manager
REQUEST: HOUSING AUTHORITY: APPROVE A RESOLUTION AUTHORIZING THE
EXECUTION AND DELIVERY OF A HOUSING AND LOAN AGREEMENT
AND RELATED DOCUMENTS BETWEEN THE AUTHORITY AND A0358
MONTEREY, L.P., APPROVING A LOAN IN THE AMOUNT OF $7,235,000
FOR THE CONSTRUCTION OF 176 A
RECOMMENDATION:
1. Approve a Resolution authorizing the execution and delivery of a Loan Agreement, Deed of
Trust, Secured Promissory Note and Housing Agreement, in substantial form, between the
Palm Desert Housing Authority and A0358 Monterey, L.P., a California Limited Par tnership,
and approving a loan in the amount of Seven Million Two Hundred Thirty -Five Thousand
Dollars ($7,235,000.00) from the Authority’s Low and Moderate Income Housing Asset Fund
to fund the construction of One-Hundred Thirty Nine (139) of the One-Hundred Seventy Four
(174) affordable housing units comprising the proposed apartment project.
2. Authorize the Chairman and/or Executive Director, in consultation with legal counsel, to
execute as appropriate and deliver, for and in the name of the Authority, th e Loan Agreement,
Deed of Trust, Secured Promissory Note and Housing Agreement presented to the Authority
Board at this meeting, as the same may be modified by the Executive Director in consultation
with legal counsel to the Authority, provided such modifications are materially consistent with
the purpose of the Resolution.
3. Authorize the Chairman, the Executive Director, or their respective designees, in consultation
with legal counsel to the Authority, to execute and deliver, for and in the name of the
Authority, all other necessary or proper documents and instruments, and to do all things
which they may deem necessary or proper to effectuate the purposes of the Resolution.
BACKGROUND/ANALYSIS:
On July 14, 2022, the Palm Desert Housing Authority (“Author ity”), conditionally authorized and
approved a loan commitment to Urban Housing Communities (“UHC”), in the amount of seven
million two hundred thirty-five Thousand Dollars ($7,235,000.00) from the Authority’s Low and
Moderate Income Housing Asset Fund (“LMIHAF”) for the financing and construction of a 100%
affordable multi-family apartment community project that will consist of one hundred seventy four
(174) affordable units with two (2) on-site manager units in one phase (the “Project”).
UHC has been awarded an allocation in the application submittal of February 2023 and received
notification of such in June 2023. With the successful award to UHC, staff and legal counsel
have negotiated and prepared such agreements and documents, as are required to effec tuate
the Authority’s funding commitment for the Project. The documents consist of (i) a Loan
Agreement, (ii) a Secured Promissory Note, (iii) a Deed of Trust and (iv) a Housing Agreement,
each to be executed by A0358 Monterey, L.P., a California limited partnership, an affiliate of
Page 205 of 851
Palm Desert Housing Authority
Loan Agreement and Documents – Crossings at Palm Desert Apartments
Page 2 of 3
UHC and the developer of the Project and borrower under the Loan Agreement.
In 2022, the Authority and developer agreed to restrict one-hundred seventy-four (174) units to
80% AMI and below. However, due to the complexities of the State requirements for using the
LMIHAF money, it was determined that if the Authority restricts thirty-five (35) of the one-hundred
seventy-four (174) units to low income (households earning up to 80% AMI), the Project will
have an additional three million dollar ($3,000,000) financial gap as the State low-income rents
are significantly lower than the 80% AMI TCAC rents. Therefore, the Authority has agreed to
provide seven million two-hundred thirty-five thousand dollars ($7,235,000) of LMIHAF proceeds
to the Project to fund one hundred thirty-nine (139) of the one hundred seventy-four (174)
restricted units, which equates to approximately fifty-two thousand dollars ($52,000) per unit.
These units will be restricted for fifty-five (55) years as follows:
Unit Type Extremely Low Income 59% AMI Low Income Total Authority
Restricted Units
1-Bedroom Units 5 24 29
2-Bedroom Units 37 22 59
3-Bedroom Units 51 0 51
Total Units 93 46 139
It should be noted that one hundred seventy-four (174) units will be restricted by a TCAC
regulatory agreement with a term of fifty-five years (55). In addition, the City and the developer
will simultaneously enter into a Housing Agreement which will restrict the thirty-five (35) units not
restricted by the Authority (15 one-bedroom units, 19 two-bedroom units and 1 three-bedroom
unit) to households earning up to 80% AMI. As a result, the City will receive Regional Housing
Needs Assessment (“RHNA”) credit for ninety-three (93) extremely low-income units, nine (9)
very low-income units, seventy-low (72) low income units and two (2) above moderate income
units reserved for on-site property management; in addition to meeting the State requirements
for using the LMIHAF money to assist this Project.
Strategic Plan:
One of the priorities of the City of Palm Desert’s (“City”) Envision Palm Desert Strategic Plan, as
part of Land, Use, Housing and Open Space, is to facilitate development of high -quality housing
for people of all income levels. This request meets that objective by diversifying the City’s
housing stock for lower income households.
Page 206 of 851
Palm Desert Housing Authority
Loan Agreement and Documents – Crossings at Palm Desert Apartments
Page 3 of 3
FINANCIAL IMPACT:
The fiscal impact of this request is the loan itself in the amount of Seven Million Two Hundred
Thirty-Five Thousand Dollars ($7,235,000.00) from the Authority’s Low- and Moderate-Income
Housing Asset Fund, or $52,000 per Authority restricted unit. This is a one-time loan; funds are
available in Account Number 8734195-4663900. This transaction will not impact the City's
General Fund.
The developer’s sources of financing breakdown for the project are as follows:
ATTACHMENTS:
1. Palm Desert Housing Authority Resolution No. HA-______.
2. Housing Agreement
3. Loan Agreement
4. Secured Promissory Note
5. Deed of Trust
6. Notice of Affordability
7. Project Site Map
Funding Source Description Total Project Cost
Palm Desert Housing Authority Low- and
Moderate-Income Housing Asset Fund
Land Purchase and
Construction Cost $7,235,000
Tax-Exempt Bonds Permanent Loan $27,249,000
(4%) Federal Tax Credits Investor Equity $45,704,127
State Tax Credits Investor Equity $15,607,864
Housing Authority of the County of Riverside 87 Project Based
Vouchers $ 0
Developer Land Loan Repaid out of Residual
Receipts $3,866,666
Deferred Developer Fee 80% of Dev Fee $9,566,194
TOTAL $109,228,851
Page 207 of 851
Page 208 of 851
RESOLUTION NO. HA-___
A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY
APPROVING A HOUSING AND LOAN AGREEMENT AND RELATED
DOCUMENTS REGARDING CROSSINGS AT PALM DESERT
BETWEEN THE AUTHORITY AND A0358 MONTEREY, L.P., AND
TAKING RELATED ACTIONS
RECITALS:
A. Pursuant to AB X1 26 (enacted in June 2011) and the California Supreme Court’s
decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th
231 (2011), the former Palm Desert Redevelopment Agency (the “Former Agency”) was
dissolved as of February 1, 2012, the Successor Agency to the Palm Desert Redevelopment
Agency (the “Successor Agency”), as the successor entity to the Former Agency, was
constituted, and a board of the Successor Agency (the “Board”) was established.
B. AB X1 26 added Part 1.8 (commencing with Section 34161) and Part 1.85
(commencing with Section 34170) to Division 24 of the California Health and Safety Code
(“HSC”) (such Parts 1.8 and 1.85, including amendments and supplements enacted after AB X1
26, being referred to herein as the “Dissolution Act”).
C. Pursuant to HSC Section 34176(b), the City Council of the City of Palm Desert
(the “City”) adopted Resolution No. 2012-07, electing for the City to not retain the responsibility
for performing housing functions previously performed by the Former Agency, and determining
that all of the assets, as allowed by law, and all rights, powers, liabilities, duties, and obligations
associated with the housing activities of the Former Agency be transferred to the Palm Desert
Housing Authority (the “Authority”).
D. A0358 MONTEREY, L.P., a California limited partnership (the “Developer”), an
affiliate of Urban Housing Communities, Inc., a California corporation (“UHC”) intends to
construct on a +/-11.8-acre parcel comprised of APNs 694-130-017, 694-130-018, 694-130-019,
694-130-020 (the “Property”), located on Dick Kelly Drive, Palm Desert, a 176-unit multi-
family apartment community and known as the Crossings at Palm Desert Apartments for
households with incomes up to 80% of the area median income in one phase (the “Project”).
The Property is described in Exhibit “A”, attached hereto, and incorporated herein.
E. UHC submitted a funding request to the Authority to make a loan to UHC or its
affiliate designee in the amount of Seven Million Two Hundred Thirty-Five Thousand Dollars
($7,235,000.00) (the “Loan”) to assist in the construction of the Project. The Loan would be
disbursed by the Authority to pay for costs of the improvements (together with disbursements of
the construction loan proceeds of the senior construction lender). The Project is intended to be
funded by leveraging multiple funding sources including four percent (4%) tax exempt bonds,
federal tax credits, state tax credits, and the Loan.
F. The Authority, as the housing successor to the Former Agency, on July 13, 2022,
approved a Conditional Agreement regarding the Crossings at Palm Desert Apartments between
Page 209 of 851
RESOLUTION NO. HA-
-2-
P6401-0001\2849494v2.doc
the Authority and UHC (the “Conditional Loan Agreement”) which provides for the Authority
to make the Loan subject to the terms and conditions therein.
G. UHC submitted an application, including the Conditional Loan Agreement, to the
California Tax Credit Allocation Committee for an allocation of tax-exempt bonds, federal tax
credits and state tax credits as described in the Conditional Loan Agreement.
H. UHC successfully received and has provided proof of financing commitments
from all sources necessary to fund the entire Project and the Project is in the process of obtaining
a conditional grading and building and safety permit ready approval.
I. UHC has formed A0358 MONTEREY, L.P. to take title to the Property from
UHC and act as the borrower of the Loan and the developer of the Project.
NOW, THEREFORE, THE PALM DESERT HOUSING AUTHORITY DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The above recitals, and each of them, are true and correct and are a
substantive part of this Resolution.
Section 2. The Loan Agreement (“Loan Agreement”), and the Deed of Trust and
Assignment of Rents (“Deed of Trust”), Secured Promissory Note (“Note”) and Housing
Agreement (“Housing Agreement”), each attached to the Loan Agreement as Exhibits thereto,
are hereby approved in substantially the forms attached hereto as Exhibit “B”. The Executive
Director of the Authority is hereby authorized to execute, as appropriate, and deliver, for and in
the name of the Authority, the Loan Agreement, Deed of Trust, Note and Housing Agreement in
substantially the form attached hereto, with such changes thereto as the Executive Director, in
consultation with the Authority legal counsel, may deem appropriate or necessary and consistent
with the purposes of this Resolution (such approval to be conclusively evidenced by the
execution and/or delivery thereof).
Section 3. The Director of Finance is hereby authorized to appropriate Seven Million
Two Hundred Thirty-Five Thousand Dollars ($7,235,000.00) from the Unobligated Housing
Asset Fund Balance to the appropriate budget line item(s).
Section 4. The members of this Board, Executive Director and the staff of the
Authority are hereby authorized, jointly and severally, to do all things and to prepare, execute
and deliver such other documents and instruments which they may deem necessary or proper to
effectuate the purposes of this Resolution, and any such actions previously taken are hereby
ratified and confirmed.
Section 5. The Secretary shall certify the adoption of this Resolution and the same
shall take effect and be in force immediately.
Page 210 of 851
RESOLUTION NO. HA-
-3-
P6401-0001\2849494v2.doc
PASSED, APPROVED and ADOPTED on this 24th day of August, 2023, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
KATHLEEN KELLY, CHAIRMAN
ATTEST:
ANTHONY J. MEJIA, MMC,
SECRETARY
Page 211 of 851
RESOLUTION NO. HA-
-4-
P6401-0001\2849494v2.doc
[This page has intentionally been left blank.]
Page 212 of 851
EXHIBIT “A”
The Land referred to herein below is situated in the City of Palm Desert, County of Riverside,
State of California, and is described as follows:
PARCEL A AS SHOWN ON CERTIFICATE OF COMPLIANCE (WAIVER OF PARCEL
MAP PMW 06-03), AS EVIDENCED BY DOCUMENT RECORDED OCTOBER 25, 2006 AS
INSTRUMENT NO. 2006-0782511 OF OFFICIAL RECORDS, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
A PORTION OF PARCELS 1 AND 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED
OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, IN THE SOUTHWEST QUARTER (SW1/4) OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, CITY
OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE
CENTERLINE OF MONTEREY AVENUE; THENCE N89°58'35"E ALONG THE EAST-
WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE
NORTHERLY LINE OF PARCEL 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED
OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, A DISTANCE OF 1314.94 FEET TO
THE TRUE POINT OF BEGINNING;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W
1/4) SECTION LINE OF SAID SECTION 29, THE NORTHERLY LINE OF SAID PARCEL 2
AND CONTINUING ALONG THE NORTHERLY LINE OF PARCEL 1 OF SAID PARCEL
MAP WAIVER NO. 99-15, A DISTANCE OF 1314.61 FEET TO THE CENTER ONE
QUARTER (C1/4) CORNER OF SAID SECTION 29, SAID POINT BEING ALSO THE
NORTHEAST CORNER OF SAID PARCEL 1;
THENCE S00°09'04"E ALONG THE NORTH-SOUTH ONE QUARTER (N-S 1/4) SECTION
LINE OF SAID SECTION 29 AND THE EASTERLY LINE OF SAID PARCEL 1, A
DISTANCE OF 489.00 FEET TO THE NORTHEAST CORNER OF THAT PARCEL OF
LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT BY GRANT
DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 0308440, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S89°58'35"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 0308440, A DISTANCE OF 1270.59 FEET TO
THE NORTHWEST CORNER OF THAT PARCEL OF LAND DESCRIBED IN SAID
INSTRUMENT NO. 0308440, SAID POINT BEING ALSO A POINT ON A NON TANGENT
Page 213 of 851
RESOLUTION NO. HA-
-6-
P6401-0001\2849494v2.doc
CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1700.00 FEET AND
TO WHICH POINT A RADIAL LINE BEARS 576°44'54"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE, A
DISTANCE OF 392.48 FEET THROUGH A CENTRAL ANGLE OF 13°13'40";
THENCE N00°01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING.
EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11 (AVENUE 35)
AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE), ALL CONVEYED
TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS
INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE
CENTERLINES OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E
ALONG THE EAST-WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION
29 AND THE CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 1314.94 FEET TO
THE CENTERLINE INTERSECTION OF SAID AVENUE 35 AND GATEWAY DRIVE;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W
1/4) SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE
35, A DISTANCE OF 71.07 FEET; THENCE S00°01'25"E, A DISTANCE OF 54.00 FEET TO
THE SOUTHERLY LINE OF PARCEL NO. 2004-02.11 (AVENUE 35) CONVEYED TO THE
CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS
INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING 54.00 FEET SOUTHERLY OF
THE CENTERLINE OF SAID AVENUE 35, AS MEASURED AT RIGHT ANGLES
THERETO, SAID POINT BEING ALSO THE TRUE POINT OF BEGINNING;
THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-
02.11 (AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF CURVATURE OF
A CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 946.00 FEET;
THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF
SAID PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A
DISTANCE OF 220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A POINT
OF REVERSE CURVATURE OF A CURVE CONCAVE TO THE NORTHEAST, HAVING A
RADIUS OF 1054.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS
S13°19'14"W;
THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 185.57
FEET THROUGH A CENTRAL ANGLE OF 10°05'15";
Page 214 of 851
RESOLUTION NO. HA-
-7-
P6401-0001\2849494v2.doc
THENCE 552°30'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE OF PARCEL NO.
2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM DESERT BY GRANT
DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S00°09'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-02.12
("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF THAT
PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT
(P.S.U.S.D.) BY GRANT DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO.
2006-0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA;
THENCE 589°58'34"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 2006-0308440 (P.S.U.S.D.), A DISTANCE OF
1176.61 FEET TO THE EASTERLY LINE OF PARCEL NO. 2004-02.10 (GATEWAY
DRIVE) CONVEYED TO THE CITY OF PALM SPRINGS BY GRANT DEED, RECORDED
JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ALSO A POINT
ON A NON-TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS
OF 1646.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S76°15'06"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE EASTERLY LINE OF
SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE) AND THE ARC OF SAID CURVE, A
DISTANCE OF 392.80 FEET THROUGH A CENTRAL ANGLE OF 13°40'23";
THENCE N00°04'31"W ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-02.10
(GATEWAY DRIVE), A DISTANCE OF 28.94 FEET TO THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35);
THENCE N44°57'02"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-
02.11 (AVENUE 35), A DISTANCE OF 24.05 FEET TO THE POINT OF BEGINNING.
APN: 694-130-017 (Affects a portion of the land);
694-130-018 (Affects a portion of the land);
694-130-019 (Affects a portion of the land); and
694-130-020 (Affects a portion of the land)
Page 215 of 851
EXHIBIT “B”
FORMS OF LOAN AGREEMENT, DEED OF TRUST
NOTE AND HOUSING AGREEMENT
Page 216 of 851
DRAFT
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Jessica Gonzales
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
This Document is recorded for the benefit of the Palm Desert Housing Authority and is exempt from
recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.
HOUSING AGREEMENT
(LMIHF Funds)
by and between
the PALM DESERT HOUSING AUTHORITY,
and
A0358 MONTEREY, L.P.
A CALIFORNIA LIMITED PARTNERSHIP
DATED AS OF _________ ____, 2023
Page 217 of 851
ARTICLE 1. DEFINITIONS AND INTERPRETATION .................................................................... 1
1.1 Definitions ................................................................................................................... 1
1.2 Rules of Construction .............................................................................................. 3
ARTICLE 2. ONGOING PROJECT OBLIGATIONS .......................................................................... 3
2.1 Project and Affordable Units ................................................................................. 3
2.2 Residential Rental Property ................................................................................... 4
2.3 Extremely Low and 59% AMI Low Income Households ............................. 4
2.4 Affordable Rent ......................................................................................................... 5
2.5 Rent Increases ............................................................................................................ 5
2.6 Income Recertification of Affordable Units ...................................................... 5
2.7 Lease or Occupancy Agreement ........................................................................... 6
2.8 Security Deposits ...................................................................................................... 6
2.9 Additional Information ............................................................................................ 6
2.10 Specific Performance ............................................................................................... 7
2.11 Audit ............................................................................................................................. 7
2.12 Management ............................................................................................................... 7
2.13 Management Contract .............................................................................................. 7
2.14 Binding for Term....................................................................................................... 9
ARTICLE 3. TERM AND RECORDATION .......................................................................................... 9
3.1 Term of Agreement .................................................................................................. 9
3.2 Agreement to Record ............................................................................................... 9
3.3 Suspension of Restrictions ..................................................................................... 9
ARTICLE 4. DEFAULT ................................................................................................................................. 9
4.1 An Event of Default ................................................................................................. 9
4.2 Option to Lease ........................................................................................................ 10
4.3 Authority Remedies ................................................................................................ 10
Page 218 of 851
TABLE OF CONTENTS (cont’d)
Page
-3-
P6401-0001\2851004v1.doc
P6401-0001\2815992v7.doc
4.4 Action at Law ........................................................................................................... 10
ARTICLE 5. GENERAL PROVISIONS ................................................................................................. 11
5.1 Limitations on Recourse ....................................................................................... 11
5.2 Maintenance, Repair, Alterations ....................................................................... 11
5.3 Notices ........................................................................................................................ 11
5.4 Relationship of Parties ........................................................................................... 12
5.5 No Claims .................................................................................................................. 12
5.6 Conflict of Interests ................................................................................................ 13
5.7 Non-Liability of Officials, Employees and Agents ....................................... 13
5.8 Unavoidable Delay ................................................................................................. 13
5.9 Indemnity................................................................................................................... 13
5.10 Rights and Remedies Cumulative ...................................................................... 13
5.11 Applicable Law ........................................................................................................ 14
5.12 Severability ............................................................................................................... 14
5.13 Legal Actions ........................................................................................................... 14
5.14 Binding Upon Successors ..................................................................................... 14
5.15 Time of the Essence ............................................................................................... 14
5.16 Approval by the Authority ................................................................................... 14
5.17 Complete Understanding of the Parties ............................................................ 14
5.18 Covenants to Run With the Land ....................................................................... 14
5.19 Burden and Benefit ................................................................................................. 15
5.20 Counterparts ............................................................................................................. 15
5.21 Amendments ............................................................................................................. 15
Page 219 of 851
TABLE OF CONTENTS (cont’d)
Page
-4-
P6401-0001\2851004v1.doc
P6401-0001\2815992v7.doc
EXHIBIT A Description of Property
EXHIBIT B Income Certification
EXHIBIT C Certificate of Continuing Compliance
EXHIBIT D 2023 Rental Rates
Page 220 of 851
HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the “Agreement”) is dated as of ______________ ___,
2022, and is by and between the PALM DESERT HOUSING AUTHORITY, a public body,
corporate and politic (the “Authority”), and A0358 MONTEREY, L.P., A CALIFORNIA
LIMITED PARTNERSHIP (the “Owner”). Authority and Owner are sometimes referred to
herein individually as a “Party” and collectively as “Parties”.
RECITALS
This Agreement is predicated upon the following facts:
A. The Owner owns the property located in the City of Palm Desert, County of
Riverside, State of California (“City”), more particularly described on Exhibit “A” attached hereto
(“Site”).
B. Owner has entered into a Loan Agreement (“Loan Agreement”) even date herewith
with the Authority which contemplates that the Authority, as successor to the housing assets of the
former Palm Desert Redevelopment Agency, shall make a Seven Million Two Hundred Thirty-
Five Thousand Dollars ($7,235,000.00) construction loan (“Loan”) to Owner using moneys in the
Authority’s low and moderate income housing asset fund to pay certain construction costs of the
One Hundred Seventy-Six (176) unit apartment project described in the Loan Agreement
(“Project”). The Loan Agreement requires that Owner execute and record this Agreement against
the Site and Project, and provides that an uncured default under this Agreement shall constitute a
default under the Loan Agreement and shall entitle the Authority to accelerate the maturity date of
the Loan.
C. This Agreement shall not be subordinate or subordinated to any deeds of trust or
other liens encumbering the Site or Project.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Authority and the Owner hereby agree as follows:
ARTICLE 1. DEFINITIONS AND INTERPRETATION.
1.1 Definitions.
Capitalized terms used herein shall have the following meanings unless the context
in which they are used clearly requires otherwise.
“Affordable Units” shall mean 139 of the 176 units in the Project available to and occupied
by, or held vacant for occupancy only by, Extremely Low Income Households and 59% AMI Low
Income Households, and rented at an Affordable Rent. Specifically, the Affordable Units consist
of 93 units for Extremely Low Income Households and 46 units for 59% AMI Low Income
Households. The Affordable Units will include the number of bedrooms shown on the following
table:
Bedroom
Size
Extremely
Low
Income
59% AMI
Low
Income
Page 221 of 851
-6-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Household
Affordable
Units
Household
Affordable
Units)
One 5 24
Two 37 22
Three 51 -0-
Total 93 46
“Affordable Rent” shall mean rent for an Affordable Unit, including a Reasonable Utility
Allowance, determined pursuant to California Health and Safety Code Section 50053(b) and the
state regulations adopted by the California Department of Housing and Community Development
(“HCD”) pursuant thereto, as amended from time to time, based upon the AMI adjusted for a
Household Size Appropriate to the Affordable Unit. More specifically, (1) for each of the 93
Affordable Units reserved for Extremely Low Income Households, the maximum monthly
Affordable Rent, including a Reasonable Utility Allowance, may not exceed thirty percent (30%)
of thirty percent (30%) of the AMI, adjusted for a Household Size Appropriate to the Affordable
Unit, divided by twelve, and (2) for each of the 46 Affordable Units reserved for 59% AMI Low
Income Households, the maximum monthly Affordable Rent, including a Reasonable Utility
Allowance, may not exceed thirty percent (30%) of fifty-nine percent (59%) of the AMI, adjusted
for a Household Size Appropriate to the Affordable Unit, divided by twelve.
“AMI” shall mean the area median income for Riverside County as published by the
California Department of Housing and Community Development pursuant to Health and Safety
Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state
regulations adopted pursuant to California Health and Safety Code Section 50052.5, provided,
however, that at any time the Project is subject to a CTCAC extended use agreement, CTCAC’s
rules and regulations regarding area median income shall control.
“CTAC” means the California Tax Credit Allocation Committee.
“Extremely Low Income Household” shall mean persons and families whose income
does not exceed the qualifying limit for extremely low income households set forth in California
Health and Safety Code Section 50106 and Title 25 of the California Code of Regulations, as such
statute and regulations may be amended from time to time.
“Household Size Appropriate to the Affordable Unit” shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h), as amended from time to time.
“59% AMI Low Income Household” shall mean persons and families whose income
does not exceed the qualifying limit for lower income households as set forth in California Health
and Safety Code Section 50079.5 and Title 25 of the California Code of Regulations, including
Section 6912, as such statute and regulations may be amended from time to time; provided that
the qualifying limit is capped at 59% AMI.
“Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a
tenant (not including telephone, internet or cable service) utilizing the utility allowance schedule
Page 222 of 851
-7-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
published annually by the Housing Authority of the County of Riverside or as calculated using the
California Utility Allowance Calculator developed by the California Energy Commission and
approved by CTCAC.
“Required Covenant Period” shall mean the period commencing on the date all units in
the Project have been completed as evidenced by the City’s issuance of a final Certificate of
Occupancy for the Project, and ending as of the fifty-fifth (55th) anniversary thereof.
1.2 Rules of Construction.
1.2.1 The singular form of any word used herein, including the terms defined
herein shall include the plural and vice versa. The use herein of a word of any gender shall include
correlative words of all genders.
1.2.2 Unless otherwise specified, references to articles, sections, and other
subdivisions of this Agreement are to the designated articles, sections, and other subdivisions of
this Agreement as originally executed. The words “hereof,” “herein,” “hereunder,” and words
of similar import shall refer to this Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to effectuate the
purposes set forth in this Agreement and to sustain the validity hereof.
1.2.4 Headings or titles of the several articles and sections hereof and the table of
contents appended to copies hereof shall be solely for convenience of reference and shall not affect
the meaning, construction, or effect of the provisions hereof.
ARTICLE 2. ONGOING PROJECT OBLIGATIONS.
2.1 Project and Affordable Units.
The Owner shall develop and construct the Project on the Site in conformity with
the applicable governmental permits, approvals and the Loan Agreement. Thereafter, during the
Required Covenant Period, the Owner agrees that not less than 139 units in the Project shall be
Affordable Units, meaning that (a) 93 of such units shall be continually available to and occupied
by, or held vacant for occupancy only by, Extremely Low Income Households and (b) 46 of such
units shall be continually available to and occupied by, or held vacant for occupancy only by, 59%
AMI Low Income Households, and the Owner shall use good faith efforts to give preference to
military veterans. All of the rental units in the Project shall be similarly constructed and generally
constructed at the same time. All of the rental units in the Project shall be of comparable quality.
The Owner agrees that, to the extent commercially reasonable, Affordable Units will not be
underutilized. No persons shall be permitted to occupy any Affordable Unit in excess of the
applicable limit of maximum occupancy set by the City’s Municipal Code and the laws of the State
of California, or by Authority Resolution HA-84 adopted on December 14, 2017.
Page 223 of 851
-8-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
2.2 Residential Rental Property.
The Owner covenants to operate the Project as residential rental property. During
the Required Covenant Period, the Affordable Units will be held and used for the purpose of
providing residential living, and the Owner shall own, manage and operate, or cause the
management and operation of, the Project to provide such affordable rental housing. All of the
rental units in the Project with the exception of two (2) two-bedroom manager units will be
available for rental on a continuous basis to members of the general public and the Owner will not
give preference to any particular class or group in renting the units in the Project, except for the
above good faith preference for military veterans, and except as required under any other required
regulatory agreement for the Project. The Owner shall not convert any Affordable Unit(s) to
condominiums or cooperative ownership or sell condominium or cooperative conversion rights to
any Affordable Unit(s) during the term of this Agreement.
2.3 Extremely Low and 59% AMI Low Income Households.
2.3.1 Income Qualification; Initial Certification. Subject to the applicable
provisions hereof, throughout the Required Covenant Period, Affordable Units will be exclusively
occupied by, or available for occupancy only by, Extremely Low and 59% AMI Low Income
Households as described above. Prior to the rental or lease of an Affordable Unit and in accordance
with Section 2.6 hereof, the Owner will obtain and maintain on file a Household Income
Certification (“Income Certification”) substantially in the form attached hereto as Exhibit “B”
and incorporated herein by this reference for each Extremely Low and 59% AMI Low Income
Household, as applicable, and shall provide copies of same to the Authority at such times as the
Authority may, from time to time, reasonably require. In addition, the Owner will provide such
further information as may reasonably be required in the future by the Authority. The Income
Certification shall be dated immediately prior to the applicable household’s initial occupancy of
an Affordable Unit. The Owner shall make a good faith effort to verify that the income provided
by an applicant in an Income Certification is accurate by taking any one or more of the following
steps as part of the verification process for all household members over the age of eighteen (18) as
appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods;
(ii) Obtain a true copy of an income tax return for the most recent tax
year in which a return was filed;
(iii) Obtain an income verification form from the household member’s
current employer;
(iv) Obtain an income verification form from the Social Security
Administration and/or the State Department of Social Services, or its equivalent, if the household
member receives assistance from either of those agencies;
(v) If the household member is unemployed and has no tax return,
obtain another form of independent verification; or
Page 224 of 851
-9-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
(vi) Obtain such other documentation as may be reasonably acceptable
pursuant to Title 25 of the California Code of Regulations or CTCAC, as amended from time to
time, to verify income.
2.3.2 Certificate of Continuing Program Compliance; Annual Report; Annual
Monitoring/Administration Fee. Throughout the Required Covenant Period, the Owner will
prepare and submit to the Authority, at such periodic frequency as the Authority might reasonably
require, but not more than once annually, a Certificate of Continuing Compliance in substantially
the form attached hereto as Exhibit “C” and incorporated herein by this reference, and executed
by the Owner. The Owner will also prepare and submit to the Authority on or before each
anniversary date of the commencement of the Required Covenant Period, and for the preceding
calendar year, a report in form and substance reasonably satisfactory to the Authority summarizing
the vacancy rate of the Project, including the number of Affordable Units held vacant for
occupancy by Extremely Low and 59% AMI Low Income Households for such calendar year,
including the number of Affordable Units rented to military veterans. Owner shall pay an annual
monitoring/administration fee in the amount of Ten Thousand Dollars ($10,000.00), increasing by
three percent (3%) annually, from Owner’s share of Project Net Cash Flow, (as defined in the Loan
Agreement), concurrently with Owner’s payments of Project Net Cash Flow to Authority under
the Authority Loan.
2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent
shall be charged to the Extremely Low and 59% AMI Low Income Household occupants of
Affordable Units, as more specifically described above.
2.5 Rent Increases. Rents for Affordable Units may be increased not more than once
per year and twelve (12) months must have elapsed since the date of the tenant’s initial occupancy
or the last rent increase. The rents charged following such an increase, or upon a vacancy and new
occupancy by an Extremely Low or 59% AMI Low Income Household, as applicable, shall not
exceed the applicable Affordable Rent. The Owner shall, consistent with applicable law, give
proper written notice to tenants of all rent increases, and upon written request, provide the
Authority with reasonable detail concerning the amount of and rationale for such rent increases.
2.6 Income Recertification of Affordable Units. Annually, on the anniversary date of
occupancy of an Affordable Unit by an Extremely Low or 59% AMI Low Income Household, as
applicable, the Owner shall obtain and maintain on file an annual income certification, in form and
substance reasonably satisfactory to the Authority (but CTCAC’s required form of income
certification shall be deemed satisfactory, together with any other information reasonably
requested by the Executive Director of the Authority), from each household occupying an
Affordable Unit, based upon the current income of each household member over the age of
eighteen (18). The Owner shall make a good faith effort to verify that the income provided by the
household is accurate in accordance with Section 2.3.1, above.
2.6.1 A rental unit occupied by a household that qualifies as an Extremely Low
or 59% AMI Low Income Household at the time the household first occupies an Affordable Unit
shall be deemed to continue to be so occupied until a recertification of such household’s income
demonstrates that such household no longer qualifies as an Extremely Low or 59% AMI Low
Income Household, as applicable. At such time as a household ceases to qualify as an Extremely
Page 225 of 851
-10-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Low or 59% AMI Low Income Household, as applicable, based on income recertification, such
Affordable Unit shall continue to be treated as a qualifying household for purposes of Owner’s
compliance with this Agreement, provided, however, that the Owner shall designate the next
available unit (one that is not occupied by a tenant) with the same number of bedrooms as the
occupied Affordable Unit and it shall be leased to an Extremely Low or 59% AMI Low Income
Household, as applicable, so that the number of Affordable Units occupied by or reserved for
occupancy by Extremely Low or 59% AMI Low Income Households will remain constant. For
purposes of this Agreement, such designated unit will be considered an Affordable Unit if it is held
vacant and available solely for occupancy by an Extremely Low or 59% AMI Low Income
Household, as applicable, and, upon occupancy, the income eligibility of the household as an
Extremely Low or 59% AMI Low Income Household is verified and the unit is rented at the
applicable Affordable Rent.
2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit
to an Extremely Low or 59% AMI Low Income Household, the Owner shall require the tenant to
execute a written lease or occupancy agreement. The Owner shall maintain on file throughout the
Required Covenant Period and for a four (4) year period thereafter, the executed lease or
occupancy agreement of each tenant occupying an Affordable Unit. The form of lease or
occupancy agreement used by the Owner for the lease or rental of Affordable Units shall be that
which is reasonable and customary in affordable residential leasing. In addition, each lease or
occupancy agreement for an Affordable Unit shall (i) provide that the tenants of such Affordable
Unit shall be subject to annual recertification of income and subject to rental increases in
accordance with Sections 2.5 and 2.6 of this Agreement, and (ii) contain a provision to the effect
that the Owner has relied on the income certification and supporting information supplied by the
tenant in determining qualification for occupancy of the Affordable Unit, and that any material
misstatement in such certification (whether or not intentional) may be cause for immediate
termination of such lease or occupancy agreement.
2.7.1 The Owner shall refrain from restricting the rental or lease of Affordable
Units on the basis of race, color, religion, sex, marital status, disability, ancestry or national origin
of any person.
2.7.2 The covenants established herein shall, without regard to technical
classification and designation, be binding for the benefit and in favor of the Authority, and its
successors and assigns, and shall burden and run with the Site.
2.7.3 The Authority is deemed to be the beneficiary of the terms and provisions
of the covenants herein, both for and in its own right and for the purposes of protecting the interests
of the community and other parties, public or private, for whose benefit these covenants running
with the land have been provided.
2.8 Security Deposits. The Owner may require security deposits on Affordable Units
in amounts which are consistent with applicable law.
2.9 Additional Information; Books and Records. The Owner shall provide any
additional information concerning the Affordable Units reasonably requested by the Authority.
The Owner will maintain complete and accurate records pertaining to the Affordable Units
throughout the Covenant Period and for a four (4) year period thereafter. The Authority shall have
Page 226 of 851
-11-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
the right upon written notice of no less than two (2) business days to the Owner, at any time during
normal business hours of 9:00 am to 5:00 pm, to examine of all books, records or other documents
maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit,
including all executed leases or occupancy agreements and all Income Certifications, and obtain
copies of any requested executed leases, occupancy agreements and Income Certifications within
ten (10) business days following such examination and the Authority’s written request.
2.10 Specific Performance. The Owner hereby agrees that specific enforcement of the
Owner’s agreement to comply with the allowable rent and occupancy restrictions and covenants
contained herein is one of the reasons and consideration for the Authority having entered into the
Loan Agreement, and that, in the event of the Owner’s breach of such requirements, potential
monetary damages to the Authority, as well as to existing and prospective Extremely Low or 59%
AMI Income Households, would be difficult, if not impossible, to evaluate and quantify.
Therefore, in addition to any other relief to which the Authority may be entitled as a consequence
of the breach hereof, the Owner agrees to the imposition of the remedy of specific performance
against it in the case of any event of default by the Owner in complying with any provision of this
Agreement beyond any applicable notice and cure period.
2.11 Audit. The Authority shall have the right to perform an audit of the Project to
determine compliance with the provisions of this Agreement. Such audit shall not be undertaken
more often than once each calendar year. All costs and expenses associated with the audit shall
be paid by the Owner.
2.12 Management. The Owner and/or the management agent (if not the Owner) shall
operate the Project in a manner that will provide decent, safe and sanitary residential facilities to
the occupants thereof, and will comply with provisions of this Agreement. Upon the written
request of the Authority, the Owner shall cooperate with the Authority in the periodic review (but
not more than once each calendar year) of the management practices and financial status of the
Affordable Units, which shall include a description of the means by which preference is given in
good faith to military veterans. The purpose of each periodic review will be to enable the Authority
to determine if the Affordable Units are being operated and managed in accordance with the
requirements and standards of this Agreement. Results of such Authority review shall be provided
to the Owner, and, if the Authority finds evidence of material noncompliance the Authority shall
have the right to require the Owner to make modifications that are reasonably necessary to ensure
the objectives of this Agreement are met.
2.13 Management Contract. The Owner shall cause the Project to be managed in a
prudent and business-like manner, consistent with good property management standards for other
comparable high quality, well-managed affordable rental housing projects in the City of Palm
Desert. The Owner shall be responsible for all repair and maintenance functions of the Project,
including ordinary maintenance and replacement of capital items. The Owner shall ensure
maintenance of units and common areas in accordance with local health, building and housing
codes. The Owner shall contract with an experienced property management company or property
manager, to operate and maintain the Project (“Property Manager”). Such contract shall be subject
to prior written approval by the Authority and shall contain a provision allowing the Owner to
terminate the contract without penalty upon no more than thirty (30) days' notice.
Page 227 of 851
-12-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
The Owner will develop a management plan and submit such plan to the Authority for
reasonable approval (the “Property Management Plan”). The Property Management Plan shall
include the following:
a. The role and responsibility of the Owner and its delegation of authority, if
any, to the Property Manager;
b. Personnel policy and staffing arrangements, including ongoing training of
staff in best practices for serving the Project tenants;
c. Plans and procedures for publicizing and achieving early and continued
occupancy;
d. Procedures for determining tenant eligibility, and selecting tenants, and for
certifying and annually recertifying household status, income and size;
e. Plans for carrying out an effective maintenance and repair program;
f. Rent collection policies and procedures;
g. Plans for enhancing tenant-management relations;
h Appeal and grievance procedures; and
i. Description of how service staff and property management staff will work
together to prevent evictions and to facilitate the implementation of reasonable accommodation
policies.
Upon a determination by the Authority that the Property Manager has failed to operate the
Project in accordance with the Property Management Plan, the Authority shall provide written
notice to the Owner specifying the Property Manager's breach of the Property Management Plan
and providing the Owner with thirty (30) days to cure the specified breach. If the Owner shall fail
to cure the specified breach within such thirty (30) day despite its good faith effort to do so, and if
such cure is of the nature to take longer than thirty (30) days, the Owner shall commence the cure
during the thirty (30) day period and complete the cure by the conclusion of one hundred eighty
(180) days following the Owner’s receipt of the Authority’s notice, or in such other time period as
the parties may mutually agree. If the Owner has failed to cure the breach of the Property
Management Plan by the expiration of the relevant cure period, the Authority may immediately
provide a written notice of such failure to the Owner and the Owner shall promptly terminate the
existing Property Manager and contract with an alternative qualified management agent reasonably
acceptable to the Authority to operate the Project, or to make such other arrangements as the
Authority deems reasonably necessary to ensure performance of the functions and obligations set
forth in Property Management Plan.
Notwithstanding the foregoing, any change in property management must also be approved
by California Debt Limit Allocation Committee (CDLAC), California Tax Credits (CTAC), and
the lenders and investors involved in the Project if required by such parties.
Page 228 of 851
-13-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
2.14 Binding for Term. It is intended by the Parties that except as otherwise expressly
provided herein, the provisions of this Agreement shall apply to the Project throughout the entire
term hereof, as established in Section 3.1 below.
ARTICLE 3. TERM AND RECORDATION.
3.1 Term of Agreement. This Agreement shall remain in full force and effect for the
Required Covenant Period, unless the Owner and the Authority agree, in writing, to terminate this
Agreement prior to the expiration of the Required Covenant Period. Unless terminated earlier
pursuant to the prior sentence of this Section 3.1, the Parties intend that the provisions and effect
of this Agreement and specifically of Article 2 hereof, shall remain in full force and effect for the
entire Required Covenant Period.
3.2 Agreement to Record. The Owner represents, warrants, and covenants that this
Agreement will be recorded in the real property records of Riverside County.
3.3 Suspension of Restrictions. Notwithstanding the generality of the foregoing
provisions of this Article 3 or any other provisions hereof, this Agreement and all of the terms and
restrictions contained herein shall be suspended for any period of involuntary noncompliance as a
result of unforeseen events such as fire or act of God which leaves the entire Project uninhabitable
(and the proceeds of insurance available to the Owner as a result thereof are insufficient to
reconstruct the Project), or a change in a federal or state law or an action by the federal government,
the State or a court of competent jurisdiction, after the date of recordation hereof, that prevents the
Authority from enforcing the provisions of this Agreement, or a condemnation or a similar event.
ARTICLE 4. DEFAULT; REMEDIES.
4.1 An Event of Default. Each of the following shall constitute an “Event of Default”
by the Owner under this Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any of the
conditions, terms, or covenants of any agreement with the Authority concerning the Project, or of
this Agreement, if such failure remains uncured thirty (30) days after written notice of such failure
from the Authority to the Owner in the manner provided herein or, with respect to a default that
cannot be cured within thirty (30) days, if the Owner fails to commence such cure within such
thirty (30) day period or thereafter fails to diligently and continuously proceed with such cure to
completion. However, if a different period or notice requirement is specified under any other
section of this Agreement, then the specific provision shall control.
4.1.2 Any representation or warranty contained in this Agreement or in any
application, financial statement, certificate, or report submitted by the Owner to the Authority
proves to have been incorrect in any material respect when made.
4.1.3 A court having jurisdiction shall have made or rendered a decree or order:
(i) adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition
seeking reorganization of the Owner or seeking any arrangement on behalf of the Owner under the
bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any
state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner
Page 229 of 851
-14-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or
liquidation of the Owner, providing, however, that any such decree or order described in any of
the foregoing subsections shall have continued unstayed or undischarged for a period of ninety
(90) days.
4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or
suffered a sequestration or attachment or execution on any substantial part of its property, unless
the property so assigned, sequestered, attached, or executed upon shall have been returned or
released within ninety (90) days after such event (unless a lesser time period is permitted for cure
hereunder) or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner
is diligently working to obtain a return or release of the property and the Authority’s and the
Authority’s interests hereunder are not imminently threatened in its reasonable business judgment,
then the Authority shall not declare a default under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or dissolved.
4.1.6 The seizure or appropriation of all or, in the reasonable opinion of the
Authority, a substantial part of the Project, except for condemnation or similar event initiated by
the Authority or any other governmental agency or authority.
4.1.7 There should occur any default declared by any lender under any loan
document or deed of trust relating to any loan made in connection with the Project, which loan is
secured by a deed of trust or other instrument affecting the Project, and such default remains
uncured following the expiration of any applicable cure period.
4.2 Option to Lease. Upon the occurrence and during the continuance of an Event of
Default, to cause the Project to meet the requirements of this Agreement, the Owner hereby grants
to the Authority the option to lease up to all of the Affordable Units as necessary to achieve
compliance with the provisions of Article 2 of this Agreement and for the purpose of subleasing
such units in accordance with the requirements of this Agreement. The amount of rental to be paid
for such rental units following the exercise of the option by the Authority shall be equal to the
applicable Affordable Rent. Any rental paid under any such sublease shall be paid to the Authority
without obligation to pay any such rent to the Owner during the pendency of the Owner’s default.
Upon acceptance by the Authority of a cure by Owner or by owner’s limited partner, any lease for
Affordable Units with the Authority shall terminate and the Authority shall assign all subleases to
Owner.
4.3 Authority Remedies. The Authority shall have the right to mandamus or other suit,
action or proceeding at law or in equity to require the Owner to perform its obligations and
covenants under this Agreement or to enjoin acts or things which may be unlawful or in violation
of the provisions hereof, provided that in any such case the Authority has first provided the
required notice of any alleged default and the Owner has had the requisite opportunity to cure
pursuant to Section 4.1.1, above.
4.4 Action at Law; No Remedy Exclusive. The Authority may take whatever action at
law or in equity as may be necessary to enforce performance and observance of any obligation,
agreement or covenant of the Owner under this Agreement. No remedy herein conferred upon or
reserved by the Authority is intended to be exclusive of any other available remedy or remedies,
Page 230 of 851
-15-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
but each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law, in equity or by statute. No delay
or omission to exercise any right or power accruing upon any default shall impair any such right
or power or shall be construed to be a waiver of such right or power, but any such right or power
may be exercised from time to time and as often as the Authority may deem expedient. In order
to entitle the Authority to exercise any remedy reserved to it in this Agreement, it shall not be
necessary to give any notice, other than such notice as may be herein otherwise expressly required
or required by law to be given.
ARTICLE 5. GENERAL PROVISIONS.
5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in
this Agreement, except in the event of fraud, intentional waste, or illegal acts, or with regard to
any indemnity obligations imposed upon the Owner under the terms of this Agreement, (i) no
partner, member, officer or director, as applicable, of the Owner (each, an “Owner Affiliate”)
shall have any direct, indirect or derivative personal liability for the obligations of the Owner under
this Agreement, and (ii) the Authority shall not exercise any rights or institute any action against
any Owner Affiliate directly, indirectly or derivatively for the payment of any sum of money that
is or may become payable hereunder.
5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the
Project in good condition and repair and in a prudent and businesslike manner. The Owner shall
comply with all laws, ordinances, rules, regulations, covenants, conditions, restrictions, and orders
of any governmental authority now or hereafter affecting the conduct or operation of the Project
or any part thereof or requiring any alteration or improvement to be made thereon. The Owner
shall not commit, suffer, or permit any act to be done in, upon, or to the Project or any part thereof
in violation of any such laws, ordinances, rules, regulations, or orders. The Owner hereby agrees
that the Authority may conduct from time to time (but not more than once per calendar year unless
an Event of Default is ongoing) through representatives, upon reasonable notice of no less than
forty-eight (48) hours and subject to the rights of tenants, on-site inspections and observation of:
(i) the maintenance and repair of the Project, including a review of all maintenance and repair
programs and practices and all reports and records pertaining thereto, including records of
expenditures relating thereto; and (ii) such other facilities, practices, and records of the Owner
relating to the Affordable Units as the Authority reasonably deems to be necessary or appropriate
in order to monitor the Owner’s compliance with the provisions of this Agreement.
5.3 Notices. All notices (other than telephone notices), certificates or other
communications (other than telephone communications) required or permitted hereunder shall be
sufficiently given and should be deemed given when personally delivered, when sent by telegram,
or when sent by facsimile (if confirmed by sending a copy of such transmission by mail the same
calendar day), or forty-eight (48) hours following mailing by registered or certified mail, postage
prepaid, or twenty-four (24) hours following transmission of such notice by express mail, Federal
Express or similar commercial carrier, addressed as follows:
Page 231 of 851
-16-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
If to the Authority:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Housing Division
Phone: (760) 346-0611
Fax: (760) 341-6372
If to the Owner:
A0358 Monterey, L.P.
2000 East 4th Street, Suite 205
Santa Ana, CA 92705
Attn: Mark Bigley
Phone: (714) 323-4006
Email: mbigley@uhcllc.net With a copy to:
Sabelhaus & Strain, LLP
1724 10th Street, Suite 110
Sacramento, CA 95811
Attn: Stephen A. Strain, Esq.
Phone: (916) 444-0286
Email: sstrain@sabelhauslaw.com
5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted
or understood by any of the Parties, or by any third persons, as creating the relationship of
employer and employee, principal and agent, limited or general partnership, or joint venture
between the Authority and the Owner or the Owner’s agents, employees or contractors, and the
Owner shall at all times be deemed an independent contractor and shall be wholly responsible for
the manner in which it or its agents, or both, perform the services required of it by the terms of this
Agreement for the operation of the Project. The Owner has and hereby retains the right to exercise
full control of employment, direction, compensation and discharge of all persons assisting in the
performance of services hereunder. In regards to the on-site operation of the Project, the Owner
shall be solely responsible for all matters relating to payment of its employees, including
compliance with Social Security, withholding and all other laws and regulations governing such
matters. The Owner agrees to be solely responsible for its own acts and those of its agents and
employees.
5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim
against the Authority by any person the Owner may have employed or with whom the Owner may
have contracted relative to the purchase of materials, supplies or equipment, or the furnishing or
the performance of any work or services with respect to the operation of the Affordable Units.
5.6 Conflict of Interests. No member, official or employee of the Authority shall make
any decision relating to this Agreement which affects his or her personal interests or the interests
of any corporation, partnership or association in which he or she is directly or indirectly interested.
Page 232 of 851
-17-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
No officer or employee of the Owner shall acquire any interest in conflict with or inimical to the
interests of the Authority.
5.7 Non-Liability of Officials, Employees and Agents. No member, official, employee
or agent of the Authority shall be personally liable to the Owner, or any successor in interest, in
the event of any default or breach by the Authority or for any amount which may become due to
the Owner or successor in connection with this Agreement or on any obligation of the Authority
under the terms of this Agreement.
5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific
provisions of this Agreement, performance of a construction obligation by any Party hereunder
shall not be deemed to be in default where it is due to an “Unavoidable Delay.” “Unavoidable
Delay” means a delay due to the elements (including unseasonable weather), fire, earthquakes or
other acts of God, strikes, pandemics, labor disputes, lockouts, shortages of construction materials
experienced generally in the construction industry in the local area, acts of the public enemy, riots,
insurrections or governmental regulation of the sale or transportation of materials, supply or labor;
provided, however, that to the extent a delay is caused by any other reason that the Owner
reasonably believes is beyond its control, the Owner may request, on a case-by-case basis, that the
Authority excuse any such delay as an Unavoidable Delay and the Authority shall make its
determinations as to whether such delay constitutes an Unavoidable Delay using its reasonable
judgment.
5.9 Indemnity. The Owner shall indemnify, defend and hold harmless the Authority
and City, and all of their respective officials, employees and agents (with counsel reasonably
satisfactory to the Authority and/or City, as applicable), against any costs, liabilities, damages or
judgments arising from claims or litigation of any nature whatsoever brought by third parties and
directly or indirectly arising from the Owner’s ownership or operation of the Project, or the
Owner’s performance of its obligations under this Agreement, and in the event of settlement,
compromise or judgment hold the Authority and City free and harmless therefrom.
Notwithstanding the foregoing, the indemnity provisions contained in this Section 5.9 shall not
apply with respect to any costs, liabilities, damages or judgments arising directly or indirectly from
the Authority’s rental of units within the Project as described in Section 4.2 hereof. The provisions
of this Section 5.9 shall survive the term of this Agreement.
5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this
Agreement, the rights and remedies of the Parties are cumulative, and the exercise or failure to
exercise one or more of such rights or remedies by either Party shall not preclude the exercise by
it, at the same time or different times, of any right or remedy for the same default or any other
default by the other Party. No waiver of any default or breach by the Owner hereunder shall be
implied from any omission by the Authority to take action on account of such default if such
default persists or is repeated, and no express waiver shall affect any default other than the default
specified in the waiver, and such wavier shall be operative only for the time and to the extent
therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed
as a waiver of any subsequent breach of the same covenant, term or condition. The consent or
approval by the Authority to any act by the Owner requiring further consent or approval shall not
be deemed to waive or render unnecessary the consent or approval to or of any subsequent similar
act. The exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of
Page 233 of 851
-18-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
any default under this Agreement, nor shall it invalidate any act done pursuant to notice of default,
or prejudice the Authority in the exercise of any right, power, or remedy hereunder or under any
agreements ancillary or related hereto.
5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the
laws of the State of California.
5.12 Severability. If any term, provision, covenant or condition of this Agreement is
held in a final disposition by a court of competent jurisdiction to be invalid, void or unenforceable,
the remaining provisions shall continue in full force and effect unless the rights and obligations of
the Parties have been materially altered or abridged by such invalidation, voiding or
unenforceability.
5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce
the terms of this Agreement or to collect damages as a result of any breach thereof, the Party
prevailing in any such action shall be entitled to recover against the Party not prevailing all
reasonable attorneys’ fees and costs incurred in such action (including all legal fees incurred in
any appeal or in any action to enforce any resulting judgment), as awarded by a court of competent
jurisdiction.
5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the
benefit of the permitted heirs, administrators, executors, successors in interest and assigns of each
of the Parties. Any reference in this Agreement to a specifically named Party shall be deemed to
apply to any successor, heir, administrator, executor or assign of such Party who has acquired an
interest in compliance with the terms hereof or under law.
5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.
5.16 Approval by the Authority. Any approvals required under this Agreement to be
made by the Authority shall be made by the Executive Director of the Authority or his or her
designee. Any such approval or consent shall not be unreasonably withheld, conditioned, delayed
or made, except where it is specifically provided herein that another standard applies, in which
case the specified standard shall apply.
5.17 Complete Understanding of the Parties. This Agreement and the attached Exhibits
constitute the entire understanding and agreement of the Parties with respect to the matters
described herein.
5.18 Covenants to Run With the Land. The Owner hereby subjects the Project to the
covenants, reservations, and restrictions set forth in this Agreement. The Authority and the Owner
hereby declare their express intent that the covenants, reservations, and restrictions set forth herein
shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s
successors in title to the Project; provided, however, that on the termination of this Agreement said
covenants, reservations and restrictions shall expire. Each and every contract, deed or other
instrument hereafter executed covering or conveying the Project or any portion thereof shall
conclusively be held to have been executed, delivered and accepted subject to such covenants,
reservations and restrictions, regardless of whether such covenants, reservations and restrictions
are set forth in such contract, deed or other instruments. No breach of any of the provisions of this
Page 234 of 851
-19-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Agreement shall defeat or render invalid the lien of a mortgage or deed of trust made in good faith
and for value encumbering the Property or any interest of the Owner therein.
5.19 Burden and Benefit. The Authority and the Owner hereby declare their
understanding and intent that: (i) the burden of the covenants, reservations, restrictions, and
agreements set forth herein touch and concern the Property and the Project, in that Owner’s legal
interest in the Project is rendered less valuable thereby, (ii) the covenants, reservations, restrictions,
and agreements set forth herein directly benefit the Property and the Project (a) by enhancing and
increasing the enjoyment and use of the Project by certain Extremely Low, and 59% AMI Low
Income Households, the intended beneficiaries of such covenants, reservations, restrictions, and
agreements, (b) by making possible the obtaining of advantageous financing for the Property and
the Project, and (c) by furthering the public purposes advanced by the Authority, and (iii) the
covenants, reservations, restrictions and agreements set forth herein shall run with the Property
and shall be binding for the benefit of and enforceable by the Authority and its successors and
assigns for the entire Term of this Agreement.
5.20 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be an original, but all of which shall constitute one and the same instrument.
5.21 Amendments. This Agreement may be amended only by the written agreement of
the Authority and the Owner.
5.22 Third Party Beneficiaries. The City shall be a third-party beneficiary of this
Agreement with the right of enforcement. Other than the City, there shall be no third-party
beneficiaries of this Agreement.
[Remainder of this page intentionally left blank]
[Signatures appear on next page]
Page 235 of 851
-20-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
WHEREFORE, the undersigned has executed this Agreement as of the date first-above
written.
OWNER:
A0358 MONTEREY, L.P.,
A California limited partnership
By: A0358 Monterey Admin Holdings LLC
A California limited liability company
Its: Administrative General Partner
By:
Name:
Its:
By: A0358 Monterey Holdings LLC,
A California limited liability company
By:
Name:
Its:
AUTHORITY:
PALM DESERT HOUSING AUTHORITY,
a public body, corporate and politic
By:
Name: Kathleen Kelly
Its: Chairman
ATTEST:
Anthony J. Mejia, Secretary
APPROVED AS TO FORM:
Robert W. Hargreaves, City Attorney
Page 236 of 851
-21-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
CALIFORNIA ALL-PURPOSE 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 ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
Page 237 of 851
-22-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
CALIFORNIA ALL-PURPOSE 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 ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
Page 238 of 851
-23-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
CALIFORNIA ALL-PURPOSE 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 ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
Page 239 of 851
EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
PARCEL A AS SHOWN ON CERTIFICATE OF COMPLIANCE (WAIVER OF PARCEL MAP
PMW 06-03), AS EVIDENCED BY DOCUMENT RECORDED OCTOBER 25, 2006 AS
INSTRUMENT NO. 2006-0782511 OF OFFICIAL RECORDS, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
A PORTION OF PARCELS 1 AND 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED
OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, IN THE SOUTHWEST QUARTER (SW1/4) OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, CITY OF
PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINE OF
MONTEREY AVENUE; THENCE N89°58'35"E ALONG THE EAST-WEST ONE QUARTER
(E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE NORTHERLY LINE OF
PARCEL 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED OCTOBER 15, 1999, AS
INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, A DISTANCE OF 1314.94 FEET TO THE TRUE
POINT OF BEGINNING;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4)
SECTION LINE OF SAID SECTION 29, THE NORTHERLY LINE OF SAID PARCEL 2 AND
CONTINUING ALONG THE NORTHERLY LINE OF PARCEL 1 OF SAID PARCEL MAP
WAIVER NO. 99-15, A DISTANCE OF 1314.61 FEET TO THE CENTER ONE QUARTER
(C1/4) CORNER OF SAID SECTION 29, SAID POINT BEING ALSO THE NORTHEAST
CORNER OF SAID PARCEL 1;
THENCE S00°09'04"E ALONG THE NORTH-SOUTH ONE QUARTER (N-S 1/4) SECTION
LINE OF SAID SECTION 29 AND THE EASTERLY LINE OF SAID PARCEL 1, A
DISTANCE OF 489.00 FEET TO THE NORTHEAST CORNER OF THAT PARCEL OF LAND
CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT BY GRANT DEED,
RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 0308440, OF OFFICIAL RECORDS
(O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S89°58'35"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 0308440, A DISTANCE OF 1270.59 FEET TO THE
NORTHWEST CORNER OF THAT PARCEL OF LAND DESCRIBED IN SAID
INSTRUMENT NO. 0308440, SAID POINT BEING ALSO A POINT ON A NON TANGENT
CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1700.00 FEET AND TO
WHICH POINT A RADIAL LINE BEARS 576°44'54"W;
Page 240 of 851
A-25-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE, A
DISTANCE OF 392.48 FEET THROUGH A CENTRAL ANGLE OF 13°13'40";
THENCE N00°01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING.
EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11 (AVENUE 35)
AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE), ALL CONVEYED TO
THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS
INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINES
OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E ALONG THE EAST-
WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE
CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 1314.94 FEET TO THE
CENTERLINE INTERSECTION OF SAID AVENUE 35 AND GATEWAY DRIVE; THENCE
CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4)
SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A
DISTANCE OF 71.07 FEET; THENCE S00°01'25"E, A DISTANCE OF 54.00 FEET TO THE
SOUTHERLY LINE OF PARCEL NO. 2004-02.11 (AVENUE 35) CONVEYED TO THE CITY
OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO.
2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, SAID POINT BEING 54.00 FEET SOUTHERLY OF THE CENTERLINE OF
SAID AVENUE 35, AS MEASURED AT RIGHT ANGLES THERETO, SAID POINT BEING
ALSO THE TRUE POINT OF BEGINNING;
THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF CURVATURE OF A
CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 946.00 FEET;
THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF
220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A POINT OF REVERSE
CURVATURE OF A CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF
1054.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S13°19'14"W;
THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 185.57 FEET
THROUGH A CENTRAL ANGLE OF 10°05'15";
THENCE 552°30'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE OF PARCEL NO.
2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM DESERT BY GRANT
DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
Page 241 of 851
A-26-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
THENCE S00°09'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-02.12
("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF THAT
PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT
(P.S.U.S.D.) BY GRANT DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 2006-
0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA;
THENCE 589°58'34"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 2006-0308440 (P.S.U.S.D.), A DISTANCE OF
1176.61 FEET TO THE EASTERLY LINE OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE)
CONVEYED TO THE CITY OF PALM SPRINGS BY GRANT DEED, RECORDED JUNE 7,
2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ALSO A POINT ON A NON-
TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1646.00
FEET AND TO WHICH POINT A RADIAL LINE BEARS S76°15'06"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE EASTERLY LINE OF
SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE) AND THE ARC OF SAID CURVE, A
DISTANCE OF 392.80 FEET THROUGH A CENTRAL ANGLE OF 13°40'23";
THENCE N00°04'31"W ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-02.10
(GATEWAY DRIVE), A DISTANCE OF 28.94 FEET TO THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35);
THENCE N44°57'02"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 24.05 FEET TO THE POINT OF BEGINNING.
APN: 694-130-017 (Affects a portion of the land);
694-130-018 (Affects a portion of the land);
694-130-019 (Affects a portion of the land); and
694-130-020 (Affects a portion of the land)
Page 242 of 851
EXHIBIT “B”
HOUSEHOLD INCOME CERTIFICATION
(Attached.)
Page 243 of 851
B-28-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Page 244 of 851
B-29-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Page 245 of 851
B-30-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Page 246 of 851
EXHIBIT “C”
CERTIFICATE OF CONTINUING COMPLIANCE
Page 247 of 851
C-32-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Page 248 of 851
C-33-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Page 249 of 851
C-34-
P6401-0001\2851004v1.doc
P6401-0001\2815992v67.doc
Page 250 of 851
EXHIBIT “D”
2023 RENTAL RATES
Page 251 of 851
Page 252 of 851
LOAN AGREEMENT
THIS LOAN AGREEMENT (“Agreement”) is dated as of _______________, 2023 and is
entered into by and between the PALM DESERT HOUSING AUTHORITY (“Lender”), and
A0358 MONTEREY, L.P., a California limited partnership (“Borrower”).
R E C I T A L S:
A. Borrower owns the land located in the City of Palm Desert, County of Riverside,
State of California (the “City”), more particularly described on Exhibit “A” attached hereto
(together with any improvements thereon, the “Property”).
B. Borrower intends to construct a 176-unit multi-family residential apartment
community for households with incomes up to 80% of the area median income and related
improvements on the land that are described on Exhibit “B”.
C. Borrower has requested that Lender make a loan to Borrower from low income
housing set aside funds in the principal amount of Seven Million Two Hundred Thirty-Five
Thousand Dollars ($7,235,000.00), to partially fund the construction of the Improvements (as
hereinafter defined) (the “Loan”) and to be used after all available tax credit equity to pay for a
portion of the costs of the Improvements, on the terms and conditions hereinafter set forth.
NOW, THEREFORE, the Parties agree as follows:
A G R E E M E N T:
1. DEFINITIONS AND EXHIBITS.
1.1 Definitions. The following initially capitalized words and terms have the
meanings set forth in this Section 1.1 wherever used in this Agreement, unless otherwise provided
to the contrary:
1.1.1 “City Housing Agreement” shall mean the Housing Agreement
attached hereto as Exhibit “I”.
1.1.2 “Closing” shall mean the date on which the Deed of Trust is
recorded in the Official Records of Riverside County, California.
1.1.3 “Construction Plans” means the construction plans,
specifications and related documents consistent with the Scope of Development attached hereto as
Exhibit “B” for the design and construction of the Improvements.
1.1.4 “Deed of Trust” shall mean a Deed of Trust and Assignment of
Rents in the form attached hereto as Exhibit “C”, executed by Borrower for the benefit of Lender
and, acknowledged (which is to be recorded against the Property in the Official Records of
Riverside County, California at the Closing).
Page 253 of 851
-2-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
1.1.5 “Entitlements” shall mean all authorizations, approvals, rights,
maps, licenses, permits, franchises, certificates, instruments, documents, agreements, variances
and other land use approvals required for the Development.
1.1.6 “Governmental Authority” shall mean any federal, state or local
governments, and all subdivision thereof, including any city, authority, board, bureau,
commission, department or other public body, including any court, administrative tribunal or
public utility.
1.1.7 “Improvements”, “Development” or “Project” shall mean the
project/work described in the Scope of Development attached hereto as Exhibit “B”.
1.1.8 “Loan” shall mean the loan contemplated by this Agreement as
defined in the Recitals.
1.1.9 “Loan Documents” shall mean this Agreement, the Note, the
Deed of Trust, the Regulatory Agreement, the City Housing Agreement, the Notice and all other
documents and instruments executed and delivered, or to be executed and delivered, in connection
with the Loan (including the Acknowledgment referred to in Section 3.6.1 below).
1.1.10 “Note” shall mean a Secured Promissory Note, in the form
attached hereto as Exhibit “D”, executed by Borrower and payable to City.
1.1.11 “Notice” shall mean a Notice of Affordability Restrictions in the
form attached hereto as Exhibit “E”.
1.1.12 “Operating Year” shall mean each calendar year or portion
thereof during which the Project is operating.
1.1.13 “Parties” shall mean Lender and Borrower, collectively, and
“Party” shall mean Lender or Borrower, individually.
1.1.14 “Person” shall mean a natural person, a partnership, a joint
venture, an unincorporated association, a limited liability company, a corporation, a trust, any other
business association or any Governmental Authority.
1.1.15 “Potential Default” shall mean any condition or event that could,
with the lapse of time/expiration of applicable cure period under this Agreement after any written
notice to Borrower thereof required by this Agreement is delivered, constitute a “Default” (as
defined in Section 5.1 below).
1.1.16 “Project Net Cash Flow” shall mean the revenues derived from
the operation of the Development minus (i) all real estate and personal property taxes and
assessments, insurance premiums, monitoring fees and reasonable costs of maintenance, operation
and management incurred by the Borrower in connection with the operation and maintenance of
the Development, (ii) annual property management fees not to exceed four and one-half percent
(4.5%) of the revenues; (iii) a minimum of Eighty-Five Thousand Dollars ($85,000.00) per year
in tenant services provided on-site (which amount shall increase annually by the rate of increase
Page 254 of 851
-3-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
in the CPI from the prior calendar year), (iv) the annual costs of servicing the senior construction
loan/financing (and any approved refinancing thereof) or other sources of financing approved by
Lender (other than the Loan); (v) amounts necessary to maintain a guaranty or other form of
security or bond for an operation reserve account which shall be capitalized in the amount not to
exceed Seven Hundred Forty-One Thousand Dollars ($741,000.00), including any replenishment
of such reserve (vi) amounts deposited into a replacement initially capitalized reserve account in
the sum of not to exceed $300/unit per annum, increasing three percent (3%) per annum and any
ongoing deposits to such reserve (vi) the repayment of any amounts loaned by the Borrower or its
partners to the Development for material Development costs which costs were not reasonably
foreseeable, and which loan, and the items for which funds were expended pursuant to such loan,
are approved in advance by the Lender’s Executive Director, (vii) deferred developer fees in the
total maximum amount of Nine Million Five Hundred Sixty-Six Thousand One Hundred Ninety-
Four Dollars ($9,566,194.00), (x) a Limited Partner monitoring fee in the annual amount of Seven
Thousand Five Hundred Dollars ($7,500.00); (xi) a managing general partner fee in the annual
amount of Fifteen Thousand Dollars ($15,000.00), which may increase up to three percent (3%),
annually; (xii) an annual monitoring/administration fee in the annual amount of Ten Thousand
Dollars ($10,000.00), increasing by three percent (3%) annually) payable to the Authority under
the Housing Agreement; and (xiii) any unpaid tax credit adjuster payments due to the limited
partner of Borrower. The amounts of the operation reserves and replacement reserves described
above may increase in accordance with the annual percentage increases from the date hereof in the
Consumer Price Index, U.S. City Average, All Urban Consumers as published by the U.S. Bureau
of Labor Statistics (the “CPI”) or as required for the Borrower limited partner or any senior lender.
Project Net Cash Flow shall be determined by Borrower and Lender on a cash basis without regard
to any carry-over profit or loss from any prior calendar year. Borrower and Lender shall determine
the amount of Project Net Cash Flow annually, on or before April 15 for the preceding Operating
Year.
1.1.17 “Property” shall have the meaning provided in Recital A, but
shall also mean portions thereof or interests therein as the context requires.
1.1.18 “Preliminary Budget” shall mean the budget for the costs of the
Project attached hereto as Exhibit “F”.
1.1.19 “Regulatory Agreement” shall mean the Housing Agreement in
the form attached hereto as Exhibit “G”.
1.1.20 “Schedule of Performance” shall mean the schedule for the
completion of the Improvements attached to this Agreement as Exhibit “H”.
1.2 Exhibits. The following exhibits are attached to this Agreement and
incorporated into, and made a part of, this Agreement by this reference:
1.2.1 Exhibit “A”: Legal Description.
1.2.2 Exhibit “B”: Scope of Development.
1.2.3 Exhibit “C”: Form of Deed of Trust.
Page 255 of 851
-4-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
1.2.4 Exhibit “D”: Form of Promissory Note.
1.2.5 Exhibit “E”: Form of Notice of Affordability Restrictions.
1.2.6 Exhibit “F”: Preliminary Project Budget.
1.2.7 Exhibit “G”: Form of Housing Agreement (LMIHF) or
“Regulatory Agreement”.
1.2.8 Exhibit “H”: Schedule of Performance.
1.2.9 Exhibit “I”: Form of Housing Agreement (City).
2. CONSTRUCTION OF IMPROVEMENTS.
2.1 Construction Pursuant to Plans. The Improvements shall be constructed in
accordance with final Construction Plans approved by the City and the terms and conditions of the
permits and approvals issued or to be issued by the City.
2.2 Commencement and Completion of Improvements; Schedule of
Performance. Borrower shall commence construction of the Improvements no later than the
applicable date set forth in the Schedule of Performance, diligently prosecute to completion the
construction of the Improvements no later than the applicable date set forth in the Schedule of
Performance, and Borrower shall otherwise comply with the Schedule of Performance, in each
case subject to Section 6.12 below (Force Majeure).
2.3 Compliance with Applicable Law. Borrower shall cause all construction to
be performed in compliance with: (a) all applicable laws, ordinances, rules and regulations of
federal, state, county or municipal governments or agencies now in force or that may be enacted
hereafter; (b) all directions, rules and regulations of any fire marshal, health officer, building
inspector, or other officer of every governmental authority now having or hereafter acquiring
jurisdiction; (c) all applicable permits and governmental approvals.
2.4 Monthly Progress Reports. Until such time as Borrower has completed the
Improvements, Borrower shall provide Lender with monthly progress reports (within 30 days of
the end of each calendar month for the previous calendar month) regarding the status of the
construction of the Improvements.
2.5 Construction Responsibilities. Borrower shall be solely responsible for all
aspects of Borrower’s conduct in connection with the Improvements, including (but not limited
to) the quality and suitability of the plans and specifications, the supervision of construction work,
and the qualifications, financial condition, and performance of all architects, engineers,
contractors, subcontractors, suppliers, consultants, and property managers. Any review or
inspection undertaken by Lender with reference to the Improvements is solely for the purpose of
determining whether Borrower is properly discharging its obligations, and should not be relied
upon by Borrower or by any third parties as a warranty or representation as to the quality of the
design or construction of the Improvements, or for any other purpose.
Page 256 of 851
-5-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
2.6 Mechanics’ Liens, Stop Notices, and Notices of Completion. If any claim
of lien is filed against the Property or a stop notice with respect to the Loan is served on Lender or
any other lender or other third party in connection with the Improvements, then Borrower shall,
subject to Borrower’s right to contest such lien in good faith and in accordance with applicable
law, within ninety (90) days after such filing or service, either pay and fully discharge the lien or
stop notice, effect the release of such lien or stop notice by delivering to Lender a surety bond from
a surety acceptable to Lender in sufficient form and amount, or provide Lender with other
assurance satisfactory to Lender that the claim of lien or stop notice will be paid or discharged.
2.7 Budget Amendments. After the Closing, Borrower shall submit any
changes to the Budget to Lender for approval within thirty (30) days after Borrower receives
information indicating that actual costs therein vary or will vary from those shown on the Budget,
together with evidence that Borrower has funds available from sources other than Lender to pay
any cost increases and overruns. Lender will approve or disapprove in writing delivered to
Borrower any changes to the Budget in writing within ten (10) days of receipt from Borrower.
Lender’s approval of any change to the Budget will not be unreasonably withheld, conditioned or
delayed and any disapproval will include the reasons for such disapproval. Failure by Lender to
approve or disapprove any change to the Budget in writing within ten (10) days of receipt from
Borrower shall be deemed disapproval.
3. LOAN PROVISIONS.
3.1 Use. The Loan shall be used solely for construction costs of the Project as
shown on the Project Budget that exceed any equity funds available for acquisition and
construction costs.
3.2 Interest; Payments. The outstanding principal balance of the Loan shall
accrue interest as set forth in the Note and such principal and interest shall be payable as set forth
in the Note.
3.3 Acceleration. Upon a Default by Borrower under Section 5 below, Lender
may elect by written notice to Borrower that all outstanding principal and accrued interest on the
Loan shall become due and payable.
3.4 Security. The Note shall be secured by the Deed of Trust.
3.5 Project Net Income Reporting. On or before April 15 of each calendar year
following completion of improvements, Borrower shall provide the Lender with an annual report
for the Project in form and substance reasonably acceptable to Lender that include annual financial
statements with respect to the Project that have been reviewed by an independent certified public
accountant (“Annual Financial Report”). In the event the Residual Receipts reported or paid
deviate by a deficit of three percent (3%) or more from that amount determined to be owing upon
review of Borrower’s submittal and an audit (and the Lender shall have the right to audit
Borrower’s books and records for the Project, which shall be kept at the Property), Borrower shall
reimburse Lender for its cost to review and shall pay the amounts owing within thirty (30) days
after notice from Lender describing such amounts and costs
Page 257 of 851
-6-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
3.6 Conditions Precedent to Closing. The obligation of Lender to close the
Loan is expressly conditioned upon the satisfaction of the following on or before _____________,
2023.
3.6.1 Lender’s receipt of originals of this Agreement, the Regulatory
Agreement, the Housing Agreement and the Note, duly executed by Borrower;
3.6.2 No Default or Potential Default by Borrower exists.
3.6.3 First American Title Insurance Company has recorded, or is
irrevocably and unconditionally committed to record, the Deed of Trust, the Regulatory
Agreement, and the Notice of Affordability Restrictions (and any deeds of trust or other documents
required as a condition to any other construction financing for the Project).
3.6.4 First American Title Insurance Company has unconditionally
committed to issue a lender’s title insurance policy to Lender in the amount of the Loan insuring
the Deed of Trust, with exceptions approved by Lender and otherwise in form and substance
acceptable to Lender.
3.6.5 Borrower shall have delivered to Lender copies of Borrower’s
organizational documents to Lender (including the partnership agreement for any tax credit limited
partnership formed by the Borrower) as well as any other reasonable evidence requested by Lender
showing Lender that Borrower has duly authorized the Loan Documents.
3.6.6 The City shall have issued the building permit-ready letter for
the improvements and shall have completed its environmental (CEQA) review.
3.6.7 Borrower shall have provided reasonable evidence to the
Lender of: (i) the cost of the Improvements (including a GMAX or stip sum construction contract
from a reputable bondable contractor) and (ii) that Borrower has debt and equity funds to pay for
such costs (and any tax credit equity shall have been committed and available, as shown by
reasonable evidence delivered to Lender).
3.6.8 If Lender is requested to execute a subordination agreement
with respect to the deed of trust securing senior construction financing, then Lender’s receipt and
approval of the loan documents for such senior construction financing.
3.7 Loan Disbursements. Disbursements of the Loan shall be conditioned upon
the following additional conditions:
(i) Borrower shall have delivered to Lender a written disbursement
request in form and substance reasonably satisfactory to Lender, together with copies of the
applicable invoices or other appropriate documentation for the costs to be paid (consistent with the
final Project budget) and appropriate mechanics lien waivers for the work performed prior to the
date of disbursement (i.e., unconditional progress payment waivers for all costs paid with the
previous disbursement, and conditional progress payment waivers for the costs to be paid with the
current disbursement, provided that final waivers shall be provided as a condition to the final
disbursement).
Page 258 of 851
-7-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
(ii) No Default shall have occurred under any Loan Document that
remains uncured as of the date of the disbursement request or actual disbursement.
(iii) All equity funds shall have been disbursed and applied to Project
costs in the Project Budget as shown by reasonable evidence delivered to Lender, and the Loan
funds not yet disbursed together with any other committed sources of funds are sufficient to pay
all remaining Project costs.
4. OTHER LOAN REQUIREMENTS.
4.1 Information. Borrower shall provide any information requested by Lender
in good faith in connection with the Improvements.
4.2 Hazardous Materials. Borrower shall not use, generate, manufacture, store
or dispose of on, under, or about the Property or transport to or from the Property any flammable
explosives, radioactive materials, hazardous wastes, toxic substances or related materials,
including any substances defined as or included in the definition of “hazardous substances,”
hazardous wastes,” “hazardous materials,” or “toxic substances” under any applicable federal or
state laws or regulations (collectively, “Hazardous Materials”), except such of the foregoing as
may be customarily used in connection with the ownership, operation, occupancy, maintenance
and construction of improvements similar to the Improvements. Borrower acknowledges and
agrees that each covenant and agreement of Borrower in this Agreement (together with any
indemnity obligation applicable to a breach of any such representation and warranty) with respect
to the environmental condition of the Property is intended by the Parties to be an “environmental
provision” for purposes of California Code of Civil Procedure Section 736.
4.3 Construction Responsibilities; Commencement and Completion. Borrower
shall cause the construction of the Improvements to be prosecuted with diligence, in good faith,
and in accordance with the Schedule of Performance, subject to Section 5.1.9 below. Borrower
shall cause the construction of the Improvements to be performed in a good and workmanlike
manner in accordance with the Construction Plans approved by the City, in compliance with all
applicable laws, ordinances, rules, regulations, building restrictions, recorded covenants and
restrictions and requirements of each Governmental Authority having jurisdiction over the
Property and free and clear of any liens or claims for liens. Borrower shall be solely responsible
for all aspects of Borrower’s business and conduct in connection with the Property, including the
quality and suitability of the Construction Plans and their compliance with the requirements of
each applicable Governmental Authority and the Loan Documents, and the supervision of the
construction of the Improvements, the qualifications, financial condition and performance of all
architects, engineers, contractors, subcontractors, material suppliers, consultants and property
managers, the accuracy of all applications for payment and loan draw requests and the proper
application of all disbursements.
4.4 Fees and Taxes. Borrower shall be solely responsible for payment of all
fees, assessments, taxes, charges and levies imposed by any public authority or utility company
with respect to the Property, and shall pay such charges prior to delinquency. However, Borrower
shall not be required to pay and discharge any such charge so long as (a) the legality thereof is
being contested diligently and in good faith and by appropriate proceedings and (b) if requested
Page 259 of 851
-8-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
by Lender, Borrower deposits with Lender such funds or other forms of assurance that Lender in
good faith from time to time determines appropriate to protect Lender from the consequences of
the contest being unsuccessful, provided, however, that if Borrower has deposited sufficient funds
with a senior lender, Borrower shall not be required to deposit funds with Lender.
4.5 Notice of Litigation. Borrower shall promptly notify Lender of any
litigation materially affecting Borrower or the Property and of any claims or disputes that Borrower
reasonably believes involve a material risk of any such litigation.
4.6 Transfers. The qualifications and identity of the Borrower are of particular
concern to the Lender and it is because of such qualifications and identity that the Lender has
entered into this Agreement with the Borrower. No voluntary or involuntary successor in interest
of the Borrower shall acquire any rights or powers under this Agreement except as expressly set
forth herein. However, Borrower may assign this Agreement to a single-asset limited partnership
in which Borrower is the general partner, or which has a general partner that is directly or indirectly
owned and controlled by Borrower, provided Lender approves the limited partnership agreement
and evidence of such control or ownership, such approval not to be unreasonably withheld. The
Loan may be accelerated by Lender if there is any conveyance by Borrower of the Property or
any portion thereof or interest therein, or Borrower ceases to be (or ceases to own and control, as
applicable) the general partner of such limited partnership prior to the completion of the
Improvements without the City’s prior written consent. Notwithstanding the foregoing, provided
prior written notice to Lender of such transfer (with reasonable evidence of the nature of the
transfer) is provided to Lender with respect to items (ii) and (iii) below as applicable, the Lender's
consent shall not be required for (i) any direct or indirect transfer of the investor limited partner's
interest in the Borrower if such transfer is to an entity controlled by, or under common control
with Urban Housing Communities, LLC, a California limited liability company or an affiliate
thereof, (ii) the removal or replacement of a general partner of Borrower by the investor limited
partner in accordance with the provisions of the Borrower's limited partnership agreement, (iii) the
transfer of the Property or of a limited partner interest in Borrower to an entity affiliated with
Urban Housing Communities, LLC, a California limited liability company made pursuant to and
as permitted by Borrower’s limited partnership agreement (collectively, a “Permitted Transfer”).
4.7 Insurance.
4.7.1 Borrower shall obtain and maintain at no cost or expense to the
Lender, with a reputable and financially responsible insurance company reasonably acceptable to
the Lender, (i) after the opening of the Project for business, commercially reasonable casualty
insurance for the Improvements in an amount not less than the replacement cost of the
Improvements (subject to commercially reasonable deductibles) with a reasonable inflation rider;
(ii) commercial broad form general liability insurance, insuring against claims and liability for
bodily injury, death, or property damage arising from the construction, use, occupancy, condition,
or operation of the Property, which liability insurance shall provide combined single limit
protection of at least Two Million Dollars ($2,000,000.00) and shall include a reasonable inflation
rider, contractual liability coverage and products and completed operations coverage, and (iii)
commercial automobile liability insurance of at least One Million Dollars ($1,000,000.00)
combined single limit. Such liability insurance policies shall name the Lender and City and their
Page 260 of 851
-9-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
respective board members, council members, officers, agents and employees as additional
insureds.
4.7.2 Before commencement of any demolition or construction work
by Borrower, Borrower shall obtain and maintain in force until completion of such work (i) “all
risk” builder’s risk insurance, including coverage for vandalism and malicious mischief, in a form
and amount and with a company reasonably acceptable to the Lender, and (ii) workers’
compensation insurance covering all persons employed by Borrower in connection with work on
the Project, or any portion thereof. During the construction of Improvements on any portion of
the Property by Borrower, such builder’s risk insurance shall cover improvements in place and all
material and equipment at the job site furnished under contract, but shall exclude contractors’,
subcontractors’, and construction managers’ tools and equipment and property owned by
contractors’ and subcontractors’ employees.
4.7.3 Each architect and each engineer engaged by Borrower shall
provide professional liability insurance with a limit of liability of at least One Million Dollars
($1,000,000.00).
4.7.4 Borrower shall also furnish or cause to be furnished to the
Lender evidence satisfactory to the Lender that any contractor with whom it has contracted for the
performance of work on the Property or otherwise pursuant to this Agreement carries workers’
compensation insurance as required by law.
4.7.5 With respect to each policy of insurance required above, and
promptly following written request by Lender, Borrower and each of Borrower’s general
contractors, engineers and architects shall furnish to the Lender a certificate on the insurance
carrier’s form setting forth the general provisions of the insurance coverage and showing the
additional insureds. The certificate shall also be furnished by Borrower prior to commencement
of construction of any Improvements.
4.7.6 All such policies required by this Section shall contain (i)
language to the effect that the policies cannot be cancelled or materially changed except after thirty
(30) days’ written notice by the insurer to the Lender, and (ii) a waiver of the insurer of all rights
of subrogation against the Lender and the other additional insureds. All such insurance shall have
deductibility limits which shall be commercially reasonable.
4.7.7 Procuring the insurance required under this Section shall not be
construed to limit Borrower’s liability under the Loan Documents, or to fulfill its indemnity
obligations under the Loan Documents. Notwithstanding such insurance policies, Borrower shall
be responsible for the total amount of any damage, injury or loss caused by negligence or neglect
connected with the ownership, operation or occupancy of the improvements on the land. The
insurance requirements set forth in this Section are for the purpose of protecting Lender’s security
for the Loan and are not to be construed as a representation by Lender that the insurance required
under this Section is sufficient to cover Borrower from or against all uninsured losses and
Borrower releases Lender from any liability and forever waives any claims against Lender in
connection therewith.
Page 261 of 851
-10-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
4.7.8 All insurance policies shall (a) be issued by an insurance
company having a rating of “A:VII” or better by A.M. Best Co., in Best’s Rating Guide; (b) name
Lender and City as an additional insured on all liability insurance and the senior lender as
mortgagee and loss payee on all casualty insurance, (c) contain the “standard non-contributory
mortgagee clause” and the “standard lenders’ loss payable clause,” or their equivalents, (d) be
evidenced by a certificate of insurance (or, if required by Lender, copy of insurance policy) to be
delivered to Lender.
4.8 Indemnity. In addition to Borrower’s obligations under Section 6.4 below,
Borrower hereby agrees to indemnify, defend, protect, and hold harmless the Lender and City and
their respective agents, employees, representatives, board members, council members, consultants,
and officers from and against all losses, liabilities, claims, damages (including foreseeable or
unforeseeable consequential damages), penalties, fines, forfeitures, costs and expenses (including
all reasonable out of pocket litigation costs and reasonable attorneys’ fees) and demands of any
nature whatsoever, related directly or indirectly to, or arising out of or in connection with:
(i) the validity of this Agreement;
(ii) the development and construction by Borrower of the Improvements
on the Property or the use, ownership, management, occupancy, or possession of the Property
during Borrower’s period of ownership or control thereof;
(iii) any breach or Default by Borrower hereunder; and
(iv) any of Borrower’s activities on the land (or the activities of
Borrower’s agents, employees, lessees, representatives, licensees, guests, invitees, contractors,
subcontractors, or independent contractors on the land).
The Lender and City may in their discretion, and at their own cost, participate in
the defense of any legal action naming the Lender or City. The provisions of this Section shall
survive the Closing or the termination of this Agreement.
5. DEFAULT AND REMEDIES.
5.1 Events of Default. Each of the following shall constitute a “Default” by
Borrower under this Agreement:
5.1.1 The failure by Borrower to make a payment of money to Lender
within ten (10) business days from the date such payment was due under any of the Loan
Documents.
5.1.2 The failure by Borrower to perform any obligation under the
Loan Documents not involving the payment of money, and, if such failure is curable within thirty
(30) days, the expiration of thirty (30) days after written notice of such failure from Lender to
Borrower. If such failure is not curable within thirty (30) days, Borrower may have such longer
period of time as is reasonably necessary to complete the cure, provided that Borrower has
commenced to cure within the initial thirty (30)-day period and diligently prosecutes such cure to
completion.
Page 262 of 851
-11-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
5.1.3 Borrower (a) is unable, or admits in writing its inability, to pay
its monetary obligations as they become due, (b) makes a general assignment for the benefit of
creditors, or (c) applies for, consents to or acquiesces in the appointment of a trustee, receiver or
other custodian for itself or its property, or, in the absence of such application, consent or
acquiescence, a trustee, receiver or other custodian is appointed for Borrower or the property of
Borrower (including the Development), and such appointment is not discharged within ninety (90)
days.
5.1.4 The commencement of any case under the Bankruptcy Code or
commencement of any other bankruptcy, arrangement, receivership, custodianship or similar
proceeding under any federal, state or foreign law by or against Borrower, provided that if any
such case or other bankruptcy, arrangement, reorganization, receivership, custodianship or similar
proceeding is commenced against Borrower, such case or other bankruptcy, arrangement,
receivership, custodianship or similar proceeding is not dismissed within ninety (90) days after its
commencement.
5.1.5 A final judgment or decree for monetary damages or a
monetary fine or penalty (not subject to appeal or as to which the time for appeal has expired) is
entered against Borrower by any Governmental Authority, and such judgment, decree, fine or
penalty is not paid and discharged or stayed within ninety (90) days after the entry thereof.
5.1.6 The assets of Borrower are attached, levied on or otherwise
seized by legal process, and such attachment, levy or seizure is not quashed, stayed or released
within ninety (90) days of the date thereof.
5.1.7 There shall be filed any claim of lien against the Property or the
service of any notice to withhold proceeds of the Loan and the continued maintenance of such
claim of lien or notice to withhold for a period of sixty (60) days without discharge or satisfaction
thereof or provision therefor (including the posting of bonds) satisfactory to Lender.
5.1.8 The occurrence of any conveyance that is prohibited under
Section 4.6.
5.1.9 A failure to comply in any respect with the Schedule of
Performance (subject to force majeure delays under Section 6.12 below).
5.1.10 Borrower’s violation of any law or permit applicable to the
Property or Improvements (or other improvements on the Property) that is not cured within thirty
(30) days after written notice from Lender. If such failure is not curable within thirty (30) days,
Borrower may have such longer period of time as is reasonably necessary to complete the cure,
provided that Borrower has commenced to cure within the initial thirty (30)-day period and
diligently prosecutes such cure to completion.
5.1.11 Borrower’s default under any other loans secured by the
Property which is not cured within any applicable cure period in the loan documents for such loan
or such longer cure period consented to in writing by the applicable lender.
Page 263 of 851
-12-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
5.1.12 Borrower fails to comply in any material respect with the
CTCAC Reservation Letter dated _____________, 202__ (which requires, among other things,
executing and recording a CTCAC regulatory agreement), or fails to comply with the recorded
CTCAC regulatory agreement.
5.2 Remedies. The occurrence of any Default by Borrower will relieve Lender
of any obligation to make further disbursement of the Loan and shall give Lender the right to
proceed with any and all remedies set forth in the Loan Documents, including the following:
5.2.1 Lender shall have the right to declare, by written notice to
Borrower, the outstanding principal balance of the Loan, together with any accrued and unpaid
interest thereon, due and payable as of the date stated in such notice as determined by Lender in
its sole and absolute discretion. Lender may proceed to enforce payment thereof and to exercise
any or all rights afforded to Lender as a creditor and secured party under California law, including
foreclosure of the Deed of Trust. Borrower shall be obligated to pay Lender on demand, all
reasonable expenses, costs and fees (including reasonable attorneys’ fees and expenses) paid or
incurred by Lender in connection with the collection of the Loan and the preservation,
maintenance, protection, sale or other disposition of the security for the Loan, and such obligation
shall be secured by the Deed of Trust.
5.2.2 Lender shall have the right to mandamus or other suit, action or
proceeding at law or in equity to require Borrower to perform its obligations under the Loan
Documents or to enjoin acts or things that may be unlawful or in violation of the provisions of the
Loan Documents.
5.2.3 Lender may cure any default by Borrower under the Loan
Documents. Borrower shall be liable to reimburse Lender, on demand, for any funds advanced by
Lender to cure any such monetary default, together with interest thereon at the lesser of the
maximum rate permitted by law or eight percent (8%) per annum from the date of expenditure
until the date of reimbursement, and the Deed of Trust shall secure such sums owed.
5.2.4 Lender shall have the right to file for record, as Borrower’s
attorney-in-fact (which appointment is a power coupled with an interest and is irrevocable), any
notices of completion, notices of cessation of labor, notices of non-responsibility or any other
notices that Lender considers necessary to protect its security for the Loan.
5.2.5 Lender shall also be entitled to all other remedies available at
law, in equity or otherwise.
5.2.6 Prior to exercising any remedies hereunder, Lender will give
Borrower’s investor limited partner notice of default at the same time such notice is given to
Borrower provided Lender shall have been given such investor limited partner’s name and address
by Borrower in writing. The investor limited partner shall have the cure periods set forth in Section
5 above within which to cure the default and Lender will accept or reject such cure on the same
basis as if such cure had been tendered by Borrower.
5.3 Remedies Cumulative. Except as may be provided by law, no right, power
or remedy given to Lender by the terms of the Loan Documents is intended to be exclusive of any
Page 264 of 851
-13-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
other right, power or remedy, and each and every such right, power or remedy shall be cumulative
and in addition to every other right, power or remedy given to Lender by the terms of the Loan
Documents, by law or otherwise. Neither the failure nor any delay on the part of Lender to exercise
any such right, power or remedy shall operate as a waiver thereof, nor shall any single or partial
exercise by Lender of any such right, power or remedy preclude any other or further exercise of
such right, power or remedy, or any other right, power or remedy.
6. GENERAL PROVISIONS.
6.1 Relationship of Parties. Nothing contained in this Agreement shall be
interpreted by the Parties, or any other party, as creating the relationship of employer and
employee, principal and agent, partnership or any other form of joint venture between Lender and
Borrower, and Borrower shall at all times be deemed an independent contractor and shall be
completely responsible for the manner in which it performs its obligations under this Agreement.
6.2 No Claims. Nothing contained in this Agreement shall create or authorize
any claim against Lender by any Person that Borrower may have employed or with whom
Borrower may have contracted related to the purchase of materials, supplies or equipment, or the
furnishing or the performance of any work or services with respect to the construction or operation
of the Property, and Borrower shall include similar requirements in any contracts entered into for
the construction or operation of the Property.
6.3 Amendments. No modification of the terms of this Agreement shall be valid
unless made in writing and signed by the Parties.
6.4 Local, State and Federal Laws. The Borrower shall carry out the
construction of the Improvements in conformity with all applicable federal, state and local laws,
including (but only to the extent required by applicable law) the state labor standards and
prevailing wage requirements of California Labor Code Section 1720, et seq., and its implementing
regulations (“Prevailing Wage Laws”).
6.5 Indemnification for Prevailing Wages Claims. Borrower shall indemnify,
defend, protect and hold harmless Lender and City and their respective board members, council
members, officers, employees, agents, successors and assigns from and against any and all claims
(including, without limitation, any claim under California Labor Code Section 1781), losses,
proceedings, damages, causes of action, liabilities, costs and expenses, (including attorneys’ fees)
(collectively, “Claim”) arising from or in connection with, or caused by any violations of law by
Borrower or any contractor with respect to the Property, including, without limitation, any failure
to comply with Prevailing Wage Laws. If any action or proceeding be brought against Lender or
City by reason of any such claim, Borrower, upon notice from Lender or City, as applicable, shall
defend the same at Borrower’s expense with counsel satisfactory to Lender or City, as applicable.
Borrower’s duty and obligations to defend, indemnify and hold Lender and City harmless shall
survive cancellation of the Note and the reconveyance of the Deed of Trust with respect to events
occurring prior to the cancellation of the Note and reconveyance of the Deed of Trust.
6.6 Non-Liability of Lender and Lender Officials, Employees and Agents. No
member, official, employee or agent of Lender shall be personally liable to Borrower in the event
Page 265 of 851
-14-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
of any default or breach by Lender, or for any amount that may become due to Borrower, under
the terms of this Agreement.
6.7 No Third Party Beneficiaries. There shall be no third party beneficiaries of
this Agreement, other than the City and with respect to the indemnity provisions of Sections 4.8
and 6.5 hereof.
6.8 Notices, Demands and Communications. Except as otherwise required by
law, any notice, request, direction, demand, consent, waiver, approval or other communication
required or permitted to be given hereunder shall not be effective unless it is given in writing and
shall be delivered (a) by certified mail, postage prepaid, return receipt requested, or (b) by a
commercial overnight courier that guarantees next day delivery and provides a receipt, and
addressed to the parties at the addresses stated below, or at such other address as either party may
hereafter notify the other in writing as aforementioned:
Lender: Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Executive Director
Borrower: A0358 Monterey, L.P.
2000 East 4th Street, Suite 205
Santa Ana, CA 92705
Attn: Mark Bigley
With a copy to: Sabelhaus & Strain, LLP
1724 10th Street, Suite 110
Sacramento, CA 95811
Attn: Stephen A. Strain, Esq.
Service of any such notice or other communications so made shall be deemed effective on the day
of actual delivery or refusal to accept/inability to deliver, as shown by the addressee’s return receipt
if by certified mail, and as confirmed by the courier service if by courier; provided, however, that
if such actual delivery occurs after 5:00 p.m. (local time where received) or on a non-business day,
then such notice or demand so made shall be deemed effective on the first business day following
the day of actual delivery. No communications via electronic mail shall be effective to give any
notice, request, direction, demand, consent, waiver, approval or other communications hereunder.
6.9 Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California, without giving effect to conflict of laws
principles.
6.10 Attorneys’ Fees. Should any action be brought to enforce any provision
hereof, the prevailing party in such action shall be entitled to reasonable attorneys’ fees, court costs
and other litigation expenses, including expenses incurred for preparation and discovery. The right
Page 266 of 851
-15-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
to recover such fees, costs and expenses shall accrue upon the commencement of the action
regardless of whether the action is prosecuted to final judgment.
6.11 Severability. If any term of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions shall continue in full
force and effect unless the rights and obligations of the Parties have been materially altered or
abridged by such invalidation, voiding or unenforceability.
6.12 Force Majeure. A Party shall not be deemed to be in default as to any
construction obligation where delays are due to war, insurrection, strikes, lock-outs, riots, floods,
earthquakes, fires, quarantine restrictions, freight embargoes, lack of transportation, or court order,
or any other similar causes (other than lack of funds of Borrower or Borrower’s inability to finance
the construction of the Development) beyond the control or without the fault of the Party claiming
an extension of time to perform. However, no extension of time for any cause will be deemed
granted if notice by the Party claiming such extension is not sent to the other Party within ten (10)
business days from the date upon which such Party reasonably determines the delay will result in
failure to timely meet a construction obligation.
6.13 Approvals/Amendments/Subordination Agreements. Whenever this
Agreement calls for or contemplates Lender approval or consent (including approval of the form
and substance of other documents), the written approval or consent or waiver of the Executive
Director of Lender shall constitute the approval or consent of Lender. The Lender also authorizes
the Executive Director to make non-substantial changes to this Agreement, including, reasonable
extensions of time deadlines set forth in this Agreement, provided they are in writing, and to send
notices and demands, initiate and administer remedies and otherwise administer the Loan
Documents, and to execute reasonable subordination agreements required by senior construction
lenders as a condition to making their loans for the Project. The Executive Director shall have the
authority to review and approve all documents listed in Section 3.6 hereof and may prohibit
disbursement of Loan funds if the documents are not reasonably satisfactory to the Executive
Director.
6.14 Warranty Against Payment of Consideration for Agreement. Borrower
warrants that it has not paid or given, and will not pay or give, any Person, including the Lender
or the City, or any council member, board member, official or employee thereof, any money or
other consideration for obtaining this Agreement.
6.15 Refinance. Borrower shall be permitted to refinance any senior
construction or permanent loan on commercially reasonable terms in an amount not greater than
the then-outstanding principal balance of such senior loan(s) (the “Refinanced Loan”), and Lender
agrees that Lender’s Executive Director shall have the authority to execute reasonable
subordination agreements to confirm such subordination such that the Deed of Trust securing the
Loan shall remain subordinate to any such Refinanced Loan.
6.16 Time. Time is of the essence with respect to this Agreement and the
performance of each obligation contained herein.
Page 267 of 851
-16-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
6.17 Multiple Originals; Counterparts. This Agreement may be executed in
multiple originals, each of which is deemed to be an original, and may be signed in counterparts.
[Remainder of this page intentionally left blank]
[Signatures appear on next page]
Page 268 of 851
-17-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1\2808356v7.doc
WHEREAS, this Agreement has been entered into by the undersigned as of the date first
above written.
LENDER: PALM DESERT HOUSING AUTHORITY
By:
Name: Kathleen Kelly
Title: Chairman
ATTEST:
Anthony J. Mejia, Secretary
APPROVED AS TO FORM:
Robert W. Hargreaves, City Attorney
BORROWER: A0358 MONTEREY, L.P.,
A California limited partnership
By: A0358 Monterey Admin Holdings LLC
A California limited liability company
Its: Administrative General Partner
By: A0358 Montery Holdings LLC,
A California limited liability company
By:
Name:
Its:
By: ,
a
By:
Name:
Its:
Page 269 of 851
EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
PARCEL A AS SHOWN ON CERTIFICATE OF COMPLIANCE (WAIVER OF PARCEL MAP
PMW 06-03), AS EVIDENCED BY DOCUMENT RECORDED OCTOBER 25, 2006, AS
INSTRUMENT NO. 2006-0782511 OF OFFICIAL RECORDS, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
A PORTION OF PARCELS 1 AND 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED
OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, IN THE SOUTHWEST QUARTER (SW1/4) OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, CITY OF
PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINE OF
MONTEREY AVENUE; THENCE N89°58'35"E ALONG THE EAST-WEST ONE QUARTER
(E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE NORTHERLY LINE OF
PARCEL 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED OCTOBER 15, 1999, AS
INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, A DISTANCE OF 1314.94 FEET TO THE TRUE
POINT OF BEGINNING;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4)
SECTION LINE OF SAID SECTION 29, THE NORTHERLY LINE OF SAID PARCEL 2 AND
CONTINUING ALONG THE NORTHERLY LINE OF PARCEL 1 OF SAID PARCEL MAP
WAIVER NO. 99-15, A DISTANCE OF 1314.61 FEET TO THE CENTER ONE QUARTER
(C1/4) CORNER OF SAID SECTION 29, SAID POINT BEING ALSO THE NORTHEAST
CORNER OF SAID PARCEL 1;
THENCE S00°09'04"E ALONG THE NORTH-SOUTH ONE QUARTER (N-S 1/4) SECTION
LINE OF SAID SECTION 29 AND THE EASTERLY LINE OF SAID PARCEL 1, A
DISTANCE OF 489.00 FEET TO THE NORTHEAST CORNER OF THAT PARCEL OF LAND
CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT BY GRANT DEED,
RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 0308440, OF OFFICIAL RECORDS
(O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S89°58'35"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 0308440, A DISTANCE OF 1270.59 FEET TO THE
NORTHWEST CORNER OF THAT PARCEL OF LAND DESCRIBED IN SAID
INSTRUMENT NO. 0308440, SAID POINT BEING ALSO A POINT ON A NON TANGENT
Page 270 of 851
A-19-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1 \ 2808356v567.doc
CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1700.00 FEET AND TO
WHICH POINT A RADIAL LINE BEARS 576°44'54"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE, A
DISTANCE OF 392.48 FEET THROUGH A CENTRAL ANGLE OF 13°13'40";
THENCE N00°01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING.
EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11 (AVENUE 35)
AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE), ALL CONVEYED TO
THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS
INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINES
OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E ALONG THE EAST-
WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE
CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 1314.94 FEET TO THE
CENTERLINE INTERSECTION OF SAID AVENUE 35 AND GATEWAY DRIVE; THENCE
CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4)
SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A
DISTANCE OF 71.07 FEET; THENCE S00°01'25"E, A DISTANCE OF 54.00 FEET TO THE
SOUTHERLY LINE OF PARCEL NO. 2004-02.11 (AVENUE 35) CONVEYED TO THE CITY
OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO.
2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, SAID POINT BEING 54.00 FEET SOUTHERLY OF THE CENTERLINE OF
SAID AVENUE 35, AS MEASURED AT RIGHT ANGLES THERETO, SAID POINT BEING
ALSO THE TRUE POINT OF BEGINNING;
THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF CURVATURE OF A
CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 946.00 FEET;
THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF
220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A POINT OF REVERSE
CURVATURE OF A CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF
1054.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S13°19'14"W;
THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 185.57 FEET
THROUGH A CENTRAL ANGLE OF 10°05'15";
THENCE 552°30'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE OF PARCEL NO.
Page 271 of 851
A-20-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1 \ 2808356v567.doc
2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM DESERT BY GRANT
DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S00°09'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-02.12
("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF THAT
PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT
(P.S.U.S.D.) BY GRANT DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 2006-
0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA;
THENCE 589°58'34"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 2006-0308440 (P.S.U.S.D.), A DISTANCE OF
1176.61 FEET TO THE EASTERLY LINE OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE)
CONVEYED TO THE CITY OF PALM SPRINGS BY GRANT DEED, RECORDED JUNE 7,
2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ALSO A POINT ON A NON-
TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1646.00
FEET AND TO WHICH POINT A RADIAL LINE BEARS S76°15'06"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE EASTERLY LINE OF
SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE) AND THE ARC OF SAID CURVE, A
DISTANCE OF 392.80 FEET THROUGH A CENTRAL ANGLE OF 13°40'23";
THENCE N00°04'31"W ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-02.10
(GATEWAY DRIVE), A DISTANCE OF 28.94 FEET TO THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35);
THENCE N44°57'02"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 24.05 FEET TO THE POINT OF BEGINNING.
APN: 694-130-017 (Affects a portion of the land);
694-130-018 (Affects a portion of the land);
694-130-019 (Affects a portion of the land); and
694-130-020 (Affects a portion of the land)
Page 272 of 851
EXHIBIT “B”
SCOPE OF DEVELOPMENT
A 176 unit apartment complex, with 44 one-bedroom apartments, 78 two-bedroom
apartments, and 52 three-bedroom apartments (including 2 two-bedroom manager units).
352 parking spaces, of which 176 will be carport covered spaces.
The Borrower shall develop a 176 multi-family rental housing development, with 44 one-
bedroom apartments, 78 two-bedroom apartments, and 52 three-bedroom apartments (including 2
two-bedroom manager units). All capitalized terms not defined herein shall have the meaning
ascribed to such terms in the Agreement,
The Development shall conform to plans approved by the City, including all conditions
and mitigation measures imposed by the City in connection with the entitlement/development
approval process of the City.
The Development shall be constructed on the Property (such property consisting of
approximately ____ acres of vacant land located at ____________, in the City of Palm Desert).
The Project/Development, which will be called “Crossings at Palm Desert”, will be built as a single
phase. The quality of construction shall be of a high level.
HOUSING TYPE
Crossings at Palm Desert will target families with incomes from 30% to 80% AMI and will
consist of a mix of one, two and three-bedroom units. Units will be restricted by recorded Housing
Agreements. Two (2) two-bedroom units will be used for the on-site property manager’s unit.
SITE AMENITIES
1. Resident Services Building
2. Leasing Office
a. ____________
b. ____________
3. Picnic Areas (covered)
4. Laundry Facilities
5. Tot-Lot/Playground (covered)
6. Swimming Pool(s):
- Minimum of _____ square feet and shall include pool restrooms.
7. On-Site Property Management
8. Barbecue Area(s)
9. Childcare Room
10. 352 parking spaces, of which 176 will be carport covered spaces.
Page 273 of 851
B-22-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1 \ 2808356v567.doc
CONSTRUCTION TYPE & ARCHITECTURAL GOALS
[to be provided by Borrower]
SUSTAINABLE BUILDING / GREEN BUILDING PRACTICES
[to be provided by Borrower]
UNIT AMENITIES
1. Energy Star Appliances
a. Oven/Stove
b. Refrigerator
c. Dishwasher
d. Garbage Disposal
2. Solid Surface Countertops
3. Upgraded Cabinets
4. Central Air Conditioning/Heating
5. Window Blinds
6. Carpet/Vinyl or Tile
7. Patio or Balcony
SOCIAL SERVICE PROGRAMS
1. Social Service Programs will be conducted in the Resident Services Building(s) and
available for all residents free of charge. A program coordinator will be hired, or a contract will
be executed with a local nonprofit, to provide family appropriate classes for the residents, as well
as collaborate with outside nonprofits and agencies to expand program options. Residents will
have input as to which classes and programs are offered at the center. Typically, the classes will
include the following:
[to be provided by borrower]
a. [to be provided by borrower]
The Borrower shall commence and complete the Development in accordance with the
Schedule of Performance. The Development shall conform to and shall complete and satisfy any
and all conditions from the City’s entitlement approval of Project.
I. DEVELOPMENT STANDARDS
The Improvements shall conform to all applicable Governmental Requirements, including
without limitation local subdivision, zoning, building code and other applicable ordinances,
resolutions, policies, applicable general and Specific Plans, and regulations of the City of Palm
Desert (“City Ordinances”) and the following development standards:
Page 274 of 851
B-23-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1 \ 2808356v567.doc
A. General Requirements:
1. Vehicular Access. The placement of vehicular driveways shall be
coordinated with the needs of proper street traffic flow as approved by the City in accordance with
City Ordinances. In the interest of minimizing traffic congestion, the City of Palm Desert will
control the number and location of curb breaks for access to the Site for off street parking and
truck loading. All access driveways shall require written approval of the City.
2. Building Signs. Signs shall be limited in size, subdued and otherwise
designed to contribute positively to the environment. Signs identifying the building use will be
permitted, but their height, size, location, color, lighting and design will be subject to City
approval, and signs must conform to the City Ordinances.
3. Screening. All outdoor storage of materials or equipment shall be enclosed
or screened to the extent and in the manner required by the City.
4. Landscaping. The developer shall provide and maintain landscaping
within the public rights of way and within setback area along all street frontages and conforming
to the plans as hereafter approved by the City. Landscaping shall consist of trees, shrubs and
installation of an automatic irrigation system adequate to maintain such plant material. The type
and size of trees to be planted, together with a landscaping plan.
5. Utilities. All utilities on the Property provided to service the units
constructed by developer shall be underground at developer’s expense.
6. Building Design. Buildings shall be constructed such that the
Improvements shall be of high architectural quality, and shall be effectively and aesthetically
designed and in conformance with City approvals.
7. Energy Considerations. The design of the Improvements shall include,
where feasible, energy conservation construction techniques and design, including co-generation
facilities and active and passive solar energy design. The developer shall be required to
demonstrate consideration of such energy features during the design review process and to
consistency with energy conservation provisions of the building code.
8. Site Preparation. Palm, at its cost and expense, shall prepare Property
(also sometimes referred to herein as the “Site”) for development. Such Site preparations shall
consist of the complete demolition and removal of all existing improvements if any.
9. Environmental Impact Mitigation Measures. To the extent required
under the terms of the DDLA, the developer shall implement any and all mitigation measures
and/or mitigation monitoring requirements as identified in any certified environmental document
or mitigated negative declaration certified in connection with the project.
10. Construction Fence. The developer shall install a temporary construction
chain link fence. The construction fence shall be maintained free of litter and in good repair for
the duration of its installation.
Page 275 of 851
B-24-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1 \ 2808356v567.doc
11. Development Identification Signs. Prior to commencement of
construction on the Site, the developer shall prepare and install, at its cost and expense, one sign
on the barricade around the Site which identifies the development. The sign shall be at least four
(4) feet by six (6) feet and be visible to passing pedestrians and vehicular traffic. The design of
the sign, as well as the proposed location, shall be submitted to the City and Authority for review
and approval prior to installation. The sign shall, at a minimum, include:
- Illustration of development
- Development name
- Logo of the City of Palm Desert
- List of City Council Members
- Information number
- Completion Date
B. Design Features:
The following design features are considered essential components to the Improvements:
Handicapped Units – An agreed upon number of units are to be fully handicapped
accessible in compliance with State Housing Code – Title 24 requirements.
Overall Design Quality, Materials, Colors, Design Features – Quality of design is
important, materials and colors are to be approved by City.
II. SPECIAL AMENITIES
The developer shall undertake all improvements required by the City as a condition of
development of the Site, as more particularly provided in the City approvals given for the Site.
Page 276 of 851
EXHIBIT “C”
FORM OF DEED OF TRUST
Page 277 of 851
EXHIBIT “D”
FORM OF PROMISSORY NOTE
Page 278 of 851
EXHIBIT “E”
FORM OF NOTICE OF AFFORDABILITY RESTRICTIONS
Page 279 of 851
EXHIBIT “F’
PRELIMINARY PROJECT BUDGET
Page 280 of 851
EXHIBIT “G”
FORM OF HOUSING AGREEMENT
Page 281 of 851
EXHIBIT “H”
SCHEDULE OF PERFORMANCE
Action Date / Deadline
Items 108 Relate to Borrower Actions and Requirements Prior to the Closing
1. Project Budget. The Borrower shall submit
a comprehensive Project Budget for the
Improvements.
Prior and as a condition to Closing.
2. Final Plans and Specifications. The
Borrower shall submit the Final Plans and
Specifications for Lender approval.
Prior and as a condition to Closing.
3. Building Permits. The Borrower shall
obtain the Building Permit, or permit-ready
letter, for the construction of the Improvements.
Prior and as a condition to the Closing.
4. Construction Contract. The Borrower shall
submit the stipulated sum construction contract
for the construction of the Improvements to the
Lender for approval.
Prior and as a condition to the Closing.
5. Intentionally omitted.
6. Insurance. The Borrower shall submit
evidence of insurance to the Lender.
Prior and as a condition to the Closing.
7. TCAC Tax Credit and CDLAC Bond
Applications/Award.
Obtained
8. Tax Credit Equity. All tax credit equity
must have been committed, and the initial tax
credit capital contribution shall have been
funded and available to pay the initial Project
construction costs, as shown by reasonable
evidence delivered to Lender, and all other
capital contributions that are to be used for
construction costs will be funded prior to
disbursement of the construction loan portion of
the Loan.
Prior and as a condition to Closing.
Page 282 of 851
H-31-
P6401-0001\2851077v1.doc
P6401-0001\2851076v1 \ 2808356v7.doc
Items 9-13 Relate to Requirements After the Closing
9. Closing. The Borrower shall close the Loan. Not later than December 31, 2023
10. Commencement of Construction.
Borrower shall substantially commence the
Improvements.
Not later than 90 days after the Closing.
11. Completion of Grading. Borrower shall
substantially complete the grading for the
Project.
Not later than nine (9) months following the
commencement of construction.
12. Commencement of Vertical Construction.
Borrower shall substantially commence vertical
construction.
Not later than twelve (12) months following
the commencement of construction.
13. Completion; Qualification for Certificate
of Completion. The Project shall be
completed and shall qualify for a final
Certificate of Occupancy.
Not later than April 1, 2025.
Page 283 of 851
EXHIBIT “I”
HOUSING AGREEMENT (CITY)
Page 284 of 851
DRAFT
SECURED PROMISSORY NOTE
, 2023 $7,235,000.00
Palm Desert, California
FOR VALUE RECEIVED, the undersigned, A0358 MONTEREY, L.P. a
California limited partnership (“Maker”), having its principal place of business at 2000 E.
4th Street, Suite 205, Santa Ana, CA 92705, Attn: Mark Bigley, promises to pay to the
order of the PALM DESERT HOUSING AUTHORITY (“ PDHA”), at 73-510 Fred
Waring Drive, Palm Desert, CA 92260, Attn: Jessica Gonzales, Housing Manager, or at
such other place as the holder of this Note from time to time may designate in writing, the
principal sum of SEVEN MILLION TWO HUNDRED THIRTY-FIVE THOUSAND
DOLLARS ($7,235,000.00) (the “Principal Amount”), together with interest on the unpaid
principal amount disbursed under this promissory note (“Note”) from time to time
outstanding at the “Applicable Interest Rate,” as defined below, in lawful money of the
United States of America. This Note is being delivered, and the loans evidenced hereby
are being made, pursuant to the terms of a Loan Agreement between Maker and PDHA
(“Loan Agreement”). All capitalized terms used herein which are not separately defined
herein shall have the meanings set forth therefor in the Loan Agreement.
The Principal Amount of this Note shall be disbursed as a construction loan as
described in Section 3 of the Loan Agreement. “Applicable Interest Rate” means (i) three
percent (3%) per annum, compounded monthly, from the date of this Note to the date on
which the City of Palm Desert issues a final certification of occupancy with respect to the
Project, and (ii) thereafter three percent (3%) per annum, simple interest, and (iii) with
respect to amounts not paid when due, interest from the date due until the date paid at the
lessor of (a) eight percent (8%) per annum, simple interest, or (b) the maximum rate
permitted by applicable law.
1. Payments. Payments under this Note shall be due and payable as follows:
50% of Project Net Cash Flow (“PDHA Portion”) shall be paid to PDHA on an annual
basis on June 30th after the first anniversary of issuance of a final certificate of occupancy
for the Project, and each annual anniversary thereafter (with respect to the Project Net Cash
Flow for the preceding year ending on June 30th prior to each such payment date), until
this Note has been satisfied in full. Payments shall first be applied to accrued interest, then
to remaining outstanding principal. In addition, the entire amount of outstanding principal
and accrued interest and any additional amounts which become owing hereunder shall be
paid by Maker to PDHA as of the earliest of: (i) a Default under the Loan Agreement; (ii)
as provided in Section 4 below; or (iii) , 2080 (the “Maturity Date”).
2. Secured by Deed of Trust. Repayment of this Note is secured by a deed of
trust (the “Deed of Trust”) executed by Maker for the benefit of PDHA encumbering the
property described in the Deed of Trust (the “Property” or “Site”) on which the Project is
to be developed/constructed.
Page 285 of 851
3. Prepayment. Maker shall have the right to prepay amounts owing under
this Note at any time, without premium.
4. Due on Sale or Encumbrance. In the event of any Transfer (as defined
below) of the Property, or any portion thereof or interest therein, PDHA shall have the
absolute right at its option, without prior demand or notice, to declare all sums secured
hereby immediately due and payable. As used herein, the term “Transfer” means and
includes the direct or indirect sale, transfer, conveyance, assignment, or other alienation of
the Property, or any portion thereof or interest therein, whether voluntary, involuntary, by
operation of law or otherwise, or the lease of all or substantially all of the Property or of
all or substantially all of the improvements located thereon or a transfer of the general
partner interest in Maker or transfer of control of the general partner. Transfer shall not
include the sale, transfer, assignment, pledge, hypothecation or encumbrance by Maker’s
limited partner of its partnership interest, nor shall Transfer include the removal of any
general partner of Maker by the limited partner for cause and the replacement of such
removed general partner by another person or entity in accordance with the terms of
Maker’s partnership agreement nor any other “Permitted Transfer” as such term is defined
in the Loan Agreement. “Transfer” shall not include any lease of a rental unit so long as
Trustor complies with the provisions of the Regulatory Agreement relating to such leasing
activity. Failure of Beneficiary to exercise the option to declare all sums secured hereby
immediately due and payable upon a Transfer will not constitute waiver of the right to
exercise this option in the event of any subsequent Transfer.
5. Miscellaneous.
(a) Governing Law. All questions with respect to the construction of
this Note and the rights and liabilities of the parties to this Note shall be governed by the
laws of the State of California.
(b) Attorneys’ Fees.
(i) Maker shall reimburse PDHA for all reasonable attorneys’
fees, costs and expenses, incurred by Payee in connection with the enforcement of PDHA’s
rights under this Note, including, without limitation, reasonable attorneys’ fees, costs and
expenses for trial, appellate proceedings, out-of-court negotiations, workouts and
settlements or for enforcement of rights under any state or federal statute, including,
without limitation, reasonable attorneys’ fees, costs and expenses incurred to protect
PDHA’s security and attorneys’ fees, costs and expenses incurred in bankruptcy and
insolvency proceedings such as (but not limited to) seeking relief from stay in a bankruptcy
proceeding. The term “expenses” means any expenses incurred by PDHA in connection
with any of the out-of-court, or state, federal or bankruptcy proceedings referred to above,
including, without limitation, the fees and expenses of any appraisers, consultants and
expert witnesses retained or consulted by PDHA in connection with any such proceeding.
Page 286 of 851
(ii) PDHA shall also be entitled to its attorneys’ fees, costs and
expenses incurred in any post-judgment proceedings to collect and enforce the judgment.
This provision is separate and severable and shall survive the merger of this Note into any
judgment on this Note.
(c) Entire Agreement. This Note, the Loan Agreement, the Deed of
Trust and the Regulatory Agreement required by the Loan Agreement constitute the entire
agreement and understanding between and among the parties in respect of the subject
matter of such agreements and supersede all prior agreements and understandings with
respect to such subject matter, whether oral or written.
(d) Time of the Essence. Time is of the essence with respect to every
provision hereof.
(e) Waivers by Maker. Maker waives: presentment; demand; notice of
dishonor; notice of default or delinquency; notice of acceleration; notice of protest and
nonpayment; notice of costs, expenses or losses and interest thereon; and diligence in
taking any action to collect any sums arising under this Note or in any proceeding against
any of the rights or interests in or to properties securing payment of this Note.
(f) Non-waivers. No previous waiver and no failure or delay by Maker
in acting with respect to the terms of this Note, the Loan Agreement, the Deed of Trust or
Regulatory Agreement shall constitute a waiver of any breach, default, or failure of
condition under any of them. A waiver of any term must be made in writing and shall be
limited to the express written terms of such waiver.
(g) Non-Recourse. Repayment of this Note and all other obligations of
Maker hereunder, under the Loan Agreement, Regulatory Agreement or Deed of Trust
shall be a non-recourse obligation of Maker, such that a general partner of Maker shall not
have any personal obligation to make any payments or perform any other obligations of
Maker.
(h) Cure by Limited Partner(s). PDHA hereby agrees that any cure of
any default made or tendered by Maker’s limited partner (whose name and notice address
is as set forth below in this Section 5(h)) shall be deemed to be a cure by Maker and shall
be accepted or rejected on the same basis as if made or tendered by Maker.
Investor Limited Partner Name and Notice Address:
[To Be Provided By Maker]
Page 287 of 851
MAKER:
A0358 MONTEREY, L.P.,
a California limited partnership
By: A0358 Monterey Admin Holdings LLC
A California limited liability company
Its: Administrative General partner
By:
Name:
Its:
By: A0358 Monterey Holdings LLC,
A California limited liability company
Its: Managing General Partner
By:
Name:
Its:
Page 288 of 851
DRAFT
RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Jessica Gonzales
SPACE ABOVE THIS LINE FOR RECORDER'S USE
This Document is recorded for the benefit of the Palm Desert Housing Authority and is
exempt from recording fees pursuant to Sections 6103, 27383 and 27388.1
of the California Government Code.
DEED OF TRUST AND ASSIGNMENT OF RENTS
THIS DEED OF TRUST AND ASSIGNMENT OF RENTS (this “Deed of Trust”) is dated
as of _________, 2023, and is executed by A0358 MONTEREY, L.P., a California limited
partnership (“Trustor”), in favor of FIRST AMERICAN TITLE INSURANCE COMPANY, as
“Trustee,” for the benefit of the PALM DESERT HOUSING AUTHORITY (“Beneficiary”).
Trustor IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS TO TRUSTEE IN
TRUST, WITH POWER OF SALE, that certain land in the City of Palm Desert, Riverside County,
California, described on Exhibit “A” attached hereto;
TOGETHER WITH the rents, issues and profits thereof and all leases and rental
agreements related thereto, SUBJECT, HOWEVER, to the right, power, and authority hereinafter
given to Trustor to collect and apply such rents, issues, and profits;
TOGETHER WITH all buildings and improvements of every kind and description now or
hereafter erected or placed thereon, and all fixtures, including but not limited to all gas and electric
fixtures, engines and machinery, radiators, heaters, furnaces, heating equipment, laundry
equipment, steam and hot water boilers, stoves, ranges, elevators and motors, bath tubs, sinks,
water closets, basins, pipes, faucets and other plumbing and heating fixtures, mantels, cabinets,
refrigerating plant and refrigerators, whether mechanical or otherwise, cooking apparatus and
appurtenances, and all shades, awnings, screens, blinds and other furnishings, it being hereby
agreed that all such fixtures and furnishings shall to the extent permitted by law be deemed to be
permanently affixed to and a part of the realty;
TOGETHER WITH all building materials and equipment now or hereafter delivered to the
premises and intended to be installed therein;
TOGETHER WITH all articles of personal property owned by the Trustor now or hereafter
attached to or used in and about the building or buildings now erected or hereafter to be erected on
the lands described which are necessary to the complete and comfortable use and occupancy of
such building or buildings for the purposes for which they were or are to be erected, including all
Page 289 of 851
-2-
P6401-0001\2808396v45.doc
other goods and chattels and personal property as are ever used or furnished in operating a building,
or the activities conducted therein, similar to the one herein described and referred to, and all
renewals or replacements thereof or articles in substitution therefor, whether or not the same are,
or shall be attached to the building or buildings in any manner. All of the foregoing, together with
the real property, is herein referred to as the “Property.”
For the purpose of securing (a) payment of the indebtedness evidenced by that certain
promissory note (the “Note”) of substantially even date herewith, in the stated principal sum of
Seven Million Two Hundred Thirty-Five Thousand Dollars ($7,235,000.00), executed by Trustor,
as maker, in favor of Beneficiary, as payee, and all amendments thereof; and (b) sums owing by
Trustor to Beneficiary under this Deed of Trust, Trustor agrees:
1. That it shall faithfully perform each and every covenant contained in the Note, the
Loan Agreement (“Loan Agreement”) between Trustor and Beneficiary dated substantially
concurrently herewith and the Regulatory Agreement described therein. Upon a Default under
(and as defined in) the Loan Agreement, Beneficiary may accelerate the loan evidenced by the
Note, and if not paid, may exercise any and all remedies permitted by law, including foreclosure
of this Deed of Trust.
2. To appear in and defend any action or proceeding purporting to affect the security
hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses,
including cost of evidence of title and attorneys’ fees in a reasonable sum, in any such action or
proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to
foreclose this Deed of Trust.
3. To pay before delinquency all property taxes and assessments and any other taxes
affecting the Property, including assessments on appurtenant water stock; when due, all
encumbrances, charges and liens, with interest, on the Property or any part thereof, which appear
to be prior or superior hereto (provided, however, that Trustor may dispute in good faith any such
tax or assessment after posting bond on same).
4. That should Trustor fail to make any payment or to do any act as herein provided
and such failure continues past any applicable notice and cure period, then Beneficiary, without
obligation so to do and without notice to or demand upon Trustor and without releasing Trustor
from any obligation hereof may: make or do the same in such manner and to such extent as either
may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter
upon the Property for such purposes with written notice to Trustor and subject to the rights of
tenants; appear in and defend any action or proceeding purporting to affect the security hereof or
the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any
encumbrance, charge or lien which in the judgment of either appears to be prior or superior hereto;
and, in exercising any such powers, pay necessary expenses, employ counsel and pay its reasonable
fees.
5. To pay immediately and without demand all sums so expended by Beneficiary
hereunder, or under the Note the in accordance with the terms thereof.
Page 290 of 851
-3-
P6401-0001\2808396v45.doc
6. The Trustor further covenants that it will not voluntarily create, suffer, or permit to
be created against the Property any lien or liens except for deeds of trust securing financing used
to pay for construction of the Project, as defined in the Loan Agreement (or securing refinancing
of such construction loans) or as otherwise permitted in the Loan Agreement and further that it
will keep and maintain the Property free from the claims of all persons supplying labor or materials
which will enter into the construction of any and all buildings now being erected or to be erected
on the Property, or will cause the release of or will provide a bond against any such liens within
thirty (30) days of the attachment of the lien or liens.
7. That any award of damages in connection with any condemnation for public use of
or injury to the Property or any part thereof is hereby assigned and shall be paid to Beneficiary
who may apply or release such moneys it receives in the same manner and with the same effect as
above provided for disposition of proceeds of fire or other insurance.
8. That by accepting payment of any sum secured hereby after its due date,
Beneficiary does not waive its right either to require prompt payment when due of all other sums
so secured or to declare default for failure to pay all other sums when due so secured.
9. That at any time or from time to time, without liability therefore and without notice,
upon written request of Beneficiary, and without affecting the personal liability of any person for
payment of the indebtedness secured hereby, Trustee may: reconvey any part of the Property;
consent to the making of any map or plat thereof; join in granting any easement thereon; or join in
any extension agreement or any agreement subordinating the lien or charge hereof.
10. That upon written request of Beneficiary stating that all sums secured hereby have
been paid or forgiven by Beneficiary, and upon surrender of the Note to Trustee for cancellation
and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the Property
then held hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive
proof of the truthfulness thereof. The grantee in such reconveyance may be described as “the
person or persons legally entitled thereto.”
11. That Trustor hereby absolutely and unconditionally assigns and transfers to
Beneficiary all the rents, income and profits of the Property encumbered hereby, and hereby give
to and confer upon Beneficiary the right, power and authority to collect such rent, income, and
profits, and Trustor irrevocably appoints Beneficiary Trustor’s true and lawful attorney at the
option of Beneficiary, at any time, to give receipts, releases and satisfactions and to sue, either in
the name of Trustor or in the name of Beneficiary, for all income, and apply the same to the
indebtedness secured hereby; provided, however, so long as no Default by Trustor in the payment
of any indebtedness secured hereby shall exist and be continuing beyond any applicable cure
period expressly provided therein, then, Trustor shall have the right to collect all rent, income and
profits from the Property and to retain, use and enjoy the same. Upon any such Default,
Beneficiary may at any time without notice, either in person, by agent, or by a receiver to be
appointed by a court, and without regard to the adequacy of any security for the indebtedness
hereby secured, enter upon and take possession of the Property or any part thereof, in its own name
sue for or otherwise collect such rents, issues and profits, including those past due and unpaid, and
apply the same, less costs and expenses of operation and collection, including reasonable
attorneys’ fees, upon any indebtedness secured hereby, and in such order as Beneficiary may
Page 291 of 851
-4-
P6401-0001\2808396v45.doc
determine. The entering upon and taking possession of the Property, the collection of such rents,
issues and profits and the application thereof as aforesaid, shall not cure or waive any default or
notice of default hereunder or invalidate any act done pursuant to such notice.
12. That upon a Default by Trustor under the Loan Agreement, Beneficiary may declare
all sums secured hereby immediately due and payable by delivery to Trustee of written declaration
of default and demand for sale and of written notice of default and election to cause to be sold the
Property, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit
with Trustee this Deed of Trust, the Note and all documents evidencing expenditures secured
hereby. After the lapse of such time as may then be required by law following the recordation of
the notice of default, and notice of sale having been given as then required by law, Trustee, without
demand on Trustor, shall sell the Property at the time and place fixed by it in the notice of sale,
either as a whole or in separate parcels, and in such order as it may determine, at public auction to
the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee
may postpone sale of all or any portion of the Property by public announcement at such time and
place of sale, and from time to time thereafter may postpone such sale by public announcement at
the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its deed
conveying the Property so sold, but without any covenant or warranty, express or implied. The
recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof.
Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at the
sale.
After deducting all costs, fees and expenses of Trustee and of this Trust, including
cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment
of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount
allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder,
if any, to the person or persons legally entitled thereto.
13. Beneficiary, or any successor in ownership of any indebtedness secured hereby,
may from time to time, by instrument in writing, substitute a successor or successors to any Trustee
named herein or acting hereunder, which instrument, executed by the Beneficiary and duly
acknowledged and recorded in the office of the recorder of the county or counties where the
Property is situated, shall be conclusive proof of proper substitution of such successor Trustee or
Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title
estate, rights, powers and duties. The instrument must contain the name of the original Trustor,
Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded and
the name and address of the new Trustee.
14. That this Deed of Trust applies to, inures to the benefit of, and binds all parties
hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term
Beneficiary shall mean the owner and holder, including pledgees, of the Note, whether or not
named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the
masculine gender includes the feminine and/or neuter, and the singular number includes the plural.
15. If Trustor shall sell, convey, hypothecate, transfer, encumber or alienate the
Property, or any part thereof, or any interest therein, or any interest in Trustor is transferred, or
Trustor shall be divested of title or any interest in the Property in any manner or way, whether
Page 292 of 851
-5-
P6401-0001\2808396v45.doc
voluntarily or involuntarily, without the prior written consent of the Beneficiary being first had
and obtained (if and to the extent such consent is required in the Loan Agreement or if the failure
to get such consent would be a Default) or if a Default by Trustor shall occur under the Loan
Agreement then Beneficiary shall have the right, at its option, to declare any indebtedness or
obligations secured hereby, irrespective of the maturity date specified in any note evidencing the
same, immediately due and payable.
16. That Trustor shall promptly pay when due the payments of interest, principal, and
all other charges accruing under any superior or prior trust deed, mortgage, or other instrument
encumbering the Property. Beneficiary shall have the right, but not the obligation, to cure any
defaults on any superior or prior deed of trust or promissory note secured thereby and upon curing
such default Trustor shall immediately reimburse Beneficiary for all costs and expenses incurred
thereby, together with interest thereon at the lesser of eight percent (8%) or the maximum legal
rate permitted to be charged by non-exempt lenders under the State of California, and Trustor’s
failure to pay such amount on demand shall be a breach hereof. Trustor’s breach or default of any
covenant or condition of any superior or prior trust deed, mortgage or other instrument
encumbering the Property shall be a default under this Deed of Trust, whereupon Beneficiary shall
have the right to declare all sums under the Note secured hereby immediately due and payable as
provided in the Note.
17. The undersigned Trustor requests that a copy of any Notice of Default and of any
Notice of Sale hereunder (and any other notices hereunder) be mailed to it at its address for notices
in the Loan Agreement.
18. Trustor shall not commit intentional waste with respect to the Property.
19. Beneficiary acknowledges that Trustor and the California Tax Credit Allocation
Committee have or intend to enter into, or concurrently with the execution and delivery of the
Loan Documents are entering into, a Regulatory Agreement (the “TCAC Regulatory Agreement”),
which constitutes the extended low-income housing commitment described in Section 42(h)(6)(B)
of the Internal Revenue Code, as amended (the “Code”). Beneficiary acknowledges and agrees
that, in the event of a foreclosure of its interest under the Deed of Trust or delivery by the Trustor
of a deed in lieu thereof (collectively, a “Foreclosure”), the following rule contained in Section
42(h)(6)(E)(ii) of the Code shall apply: For a period of three (3) years from the date of Foreclosure,
with respect to any unit that had been regulated by the TCAC Regulatory Agreement, (i) none of
the eligible tenants occupying those units at the time of Foreclosure may be evicted or their tenancy
terminated (other than for good cause, including but not limited to, the tenants’ ineligibility
pursuant to Section 42 of the Code), (ii) nor may any rent be increased except as otherwise
permitted under Section 42 of the Code.
Page 293 of 851
-6-
P6401-0001\2808396v45.doc
TRUSTOR:
A0358 MONTEREY, L.P.,
A California limited partnership
By: A0358 Monterey Admin Holdings LLC
A California limited liability company
Its: Administrative General Partner
By:
Name:
Its:
By: A0358 Monterey Holdings, LLC,
A California limited liability company
Its: Managing General Partner
By:
Name:
Its:
Page 294 of 851
-7-
P6401-0001\2808396v45.doc
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
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 _________________________, before me, ,
(insert name and title of the officer) 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 (Seal)
Page 295 of 851
-8-
P6401-0001\2808396v45.doc
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
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 _________________________, before me, ,
(insert name and title of the officer) 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 (Seal)
Page 296 of 851
DRAFT
EXHIBIT “A”
DESCRIPTION OF LAND
Real property in the City of Palm Desert, County of Riverside, State of California,
described as follows:
PARCEL A AS SHOWN ON CERTIFICATE OF COMPLIANCE (WAIVER OF
PARCEL MAP PMW 06-03), AS EVIDENCED BY DOCUMENT RECORDED
OCTOBER 25, 2006 AS INSTRUMENT NO. 2006-0782511 OF OFFICIAL RECORDS,
BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
A PORTION OF PARCELS 1 AND 2 OF PARCEL MAP WAIVER NO. 99-15,
RECORDED OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF
OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, IN THE SOUTHWEST
QUARTER (SW1/4) OF SECTION 29, TOWNSHIP 4 SOUTH, RANGE 6 EAST OF
THE SAN BERNARDINO MERIDIAN, CITY OF PALM DESERT, COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE
CENTERLINE OF MONTEREY AVENUE; THENCE N89°58'35"E ALONG THE
EAST-WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND
THE NORTHERLY LINE OF PARCEL 2 OF PARCEL MAP WAIVER NO. 99-15,
RECORDED OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF
OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, A
DISTANCE OF 1314.94 FEET TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER
(E-W 1/4) SECTION LINE OF SAID SECTION 29, THE NORTHERLY LINE OF SAID
PARCEL 2 AND CONTINUING ALONG THE NORTHERLY LINE OF PARCEL 1 OF
SAID PARCEL MAP WAIVER NO. 99-15, A DISTANCE OF 1314.61 FEET TO THE
CENTER ONE QUARTER (C1/4) CORNER OF SAID SECTION 29, SAID POINT
BEING ALSO THE NORTHEAST CORNER OF SAID PARCEL 1;
THENCE S00°09'04"E ALONG THE NORTH-SOUTH ONE QUARTER (N-S 1/4)
SECTION LINE OF SAID SECTION 29 AND THE EASTERLY LINE OF SAID
PARCEL 1, A DISTANCE OF 489.00 FEET TO THE NORTHEAST CORNER OF
THAT PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED
SCHOOL DISTRICT BY GRANT DEED, RECORDED APRIL 28, 2006, AS
Page 297 of 851
INSTRUMENT NO. 0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA;
THENCE S89°58'35"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF
LAND DESCRIBED IN SAID INSTRUMENT NO. 0308440, A DISTANCE OF 1270.59
FEET TO THE NORTHWEST CORNER OF THAT PARCEL OF LAND DESCRIBED
IN SAID INSTRUMENT NO. 0308440, SAID POINT BEING ALSO A POINT ON A
NON TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS
OF 1700.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS 576°44'54"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID
CURVE, A DISTANCE OF 392.48 FEET THROUGH A CENTRAL ANGLE OF
13°13'40";
THENCE N00°01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF
BEGINNING.
EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11
(AVENUE 35) AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE),
ALL CONVEYED TO THE CITY OF PALM DESERT BY GRANT DEED,
RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE
CENTERLINES OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E
ALONG THE EAST-WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID
SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A DISTANCE OF
1314.94 FEET TO THE CENTERLINE INTERSECTION OF SAID AVENUE 35 AND
GATEWAY DRIVE; THENCE CONTINUING N89°58'35"E ALONG THE EAST-
WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE
CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 71.07 FEET; THENCE
S00°01'25"E, A DISTANCE OF 54.00 FEET TO THE SOUTHERLY LINE OF PARCEL
NO. 2004-02.11 (AVENUE 35) CONVEYED TO THE CITY OF PALM DESERT BY
GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF
OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,
SAID POINT BEING 54.00 FEET SOUTHERLY OF THE CENTERLINE OF SAID
AVENUE 35, AS MEASURED AT RIGHT ANGLES THERETO, SAID POINT BEING
ALSO THE TRUE POINT OF BEGINNING;
THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF
Page 298 of 851
CURVATURE OF A CURVE CONCAVE TO THE SOUTHWEST, HAVING A
RADIUS OF 946.00 FEET;
THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE
OF SAID PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE,
A DISTANCE OF 220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A
POINT OF REVERSE CURVATURE OF A CURVE CONCAVE TO THE
NORTHEAST, HAVING A RADIUS OF 1054.00 FEET AND TO WHICH POINT A
RADIAL LINE BEARS S13°19'14"W;
THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL
NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF
185.57 FEET THROUGH A CENTRAL ANGLE OF 10°05'15";
THENCE 552°30'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE
OF PARCEL NO. 2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM
DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO.
2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE
OF CALIFORNIA;
THENCE S00°09'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-
02.12 ("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF
THAT PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED
SCHOOL DISTRICT (P.S.U.S.D.) BY GRANT DEED, RECORDED APRIL 28, 2006,
AS INSTRUMENT NO. 2006-0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA;
THENCE 589°58'34"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF
LAND DESCRIBED IN SAID INSTRUMENT NO. 2006-0308440 (P.S.U.S.D.), A
DISTANCE OF 1176.61 FEET TO THE EASTERLY LINE OF PARCEL NO. 2004-02.10
(GATEWAY DRIVE) CONVEYED TO THE CITY OF PALM SPRINGS BY GRANT
DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF
OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA,
SAID POINT BEING ALSO A POINT ON A NON-TANGENT CURVE CONCAVE TO
THE NORTHEAST, HAVING A RADIUS OF 1646.00 FEET AND TO WHICH POINT
A RADIAL LINE BEARS S76°15'06"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE EASTERLY LINE
OF SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE) AND THE ARC OF SAID
CURVE, A DISTANCE OF 392.80 FEET THROUGH A CENTRAL ANGLE OF
13°40'23";
Page 299 of 851
THENCE N00°04'31"W ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-
02.10 (GATEWAY DRIVE), A DISTANCE OF 28.94 FEET TO THE SOUTHERLY
LINE OF SAID PARCEL NO. 2004-02.11 (AVENUE 35);
THENCE N44°57'02"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35), A DISTANCE OF 24.05 FEET TO THE POINT OF
BEGINNING.
APN: 694-130-017 (Affects a portion of the land);
694-130-018 (Affects a portion of the land);
694-130-019 (Affects a portion of the land); and
694-130-020 (Affects a portion of the land)
Page 300 of 851
DRAFT
-1-
12812-0001\2731705v2.doc
RECORDING REQUESTED BY,
AND WHEN RECORDED MAIL TO:
Palm Desert Housing Authority
73-510 Fred Waring Drive
Palm Desert, CA 92260
Attn: Jessica Gonzales
SPACE ABOVE THIS LINE FOR RECORDER’S USE
This Document is recorded for the benefit of the Palm Desert Housing Authority and is
exempt from recording fees pursuant to Sections 6103, 27383 and 27388.1
of the California Government Code.
NOTICE OF AFFORDABILITY RESTRICTIONS
IMPORTANT NOTICE TO OWNERS, PURCHASERS, TENANTS, LENDERS,
BROKERS, ESCROW AND TITLE COMPANIES, AND OTHER PERSONS,
REGARDING AFFORDABLE HOUSING RESTRICTIONS ON THE REAL
PROPERTY DESCRIBED IN THIS NOTICE: RESTRICTIONS HAVE BEEN
RECORDED WITH RESPECT TO THE PROPERTY DESCRIBED BELOW WHICH
RESTRICT OCCUPANCY TO EXTREMELY LOW AND VERY LOW-INCOME
HOUSEHOLDS AND THE RENTS WHICH MAY BE CHARGED. THESE RESTRICTIONS
MAY LIMIT THE RENTS FOR EACH UNIT TO AN AMOUNT WHICH IS LESS THAN
FAIR MARKET RENT. THESE RESTRICTIONS LIMIT THE INCOME OF PERSONS AND
HOUSEHOLDS WHO ARE PERMITTED TO RENT AND OCCUPY THE UNITS.
This NOTICE OF AFFORDABILITY RESTRICTIONS (the “Notice”), is dated as of
___________, ___, 2023, and is executed by A0358 MONTEREY, L.P., a California limited
partnership (“Owner”), whose address is 2000 East 4th Street, Suite 205, Santa Ana, CA 92705,
Attn: Mark Bigley, and by the PALM DESERT HOUSING AUTHORITY (the “PDHA”) in
connection with that certain Housing Agreement between Owner and the PDHA dated
substantially concurrently herewith and recorded in the Official Records of Riverside County
substantially concurrently herewith (the “Regulatory Agreement”).
RECITALS
A. Owner owns the land described on Exhibit “A” in the City of Palm Desert, State
of California and the improvements thereon (the “Property”).
B. Owner and PDHA are entering into the Regulatory Agreement substantially
concurrently herewith.
C. Capitalized terms used herein but not defined shall have the meaning set forth as
described in the Regulatory Agreement.
Page 301 of 851
DRAFT
-2-
12812-0001\2731705v2.doc
TERMS OF NOTICE
1. Requirement for Recorded Notice. This Notice is being executed and recorded
pursuant to California Health and Safety Code Section 33334.3(f)(3)(B).
2. Regulatory Agreement. This Notice is being recorded substantially concurrently
with the recordation of the Regulatory Agreement, which is incorporated herein by reference.
3. General Recitation of Affordability Restrictions; Term. The Regulatory
Agreement restricts the occupancy of ninety-three (93) rental units on the Property to occupancy
by extremely low income households and forty-six (46) very low and low income households, as
their principal residence at an affordable rent (as more particularly described in and required by
the Regulatory Agreement), and in compliance with California Health & Safety Code Sections
50052.5(h), 50053(b), 50106 and Title 25 of the California Code of Regulations Section 6910, et.
seq., for a term commencing on the issuance of a Certificate of Occupancy by the PDHA for the
improvements required to be made by Owner to the Property under that certain Loan Agreement
between Owner and the PDHA dated substantially concurrently herewith, and continuing until
55 years thereafter. Such restrictions in the Regulatory Agreement are incorporated herein by
reference. An additional three (3) units are restricted to be used by on-site managers as their
residences.
4. Summary of Affordable Housing Restrictions. The Regulatory Agreement
restricts the occupants (tenants) of the apartments on the Property to extremely low income, very
low income and low income households and restrict the amount of rent which may be charged
for the apartment, as follows:
(a) Ninety-three (93) units shall be available to households whose income
does not exceed thirty percent (30%) of the Area Median Income (as defined below), adjusted by
family size appropriate to the unit. Such units include 5 one-bedroom units; 37 two-bedroom
units; and 51 three-bedroom units.
(b) Forty-six (46) units shall be available to households whose income does
not exceed thirty percent (59%) of the Area Median Income (as defined below), adjusted by
family size appropriate to the unit. Such units include 24 one-bedroom units; 22 two-bedroom
units; and 0 three-bedroom units.
(c) Two (2) units (all two-bedroom units) shall be used solely as manager’s
units for on-site apartment managers.
Rent Restrictions: Rent is restricted to an “affordable” rent for
extremely low income households pursuant to Section 50053(b) of the California Health &
Safety Code. As used therein, “adjusted by family size appropriate to the unit” shall have the
meaning set forth in California Health and Safety Code Section 50052.5(h).
This Notice does not contain a full description of the details of all of the terms and
conditions of the Affordable Housing Restrictions. You will need to obtain and read the
Regulatory Agreement to fully understand the restrictions and requirements which apply to the
Property.
Page 302 of 851
DRAFT
-3-
12812-0001\2731705v2.doc
IN WITNESS WHEREOF, this Notice has been executed and made effective on the day
and year first above written.
PDHA:
PALM DESERT HOUSING AUTHORITY
By:
Name:
Title: Executive Director
OWNER:
A0358 MONTEREY, L.P.,
A California limited partnership
By: A0358 Monterey Admin Holdings LLC
A California limited liability company
Its: Administrative General Partner
By: A0358 Montery Holdings LLC,
A California limited liability company
By:
Name:
Its:
By: ,
a
By:
Name:
Its:
Page 303 of 851
DRAFT
-4-
12812-0001\2731705v2.doc
State of California )
County of ___________________ )
On _________________________, before me, ,
(insert name and title of the officer) 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 (Seal)
Page 304 of 851
DRAFT
-5-
12812-0001\2731705v2.doc
State of California )
County of ___________________ )
On _________________________, before me, ,
(insert name and title of the officer)
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 (Seal)
Page 305 of 851
Exhibit “A”
Page 1 of 3
12812-0001\2731705v2.doc
EXHIBIT “A”
LEGAL DESCRIPTION OF LAND
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
PARCEL A AS SHOWN ON CERTIFICATE OF COMPLIANCE (WAIVER OF PARCEL
MAP PMW 06-03), AS EVIDENCED BY DOCUMENT RECORDED OCTOBER 25, 2006 AS
INSTRUMENT NO. 2006-0782511 OF OFFICIAL RECORDS, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
A PORTION OF PARCELS 1 AND 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED
OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, IN THE SOUTHWEST QUARTER (SW1/4) OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, CITY
OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE
CENTERLINE OF MONTEREY AVENUE; THENCE N89°58'35"E ALONG THE EAST-
WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE
NORTHERLY LINE OF PARCEL 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED
OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, A DISTANCE OF 1314.94 FEET TO
THE TRUE POINT OF BEGINNING;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W
1/4) SECTION LINE OF SAID SECTION 29, THE NORTHERLY LINE OF SAID PARCEL 2
AND CONTINUING ALONG THE NORTHERLY LINE OF PARCEL 1 OF SAID PARCEL
MAP WAIVER NO. 99-15, A DISTANCE OF 1314.61 FEET TO THE CENTER ONE
QUARTER (C1/4) CORNER OF SAID SECTION 29, SAID POINT BEING ALSO THE
NORTHEAST CORNER OF SAID PARCEL 1;
THENCE S00°09'04"E ALONG THE NORTH-SOUTH ONE QUARTER (N-S 1/4) SECTION
LINE OF SAID SECTION 29 AND THE EASTERLY LINE OF SAID PARCEL 1, A
DISTANCE OF 489.00 FEET TO THE NORTHEAST CORNER OF THAT PARCEL OF
LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT BY GRANT
DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 0308440, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S89°58'35"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 0308440, A DISTANCE OF 1270.59 FEET TO
THE NORTHWEST CORNER OF THAT PARCEL OF LAND DESCRIBED IN SAID
INSTRUMENT NO. 0308440, SAID POINT BEING ALSO A POINT ON A NON TANGENT
Page 306 of 851
Exhibit “A”
Page 2 of 3
12812-0001\2731705v2.doc
CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1700.00 FEET AND
TO WHICH POINT A RADIAL LINE BEARS 576°44'54"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE, A
DISTANCE OF 392.48 FEET THROUGH A CENTRAL ANGLE OF 13°13'40";
THENCE N00°01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING.
EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11 (AVENUE 35)
AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE), ALL CONVEYED
TO THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS
INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN,
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE
CENTERLINES OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E
ALONG THE EAST-WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION
29 AND THE CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 1314.94 FEET TO
THE CENTERLINE INTERSECTION OF SAID AVENUE 35 AND GATEWAY DRIVE;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W
1/4) SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE
35, A DISTANCE OF 71.07 FEET; THENCE S00°01'25"E, A DISTANCE OF 54.00 FEET TO
THE SOUTHERLY LINE OF PARCEL NO. 2004-02.11 (AVENUE 35) CONVEYED TO THE
CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS
INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING 54.00 FEET SOUTHERLY OF
THE CENTERLINE OF SAID AVENUE 35, AS MEASURED AT RIGHT ANGLES
THERETO, SAID POINT BEING ALSO THE TRUE POINT OF BEGINNING;
THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-
02.11 (AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF CURVATURE OF
A CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 946.00 FEET;
THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF
SAID PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A
DISTANCE OF 220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A POINT
OF REVERSE CURVATURE OF A CURVE CONCAVE TO THE NORTHEAST, HAVING A
RADIUS OF 1054.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS
S13°19'14"W;
THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 185.57
FEET THROUGH A CENTRAL ANGLE OF 10°05'15";
Page 307 of 851
Exhibit “A”
Page 3 of 3
12812-0001\2731705v2.doc
THENCE 552°30'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE OF PARCEL NO.
2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM DESERT BY GRANT
DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S00°09'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-02.12
("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF THAT
PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT
(P.S.U.S.D.) BY GRANT DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO.
2006-0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA;
THENCE 589°58'34"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 2006-0308440 (P.S.U.S.D.), A DISTANCE OF
1176.61 FEET TO THE EASTERLY LINE OF PARCEL NO. 2004-02.10 (GATEWAY
DRIVE) CONVEYED TO THE CITY OF PALM SPRINGS BY GRANT DEED, RECORDED
JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ALSO A POINT
ON A NON-TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS
OF 1646.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S76°15'06"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE EASTERLY LINE OF
SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE) AND THE ARC OF SAID CURVE, A
DISTANCE OF 392.80 FEET THROUGH A CENTRAL ANGLE OF 13°40'23";
THENCE N00°04'31"W ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-02.10
(GATEWAY DRIVE), A DISTANCE OF 28.94 FEET TO THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35);
THENCE N44°57'02"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-
02.11 (AVENUE 35), A DISTANCE OF 24.05 FEET TO THE POINT OF BEGINNING.
APN: 694-130-017 (Affects a portion of the land);
694-130-018 (Affects a portion of the land);
694-130-019 (Affects a portion of the land); and
694-130-020 (Affects a portion of the land)
Page 308 of 851
Crossings at Palm
Desert Apartments
A0358 Monterey, L.P.
Housing Agreement
Page 309 of 851
Page 310 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 311 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 312 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 313 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 314 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 315 of 851
Page 316 of 851
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Thomas Soule, Public Affairs Manager
REQUEST: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING &
BUSINESS IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
RECOMMENDATION:
1. Authorize Amendment No. 2 to El Paseo Parking and Business Improvement District (EPPBID)
contract C43370 with FG Creative in the amount of $250,000 for Fiscal Year (FY) 2023/24.
2. Authorize the City Attorney to make non-substantive changes to the contract.
3. Authorize the City Manager to execute the agreement on behalf of the City.
BACKGROUND/ANALYSIS:
On behalf of the EPPBID, the City entered into a three-year marketing contract with FG Creative
that began on July 1, 2022. FY 2023 /24 represents the second year of that agreement. Each
year, Exhibit C of the contract is updated to reflect the approved budget amount for the current
fiscal year, which is based on projected EPPBID revenues. The FY 2023/24 EPPBID budget of
$250,000 was approved by Council on June 22, 2023.
The scope of work for this contract includes:
Develop a comprehensive, strategic, and diversified media plan that promotes El Paseo
to its target audience.
Negotiate, schedule, and maintain media buys in accordance with the approved media
plan.
Provide media administrative services.
Develop and implement a monthly merchant outreach program.
Attend and present pertinent updates at the - monthly EPPBID Board meetings.
Provide monthly and quarterly reports summarizing project activities and achievements.
Submit detailed invoices to include the projects and services for the previous month's
activities.
Develop an annual branding campaign and create all graphic assets as needed to fulfill
the media plan and all outbound marketing.
Create a strategic Social Media Plan and manage all aspects of the EPPBID social media
channels.
Manage Public Relations efforts as needed on behalf of the EPPBID.
The $250,000 includes pass-through costs for all media buys, which are billed to the City at net
cost without markup by the agency.
Page 317 of 851
City of Palm Desert
Second Amendment to the EPPBID Contract with FG Creative
Page 2 of 2
Appointed Body Recommendation:
At its regular meeting on July 20, 2023, the EPPBID Board approved its annual budget of
$250,000 for FY 2023/24.
FINANCIAL IMPACT:
Funds are available in the EPPBID FY 2023/24 budget. There is no impact to the General Fund.
ATTACHMENTS:
1. Contract C43370
2. Draft Amendment No. 2 to Contract C43370
3. Amendment No.1 to Contract C43370
Page 318 of 851
Page 319 of 851
Page 320 of 851
Page 321 of 851
Page 322 of 851
Page 323 of 851
Page 324 of 851
Page 325 of 851
Page 326 of 851
Page 327 of 851
Page 328 of 851
Page 329 of 851
C43370
any other municipality, drainage district, or other local agency with jurisdiction over the location where
the Services are to be conducted, regulating water q,uality 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.
3.6. Fees and Payments.
A.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 Two
Hundred Fifty Thousand Dollars ($250,000.00) without written approval of the City Council or
City Manager, as applicable.
8.Payment of Compensation. Consultant shall :submit to City monthly invoices which provide a
detailed description of the Services including all supporting documentation, 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.
C.Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless
authorized in writing by City, or included in Exhibit "C" of this Agreement.
D.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.
3.7. Labor Code Requirements.
Prevailing Wages. Consultant is aware of the requirements of California labor Code Section 1720, et
seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq.,
("Prevailing Wage laws"), which require the payment of prevailing wage rates and the performance of
other requirements on "public works" and "maintenance" projects. If the Services are being performed
as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage
Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant
with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement.
Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or
12
Page 330 of 851
Page 331 of 851
Page 332 of 851
Page 333 of 851
Page 334 of 851
Page 335 of 851
Page 336 of 851
Page 337 of 851
Page 338 of 851
Page 339 of 851
Page 340 of 851
Page 341 of 851
Page 342 of 851
Page 343 of 851
Page 344 of 851
Contract No. C43370
Page 1 of 4
Revised 07-2023
BBK 72500.00001\32445060.1
AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT SERVICES
AGREEMENT FOR MARKETING SERVICES
BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE
1. Parties and Date.
This Amendment No 2 to the PROFESSIONAL CONSULTANT SERVICES AGREEMENT
FOR MARKETING SERVICES is made and entered into as of this 24th day of August 2023, by
and between the City of Palm Desert (“City”) and FG Creative, a Corporation, with its principal
place of business at 19725 Driscoll Road, Desert Hot Springs, CA 92241 ("Vendor"). The
City and Vendor are sometimes individually referred to herein as "Party" and collectively as
"Parties."
2. Recitals.
2.1 Agreement. The City and FG Creative have entered into an agreement entitled
“Professional Consultant Services Agreement for Marketing Services” dated June 23, 2022
(“Agreement” or “Contract”) for the purpose of retaining the services of FG Creative to provide
Marketing Services.
2.2 Amendment. The City and FG Creative desire to amend the Agreement to
establish compensation for the second year of the contract. The Parties have heretofore entered
into that Amendment No. 1 dated May 11, 2023.
3. Terms.
3.1 3.6.A Compensation 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 Exhibit "C" attached hereto and
incorporated herein by reference. The total compensation shall not exceed Two Hundred Fifty
Thousand Dollars ($250,000) without the written approval of the City Council or City Manager, as
applicable.
3.2 “Exhibit C” is hereby deleted in its entirety and replaced with “Exhibit C” attached
hereto and incorporated herein by reference.
3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all
other provisions of the Agreement remain in full force and effect and shall govern the actions of
the parties under this Amendment No. 2. From and after the date of this Amendment No. 2,
whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the
Agreement as amended by this Amendment No. 2.
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
obligations they have undertaken pursuant to this Amendment No. 2.
3.5 Severability. If any portion of this Amendment No. 2 is declared invalid, illegal, or
otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall
continue in full force and effect.
Page 345 of 851
Contract No. C43370
Page 2 of 4
Revised 07-2023
BBK 72500.00001\32445060.1
3.6 Counterparts. This Amendment No. 2 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 346 of 851
Contract No. C43370
Page 3 of 4
Revised 07-2023
BBK 72500.00001\32445060.1
SIGNATURE PAGE FOR AMENDMENT NO. 2 TO THE PROFESSIONAL CONSULTANT
SERVICES AGREEMENT FOR MARKETING SERVICES BETWEEN THE CITY OF
PALM DESERT AND FG CREATIVE
IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 to the
Professional Consultant Services Agreement for Marketing Services as of the day and
year first above written.
CITY OF PALM DESERT
By:
L. Todd Hileman
City Manager
Attest:
By:
Anthony J. Mejia
City Clerk
Approved as to form:
By:
Best Best & Krieger LLP
City Attorney
FG CREATIVE, A CORPORATION
By:
Its:
Printed Name:
By:
Its:
Printed Name:
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Page 347 of 851
Contract No. C43370
Page 4 of 4
Revised 07-2023
BBK 72500.00001\32445060.1
7. EXHIBIT “C”
7.1 COMPENSATION
• The CITY's budget for advertising and publicizing the EPPBID's facilities, services, and
events is established as part of the CITY's fiscal year budget for the period of July 1,
2023 - June 30, 2024, at $250,000. The CITY reserves the right, at any time during the
term or any extension thereof, to adjust the amount budgeted for advertising and
promotion services. Prior to performing any services or furnishing any material
contemplated by this Contract to be undertaken and furnished by FG CREATIVE, the
CITY or its designee, after conferring with FG CREATIVE, shall authorize the services
rendered and materials to be furnished, the agreed compensation to be paid for their
services, the manner of payment (lump sum or periodic progress payments), the
description and estimate of reimbursable expense, and such other matters as may be
deemed proper. Subject to the limitations and provisions set forth in this section, the
CITY shall compensate and reimburse FG CREATIVE as follows:
• The CITY will pay FG CREATIVE a flat fee of $3,250 per month to cover advertising
services in accordance with the proposal presented by FG CREATIVE as attached in the
Addendum to the EPPBID and/or any marketing mutually agreed to by the parties
hereto. The fee covers not less than 40 hours per month; such services include, but are
not limited to, meetings, account planning and service, production management, media
planning and buying, and clerical.
• FG CREATIVE will purchase media at the lowest rate available. All billings will be
submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings
or receive commissions.
• FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each
invoice shall contain, in reasonable detail, the projects and services worked on and
rendered with supporting documentation of reimbursable costs and expenses. Payment
and reimbursements provided for in this in Section 4 will be made in due course by the
City of Palm Desert.
• FG CREATIVE shall keep full and accurate books of account and records and other
pertinent data in accordance with generally accepted accounting principles reflecting all
transactions contemplated by this Contract.
7.2 RENEWAL
In the event that this Agreement is renewed pursuant to the Section titled "Term," 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, Riverside-San Bernardino-
Ontario, CA.
Page 348 of 851
Contract No. C43370
CITY OF PALM DESERT
AMENDMENT NO. 1 TO PROFESSIONAL CONSULTANT SERVICES AGREEMENT
TO MARKETING SERVICES CONTRACT No. C43370
This AMENDMENT (“Amendment”) to the FG Creative Professional Consultant Services
Agreement for Marketing Services No. C43370 is made as of May 11, 2023 (“Effective
Date”) by and between the CITY OF PALM DESERT, a municipal corporation organized
under the laws of the State of California, having a principal place of business at 73-510
Fred Waring Drive, Palm Desert, California, (the "Authority") and FG Creative, Inc., a
California Corporation with its principal place of business at 19725 Driscoll Road, Desert
Hot Springs, CA 92241 ("Consultant"). City and Consultant are sometimes individually
referred to herein as "Party" and collectively as "Parties.”
RECITALS
A. The City of Palm Desert is a municipal corporation organized under the laws
of the State of California.
B. The Consultant is engaged in the business of providing professional
marketing consulting services to public clients and has represented to the
City that the Contractor is experienced and competent in said business.
C. The City and Consultant desire to enter into this Amendment to the
Agreement.
D. The Parties entered into that certain Professional Consultant Services
Agreement for Marketing Services Contract No. C43370, by and between
the City of Palm Desert and FG Creative, Inc., dated June 23, 2022
(“Contract”), which was effective on July 1, 2022.
NOW, THEREFORE, the Parties agree to amend the Contract as follows:
Section 3.6.A Compensation shall be amended to read: “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 Two Hundred Ninety Thousand
Dollars ($290,000.00) without written approval of the City Council or City Manager, as
applicable.”
All other terms of the Contract to remain unchanged and in full force and effect.
DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19
Page 349 of 851
Contract No. C43370
IN WITNESS THEREOF, the Parties have executed this Amendment on the date
first above written.
CITY OF PALM DESERT FG CREATIVE, INC.
By: ____________________________ By: __________________________
L. Todd Hileman Stephanie Greene
City Manager Principal
Attest:
Anthony J. Mejia
City Clerk
Approved as to Form:
______________________________
Best, Best, & Krieger LLP
City Attorney
QC: MN
INSURANCE:
INITIAL REVIEW
FINAL REVIEW
DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19
Page 350 of 851
Contract No. C43370
7. EXHIBIT “C”
7.1 COMPENSATION
The CITY's budget for advertising and publicizing the EPPBID's facilities, services and events is
established as part of the CITY's fiscal year budget for the period of July 1, 2022 - June 30, 2023, at
$290,000. The CITY reserves the right, at any time during the term or any extension thereof, to adjust
the amount budgeted for advertising and promotion services. Prior to performing any services or
furnishing any material contemplated by this Contract to be undertaken and furnished by FG CREATIVE,
the CITY or its designee, after conferring with FG CREATIVE, shall authorize the services rendered and
materials to be furnished, the agreed compensation to be paid for their services, the manner of
payment (lump sum or periodic progress payments), the description and estimate of reimbursable
expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set
forth in this section, the CITY shall compensate and reimburse FG CREATIVE as follows:
The CITY will pay FG CREATIVE a flat fee of $3,500 per month to cover advertising
services in accordance with the proposal presented by FG CREATIVE as attached in the
Addendum to the EPPBID and/or any marketing mutually agreed to by the parties hereto.
The fee covers not less than 40 hours per month; such services include, but are not limited
to, meetings, account planning and service, production management, media planning and
buying, and clerical.
FG CREATIVE will purchase media at the lowest rate available. All billings will be
submitted at net costs for payment by the CITY. FG CREATIVE will not markup billings or
receive commissions.
FG CREATIVE shall bill the CITY monthly for the previous month's activities. Each invoice
shall contain, in reasonable detail, the projects and services worked on and rendered with
supporting documentation of reimbursable costs and expenses. Payment and
reimbursements provided for in this in Section 4 will be made in due course by the City of
Palm Desert.
FG CREATIVE shall keep full and accurate books of account and records and other
pertinent data in accordance with generally accepted accounting principles reflecting all
transactions contemplated by this Contract.
7.2 RENEWAL
In the event that this Agreement is renewed pursuant to the Section titled "Term," 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, Riverside-San Bernardino-Ontario, CA
DocuSign Envelope ID: 4837D720-67C4-41A7-9AA7-D8052DBD4A19
Page 351 of 851
Page 352 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 353 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 354 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 355 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 356 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 357 of 851
Page 358 of 851
Page 1 of 3
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Jessica Gonzales, Housing Manager
REQUEST: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF
PALM DESERT AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT
PALM DESERT APARTMENTS PROJECT
RECOMMENDATION:
1. Approve the attached Housing Agreement by and between the City of Palm Desert and
A0358 Monterey, a California Limited Partnership, (“Owner”), in accordance with the
conditions of approval of the development, of 176 units known as The Crossings at Palm
Desert Apartments, a multifamily rental housing project located at the southeast corner of
Dick Kelly Drive, Palm Desert, California (the “Project”).
2. Authorize the City Manager or his designee, to finalize the Housing Agreement, and the
documents described in the Agreement or otherwise deemed necessary or proper to
effectuate the Housing Agreement and conditions of approval, with such changes thereto a s
the City Manager or his designee, in consultation with the City’s legal counsel, may deem
appropriate or necessary and consistent with the purposes of the Housing Agreement and
conditions of approval, with such approval to be conclusively evidenced by th e execution and
delivery thereof.
3. Authorize the Mayor and/or City Manager or their designee, to execute and deliver, for and
in the name of the City, the Housing Agreement and other documents, as described in
Recommendation No. 2, and authorize the City Clerk to record the Housing Agreement.
BACKGROUND/ANALYSIS:
The apartment project known as “The Crossings at Palm Desert Apartments” was approved on
July 14, 2022, by the Planning Commission by adoption of Resolution No. 281 4. As part of the
project’s approval, the developer is required to enter into a Housing Agreement in order to
effectuate the conditions for an affordable housing requirement. Without this agreement in place,
the developer cannot obtain building permits.
As part of the City Council of the City of Palm Desert Resolution No. 2814, approved July 14,
2023, the apartment site was approved by the Planning Commission subject to the requirement
for the developer to restrict one hundred percent (100%) of the units for lower income
households at affordable rents.
The apartment project is now owned by A0358 Monterey, LP., and the conditions requiring
affordable housing on the site, set forth in Resolution No. 2814, run with the land. A0358
Monterey has agreed to restrict 100% of the units to be affordable as required by the condition
of approval. The apartment project will include 176 total rental units. A0358 Monterey has agreed
to make 174 of the rental units continuously available to and occupied by, or held vacant for
occupancy by, households with incomes not exceeding 80% of the area median income (“AMI”)
Page 359 of 851
City of Palm Desert
Crossings at Palm Desert Apartments Project – Housing Agreement
Page 2 of 3
in Riverside County at affordable rents. The 174 units and 2 on-site property management units
will be restricted as affordable by the various funding sources. The City’s Housing Agreement
will be restricting thirty-five (35) units to households with income not exceeding 80% AMI.
Simultaneously, the Palm Desert Housing Authority will be restricting one hundred thirty -nine
(139) units to households with incomes not exceeding 59%AMI. In aggregate, the Project will
provide 174 units restricted as affordable. The units will be restricted for 55 years, commencing
upon the issuance of a final Certificate of Occupancy for the apartment project.
Staff, therefore, recommends approval of the Housing Agreement in accordance with the
requirement of the affordable housing condition of approval.
Strategic Plan:
One of the priorities of the City of Palm Desert’s (“City”) Envision Palm Desert Strategic Plan, as
part of Land Use, Housing and Open Space, is to facilitate development of high -quality housing
for people of all income levels. This request meets that objective by diversifying the City’s
housing stock for moderate- and lower-income households.
Environment Review:
The Crossings at Palm Desert Apartments project was approved by the Palm Desert Planning
Commission (PC) under PC Resolution No. 2814 on July 14, 2022. The project was evaluated
pursuant to the requirements of the California Environmental Quality Act (CEQA). Pursuant to
the State CEQA Guidelines Section 15183, an Initial Study was prepared which concluded that
the project is consistence with the adopted Palm Desert General Plan Environmental Impact
Report (EIR) (SCH #2015081020). CEQA Guidelines Section 15183 allows for a streamlined
environmental review process for projects, which are consistent with the development density
established by existing zoning, community plan, or general plan policies for which an EIR was
certified, except as might be necessary to examine whether there are project -specific significant
effects, which are peculiar to the Project or its sites. If the above qualifications are met, as stated
in Section 15183(b), “a public agency shall limit its examination of environmental effects to those
which the agency determines, in an initial study or other analysis: (1) are peculiar to the Project
or the parcel on which the Project would be located, (2) were not analyzed as significant effects
in a prior EIR on the zoning action, general plan, or community plan, with which the Project is
consistent, (3) are potentially significant off-site impacts and cumulative impacts which were not
discussed in the prior EIR prepared for the general plan, community plan or zonin g action, or the
project’s CEQA Section 15183 Analysis, (4) are previously identified significant effects which, as
a result of substantial new information, which was not known at the time the EIR was certified,
are determined to have a more severe adverse impact than discussed in the prior EIR.” This
document has been prepared to satisfy the requirements of CEQA Guidelines Section 15183. It
analyzes the potential environmental effects of the Project and evaluates whether they were
adequately analyzed in a prior EIR such that the above-identified streamlining criteria apply. The
Project is consistent with the Palm Desert General Plan Update (General Plan Update), for which
an EIR (SCH No. 2015081020) was certified. The approval of the Housing Agreement is
consistent with the project approval and will not result in significant alterations to the project
approval. Therefore, the analysis prepared for the project satisfies the requirements of CEQA
Page 360 of 851
City of Palm Desert
Crossings at Palm Desert Apartments Project – Housing Agreement
Page 3 of 3
FINANCIAL IMPACT:
There is no direct fiscal impact on the City resulting from the approval of the Housing
Agreement.
ATTACHMENTS:
1. City Draft Housing Agreement for The Crossings at Palm Desert Apartments.
Page 361 of 851
Page 362 of 851
DRAFT
P6401-0001\2850495v1.doc
RECORDING REQUESTED BY, AND
WHEN RECORDED RETURN TO:
City of Palm Desert Housing
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Jessica Gonzales
SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY
This Document is recorded for the benefit of the City of Palm Desert and is exempt from
recording fees pursuant to Sections 6103, 27383 and 27388.1 of the California Government Code.
HOUSING AGREEMENT
by and between
the CITY OF PALM DESERT HOUSING
and
A0358 MONTEREY, L.P.
A CALIFORNIA LIMITED PARTNERSHIP
DATED AS OF _________ ____, 2023
Page 363 of 851
ARTICLE 1. DEFINITIONS AND INTERPRETATION .................................................................... 1
1.1 Definitions ................................................................................................................... 1
1.2 Rules of Construction .............................................................................................. 2
ARTICLE 2. ONGOING PROJECT OBLIGATIONS ........................................................................... 3
2.1 Project and Affordable Units .................................................................................. 3
2.2 Residential Rental Property .................................................................................... 3
2.3 80% AMI Low Income Households .................................................................... 3
2.4 Affordable Rent .......................................................................................................... 4
2.5 Rent Increases ............................................................................................................. 4
2.6 Income Recertification of Affordable Units ....................................................... 4
2.7 Lease or Occupancy Agreement ............................................................................ 5
2.8 Security Deposits ....................................................................................................... 6
2.9 Additional Information; Books and Records ..................................................... 6
2.10 Specific Performance ................................................................................................ 6
2.11 Audit .............................................................................................................................. 6
2.12 Management ................................................................................................................ 6
2.13 Management Contract ............................................................................................... 7
2.14 Binding for Term........................................................................................................ 8
ARTICLE 3. TERM AND RECORDATION ........................................................................................... 8
3.1 Term of Agreement ................................................................................................... 8
3.2 Agreement to Record ................................................................................................ 8
3.3 Suspension of Restrictions ...................................................................................... 8
ARTICLE 4. DEFAULT; REMEDIES ....................................................................................................... 8
4.1 An Event of Default .................................................................................................. 8
4.2 Option to Lease ........................................................................................................... 9
4.3 City Remedies ............................................................................................................. 9
Page 364 of 851
TABLE OF CONTENTS (cont’d)
Page
3
P6401-0001\2850495v1.doc
4.4 Action at Law; No remedy Exclusive ................................................................ 10
ARTICLE 5. GENERAL PROVISIONS .................................................................................................. 10
5.1 Limitations on Recourse ........................................................................................ 10
5.2 Maintenance, Repair, Alterations ........................................................................ 10
5.3 Notices ......................................................................................................................... 10
5.4 Relationship of Parties ............................................................................................ 11
5.5 No Claims ................................................................................................................... 11
5.6 Conflict of Interests ................................................................................................. 12
5.7 Non-Liability of Officials, Employees and Agents ........................................ 12
5.8 Unavoidable Delay; Extension of Time of Performance .............................. 12
5.9 Indemnity.................................................................................................................... 12
5.10 Rights and Remedies Cumulative ....................................................................... 12
5.11 Applicable Law ......................................................................................................... 13
5.12 Severability ................................................................................................................ 13
5.13 Legal Actions ............................................................................................................ 13
5.14 Binding Upon Successors ...................................................................................... 13
5.15 Time of the Essence ................................................................................................ 13
5.16 Approval by the City ............................................................................................... 13
5.17 Complete Understanding of the Parties ............................................................. 13
5.18 Covenants to Run With the Land ........................................................................ 13
5.19 Burden and Benefit .................................................................................................. 14
5.20 Counterparts .............................................................................................................. 14
5.21 Amendments .............................................................................................................. 14
Page 365 of 851
TABLE OF CONTENTS (cont’d)
Page
4
P6401-0001\2850495v1.doc
EXHIBIT A Legal Description of Property
EXHIBIT B Household Income Certification
EXHIBIT C Certificate of Continuing Compliance
EXHIBIT D 2023 Rental Rates
Page 366 of 851
HOUSING AGREEMENT
THIS HOUSING AGREEMENT (the “Agreement”) is dated as of ______________ ___,
2023, and is by and between the CITY OF PALM DESERT HOUSING, a public body, corporate
and politic (the “City”), and A0358 MONTEREY, L.P., A CALIFORNIA LIMITED
PARTNERSHIP (the “Owner”). City and Owner are sometimes referred to herein individually
as a “Party” and collectively as “Parties”.
RECITALS
This Agreement is predicated upon the following facts:
A. The Owner owns the property located in the City of Palm Desert, County of
Riverside, State of California, more particularly described on Exhibit “A” attached hereto (“Site”).
B. As described in Resolution No. 2814 adopted by the City’s Planning Commission,
a Precise Plan application submitted by the Owner was approved for a 176-unit multi-family
(affordable housing) development community consisting of four (4) three-story apartment
buildings, five (5) two-story apartment buildings, a single-story clubhouse, pool area, private
outdoor recreation areas, and associated parking areas on an 11-acre site ("Project").
C. The Project approvals described in Recital B, above, require that Owner execute
and record this Agreement against the Site and the Project.
D. This Agreement shall not be subordinate or subordinated to any deeds of trust or
other liens encumbering the Site or Project.
NOW, THEREFORE, in consideration of the mutual covenants and undertakings set forth
herein and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Authority and the Owner hereby agree as follows:
ARTICLE 1. DEFINITIONS AND INTERPRETATION.
1.1 Definitions.
Capitalized terms used herein shall have the following meanings unless the context
in which they are used clearly requires otherwise.
“Affordable Units” shall mean 35 of the 176 units in the Project available to and occupied
by, or held vacant for occupancy only by 80% AMI Low Income Households, and rented at an
Affordable Rent. Specifically, the Affordable Units consist of 35 units for 80% AMI Low Income
Page 367 of 851
-6-
P6401-0001\2850495v1.doc
Households. The Affordable Units will include the number of bedrooms shown on the following
table:
Bedroom Size 80% AMI Low Income Household
Affordable Units
One 15
Two 19
Three 1
Total 35
“Affordable Rent” shall mean rent for an Affordable Unit, including a Reasonable Utility
Allowance, as determined in accordance with the applicable provisions of Code Section 42 and in
a manner consistent with the maximum rents published by the TCAC.
“AMI” shall mean the area median income for Riverside County as published by the
California Department of Housing and Community Development pursuant to Health and Safety
Code Section 50052.5, or successor statute, as adjusted for family size in accordance with the state
regulations adopted pursuant to California Health and Safety Code Section 50052.5, provided,
however, that at any time the Project is subject to a CTCAC extended use agreement, CTCAC’s
rules and regulations regarding area median income shall control.”
“Code” means the Internal Revenue Code of 1986, as amended, and regulations
promulgated pursuant thereto.
“CTAC” means the California Tax Credit Allocation Committee.
“Household Size Appropriate to the Affordable Unit” shall have the meaning set forth
in California Health and Safety Code Section 50052.5(h), as amended from time to time.
“80% AMI Low Income Household” shall mean persons and families whose income does
not exceed the qualifying limits for lower income households set forth in California Health and
Safety Code Section 50079.5 and Title 25 of the California Code of Regulations, including Section
6912, as such statute and regulations may be amended from time to time.
“Reasonable Utility Allowance” shall mean a utility allowance for utilities paid by a
tenant (not including telephone, internet or cable service) utilizing the utility allowance schedule
published annually by the Housing Authority of the County of Riverside or as calculated using the
California Utility Allowance Calculator developed by the California Energy Commission and
approved by CTCAC.
“Required Covenant Period” shall mean the period commencing on the date all units in
the Project have been completed as evidenced by the City’s issuance of a final Certificate of
Occupancy for the Project, and ending as of the fifty-fifth (55th) anniversary thereof.
1.2 Rules of Construction.
Page 368 of 851
-7-
P6401-0001\2850495v1.doc
1.2.1 The singular form of any word used herein, including the terms defined
herein shall include the plural and vice versa. The use herein of a word of any gender shall include
correlative words of all genders.
1.2.2 Unless otherwise specified, references to articles, sections, and other
subdivisions of this Agreement are to the designated articles, sections, and other subdivisions of
this Agreement as originally executed. The words “hereof,” “herein,” “hereunder,” and words
of similar import shall refer to this Agreement as a whole.
1.2.3 All of the terms and provisions hereof shall be construed to effectuate the
purposes set forth in this Agreement and to sustain the validity hereof.
1.2.4 Headings or titles of the several articles and sections hereof and the table of
contents appended to copies hereof shall be solely for convenience of reference and shall not affect
the meaning, construction, or effect of the provisions hereof.
ARTICLE 2. ONGOING PROJECT OBLIGATIONS.
2.1 Project and Affordable Units.
The Owner shall develop and construct the Project on the Site in conformity with
the applicable governmental permits, approvals and the Loan Agreement. Thereafter, during the
Required Covenant Period, the Owner agrees that not less than 35 units in the Project shall be
Affordable Units, meaning that 35 of and such units shall be continually available to and occupied
by, or held vacant for occupancy only by, 80% AMI Low Income Households, and the Owner shall
use good faith efforts to give preference to military veterans. All of the rental units in the Project
shall be similarly constructed and generally constructed at the same time. All of the rental units
in the Project shall be of comparable quality. The Owner agrees that, to the extent commercially
reasonable, Affordable Units will not be underutilized. No persons shall be permitted to occupy
any Affordable Unit in excess of applicable limit of maximum occupancy set by the City’s
Municipal Code and the laws of the State of California, or by Authority Resolution HA-84 adopted
on December 14, 2017.
2.2 Residential Rental Property.
The Owner covenants to operate the Project as residential rental property. During
the Required Covenant Period, the Affordable Units will be held and used for the purpose of
providing residential living, and the Owner shall own, manage and operate, or cause the
management and operation of, the Project to provide such affordable rental housing. All of the
rental units in the Project with the exception of two (2) two-bedroom manager units will be
available for rental on a continuous basis to members of the general public and the Owner will not
give preference to any particular class or group in renting the units in the Project, except for the
above good faith preference for military veterans, and except as required under any other required
regulatory agreement for the Project. The Owner shall not convert any Affordable Unit(s) to
condominiums or cooperative ownership or sell condominium or cooperative conversion rights to
any Affordable Unit(s) during the term of this Agreement.
2.3 80% AMI Low Income Households.
Page 369 of 851
-8-
P6401-0001\2850495v1.doc
2.3.1 Income Qualification; Initial Certification. Subject to the applicable
provisions hereof, throughout the Required Covenant Period, Affordable Units will be exclusively
occupied by, or available for occupancy only by, 80% AMI Low Income Households as described
above. Prior to the rental or lease of an Affordable Unit and in accordance with Section 2.6 hereof,
the Owner will obtain and maintain on file a Household Income Certification (“Income
Certification”) substantially in the form attached hereto as Exhibit “B” and incorporated herein
by this reference for each 80% AMI Low Income Household, and shall provide copies of same to
the City at such times as the City may, from time to time, reasonably require. In addition, the
Owner will provide such further information as may reasonably be required in the future by the
City. The Income Certification shall be dated immediately prior to the applicable household’s
initial occupancy of an Affordable Unit. The Owner shall make a good faith effort to verify that
the income provided by an applicant in an Income Certification is accurate by taking any one or
more of the following steps as part of the verification process for all household members over the
age of eighteen (18) as appropriate:
(i) Obtain two (2) pay stubs for the two (2) most recent pay periods;
(ii) Obtain a true copy of an income tax return for the most recent tax year
in which a return was filed;
(iii) Obtain an income verification form from the household member’s
current employer;
(iv) Obtain an income verification form from the Social Security
Administration and/or the State Department of Social Services, or its equivalent, if the household
member receives assistance from either of those agencies;
(v) If the household member is unemployed and has no tax return, obtain
another form of independent verification; or
(vi) Obtain such other documentation as may be reasonably acceptable
pursuant to Title 25 of the California Code of Regulations or CTCAC, as amended from time to
time, to verify income.
2.3.2 Certificate of Continuing Program Compliance; Annual Report; Annual
Monitoring/Administration Fee. Throughout the Required Covenant Period, the Owner will
prepare and submit to the City, at such periodic frequency as the City might reasonably require,
but not more than once annually, a Certificate of Continuing Compliance in substantially the form
attached hereto as Exhibit “C” and incorporated herein by this reference, and executed by the
Owner. The Owner will also prepare and submit to the City on or before each anniversary date of
the commencement of the Required Covenant Period, and for the preceding calendar year, a report
in form and substance reasonably satisfactory to the City summarizing the vacancy rate of the
Project , including the number of Affordable Units held vacant for occupancy by 80% AMI Low
Income Households for such calendar year, including the number of Affordable Units rented to
military veterans.
Page 370 of 851
-9-
P6401-0001\2850495v1.doc
2.4 Affordable Rent. Throughout the Required Covenant Period, an Affordable Rent
shall be charged to the 80% AMI Low Income Household occupants of Affordable Units, as more
specifically described above.
2.5 Rent Increases. Rents for Affordable Units may be increased not more than once
per year and twelve (12) months must have elapsed since the date of the tenant’s initial occupancy
or the last rent increase. The rents charged following such an increase, or upon a vacancy and new
occupancy by an 80% AMI Low Income Household shall not exceed the Affordable Rent. The
Owner shall, consistent with applicable law, give proper written notice to tenants of all rent
increases, and upon written request, provide the City with reasonable detail concerning the amount
of and rationale for such rent increases.
2.6 Income Recertification of Affordable Units. Annually, on the anniversary date of
occupancy of an Affordable Unit by an 80% AMI Low Income Household, the Owner shall obtain
and maintain on file an annual income certification, in form and substance reasonably satisfactory
to the City (but CTCAC’s required form of income certification shall be deemed satisfactory,
together with any other information reasonably requested by the City Manager of the City), from
each household occupying an Affordable Unit, based upon the current income of each household
member over the age of eighteen (18). The Owner shall make a good faith effort to verify that the
income provided by the household is accurate in accordance with Section 2.3.1, above.
2.6.1 A rental unit occupied by a household that qualifies as an 80% AMI Low
Income Household at the time the household first occupies an Affordable Unit shall be deemed to
continue to be so occupied until a recertification of such household’s income demonstrates that
such household no longer qualifies as an 80% AMI Low Income Household. At such time as a
household ceases to qualify as an 80% AMI Low Income Household, as applicable, based on
income recertification, such Affordable Unit shall continue to be treated as a qualifying household
for purposes of Owner’s compliance with this Agreement, provided, however, that the Owner shall
designate the next available Affordable Unit (one that is not occupied by a tenant) with the same
number of bedrooms as the occupied Affordable Unit and it shall be leased to an 80% AMI Low
Income Household so that the number of Affordable Units occupied by or reserved for occupancy
by 80% AMI Low Income Households will remain constant. For purposes of this Agreement,
such designated unit will be considered an Affordable Unit if it is held vacant and available solely
for occupancy by an 80% AMI Low Income Household and, upon occupancy, the income
eligibility of the household as an 80% AMI Low Income Household is verified and the unit is
rented at the applicable Affordable Rent.
2.7 Lease or Occupancy Agreement. Prior to the rental or lease of an Affordable Unit
to an 80% AMI Low Income Household, the Owner shall require the tenant to execute a written
lease or occupancy agreement. The Owner shall maintain on file throughout the Required
Covenant Period and for a four (4) year period thereafter, the executed lease or occupancy
agreement of each tenant occupying an Affordable Unit. The form of lease or occupancy
agreement used by the Owner for the lease or rental of Affordable Units shall be that which is
reasonable and customary in affordable residential leasing. In addition, each lease or occupancy
agreement for an Affordable Unit shall (i) provide that the tenants of such Affordable Unit shall
be subject to annual recertification of income and subject to rental increases in accordance with
Sections 2.5 and 2.6 of this Agreement, and (ii) contain a provision to the effect that the Owner
Page 371 of 851
-10-
P6401-0001\2850495v1.doc
has relied on the income certification and supporting information supplied by the tenant in
determining qualification for occupancy of the Affordable Unit, and that any material misstatement
in such certification (whether or not intentional) may be cause for immediate termination of such
lease or occupancy agreement.
2.7.1 The Owner shall refrain from restricting the rental or lease of Affordable
Units on the basis of race, color, religion, sex, marital status, disability, ancestry or national origin
of any person.
2.7.2 The covenants established herein shall, without regard to technical
classification and designation, be binding for the benefit and in favor of the City, and its successors
and assigns, and shall burden and run with the Site.
2.7.3 The City is deemed to be the beneficiary of the terms and provisions of the
covenants herein, both for and in its own right and for the purposes of protecting the interests of
the community and other parties, public or private, for whose benefit these covenants running with
the land have been provided.
2.8 Security Deposits. The Owner may require security deposits on Affordable Units
in amounts which are consistent with applicable law.
2.9 Additional Information; Books and Records. The Owner shall provide any
additional information concerning the Affordable Units reasonably requested by the City . The
Owner will maintain complete and accurate records pertaining to the Affordable Units throughout
the Covenant Period and for a four (4) year period thereafter. The City shall have the right upon
written notice of no less than two (2) business days to the Owner, at any time during normal
business hours of 9:00 am to 5:00 pm, to examine of all books, records or other documents
maintained by the Owner or by any of the Owner’s agents which pertain to any Affordable Unit,
including all executed leases or occupancy agreements and all Income Certifications, and obtain
copies of any requested executed leases, occupancy agreements and Income Certifications within
ten (10) business days following such examination and the City’s written request.
2.10 Specific Performance. The Owner hereby agrees that specific enforcement of the
Owner’s agreement to comply with the allowable rent and occupancy restrictions and covenants
contained herein is one of the reasons and consideration for the City having entered into the Loan
Agreement, and that, in the event of the Owner’s breach of such requirements, potential monetary
damages to the City, as well as to existing and prospective 80% AMI Low Income Households,
would be difficult, if not impossible, to evaluate and quantify. Therefore, in addition to any other
relief to which the City may be entitled as a consequence of the breach hereof, the Owner agrees
to the imposition of the remedy of specific performance against it in the case of any event of default
by the Owner in complying with any provision of this Agreement beyond any applicable notice
and cure period.
2.11 Audit. The City shall have the right to perform an audit of the Project to determine
compliance with the provisions of this Agreement. Such audit shall not be undertaken more often
than once each calendar year. All costs and expenses associated with the audit shall be paid by
the Owner.
Page 372 of 851
-11-
P6401-0001\2850495v1.doc
2.12 Management. The Owner and/or the management agent (if not the Owner) shall
operate the Project in a manner that will provide decent, safe and sanitary residential facilities to
the occupants thereof, and will comply with provisions of this Agreement. Upon the written
request of the City, the Owner shall cooperate with the City in the periodic review (but not more
than once each calendar year) of the management practices and financial status of the Affordable
Units, which shall include a description of the means by which preference is given in good faith
to military veterans. The purpose of each periodic review will be to enable the City to determine
if the Affordable Units are being operated and managed in accordance with the requirements and
standards of this Agreement. Results of such City review shall be provided to the Owner, and, if
the City finds evidence of material noncompliance the City shall have the right to require the
Owner to make modifications that are reasonably necessary to ensure the objectives of this
Agreement are met.
2.13 Management Contract. The Owner shall cause the Project to be managed in a
prudent and business-like manner, consistent with good property management standards for other
comparable high quality, well-managed affordable rental housing projects in the City of Palm
Desert. The Owner shall be responsible for all repair and maintenance functions of the Project,
including ordinary maintenance and replacement of capital items. The Owner shall ensure
maintenance of units and common areas in accordance with local health, building and housing
codes. The Owner shall contract with an experienced property management company or property
manager, to operate and maintain the Project (“Property Manager”). Such contract shall be subject
to prior written approval by the City and shall contain a provision allowing the Owner to terminate
the contract without penalty upon no more than thirty (30) days' notice.
The Owner will develop a management plan and submit such plan to the City for reasonable
approval (the “Property Management Plan”). The Property Management Plan shall include the
following:
a. The role and responsibility of the Owner and its delegation of authority, if
any, to the Property Manager;
b. Personnel policy and staffing arrangements, including ongoing training of
staff in best practices for serving the Project tenants;
c. Plans and procedures for publicizing and achieving early and continued
occupancy;
d. Procedures for determining tenant eligibility, and selecting tenants, and for
certifying and annually recertifying household status, income and size;
e. Plans for carrying out an effective maintenance and repair program;
f. Rent collection policies and procedures;
g. Plans for enhancing tenant-management relations;
h Appeal and grievance procedures;
Page 373 of 851
-12-
P6401-0001\2850495v1.doc
i. Description of how service staff and property management staff will work
together to prevent evictions and to facilitate the implementation of reasonable accommodation
policies.
Upon a determination by the City that the Property Manager has failed to operate the
Project in accordance with the Property Management Plan, the City shall provide written notice to
the Owner specifying the Property Manager's breach of the Property Management Plan and
providing the Owner with thirty (30) days to cure the specified breach. If the Owner shall fail to
cure the specified breach within such thirty (30) day despite its good faith effort to do so, and if
such cure is of the nature to take longer than thirty (30) days, the Owner shall commence the cure
during the thirty (30) day period and complete the cure by the City’s of one hundred eighty (180)
days following the Owner’s receipt of the City’s notice, or in such other time period as the parties
may mutually agree. If the Owner has failed to cure the breach of the Property Management Plan
by the expiration of the relevant cure period, the City may immediately provide a written notice of
such failure to the Owner and the Owner shall promptly terminate the existing Property Manager
and contract with an alternative qualified management agent reasonably acceptable to the City to
operate the Project, or to make such other arrangements as the City deems reasonably necessary
to ensure performance of the functions and obligations set forth in Property Management Plan.
Notwithstanding the foregoing, any change in property management must also be approved
by California Debt Limit Allocation Committee (CDLAC), California Tax Credits (CTAC), and
the lenders and investors involved in the Project if required by such parties.
2.14 Binding for Term. It is intended by the Parties that except as otherwise expressly
provided herein, the provisions of this Agreement shall apply to the Project throughout the entire
term hereof, as established in Section 3.1 below.
ARTICLE 3. TERM AND RECORDATION.
3.1 Term of Agreement. This Agreement shall remain in full force and effect for the
Required Covenant Period, unless the Owner and the City agree, in writing, to terminate this
Agreement prior to the expiration of the Required Covenant Period. Unless terminated earlier
pursuant to the prior sentence of this Section 3.1, the Parties intend that the provisions and effect
of this Agreement and specifically of Article 2 hereof, shall remain in full force and effect for the
entire Required Covenant Period.
3.2 Agreement to Record. The Owner represents, warrants, and covenants that this
Agreement will be recorded in the real property records of Riverside County.
3.3 Suspension of Restrictions. Notwithstanding the generality of the foregoing
provisions of this Article 3 or any other provisions hereof, this Agreement and all of the terms and
restrictions contained herein shall be suspended for any period of involuntary noncompliance as a
result of unforeseen events such as fire or act of God which leaves the entire Project uninhabitable
(and the proceeds of insurance available to the Owner as a result thereof are insufficient to
reconstruct the Project), or a change in a federal or state law or an action by the federal government,
the State or a court of competent jurisdiction, after the date of recordation hereof, that prevents the
City from enforcing the provisions of this Agreement, or a condemnation or a similar event.
Page 374 of 851
-13-
P6401-0001\2850495v1.doc
ARTICLE 4. DEFAULT; REMEDIES.
4.1 An Event of Default. Each of the following shall constitute an “Event of Default”
by the Owner under this Agreement:
4.1.1 Failure by the Owner to duly perform, comply with and observe any of the
conditions, terms, or covenants of any agreement with the City concerning the Project, or of this
Agreement, if such failure remains uncured thirty (30) days after written notice of such failure
from the City to the Owner in the manner provided herein or, with respect to a default that cannot
be cured within thirty (30) days, if the Owner fails to commence such cure within such thirty (30)
day period or thereafter fails to diligently and continuously proceed with such cure to completion.
However, if a different period or notice requirement is specified under any other section of this
Agreement, then the specific provision shall control.
4.1.2 Any representation or warranty contained in this Agreement or in any
application, financial statement, certificate, or report submitted by the Owner to the City proves to
have been incorrect in any material respect when made.
4.1.3 A court having jurisdiction shall have made or rendered a decree or order:
(i) adjudging the Owner to be bankrupt or insolvent; (ii) approving as properly filed a petition
seeking reorganization of the Owner or seeking any arrangement on behalf of the Owner under the
bankruptcy laws or any other applicable debtor’s relief law or statute of the United States or of any
state or other jurisdiction; (iii) appointing a receiver, trustee, liquidator, or assignee of the Owner
in bankruptcy or insolvency or for any of its properties; or (iv) directing the winding up or
liquidation of the Owner, providing, however, that any such decree or order described in any of
the foregoing subsections shall have continued unstayed or undischarged for a period of ninety
(90) days.
4.1.4 The Owner shall have assigned its assets for the benefit of its creditors or
suffered a sequestration or attachment or execution on any substantial part of its property, unless
the property so assigned, sequestered, attached, or executed upon shall have been returned or
released within ninety (90) days after such event (unless a lesser time period is permitted for cure
hereunder) or prior to sale pursuant to such sequestration, attachment, or execution. If the Owner
is diligently working to obtain a return or release of the property and the City’s and the City’s
interests hereunder are not imminently threatened in its reasonable business judgment, then the
City shall not declare a default under this subsection.
4.1.5 The Owner shall have voluntarily suspended its business or dissolved.
4.1.6 The seizure or appropriation of all or, in the reasonable opinion of the City,
a substantial part of the Project, except for condemnation or similar event initiated by the City or
any other governmental agency or authority.
4.1.7 There should occur any default declared by any lender under any loan
document or deed of trust relating to any loan made in connection with the Project, which loan is
secured by a deed of trust or other instrument affecting the Project, and such default remains
uncured following the expiration of any applicable cure period.
Page 375 of 851
-14-
P6401-0001\2850495v1.doc
4.2 Option to Lease. Upon the occurrence and during the continuance of an Event of
Default, to cause the Project to meet the requirements of this Agreement, the Owner hereby grants
to the City the option to lease up to all of the Affordable Units as necessary to achieve compliance
with the provisions of Article 2 of this Agreement and for the purpose of subleasing such units in
accordance with the requirements of this Agreement. The amount of rental to be paid for such
rental units following the exercise of the option by the City shall be equal to the Affordable Rent.
Any rental paid under any such sublease shall be paid to the City without obligation to pay any
such rent to the Owner during the pendency of the Owner’s default. Upon acceptance by the City
of a cure by Owner or by owner’s limited partner, any lease for Affordable Units with the City
shall terminate and the City shall assign all subleases to Owner.
4.3 City Remedies. The City shall have the right to mandamus or other suit, action or
proceeding at law or in equity to require the Owner to perform its obligations and covenants under
this Agreement or to enjoin acts or things which may be unlawful or in violation of the provisions
hereof, provided that in any such case the City has first provided the required notice of any alleged
default and the Owner has had the requisite opportunity to cure pursuant to Section 4.1.1, above.
4.4 Action at Law; No Remedy Exclusive. The City may take whatever action at law
or in equity as may be necessary to enforce performance and observance of any obligation,
agreement or covenant of the Owner under this Agreement. No remedy herein conferred upon or
reserved by the City is intended to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law, in equity or by statute. No delay
or omission to exercise any right or power accruing upon any default shall impair any such right
or power or shall be construed to be a waiver of such right or power, but any such right or power
may be exercised from time to time and as often as the City may deem expedient. In order to
entitle the City to exercise any remedy reserved to it in this Agreement, it shall not be necessary
to give any notice, other than such notice as may be herein otherwise expressly required or
required by law to be given.
ARTICLE 5. GENERAL PROVISIONS.
5.1 Limitations on Recourse. Notwithstanding anything to the contrary contained in
this Agreement, except in the event of fraud, intentional waste, or illegal acts, or with regard to
any indemnity obligations imposed upon the Owner under the terms of this Agreement, (i) no
partner, member, officer or director, as applicable, of the Owner (each, an “Owner Affiliate”)
shall have any direct, indirect or derivative personal liability for the obligations of the Owner under
this Agreement, and (ii) the City shall not exercise any rights or institute any action against any
Owner Affiliate directly, indirectly or derivatively for the payment of any sum of money that is or
may become payable hereunder.
5.2 Maintenance, Repair, Alterations. The Owner shall maintain and preserve the
Project in good condition and repair and in a prudent and businesslike manner. The Owner shall
comply with all laws, ordinances, rules, regulations, covenants, conditions, restrictions, and orders
of any governmental authority now or hereafter affecting the conduct or operation of the Project
or any part thereof or requiring any alteration or improvement to be made thereon. The Owner
shall not commit, suffer, or permit any act to be done in, upon, or to the Project or any part thereof
Page 376 of 851
-15-
P6401-0001\2850495v1.doc
in violation of any such laws, ordinances, rules, regulations, or orders. The Owner hereby agrees
that the City may conduct from time to time (but not more than once per calendar year unless an
Event of Default is ongoing) through representatives, upon reasonable notice of no less than forty-
eight (48) hours and subject to the rights of tenants, on-site inspections and observation of: (i) the
maintenance and repair of the Project, including a review of all maintenance and repair programs
and practices and all reports and records pertaining thereto, including records of expenditures
relating thereto; and (ii) such other facilities, practices, and records of the Owner relating to the
Affordable Units as the City reasonably deems to be necessary or appropriate in order to monitor
the Owner’s compliance with the provisions of this Agreement.
5.3 Notices. All notices (other than telephone notices), certificates or other
communications (other than telephone communications) required or permitted hereunder shall be
sufficiently given and should be deemed given when personally delivered, when sent by telegram,
or when sent by facsimile (if confirmed by sending a copy of such transmission by mail the same
calendar day), or forty-eight (48) hours following mailing by registered or certified mail, postage
prepaid, or twenty-four (24) hours following transmission of such notice by express mail, Federal
Express or similar commercial carrier, addressed as follows:
If to the City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Housing Division
Phone: (760) 346-0611
Fax: (760) 341-6372
If to the Owner:
A0358 Monterey, L.P.
2000 East 4th Street, Suite 205
Santa Ana, CA 92705
Attn: Mark Bigley
Phone: (714) 323-4006
Email: mbigley@uhcllc.net With a copy to:
Sabelhaus & Strain, LLP
1724 10th Street, Suite 110
Sacramento, CA 95811
Attn: Stephen A. Strain, Esq.
Phone: (916) 444-0286
Email: sstrain@sabelhauslaw.com
5.4 Relationship of Parties. Nothing contained in this Agreement shall be interpreted
or understood by any of the Parties, or by any third persons, as creating the relationship of
employer and employee, principal and agent, limited or general partnership, or joint venture
Page 377 of 851
-16-
P6401-0001\2850495v1.doc
between the City and the Owner or the Owner’s agents, employees or contractors, and the Owner
shall at all times be deemed an independent contractor and shall be wholly responsible for the
manner in which it or its agents, or both, perform the services required of it by the terms of this
Agreement for the operation of the Project. The Owner has and hereby retains the right to exercise
full control of employment, direction, compensation and discharge of all persons assisting in the
performance of services hereunder. In regards to the on-site operation of the Project, the Owner
shall be solely responsible for all matters relating to payment of its employees, including
compliance with Social Security, withholding and all other laws and regulations governing such
matters. The Owner agrees to be solely responsible for its own acts and those of its agents and
employees.
5.5 No Claims. Nothing contained in this Agreement shall create or justify any claim
against the City by any person the Owner may have employed or with whom the Owner may have
contracted relative to the purchase of materials, supplies or equipment, or the furnishing or the
performance of any work or services with respect to the operation of the Affordable Units.
5.6 Conflict of Interests. No member, official or employee of the City shall make any
decision relating to this Agreement which affects his or her personal interests or the interests of
any corporation, partnership or association in which he or she is directly or indirectly interested.
No officer or employee of the Owner shall acquire any interest in conflict with or inimical to the
interests of the City.
5.7 Non-Liability of Officials, Employees and Agents. No member, official, employee
or agent of the City shall be personally liable to the Owner, or any successor in interest, in the
event of any default or breach by the City or for any amount which may become due to the Owner
or successor in connection with this Agreement or on any obligation of the City under the terms
of this Agreement.
5.8 Unavoidable Delay; Extension of Time of Performance. In addition to specific
provisions of this Agreement, performance of a construction obligation by any Party hereunder
shall not be deemed to be in default where it is due to an “Unavoidable Delay.” “Unavoidable
Delay” means a delay due to the elements (including unseasonable weather), fire, earthquakes or
other acts of God, strikes, pandemics, labor disputes, lockouts, shortages of construction materials
experienced generally in the construction industry in the local area, acts of the public enemy, riots,
insurrections or governmental regulation of the sale or transportation of materials, supply or labor;
provided, however, that to the extent a delay is caused by any other reason that the Owner
reasonably believes is beyond its control, the Owner may request, on a case-by-case basis, that the
City excuse any such delay as an Unavoidable Delay and the City shall make its determinations as
to whether such delay constitutes an Unavoidable Delay using its reasonable judgment.
5.9 Indemnity. The Owner shall indemnify, defend and hold harmless the Authority
and City, and all of their respective officials, employees and agents (with counsel reasonably
satisfactory to the Authority and/or City, as applicable), against any costs, liabilities, damages or
judgments arising from claims or litigation of any nature whatsoever brought by third parties and
directly or indirectly arising from the Owner’s ownership or operation of the Project, or the
Owner’s performance of its obligations under this Agreement, and in the event of settlement,
compromise or judgment hold the Authority and City free and harmless therefrom.
Page 378 of 851
-17-
P6401-0001\2850495v1.doc
Notwithstanding the foregoing, the indemnity provisions contained in this Section 5.9 shall not
apply with respect to any costs, liabilities, damages or judgments arising directly or indirectly from
the City’s rental of units within the Project as described in Section 4.2 hereof. The provisions of
this Section 5.9 shall survive the term of this Agreement.
5.10 Rights and Remedies Cumulative. Except as otherwise expressly stated in this
Agreement, the rights and remedies of the Parties are cumulative, and the exercise or failure to
exercise one or more of such rights or remedies by either Party shall not preclude the exercise by
it, at the same time or different times, of any right or remedy for the same default or any other
default by the other Party. No waiver of any default or breach by the Owner hereunder shall be
implied from any omission by the City to take action on account of such default if such default
persists or is repeated, and no express waiver shall affect any default other than the default
specified in the waiver, and such wavier shall be operative only for the time and to the extent
therein stated. Waivers of any covenant, term, or condition contained herein shall not be construed
as a waiver of any subsequent breach of the same covenant, term or condition. The consent or
approval by the City to any act by the Owner requiring further consent or approval shall not be
deemed to waive or render unnecessary the consent or approval to or of any subsequent similar
act. The exercise of any right, power, or remedy shall in no event constitute a cure or a waiver of
any default under this Agreement, nor shall it invalidate any act done pursuant to notice of default,
or prejudice the City in the exercise of any right, power, or remedy hereunder or under any
agreements ancillary or related hereto.
5.11 Applicable Law. This Agreement shall be interpreted under and pursuant to the
laws of the State of California.
5.12 Severability. If any term, provision, covenant or condition of this Agreement is
held in a final disposition by a court of competent jurisdiction to be invalid, void or unenforceable,
the remaining provisions shall continue in full force and effect unless the rights and obligations of
the Parties have been materially altered or abridged by such invalidation, voiding or
unenforceability.
5.13 Legal Actions. In the event any legal action is commenced to interpret or to enforce
the terms of this Agreement or to collect damages as a result of any breach thereof, the Party
prevailing in any such action shall be entitled to recover against the Party not prevailing all
reasonable attorneys’ fees and costs incurred in such action (including all legal fees incurred in
any appeal or in any action to enforce any resulting judgment), as awarded by a court of competent
jurisdiction.
5.14 Binding Upon Successors. This Agreement shall be binding upon and inure to the
benefit of the permitted heirs, administrators, executors, successors in interest and assigns of each
of the Parties. Any reference in this Agreement to a specifically named Party shall be deemed to
apply to any successor, heir, administrator, executor or assign of such Party who has acquired an
interest in compliance with the terms hereof or under law.
5.15 Time of the Essence. In all matters under this Agreement, time is of the essence.
Page 379 of 851
-18-
P6401-0001\2850495v1.doc
5.16 Approval by the City. Any approvals required under this Agreement to be made
by the Authority shall be made by the City Manager of the City or his or her designee. Any such
approval or consent shall not be unreasonably withheld, conditioned, delayed or made, except
where it is specifically provided herein that another standard applies, in which case the specified
standard shall apply.
5.17 Complete Understanding of the Parties. This Agreement and the attached Exhibits
constitute the entire understanding and agreement of the Parties with respect to the matters
described herein.
5.18 Covenants to Run With the Land. The Owner hereby subjects the Project to the
covenants, reservations, and restrictions set forth in this Agreement. The City and the Owner
hereby declare their express intent that the covenants, reservations, and restrictions set forth herein
shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s
successors in title to the Project; provided, however, that on the termination of this Agreement said
covenants, reservations and restrictions shall expire. Each and every contract, deed or other
instrument hereafter executed covering or conveying the Project or any portion thereof shall
conclusively be held to have been executed, delivered and accepted subject to such covenants,
reservations and restrictions, regardless of whether such covenants, reservations and restrictions
are set forth in such contract, deed or other instruments. No breach of any of the provisions of this
Agreement shall defeat or render invalid the lien of a mortgage or deed of trust made in good faith
and for value encumbering the Property or any interest of the Owner therein.
5.19 Burden and Benefit. The City and the Owner hereby declare their understanding
and intent that: (i) the burden of the covenants, reservations, restrictions, and agreements set forth
herein touch and concern the Property and the Project, in that Owner’s legal interest in the Project
is rendered less valuable thereby, (ii) the covenants, reservations, restrictions, and agreements set
forth herein directly benefit the Property and the Project (a) by enhancing and increasing the
enjoyment and use of the Project by certain 80% AMI Low Income Households, the intended
beneficiaries of such covenants, reservations, restrictions, and agreements, (b) by making possible
the obtaining of advantageous financing for the Property and the Project, and (c) by furthering the
public purposes advanced by the City, and (iii) the covenants, reservations, restrictions and
agreements set forth herein shall run with the Property and shall be binding for the benefit of and
enforceable by the City and its successors and assigns for the entire Term of this Agreement.
5.20 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be an original, but all of which shall constitute one and the same instrument.
5.21 Amendments. This Agreement may be amended only by the written agreement of
the City and the Owner.
Page 380 of 851
-19-
P6401-0001\2850495v1.doc
[Remainder of this page intentionally left blank]
[Signatures appear on next page]
Page 381 of 851
-20-
P6401-0001\2850495v1.doc
WHEREFORE, the undersigned has executed this Agreement as of the date first-above
written.
OWNER:
A0358 MONTEREY, L.P.,
A California limited partnership
By: A0358 Monterey Admin Holdings LLC
A California limited liability company
Its: Administrative General Partner
By:
Name:
Its:
By: A0358 Monterey Holdings LLC,
A California limited liability company
By:
Name:
Its:
CITY:
CITY OF PALM DESERT,
a public body, corporate and politic
By:
Name: Kathleen Kelly
Its: Mayor
ATTEST:
Anthony J. Mejia, City Clerk
APPROVED AS TO FORM:
Robert W. Hargreaves, City Attorney
Page 382 of 851
-21-
P6401-0001\2850495v1.doc
CALIFORNIA ALL-PURPOSE 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 ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
Page 383 of 851
-22-
P6401-0001\2850495v1.doc
CALIFORNIA ALL-PURPOSE 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 ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
Page 384 of 851
-23-
P6401-0001\2850495v1.doc
CALIFORNIA ALL-PURPOSE 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 ____________, 2023, before me, ________________________________________________, (insert name and title of the officer)
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 (Seal)
Page 385 of 851
EXHIBIT “A”
LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Palm Desert, County of Riverside, State of California, described as
follows:
PARCEL A AS SHOWN ON CERTIFICATE OF COMPLIANCE (WAIVER OF PARCEL MAP
PMW 06-03), AS EVIDENCED BY DOCUMENT RECORDED OCTOBER 25, 2006 AS
INSTRUMENT NO. 2006-0782511 OF OFFICIAL RECORDS, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
A PORTION OF PARCELS 1 AND 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED
OCTOBER 15, 1999, AS INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.)
COUNTY OF RIVERSIDE, IN THE SOUTHWEST QUARTER (SW1/4) OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, CITY OF
PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINE OF
MONTEREY AVENUE; THENCE N89°58'35"E ALONG THE EAST-WEST ONE QUARTER
(E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE NORTHERLY LINE OF
PARCEL 2 OF PARCEL MAP WAIVER NO. 99-15, RECORDED OCTOBER 15, 1999, AS
INSTRUMENT NO. 1999-457541, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, A DISTANCE OF 1314.94 FEET TO THE TRUE
POINT OF BEGINNING;
THENCE CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4)
SECTION LINE OF SAID SECTION 29, THE NORTHERLY LINE OF SAID PARCEL 2 AND
CONTINUING ALONG THE NORTHERLY LINE OF PARCEL 1 OF SAID PARCEL MAP
WAIVER NO. 99-15, A DISTANCE OF 1314.61 FEET TO THE CENTER ONE QUARTER
(C1/4) CORNER OF SAID SECTION 29, SAID POINT BEING ALSO THE NORTHEAST
CORNER OF SAID PARCEL 1;
THENCE S00°09'04"E ALONG THE NORTH-SOUTH ONE QUARTER (N-S 1/4) SECTION
LINE OF SAID SECTION 29 AND THE EASTERLY LINE OF SAID PARCEL 1, A
DISTANCE OF 489.00 FEET TO THE NORTHEAST CORNER OF THAT PARCEL OF LAND
CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT BY GRANT DEED,
RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 0308440, OF OFFICIAL RECORDS
(O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
THENCE S89°58'35"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 0308440, A DISTANCE OF 1270.59 FEET TO THE
NORTHWEST CORNER OF THAT PARCEL OF LAND DESCRIBED IN SAID
INSTRUMENT NO. 0308440, SAID POINT BEING ALSO A POINT ON A NON TANGENT
CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1700.00 FEET AND TO
WHICH POINT A RADIAL LINE BEARS 576°44'54"W;
Page 386 of 851
A-25-
P6401-0001\2850495v1.doc
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE ARC OF SAID CURVE, A
DISTANCE OF 392.48 FEET THROUGH A CENTRAL ANGLE OF 13°13'40";
THENCE N00°01'26"W, A DISTANCE OF 100.00 FEET TO THE POINT OF BEGINNING.
EXCEPT PARCEL NO. 2004-02.12 ("C" STREET), PARCEL NO. 2004-02.11 (AVENUE 35)
AND A PORTION OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE), ALL CONVEYED TO
THE CITY OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS
INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
COMMENCING AT THE WEST ONE QUARTER (W1/4) CORNER OF SECTION 29,
TOWNSHIP 4 SOUTH, RANGE 6 EAST OF THE SAN BERNARDINO MERIDIAN, COUNTY
OF RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ON THE CENTERLINES
OF MONTEREY AVENUE AND AVENUE 35; THENCE N89°58'35"E ALONG THE EAST-
WEST ONE QUARTER (E-W 1/4) SECTION LINE OF SAID SECTION 29 AND THE
CENTERLINE OF SAID AVENUE 35, A DISTANCE OF 1314.94 FEET TO THE
CENTERLINE INTERSECTION OF SAID AVENUE 35 AND GATEWAY DRIVE; THENCE
CONTINUING N89°58'35"E ALONG THE EAST-WEST ONE QUARTER (E-W 1/4)
SECTION LINE OF SAID SECTION 29 AND THE CENTERLINE OF SAID AVENUE 35, A
DISTANCE OF 71.07 FEET; THENCE S00°01'25"E, A DISTANCE OF 54.00 FEET TO THE
SOUTHERLY LINE OF PARCEL NO. 2004-02.11 (AVENUE 35) CONVEYED TO THE CITY
OF PALM DESERT BY GRANT DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO.
2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, SAID POINT BEING 54.00 FEET SOUTHERLY OF THE CENTERLINE OF
SAID AVENUE 35, AS MEASURED AT RIGHT ANGLES THERETO, SAID POINT BEING
ALSO THE TRUE POINT OF BEGINNING;
THENCE N89°58'35"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 782.06 FEET TO THE POINT OF CURVATURE OF A
CURVE CONCAVE TO THE SOUTHWEST, HAVING A RADIUS OF 946.00 FEET;
THENCE EASTERLY AND SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF
220.33 FEET THROUGH A CENTRAL ANGLE OF 13°20'40" TO A POINT OF REVERSE
CURVATURE OF A CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF
1054.00 FEET AND TO WHICH POINT A RADIAL LINE BEARS S13°19'14"W;
THENCE SOUTHEASTERLY ALONG THE SOUTHERLY LINE OF SAID PARCEL NO.
2004-02.11 (AVENUE 35) AND THE ARC OF SAID CURVE, A DISTANCE OF 185.57 FEET
THROUGH A CENTRAL ANGLE OF 10°05'15";
THENCE 552°30'03"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 27.78 FEET TO THE WESTERLY LINE OF PARCEL NO.
2004-02.12 ("C" STREET) CONVEYED TO THE CITY OF PALM DESERT BY GRANT
DEED, RECORDED JUNE 7, 2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL
RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF CALIFORNIA;
Page 387 of 851
A-26-
P6401-0001\2850495v1.doc
THENCE S00°09'04"E ALONG THE WESTERLY LINE OF SAID PARCEL NO. 2004-02.12
("C" STREET), A DISTANCE OF 365.78 FEET TO THE NORTHERLY LINE OF THAT
PARCEL OF LAND CONVEYED TO THE PALM SPRINGS UNIFIED SCHOOL DISTRICT
(P.S.U.S.D.) BY GRANT DEED, RECORDED APRIL 28, 2006, AS INSTRUMENT NO. 2006-
0308440, OF OFFICIAL RECORDS (O.R.) COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA;
THENCE 589°58'34"W ALONG THE NORTHERLY LINE OF THAT PARCEL OF LAND
DESCRIBED IN SAID INSTRUMENT NO. 2006-0308440 (P.S.U.S.D.), A DISTANCE OF
1176.61 FEET TO THE EASTERLY LINE OF PARCEL NO. 2004-02.10 (GATEWAY DRIVE)
CONVEYED TO THE CITY OF PALM SPRINGS BY GRANT DEED, RECORDED JUNE 7,
2007, AS INSTRUMENT NO. 2007-0374053, OF OFFICIAL RECORDS (O.R.) COUNTY OF
RIVERSIDE, STATE OF CALIFORNIA, SAID POINT BEING ALSO A POINT ON A NON-
TANGENT CURVE CONCAVE TO THE NORTHEAST, HAVING A RADIUS OF 1646.00
FEET AND TO WHICH POINT A RADIAL LINE BEARS S76°15'06"W;
THENCE NORTHWESTERLY AND NORTHERLY ALONG THE EASTERLY LINE OF
SAID PARCEL NO. 2004-02.10 (GATEWAY DRIVE) AND THE ARC OF SAID CURVE, A
DISTANCE OF 392.80 FEET THROUGH A CENTRAL ANGLE OF 13°40'23";
THENCE N00°04'31"W ALONG THE EASTERLY LINE OF SAID PARCEL NO. 2004-02.10
(GATEWAY DRIVE), A DISTANCE OF 28.94 FEET TO THE SOUTHERLY LINE OF SAID
PARCEL NO. 2004-02.11 (AVENUE 35);
THENCE N44°57'02"E ALONG THE SOUTHERLY LINE OF SAID PARCEL NO. 2004-02.11
(AVENUE 35), A DISTANCE OF 24.05 FEET TO THE POINT OF BEGINNING.
APN: 694-130-017 (Affects a portion of the land);
694-130-018 (Affects a portion of the land);
694-130-019 (Affects a portion of the land); and
694-130-020 (Affects a portion of the land)
Page 388 of 851
EXHIBIT “B”
HOUSEHOLD INCOME CERTIFICATION
(Attached.)
Page 389 of 851
B-28-
P6401-0001\2850495v1.doc
Page 390 of 851
B-29-
P6401-0001\2850495v1.doc
Page 391 of 851
B-30-
P6401-0001\2850495v1.doc
Page 392 of 851
EXHIBIT “C”
CERTIFICATE OF CONTINUING COMPLIANCE
Page 393 of 851
C-32-
P6401-0001\2850495v1.doc
Page 394 of 851
C-33-
P6401-0001\2850495v1.doc
Page 395 of 851
C-34-
P6401-0001\2850495v1.doc
Page 396 of 851
EXHIBIT “D”
2023 RENTAL RATES
TO BE INSERTED
Page 397 of 851
Page 398 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 399 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 400 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 401 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 402 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 403 of 851
Page 404 of 851
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Níamh M. Ortega, Assistant City Clerk
REQUEST: APPOINT AMY LAWRENCE TO THE COACHELLA VALLEY ECONOMIC
PARTNERSHIP’S BOARD OF DIRECTORS
RECOMMENDATION:
Appoint Amy Lawrence to the Coachella Valley Economic Partnership’s Board of Directors.
BACKGROUND/ANALYSIS:
Coachella Valley Economic Partnership (CVEP) consists of representatives of the nine valley
cities, unincorporated areas, tribal governments, regional governments, and a variety of
businesses throughout the Coachella Valley. The City of Palm Desert provides an annual
financial contribution to CVEP and maintains a seat on its Board of Directors.
Councilmember Harnik recently resigned from her position on the Board. Mayor Kelly and City
Manager Hileman recommended Deputy Director of Economic Development Lawrence for
appointment to the position. Staff requests that the City Council approve the appointment.
FINANCIAL IMPACT:
There is no direct financial impact associated with this action.
Page 405 of 851
Page 406 of 851
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Thomas Soule, Public Affairs Manager
REQUEST: APPROVE OUT-OF-STATE TRAVEL FOR PUBLIC AFFAIRS MANAGER
FOR STRATEGIC MARKETING PLANNING IN AUSTIN, TX
RECOMMENDATION:
Authorize out-of-state travel for the Public Affairs Manager to travel to Austin, TX, for an in -depth
strategic planning session with the City’s creative agency, Idea Peddler.
BACKGROUND/ANALYSIS:
Each year, the Public Affairs Manager meets for several days with the City’s creative agency to
strategically plan the City’s tourism ad campaign and marketing approach for the fiscal year. In
the past, one or two team members from the agency have traveled to Palm Desert for these
meetings.
The team working on the City’s account has now grown much larger to accommodate an
expanded scope of work. The agency’s contract with the City includes funds for travel, but it
seemed imprudent to use those funds to bring five or more people to Palm Desert to meet with
one staff member. Instead, staff seeks authorization to send the Public Affairs Manager to Austin
to meet with the entire Idea Peddler team. The cost of sending one staff member to Austin is
approximately $1,300, versus the cost of bringing five Idea Peddler team members to Palm
Desert, which would be more than $6,000.
We understand that virtual meetings have advantages such as convenience, cost savings, and
the ability to connect remote team members. This works well in our weekly meetings throughout
the year as we monitor the status of the many projects that go into the City's marketing program.
And because collaborative brainstorming sessions often thrive in a physical setting, we've found
that our initial planning meetings are much more successful and efficient face-to-face.
Whiteboard sessions, sticky notes, and visual aids are more effective in person, enabling the
team to map out complex strategies visually. In-person meetings also offer opportunities for team
building beyond just the task at hand, which helps lay a solid foundation for working well together
remotely for the rest of the year.
FINANCIAL IMPACT:
Travel costs have been budgeted as part of the Idea Peddler contract as outlined above.
Page 407 of 851
Page 408 of 851
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Niamh Ortega, Assistant City Clerk
REQUEST: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN
THE 2024 LEADERSHIP COACHELLA VALLEY PROGRAM
RECOMMENDATION:
Approve an expenditure in the amount of $1,200 for Mayor Pro Tem Quintanilla to participate in
the 2024 Leadership Coachella Valley program.
BACKGROUND/ANALYSIS:
Mayor Pro Tem Quintanilla applied and was selected to participate in the upcoming 10-month
Leadership Coachella Valley (LCV) program beginning in September 2023. This program was
not identified as a potential expenditure at the time of budget approval for F iscal Year 2023/24;
however, funds are available in the City Council’s local meeting account.
LCV is described as a program designed to identify, motivate, and develop future community
leaders and is organized by the Palm Springs Chamber of Commerce. Once a month from
September to June, participants attend an all-day seminar in which important community topics
and issues are reviewed and discussed. Commitment to participating in Leadership Coachella
Valley centers on involvement and participation, and attendance requirements must be fulfilled
to graduate. Full program information can be found at www.leadershipcv.org.
FINANCIAL IMPACT:
The cost to participate in LCV is $1,200 per person, which includes ten full-day sessions,
lunches, refreshments, class materials, field trips, graduation dinner, and ceremony. Funds are
available in Account No. 1104110 -4312000.
Page 409 of 851
Page 410 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 411 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 412 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 413 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 414 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 415 of 851
Page 416 of 851
Page 1 of 2
JOINT
CITY OF PALM DESERT AND PALM DESERT HOUSING AUTHORITY
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Celina Cabrera, Management Analyst
REQUEST: CITY COUNCIL AND HOUSING AUTHORITY: APPROVE DOWN
PAYMENT ASSISTANCE LOAN FROM THE LOW -AND MODERATE-
INCOME HOUSING ASSET FUND TO CONTINUE AN AFFORDABLE
HOUSING COST FOR THE HOMEOWNERS AT 75-476 WILDFLOWER
LANE
RECOMMENDATION:
1. Approve the issuance of a silent down-payment assistance loan by the Palm Desert
Housing Authority pursuant to the Desert Rose Sales Program and standard documents,
in the amount of $30,000 to continue an affordable housing cost for the homeowners at
75-476 Wildflower Lane pursuant to California Health and Safety Code Section 50052.5
as a qualified low- or moderate- income household from the Low- and Moderate- Income
Housing Asset Fund.
2. Authorize the release of the City’s Deed of Trust recorded December 7, 2012, securing
the promissory note for the existing silent down payment BEGIN loan.
3. Authorize waiving the interest on the homeowner’s existing City Loan from the original
date the City’s Deed of Trust recorded on December 7, 2012, through the date of release.
4. Approve the Palm Desert Housing Authority’s Housing Asset Fund down payment
assistance loan term to be forgivable 30 years from the original City Loan recording of
December 7, 2012, so long as all terms of the loan are met by the homeowners.
5. Authorize Director of Finance to transfer $30,000 from the Homebuyer Down Payment
Assistance Account No. 8734699-4400100 and reimburse the City in BEGIN Fund.
6. Authorize the City Manager/Executive Director, or designee, to execute, release, and
finalize any documents necessary to effectuate the actions taken herewith.
BACKGROUND/ANALYSIS:
In 2012, the current homeowners of a Desert Rose home located at 75 -476 Wildflower Lane
(“Owner’) were identified as qualified buyers under the Affordable First-Time Homebuyer
Program (“Program”). To help qualify for the purchase, a gap financing loan in the amount of
$30,000 to assist with the affordability of the home. Prior to dissolution, the former Palm Desert
Redevelopment Agency (“PDRDA"), funded such gap loans. During the dissolution period of
PDRDA, the agencies’ funding sources were placed on hold and the City shifted in the interim
to an alternate funding source, the BEGIN Program, to sustain the Program.
Traditionally the Desert Rose Sale Program loans have been set up as 30-year principal and
interest forgivable loans, so long as the homeowners maintain the home as their primary
residence and do not default at any point of the term of the restrictive agreement and loan.
Page 417 of 851
City of Palm Desert
Approve Down Payment Assistance Loan from Housing Asset Fund
Page 2 of 2
However, post dissolution of the PDRDA, Desert Rose homebuyers were instead provided a
down payment assistance loan funded through the City’s BEGIN program , which is not
forgivable. This Owner purchased the only home in Desert Rose funded under the BEGIN
program.
Recently, the Owner contacted the Housing Division for information related to the property
wherein it was discovered that prior to close of escrow, correspondence stating that the down
payment assistance loan they were entering into was forgivable and that it generally adhered to
the terms of the Desert Rose Sales Program. However, the documents recorded are not
reflective of the Desert Rose Program loan as described in the City correspondence issued to
the Owners. Given the timing of the Owners’ purchase of their property, i t appears that some
correspondence was issued with the understanding that PDRDA funds would remain available;
by the time the Owner had to close escrow, the Program funding had already been placed on
hold and shifted to the alternate City’s BEGIN Program funding.
In accordance with the intent of the Desert Rose program, staff is requesting to provide a new
silent down-payment assistance loan in the amount of $30,000. The loan will provide that the
term be forgivable 30 years from the original City Loan recording of December 7, 2012, so long
as all terms of the loan are met by the Owner. Should the Owner default, or sell, the loan amount
and interest from December 7, 2012, will become payable immediately. The City Loan in the
amount of $30,000, will be released and the interest on the Owner’s existing City Loan will be
waived from the original date the City’s Deed of Trust recorded on December 7, 2012, through
the date of release.
Staff recommends approval of the actions described herein to memorialize the original intent by
providing a forgivable down payment assistance loan to ensure an affordable housing cost
pursuant to the Desert Rose Sales Program.
FINANCIAL IMPACT:
A new $30,000 Homebuyer Down Payment Assistance Loan pursuant to the Desert Rose Sales
Program and documents will be recorded for the identified property Owner, funded from Account
No. 8734699-4400100. The current $30,000 BEGIN loan will be released and funds will be
transferred to the City BEGIN Fund. The fiscal impact to the Housing Asset Fund will be the
loans, any cost in preparing and recording the necessary documents, and the amount of interest
waived on the homeowner’s existing City Loan from the original date the City’s Deed of Trust
recorded on December 7, 2012, through the date of release.
Page 418 of 851
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Christina Canales, Land Development Technician
REQUEST: RELEASE GRADING BOND AND REDUCE THE FAITHFUL
PERFORMANCE AND LABOR AND MATERIALS BONDS FOR TR 37993,
MONTAGE
RECOMMENDATION:
1. Reduce the Faithful Performance and Labor and Materials Bonds for TR 37993.
2. Release the Grading Bond in the full amount of $186,906.
BACKGROUND/ANALYSIS:
On June 10, 2021, the City Council approved by Resolution No. 2021 -34, a request by GHA
Montage P.D., LLC (30875 Date Palm Drive, Suite C -2, Cathedral City, CA 92234) to construct
63 single family homes located at the intersection of Julie Drive and Shephe rd Lane.
Bonds in the amount of $1,444,082 for Faithful Performance and $722,041 for Labor and
Materials were submitted for public improvements, inclusive of street improvements, storm drain,
a traffic signal modification, and striping, at the time of final tract map approval. A separate
Grading bond was submitted in the amount of $186,906.
The applicant has made a request to reduce the Faithful Performance ($1,444,082) and Labor
and Materials ($722,041) bonds by ninety percent (90%). Staff has verified that the request is
reasonable since the improvements are completed and the remaining portion of the
improvements have been documented in a list provided to the developer. The reduced Faithful
Performance bond amount will be $144,408.20 and $72,204.10 for the reduce Labor and
Materials bond. The Grading bond will be released in its full amount of $186,906.
Staff recommends that the City Council authorize the reduction of the Faithful Performance bond
and Labor and Materials bonds for public improvements by 90% and release the Grading bond
in its entirety.
FINANCIAL IMPACT:
There is no financial impact for the City currently. The applicant will return to City Council to
request the acceptance of all improvements and the release of the remaining bonds once final
improvements are completed. When public improvements are fully accepted by City Council
action the City will then have an obligation to maintain the public improvements.
ATTACHMENTS:
1. Faithful Performance Bond
2. Labor and Materials Bonds
3. Grading Bond
Page 419 of 851
Page 420 of 851
Page 421 of 851
Page 422 of 851
Page 423 of 851
Page 424 of 851
Page 425 of 851
Page 426 of 851
Page 427 of 851
Page 428 of 851
Page 429 of 851
Page 430 of 851
Page 431 of 851
Page 432 of 851
Page 433 of 851
Page 434 of 851
Page 435 of 851
Page 436 of 851
Page 437 of 851
Page 438 of 851
Page 1 of 4
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: AWARD A CONTRACT TO DESERT AIR CONDITIONING, INC., FOR
HEATING, VENTILATION, AND AIR CONDITIONING PREVENTATIVE
MAINTENANCE IN THE ANNUAL AMOUNT OF $106,028 (PROJECT NO.
MFA00008)
RECOMMENDATION:
1. Waive any minor proposal irregularities and award a contract to Desert Air Conditioning, Inc.,
for the Heating, Ventilation and Air Conditioning (HVAC) Preventative Maintenance in the
annual amount of $106,028.
2. Authorize extra work and services for HVAC repairs and replacements up to the annual
amount of $75,000.
3. Authorize the City Manager or designee to approve up to two, one-year contract
amendments/extensions.
4. Authorize the City Manager or designe e to review and approve change orders for any
unforeseen circumstances per Section 3.30.170 of Ordinance No. 1392.
5. Authorize the City Attorney to make any necessary, non-monetary changes to the Agreement
and the authorize the City Manager to execute said agreement.
BACKGROUND/ANALYSIS:
Currently, City staff maintains 14 sites that require HVAC preventative maintenance that keep
the units in good working order; repairs that are necessary during their service life, and ultimately
the replacement of units that are no longer functioning or are beyond repair. Because of the
harsh desert climate, it is imperative that these units be kept in the best condition possible to
prevent loss of environmental control, and to reduce overall energy consumption. This service
requires a company that can efficiently and effectively respond to the City’s needs.
Staff developed and posted a Request for Proposals (RFP) for the HVAC Preventative
Maintenance, Repair, and Replacement Project on OpenGov (the City’s online public bidding
portal) on July 11, 2023, with a due date of July 28, 2023.
On the provided Proposal Fee Sheet included with this report, the proposers provided a quarterly
charge, and then the total contract price over the initial three-year term. Each proposer was also
required to include hourly rate pricing for extra work that may be required during the course of
the contract, which would also apply to any labor rates for new equipment installations. The
mark-up rate for new units was also set in the RFP at the cost of the unit plus 15%
Page 439 of 851
City of Palm Desert
Award Contract for HVAC Preventative Maintenance
Page 2 of 4
The scope of work outlined specific items of work that needed to be accomplished during each
preventative maintenance service call for each type of equipment and a complete list of the entire
HVAC inventory.
City facilities with HVAC units are shown on the table below:
FACILITY AIR CONDITIONING UNITS EVAPORATIVE COOLERS
City Hall-This includes the Sheriff’s
Substation, Parkview Office Complex,
and the State Building.
45
Civic Center Park-This includes Civic
Center Snack Bar, and the Irrigation
Pump Facility
1 1
Palm Desert Aquatic Center 3
Portola Community Center 5
Portola Desert Historical Society 2
Henderson Building 7
The Artist’s Center 1-Chiller System
Fire Station No. 33 10
Fire Station No. 67 4 2
Fire Station No. 71 3 2
Corporation Yard 9 5
Hovley Soccer Park 1
Freedom Park 1
iHUB 11
A mandatory pre-proposal meeting was held on July 19, 2023. Four vendors attended the pre -
proposal meeting; however, one proposer, RivCo, arrived 40 minutes late. Due the late arrival,
a protest letter was received. Staff consulted with City attorney who indicated that the late arrival
had no effect on the proposal, so staff continued with the RFP process.
Staff received and reviewed the three qualified proposals and rated them per the evaluation
guidelines established in the RFP (clarity and conformance, experience, performance, content
of the proposal, and references) as follows:
Proposer Location Proposed Amount Ranking
Desert Air Conditioning, Inc. Palm Springs, CA $318,084 1
RivCo Mechanical Services Indio, CA $298,573 2
Pacific West Industries, Inc. Anaheim, CA $221,079 3
References for each contractor provided favorable comments to their ability to start and
complete projects on time, provide good communication, and customer service. However, some
of the references for Pacific West Industries were not positive . In addition, RivCo Mechanical
Services did not meet the terms of the RFP because they were late attending the mandatory
pre-proposal meeting and were subsequently not present for all site visits.
Page 440 of 851
City of Palm Desert
Award Contract for HVAC Preventative Maintenance
Page 3 of 4
Desert Air Conditioning, Inc., was ranked 1 based on experience and conformity to the RF P
however, the cost was the highest of the three proposals. Therefore, a fter the qualification
selection of Desert Air Conditioning, staff negotiated a lower price that resulted in an overall
contract savings of $8,532 ($2,844 annually).
Based on the rank, staff recommends awarding the contract to Desert Air Conditioning, Inc.
Desert Air Conditioning has served the City for the past five years and has always provided
excellent service. They are prompt in scheduling the current preventative maintenance, diligent
in communicating with City staff any repair issues that are observed, responsive to repair calls
24/7, usually being onsite within two hours. At times when the un it was not repairable, they have
provided portable units to allow facilities to remain open and occupied at no charge. For these
reasons, staff considers Desert Air Conditioning the best value.
FINANCIAL IMPACT:
The approved Public Works Operations Budget for Fiscal Year (FY) 2023-24 includes $196,000
specifically for HVAC maintenance, repairs, and replacements under various Operations and
Capital Improvements Accounts. Therefore, there is no additional financial impact to the general
fund.
The following is the estimated allocation budget for each account; however, this does not
necessarily mean the full amount will be allocated to each budget nor that the full amount will be
spent:
Account No. Description FY 23/24
Budget
Annual
Amount
3-Year
Contract
1104330-4331000 Corporation Yard $12,500.00 $7,532.00 $22,596.00
1104340-4331000 City Hall $25,000.00 $20,000.00 $60,000.00
1104340-4331000 Palm Desert Historical Society $5000.00 $852.00 $2,556.00
1104344-4331000 Portola Community Center $7,500.00 $1,552.00 $4,656.00
1104610-4331000 Civic Center Park $1,000.00 $1,056.00 $3,168.00
1104611-4331000 Hovley Soccer Park $1,500.00 $964.00 $2,892.00
1104611-4331000 Freedom Park $1,500.00 $532.00 $1,596.00
1104800-4388500 Artist’s Center. $5,000.00 $4,960.00 $14,880.00
2304220-4331000 Fire Station No 33 $10,000.00 $7,256.00 $21,768.00
2304220-4331000 Fire Station No 67 $10,000.00 $2,428.00 $7,284.00
2304220-4331000 Fire Station No. 71 $10,000.00 $1,960.00 $5,880.00
2424195-4331101 Aquatic Center $15,000.00 $1,564.00 $4,692.00
4254430-4395000 iHUB $10,000.00 $6,432.00 $19,296.00
5104195-4369500 Sheriff Substation $43,000.00 $25,688.00 $77,064.00
5104195-4369601 Parkview Complex Building $17,000.00 $10,000 $30,000.00
5104195-4369602 State Building $10,000.00 $10,000 $30,000.00
5104195-4369800 Henderson Building $12,500.00 $3,252.00 $9,756.00
TOTAL $196,500.00 $106,028.00
$ 318,084.00
Page 441 of 851
City of Palm Desert
Award Contract for HVAC Preventative Maintenance
Page 4 of 4
ATTACHMENTS:
1. Proposal Protest Letter
2. Desert Air Conditioning, Inc. Proposal
3. Desert Air Conditioning, Inc. Revised Proposal Fee Sheet
4. Desert Air Hourly Rate Sheet
5. Desert Air Conditioning, Inc. Maintenance Service Contract
6. Payment and Performance Bonds
7. Rivco Mechanical Services Proposal
8. Pacific West Industries, Inc. Proposal
Page 442 of 851
Page 443 of 851
Page 444 of 851
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
RESPONSE DEADLINE: July 28, 2023 at 4:00 pm
Report Generated: Wednesday, August 2, 2023
Desert Air Conditioning, Inc. Proposal
CONTACT INFORMATION
Company:
Desert Air Conditioning, Inc.
Email:
tina@desertairps.com
Contact:
Tina Shaw
Address:
590 S. Williams Road
Palm Springs, CA 92264
Phone:
N/A
Website:
www.desertairps.com
Page 445 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 2
Submission Date:
Jul 27, 2023 12:48 PM
ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 26, 2023 4:56 PM by Todd Shaw
Addendum #2
Confirmed Jul 26, 2023 4:56 PM by Todd Shaw
QUESTIONNAIRE
1. Proposal (WITHOUT COST)*
Pass
Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organ ized and
include page numbers for all pages in the proposal. The proposal shall be uploaded here, in the following order and shall include:
A. Cover Letter
1. This letter should briefly introduce the firm, summarize the firm’s general qualifications, include an executive summary of
the specific approach which will be used to deliver the work scope; and identify the individual(s) name, address and phone
number authorized to negotiate Agreement terms and compensation.
B. Experience and Technical Competence
Page 446 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 3
1. Background: Provide history of the firm’s experience which specifically addresses the individual or firm’s experience with
similar Service as described in this RFP. Include any experience with fully occupied facilities, and secure facilities, such as
Fire Stations.
2. References: The proposal shall include a list of recently completed projects that are similar in scope and function to this
RFP. Provide a description of the project, client name, and the name, title, and telephone number of the primary contact
person.
C. Firm Staffing and Key Personnel
1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as
well as your firm’s capacity to provide additional personnel as needed.
2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and
responsibility of each individual.
3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.
4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor
that is anticipated to perform each function.
D. Proposed Method to Accomplish the Work
1. Describe the technical and management approach to providing the Services to the City. Proposer should take into account
the scope of the Services, and general functions required. Include a draft first year schedule of tasks, milestones, and
deliverables that will provide for timely provision of the Services. In reviewing the scope of Services and goals described
herein, the Proposer may identify additional necessary tasks and is invited to bring these to the City’s attention within the
discussion of its proposed method to accomplish the work.
City_of_Palm_Desert_Maintenace_Proposal_Letter_07262023.docBid_Bond_If_Required.pdf
2. Fee Proposal*
Fail
Page 447 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 4
Please provide a lump-sum, not-to-exceed fee proposal for quarterly preventative maintenance work, itemizing each facility. This fee
proposal will be extrapolated out for a yearly total preventative maintenance price. The fee proposal shall also include hourly rates for
all personnel for “Additional Work” (as such term is defined in the proposed Agreement attached herein).
Proposal_Price_Sheet.pdf
3. Non-Collusion Declaration*
Pass
The undersigned declares:
I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.
The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organizat ion, or
corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited any other Bidder
to put in a false or sham bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone
else to put in a sham bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by ag reement,
communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost
element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, d irectly or
indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative
thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent there of to
effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.
Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liabil ity company,
limited liability partnership, or any other entity, hereby represents that he or she has fu ll power to execute, and does execute, this
declaration on behalf of the Bidder.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Confirmed
4. Enter your valid CA Contractors State License Board (CSLB) number*
Pass
Page 448 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 5
Please enter your License Number here. This will be verified against the state database.
276586
Click to Verify Value will be copied to clipboard
5. Enter your California Department of Industrial Relations (DIR) Registration number*
Pass
Please enter your Public Works Contractor DIR Number. This will be verified against the state database.
1000001209
Click to Verify Value will be copied to clipboard
6. Type of Business*
Pass
C Corporation (if corporation, two signatures are required)
7. Litigation*
Pass
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5)
years (or type "N/A").
N/A
8. Changes to Agreement*
Pass
The City standard professional services agreement contract is included as an attachment herein. The Proposer shall identify any
objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are
Page 449 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 6
identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect
theCity's decision to enter into an Agreement.
N/A
9. No Deviations from the RFP*
Pass
In submitting a proposal in response to this RFP, Proposer is certifying that it takes no exceptions to this RFP including, b ut not limited
to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted here, and may be reason for re jection of the
proposal. As such, Proposer is directed to carefully review the proposed Agreement and, in particular, the insurance and indemnification
provisions therein (or type "N/A").
Maximum response length: 5000 characters
N/A
10. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualificati ons,
education, and professional licensing.
Resume.doc
11. List the Signatory(s) Authorized to Sign and Bind an Agreement.*
Pass
(If two (2) signatures are required, include the following information for both signatories)
A. Full Name
B. Title
C. Physical Business Address
Page 450 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 7
D. Email Address
E. Phone Number
Todd Shaw
Vice President
590 Williams Road
Palm Springs, CA 92264
tshaw@desertairps.com
760-323-3383
12. Certification of Proposal: The undersigned hereby submits its proposal and, by doing so, agrees to furnish services in accord ance
with the Request for Proposal (RFP), and to be bound by the terms and conditions of the RFP.*
Pass
Confirmed
Page 451 of 851
590 WILLIAMS RD • PALM SPRINGS, CA 92264
(760) 323-3383 • FAX (760) 323-8983
www.desertairps.com
LICENSE NO. 276586
July 26, 2023
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
RFP # 2023-RFP-204 HVAC PREVENTIVE MAINTENANCE, REPAIR AND REPLACEMENT
PROJECT # 564-24
Brian Dierken Service technician classified as a Tradesman with Local 364, hired May
2018, has been in trade 10 plus years
Andrew Veres Service technician classified as a Tradesman with Local 364, hired August
2021, has been in trade 10 plus years
Bert Perez Service technician classified as a Journeymen with Local 364, hired
February 2004, has been in the trade over 20 years
Manny Montalvo Service technician classified as a Journeyman with local 364, hired June
of 2004, has been in trade over 20 years
Albert Valerio Technician assistant, classified as a 2nd year apprentice with local 364,
hired February 2021, has been in trade approximately 5 years
Lance Harvey Technician assistant, classified as a Tradesman with local 364, hired in
May of 2023, has been in trade approximately 5 years
Johnathan Marruquin Technical assistant, classified as a Tradesman with local 364, hired in
June of 2023, has been in trade approximately 1 year
Page 452 of 851
Page 453 of 851
Page 454 of 851
Page 455 of 851
Page 456 of 851
Page 457 of 851
Page 458 of 851
Page 459 of 851
Page 460 of 851
590 WILLIAMS RD • PALM SPRINGS, CA 92264
(760) 323-3383 • FAX (760) 323-8983
www.desertairps.com
LICENSE NO. 276586
2023 RATE CHANGES
Monday through Friday 8:00 am to 6:00 pm $108.00 per hour
Monday through Friday after 6:00 pm $148.00 per hour
Saturday and Sunday 8:00 am to 5:00 pm $148.00 per hour
Saturday and Sunday after 5:00 pm $216.00 per hour
Holidays $216.00 per hour
Page 461 of 851
Page 462 of 851
Contract No. ___________
1
Revised 07-2023
BBK 72500.00001\32374943.1
CITY OF PALM DESERT
MAINTENANCE SERVICES AGREEMENT
1. Parties and Date. This Agreement is made and entered into this 15th day of September,
2023, by and between the City of Palm Desert, a municipal corporation organized under the laws
of the State of California with its principal place of business at 73-510 Fred Waring Drive, Palm
Desert, California 92260-2578, (“City”) and Desert Air Conditioning, Inc., a Corporation, with
its principal place of business at 590 S. Williams Road, Palm Springs, CA 92264 ("Vendor").
The City and Vendor are sometimes individually referred to herein as "Party" and collectively as
"Parties."
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.
The City is a public agency of the State of California and is in need of services for the
following project:
HVAC Preventative Maintenance, Repair, and Replacement Project
Project No. MFA00008
(hereinafter referred to as “the Project”).
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 September 15, 2023, to June
30, 2024, 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 2 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
Services shall be performed by Contractor or under its supervision. Contractor will determine the
Page 463 of 851
Contract No. ___________
2
Revised 07-2023
BBK 72500.00001\32374943.1
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 Martín Alvarez, 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 Todd Shaw, or
his or her designee, to act as its representative for the performance of this Agreement
(“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent
and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s
Representative shall supervise and direct the Services, using his best skill and attention, and shall
be responsible for all means, methods, techniques, sequences, and procedures and for the
satisfactory coordination of all portions of the Services under this Agreement.
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 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
Page 464 of 851
Contract No. ___________
3
Revised 07-2023
BBK 72500.00001\32374943.1
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 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
Page 465 of 851
Contract No. ___________
4
Revised 07-2023
BBK 72500.00001\32374943.1
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-
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
Page 466 of 851
Contract No. ___________
5
Revised 07-2023
BBK 72500.00001\32374943.1
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) Fidelity Coverage N/A
(F) Cyber Liability Insurance. N/A
(G) Pollution Liability Insurance N/A
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 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
Page 467 of 851
Contract No. ___________
6
Revised 07-2023
BBK 72500.00001\32374943.1
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 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.
Page 468 of 851
Contract No. ___________
7
Revised 07-2023
BBK 72500.00001\32374943.1
(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
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.
Page 469 of 851
Contract No. ___________
8
Revised 07-2023
BBK 72500.00001\32374943.1
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.
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
Page 470 of 851
Contract No. ___________
9
Revised 07-2023
BBK 72500.00001\32374943.1
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
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
Page 471 of 851
Contract No. ___________
10
Revised 07-2023
BBK 72500.00001\32374943.1
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 One Hundred and Six Thousand and Twenty-Eight Dollars ($106,028.00) 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.
3.3.2.1
3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress
payment an amount necessary to protect City from loss because of: (1) stop payment notices as
allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) sums
representing expenses, losses, or damages as determined by the City, incurred by the City for
which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled
to recover from Contractor under the terms of the Agreement or pursuant to state law, including
Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums
from a progress payment shall not constitute a waiver of the City's right to such sums.
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.5 Extra Work. At any time during the term of this Agreement, City may request
that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is
determined by City to be necessary for the proper completion of the Project, but which the parties
did not reasonably anticipate would be necessary at the execution of this Agreement. Contractor
shall not perform, nor be compensated for, Extra Work without written authorization from City’s
Representative.
3.3.6 Prevailing 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
Page 472 of 851
Contract No. ___________
11
Revised 07-2023
BBK 72500.00001\32374943.1
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.
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.
Page 473 of 851
Contract No. ___________
12
Revised 07-2023
BBK 72500.00001\32374943.1
3.5 General Provisions.
3.5.1 Delivery of Notices. All notices permitted or required under this Agreement
shall be given to the respective parties at the following address, or at such other address as the
respective parties may provide in writing for this purpose:
Contractor: DESERT AIR CONDITIONING, INC.
590 S. Williams Road
Palm Springs, CA 92264
ATTN: Todd Shaw
City: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
ATTN: City Clerk
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,
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
Page 474 of 851
Contract No. ___________
13
Revised 07-2023
BBK 72500.00001\32374943.1
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 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
workdays. 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.
Page 475 of 851
Contract No. ___________
14
Revised 07-2023
BBK 72500.00001\32374943.1
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.
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.
3.5.18 Federal Provisions. [Reserved].
[SIGNATURES ON NEXT PAGE]
Page 476 of 851
Contract No. ___________
Revised 07-2023
BBK 72500.00001\32374943.1
SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT
AND DESERT AIR CONDITIONING, INC.
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be
executed on the day and year first above written.
CITY OF PALM DESERT
By:
L. Todd Hileman
City Manager
Attest:
By:
Anthony J. Mejia
City Clerk
Approved as to form:
By:
Best Best & Krieger LLP
City Attorney
DESERT AIR CONDITIONING, INC., A
CORPORATION
By:
Its:
Printed Name:
By:
Its:
Printed Name:
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Bonds: _____
Page 477 of 851
Contract No. ___________
Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “A”
SCOPE OF SERVICES
SP-2. Scope of Service and Terms of Contract
2.1 Contractor shall provide the necessary manpower and equipment to
service and maintain the equipment listed in the specified locations, at the level of
maintenance and service defined by City.
2.2 Contractor shall provide appropriate equipment and labor for the execution
of all maintenance activities. City reserves the right to inspect and/or approve any
equipment used in this contract. If City deems the equipment to be in disrepair or
inappropriate to the task at hand, City may require that the equipment be removed
from the job site and replaced with a different piece of equipment.
2.3 Contractor shall provide personnel fully trained in all phases of HVAC
maintenance and operation. Contractor shall provide personnel capable of effective
verbal communication with City representatives. If City deems personnel to be
inadequate to accomplish the task at hand, City may require that the personnel be
removed from the job site and replaced with personnel demonstrating the
appropriate level of job knowledge, skills, and verbal communication to effectively
accomplish the work.
2.4 Prior to commencement of the contract, designated City representative(s)
and the Contractor will perform a mandatory acceptance walk-through inspection of
the contract area. It is Contractor’s responsibility to identify to City unacceptable
conditions with HVAC systems at the time of the walk-through. At City’s discretion,
unacceptable conditions may be resolved by City, or with the Contractor on a
“one-time only, extra-work” basis. After such corrections are made, the successor
Contractor will be responsible for all contractual services.
2.5 Contractor shall submit a quarterly report to Cora Gaugush, or any person
designated by City, for work completed in the preceding quarter. The report is to be
submitted no later than the fifth (5th) day following the end of the quarter, and can be
sent via email to cgaugush@palmdesert.gov
2.6 Contractor shall remove debris caused by all maintenance activities on the
same working day that such debris is accumulated.
SP-3 Refuse Disposal
All refuse collected shall be removed and properly disposed of by Contractor at
Contractor’s expense. Disposal of debris shall not be allowed in any City trash can, bin
or other City facility (i.e., Corporation Yard or satellite yards), or in any park refuse
container unless other arrangements have been authorized by City.
Page 478 of 851
Contract No. ___________
Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
SP-4 Schedules and Reports
At the pre-commencement meeting, Contractor and City staff will review the Work
Schedule submitted by the Contractor. This schedule will be considered the permanent
schedule. If, during the first thirty (30) days, an adjustment in the schedule needs to be
made, Contractor may submit a revised schedule for approval. Contractor shall adhere
to the schedule. City must receive notification of changes to the schedule at least 24
hours in advance. Contractor shall submit a quarterly report to Carlos Hernandez,
Facilities Manager, or any other person designated by City, for work completed in the
preceding quarter. The report is to be submitted no later than the fifth (5th) day following
the end of the quarter, and can be sent via email to cgaugush@palmdesert.gov, or
faxed to 760-341-7098.
SP-5 License and Certification Requirements
Contractor shall possess all permits and licenses required to comply with city, county,
state, or federal laws for the work activities performed, including the use of chemicals.
Contractor assumes responsibility and liability for use of all chemical controls and shall
at all times perform chemical applications in accordance with governmental regulations
and industry standards for their safe and appropriate use.
At the time that the Bid is submitted, Contractor shall possess current licensure and
certification as follows, and the same shall be maintained current and valid for the term
of the contract:
• C-20 – Warm Air Heating, Ventilating, and Air Conditioning Contractor
At the time of contract award, Contractor shall possess a current City of Palm Desert
Business License.
Page 479 of 851
Contract No. ___________
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “B”
SCHEDULE OF SERVICES
HVAC Equipment List
1. City Hall – 73510 Fred Waring Drive-Includes Sheriff’s Substation, Parkview
Building, State Building
• (44) 3-6-ton units
• (2) 10-ton units
• (1) 1-ton split ductless unit
Filter quantity/size: (30) 16x25x2
(20) 16x16x2
(16) 20x20x2
(12) 16x20x2
(3) 12x24x1
(2) 10x20x1
(2) 16x24x1
(8) 16x20x1
(1) 20x25x2
(6) 12x20x1
(5) 20x20x1
(6) 22x22x1
2. Civic Center Park – 73510 Fred Waring Drive
• (1) Bard Company 4-ton unit (at pump vault)
• (1) Phoenix Manufacturing/Aero Cool evaporative cooler (at snack bar)
Filter quantity/size (1) 20x30x2
Pad quantity/size (3) cut to size
3. Palm Desert Aquatic Center – 73751 Magnesia Falls Drive
• (3) Trane 10-ton rooftop units
Determine Filter quantity/size on site
4. Portola Community Center – 45480 Portola Avenue
• (1) 3.5-ton unit
• (4) 3.5-ton units
Filter quantity/size: (1) – 20x25x1
(4) – 14x24x1
Page 480 of 851
Contract No. ___________
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
5. Fire Station 67 – 73200 Mesa View
• (2) 3-ton units
• (1) 3.5-ton unit
Filter quantity/size (3) – 25x20x1
• (3) evaporative cooler units
Pad quantity/size (9) – cut to size
6. Palm Desert Historical Society – 72861 El Paseo
• (1) 4-ton unit
• (1) 2-ton unit
Filter quantity/size: (3) 15x20x1
(1) 20x24x1
(1) 20x20x1
7. Henderson Building – 72559 Highway 111
• (1) 4-ton package unit
• (3) 5-ton package units
• (3) 6-ton package units
Filter quantity/size (24) – 16x16x2
(2) – 16x25x2
8. Artist’s Council – 72-567 Hwy 111
• Chiller System
9. Fire Station 33 – 44400 Town Center Way
• (1) 5-ton package unit
• (2) 7.5-ton package units
• (3) 8.5-ton package units
Filter quantity/size (6) – 18x24x1
• - Evaporative cooler units - (4) total in Apparatus Bay
Pad quantity/size (12) – cut to size
10. Hovley Soccer Park – 74735 Hovley Lane East
• (1) Phoenix Manufacturing/Aero Cool evaporative cooler (at snack bar)
Pad quantity/size (3) cut to size
11. Corporation Yard - 74705/74605 42nd Avenue
Page 481 of 851
Contract No. ___________
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
74705 42nd Avenue
• (2) 1-ton split ductless units
• (2) 5-ton units
Filter quantity/size (2) – 24x20x1
• 3 evaporative cooler/heating units
Pad quantity/size (15) – 44x12
74605 42nd Avenue
• (4) 2-ton package units
• (1) 1-ton wall unit
Filter quantity/size (3) – 14x20x1
(1) – 24x25x1
• (2) evaporative cooler/heating units
Pad quantity/size (10) – 44x12
12. Freedom Park – 77400 Country Club Drive
• (1) Carrier 4-ton package unit (at snack bar)
Filter quantity/size (2) 16x25x2
13. Fire Station 71 – 73995 Country Club Drive
• (1) 5-ton package unit
• (2) 8.5-ton package units
Filter/quantity size (2) – 16x16x1
• (2) PMI evaporative cooler units
Pad quantity/size (6) – cut to size
14. i-HUB -37023 Cook Street
• (6) rooftop units
• (2) split-system units
• (3) Mini split-system units
Determine Filter quantity/size on site
Page 482 of 851
Contract No. ___________
Exhibit “C”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “C”
COMPENSATION
590 WILLIAMS RD • PALM SPRINGS, CA 92264
(760) 323-3383 • FAX (760) 323-8983
www.desertairps.com
LICENSE NO. 276586
2023 RATE CHANGES
Monday through Friday 8:00 am to 6:00 pm $108.00 per hour
Monday through Friday after 6:00 pm $148.00 per hour
Saturday and Sunday 8:00 am to 5:00 pm $148.00 per hour
Saturday and Sunday after 5:00 pm $216.00 per hour
Holidays $216.00 per hour
Contractor shall receive compensation, including authorized reimbursements, for all Services
Page 483 of 851
Page 484 of 851
Contract No. ___________
Exhibit “C”
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded
to DESERT AIR CONDITIONING, INC. , (hereinafter referred to as the “Contractor”) an
agreement for HVAC Preventative Maintenance, Repairs and Replacements (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 July 11, 2023, (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, DESERT AIR CONDITIONING, 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 Three Hundred Eighteen Thousand and Eighty-
four dollars and no/00 Dollars, ($318,084.00), 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-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 485 of 851
Contract No. ___________
(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 486 of 851
Contract No. ___________
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 487 of 851
Contract No. ___________
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 488 of 851
Contract No. ___________
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 489 of 851
Contract No. ___________
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 August 24, 2023, has awarded to DESERT AIR CONDITIONING, INC.,
hereinafter designated as the “Principal,” a contract for the work described as follows:
HVAC Preventative Maintenance, Repairs, and Replacement (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 July 11, 2023, (“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 sum of Three Hundred Eighteen Thousand
and Eighty-four Dollars, ($318,084.00) 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 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
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
Page 490 of 851
Contract No. ___________
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 491 of 851
Contract No. ___________
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 492 of 851
Contract No. ___________
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 493 of 851
Contract No. ___________
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 494 of 851
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
RESPONSE DEADLINE: July 28, 2023 at 4:00 pm
Report Generated: Wednesday, August 2, 2023
Rivco Mechanical Services Proposal
CONTACT INFORMATION
Company:
Rivco Mechanical Services
Email:
mclark@rivcomech.com
Contact:
Matt Clark
Address:
42941 Madio Street
Indio, CA 92201
Phone:
(760) 987-1987
Website:
N/A
Page 495 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 2
Submission Date:
Jul 28, 2023 12:03 PM
ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 21, 2023 7:29 AM by Matt Clark
Addendum #2
Confirmed Jul 27, 2023 7:00 AM by Matt Clark
QUESTIONNAIRE
1. Proposal (WITHOUT COST)*
Pass
Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organ ized and
include page numbers for all pages in the proposal. The proposal shall be uploaded here, in the following order and shall include:
A. Cover Letter
1. This letter should briefly introduce the firm, summarize the firm’s general qualifications, include an executive summary of
the specific approach which will be used to deliver the work scope; and identify the individual(s) name, address and phone
number authorized to negotiate Agreement terms and compensation.
B. Experience and Technical Competence
Page 496 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 3
1. Background: Provide history of the firm’s experience which specifically addresses the individual or firm’s experience with
similar Service as described in this RFP. Include any experience with fully occupied facilities, and secure facilities, such as
Fire Stations.
2. References: The proposal shall include a list of recently completed projects that are similar in scope and function to this
RFP. Provide a description of the project, client name, and the name, title, and telephone number of the primary contact
person.
C. Firm Staffing and Key Personnel
1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as
well as your firm’s capacity to provide additional personnel as needed.
2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and
responsibility of each individual.
3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.
4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor
that is anticipated to perform each function.
D. Proposed Method to Accomplish the Work
1. Describe the technical and management approach to providing the Services to the City. Proposer should take into account
the scope of the Services, and general functions required. Include a draft first year schedule of tasks, milestones, and
deliverables that will provide for timely provision of the Services. In reviewing the scope of Services and goals described
herein, the Proposer may identify additional necessary tasks and is invited to bring these to the City’s attention within the
discussion of its proposed method to accomplish the work.
City_of_Palm_Desert_Cover_Letter.docx
2. Fee Proposal*
Pass
Page 497 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 4
Please provide a lump-sum, not-to-exceed fee proposal for quarterly preventative maintenance work, itemizing each facility. This fee
proposal will be extrapolated out for a yearly total preventative maintenance price. The fee proposal shall also include hourly rates for
all personnel for “Additional Work” (as such term is defined in the proposed Agreement attached herein).
CPD_Proposal_Fee_Sheet.pdfPD_Equipment_List.pdf
3. Non-Collusion Declaration*
Pass
The undersigned declares:
I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.
The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organizat ion, or
corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited any other Bidder
to put in a false or sham bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone
else to put in a sham bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by ag reement,
communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost
element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, d irectly or
indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative
thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent there of to
effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.
Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liabil ity company,
limited liability partnership, or any other entity, hereby represents that he or she has fu ll power to execute, and does execute, this
declaration on behalf of the Bidder.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Confirmed
4. Enter your valid CA Contractors State License Board (CSLB) number*
Pass
Page 498 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 5
Please enter your License Number here. This will be verified against the state database.
979446
Click to Verify Value will be copied to clipboard
5. Enter your California Department of Industrial Relations (DIR) Registration number*
Pass
Please enter your Public Works Contractor DIR Number. This will be verified against the state database.
100573407
Click to Verify Value will be copied to clipboard
6. Type of Business*
Pass
C Corporation (if corporation, two signatures are required)
7. Litigation*
Pass
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5)
years (or type "N/A").
N/A
8. Changes to Agreement*
Pass
The City standard professional services agreement contract is included as an attachment herein. The Proposer shall identify any
objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are
Page 499 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 6
identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect
theCity's decision to enter into an Agreement.
N/A
9. No Deviations from the RFP*
Pass
In submitting a proposal in response to this RFP, Proposer is certifying that it takes no exceptions to this RFP including, b ut not limited
to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted here, and may be reason for re jection of the
proposal. As such, Proposer is directed to carefully review the proposed Agreement and, in particular, the insurance and indemnification
provisions therein (or type "N/A").
Maximum response length: 5000 characters
N/A
10. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualificati ons,
education, and professional licensing.
Rivco_Resumes.docx
11. List the Signatory(s) Authorized to Sign and Bind an Agreement.*
Pass
(If two (2) signatures are required, include the following information for both signatories)
A. Full Name
B. Title
C. Physical Business Address
Page 500 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 7
D. Email Address
E. Phone Number
Matt Clark Marvin Scott
Sales Manager President
42941 Madio St Same
mclark@rivcomech.com mscott@rivcomech.com
760-987-1987 760-200-9898
12. Certification of Proposal: The undersigned hereby submits its proposal and, by doing so, agrees to furnish services in accordance
with the Request for Proposal (RFP), and to be bound by the terms and conditions of the RFP.*
Confirmed
Page 501 of 851
1. Cover Letter
1. This letter should briefly introduce the firm, summarize the firm’s general
qualifications, include an executive summary of the specific approach
which will be used to deliver the work scope; and identify the individual(s)
name, address and phone number authorized to negotiate Agreement
terms and compensation.
Rivco Mechanical has been in business since 2012. We are located here
in the Coachella valley off Jefferson St. in Indio. The owner of our company
Marvin Scott has been in the industry for over thirty-five years. Rivco has over
three hundred preventative maintenance agreements, running at a less than
five percent cancellation. Rivco has invested into tasking software to deliver
excellent service to all our customers. Our tasking software populates every
month with the specific scope of work per customer, and their multiple
locations. I Matt Clark, Sales Manager at Rivco Mechanical will be submitting
this proposal. I’m authorized to negotiate terms and compensation.
2. Experience and Technical Competence
1. Background: Provide history of the firm’s experience which specifically
addresses the individual or firm’s experience with similar Service as
described in this RFP. Include any experience with fully occupied facilities,
and secure facilities, such as Fire Stations.
Rivco’s tasking is followed ever visit for every customer which is exactly
like a RFP for the City of Palm Desert. I have three examples of fully occupied
and secure facilities where Rivco works. The first example is Eisenhower
hospital. We take care of all outpatient facilities and work in secure locations
like the hospital morgues. Big Horn Country Club is another one of our
customers that have multiple locations and have very tight security. There
facility has multiple clubhouses and has a very secure car museum on
property. The last example is Desert Arc. Desert Arc has multiple facilities
and we are required to have our technicians finger printed to be allowed to
work on cite.
2. References: The proposal shall include a list of recently completed
projects that are similar in scope and function to this RFP. Provide a
description of the project, client name, and the name, title, and telephone
number of the primary contact person.
All references are the key contact person that oversee Rivco performance of
preventative maintenance.
Eisenhower Health- Scott McCabe, Administrative Director, Facilities Management/
hmccabe@eisenhowerhealth.org 760-340-3911
Big Horn Country Club- Joe Curtis, CFO/ exc_jdc@bighorngolf.com 760-341-4653
Page 502 of 851
Desert Arc- Angelique Ontiveros, Director of Facilities/ aontiveros@desertarc.org 760-
346-1611
3. Firm Staffing and Key Personnel
1. Staffing: Provide the number of staff to be assigned to perform the
Services and the names/discipline/job title of each as well as your firm’s
capacity to provide additional personnel as needed.
Rivco has over twenty technicians who live in the Coachella valley. Rivco
always has two technicians on call for weekends and aft er hour calls. Rivco
has two dispatchers, two project managers and a service manager.
2. Key Personnel: Identify key persons that will be principally responsible for
working with the City. Indicate the role and responsibility of each
individual.
For coordination of the pms the dispatchers will send technicians to sites
and will coordinate with the city for appropriate times to get them done.
Angela Mendoza and Brittany Lopez are our dispatchers. They coordinate
with the city and our technicians to deliver excellent pms. Overseeing them is
our service manager Zak Heidt. Zak discusses all service operations with our
dispatchers. Zak is our best technician and helps all technicians in the field
with all technical questions. Service projects will be handled by Jack Bowie or
Jeff Poyner. Jack has been with Rivco since the beginning. He will help the
city by quote repairs found on pms. Jeff has been in the industry for over thirty
years. He was a technician and has quoted service project to completing
multiple million-dollar projects over the valley. I will be the account manager
to answer any questions not within the scope of the agreement or to discuss
billing. Kellene Whittet is our accounting department in charge of billing.
Marvin Scott will be overseeing everyone to ensure great pm service.
3. Team Organization: Describe proposed team organization, including
identification and responsibilities of key personnel.
Rivco’s organization starts with our tasking software. This notifies Angela
and Brittany to get all filters order and coordinate with the city for pm. They
will relay to Jack or Jeff if any service projects need to be quoted. Zak will
call in to all technicians on the pm to make sure everything is working
correctly.
Page 503 of 851
4.Subcontractors: The Proposer shall identify functions that are likely to
be subcontracted and identify the subcontractor that is anticipated to
perform each function.
The Main Subcontractor we will be using is All Valley Crane. All Valley
Crane will only be used if we need to lift a new unit to the roof.
4. Proposed Method to Accomplish the Work
1. Describe the technical and management approach to providing the
Services to the City. Proposer should take into account the scope of the
Services, and general functions required. Include a draft first year
schedule of tasks, milestones, and deliverables that will provide for timely
provision of the Services. In reviewing the scope of Services and goals
described herein, the Proposer may identify additional necessary tasks
and is invited to bring these to the City’s attention within the discussion of
its proposed method to accomplish the work.
Our tasking will have the scope of work from the city loaded into it. Our
tasking system will notify our dispatchers that all locations are due for the
city. Angela or Brittany will then call the city to notify them there pm is due.
They will then schedule all the locations to get done over a couple weeks.
After the pms are scheduled our dispatchers will assign technicians to all
the pms. Our technicians will complete all the pms and will call Zak if they
run into technical problems. Our technicians will notify our dispatchers if
we need to quote a service project. Jack or Jeff will quote the service
project to the city. When all pms are completed, our dispatchers will notify
the city and will send all work orders to the city. This process will happen
evry ninety days for every visit.
Page 504 of 851
CITY OF PALM DESERT
CALIFORNIA
ADDENDUM NO. 2
HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
PROJECT
PROJECT NO. 564-24
ISSUED July 25, 2023
Randy Chavez for
Martin Alvarez
Director of Public Works
IMPORTANT NOTE: RECEIPT OF THIS ADDENDUM MUST BE
ACKNOWLEDGED IN CONTRACTOR'S PROPOSAL
Page 505 of 851
Page 506 of 851
Hourly Rate $165
Misc Charge $30
Travel Charge $45
Page 507 of 851
$16,073
$416
$670
$666
$296
$964
$1,042
$1,656
$861
$738
$1,865
$240
$234
$1,422
Rivco Mechanical
Sales Manager 7/27/24
$176,803
$4,576
$7,370
$7,326
$3,256
$10,604
$11,462
$18,216
$9,471
$8,118
$20,515
$2,640
$2,574
$15,642
$298,573
Matt Clark
Page 508 of 851
City Hall
Page 509 of 851
Page 510 of 851
Page 511 of 851
Civic Center
Page 512 of 851
PD Aquatic Center
Page 513 of 851
Portola Center
Page 514 of 851
Fire Station 67
Page 515 of 851
PD History
Page 516 of 851
Henderson
Page 517 of 851
Artist Council
Page 518 of 851
Fire Station 33
Page 519 of 851
Hovley
Page 520 of 851
Corporation Yard
Page 521 of 851
Freedom Park
Page 522 of 851
Fire Station 71
Page 523 of 851
I-Hub
Page 524 of 851
City of Palm Desert
Project Team Resumes
Rivco Technicians: We have over twenty in the Coachella Valley and range in
experience. All our Technicians are EPA certified.
Brittany Lopez: Three years with Rivco as a Dispatcher/Service Coordinator
Angela Mendoza: Seven years with Rivco as the Senior Dispatcher
Jack Bowie: Ten years at Rivco former technician and current Project Manager
Jeff Poyner: Thirty years of experience in the industry and seven years as Senior
Project Manager
Zak Heidt: Ten years of experience in the industry. Eight years with Rivco and is the
Service Manager
Matt Clark: Five years of experience in the industry. Sales Manager of Rivco. Bachelor
of Science from San Diego State University
Marvin Scott: Thirty Five years of experience in the industry. Owner and president of
Rivco
Page 525 of 851
Page 526 of 851
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
RESPONSE DEADLINE: July 28, 2023 at 4:00 pm
Report Generated: Wednesday, August 2, 2023
Pacific West Industries Inc Proposal
CONTACT INFORMATION
Company:
Pacific West Industries Inc
Email:
teresa.m@pacwestac.com
Contact:
Teresa Moulton
Address:
4051 E La Palma Suite A
Anaheim, CA 92807
Phone:
N/A
Website:
www.pacwestac.com
Page 527 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 2
Submission Date:
Jul 28, 2023 2:26 PM
ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 28, 2023 12:19 PM by Teresa Moulton
Addendum #2
Confirmed Jul 28, 2023 12:19 PM by Teresa Moulton
QUESTIONNAIRE
1. Proposal (WITHOUT COST)*
Pass
Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organ ized and
include page numbers for all pages in the proposal. The proposal shall be uploaded here, in the following order and shall include:
A. Cover Letter
1. This letter should briefly introduce the firm, summarize the firm’s general qualifications, include an executive summary of
the specific approach which will be used to deliver the work scope; and identify the individual(s) name, address and phone
number authorized to negotiate Agreement terms and compensation.
B. Experience and Technical Competence
Page 528 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 3
1. Background: Provide history of the firm’s experience which specifically addresses the individual or firm’s experience with
similar Service as described in this RFP. Include any experience with fully occupied facilities, and secure facilities, such as
Fire Stations.
2. References: The proposal shall include a list of recently completed projects that are similar in scope and function to this
RFP. Provide a description of the project, client name, and the name, title, and telephone number of the primary contact
person.
C. Firm Staffing and Key Personnel
1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as
well as your firm’s capacity to provide additional personnel as needed.
2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and
responsibility of each individual.
3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.
4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor
that is anticipated to perform each function.
D. Proposed Method to Accomplish the Work
1. Describe the technical and management approach to providing the Services to the City. Proposer should take into account
the scope of the Services, and general functions required. Include a draft first year schedule of tasks, milestones, and
deliverables that will provide for timely provision of the Services. In reviewing the scope of Services and goals described
herein, the Proposer may identify additional necessary tasks and is invited to bring these to the City’s attention within the
discussion of its proposed method to accomplish the work.
City_of_Palm_Desert_Proposal_FINAL.pdf
2. Fee Proposal*
Pass
Page 529 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 4
Please provide a lump-sum, not-to-exceed fee proposal for quarterly preventative maintenance work, itemizing each facility. This fee
proposal will be extrapolated out for a yearly total preventative maintenance price. The fee proposal shall also include hourly rates for
all personnel for “Additional Work” (as such term is defined in the proposed Agreement attached herein).
Cost_Sheet.pdf
3. Non-Collusion Declaration*
Pass
The undersigned declares:
I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.
The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organizat ion, or
corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited any other Bidder
to put in a false or sham bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone
else to put in a sham bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by ag reement,
communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost
element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, d irectly or
indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative
thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent there of to
effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.
Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liabil ity company,
limited liability partnership, or any other entity, hereby represents that he or she has fu ll power to execute, and does execute, this
declaration on behalf of the Bidder.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Confirmed
4. Enter your valid CA Contractors State License Board (CSLB) number*
Pass
Page 530 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 5
Please enter your License Number here. This will be verified against the state database.
792079
Click to Verify Value will be copied to clipboard
5. Enter your California Department of Industrial Relations (DIR) Registration number*
Pass
Please enter your Public Works Contractor DIR Number. This will be verified against the state database.
1000002299
Click to Verify Value will be copied to clipboard
6. Type of Business*
Pass
S Corporation (if corporation, two signatures are required)
7. Litigation*
Pass
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5)
years (or type "N/A").
N/A No Litigation
8. Changes to Agreement*
Pass
The City standard professional services agreement contract is included as an attachment herein. The Proposer shall identify any
objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are
Page 531 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 6
identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect
theCity's decision to enter into an Agreement.
N/A
9. No Deviations from the RFP*
Pass
In submitting a proposal in response to this RFP, Proposer is certifying that it takes no exceptions to this RFP including, b ut not limited
to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted here, and may be reason for re jection of the
proposal. As such, Proposer is directed to carefully review the proposed Agreement and, in particular, the insurance and indemnification
provisions therein (or type "N/A").
Maximum response length: 5000 characters
N/A
10. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualificati ons,
education, and professional licensing.
Resumes.pdf
11. List the Signatory(s) Authorized to Sign and Bind an Agreement.*
Pass
(If two (2) signatures are required, include the following information for both signatories)
A. Full Name
B. Title
C. Physical Business Address
Page 532 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
PROPOSAL DOCUMENT REPORT
Request For Proposal - HVAC Preventative Maintenance, Repair and Replacement
Page 7
D. Email Address
E. Phone Number
Robyn Marquardt, Vice President/CFO
4051 E La Palma Suite A, Anaheim, CA 92807
accounting@pacwestac.com
866-328-2129
12. Certification of Proposal: The undersigned hereby submits its proposal and, by doing so, agrees to furnish services in accord ance
with the Request for Proposal (RFP), and to be bound by the terms and conditions of the RFP.*
Pass
Confirmed
Page 533 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 1
CITY OF PALM DESERT
REQUEST FOR PROPOSAL 2023-RFP-204
HVAC Preventative Maintenance, Repair and Replacement
July 28, 2023
City of Palm Desert 73-510 Fred Waring DrivePalm Desert, CA 92260Dear Sir / Madam: Thank you for the opportunity to be considered as Prime Contractor for your Request for Proposal No. 2023-RFP-204 HVAC Preventative Maintenance, Repair and Replacement. Since 2005, Pacific West Industries Inc has strived to become a credible source for commercial HVAC expertise. In addition to being a full mechanical contractor, the company has earned an impressive reputation as a leading Controls contractor in Southern California. Through the Carrier Controls Expert certification program, we have obtained the highest level of certification possible. We are one of only two active contractors in Southern California that has achieved this level of certification. We are dedicated to completing projects with the highest possible quality, on time, and within budget. With our headquarters centrally located in Anaheim, we design and deliver solutions with the highest possible standard of service. Our approach to serving our clients is comprehensive. We establish a team approach and make ourselves accountable for every aspect of our work. We deliver quality services, minimize costs, accelerate schedules, and work safely, all while minimizing impact on our customer’s day-to-day operations. We manage and monitor every item on your project's critical path and provide all labor, material and other services required to get the job done correctly. Pacific West Industries, Inc. has grown because our clients continue to expand their use of our services based on our demonstrated ability to deliver quality services that exceed our customers’ expectations, on time and within budget. We have built an impressive team of accredited technicians, project managers and support staff, and our management team is
Page 534 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 2
closely involved and active in every project, regardless of its size. With our extensive certifications and experience, I assert that Pacific West is the most qualified contractor to meet the needs of your HVAC Maintenance, Repair and Replacement project and I thank you again for your consideration. I look forward to speaking with you in greater detail about the enclosed proposal.
Pacific West Industries, Inc. 4051 E La Palma Suite A Anaheim, CA 92807 (866) 328-2129 www.pacwestac.comaccounting@pacwestac.comMarcello Marignoli, Project Manager / Service ManagerDaniel Monge, Project Manager / Assistant Service ManagerFounding Date: March 2005 California “S” Corporation Number: C2631300 Federal Taxpayer ID Number: 20-3153678Business License Number: 259-8045-9California Contractor License Number: 792079
•C-20 HVAC
•C-10 Electrical
•C-36 Plumbing
•C-38 RefrigerationDIR Registration, Number 1000002299 Certified Small Business, Department of General Services 1627320 Authorized Signers / Representatives regarding this proposal: Kevin Marquardt, President / CEO Robyn Marquardt, Vice President / CFO Devin Johnson, General Manager / Project Manager
Pacific West Industries Inc. acknowledges receipt of Addendums 1 & 2
Robyn Marquardt, Vice President / CFO
Page 535 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 3
B.EXPERIENCE AND TECHNICAL COMPETENCE:Pacific West Industries Inc has been providing services and support to numerous public agencies, private and non-profit organizations throughout California and Arizona since 2005. We have provided these services to many public agencies/cities including within fully occupied facilities and secured facilities such as police and fire stations. We hold certified credentials and experience in all areas of HVAC Mechanical and Control Systems and we are immensely proud of the work we do and its impact on both local and global scales. The City of Palm Desert is in need of a highly skilled contractor to perform the HVAC Maintenance and any needed repairs for various city-owned or operated facilities throughout the City. Pacific West Industries Inc. will furnish all labor, materials, tools, equipment, and incidentals required to perform the scope of work. Pacific West Industries has a well-organized maintenance department and we utilize a highly detailed and precise software platform to track and manage all maintenance and service requests. After award of the contract, we will begin the process of entering in all equipment and logging the dates for the scheduled maintenance. Pacific West Industries will provide quarterly preventative maintenance services of all HVAC units by cleaning, inspecting, replacing filters, lubricating moving parts, checking for leaks, checking all wiring, and adjusting the HVAC systems and components during each visit. We will also check and clear condensate lines and rinse condensate coils twice per year. Once per year, we will test the refrigerant levels and clean the evaporative coils. Pacific West Industries Inc. will also provide the maintenance on the evaporative cooler / heater units as noted in the scope of work. We will perform all of the required maintenance by checking all parts for wear, cleaning and lubricating moving parts, and inspecting to ensure optimal working condition. Pacific West Industries Inc has a thorough understanding of the project, and we are very familiar with all of the equipment and facilities throughout the city. The City of Palm Desert depends on their HVAC systems to keep comfortable year-round. HVAC Systems are a huge investment, so it is of the utmost importance to properly maintain the systems with regular maintenance and upkeep of all heating, cooling, air handling, control systems, and associated equipment. The systems need to be inspected, cleaned, tested and
Page 536 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 4
if necessary, repairs need to be made. Regular maintenance helps the system produce and distribute the warm and cool air more evenly, steadily, and efficiently. This will help to keep the systems operating at peak level, reduce the chance of systems failure, and also help to prolong the useful life of the systems. In addition, this will also help reduce energy consumption, prevent more costly repairs, fulfill warranty requirements, and improve air quality, ultimately helping to maintain lower operating costs all-around. While onsite for routine maintenance/inspection, if any of the equipment exhibits signs of severe wear-and-tear, we will submit a quote for repairs to bring the systems back to full capacity and optimal condition. In addition to our extensive knowledge and experience in the HVAC and Controls industry, Pacific West Industries has been working in the Coachella Valley area since our inception in 2005 and we are very experienced with the local environment and climate conditions. Below is a brief list of several of our long-term customers in the Coachella Valley area:
•The Palm Springs Art Museum
•College of the Desert
•The Living Desert
•The City of La Quinta
•The City of Palm Desert
•The Palm Springs Aerial Tram Way
•The City of Palm Springs
•Luko Management Company
•City of Rancho Mirage
Page 537 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 5
B. 2 - REFERENCES:
Project Name: The City of La Quinta - Maintenance & Repairs
Project Address: La Quinta, California
Project Owner: The City of La Quinta
Project Contact: Alfred Berumen (760) 834-1332 / aberumen@laquintaca.gov
Project Architect: N/A - Repair Work
Scope of Work: Ongoing Maintenance and repairs for the City of La Quinta
Original Completion Date: May 2023
Date Completed: July 2023 (Ongoing)
Initial Contract Value: $525,000.00
Final Contract Value: $525,000 (currently - ongoing)
Project Name: Palm Springs Art Museum Maintenance & Repairs
Project Address: Palm Springs and Palm Desert
Project Owner: Palm Springs Art Museum
Project Contact: Olivia Villarreal (760) 322-4800 ext. 136 ovillarreal@psmuseum.org
Project Architect: N/A
Scope of Work: HVAC Maintenance/Repairs HVAC Replacement, Chilller Replacement, Cooling
Towers, and Boilers
Original Completion Date: July 2019
Date Completed: July 2023 Contract +Ongoing Maintenance
Initial Contract Value: $525,000.00
Final Contract Value: $525,000.00 +
Project Name: HVAC Maintenance & Service Agreement @ 3 High Schools
Project Address: Alhambra, CA: San Gabriel HS, Mark Keppel HS, & Alhambra HS
Project Owner: Alhambra Unified School District
Project Contact: Eliezer "Cheddy" Castillo (626) 943-6500 castillo_eliezer@ausd.us
Project Architect: Enpowered Solutions, Staffan Akerstrom (844) 536-7693 staffana@enpllc.co
If a Sub - General Contractor: N/A
Scope of Work: Upgraded Energy Management System & Provided Maintenance of Equip.
Original Completion Date: March 2020
Date Completed: March 2022 (Contract Renewed - currently a month to month contract)
Initial Contract Value: $890,000.00
Final Contract Value: $1,620,000.00
DSA Project? NO
Page 538 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 6
Project Name: CAMD - California Military Department
Project Address: Several Military Armories throughout Los Angeles County
Project Owner: CAMD - California Military Department
Project Contact: SSG Javier Hernandez (562) 594-1500 / javier.hernandez14.mil@mail.mil
Project Architect: N/A - Repair Work
Scope of Work: Ongoing Maintenance and Repairs for the California Military Department
Original Completion Date: May-21
Date Completed: Ongoing - Maintenance Contract Renewed
Initial Contrat Value: $50,000 - $230, 000 / year
Final Contract Value: $50,000 - $230,000 /year (ongoing)
Project Name: Marshall Elementary School & Alternative Ed Center - HVAC Replacement
Project Address: 12045 Telephone Avenue, Chino, CA
Project Owner: Chino Valley Unified School District
Project Contact: Alex Rivera (909) 625-1207 alex_rivera@chino.k12.ca.us
Project Architect: Repair / Retrofit - Chino Valley Unified School District
If a Sub - General Contractor: N/A
Scope of Work: Removed and Replaced existing HVAC units
Original Completion Date: August & September 2020
Date Completed: August & September 2020
Initial Contract Value: $860,000.00 & $650,000.00
Final Contract Value: $860,000.00 & $650,000.00
Page 539 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 7
Pacific West Industries Inc. employs a large team of professional highly skilled field technicians, including 10 Installation technicians, 11 Service Technicians, and 14 HVAC Controls Technicians. We will designate 2 - 3 for the Palm Desert HVAC Preventative Maintenance, Repair and Replacement project, and can utilize other technicians if necessary. We will also have a Service Manager and Assistant Service Manager assigned to the project. We will always be able to keep up with the demands of the city and keep the HVAC systems running at optimal condition.On the following page are brief resumes of a few of the staff that will be assigned to the project, along with a few others:Marcello Marignoli, Service Manager /Project Manager Daniel Monge, Assistant Service Manager Oscar Ramos, Controls & Mechanical Technician Edward Gonzalez, HVAC & Controls TechnicianDaniel Vasquez, HVAC Service TechMilton Moreno, HVAC Foreman
C1. FIRM STAFFING AND KEY PERSONNEL - Staffing
Page 540 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 8
Kevin Marquardt, Owner & Controls Acct Manager •37 years HVAC industry experience. Previous experience includes 3 years with Trane, 5years with Carrier Corporation, 5 years with EMCOR.•JJATC Certified Journeyman, NATE Certified, EPA 608 Certified, Image PermanenceInstitute Environment Control Trained, Edison CTAC; EMS Strategies, EMS Planning,Adjustable Speed Drives, 2000, Andover Controls Training.•Carrier Controls Certified Expert – AutoCAD/Revit, iVu Graphics, ES Certified, ISCertified, CS Certified, ComfortView, CCN Certified, 3V Certified, VVT GEN II & III•Contractor’s Licenses C20, C10
Marcello Marignoli, Service Manager /Project Manager •30+ years HVAC industry experience•Licensed Contractor (C20, C38)•EPA Universal Certified, OSHA 30 Workplace Safety, Operational Risk Management•Estimating, Project Management, Operations, Construction Management
Daniel Monge, Assistant Service Manager •18+ years HVAC industry experience•C20 Contractor’s License•EPA Universal Certified, OSHA Workplace Safety, Operational Risk Management•Certified Carrier Controls Expert IS/CS/CCN/3V/VVT
Oscar Ramos, Controls & Mechanical Technician • 8 years HVAC industry experience, 3 years Carrier Controls experience•Carrier Controls Certified iVu Graphics, ES Certified, IS Certified, CS Certified, CCN•Certified Commercial Air Balancer / National Comfort Institute•Certified, 3V Certified, VVT GEN II & III Certified.
Edward Gonzalez, HVAC & Controls Technician •7+ years HVAC industry experience•EPA 608 Universal Certified, NATE Certified, OSHA Workplace Safety•Certified Carrier Controls Expert IS/CS/CCN/3V/VVT•Certified Commercial Air Balancer / National Comfort Institute•OSHA 10 Hour Certified
C2. FIRM STAFFING AND KEY PERSONNEL - Personnel
Page 541 of 851
CITY OF PALM DESERT: REQUEST FOR PROPOSALS (RFP) NO. 2023-RFP-204 HVAC PREVENTATIVE MAINTENANCE REPAIR AND REPLACEMENT
Robyn Marquardt, CFO
Ted Kim, Accounting Manager
Teresa Moulton, Office/Labor Compliance
Vicky Turner, Accounts Receivable
Renee Malkemus, Accounts Payable
Tori Webb, Labor Compliance/Payroll
Marina Rodriguez, Labor Compliance
Lauren Partida-Barragan, Operations Mgr.
Kevin Marquardt, CEO
Devin Johnson, Project Manager Marcello Marignoli, Service Manager Mike McTarsney Controls Manager Ross Solano, Sales
Helen Abgarian, Project Manager George Anthony, Service Manager Randon Hurd, Controls Coordinator
Jimmy Juarez, Foreman Daniel Monge, Asst. Service Manager Arnold Carrillo, Foreman
Erik Gonzalez, Install Tech John McGowan, Dispatcher Adrian Alano, Controls Tech
Jovanny Chavez, Install Tech Daniel Vasquez, Service Tech Mark Blumenshine, Controls Tech
Fabrizio De Domenico, Install Foreman Milton Moreno, Service Tech Jim Gilmartin, Controls Tech
Robert Castaneda, Install Tech Oscar Ramos, Service Tech Jeremy Person, Controls Tech (AZ)
Marc Phillips, Install Foreman Ed Gonzalez, Service Tech Robert Castaneda, Controls Tech
Ernie Escobar, Install Tech Joey Negrete, Service Tech Payton Glen, Controls Tech
Paul Murphy, Install Tech Joaquin Zuniga, Service Tech Patrick Orr, Controls Tech (AZ)
Carlos Sesma, Install Tech Jeremy Aguirre, Service Tech Brice Smith, Graphics Engineer
Ty Whiteley, Install Tech Sherman Hudson, Driver/Service Tech Benjamin Boehr, Controls Tech
Saul Flores, Service Tech Sean Kinney, Controls Tech
Martin Quesada, Driver/Service Tech Frank Ippolito, Controls Tech
Alex Oceguera, Controls Tech
Armando Ramirez, Controls Tech
Jeff Rothwell, Controls Tech
Pacific West Industries Inc. Organizational Chart
CITY OF PALM DESERT: REQUEST FOR PROPOSALS (RFP) NO. 2023-RFP-204 HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Primary Contact: Daniel Monge (866) 328-2129 daniel.m@pacwestac.com
Secondary Contact: Marcello Marignoli (866) 328-2129 marcello.m@pacwestac.com
Dispatch: John McGowan (866) 328-2129 service@pacwestac.com
Page | 9
C3. FIRM STAFFING AND KEY PERSONNEL - Team Organization
Page 542 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page |10
C4. FIRM STAFFING AND KEY PERSONNEL - Subcontractors
Pacific West Industries Inc. does not foresee an immediate need for any subcontractors at this time.The majority of the work will be done by our technicians. If the need should arise during the term of the contract, the below are a few of the subcontractors that we may consider using:
Air Balancing:Precision Air BalanceLos Angeles Air BalanceDuct Cleaning:Action Duct CleaningInsulation:Thermo Logic InsulationPreferred InsulationCrane Services:The Crane GuysBenchmark CraneWhites Steel / Crane Service
Page 543 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSALS (RFP) NO. 2023-RFP-204 HVAC PREVENTATIVE MAINTENANCE REPAIR AND REPLACEMENT
Page |11
D. PROPOSED METHOD TO ACCOMPLISH THE WORK:Pacific West Industries will strive to keep the Heating, Ventilation, and Air Conditioning (HVAC) systems functioning properly within all the city facilities to provide a comfortable and healthyindoor environment. Regular maintenance procedures are the most cost-effective method of ensuring the reliability, safety, and energy efficiency of all systems. Pacific West Industries will adhere to the scope of work / services provided in the bid and contract documents, as listed below:.
Package Units Quarterly
Cooling: Spring / Summer:Replace filters.Check operating pressure & temperature.Check proper operating voltage/amp draw.Test system safety devicesLubricate moving parts as needed.Inspect the blower assembly.Check blower speed.Inspect the wiring and control circuit.Check thermostat operation.Check coil temperature drops.Check electrical connections.Cycle equipment for proper operations.Check belt condition.Give a written diagnostic report.
Package Units Quarterly
Heating: Fall/ Winter:Replace filters.Check for carbon monoxide.Inspect heat exchanger.Check inlet/outlet gas pressure.Check/adjust fuel air mixture.Check motors for voltage/amp draw.Test system safety devices.Inspect blower assembly.Check/calibrate thermostat operation.Check for gas leaks at furnace.Check temperature rise.Check combustion air.Check ignition system.Check electrical connections.Lubricate moving parts as needed.Cycle furnace to ensure correct operation.Give written diagnostics report.
Bi-Annually:Check and clear condensate lines.Rinse condensate coils
Annually:Test refrigerant levels.Clean evaporative coils.
Page 544 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 12
Evaporative Cooler / Heater Units Quarterly
Cooling: Spring / Summer:
Clean pan strainer (if applicable)
Clean and flush pan
Check bleed valve to ensure operation.
Check operating level in pan, adjust float valve as necessary.
Check water distribution and spray pattern.
Check drift eliminators (if applicable)
Check fan blades for crack, missing, balancing weights and vibrations.
Check sheaves and bushings for corrosion.
Lubricate fan shaft bearings.
Check belt tension, adjust and replace when as necessary.
Sliding motor base – Inspect and grease as needed.
Check fan screens, inlet louvers and fans, remove dirt or debris.
Check evaporative cooler pads and replace as necessary.
Check all electrical components.
Check water pump for proper operations.
Evaporative Cooler / Heater Units Quarterly
Heating: Fall / Winter (Where Applicable):Heater controller – inspect controller and clean probe ends.Heater – Inspect junction box for loose wires and moisture.Heater – Inspect elements for scale build up.Electronic Water Level Controller – Inspect junction box for loose wiring and moisture.Electronic Water Level Controller – Clean probe ends of scale build up.Electronic Water Level Controller – Clean inside the standpipeSolenoid Make-up Valve – Inspect and clean valve of debris.Vibration Switch – Inspect enclosure for loose wiring and moisture.Vibration switch – Adjust for sensitivity.Water level Indicator – Inspect and clean.
Page 545 of 851
140,39111,699.25
597.50 7,170
700 8,400
434 5,208
253.25 3,039
818 9,816
1,346.25 16,155
474 5,688
5,634469.50
240.25 2,883
420.75 5,049
330.25 3,963
247.75 2,973
392.50 4,710
221,079
Pacific West Industries Inc
07/28/2023Rovbyn Marquardt, Vice
President/CFO
Page 546 of 851
1
PACIFIC WEST INDUSTRIES, INC.
4051 E LA PALMA AVE., STE A
ANAHEIM, CA 92807
866-328-2129 FAX: 714-630-4049
City of Palm Desert HVAC Preventative Maintenance, Repair and Replacement
FEE SCHEDULE – RATE SHEET
Regular Straight Time Rates (Monday – Friday) $159.00 / Hour
Overtime (After 5:00 & Saturdays) $238.50 / Hour
Double Time (Sundays & Holidays) $318.00 / Hour
Page 547 of 851
PACIFIC WEST INDUSTRIES INC
4051 E LA PALMA AVE, STE A
ANAHEIM, CA 92807
866-328-2129
CITY OF PALM DESERT: REQUEST FOR PROPOSAL NO. 2023-RFP-204HVAC PREVENTATIVE MAINTENANCE, REPAIR AND REPLACEMENT
Page | 8
Kevin Marquardt, Owner & Controls Acct Manager •37 years HVAC industry experience. Previous experience includes 3 years with Trane, 5years with Carrier Corporation, 5 years with EMCOR.•JJATC Certified Journeyman, NATE Certified, EPA 608 Certified, Image PermanenceInstitute Environment Control Trained, Edison CTAC; EMS Strategies, EMS Planning,Adjustable Speed Drives, 2000, Andover Controls Training.•Carrier Controls Certified Expert – AutoCAD/Revit, iVu Graphics, ES Certified, ISCertified, CS Certified, ComfortView, CCN Certified, 3V Certified, VVT GEN II & III•Contractor’s Licenses C20, C10
Marcello Marignoli, Service Manager /Project Manager •30+ years HVAC industry experience•Licensed Contractor (C20, C38)•EPA Universal Certified, OSHA 30 Workplace Safety, Operational Risk Management•Estimating, Project Management, Operations, Construction Management
Daniel Monge, Assistant Service Manager •18+ years HVAC industry experience•C20 Contractor’s License•EPA Universal Certified, OSHA Workplace Safety, Operational Risk Management•Certified Carrier Controls Expert IS/CS/CCN/3V/VVT
Oscar Ramos, Controls & Mechanical Technician • 8 years HVAC industry experience, 3 years Carrier Controls experience•Carrier Controls Certified iVu Graphics, ES Certified, IS Certified, CS Certified, CCN•Certified Commercial Air Balancer / National Comfort Institute•Certified, 3V Certified, VVT GEN II & III Certified.
Edward Gonzalez, HVAC & Controls Technician •7+ years HVAC industry experience•EPA 608 Universal Certified, NATE Certified, OSHA Workplace Safety•Certified Carrier Controls Expert IS/CS/CCN/3V/VVT•Certified Commercial Air Balancer / National Comfort Institute•OSHA 10 Hour Certified
C2. FIRM STAFFING AND KEY PERSONNEL - Personnel
Page 548 of 851
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Sarah Castro, Administrative Assistant
REQUEST: RESOLUTION AUTHORIZING DESTRUCTION OF OBSOLETE
RECORDS FROM THE FINANCE DEPARTMENT AND HUMAN
RESOURCES DEPARTMENT
RECOMMENDATION:
Adopt a Resolution authorizing the destruction of obsolete records from the Finance Department
and Human Resources Department pursuant to California Government Code Section 34090.
BACKGROUND/ANALYSIS:
Government Code Section 34090 permits the destruction of City records with the written consent
of the City Attorney and approval by the City Council. The City’s records retention program,
adopted on December 15th, 2022, by Resolution No. 2022-98, established retention periods for
all City records and provides for the systematic destruction of obsolete records.
In accordance with the Retention Program, attached is Exhibit “A” the Records Destruction
Certificate, which lists the records submitted for destruction. The Certificate will be reviewed and
signed by the City Attorney as well as the City Clerk prior to destruction of all records.
FINANCIAL IMPACT:
Destroying obsolete records reduces the cost associated with offsite do cument storage and
records management. These records were housed in Unit 106 at Parkview Office Complex for
a number of years. Their removal provided space for a new tenant, generating revenue for the
Enterprise Fund.
ATTACHMENTS:
1. Resolution
2. Records Destruction Certificate – Exhibit “A”
Page 549 of 851
Page 550 of 851
Form RS-2/2023
C:\Program Files\eSCRIBE\TEMP\16402181273\16402181273,,,Resolution Obselete Records.doc Thursday, August 17, 2023
RESOLUTION NO. 2023-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, SETTING FORTH ITS FINDINGS AND
AUTHORIZING THE DESTRUCTION OF PAPER RECORDS FROM THE
FINANCE DEPARTMENT AND HUMAN RESOURCES, AS INDICATED ON
THE RECORDS RETENTION SCHEDULE (ADOPTED DECEMBER 15,
2022). RECORDS FROM 1975-2017 AND 1994-2007, RESPECTIVELY
(EXHIBIT A)
WHEREAS, the Finance Department and Human Resources of the City of Palm
Desert, California, has records that have met or exceeded the retention period caused by
the official files, records, exhibits, and other documents of said office pursuant to the
Retention Schedule set forth on City Council Resolution No. 2022-98; and
WHEREAS, said files are not the subject of any claim, litigation, investigation, or
audit.
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 City Council in this matter.
Section 2. That it does hereby approve the destruction of all documents and
records from files as set forth in Exhibit “A,” attached hereto, which have met or exceeded
their retention period.
Section 3. That the reports mentioned on Exhibit “A” for the Finance Department
from 1980 to 2017 and Human Resources from 1994 to 2007 have exceeded their retention
period. Both paper and digital records will be destroyed.
ADOPTED ON _________, 2023.
____________________________
KATHLEEN KELLY
MAYOR
ATTEST:
________________________________
ANTHONY J. MEJIA
CITY CLERK
Page 551 of 851
RESOLUTION NO. 2023-
August 17, 2023
Page 2 of 2
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2023-___ is a full, true, and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Desert on ______, 2023, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEROF, I have hereunto set my hand and affixed the offic ial seal of the City
of Palm Desert, California, on __________________, 2023.
________________________________
ANTHONY J. MEJIA
CITY CLERK
Page 552 of 851
Citywide Records Management Policy Resolution No. 2022-98
Administrative Procedures Manual CLRK-001
EXHIBIT A
Request to Destroy Obsolete Records
CITY OF PALM DESERT
AUTHORITY TO DESTROY OBSOLETE RECORDS
Dept. Retention
No.
Description
of Record Years Covered Retention
Period
Shred
or
Discard
Finance/
Admin FN-004 Audit Work Papers 1994, 1996-1997,
2007-2008, 2012 5 years
Shred/
Destroy
electronic
files
Finance/
Admin FN-006 Budgets- Preliminary, backup
documents 1997-2000 2 years
Shred/
Destroy
electronic
files
Finance/
Admin FN-007
Fixed Assets-Inventory
Backups, Journal Backups,
Purchase Agreements
1989-1997, 1998-
2001, 2002-2003
2001-2006, 2007-
2008, 2015-2016
5 years
Shred/
Destroy
electronic
files
Finance/
CDBG FN-009 CDBG all reports 2004-2008, 2012-
2014 5 years
Shred/
Destroy
electronic
files
Finance/
Accounting FN-015 Accounts Payable
(Wires, Bond Payments)
1989-1990, 1993-
1998, 2001-2002,
2005, 2007, 2008-
2010, 2015-2016
5 years
Shred/
Destroy
electronic
files
Finance/
Accounting FN-016 Accounts Receivable / TOT 1990-1998, 2007-
2009 5 years
Shred/
Destroy
electronic
files
Finance/
Accounting FN-017
Bank Receipts, Bank
statements, Trustee
Statements, NSF
1997-1998, 2002-
2003, 2005-2010,
2015-2016,
7 years
Shred/
Destroy
electronic
files
Finance/
Accounting FN-021
Cash Receipts / Daily Cash
Summaries / Cashiers
Reports / Treasurers
Receipts (TRs)
1989-1990, 1993-
1994, 1998, 2003-
2004, 2008-2009,
2011, 2013-2014
5 years
Shred/
Destroy
electronic
files
Finance/
Accounting FN-022 Warrant Register 2003 10 years
Shred/
Destroy
electronic
files
Finance/
Accounting FN-026 Treasurer's Reports/
Investment Reports
1980-1989, 1999-
2000 5 years
Shred/
Destroy
electronic
files
Page 553 of 851
Administrative Procedures Manual CLRK-001
Citywide Records Management Policy Resolution No. 2022-98
I consent to the destruction of these obsolete records according to accepted policies and
procedures.
City Clerk Date City Attorney Date
Approved by City Council:
Original: City Clerk’s Office
Copy: Department
Finance/
Accounting FN-028 Journal Entries/ Journal
Vouchers
1980, 1986-1992,
2000-2005, 2010-
2012, 2015-2016
5 years
Shred/
Destroy
electronic
files
Finance/
Accounting FN-030 State Controller's Report 2010-2013 5 years
Shred/
Destroy
electronic
files
Finance/
Payroll FN-036
Payroll Reports - Periodic
(includes Deduction
Registers, Leave Registers,
Time Transaction Reports,
etc.)
1993-1994 5 years
Shred/
Destroy
electronic
files
Finance/
Payroll FN-037
Time Sheets / Timecards /
Overtime Sheets / Overtime
Cards / Payroll Changes
1993-1994 5 years
Shred/
Destroy
electronic
files
Finance/
Payroll FN-038 W2’s 1990-2013, 2014-
2015 5 years
Shred/
Destroy
electronic
files
Human
Resources HR-020 Workers Compensation 1994-2007 5 years
Shred/
Destroy
electronic
files
Page 554 of 851
Page 1 of 3
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Shawn Muir, Community Services Manager
REQUEST: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK
AND FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
RECOMMENDATION:
1. Pursuant to PDMC Section 3.30.160(I), award Contract No. C44620D to R&R B Inc. dba
Servpro of Chino/Chino Hills, Chino, California and Contract No. C44620E to Doug Wall
Construction, Bermuda Dunes, California for Park and Facilities Repairs and
Improvements, for a period of three (3) years in an aggregate amount not to exceed
$3,000,000 per fiscal year.
2. Authorize the City Manager to review and approve up to two (2) additional one-year terms
per contract for an aggregated amount not to exceed $3,000,000 per fiscal year.
3. Authorize the City Manager or designee to review and approve change orders for
unforeseen circumstances.
4. Authorize the City Manager to execute said agreements.
BACKGROUND/ANALYSIS:
There are currently 12 main building facilities and 12 park facilities in the City of Palm Desert
that require a considerable number of repairs and/or improvements for safety, functionality, and
marketability. City facilities are outlined in the table below:
Buildings Fire Stations Parks and Recreation
City Hall
73510 Fred Waring Drive
Fire Station No. 33
44400 Towne Center Way
Aquatic Center
73751 Magnesia Falls Drive
Community Center
72559 Highway
Fire Station No. 67
73200 Mesa View Drive
Cahuilla Hills Park
Tierra Del Oro
Corporation Yard
74705 42nd Avenue
Fire Station No. 71
73995 Country Club Drive
Cap Homme/Ralph Adams Park
72500 Thrush Road
Portola Community Center
45480 Portola Avenue
Future Fire Station No. 102
(FY 2024/25)
Civic Center Park
43900 San Pablo Ave
PD Sheriff Substation
73520 Fred Waring Drive
Freedom Park
77400 Country Club Drive
Parkview Office Complex-2 St
73710 Fred Waring Drive
Hovley Soccer Park
74735 Hovley Lane
Parkview Office Complex-1 St
73720 Fred Waring Drive
Ironwood Park
47800 Chia Drive
iHUB (Lease Responsibility)
37023 Cook Street, Ste 102
Joe Mann Park
77810 California Drive
Henderson Building Magnesia Falls City Park
74200 Rutledge Way
Artists Center Palma Village Park
Page 555 of 851
City of Palm Desert
Award Contracts for Facilities Improvements
Page 2 of 3
44550 San Carlos Ave
Palm Desert Historical Society University Park East
74902 University Park Drive
University Dog Park
74802 University Park Drive
Washington Charter School Park
45768 Portola Avenue
Future Buildings Future Parks
In January 2023, the City Council awarded Contracts C44620A-C to PUB Construction, Inc.,
Belfor USA Group, and Elite Customs Construction in the aggregated annual amount of
$750,000. These agreements will be amended to be consistent with the $3M aggregate amount
for the facilities on-call contracts. Since the award of those contracts eight months ago, over 25
improvement projects have been completed, and 12 more are being initiated. Having multiple
contractors on call to address the City’s needs helps staff provide a fast response to areas in
need of attention. This type of contract has proven to be in the best interest of the City by allowing
deferred maintenance projects to be completed quickly. By adding two additional contractors to
this pool, Staff will be able to further their ability to obtain competitive bids from the on -call
contractors as projects are initiated.
Due to previous years of deferred maintenance, age, high usage, and the often -immediate
nature of repair or improvement needs, staff see ks to award an additional two “on-call” contracts
to vendors that can efficiently and effectively respond to the City’s needs. Therefore, staff
developed and posted a Request for Proposals (RFP) for the Facilities Repairs and
Improvements Project on OpenGov (the City’s online public bidding portal) on June 13, 2023,
with a due date of July 19, 2023. A mandatory pre-proposal meeting was held on June 27, 2023.
Four vendors were in attendance and four submitted proposals, however one of the submitters
did not attend the mandatory pre-proposal meeting and had to be disqualified. Staff reviewed
the three qualified proposals and identified two contractors to award using the evaluation
guidelines established in the RFP (clarity and conformance, experience, perfo rmance, content
of the proposal, and references). Staff recommends awarding contracts to the following:
Proposer Location Ranking
R&R B Inc dba Servpro of Chino/Chino Hills Chino, CA 1
Doug Wall Construction Bermuda Dunes, CA 2
References for each contractor provided favorable comments to their ability to start and
complete projects on time, provide good communication, and customer service.
By awarding the aggregate (collective) amount of $3,000,000 per fiscal year among a total of
five (5) contractors, the City will have the ability to utilize each contractor’s expertise for specific
task orders and avoid unneeded scheduling delays that could occur.
Page 556 of 851
City of Palm Desert
Award Contracts for Facilities Improvements
Page 3 of 3
FINANCIAL IMPACT:
The approved Public Works Operations and Capital Improvement Project (CIP) Budget for Fiscal
Year 2023-24 includes approximately $3,575,000 for repairs and improvement projects under
various accounts. Therefore, there is no additional financial impact to the general fund.
The following is the estimated allocation budget for each account; however, this does not mean
that the contract is limited to these accounts, not that the full amount will be allocated or spent:
Account No. Description Budget Contract
Total
1104610-4331000 & 4004674-4400100 Civic Center Park $450,000
1104611-4331000 & 4004618-4400100 Parks $450,000
1104614-4392101 Entrada del Paseo $50,000
1104330-4331000 & 4004330-4400100 Corporation Yard $350,000
1104340-4331000 & 4504161-4400100 City Hall $250,000
1104344-4331000 & 4504439-4400100 Portola $100,000
1104800-4388500 & 4504164-4388500 Artists Center $450,000
2304220-4331000 & -4400100 Fire Stations $945,000
2424195-4331101 & -4400100 Aquatic Center $370,000
5104195-4331000 & -4337000 Government Bldgs. $160,000
TOTAL $3,575,000
$3,000,000
ATTACHMENTS:
1. Servpro Proposal
2. Servpro Agreement and Bonds
3. Doug Wall Construction Proposal
4. Doug Wall Construction Agreement and Bonds
Page 557 of 851
Page 558 of 851
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
RESPONSE DEADLINE: July 19, 2023 at 2:00 pm
Report Generated: Saturday, July 29, 2023
R&R B Inc DBA Servpro of Chino/Chino Hills Proposal
CONTACT INFORMATION
Company:
R&R B Inc DBA Servpro of Chino/Chino Hills
Email:
sales@servpro-grie.com
Contact:
Amber Pedersen
Address:
13885 Redwood Ave
Chino, CA 91710
Phone:
(909) 548-3191
Website:
servprochinochinohills.com
Page 559 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 2
Submission Date:
Jul 19, 2023 10:19 AM
ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 18, 2023 2:02 PM by Amber Pedersen
QUESTIONNAIRE
1. Proposal (WITHOUT COST)*
Pass
Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organ ized and
include page numbers for all pages in the proposal. The proposal shall be uploaded here, in the following order and shall include:
A. Cover Letter
1. This letter should briefly introduce the firm, summarize the firm’s general qualifications, include an executive summary of
the specific approach which will be used to deliver the work scope; and identify the individual(s) name, address and phone
number authorized to negotiate Agreement terms and compensation.
B. Experience and Technical Competence
1. Background: Provide history of the firm’s consulting experience which specifically addresses the individual or f irm’s
experience with similar Service as described in this RFP.
Page 560 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 3
2. References: The proposal shall include a list of recently completed projects that are similar in scope and function to this
RFP. Provide a description of the project, client name, and the name, title, and telephone number of the primary contact
person.
C. Firm Staffing and Key Personnel
1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as
well as your firm’s capacity to provide additional personnel as needed.
2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and
responsibility of each individual.
3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.
4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor
that is anticipated to perform each function.
D. Proposed Method to Accomplish the Work
1. Describe the technical and management approach to providing the Services to the City. Proposer should take into account
the scope of the Services, and general functions required. Include a draft first year schedule of tasks, milestones, and
deliverables that will provide for timely provision of the Services. In reviewing the scope of Services and goals described
herein, the Proposer may identify additional necessary tasks and is invited to bring these to the City’s attention within the
discussion of its proposed method to accomplish the work.
City_of_Palm_Desert_RFP_2023-RFP-201.pdf
2. Non-Collusion Declaration*
Pass
The undersigned declares:
I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.
The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organizat ion, or
corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited a ny other Bidder
Page 561 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 4
to put in a false or sham bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone
else to put in a sham bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by agreement,
communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, prof it, or cost
element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, directly or
indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative
thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to
effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.
Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liability company,
limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does exec ute, this
declaration on behalf of the Bidder.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Confirmed
3. Enter your valid CA Contractors State License Board (CSLB) number*
Pass
Please enter your License Number here. This will be verified against the state database
935856
Click to Verify Value will be copied to clipboard
4. Type of Business*
Pass
S Corporation (if corporation, two signatures are required)
5. Litigation*
Pass
Page 562 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 5
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5) years
(or type "N/A").
N/A
6. Changes to Agreement*
Pass
The City standard professional services agreement contract is included as an attachment herein. The Proposer shall identify any
objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are
identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect
theCity's decision to enter into an Agreement.
N/A
7. No Deviations from the RFP*
Pass
In submitting a proposal in response to this RFP, Proposer is certifying that it takes no exceptions to this RFP including, but not limited
to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted here, and may be reason for rejection of the
proposal. As such, Proposer is directed to carefully review the proposed Agreement and, in particular, the insurance and
indemnification provisions therein (or type "N/A").
N/A
8. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualifications,
education, and professional licensing.
Palm_Desert_RFP_Bios.pdf
Page 563 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 6
9. List the Signatory(s) Authorized to Sign and Bind an Agreement.*
Fail
(If two (2) signatures are required, include the following information for both signatories)
A. Full Name
B. Title
C. Physical Business Address
D. Email Address
E. Phone Number
Rick Brogdon, President/Owner, 13885 Redwood Ave. Chino, CA 91710, rick@servpro-grie.com (909)548-3191
10. Certification of Proposal: The undersigned hereby submits its proposal and, by doing so, agrees to furnish services in accord ance
with the Request for Proposal (RFP), and to be bound by the terms and conditions of the RFP.*
Pass
Confirmed
PRICE TABLES
Line Item Description Quantity Unit of Measure Unit Cost Total
1 Construction Foreman 1 Hourly Rate $125.00 $125.00
2 Construction Supervisor 1 Hourly Rate $125.00 $125.00
3 Framer 1 Hourly Rate $125.00 $125.00
Page 564 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 7
Line Item Description Quantity Unit of Measure Unit Cost Total
4 Drywall Installer 1 Hourly Rate $125.00 $125.00
5 Plumber 1 Hourly Rate $125.00 $125.00
6 Concrete Worker 1 Hourly Rate $125.00 $125.00
7 Carpenter 1 Hourly Rate $125.00 $125.00
8 Painter 1 Hourly Rate $115.00 $115.00
9 Welder 1 Hourly Rate $125.00 $125.00
10 Flooring Installer 1 Hourly Rate $125.00 $125.00
11 Laborer 1 Hourly Rate $111.00 $111.00
TOTAL $1,351.00
Page 565 of 851
RE: Facilities Repairs and Improvements Project 2
RFP 2023-RFP-201
Prepared for:
Prepared By:
Cindy Helmstead, Director of Sales & Marketing
Account Manager
cindy@servpro-grie.com
Page 566 of 851
2
Table of Contents
Cover Letter…………………………………………………………..3
Experience and Technical Competence………………………....4
Background…………………………………………………………...4
References…………………………………………………………….5
Firm Staffing and Key Staffing…………….…………………….10
Staffing………………………………………………………………..10
Key Personnel………………………………………………………..11
Team Organization ………………………………………………….12
Subcontractors……………………………………………………….13
Proposed Method to Accomplish the Work…….……………..14
Page 567 of 851
3
SERVPRO Team Brogdon
13885 Redwood Ave
Chino, CA 91710
Office: (909) 548-3191
Richard Trupiano
City of Palm Desert
PW - Operations & Maintenance
Phone: (760) 776-6327
rtrupiano@palmdesert.gov
Re: Proposal for Facilities Repairs and Improvements Project 2
We are pleased to submit our response to the Facilities Repairs and Improvements Project RFP.
SERVPRO Team Brogdon, a highly qualified and experienced contractor, is eager to offer our expertise
and commitment to successfully complete this ongoing project.
R&R B, Inc. – SERVPRO Team Brogdon, specializes in construction, project management, and
consulting services. With a focus on quality restoration and extensive experience in emergency and non -
emergency services, we possess the necessary skills to address the facilities repairs and improvemen ts
needed. Our firm's general qualifications lie in our reputation for delivering exceptional results, adhering to
high-quality standards, and maintaining effective project management. We have successfully executed
numerous projects, including mitigation, fire damage restoration, mold remediation, asbestos/lead
abatement, and various construction initiatives. Our extensive experience and expertise position us as a
trusted contractor in the industry.
Our specific approach to delivering the work scope for the Facilities Repairs and Improvements Project
emphasizes efficient project execution, effective management, and seamless communication. We will
conduct regular site visits, perform thorough assessments, and provide detailed reports outlining
maintenance projects, estimated costs, and project timelines. Our dedicated team of skilled technicians,
supported by a reliable network of subcontractors, ensures the successful completion of complex
construction tasks, comprehensive project management, and expert cons ulting services.
SERVPRO Team Brogdon Owners Rick Brogdon and Rhonda Brogdon, located at 13885 Redwood Ave,
Chino, CA 91710 and reachable at 909-548-3191 are available to negotiate Agreement terms and
compensation on behalf of SERVPRO Team Brogdon.
Cindy Helmstead, Director of Sales & Marketing, will serve as the Account Manager for the City of Palm
Desert.
Warm regards,
Amber Pedersen
Office Administrator
amber@servpro-grie.com
Page 568 of 851
4
Experience and Technical Competence.
Background
SERVPRO Team Brogdon is a leading provider of commercial, industrial, and residential
restoration, construction, and cleaning services that specializes in water, fire, and mold damage,
asbestos abatement as well as biohazard and crime scene cleanup. We’re here 24/7/365 to
respond to any emergency.
Trust us to make it "Like it never even happened."
Founded and led by the dynamic duo of Rick Brogdon and Rhonda Brogdon, SERVPRO Team Brogdon
stands as a testament to their unwavering dedication and exceptional leadership. With over 17 years as
SERVPRO franchise owners, Rick and Rhonda have been instrumental in establishing a strong presence
in the industry. Currently at the helm of seven franchises in Southern California, spanning across San
Bernardino and Riverside counties, SERVPRO Team Brogdon's reach extends far and wide. Their
franchise locations include Chino/Chino Hills, Hesperia/Apple Valley/Barstow/Twentynine
Palms/Victorville, Palm Springs, and Indio/Coachella/Indian Wells/La Quinta.
We take pride in our Indio office, which has been serving the Palm Springs, Coachella, Indian Wells, and
La Quinta communities for over 40 years. Equipped with a 10,000 square foot warehouse, office space, a
robust fleet of trucks, and a skilled team of technicians and employees, we have the necessary resources
to handle any repair, improvement, or emergency service required by the City of Palm Desert.
SERVPRO Team Brogdon has a proven track record of successfully completing projects that align with
the specifications outlined in the RFP. Our expertise covers a wide range of construction disc iplines,
including framing, drywall installation, painting, concrete work, carpentry, welding, flooring installation,
fixtures, and plumbing. With an in-house team of skilled professionals, we ensure meticulous execution
and outstanding results throughout the construction process.
Moreover, we have established a vast network of top-quality subcontractors who complement our in-
house capabilities. These subcontractors have been carefully vetted based on their expertise, reliability,
and commitment to delivering exceptional results. By leveraging this network, we enhance the efficiency
and overall quality of our projects, ensuring timely completion and customer satisfaction.
At SERVPRO Team Brogdon, we understand the unique requirements of the City of Palm Desert. Our
experienced team is adept at coordinating multiple trades, managing complex timelines, and adhering to
stringent industry standards. From foundational elements such as concrete and framing to the final
touches of fixtures and plumbing, we possess the skills and resources to consistently deliver outstanding
results.
We are excited about the opportunity to collaborate with the City of Palm Desert on this project. With our
proven expertise, extensive experience, and unwavering commitment to excellence, SERVPRO Team
Brogdon is the ideal partner to fulfill the construction, project management, and consulting needs outlined
in the RFP.
Page 569 of 851
5
References
We take pride in our extensive portfolio of successfully completed projects that demonstrate our ability to
deliver the services outlined in the RFP. These projects have showcased our expertise and proficiency in
various construction disciplines, including framing, drywall installation, painting, concrete work, carpentry,
welding, flooring installation, fixtures, and plumbing. Each reference provided below exemplifies our
commitment to quality, timely execution, and customer satisfaction. We invite you to review these
references, which serve as a testament to our capabilities and track record of excell ence.
Title of Project: Hi Desert Word Center
Address: 30918 Soapmine Rd. Barstow, CA 92311
Contact Person: Katie Sampler
Telephone No.: 760-256-1312
Scope of Service: Drywall, painting, insulation, finish carpentry, electrical
Project Location: 30918 Soapmine Rd. Barstow, CA 92311
Date of Completion: 09/19/2022
Contract Amount: $38,129
Title of Project: Home 2 Suites
Address: 2570 Fisher Blvd. Barstow, CA 92311
Contact Person: Katherine H.
Telephone No.: 909-731-6181
Scope of Service: Paint, drywall, insulation, wallpaper, plumbing, tile
Project Location: 2570 Fisher Blvd. Barstow, CA 92311
Date of Completion: 10/20/2022
Contract Amount: $78,000
Title of Project: Desert City Dialysis
Address: 11883 Amethyst Rd. Suite 101 Victorville, CA 92392
Contact Person: Len Noy
Telephone No.: 978-560-9739
Scope of Service: Cabinets, drywall, paint, insulation
Project Location: 11883 Amethyst Rd. Suite 101 Victorville, CA 92392
Date of Completion: 03/21/2023
Contract Amount: $9,000
Title of Project: Coachella Valley Unified School District
Address: 87-225 Church St. Thermal, CA 92274
Contact Person: David Baucom
Telephone No.: 760-848-1872
Scope of Service: Abatement and window replacement
Project Location: 83800 Airport Blvd. Thermal, CA 92274
Date of Completion: In Progress
Page 570 of 851
6
Contract Amount: $134,000
References – Continued
Title of Project: Desert Sands Unified School District
Address: 47950 Dune Palms Rd. La Quinta, CA 92253
Contact Person: Johnny Alvarez
Telephone No.: 760-771-8553
Scope of Service: Repairs, shelfing, cabinets, countertops
Project Location: 83200 Dr. Carreon Blvd. Indio, CA 92201
Date of Completion: 06/16/2023
Contract Amount: $7,515
Title of Project: JFK Memorial Hospital
Address: 47-111 Monroe St. Indio, CA 92201
Contact Person: Todd Sackett
Telephone No.: 760-775-8191
Scope of Service: Cabinets, countertops, drywall, paint
Project Location: 47-111 Monroe St. Indio, CA 92201
Date of Completion: 06/01/2023
Contract Amount: $11,000
Title of Project: Immanuel Christian School
Address: 201 W. Graaf Ave. Ridgecrest, CA 93555
Contact Person: Heather Urich
Telephone No.: 760-446-6114
Scope of Service: Drywall, tape, mud, texture, primer, paint, countertops, cabinets and abatement
Project Location: 201 W. Graaf Ave. Ridgecrest, CA 93555
Date of Completion: 07/18/2022
Contract Amount: $152,019
Page 571 of 851
7
Letters of Recommendation
Page 572 of 851
8
Page 573 of 851
9
Page 574 of 851
10
Page 575 of 851
11
Firm Staffing and Key Personnel
Staffing
At SERVPRO Team Brogdon, we take pride in the strength and capabilities of our staff, which consists of
over 25 skilled technicians spread across our three offices. This dedicated workforce empowers us to
handle a wide range of maintenance projects for the City of Palm Desert efficiently. Our technicians bring
a wealth of expertise and experience to the table, allowing us to deliver high-quality services that meet
the city's needs and exceed expectations.
Our Indio office, conveniently located at 81785 Trader Place Suite A, Indio, CA 92201, serves as the
primary responding office for the City of Palm Desert. This office is equipped with a 10,000 square foot
warehouse, spacious office facilities, and an extensive fleet of trucks. With these resourc es at our
disposal, along with a highly skilled team of technicians and employees, we have the necessary
infrastructure and capabilities to handle any repair, improvement, or emergency service required by the
City of Palm Desert.
To ensure the successful execution of maintenance projects, all services rendered for the City of Palm
Desert will be overseen by Curtis Brogdon, our Operations Manager. Curtis brings extensive knowledge
and experience to his role, ensuring that each project is meticulously planned , coordinated, and executed
to meet the city's requirements and specifications. Supported by a team of key personnel, including Kristy
Dayton, Dave Garcia, Aubrey Garcia, and Cindy Helmstead, our dedicated team is committed to
delivering exceptional results and providing a seamless experience for the City of Palm Desert.
In addition to our skilled in-house team, we leverage our extensive subcontractor network to further
enhance our capabilities. Our carefully selected subcontractors have a proven track reco rd of delivering
exceptional workmanship and meeting project deadlines. We strategically utilize their specialized
expertise to handle specific aspects of the maintenance projects, allowing us to provide comprehensive
solutions that address the city's unique needs. Through this collaborative approach, we ensure that all
work is executed to the highest standards, leveraging the combined expertise of our in -house team and
trusted subcontractors.
By leveraging our skilled staff and subcontractor network, SERVPRO Team Brogdon is fully equipped to
successfully execute maintenance projects for the City of Palm Desert. Our comprehensive approach,
attention to detail, and commitment to exceeding expectations enable us to deliver exceptional results,
tailored to meet the specific needs of the city. We are dedicated to providing the highest level of service,
ensuring the long-term functionality, safety, and aesthetics of the city's facilities.
Page 576 of 851
12
Key Personnel
Curtis Brogdon, Operations Manager: Curtis Brogdon is a highly experienced professional who brings
a wealth of knowledge and expertise to his role as Operations Manager. With a deep understanding of the
industry, Curtis oversees the assessment and planning of work for SERVPRO Team Brogdon. He plays a
pivotal role in ensuring that each project is carefully evaluated, meticulously planned, and executed to
meet the specific requirements of the City of Palm Desert. Curtis's attention to detail, strategic thinking,
and extensive experience contribute to the successful implementation of maintenance projects.
Kristy Dayton, Construction Manager: As the Construction Manager, Kristy Dayton plays a vital role in
collaborating closely with Curtis Brogdon in the assessment and planning of work. With her
comprehensive understanding of construction principles and techniques, Kristy brings valuable insights to
the table. Her meticulous attention to detail ensures that every aspect of the maintenance projects is
thoughtfully considered, resulting in effective execution and successful outcomes. Kristy's expertise and
dedication contribute to the seamless coordination and management of construction activities.
Dave Garcia, Project Manager: Dave Garcia is a seasoned project manager with a proven track record
of delivering successful outcomes. Working closely with our team based in the Indio office, Dave ensures
the smooth execution of projects. His leadership, organization, and effective communication skills enable
him to provide guidance and supervision to our technicians. Dave's ability to navigate complex project
requirements, allocate resources efficiently, and monitor progress closely ensures that projects are
completed on time and to the highest standards.
Aubrey Garcia, Project Manager: Aubrey Garcia collaborates with Dave in overseeing the project
management aspect of SERVPRO Team Brogdon's operations. With a wealth of experience and
expertise, Aubrey contributes to the seamless execution of tasks and adherence to project objectives.
Together with Dave, Aubrey ensures that all tasks are carried out efficiently, deadlines are met, and
quality workmanship is maintained throughout the duration of the projects. Their combined knowledge
and dedication enable them to overcome challenges and deliver exceptional r esults.
Cindy Helmstead, Director of Sales and Marketing, Account Manager: Cindy Helmstead serves as
the dedicated Account Manager for the City of Palm Desert. As the primary point of contact, Cindy
ensures seamless communication between SERVPRO Team Brogdon and the City. Her role is to address
concerns promptly, facilitate effective coordination, and ensure that client expectations are met or
exceeded. Cindy's commitment to client satisfaction, proactive approach, and exceptional organizational
skills make her an invaluable asset in maintaining a strong partnership with the City.
Page 577 of 851
13
Team Organization
Our team is organized to ensure optimal coordination and efficiency throughout the project. Under the
leadership of Curtis Brogdon, Kristy Dayton, Dave Garcia, and Aubrey Garcia, our technicians work together
to execute the necessary maintenance tasks. This collaborative approach ensures smooth operations and
adherence to project timelines.
Supporting our technicians and project managers are our office administrators, Amber Pederson and
Heather Schaeffer. They play a vital role in handling administrative tasks, supporting the team, and
contributing to the overall success of our projects.
With this well-structured staffing setup, key personnel in strategic roles, and a cohesive team organization,
SERVPRO Team Brogdon is well-prepared to deliver exceptional results and foster a successful partnership
with the City of Palm Desert.
Page 578 of 851
14
Subcontractors
In addition to our in-house expertise, we maximize our capabilities by utilizing a network of trusted
subcontractors. These subcontractors have been carefully selected based on their specialized skills and
proven track record of delivering high-quality workmanship. When necessary, we leverage their expertise
to handle specific aspects of the projects, ensuring that all tasks are executed to the highest standards.
By collaborating with our subcontractors, we are able to tap into their specialized knowledge and
capabilities, enhancing the overall quality and efficiency of our projects. This allows us to address diverse
maintenance needs across various disciplines, including framing, drywall installation, painting, concrete
work, carpentry, welding, flooring installation, fixtures, and plumbing. We maintain close relationships with
our subcontractors, ensuring clear lines of communication, coordination, and accountability.
Our team actively oversees and manages the work of subcontractors, providing guidance, supervision,
and quality control to ensure their work aligns with our commitment to excellence. This collaborative
approach allows us to scale our workforce and resources based on project demands, ensuring that we
can meet tight deadlines, handle multiple concurrent projects, and deliver services efficiently.
By leveraging our extensive subcontractor network in conjunction with our skilled in-house team,
SERVPRO Team Brogdon ensures the successful execution of maintenance projects for the City of Palm
Desert. Through this strategic approach, we offer comprehensive solutions tailored to meet the specific
needs of the city, delivering exceptional results that exceed expectations.
List of Subcontractors:
Name Under Which Subcontractor is Licensed: Jergensen Construction
License Number: 536592
Address of Office, Mill or Shop: 9320 Daisy Rd. Oak Hills, CA 92344
Specific Description of Sub-Contract and Bid Items of Work: Concrete
Name Under Which Subcontractor is Licensed: Western Plumbing
License Number: 1021101
Address of Office, Mill or Shop: 2784 Wycliffe St. Corona, CA 92879
Specific Description of Sub-Contract and Bid Items of Work: Plumbing
Name Under Which Subcontractor is Licensed: California On-Site Welding
License Number: 999417
Address of Office, Mill or Shop: 23702 Cruise Circle Dr. Canyon Lake, CA 92587
Specific Description of Sub-Contract and Bid Items of Work: Welding
Name Under Which Subcontractor is Licensed: Vector USA
License Number: 654046
Address of Office, Mill or Shop: 8647 Ninth St. Rancho Cucamonga, CA 91730
Specific Description of Sub-Contract and Bid Items of Work: Audio/Visual
Page 579 of 851
15
Proposed Method to Accomplish the Work
Assessment and Planning: Our skilled technicians will regularly visit each facility listed in the scope of
work. During these visits, we will conduct thorough inspections and assessments to identify maintenance
needs and recommend improvement projects. Our expertise spans various areas, including framing,
drywall installation, painting, concrete work, carpentry, welding, flooring installation, fixtures, and
plumbing. Working closely with City staff, we will develop long-term plans for facility upkeep, ensuring that
each location's unique requirements are addressed.
Resource Allocation and Subcontractor Network: With a highly skilled in-house team, we possess the
proficiency to handle a wide range of maintenance tasks directly. Our technicians specialize in various
trades, enabling us to efficiently address maintenance needs across multiple disciplines. Additionally, we
have cultivated a network of trusted subcontractors who excel in specific areas. This strategic partnership
allows us to tap into their expertise when necessary, ensuring that all projects are completed to the
highest standards.
Task Scheduling and Milestones: Collaborating closely with City staff, we will develop a detailed
schedule of tasks, milestones, and deliverables for the entire contract term. This schedule will prioritize
maintenance projects based on their urgency and importance. By establishing clear deadlines for each
task, we ensure effective project management and progress monitoring. Regular updates will be provided
to the City, promoting transparency and facilitating adjustments as needed.
Collaboration and Communication: Open communication and collaboration are vital to the success of
any project. We will establish clear communication channels and designate specific points of contact to
ensure prompt response to maintenance requests and efficient coordination of site visits. By actively
engaging in discussions with City staff, we will address any modifications or additional tasks required to
achieve the project goals effectively.
Quality Assurance: Our commitment to delivering high-quality workmanship is unwavering. Adhering to
industry best practices, building codes, and safety regulations, our technicians will ensure that all
maintenance projects meet the highest standards. Thorough quality inspections will be conducted
throughout the process to identify and address any deficiencies promptly. Our goal is to ensure that the
City's facilities are safe, functional, and aesthetically pleasing.
Page 580 of 851
16
Proposed Method to Accomplish the Work - Continued
Emergency Response Plan:
We understand the critical importance of emergency preparedness, and as part of our proposal, we have
developed an expanded Emergency Response Plan tailored specifically for the City of Palm Desert. This
plan includes:
Activation Process: In the event of an emergency, City staff can reach our dedicated 24/7/365 dispatch
phone number. Our experienced staff will gather essential information and deploy qualified technicians
and necessary supplies to the emergency location. An on-call manager will coordinate the deployment of
workers and equipment.
Primary Responding Office: Our Indio office, conveniently located at 81785 Trader Pl STE A, Indio, CA
92201, will serve as the primary responding office for the City of Palm Desert. This strategically positioned
facility allows for a quick response to emergency situations.
Account Manager and Communication: A dedicated Account Manager, Cindy Helmstead, will be
promptly notified of any emergency situations. Cindy will serve as the primary point of contact, ensuring
effective communication and coordination between SERVPRO Team Brogdon and the City. Her role is to
provide personalized attention to the City's emergency needs, ensuring a seamless and efficient
response.
Response Time: Our on-site response time to the City of Palm Desert is typically 1 to 2 hours or less.
We understand the importance of a swift response in emergency situations. In the unlikely event of
unforeseen circumstances beyond our control, we will promptly communicate with the on-site contact and
Cindy Helmstead to provide estimated arrival times.
Emergency Supplies and Security: Our emergency crews arrive fully equipped with necessary supplies
to address emergency situations. This includes board-ups, shrink wrap for exposed parts, perimeter
fencing, locks, lock-in/out protocols, and 24/7 pre-qualified outside security measures. We prioritize the
immediate protection of properties to minimize further damage and ensure the safety of the affected
areas.
In conclusion, SERVPRO Team Brogdon's proposed methodology encompasses a comprehensive range
of services to meet the City of Palm Desert's facility m aintenance needs. Our team of skilled technicians
excels in various trades, allowing us to efficiently address a wide range of tasks. We are committed to
delivering high-quality workmanship, effective communication, and prompt response times. With our
expertise and dedication to excellence, we are confident that our services will enhance the functionality
and longevity of the City's facilities. Additionally, our comprehensive Emergency Response Plan ensures
the City's preparedness and rapid resolution in the event of unforeseen emergencies, allowing for efficient
and effective emergency response and mitigation.
Page 581 of 851
Curtis Brogdon
Operations Manager
SERVPRO Team Brogdon
PROFESSIONAL EXPERIENCE
Curtis Brogdon is an accomplished Operations Manager with an extensive background in the restoration
and construction industry. With 14 years of experience at SERVPRO Team Brogdon, Curtis has consistently
proven himself as a valuable member of the team, demonstrating exceptional skills in project management,
customer service, and team leadership. Throughout his career at SERVPRO Team Brogdon, Curtis has
held various positions, including Technician, Crew Chief, and Production Manager.
Curtis's project management expertise spans a wide range of jobs, ranging from smaller-scale projects
valued at $500 to multimillion-dollar endeavors exceeding $2M. It is through these experiences that Curtis
has found a deep passion for tackling large-scale projects, as they provide him with invaluable opportunities
to grow and expand his skill set. In 2022, Curtis spearheaded the cleanup and restoration of a substantial
warehouse fire in Ontario, CA, which stands as the largest project he has ever managed. .
In addition to his hands-on experience, Curtis is highly certified in various areas, including Water Damage
Restoration Technician, Applied Microbial Remediation, Commercial Drying, Applied Structural Drying, and
Asbestos Supervisor. These certifications exemplify his commitment to staying at the forefront of industry
knowledge and his dedication to delivering the highest quality of workmanship. Curtis's unwavering
dedication to his craft, combined with his meticulous attention to detail and strong managerial skills, has
earned him a reputation as a reliable and skilled Operations Manager.
When faced with large-scale, area-wide disaster projects, Curtis's expertise extends beyond the boundaries
of his own team. He has traveled extensively throughout the United States, collaborating with other
SERVPRO franchises to provide assistance during critical times such as Hurricane Irene in 2009 and the
Texas Winter Freeze in 2021. These experiences have solidified his adaptability, resourcefulness, and
ability to thrive under challenging circumstances.
With a track record of successfully managing projects of varying scales, a deep commitment to continuous
learning, and a steadfast dedication to excellence, Curtis Brogdon is an ideal candidate to lead and oversee
any restoration or construction project. His exceptional skills, extensive experience, and proven ability to
deliver outstanding results make him a valuable asset to any project.
EDUCATION, TRAINING & CERTIFICATIONS
IICRC Water Damage Restoration Technician
IICRC Advanced Structural Drying Technician
IICRC Applied Microbial Remediation Technician
IICRC Commercial Drying Specialist
Asbestos Supervisor Certification
Page 582 of 851
Kristy Dayton
Reconstruction Manager
SERVPRO Team Brogdon
PROFESSIONAL EXPERIENCE
Kristy Dayton is an accomplished Reconstruction Manager for SERVPRO Team Brogdon, equipped with a
wealth of 15 years' experience within the SERVPRO Network. Throughout her career, Kristy has excelled
in diverse roles such as Estimator, Project Manager, and General Manager. Her extensive expertise and
unwavering dedication make her an invaluable asset to our team. Kristy's exceptional leadership and
comprehensive understanding of the industry ensure the successful execution of projects under her
guidance. With her proven track record of delivering exceptional results, she consistently surpasses client
expectations and upholds SERVPRO Team Brogdon's commitment to excellence.
In addition to her experience, Kristy has also completed numerous training and certification programs such
as Xactimate and Biohazard Management. With a strong foundation in customer service, estimating, project
management, finances, and data entry, Kristy possesses a versatile skill set that makes her an invaluable
addition to the SERVPRO Team Brogdon.
Kristy has helped SERVPRO franchises all over the country during large-scale, area- wide disaster projects
such as Hurricane Charley (2004), Hurricane Ivan (2004), Hurricane Sandy (2012), the 2018 Malibu fires,
the 2021 Texas freeze, Hurricane Ida (2021),the 2023 Oregon polar freeze, and the 2023 Northeast Polar
freeze
EDUCATION, TRAINING & CERTIFICATIONS
Xactimate
Biohazard Management
Page 583 of 851
David Garcia
Project Manager
SERVPRO Team Brogdon
PROFESSIONAL EXPERIENCE
David Garcia is an experienced Project Manager with an impressive 30-year career in the restoration and
construction industries. Throughout his extensive career within the SERVPRO Network, David has held
various roles including Production Assistant, Crew Chief, Estimator, Production Manager, and Operations
Manager.
David's expertise is underscored by his notable certifications from the Institute of Inspection, Cleaning
and Restoration Certification (IICRC). Holding certifications as a Water Remediation Technician, Applied
Structural Drying, Carpet Cleaning Technician, Stone & Tile Cleaning Technician, and Applied Microbial
Remediation Technician, David brings valuable skills and knowledge to SERVPRO Team Brogdon.
Moreover, his past experience as an Asbestos Building Inspector and RRP Lead further enhances his
qualifications.
Beyond his professional pursuits, David dedicates his free time to making a positive impact in his
community. He actively volunteers with the Narrow Door food pantry and actively fundraises to donate
toys to the Coachella Valley Christmas Store, showcasing his commitment to serving others.
David's contributions extend beyond local engagements, as he has been instrumental in assisting
SERVPRO franchises across the country during large-scale, area-wide disaster projects. His proficiency
as an Estimator and Project Manager has been demonstrated in his involvement with critical situations,
such as the fires in Pioneer Town (2006), the fires in San Diego (2008), the floods in La Quinta (2013), the
floods in Texas (2021), and the storms in Northern California (2023). David's unwavering dedication and
proven track record make him an invaluable asset to SERVPRO Team Brogdon.
EDUCATION, TRAINING & CERTIFICATIONS
IICRC Water Remediation Technician
IICRC Applied Structural Drying Technician
IICRC Carpet Cleaning Technician
IICRC Stone, Masonry, and Ceramic Tile Cleaning
IICRC Applied Microbial Remediation Technician
Previously Asbestos Building Inspector Certified Previously RRP Lead Certified
Page 584 of 851
Aubrey Garcia
Project Manager
SERVPRO Team Brogdon
PROFESSIONAL EXPERIENCE
Aubrey Garcia is an exceptional Project Manager at SERVPRO Team Brogdon, with an impressive 25-
year career focused on restorations and construction. Having held various positions within her career,
Aubrey possesses a deep understanding of the construction industry and has honed her project
management skills. Her versatility and adaptability make her an invaluable asset to any team. Throughout
her journey, she has acquired a diverse skill set, demonstrating proficiency in administrative tasks,
overseeing operations, and providing effective leadership. Aubrey's ability to excel in different roles
showcases her versatility and adaptability within the construction industry.
Aubrey’s extensive construction experience is marked by her successful management of notable projects.
Whether working alongside construction crews in the field, coordinating with adjusters on-site, or leading
impactful marketing events, she consistently demonstrates her expertise and effectiveness. Aubrey's
exceptional communication, organizational skills, and leadership abilities foster strong collaborations with
clients, stakeholders, and construction teams, ensuring seamless project execution.
Beyond her professional accomplishments, Aubrey actively engages in community involvement through
her participation in organizations such as CAI (Community Associations Institute) and the Rancho Mirage
Chamber of Commerce. Her commitment to community service initiatives further highlights her desire to
make a positive impact beyond her professional responsibilities. Aubrey’s construction expertise has been
tested during area-wide catastrophes, including the flash flooding events that impacted the Coachella
Valley in 2014 and 2015. Her adept management of construction projects and skillful damage mitigation in
challenging situations underscore her ability to deliver effective solutions and lead successful restoration
efforts.
Aubrey Garcia's extensive construction experience, versatile skill set, and unwavering commitment to
excellence make her an invaluable choice for any construction project. Her profound understanding of the
industry, coupled with exceptional communication, organizational skills, and leadership abilities,
guarantee the successful completion of projects with utmost professionalism and quality.
Page 585 of 851
Cindy Helmstead
Director of Sales & Marketing
SERVPRO Team Brogdon
PROFESSIONAL EXPERIENCE
Cindy Helmstead is a seasoned professional in the restoration and construction industries, with over 30
years of experience under her belt. As the Director of Sales & Marketing for SERVPRO Team Brogdon,
she plays a critical role in driving business growth and ensuring customer satisfaction.
Cindy's career in the restoration industry began with her work on the sales team of other restoration
companies, where she gained extensive training and expertise in all areas of the industry. Her experience
includes working on complex restoration projects, managing teams, and providing top-notch customer
service.
Over the years, Cindy has attended numerous educational seminars and training in marketing, as well as
content restoration. Her dedication to continuous learning and staying up to date with the latest trends in
the industry has helped her excel in her role and deliver exceptional results.
In addition to her work in the construction and restoration industry, Cindy has also studied and received
her principal real estate broker's license as well as a notary public license. Her background in real estate
and legal documentation has proven to be a valuable asset in her work, providing her with a
comprehensive understanding of the legal and regulatory landscape that surrounds the restoration
industry.
Cindy's passion for helping others, combined with her extensive knowledge and experience in the
restoration and construction industries, make her a valuable asset to any team. She is dedicated to
providing top-notch customer service and ensuring that every project she works on is completed to the
highest standards of quality and professionalism.
Page 586 of 851
Contract No. C44620D
- 1 -
CITY OF PALM DESERT
MAINTENANCE SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 24th day of August, 2023, 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 R&R Inc DBA Servpro of Chino/Chino
Hills, a Corporation, with its principal place of business at 13885 Redwood Ave, Chino, CA
91710 (“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 Facilities Repairs and
Improvements Project 2 (“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 August 24, 2023, 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 2 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
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
Page 587 of 851
Contract No. C44620D
- 2 -
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 Shawn Muir,
Community Services Manager, 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 Rick
Brogdon, President/Owner, 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
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
Page 588 of 851
Contract No. C44620D
- 3 -
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
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,
Page 589 of 851
Contract No. C44620D
- 4 -
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-
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.
Page 590 of 851
Contract No. C44620D
- 5 -
(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) 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 Agreement 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.
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.
Page 591 of 851
Contract No. C44620D
- 6 -
(B) 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, 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.
Page 592 of 851
Contract No. C44620D
- 7 -
(I) Notice of Cancellation. Contractor 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, 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.
Page 593 of 851
Contract No. C44620D
- 8 -
3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury
or damage to any person or property. In carrying out its Services, the Contractor shall at all times
be in compliance with all applicable local, state and federal laws, rules and regulations, and shall
exercise all necessary precautions for the safety of employees appropriate to the nature of the
work and the conditions under which the work is to be performed. Safety precautions, where
applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving
equipment and procedures; (B) instructions in accident prevention for all employees and
subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks,
confined space procedures, trenching and shoring, equipment and other safety devices,
equipment and wearing apparel as are necessary or lawfully required to prevent accidents or
injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety
measures.
3.2.13 Bonds.
3.2.13.1 Performance Bond. If required by law or otherwise
specifically requested by City in Exhibit “D” 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 “D” 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
Page 594 of 851
Contract No. C44620D
- 9 -
Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the
City.
3.2.14 Accounting Records. Contractor shall maintain complete and accurate
records with respect to all costs and expenses incurred under this Agreement. All such records
shall be clearly identifiable. Contractor shall allow a representative of City during normal business
hours to examine, audit, and make transcripts or copies of such records and any other documents
created pursuant to this Agreement. Contractor shall allow inspection of all work, data,
documents, proceedings, and activities related to the Agreement for a period of three (3) years
from the date of final payment under this Agreement.
3.2.15 Work Sites.
3.2.15.1 Inspection Of Site. Contractor shall visit sites where
Services are to be performed and shall become acquainted with all conditions affecting the
Services prior to commencing the Services. Contractor shall make such examinations as it deems
necessary to determine the condition of the work sites, its accessibility to materials, workmen and
equipment, and to determine Contractor’s ability to protect existing surface and subsurface
improvements. No claim for allowances–time or money–will be allowed as to such matters after
commencement of the Services.
3.2.15.2 Field Measurements. Contractor shall make field
measurements, verify field conditions and shall carefully compare such field measurements and
conditions and other information known to Contractor with the Contract, 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
Page 595 of 851
Contract No. C44620D
- 10 -
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
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 maximum compensation
for Services to be provided pursuant to each Task Order shall be set forth in the relevant Task
Order. The total compensation, in the aggregate, shall not exceed Three Million Dollars
($3,000,000.00) annually 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.
Page 596 of 851
Contract No. C44620D
- 11 -
3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any
expenses unless authorized in writing by City.
3.3.5 Extra Work. At any time during the term of this Agreement, City may
request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which
is determined by City to be necessary for the proper completion of the Project, but which the
parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Contractor shall not perform, nor be compensated for, Extra Work without written authorization
from City’s Representative.
3.3.6 Prevailing 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 597 of 851
Contract No. C44620D
- 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:
R&R B Inc DBA Servpro of Chino/Chino Hills
13885 Redwood Ave
Chino, CA 91710
Attn: Rick Brogdon, President/Owner
City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Shawn Muir, Community Services Manager
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 598 of 851
Contract No. C44620D
- 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 599 of 851
Contract No. C44620D
- 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 600 of 851
Contract No. C44620D
- 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.
3.5.18 Reserved.
[SIGNATURES ON NEXT PAGE]
Page 601 of 851
Contract No. C44620D
SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND R&R B INC DBA SERVPRO OF CHINO/CHINO HILLS
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:
Anthony J. Mejia
City Clerk
Approved as to form:
By:
Best Best & Krieger LLP
City Attorney
R&R B INC DBA SERVPRO OF
CHINO/CHINO HILLS, A CORPORATION
By:
Its:
Printed Name:
By:
Its:
Printed Name:
Contractor’s License Number and
Classification
DIR Registration Number (if applicable)
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Bonds: _____
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Bonds: _____
Page 602 of 851
Contract No. C44620D
Exhibit A
EXHIBIT “A”
PALM DESERT FACILITIES IMPROVEMENT PROJECT
SCOPE OF SERVICES
1. SCOPE OF WORK
The work to be done consists of furnishing all labor, incidental materials, equipment,
necessary tools and machinery, supervision, all utility and transportation services, and
incidentals required for the Facilities Improvement project in accordance with the
Specifications.
This contract provides for the regular evaluation and maintenance project services for
the City owned or operated facilities listed below.
2. LOCATION OF WORK
• City Hall Building, 73-510 Fred Waring Drive
• Community Center (Henderson), 72559 Highway 111
• Corporation Yard, 74705 42nd Avenue
• Portola Community Center, 45480 Portola Avenue
• Palm Desert Sheriff Substation, 73520 Fred Waring Drive
• Parkview Office Complex, 73710 Fred Waring Drive
• State Building, 73-720 Fred Waring Drive
• iHUB, 37023 Cook Street, Suite 102
• Fire stations
o Fire Station No. 33, 44400 Towne Center Way
o Fire Station No. 67, 73200 Mesa View Drive
o Fire Station No. 71, 73995 Country Club Drive
• Aquatic Center, 73751 Magnesia Falls Drive
• Parks buildings
o Cahuilla Hills Park, 45825 Edgehill Drive
o Cap Homme / Ralph Adams Park, 72-500 Thrush Rd
o Civic Center Park, 43900 San Pablo Ave
o Freedom Park, 77400 Country Club Dr
o Hovley Soccer Park, 74735 Hovley Lane
o Ironwood Park, 47800 Chia Drive
o Joe Mann Park, 77810 California Drive
o Magnesia Falls City Park, 74200 Rutledge Way
o Palma Village Park, 44550 San Carlos Ave
o University Park East, 74902 University Park Drive
o University Dog Park, 74802 University Park Drive
o Washington Charter School Park, 45768 Portola Avenue
The Contractor will furnish all labor, materials, renderings, equipment, tools, removal,
installation, coordination, permits, supervision, utility and transportation services, and
incidentals (including tax) as necessary. Each of these facilities has unique
maintenance needs that will be met through this contract. All facility maintenance and
improvement projects will be conducted in a manner that provides for the adequate and
Page 603 of 851
Contract No. C44620D
Exhibit A
safe use of the facility and continues the City’s prominence as a world-class municipality
for the enjoyment of the community.
3. GENERAL SERVICES TO BE PERFORMED
Contractor shall provide the necessary equipment and labor to perform maintenance
projects on an as-requested basis for the City. Facilities maintenance requests will be
based on contractor assessments in coordination with City staff.
3.1 Contractor will visit the above listed Palm Desert facilities a minimum of once per
quarter on a rotating basis, or based on priority designated by City staff. The purpose
of the site visits is to perform inspections and assessments, provide recommendations,
and develop long-term plans for facility upkeep. A written report will be developed by
the Contractor after each site visit and submitted to City staff within two weeks of the
site visit. Minimum requirements for the report include:
• Site locations visited and address
• Contractor representative and contact information
• Date and time of visit
• Prioritized list of areas recommended for maintenance projects
• Descriptions of maintenance projects
• Estimated cost to complete each maintenance project
• Photos
3.2 The contractor will provide technicians capable of working on a variety of facility
elements, including but not limited to:
• Framing
• Drywall
• Painting
• Concrete
• Carpentry
• Audio/Visual & Security
• Welding
• Flooring
• Fixtures
• Plumbing
3.3 In addition to scheduled quarterly site visits, Contractor will participate in one (1)
meeting annually for the duration of the contract with City staff to review short-term
and long-term maintenance need projections and life expectancies of facility
furnishings. This will allow the City to accurately budget and plan for anticipated
maintenance needs, facility repairs and upgrades.
3.4 Contractor shall provide appropriate equipment and labor for the execution of all
maintenance and repair activities. City of Palm Desert reserves the right to inspect
and/or approve any equipment used in this contract. If City of Palm Desert deems the
equipment to be in disrepair or inappropriate to the task at hand, City of Palm Desert
may require that the equipment be removed from the job site and replaced with a
different piece of equipment.
3.5 Contractor shall provide personnel fully trained in all phases of facility maintenance.
Page 604 of 851
Contract No. C44620D
Exhibit A
Contractor shall provide personnel capable of effective verbal and written
communication with City of Palm Desert representatives. If City of Palm Desert deems
personnel to be inadequate to accomplish the task at hand, City of Palm Desert may
require that the personnel be removed from the job site and replaced with personnel
demonstrating the appropriate level of job knowledge, skills, and verbal
communication to effectively accomplish the work.
3.6 Prior to commencement of the contract, designated City of Palm Desert
representative(s) and the Contractor will perform a mandatory acceptance walk-
through inspection of the contract area.
3.7 All new equipment installations provided by the Contractor will include a one-year
warranty or better.
3.8 Contractor shall remove debris caused by all maintenance activities on the same
working day that such debris is accumulated, unless otherwise agreed upon by the
Contractor and City staff in advance.
3.9 Contractor is required to protect from damage as necessary, existing equipment that
is not part of the maintenance services. Contractor will be responsible to replace or
repair any equipment damaged by contractor, not related to the service, at Contractor’s
expense and include a one-year warranty or better.
3.10 Contractor is responsible for cordoning off public areas during their course of work as
to protect the public from harm. Contractor is to supply all safety equipment as needed
to perform the scope of work, including but not limited to: signage, cones, partitions,
plywood covers, etc.
3.11 Pursuant to Section 7028.15 of the Business and Professions Code and Section 3300
of the Public Contract Code, all proposers must possess proper licenses for
performance of the Contract. Subcontractors must possess the appropriate licenses
for each specialty subcontracted. Pursuant to Section 7028.5 of the Business and
Professions Code, the City shall consider any proposal submitted by a contractor not
currently licensed in accordance with state law and pursuant to the requirements found
in the Contract Documents to be nonresponsive, and the City shall reject the proposal.
The City shall have the right to request, and the proposers shall provide within five (5)
calendar days, evidence satisfactory to the City of all valid license(s) currently held by
that proposer and each of the proposer’s subcontractors before awarding the Contract.
4. MAINTENANCE PROJECTS
Maintenance projects will be determined based on the prioritized lists developed
through the quarterly facility inspections. City of Palm Desert staff will inform the
contractor when a maintenance project may be initiated.
4.1 No work will be initiated without an approved City of Palm Desert Work Order.
4.2 City of Palm Desert staff will hold a meeting with the Contractor to finalize the scope
and cost of the project.
4.3 The Contractor will provide an estimated timeline for project milestones and
Page 605 of 851
Contract No. C44620D
Exhibit A
completion.
5. PAYMENT
Maintenance service and materials not described in this scope of work will be needed
periodically to satisfactorily maintain the City facilities. On such occasions, the following
criteria will be followed:
5.1 All work shall be approved in writing on a City-issued extra work form by the Director
of Public Works, or his designee, prior to ordering or commencing activities.
5.2 Contractor’s failure to obtain prior written authorization to order parts or to perform
work shall constitute the City’s denial of payment for said work and parts. Upon
Contractor’s submission of requests for work and/or parts the City reserves the right
to reject quotations on each item, separately or as a whole.
5.3 State and local taxes as applicable, shipping/handling/freight on board charges,
applied discounts, and labor estimates shall be shown separately. All materials will
be paid at cost plus an allowable 15% markup. Labor will be paid based on the
approved Price Sheet. Receipts are required to be submitted with approved
invoice(s). Estimated dates for delivery and installation shall be noted.
5.4 In addition to the rates listed on the Price Sheet, Contractor shall submit a list
of services provided and costs not listed in the Scope of Services or Price
Sheets. The City may negotiate costs, if needed, prior to approval of the
Agreement.
Page 606 of 851
Contract No. C44620D
Exhibit B
EXHIBIT “B”
SCHEDULE OF SERVICES
The term of this Agreement shall be from August 24, 2023, 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 2 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 607 of 851
Contract No. C44620D
Exhibit C
EXHIBIT “C”
COMPENSATION
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. The
City and Contractor may review the CPI on an annual basis and recommend adjustments to the
City Manager or City Council for approval. Any increase shall not exceed the Consumer Price
Index.
The total compensation shall not exceed Three Million Dollars ($3,000,000.00) annually without
written approval of the City Council or City Manager, as applicable. Pricing schedule is as follows:
Line Item Description Quantity Unit of
Measure
Amount
1 Construction Foreman 1 Hourly Rate $125.00
2 Construction Supervisor 1 Hourly Rate $125.00
3 Framer 1 Hourly Rate $125.00
4 Drywall Installer 1 Hourly Rate $125.00
5 Plumber 1 Hourly Rate $125.00
6 Concrete Worker 1 Hourly Rate $125.00
7 Carpenter 1 Hourly Rate $125.00
8 Painter 1 Hourly Rate $115.00
9 Welder 1 Hourly Rate $125.00
10 Flooring Installer 1 Hourly Rate $125.00
11 Laborer 1 Hourly Rate $111.00
Total $1,351.00
Page 608 of 851
ANNUALLY RENEWABLE PERFORMANCE BOND Contract No. C44620D
Exhibit D
EXHIBIT “D” BONDS
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded
to R&R B Inc DBA Servpro of Chino/Chino Hills, (hereinafter referred to as the “Contractor”) an
agreement for Facilities Repairs and Improvements 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 August 24, 2023, (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, R&R B Inc DBA Servpro of Chino/Chino Hills 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 THREE MILLION DOLLARS,
($3,000,000.00), 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-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
Page 609 of 851
ANNUALLY RENEWABLE PERFORMANCE BOND Contract No. C44620D
Exhibit D
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
(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 610 of 851
ANNUALLY RENEWABLE PERFORMANCE BOND Contract No. C44620D
Exhibit D
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 611 of 851
ANNUALLY RENEWABLE PERFORMANCE BOND Contract No. C44620D
Exhibit D
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 612 of 851
ANNUALLY RENEWABLE PERFORMANCE BOND Contract No. C44620D
Exhibit D
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 613 of 851
ANNUALLY RENEWABLE PAYMENT BOND Contract No. C44620D
Exhibit D
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 August 24, 2023, has awarded to R&R B Inc DBA Servpro of Chino/Chino
Hills hereinafter designated as the “Principal,” a contract for the work described as follows:
Facilities Repairs and Improvements 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 August 24, 2023, (“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 THREE MILLION DOLLARS
($3,000,000.00) 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 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
Page 614 of 851
ANNUALLY RENEWABLE PAYMENT BOND Contract No. C44620D
Exhibit D
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 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 615 of 851
ANNUALLY RENEWABLE PAYMENT BOND Contract No. C44620D
Exhibit D
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 616 of 851
ANNUALLY RENEWABLE PAYMENT BOND Contract No. C44620D
Exhibit D
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 617 of 851
ANNUALLY RENEWABLE PAYMENT BOND Contract No. C44620D
Exhibit D
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 618 of 851
City of Palm Desert
PW - Operations & Maintenance
Randy Chavez, Deputy Director
73-510 Fred Waring Drive, Palm Desert, CA 92260
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
RESPONSE DEADLINE: July 19, 2023 at 2:00 pm
Report Generated: Saturday, July 29, 2023
DOUG WALL CONSTRUCTION Proposal
CONTACT INFORMATION
Company:
DOUG WALL CONSTRUCTION
Email:
tim@dwallconst.com
Contact:
TIM MCBRIDE
Address:
78450 AVE 41
BERMUDA DUNES, CA 92203
Phone:
N/A
Website:
www.dwallconst.com
Page 619 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 2
Submission Date:
Jun 26, 2023 10:21 AM
ADDENDA CONFIRMATION
Addendum #1
Confirmed Jul 5, 2023 7:59 AM by TIM MCBRIDE
QUESTIONNAIRE
1. Proposal (WITHOUT COST)*
Pass
Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organ ized and
include page numbers for all pages in the proposal. The proposal shall be uploaded here, in the following order and shall include:
A. Cover Letter
1. This letter should briefly introduce the firm, summarize the firm’s general qualifications, include an executive summary of
the specific approach which will be used to deliver the work scope; and identify the individual(s) name, address and phone
number authorized to negotiate Agreement terms and compensation.
B. Experience and Technical Competence
1. Background: Provide history of the firm’s consulting experience which specifically addresses the individual or firm’s
experience with similar Service as described in this RFP.
Page 620 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 3
2. References: The proposal shall include a list of recently completed projects that are similar in scope and function to this
RFP. Provide a description of the project, client name, and the name, title, and telephone number of the primary contact
person.
C. Firm Staffing and Key Personnel
1. Staffing: Provide the number of staff to be assigned to perform the Services and the names/discipline/job title of each as
well as your firm’s capacity to provide additional personnel as needed.
2. Key Personnel: Identify key persons that will be principally responsible for working with the City. Indicate the role and
responsibility of each individual.
3. Team Organization: Describe proposed team organization, including identification and responsibilities of key personnel.
4. Subcontractors: The Proposer shall identify functions that are likely to be subcontracted and identify the subcontractor
that is anticipated to perform each function.
D. Proposed Method to Accomplish the Work
1. Describe the technical and management approach to providing the Services to the City. Proposer should take into account
the scope of the Services, and general functions required. Include a draft first year schedule of tasks, milestones, and
deliverables that will provide for timely provision of the Services. In reviewing the scope of Services and goals described
herein, the Proposer may identify additional necessary tasks and is invited to bring these to the City’s attention within the
discussion of its proposed method to accomplish the work.
DW_QUALIFICATIONS.pdfDW_REFERENCES.pdfDW_INFO_SHEET.pdf
2. Non-Collusion Declaration*
Pass
The undersigned declares:
I am an authorized representative of my company, the party making the foregoing Bid, to certify the following.
The Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organizat ion, or
corporation. The Bid is genuine and not collusive or sham. The Bidder has not directly or indirectly induced or solicited a ny other Bidder
Page 621 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 4
to put in a false or sham bid. The Bidder has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone
else to put in a sham bid, or to refrain from bidding. The Bidder has not in any manner, directly or indirectly, sought by agreement,
communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, prof it, or cost
element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, directly or
indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative
thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent thereof to
effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose.
Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liability company,
limited liability partnership, or any other entity, hereby represents that he or she has full power to execute, and does exec ute, this
declaration on behalf of the Bidder.
I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct.
Confirmed
3. Enter your valid CA Contractors State License Board (CSLB) number*
Pass
Please enter your License Number here. This will be verified against the state database
743112
Click to Verify Value will be copied to clipboard
4. Type of Business*
Pass
C Corporation (if corporation, two signatures are required)
5. Litigation*
Pass
Page 622 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 5
Provide litigation history for any claims filed by your firm or against your firm related to the provision of Services in the last five (5) years
(or type "N/A").
None At This Time
6. Changes to Agreement*
Pass
The City standard professional services agreement contract is included as an attachment herein. The Proposer shall identify any
objections to and/or request changes to the standard contract language in this section of the proposal (or type "N/A"). If you are
identifying changes here ALSO upload a copy of the redlined Language/Agreement with your Proposal. Changes requested may effect
theCity's decision to enter into an Agreement.
N/A
7. No Deviations from the RFP*
Pass
In submitting a proposal in response to this RFP, Proposer is certifying that it takes no exceptions to this RFP including, but not limited
to, the Agreement. If any exceptions are taken, such exceptions must be clearly noted here, and may be reason for rejection of the
proposal. As such, Proposer is directed to carefully review the proposed Agreement and, in particular, the insurance and
indemnification provisions therein (or type "N/A").
N/A
8. Project Team Resumes*
Pass
Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualifications,
education, and professional licensing.
DW_QUALIFICATIONS.pdfDW_INFO_SHEET.pdf
Page 623 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 6
9. List the Signatory(s) Authorized to Sign and Bind an Agreement.*
Fail
(If two (2) signatures are required, include the following information for both signatories)
A. Full Name
B. Title
C. Physical Business Address
D. Email Address
E. Phone Number
Doug Wall
Owner
78450 Ave 41, Bermuda Dunes CA 92203
7607728446
doug@dwallconst.com
10. Certification of Proposal: The undersigned hereby submits its proposal and, by doing so, agrees to furnish services in accordance
with the Request for Proposal (RFP), and to be bound by the terms and conditions of the RFP.*
Pass
Confirmed
PRICE TABLES
Page 624 of 851
PROPOSAL DOCUMENT REPORT
RFP No. 2023-RFP-201
Facilities Repairs and Improvements Project 2
PROPOSAL DOCUMENT REPORT
Request For Proposal - Facilities Repairs and Improvements Project 2
Page 7
Line Item Description Quantity Unit of Measure Unit Cost Total
1 Construction Foreman 1 Hourly Rate $0.00 $0.00
2 Construction Supervisor 1 Hourly Rate $0.00 $0.00
3 Framer 1 Hourly Rate $0.00 $0.00
4 Drywall Installer 1 Hourly Rate $0.00 $0.00
5 Plumber 1 Hourly Rate $0.00 $0.00
6 Concrete Worker 1 Hourly Rate $0.00 $0.00
7 Carpenter 1 Hourly Rate $0.00 $0.00
8 Painter 1 Hourly Rate $0.00 $0.00
9 Welder 1 Hourly Rate $0.00 $0.00
10 Flooring Installer 1 Hourly Rate $0.00 $0.00
11 Laborer 1 Hourly Rate $0.00 $0.00
TOTAL $0.00
Page 625 of 851
78450 AVENUE 41 . BERMUDA DUNES, CA 92203 . OFFICE (760) 772-8446 . FAX (760) 772-9407
TECHNICAL PROPOSAL
QUALIFICATIONS:
Doug Wall Construction is a full service, end to end general contractor.
DWC is a midsize firm with 55 highly diversified employees, was incorporated in
1993 and is headquartered in Bermuda Dunes, CA.
DWC is consistently a first choice by Coachella Valley’s top developers and has
completed over 350 million dollars’ worth of projects since 2010.
DWC works and specializes in public works projects, commercial building
renovation, education centers and school campuses as well as private sector health
care facilities, having recently completed the 40-million-dollar Rinker Orthopedic
Building for Eisenhower Medical Center in 2021.
Doug Wall, President and CEO of DWC will be involved in every aspect of project
oversight, with primary focuses on contract structure, initial budget approval and
interface between architect and various city agencies.
Tim McBride, Project Superintendent will facilitate the mobilization on sight,
collaborate with city agencies as needed, maintain adherence to the baseline
construction schedule and budget. Additionally, direct and supervise all onsite
subcontractor activities, and communicate as necessary with onsite property
management.
Page 626 of 851
78450 AVENUE 41 . BERMUDA DUNES, CA 92203 . OFFICE (760) 772-8446 . FAX (760) 772-9407
REFERENCES:
PROJECT EISENHOWER MEDICAL CENTER
SCOPE 50,000 SQ FT RINKER ORTHOPEDIC BLDG.
VALUE $38,000,000
CONTACT LIZ SINO / 760.578.2356
PROJECT SUNLINE TRANSIT AGENCY
SCOPE 37,000 SQ FT ADMINISTRATION BLDG.
VALUE $12,600,000
CONTACT TOMMY EDWARDS / 760.343.3456
PROJECT WESSMAN DEVELOPMENT, BLOCK A
SCOPE THREE STORY EXPOSED STEEL and GLASS
VALUE $8,300,000
CONTACT OCTAVIO FERNANDEZ / 760.408.7036
PROJECT COMMUNITY HEALTH and WELLNESS CENTER
SCOPE COMMUNITY CENTER W / 25 METER POOL
VALUE $13,200,000
CONTACT RUDY ACOSTA / 760.329.6411
Page 627 of 851
78450 AVENUE 41 . BERMUDA DUNES, CA 92203 . OFFICE (760) 772-8446 . FAX (760) 772-9407
PROPOSAL RE:
PROJECT 813-21
TAOS PALMS TRELLIS and ENTRANCE STRUCTURE REHABILITATION
PREPARED BY:
DOUG WALL CONSTRUCTION, INC.
78450 AVE 41
BERMUDA DUNES, CA. 92203
OFFICE 760.772.8446
FAX 760.772.9407
STATE CONTRACTORS LICENSE 743112
CLASS A, B, C9, C10, C27
EXPIRES 30 NOV 2023
GEN. LIABILITY INS. GREAT AMERICAN ASSURANCE
POLICY GLP4051229
EXPIRES 01 JAN 2024
WORKERS COMP. INSURANCE COMPANY of the WEST
POLICY WSD 5035420 05
EXPIRES 01 JAN 2024
AUTO INURANCE CALIFORNIA AUTO INS. CO.
POLICY BA 040000059519
EXPIRES 09 JUNE 2024
FEDERAL ID 33-0777123
EDD ACCT. ID 401-4078-2
DIR REGISTRATION 1000000241
EXPIRES 30 JUNE 2024
Page 628 of 851
78450 AVENUE 41 . BERMUDA DUNES, CA 92203 . OFFICE (760) 772-8446 . FAX (760) 772-9407
TECHNICAL PROPOSAL
QUALIFICATIONS:
Doug Wall Construction is a full service, end to end general contractor.
DWC is a midsize firm with 55 highly diversified employees, was incorporated in
1993 and is headquartered in Bermuda Dunes, CA.
DWC is consistently a first choice by Coachella Valley’s top developers and has
completed over 350 million dollars’ worth of projects since 2010.
DWC works and specializes in public works projects, commercial building
renovation, education centers and school campuses as well as private sector health
care facilities, having recently completed the 40-million-dollar Rinker Orthopedic
Building for Eisenhower Medical Center in 2021.
Doug Wall, President and CEO of DWC will be involved in every aspect of project
oversight, with primary focuses on contract structure, initial budget approval and
interface between architect and various city agencies.
Tim McBride, Project Superintendent will facilitate the mobilization on sight,
collaborate with city agencies as needed, maintain adherence to the baseline
construction schedule and budget. Additionally, direct and supervise all onsite
subcontractor activities, and communicate as necessary with onsite property
management.
Page 629 of 851
78450 AVENUE 41 . BERMUDA DUNES, CA 92203 . OFFICE (760) 772-8446 . FAX (760) 772-9407
PROPOSAL RE:
PROJECT 813-21
TAOS PALMS TRELLIS and ENTRANCE STRUCTURE REHABILITATION
PREPARED BY:
DOUG WALL CONSTRUCTION, INC.
78450 AVE 41
BERMUDA DUNES, CA. 92203
OFFICE 760.772.8446
FAX 760.772.9407
STATE CONTRACTORS LICENSE 743112
CLASS A, B, C9, C10, C27
EXPIRES 30 NOV 2023
GEN. LIABILITY INS. GREAT AMERICAN ASSURANCE
POLICY GLP4051229
EXPIRES 01 JAN 2024
WORKERS COMP. INSURANCE COMPANY of the WEST
POLICY WSD 5035420 05
EXPIRES 01 JAN 2024
AUTO INURANCE CALIFORNIA AUTO INS. CO.
POLICY BA 040000059519
EXPIRES 09 JUNE 2024
FEDERAL ID 33-0777123
EDD ACCT. ID 401-4078-2
DIR REGISTRATION 1000000241
EXPIRES 30 JUNE 2024
Page 630 of 851
Contract No. C44620E
- 1 -
CITY OF PALM DESERT
MAINTENANCE SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this 24th day of August, 2023, 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 Doug Wall Construction, Inc, a
Corporation with its principal place of business at 78450 Avenue 41, Bermuda Dunes, CA
92203 (“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 Facilities Repairs and
Improvements Project 2 (“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 August 24, 2023, 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 2 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
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.
Page 631 of 851
Contract No. C44620E
- 2 -
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 Shawn Muir,
Community Services Manager, 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 Doug Wall,
President 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 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
Page 632 of 851
Contract No. C44620E
- 3 -
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
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.
Page 633 of 851
Contract No. C44620E
- 4 -
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-
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:
Page 634 of 851
Contract No. C44620E
- 5 -
(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) 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 Agreement 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.
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
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
Page 635 of 851
Contract No. C44620E
- 6 -
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
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.
Page 636 of 851
Contract No. C44620E
- 7 -
(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
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.
Page 637 of 851
Contract No. C44620E
- 8 -
3.2.13.1 Performance Bond. If required by law or otherwise
specifically requested by City in Exhibit “D” 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 “D” 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.
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
Page 638 of 851
Contract No. C44620E
- 9 -
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
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
Page 639 of 851
Contract No. C44620E
- 10 -
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 maximum compensation
for Services to be provided pursuant to each Task Order shall be set forth in the relevant Task
Order. The total compensation, in the aggregate, shall not exceed Three Million Dollars
($3,000,000.00) annually 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.
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
Page 640 of 851
Contract No. C44620E
- 11 -
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.
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.
Page 641 of 851
Contract No. C44620E
- 12 -
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:
Doug Wall Construction, Inc
78450 Avenue 42
Bermuda Dunes, CA 92203
Attn: Doug Wall, President
City:
City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260-2578
Attn: Shawn Muir, Community Services Manager
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,
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
Page 642 of 851
Contract No. C44620E
- 13 -
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
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,
Page 643 of 851
Contract No. C44620E
- 14 -
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.
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.
3.5.18 Reserved.
[SIGNATURES ON NEXT PAGE]
Page 644 of 851
Contract No. __________________
SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND DOUG WALL CONSTRUCTION, INC
IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed
on the day and year first above written.
CITY OF PALM DESERT
By:
L. Todd Hileman
City Manager
ATTEST:
By:
Anthony J. Mejia
City Clerk
APPROVED AS TO FORM:
By:
Best Best & Krieger LLP
City Attorney
DOUG WALL CONSTRUCTION, INC
By:
Its:
Printed Name:
By:
Its:
Printed Name:
____________________________________
Contractor’s License Number and
Classification
____________________________________
DIR Registration Number (if applicable)
QC
Insurance:
__________ __________
Initial Review Final Approval
Page 645 of 851
Contract No. C44620E
Exhibit A
EXHIBIT “A”
PALM DESERT FACILITIES IMPROVEMENT PROJECT
SCOPE OF SERVICES
1. SCOPE OF WORK
The work to be done consists of furnishing all labor, incidental materials, equipment,
necessary tools and machinery, supervision, all utility and transportation services, and
incidentals required for the Facilities Improvement project in accordance with the
Specifications.
This contract provides for the regular evaluation and maintenance project services for
the City owned or operated facilities listed below.
2. LOCATION OF WORK
• City Hall Building, 73-510 Fred Waring Drive
• Community Center (Henderson), 72559 Highway 111
• Corporation Yard, 74705 42nd Avenue
• Portola Community Center, 45480 Portola Avenue
• Palm Desert Sheriff Substation, 73520 Fred Waring Drive
• Parkview Office Complex, 73710 Fred Waring Drive
• State Building, 73-720 Fred Waring Drive
• iHUB, 37023 Cook Street, Suite 102
• Fire stations
o Fire Station No. 33, 44400 Towne Center Way
o Fire Station No. 67, 73200 Mesa View Drive
o Fire Station No. 71, 73995 Country Club Drive
• Aquatic Center, 73751 Magnesia Falls Drive
• Parks buildings
o Cahuilla Hills Park, 45825 Edgehill Drive
o Cap Homme / Ralph Adams Park, 72-500 Thrush Rd
o Civic Center Park, 43900 San Pablo Ave
o Freedom Park, 77400 Country Club Dr
o Hovley Soccer Park, 74735 Hovley Lane
o Ironwood Park, 47800 Chia Drive
o Joe Mann Park, 77810 California Drive
o Magnesia Falls City Park, 74200 Rutledge Way
o Palma Village Park, 44550 San Carlos Ave
o University Park East, 74902 University Park Drive
o University Dog Park, 74802 University Park Drive
o Washington Charter School Park, 45768 Portola Avenue
The Contractor will furnish all labor, materials, renderings, equipment, tools, removal,
installation, coordination, permits, supervision, utility and transportation services, and
incidentals (including tax) as necessary. Each of these facilities has unique
maintenance needs that will be met through this contract. All facility maintenance and
improvement projects will be conducted in a manner that provides for the adequate and
Page 646 of 851
Contract No. C44620E
Exhibit A
safe use of the facility and continues the City’s prominence as a world-class municipality
for the enjoyment of the community.
3. GENERAL SERVICES TO BE PERFORMED
Contractor shall provide the necessary equipment and labor to perform maintenance
projects on an as-requested basis for the City. Facilities maintenance requests will be
based on contractor assessments in coordination with City staff.
3.1 Contractor will visit the above listed Palm Desert facilities a minimum of once per
quarter on a rotating basis or based on priority designated by City staff. The purpose
of the site visits is to perform inspections and assessments, provide recommendations,
and develop long-term plans for facility upkeep. A written report will be developed by
the Contractor after each site visit and submitted to City staff within two weeks of the
site visit. Minimum requirements for the report include:
• Site locations visited and address
• Contractor representative and contact information
• Date and time of visit
• Prioritized list of areas recommended for maintenance projects
• Descriptions of maintenance projects
• Estimated cost to complete each maintenance project
• Photos
3.2 The contractor will provide technicians capable of working on a variety of facility
elements, including but not limited to:
• Framing
• Drywall
• Painting
• Concrete
• Carpentry
• Audio/Visual & Security
• Welding
• Flooring
• Fixtures
• Plumbing
3.3 In addition to scheduled quarterly site visits, Contractor will participate in one (1)
meeting annually for the duration of the contract with City staff to review short-term
and long-term maintenance need projections and life expectancies of facility
furnishings. This will allow the City to accurately budget and plan for anticipated
maintenance needs, facility repairs and upgrades.
3.4 Contractor shall provide appropriate equipment and labor for the execution of all
maintenance and repair activities. City of Palm Desert reserves the right to inspect
and/or approve any equipment used in this contract. If City of Palm Desert deems the
equipment to be in disrepair or inappropriate to the task at hand, City of Palm Desert
may require that the equipment be removed from the job site and replaced with a
different piece of equipment.
Page 647 of 851
Contract No. C44620E
Exhibit A
3.5 Contractor shall provide personnel fully trained in all phases of facility maintenance.
Contractor shall provide personnel capable of effective verbal and written
communication with City of Palm Desert representatives. If City of Palm Desert deems
personnel to be inadequate to accomplish the task at hand, City of Palm Desert may
require that the personnel be removed from the job site and replaced with personnel
demonstrating the appropriate level of job knowledge, skills, and verbal
communication to effectively accomplish the work.
3.6 Prior to commencement of the contract, designated City of Palm Desert
representative(s) and the Contractor will perform a mandatory acceptance walk-
through inspection of the contract area.
3.7 All new equipment installations provided by the Contractor will include a one-year
warranty or better.
3.8 Contractor shall remove debris caused by all maintenance activities on the same
working day that such debris is accumulated, unless otherwise agreed upon by the
Contractor and City staff in advance.
3.9 Contractor is required to protect from damage as necessary, existing equipment that
is not part of the maintenance services. Contractor will be responsible to replace or
repair any equipment damaged by contractor, not related to the service, at Contractor’s
expense and include a one-year warranty or better.
3.10 Contractor is responsible for cordoning off public areas during their course of work as
to protect the public from harm. Contractor is to supply all safety equipment as needed
to perform the scope of work, including but not limited to: signage, cones, partitions,
plywood covers, etc.
3.11 Pursuant to Section 7028.15 of the Business and Professions Code and Section 3300
of the Public Contract Code, all proposers must possess proper licenses for
performance of the Contract. Subcontractors must possess the appropriate licenses
for each specialty subcontracted. Pursuant to Section 7028.5 of the Business and
Professions Code, the City shall consider any proposal submitted by a contractor not
currently licensed in accordance with state law and pursuant to the requirements found
in the Contract Documents to be nonresponsive, and the City shall reject the proposal.
The City shall have the right to request, and the proposers shall provide within five (5)
calendar days, evidence satisfactory to the City of all valid license(s) currently held by
that proposer and each of the proposer’s subcontractors before awarding the Contract.
4. MAINTENANCE PROJECTS
Maintenance projects will be determined based on the prioritized lists developed
through the quarterly facility inspections. City of Palm Desert staff will inform the
contractor when a maintenance project may be initiated.
4.1 No work will be initiated without an approved City of Palm Desert Work Order.
4.2 City of Palm Desert staff will hold a meeting with the Contractor to finalize the scope
Page 648 of 851
Contract No. C44620E
Exhibit A
and cost of the project.
4.3 The Contractor will provide an estimated timeline for project milestones and
completion.
5. PAYMENT
Maintenance service and materials not described in this scope of work will be needed
periodically to satisfactorily maintain the City facilities. On such occasions, the following
criteria will be followed:
5.1 All work shall be approved in writing on a City-issued extra work form by the Director
of Public Works, or his designee, prior to ordering or commencing activities.
5.2 Contractor’s failure to obtain prior written authorization to order parts or to perform
work shall constitute the City’s denial of payment for said work and parts. Upon
Contractor’s submission of requests for work and/or parts the City reserves the right
to reject quotations on each item, separately or as a whole.
5.3 State and local taxes as applicable, shipping/handling/freight on board charges,
applied discounts, and labor estimates shall be shown separately. All materials will
be paid at cost plus an allowable 15% markup. Labor will be paid based on the
approved Price Sheet. Receipts are required to be submitted with approved
invoice(s). Estimated dates for delivery and installation shall be noted.
5.4 In addition to the rates listed on the Price Sheet, Contractor shall submit a list
of services provided and costs not listed in the Scope of Services or Price
Sheets. The City may negotiate costs, if needed, prior to approval of the
Agreement.
Page 649 of 851
Contract No. C44620E
Exhibit B
EXHIBIT “B”
SCHEDULE OF SERVICES
The term of this Agreement shall be from August 24, 2023, 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 2 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 650 of 851
Contract No. C44620E
Exhibit B-1
EXHIBIT “C”
COMPENSATION
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. The
City and Contractor may review the CPI on an annual basis and recommend adjustments to the
City Manager or City Council for approval. Any increase shall not exceed the Consumer Price
Index.
The total compensation shall not exceed Three Million Dollars ($3,000,000.00) annually without
written approval of the City Council or City Manager, as applicable.
Pricing schedule is as follows:
Line Item Description Quantity Unit of
Measure
Amount
1 Construction Foreman 1 Hourly Rate $155.00
2 Construction Supervisor 1 Hourly Rate $130.00
3 Framer-Wood 1 Hourly Rate $94.57
4 Drywall Installer 1 Hourly Rate $94.90
5 Plumber 1 Hourly Rate $102.84
6 Concrete Worker 1 Hourly Rate $91.35
7 Carpenter 1 Hourly Rate $94.57
8 Painter 1 Hourly Rate $78.72
9 Welder 1 Hourly Rate $102.86
10 Flooring Installer 1 Hourly Rate $78.26
11 Laborer 1 Hourly Rate $88.39
Total $1,111.46
Page 651 of 851
Contract No. C44620E
Exhibit B-2
EXHIBIT “D” BONDS
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS:
THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded
to Doug Wall Construction, Inc, (hereinafter referred to as the “Contractor”) an agreement for
Facilities Repairs and Improvements 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 August 24, 2023, (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, Doug Wall Construction, 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 annual sum of THREE MILLION DOLLARS, ($3,000,000.00), 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-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:
Page 652 of 851
Contract No. C44620E
Exhibit B-3
(1) Take over and complete the Project in accordance with all terms and conditions in
the Contract Documents; or
(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 653 of 851
Contract No. C44620E
Exhibit B-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 654 of 851
Contract No. C44620E
Exhibit B-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 655 of 851
Contract No. C44620E
Exhibit B-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 656 of 851
Contract No. C44620E
Exhibit B-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 August 24, 2023 has awarded to Doug Wall Construction, Inc hereinafter
designated as the “Principal,” a contract for the work described as follows:
Facilities Repairs and Improvements 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 August 24, 2023, (“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 THREE MILLION DOLLARS
($3,000,000.00) 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 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 657 of 851
Contract No. C44620E
Exhibit B-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 658 of 851
Contract No. C44620E
Exhibit B-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 659 of 851
Contract No. C44620E
Exhibit B-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 660 of 851
Contract No. C44620E
Exhibit B-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 661 of 851
Page 662 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 663 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 664 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 665 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 666 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 667 of 851
Page 668 of 851
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Mindy Esqueda, Emergency Services Coordinator
REQUEST: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT
SERVICES BETWEEN THE CITY OF PALM DESERT AND THE COUNTY
OF RIVERSIDE FOR A THREE-YEAR TERM FROM FY2024/2025 TO
FY2026/2027
RECOMMENDATION:
1. Approve Agreement for Law Enforcement Services with the County of Riverside for a three -
year term effective from July 1, 2024, through June 30, 2027.
2. Authorize the City Attorney to make any necessary, non-monetary changes to the
Agreement.
3. Authorize the Mayor to execute the Agreement and any documents necessary to effectuate
and implement the actions taken herewith.
BACKGROUND/ANALYSIS:
The current Agreement for Law Enforcement Services between the City of Palm Desert and the
County of Riverside will expire on June 30, 2024. Staff reviewed this new agreement and found
it to be identical to the current document, with minor non-substantial changes. Either party may
still terminate the agreement upon providing not less than twelve (12) months written notice,
prior to the effective termination date.
Strategic Plan:
This matter is related to the Public Safety and Emerge ncy Services section of the Palm Desert
Strategic Plan, specifically under Priority 1: Enhance the Delivery of Public Safety Services. The
priority’s strategy is to expand the existing superlative services provided by the fire and police
departments to address future growth and safety concerns.
Project Description:
The Level of Service in the Agreement is as follows:
Average Patrol Services
144 supported hours per day (equivalent of 28 Deputy Sheriff positions at 1,884
annual productive hours per position
Non-Dedicated Positions
One (1) Deputy Sheriff position (Commercial Enforcement)- Supported
(Cove Communities Shared Positions)
Two (2) Deputy Sheriff positions (Burglary Suppression)- Supported
Page 669 of 851
City of Palm Desert
Approval of Law Enforcement Services Agreement
Page 2 of 2
Dedicated Positions
One (1) Sheriff Lieutenant position
Two (2) Sheriff’s Sergeant positions (Business District Team and Traffic)
Four (4) Deputy Sheriff positions (Motor Officers)- Supported
Three (3) Deputy Sheriff positions (SET)- Supported
Four (4) Deputy Sheriff positions (Business District)- Supported
Two (2) Deputy Sheriff positions (School Resource)- Unsupported
One (1) Deputy Sheriff position (Violent Grime Gang Task Force)- Unsupported
One (1) Deputy Sheriff position (Coachella Valley Narcotics Task Force)-
Unsupported
Eleven (11) Community Officer II positions
Over the last year, City staff has worked closely with Palm Desert Sheriff Station staff on
developing service level metrics, reallocating positions to respond to community concerns, and
putting the automated license plate reader (ALPR) system into operation to keep staffing levels
flat. Going forward, the City will work with the Sheriff’s department on evaluating cost recovery
charges, reporting out ALPR data, and continue to monitor response times. Maintaining this
partnership with the Sheriff will continue to allow the City to refine law enforcement services in
Palm Desert and preserve the community’s safety.
FINANCIAL IMPACT:
The approved Fiscal Year (FY) 2023/24 budget for police services in the City of Palm Desert is
approximately $21.5 million. This amount was based on the Riverside County Sheriff’s
Department projected FY2023/24 contract rate increase of 2-2.5%. Staff estimates the FY
2024/25 budget request for police services will be approximately $21.9 million based on recent
contract rate increases reflected below:
FISCAL YEAR CONTRACT RATE INCREASE BUDGET TOTAL
22/23 1.89% $20.9 million
23/24 2-2.5%*projected $21.5 million
The Riverside County Sheriff’s Department will provide the exact contract rate increase for
FY2023/24 once approved by the Board of Supervisors in the Spring of 2024. Cities are charged
prior year rates until that time and receive a rate adjustment invoice for the difference.
ATTACHMENTS:
1. Agreement for Law Enforcement Services
Page 670 of 851
Page 671 of 851
Page 672 of 851
Page 673 of 851
Page 674 of 851
Page 675 of 851
Page 676 of 851
Page 677 of 851
Page 678 of 851
Page 679 of 851
Page 680 of 851
Page 681 of 851
Page 682 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 683 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 684 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 685 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 686 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 687 of 851
Page 688 of 851
LAW
ENFORCEMENT
AGREEMENT
Page 689 of 851
AVERAGE
PATROL
SERVICES
Page 690 of 851
NON-
DEDICATED
POSITIONS
Page 691 of 851
DEDICATED
POSITIONS
Page 692 of 851
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE
OF PUBLIC HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND
OUTREACH PLAN – OPTIONAL PROCESSES FOR ESTABLISHING
DISTRICT BOUNDARIES
RECOMMENDATION:
1. Approve the Public Education and Outreach Plan & Schedule of Public Hearings/Workshops.
2. Provide direction relative to optional processes for establishing district boundaries.
BACKGROUND/ANALYSIS:
On June 22, 2023, the City Council voted 5-0 to direct staff to take the necessary steps to
transition to five (5) single-member districts prior to the November 2024 Election and to eliminate
use of Ranked Choice Voting (RCV) in future elections.
Since that time, the City Attorney and Attorney Kevin Shenkman have reached a mutual
understanding that the existing settlement agreement/stipulated judgement allows the City to
adopt a five-district system as an alternative to RCV, without further action by the Court. As such,
once the City Council concludes the redistricting process and adopts a final map it is anticipated
that an ordinance rescinding use of RCV will be presented for City Council consideration.
Furthermore, to ensure staff is ready to proceed with the redistricting process upon City Council’s
adoption of the Public Education and Outreach Plan, the City Manager, under his authority,
executed agreements with National Demographic Corporation (NDC) for demographer services
and Tripepi Smith for outreach and engagement services (currently being routed for signatures).
The City Council previously expressed support for the selection of NDC to serve as the City’s
demographer. Tripepi Smith has extensive experience working with local governments related
to election matters and districting/redistricting. Tripepi Smith assisted the City in the 2018 district
formation process and the 2022 RCV public education effort with positive feedback from staff.
Assembly Bill 764 is circulating through the legislature and appears to have broad support and
likely to pass into law. AB 764 expands the FAIR Maps Act by increasing the public hearing and
public outreach requirements. If adopted, AB 764 would take effect January 2024 and any
districting/redistricting processes in progress would need to comply with its requirements. As
such, staff and legal counsel have studied AB 764 and tailored the schedule of public hearings
and Public Education and Outreach Plan to comply with the provisions of AB 764, as it stands
today. See Attachment 1 for the schedule of public hearings/workshops and Public Education
and Outreach Plan.
Page 693 of 851
City of Palm Desert
Redistricting Public Education and Outreach Plan
Page 2 of 2
Optional Processes for Establishing District Boundaries (E.C. §23000 et seq.)
There are several optional methods available for updating district boundaries, including
establishing a Council-Driven Process, Advisory Redistricting Commission, Independent
Redistricting Commission, or Hybrid Redistricting Commission. Additional details are provided
in Attachment 2.
FINANCIAL IMPACT:
Below is a summary of the contracts associated with redistricting. There is sufficient funding in
the Elections Budget for these costs.
Provider SERVICE Amount
National Demographics Corp. Demographer Services $60,000
Tripepi Smith Outreach & Engagement Services
$60,000
($40,000 for direct services &
$20,000 advertising)
Professional Interpreting On-Call Spanish Translation and
Interpreter Services $5,000
CASL Interpreting On-Call American Sign Language
Interpreter Services $5,000
Printing & Mailing Company Citywide Mailer $25,000 (estimate)
TOTAL $155,000
ATTACHMENTS:
1. Draft Public Education and Outreach Plan & Schedule of Public Hearings/Workshops
2. Optional Processes for Establishing District Boundaries
3. Contract – National Demographics Corporation
4. Contract – Tripepi Smith (draft)
Page 694 of 851
P u b l i c E d u c a t i o n & O u t r e a c h P l a n
P A L M D E S E R T
R E D I S T R I C T I N G 2 0 2 3
D R A F T
Page 695 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 1
PUBLIC EDUCATION AND OUTREACH PLAN
In accordance with Assembly Bill 764, this Public Education and Outreach Plan is organized to address the provisions
of Election Code 21160:
Financial Resources
The City has executed agreements with: 1) National Demographic Corporation to serve as the City’s demographer in
an amount not to exceed $60,000, 2) Tripepi Smith to provide outreach and engagement services in an amount not
to exceed $60,000, of which $40,000 is budgeted for direct services and $2 0,000 for advertising, 3) Professional
Interpreting to provide on-call Spanish-language document translation and interpreter services in an amount not to
exceed $5,000; and 4) CASL Interpreting for on -call American Sign Language interpreter services in an amount not
to exceed $5,000. In addition, the City has allocated $25,000 (estimate) for a Citywide English/Spanish mailer to
inform residents about the redistricting process. Total financial resources allocated: $155,000.
Key Personnel
The City Clerk has been designated to serve as the primary staff resource and key contact for resident inquires related
to redistricting. Other key personnel include William Priest, of Best , Best & Krieger, serving as legal counsel for
redistricting/election-related matters; Doug Johnson and Shalice Tilton, of National Demographic Corporation,
serving as the City’s demographer; and Jennifer Nentwig and Melanie Moore, of Tripepi Smith, serving as consultants
for public education and engagement efforts.
Local Media
The City will issue at least two (2) press releases to each of the identified media organizations below to ensure local
media aids our efforts to reach residents. The City will identify media, including those that serve language minority
communities, to ensure that we reach diverse media. It is anticipated the first press release will announce the
redistricting kickoff and schedule and the second press release will announce the adoption of final map.
• Known Local Media:
o English: The Desert Sun, KESQ, NBC Palm Springs, K-NEWS/Alpha Media, iHub Radio, Desert
Entertainer, Palm Springs Life, CV News Desk, and Coachella Valley Independent
o Spanish: La Prensa Hispana, El Informador del Valle, Televisa Univision, and Telemundo Palm Springs
• Good faith efforts will be made to identify additional local media organizations, including those that serve
language minority communities.
Social Media
The City will utilize both social media and paid boosted advertising on social media platforms on a regular basis to
reach residents including Facebook, Twitter, Instagram, Google Display Ads, and YouTube Ads.
Legal Notices
The City will post or publish public hearing notices on the project website, at locations where the City Council agenda
is posted, and in the Desert Sun and La Prensa Hispana.
Radio Advertising
The City will utilize paid radio advertising on top-performing English and Spanish radio stations which serve the
greater Palm Desert area:
• English – Alpha Media (Mix 100.5, K-NEWS 104.7)
• Spanish – La Ponderosa 96.7, La Suavecita 94.7
• Bilingual – Spotify & Pandora (geo-targeted placements)
Page 696 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 2
Citywide Mailer
The City will issue a standalone, bilingual (English/Spanish) Citywide mailer informing residents that the City is
redistricting to establish five (5) single-member districts, including hearing dates, information on how to participate,
and to learn more by accessing the redistricting website. In addition, the City will feature articles in its digital and
hardcopy newsletter, the Brightside.
Good Government, Civil Rights, Civic Engagement, and Community Groups
On August 8, 2023, the City shared this draft Public Education and Engagement Plan with the American Civil Liberties
Union (ACLU) of Southern California for their consideration and feedback. On August 9, 2023, the City posted this
draft plan on its website for a 14-day public review and comment period.
In the coming weeks, the City, utilizing the services of Tripepi Smith, will make a diligent effort to identify any
additional Good Government, Civil Rights, and other such groups active in Palm Desert. Once known, the City will
conduct stakeholder emails/calls – announcing the launch of the process and the schedule of meetings, and another
round promoting public feedback prior to the selection of a final map.
In addition, the City will reach out to known civic/community groups such as Palm Desert Rotary, Soroptimist Palm
Desert, Palm Desert Chamber of Commerce, and Neighbors Together, to offer presentations to their members
regarding the redistricting process and how to participate.
Dedicated Standalone Website
The City will establish a dedicated, bilingual (English/Spanish) standalone website for this redistricting effort and
shall maintain the website for a period of 10 years. The City’s main website homepage shall include a prominent link
to the redistricting website.
The website will include the following:
• A general explanation of the redistricting process.
• An explanation of the procedures for a member of the public to provide in -person or remote public
comment during a public hearing or to submit written public comment or a draft map to the City, either in
a paper or electronic format, for consideration at a future public hearing.
• A schedule of all workshop and public hearing dates.
• A notice of the applicable languages in which the local jurisdiction will provide live translation of a workshop
or public hearing upon request and instructions for making such a request.
• Instructions and a method for a person to sign up to receive regular notices regarding redistricting, including
notices of upcoming workshops or public hearings.
• The notice and agenda for each workshop and public hearing.
• The recording or written summary of each workshop and public hearing.
• Each draft map considered by the City Council at a public hearing.
• Each written public comment submitted to the local jurisdiction.
• The existing map of election district boundaries prior to redistricting.
• The adopted final map of election district boundaries after redistricting.
Interested Parties List
The City will maintain a list of residents and organizations who request to receive notification regarding notices of
all future project hearings or meetings and other project-related messaging that is sent by the City.
Coordination With Other Jurisdictions
The City is not aware of any overlapping or nearby jurisdictions currently redistricting.
Page 697 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 3
SCHEDULE OF PUBLIC HEARINGS, COMMUNITY WORKSHOPS, AND MAP-DRAWING WORKSHOPS
Wed., Sept. 6, 2023, at 6:00 pm Community Workshop #1 Civic Center/Zoom Hybrid
Pre-Map Workshop to share information on the redistricting process, how to provide public comment, and how
to submit a proposed map for consideration.
Spanish & ASL interpreters will be on-site. Spanish interpreter & captioning will be available via Zoom
Thurs., Sept. 14, 2023, at 4:30 pm Public Hearing #1 Council Chamber/Zoom Hybrid
Public Hearing to inform the City Council and public about the redistricting process, how to provide public
comment; how to submit a map for consideration; solicit public comment.
Spanish and ASL Interpreters available upon request. Captioning provided with online live str eam.
Thurs., Sept. 28, 2023, at 4:30 pm Public Hearing #2 Council Chamber/Zoom Hybrid
Presentation of demographer’s and early public submitted maps; how to provide public comment; how to
submit a map for consideration; solicit public comment.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Friday, September 29, 2023 Community Map Drawing Opens
The demographer’s online and paper map drawing tools will be available for the public to draft and submit their
own maps for consideration
Wed., Oct. 4, 2023, at 5:00 pm Map Drawing Workshop #1 Zoom
The demographer will demonstrate how to use the online mapping tool and submit a map for consideration.
This session will be recorded and posted to the redistricting website.
Spanish interpreter & captioning will be available via Zoom
Mon., Oct. 16, 2023, at 5:00 pm Map Drawing Workshop #2 Zoom
The demographer will demonstrate how to use the online mapping tool and submit a map for consideration.
This session will be recorded and posted to the redistricting website.
Spanish interpreter & captioning will be available via Zoom
Wednesday, November 1, 2023 Community Map Drawing Closes
Deadline for the submission of community drawn maps for consideration.
Thurs., Nov. 16, 2023, at 4:30 pm Public Hearing #3 Council Chamber/Zoom Hybrid
All demographer and community-drawn maps will be presented for City Council consideration; solicit public
comment; City Council will be requested to narrow maps to three (3) to five (5) “focus maps.”
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Wed., Nov. 29, 2023, at 6:00 pm Community Workshop #2 Palm Desert iHub (in-person)
Presentation of focus maps; solicit public comment/feedback.
Spanish & ASL interpreters will be on-site.
Wed., Dec. 6, 2023, at 6:00 pm Community Workshop #3 Civic Center/Zoom Hybrid
Presentation of focus maps; solicit public comment/feedback.
Spanish & ASL interpreters will be on-site. Spanish interpreter & captioning will be available via Zoom
Thurs., Dec. 14, 2023, at 4:30 pm Public Hearing #4 Council Chamber/Zoom Hybrid
Provide City Council with community feedback gathered at workshops; solicit additional public comment;
request that the City Council further narrow down the number of maps.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Page 698 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 4
Thurs., Jan. 11, 2024, at 4:30 pm Public Hearing #5 Council Chamber/Zoom Hybrid
Solicit public comment; select a final map and provide direction on any final adjustments.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Thurs., Jan. 25, 2024, at 4:30 pm Public Hearing #6 Council Chamber/Zoom Hybrid
Solicit public comment; adoption of a final map and introduction of an ordinance enacting five (5) single-
member districts.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Thurs., Feb. 15, 2024, at 4:00 pm City Council Meeting Council Chamber/Zoom Hybrid
Solicit public comment; adoption of an ordinance enacting five (5) single-member districts; introduction of an
ordinance eliminating use of Ranked Choice Voting in future elections.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
LOCATIONS ADDRESS CONTACT INFORMATION
Civic Center
Administrative Services Building
73-510 Fred Waring Drive, Palm
Desert, CA 92260
Main: (760) 346-0611
Email: cityclerk@palmdesert.gov
Council Chamber 73-510 Fred Waring Drive,
Palm Desert, CA 92260
Main: (760) 346-0611
Email: cityclerk@palmdesert.gov
Palm Desert iHub 37023 Cook Street, Suite 102
Palm Desert, CA 92211
Main: (760) 346-0611
Email: cityclerk@palmdesert.gov
Page 699 of 851
Page 700 of 851
ATTACHMENT 2
Optional Processes for Establishing District Boundaries (E.C. §23000 et seq.)
For the redistricting process, there are several optional methods available for updating
district boundaries, including:
1. Council-Driven Process: The City Council can perform all public outreach with City
staff and consultants, draw alternative maps, and select the final map, following
state law.
2. Advisory Redistricting Commission: The City Council appoints an Advisory
Redistricting Commission to perform some community outreach and provide
recommendations to the City Council.
A person who is an elected official of the local jurisdiction, or a family member,
staff member, or paid campaign staff of an elected official shall not be appointed
to the commission (E.C. §23002).
If the City Council pursues the creation of an Advisory Redistricting Commission,
staff would be required to return to City Council with a resolution to establish the
Advisory Redistricting Commission, which defines membership requirements, the
scope and responsibilities of the Commission, and the commissioner selection
process.
3. Independent Redistricting Commission: The City Council may establish an
Independent Redistricting Committee that has the full and final authority to draw
and adopt the new district boundaries. The Independent Redistricting Commission
performs all public outreach, with staff and consultant support. The City Council’s
role is to fund the process and decided how the Independent Redistricting
Committee members are selected; the City Council may not appoint the
Independent Redistricting Committee members.
If an Independent Redistricting Commission is established, the City Council has
no authority to review, modify, or approve any maps. The Independent
Redistricting Commission approves the final district boundary map.
4. Hybrid Redistricting Commission: The City Council may establish a Hybrid
Redistricting Commission that provides the City Council with two or more plans
from which the City Council selects one map without any changes. The Hybrid
Redistricting Committee performs public outreach and draws two or more maps,
with City staff and consultant support. The City Council funds the process and
decides how the Hybrid Redistricting Committee members are selected; the City
Council may not appoint the Hybrid Redistricting Committee members.
Independent and Hybrid Redistricting Commissions have typically been used in very large
counties such as Los Angeles, Santa Barbara, and San Diego, as well as in the cities of
Long Beach, Oakland, Sacramento, San Diego, San Francisco, and Santa Barbara. One
reason these two types of redistricting commissions are generally used in larger cities or
counties is because of the challenge of identifying Commissioners that are qualified and
meet the State law membership qualifications.
Page 701 of 851
ATTACHMENT 2
For both Independent and Hybrid Redistricting Commissions, State law establishes an
extensive list of qualifications for membership, and there are post -service limitations on a
commissioner’s ability to run for local office, serve on a local board or commission, seek
City employment, or otherwise contract with the City. While the City may establish stricter
requirements for membership on any redistricting commission, the State law limitations
on membership generally include the following requireme nts (E.C. §23003):
Must be a resident of city.
The commission shall not be comprised entirely of members who are registered to
vote with the same political party preference.
Cannot be a candidate for or elected to City Council for the past 8 years (applies
to the commissioner and their family members) or be a candidate for or elected to
public office for 5 years after service (for commissioner).
Cannot have previously held a “disqualifying position” for the past 8 years (for
commissioner and their spouse) or past 4 years (for a commissioner’s non-spouse
family members), and a “disqualifying position” includes: (a) officer, employee, or
consultant for a candidate, campaign committee, or political party; or (b)
contributed $500 or more in a year to a Councilmember candidate.
Cannot participate in campaigns for City Council while on the commission.
Cannot be a candidate to serve in a district that was drawn by the commissioner.
Cannot be hired by the City as an employee or “no bid” consultant for 4 years.
Cannot be appointed to any other City board or commission for 2 years.
Process for Appointing Independent or Hybrid Commission Members
As mentioned above, the City Council may not appoint the members to either of these
two types of redistricting commissions (E.C. 23003[b]). Rather the City Council must
select a methodology for how these appointments are made. Two such approaches are
described below:
1. An Independent Selection Panel to Make the Appointments : The City Council may
appoint an independent selection body, such as a panel of retired judges; and that
selection body directly appoints the commissioners after an open selection
process. One of the greatest challenges with using an independent appointment
selection method is the level of difficulty in identifying a truly impartial independent
selection body.
2. A Random Drawing to Make Commission Appointments: After an open application
process, an independent selection body reviews the applications and creates a
pool of qualified applicants. A subset of applicants is selected at random from that
pool. That subset of applicants then selects the remaining commissioners from the
applicants still in the qualified pool. This method follows the model of the State
Redistricting Commission and is intended to prevent the governing board from
influencing who serves on the commission.
Page 702 of 851
Contract No. A45880
1
Revised 07-2023
BBK 72500.00001\32374915.1
CITY OF PALM DESERT
SHORT-FORM SERVICES AGREEMENT
DEMOGRAPHER SERVICES FOR THE PALM DESERT 2023 REDISTRICTING
1. Parties and Date. This Agreement is made and entered into this 1st day of August, 2023,
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 National Demographics Corporation, a
Corporation, with its principal place of business at P.O. Box 5241, Glendale, CA 91221
("Vendor"). The City and Vendor are sometimes individually referred to herein as "Party" and
collectively as "Parties."
The City is a public agency of the State of California and is in need of services for the
following project:
Palm Desert 2023 Redistricting Project
(hereinafter referred to as “the Project”).
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 in a timely
manner and in accordance with the Schedule of Services set forth in Exhibit “B”.
4. Term. The term of this Agreement shall be from August 1, 2023, to June 30, 2024, 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 "B" attached hereto and incorporated herein by this
reference. The total compensation shall not exceed Sixty Thousand Dollars ($60,000) per fiscal
year (“Agreement Price”). Vendor’s invoices shall include a detailed description of the Services
performed. Invoices shall be submitted to the City on a monthly basis. 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:
$1,000,000 per occurrence/$2,000,000 aggregate.
$2,000,000 per occurrence/$4,000,000 aggregate.
Automobile Liability:
$1,000,000 combined single limit for bodily injury and property damage.
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 703 of 851
Contract No. A45880
2
Revised 07-2023
BBK 72500.00001\32374915.1
Workers’ Compensation:
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.
Professional Liability (Errors and Omissions):
Errors & Omissions liability insurance with a limit of not less than $1,000,000 per
claim and in the aggregate.
[SIGNATURES ON THE NEXT PAGE]
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 704 of 851
Contract No. A45880
3
Revised 07-2023
BBK 72500.00001\32374915.1
SIGNATURE PAGE TO SHORT FORM SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT
AND NATIONAL DEMOGRAPHICS 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:
Anthony J. Mejia
City Clerk
Approved as to form:
By:
Best Best & Krieger LLP
City Attorney
NATIONAL DEMOGRAPHICS
CORPORATION, A CORPORATION
By:
Its:
President
Printed Name:
Douglas Johnson
By:
Its:
Secretary
Printed Name:
Douglas Johnson
QC: MN
Insurance:
_____
Initial Review
_____
Final Approval
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 705 of 851
Contract No. A45880
Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
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 e t 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 "p ublic
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 comp ly 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) a nd 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 prac ticing
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 Vendo r 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 om issions,
or willful misconduct of Vendor, its officials, officers, employees, subcontractors, consultants or agents in connection w ith 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 pro portionate
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 Coun ty 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
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 706 of 851
Contract No. A45880
Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
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 orde red, 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 participat ed 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
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.
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 707 of 851
Contract No. A45880
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “B”
SCOPE OF SERVICES; SCHEDULE OF SERVICES
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 708 of 851
Contract No. A45880
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 709 of 851
Contract No. A45880
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
DocuSign Envelope ID: A0A73479-883E-4A23-A2B9-92A3319D2E49
Page 710 of 851
Contract No. ___________
1
Revised 07-2023
BBK 72500.00001\32374915.1
CITY OF PALM DESERT
SHORT-FORM SERVICES AGREEMENT
PALM DESERT 2023 REDISTRICTING OUTREACH
AND ENGAGEMENT SERVICES
1. Parties and Date. This Agreement is made and entered into this 2nd day of August,
2023, 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 Tripepi Smith, an S Corporation, with its
principal place of business at P.O. Box 52152, Irvine, CA 92619 ("Vendor"). The City and Vendor
are sometimes individually referred to herein as "Party" and collectively as "Parties."
The City is a public agency of the State of California and is in need of services for the
following project:
Palm Desert 2023 Redistricting Outreach and Engagement Services
(hereinafter referred to as “the Project”).
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 in a timely
manner and in accordance with the Schedule of Services set forth in Exhibit “B”.
4. Term. The term of this Agreement shall be from August 2, 2023, to June 30, 2024, unless
earlier terminated as provided herein.
5. Compensation. Vendor shall receive compensation for Services rendered under this
Agreement at the rates and fees set forth in Exhibit "C" attached hereto and incorporated herein
by this reference. The total compensation shall not exceed Sixty Thousand Dollars ($60,000)
per fiscal year (“Agreement Price”). Vendor’s invoices shall include a detailed description of the
Services performed. Invoices shall be submitted to the City on a monthly basis. 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:
$1,000,000 per occurrence/$2,000,000 aggregate.
$2,000,000 per occurrence/$4,000,000 aggregate.
Automobile Liability:
$1,000,000 combined single limit for bodily injury and property damage.
Page 711 of 851
Contract No. ___________
2
Revised 07-2023
BBK 72500.00001\32374915.1
Workers’ Compensation:
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.
Professional Liability (Errors and Omissions):
Errors & Omissions liability insurance with a limit of not less than $1,000,000 per
claim and in the aggregate.
SIGNATURES TO SHORT FORM SERVICES AGREEMENT
BY AND BETWEEN THE CITY OF PALM DESERT AND TRIPEPI SMITH
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:
Anthony J. Mejia
City Clerk
Approved as to form:
By:
Best Best & Krieger LLP
City Attorney
TRIPEPI SMITH, AN S CORPORATION
By:
Its:
President
Printed Name:
Ryder Todd Smith
By:
Its:
Printed Name:
QC: _____
Insurance:
_____
Initial Review
_____
Final Approval
Page 712 of 851
Contract No. ___________
Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
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 (L abor 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 enforce ment.
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 prac ticing
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 Vendo r 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 willfu l
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 Civi l 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
Page 713 of 851
Contract No. ___________
Exhibit “A”
Revised 07-2023
BBK 72500.00001\32374915.1
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 participat ed 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
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 714 of 851
Contract No. ___________
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “B”
SCOPE OF SERVICES; SCHEDULE OF SERVICES
Project Team
• Jennifer Nentwig, Principal: Project oversight, handle major presentations, and provide
strategic guidance.
• Melanie Moore, Business Analyst: Project manager, review agendas, and provide quality
control.
• Mackenna Morrice, Junior Business Analyst: Additional project management support and
lead content development.
• Kjerstin Wingert, Senior Graphic Artist: Execution of design and print.
• Audrin Baghaie, Junior Business Analyst: Engineer virtual meetings and produce meeting
recordings.
Tripepi Smith may adjust the staffing of the team to meet the needs of the City and will do so in
collaboration with City Staff.
For video work, printing, niche website development needs or mailing, we sometimes use
subcontractors to supplement our services. These engagements are often determined at the time
of the need, so it is difficult to predict which subcontractors would work on your project. Firms or
people that we routinely subcontract with include:
• InfoSend – Print and Mail House Services
• DLS Printer Services – High-end Printing for Collateral
• Emily Baker – Voiceover Work
Proposed Scope of Services:
Tripepi Smith is available to perform the work outlined below, to the extent that the not to exceed
amount allows:
Project Management
Tripepi Smith will facilitate all project calls for this engagement and create a living agenda to
manage the efforts and timing between the demographer, legal counsel, City and Tripepi Smith.
After the initial set-up, these meetings will be biweekly from (tentatively) September 2023 through
January 2024, from the beginning of the outreach process to the adoption of a selected map. The
phone calls will typically last up to an hour and will have a detailed agenda and notes. After each
call, Tripepi Smith will send a summary email about decisions made on the phone call and related
action steps for all involved parties. Call content will focus on action steps, timeline, coordination
with City staff and verifications of action steps with the legal and demographic experts.
Graphic Design Support
Tripepi Smith will provide graphic design support by creating a flyer and assisting with graphic
design of PowerPoints upon request.
Social Media Support
Tripepi Smith will create copy and graphics for social media posts about the districting process.
We will set up boosted posts (paid advertising) on Facebook and Instagram to help spread the
word about meetings and solicit public commentary. If the City is not currently authorized to run
Page 715 of 851
Contract No. ___________
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
“political” advertising on Meta platforms, Tripepi Smith will assist the City with getting the required
authorization through our ad hoc support.
Page 716 of 851
Contract No. ___________
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
Creation and Updates to Dedicated Districting Website
Tripepi Smith can create a districting website in coordination with the demographer. Tripepi Smith
uses WordPress to create dedicated standalone districting websites, and we can host the
districting website for the legally required 10 years. (Hosting fee would be $610/year following the
initial year.)
Press Release/News Article for Website
Tripepi Smith will draft press releases throughout the project to ensure local media aids our efforts
to reach City residents. Tripepi Smith will identify media contacts, collaborate with City staff to
further expand the media list, and ensure we reach diverse media. For key media, Tripepi Smith
will follow up with phone calls. We foresee the following possible press releases: (1)
announcement of districting kickoff and process schedule announcement, and (2) announcement
on the adoption of new district lines.
Community/Civic Group Outreach List Research and Development
Tripepi Smith will work with the City to develop a robust stakeholder list and engagement
database. If an existing community outreach contact list is available, Tripepi Smith will start with
such a list and expand the list based upon our districting outreach involving local community
groups - good government, civil rights, civic engagement and language minority groups.
Animated Explainer Video
Tripepi Smith can develop a user-friendly, visually appealing animated explainer video to explain
the district formation process and encourage public participation. The video would be customized
with language and elements for the City of Palm Desert. We will add captions in English and
subtitles in Spanish.
Outreach Emails/Calls
Tripepi Smith can conduct stakeholder emails/calls –announcing the launch of the process and
the schedule of meetings/workshops, and another round promoting public feedback prior to the
selection of a district map. We would then keep a detailed record of emails and calls made to
each stakeholder.
Printing and Mailing
Sending a postcard to every member of the community can be expensive, but it ensures that
everyone – even those without social media or Internet access – is able to have a chance to learn
about the district formation process. To that end, Tripepi Smith has experience creating mailers
to reach each household in a community. Based upon our team’s previous experience developing
and coordinating the printing of mailers for Palm Desert, the cost would be approximately $25,000
for a mailer plus about $5,000 in design, translation, and project management fees.
Whatever mailer is sent would include reference to non-English language options and appropriate
website URL’s to find information in Spanish.
Advertising
Tripepi Smith can manage a significant advertising campaign to drive community interest in the
district formation process. We generally place an emphasis first on leveraging existing City
platforms such as the City’s newsletters, website and social media channels to ensure we are
being cost-effective with outreach. Second, we prefer to use digital advertising to target people
who are actually in Palm Desert. Third, there are likely target rich local ethnic media outlets we
can leverage to advertise in that are relatively cost effective, so it would be wise to collaborate
with the City to identify those specific publications and work with those publications to connect
with their unique audiences.
Page 717 of 851
Contract No. ___________
Exhibit “B”
Revised 07-2023
BBK 72500.00001\32374915.1
In prior outreach work, Tripepi Smith has focused on these types of paid advertising: local papers,
radio, Spotify and Pandora geo-targeted placements, Google geo-targeted display advertising,
YouTube geo-targeted video advertising, Facebook and Instagram boosted posts with geo-
targets, smaller local billboards, and signage on local bus routes in buses or on benches.
Digital advertising would also provide an opportunity to do language targeted advertising so
Spanish-speakers are seeing Spanish ads, for example.
Tripepi Smith generally encourages client cities to pay for these costs directly, but Tripepi Smith
can pay for these costs and apply a 10% management fee.
Some advertising would require our video and graphic design services, and we can make those
available through our ad hoc rates to support the creative development of the ads.
End of Engagement Outreach Report
Tripepi Smith can develop a 10-page summary report near the conclusion of the project and
concurrent with the final two public hearings that summarize all the efforts made by the City to
connect with residents and seeking their input. The work report would demonstrate both the in-
person and digital efforts to connect with residents and denote a clear timeline for that
engagement. Metrics such as website traffic, social media reach, workshop attendance and more
would be summarized in the report. A draft report would be presented to City Staff for their
feedback prior to making the report final.
Page 718 of 851
Contract No. ___________
Exhibit “C”
Revised 07-2023
BBK 72500.00001\32374915.1
EXHIBIT “C”
COMPENSATION
Time and Materials Engagement
Given the high variability of the type of engagement that may be needed by Tripepi Smith, we
could engage with the City on a pure time and materials basis. Tripepi Smith will provide monthly
updates on the budget use and how it is being spent depending on the nature of the engagement
or project.
Note that given the preliminary analysis required to determine the extent of the districting outreach
needs, our minimum engagement for time and materials approach is $5,000. We will bill that initial
amount at the kickoff of the project and then credit that amount toward any hourly work for the
initial $5,000 in billings. This model addresses the overhead costs related to startup, preparation
and initial project management related to redistricting efforts.
During the time and materials engagement, rates and fees outlined in the Ad Hoc section below
would apply.
Time at Tripepi Smith is billed in 15-minute increments. See the following examples for how we
invoice our time: 1.25, .75, 4 or 6.5 hours.
If Tripepi Smith is requested to be onsite for work that is billable on an ad hoc basis, we will invoice
for travel time at half-rate of the resource’s Standard Rate when work is being performed on an
ad hoc basis.
Page 719 of 851
Contract No. ___________
Exhibit “C”
Revised 07-2023
BBK 72500.00001\32374915.1
Sometimes, we have a resource who work across categories of skills. For example, we may have
a videographer who operates a drone. When that person is doing the category of skill, that skill
rate will apply. In this example, a videographer flying a drone is billed at the drone operator rate.
Other Fees
Because Tripepi Smith offers a broad set of services, including extensive content production, we
have some other content production-related fees that may come up during the course of our
engagement that you should be aware of.
Website Development/Hosting Fees
Should the City choose to have Tripepi Smith develop a dedicated website (separate from the
City's website), there is a one-time fee of $4,610 to develop and launch the site. Subsequent
work to post updated content over the course of the project will be billed on a Time and Materials
basis.
There is an annual $610 website hosting fee, beginning in 2024. The City shall prepay this
amount from 2024 up until the 2034 Census redistricting round. This amount will be invoiced on
the final Tripepi Smith invoice of this engagement.
Equipment Fees
Tripepi Smith offers some services that require equipment, such as drone operations and video
production. As such, in those cases, the following rates apply:
• $550 for a full day of video equipment use (includes full set of video equipment). Full day
is defined as a shoot lasting more than four hours.
• $350 for a half day of video equipment use. Half day is defined as anything up to four
hours of video production. All such expenses will be authorized by the organization prior
to fee being assessed.
• $500/day drone fee applies and is not inclusive of the drone operator time (drone operator
rate).
Larger production projects may require additional fees for extensive equipment needs, multiple
cameras, live switchboards and more. These fees will be discussed prior to being incurred with
the City.
Printing Fees
Tripepi Smith is happy to use a printer of the client’s choosing for print production work, or to
recommend a printer with whom we have experience. Tripepi Smith typically has the printer bill
the client directly for work. Tripepi Smith makes no money on print services and has no economic
interest in the selected print vendor other than ensuring quality and fair pricing for our clients. If
Tripepi Smith is asked to pay the bill for the client, we will apply a 10% agency fee to the
reimbursement expense.
Digital Advertising Fees
Tripepi Smith is a Google Partner and Constant Contact Solution Provider and has Facebook
Certified staff. We consider digital platforms to be a cornerstone element of any outreach strategy;
often this comes with digital advertising fees. Tripepi Smith typically uses a client’s credit card to
cover such fees, and those fees are impossible to estimate at this time without our firm being
engaged in the work with the team. If a Tripepi Smith credit card is used to run the advertising
campaign, then we will charge an additional 10% agency fee on all advertising charges to
compensate for the administrative overhead.
Page 720 of 851
CITY OF PALM DESERT
CITY CLERK’S OFFICE
MEMORANDUM
To: Honorable Mayor and City Council
From: Anthony J. Mejia, City Clerk
Date: August 23, 2023
Subject: Palm Desert Redistricting 2023: Public Education and Outreach Plan – Revised Draft
As noted in the staff report, Assembly Bill 764 (Bryan): Local Redistricting is circulating through the
legislature and appears to be moving forward to adoption. After the posting of the agenda, City staff
became aware that the legislature amended AB 764 to require local jurisdictions to conduct two
pre-map and three post-map public hearings. City staff has updated the draft Public Education and
Outreach Plan to comply with these new requirements.
The revised draft Plan is enclosed with this memo in redline format and the PowerPoint presentation
also highlights the proposed changes.
Enclosure:
• Public Education and Outreach Plan – Revised Draft
• PowerPoint Presentation
Page 721 of 851
Public Education & Outreach Plan
PALM DESERT
REDISTRICTING 2023
REVISED DRAFT
Page 722 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 1
PUBLIC EDUCATION AND OUTREACH PLAN
In accordance with Assembly Bill 764, this Public Education and Outreach Plan is organized to address the provisions
of Election Code 21160:
Financial Resources
The City has executed agreements with: 1) National Demographic Corporation to serve as the City’s demographer in
an amount not to exceed $60,000, 2) Tripepi Smith to provide outreach and engagement services in an amount not
to exceed $60,000, of which $40,000 is budgeted for direct services and $2 0,000 for advertising, 3) Professional
Interpreting to provide on-call Spanish-language document translation and interpreter services in an amount not to
exceed $5,000; and 4) CASL Interpreting for on -call American Sign Language interpreter services in an amount not
to exceed $5,000. In addition, the City has allocated $25,000 (estimate) for a Citywide English/Spanish mailer to
inform residents about the redistricting process. Total financial resources allocated: $155,000.
Key Personnel
The City Clerk has been designated to serve as the primary staff resource and key contact for resident inquires related
to redistricting. Other key personnel include William Priest, of Best , Best & Krieger, serving as legal counsel for
redistricting/election-related matters; Doug Johnson and Shalice Tilton, of National Demographic Corporation,
serving as the City’s demographer; and Jennifer Nentwig and Melanie Moore, of Tripepi Smith, serving as consultants
for public education and engagement efforts.
Local Media
The City will issue at least two (2) press releases to each of the identified media organizations below to ensure local
media aids our efforts to reach residents. The City will identify media, including those that serve language minority
communities, to ensure that we reach diverse media. It is anticipated the first press release will announce the
redistricting kickoff and schedule and the second press release will announce the adoption of final map.
• Known Local Media:
o English: The Desert Sun, KESQ, NBC Palm Springs, K-NEWS/Alpha Media, iHub Radio, Desert
Entertainer, Palm Springs Life, CV News Desk, and Coachella Valley Independent
o Spanish: La Prensa Hispana, El Informador del Valle, Televisa Univision, and Telemundo Palm Springs
• Good faith efforts will be made to identify additional local media organizations, including those that serve
language minority communities.
Social Media
The City will utilize both social media and paid boosted advertising on social media platforms on a regular basis to
reach residents including Facebook, Twitter, Instagram, Google Display Ads, and YouTube Ads.
Legal Notices
The City will post or publish public hearing notices on the project website, at locations where the City Council agenda
is posted, and in the Desert Sun and La Prensa Hispana.
Radio Advertising
The City will utilize paid radio advertising on top-performing English and Spanish radio stations which serve the
greater Palm Desert area:
• English – Alpha Media (Mix 100.5, K-NEWS 104.7)
• Spanish – La Ponderosa 96.7, La Suavecita 94.7
• Bilingual – Spotify & Pandora (geo-targeted placements)
Page 723 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 2
Citywide Mailer
The City will issue a standalone, bilingual (English/Spanish) Citywide mailer informing residents that the City is
redistricting to establish five (5) single-member districts, including hearing dates, information on how to participate,
and to learn more by accessing the redistricting website. In addition, the City will feature articles in its digital and
hardcopy newsletter, the Brightside.
Good Government, Civil Rights, Civic Engagement, and Community Groups
On August 8, 2023, the City shared this draft Public Education and Engagement Plan with the American Civil Liberties
Union (ACLU) of Southern California for their consideration and feedback. On August 9, 2023, the City posted this
draft plan on its website for a 14-day public review and comment period.
In the coming weeks, the City, utilizing the services of Tripepi Smith, will make a diligent effort to identify any
additional Good Government, Civil Rights, and other such groups active in Palm Desert. Once known, the City will
conduct stakeholder emails/calls – announcing the launch of the process and the schedule of meetings, and another
round promoting public feedback prior to the selection of a final map.
In addition, the City will reach out to known civic/community groups such as Palm Desert Rotary, Soroptimist Palm
Desert, Palm Desert Chamber of Commerce, and Neighbors Together, to offer presentations to their members
regarding the redistricting process and how to participate.
Dedicated Standalone Website
The City will establish a dedicated, bilingual (English/Spanish) standalone websit e for this redistricting effort and
shall maintain the website for a period of 10 years. The City’s main website homepage shall include a prominent link
to the redistricting website.
The website will include the following:
• A general explanation of the redistricting process.
• An explanation of the procedures for a member of the public to provide in -person or remote public
comment during a public hearing or to submit written public comment or a draft map to the City, either in
a paper or electronic format, for consideration at a future public hearing.
• A schedule of all workshop and public hearing dates.
• A notice of the applicable languages in which the local jurisdiction will provide live translation of a workshop
or public hearing upon request and instructions for making such a request.
• Instructions and a method for a person to sign up to receive regular notices regarding redistricting, including
notices of upcoming workshops or public hearings.
• The notice and agenda for each workshop and public hearing.
• The recording or written summary of each workshop and public hearing.
• Each draft map considered by the City Council at a public hearing.
• Each written public comment submitted to the local jurisdiction.
• The existing map of election district boundaries prior to redistricting.
• The adopted final map of election district boundaries after redistricting.
Interested Parties List
The City will maintain a list of residents and organizations who request to receive notification regarding notices of
all future project hearings or meetings and other project-related messaging that is sent by the City.
Coordination With Other Jurisdictions
The City is not aware of any overlapping or nearby jurisdictions currently redistricting.
Page 724 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 3
SCHEDULE OF PUBLIC HEARINGS, COMMUNITY WORKSHOPS, AND MAP-DRAWING WORKSHOPS
Wed., Sept. 6, 2023, at 6:00 pm Community Workshop #1 Civic Center/Zoom Hybrid
Pre-Map Workshop to share information on the redistricting process, how to provide public comment, and how
to submit a proposed map for consideration.
Spanish & ASL interpreters will be on-site. Spanish interpreter & captioning will be available via Zoom
Zoom: https://palmdesert.zoom.us/j/87472618314
Thurs., Sept. 14, 2023, at 4:30 pm Pre-Map Public Hearing #1 Council Chamber/Zoom Hybrid
Public Hearing to inform the City Council and public about the redistricting process, how to provide public
comment; how to submit a map for consideration; solicit public comment.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Zoom: https://palmdesert.zoom.us/
Thurs., Sept. 28, 2023, at 4:30 pm Pre-Map Public Hearing #2 Council Chamber/Zoom Hybrid
Public Hearing to inform the City Council and public about the redistricting process, how to provide public
comment; how to submit a map for consideration; solicit public comment. Presentation of demographer’s and
early public submitted maps; how to provide public comment; how to submit a map for consideration; solici t
public comment.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Zoom: https://palmdesert.zoom.us/
Friday, September 29, 2023 Community Map Drawing Opens
The demographer’s draft maps will be released for public review and comment. The demographer’s online and
paper map drawing tools will be available for the public to draft and submit their own maps for consideration
Wed., Oct. 4, 2023, at 5:00 pm Map Drawing Workshop #1 Zoom
The demographer will demonstrate how to use the online mapping tool and submit a map for consideration.
This session will be recorded and posted to the redistricting website.
Spanish interpreter & captioning will be available via Zoom
Zoom: https://palmdesert.zoom.us/j/83593059783
Mon., Oct. 16, 2023, at 5:00 pm Map Drawing Workshop #2 Zoom
The demographer will demonstrate how to use the online mapping tool and submit a map for consideration.
This session will be recorded and posted to the redistricting website.
Spanish interpreter & captioning will be available via Zoom
Zoom: https://palmdesert.zoom.us/j/86378653984
Wednesday, November 1, 2023 Community Map Drawing Closes
Deadline for the submission of community drawn maps for consideration.
Thurs., Nov. 16, 2023, at 4:30 pm Post-Maps Public Hearing #3 Council Chamber/Zoom Hybrid
All demographer and community-drawn maps will be presented for City Council consideration; solicit public
comment; City Council will be requested to narrow maps to three (3) to five (5) “focus maps.”
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Zoom: https://palmdesert.zoom.us/
Wed., Nov. 29, 2023, at 6:00 pm Community Workshop #2 Palm Desert iHub (in-person)
Presentation of focus maps; solicit public comment/feedback.
Spanish & ASL interpreters will be on-site.
Page 725 of 851
Palm Desert Redistricting 2023 Public Education and Outreach Plan
City of Palm Desert Page 4
Wed., Dec. 6, 2023, at 6:00 pm Community Workshop #3 Civic Center/Zoom Hybrid
Presentation of focus maps; solicit public comment/feedback.
Spanish & ASL interpreters will be on-site. Spanish interpreter & captioning will be available via Zoom
Zoom: https://palmdesert.zoom.us/j/84020763120
Thurs., Dec. 14, 2023, at 4:30 pm Post-Maps Public Hearing #4 Council Chamber/Zoom Hybrid
Provide City Council with community feedback gathered at workshops; solicit additional public comment;
request that the City Council further narrow down the number of mapsselect a final map and provide direction
on any final adjustments.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Zoom: https://palmdesert.zoom.us/
Thurs., Jan. 11, 2024, at 4:30 pm Post-Map Public Hearing #5 Council Chamber/Zoom Hybrid
Solicit public comment; adopt a final map and introduce an ordinance enacting five (5) single member
districts.select a final map and provide direction on any final adjustments.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Zoom: https://palmdesert.zoom.us/
Thurs., Jan. 25, 2024, at 4:30 pm Public Hearing #6 City Council
Meeting
Council Chamber/Zoom Hybrid
Solicit public comment; adoption of an ordinance enacting five (5) single -member districts; introduction of an
ordinance eliminating use of Ranked Choice Voting in future elections.Solicit public comment; adoption of a
final map and introduction of an ordinance enacting five (5) single-member districts.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Zoom: https://palmdesert.zoom.us/
Thurs., Feb. 15, 2024, at 4:00 pm City Council Meeting Council Chamber/Zoom Hybrid
Solicit public comment; adoption of an ordinance enacting five (5) single -member districts; introduction of an
ordinance eliminating use of Ranked Choice Voting in future elections.
Spanish and ASL Interpreters available upon request. Captioning provided with online live stream.
Zoom: https://palmdesert.zoom.us/
LOCATIONS ADDRESS CONTACT INFORMATION
Civic Center
Administrative Services Building
73-510 Fred Waring Drive, Palm
Desert, CA 92260
Main: (760) 346-0611
Email: cityclerk@palmdesert.gov
Council Chamber 73-510 Fred Waring Drive,
Palm Desert, CA 92260
Main: (760) 346-0611
Email: cityclerk@palmdesert.gov
Palm Desert iHub 37023 Cook Street, Suite 102
Palm Desert, CA 92211
Main: (760) 346-0611
Email: cityclerk@palmdesert.gov
Page 726 of 851
Public Education and
Outreach Plan
Palm Desert Redistricting 2023
August 24, 2023
Page 727 of 851
Optional Processes for Establishing Districts
Used in the 2018 districting & 2021 redistricting processes
Council-Driven Process:
May perform community outreach/workshops and provide
recommendations
Advisory Redistricting Commission (Council appointed):
Full and final authority to adopt maps
Conducts workshops/public hearing
Independent Redistricting Commission (Independently selected):
Conducts workshops/public hearings
Submits two or more final maps for City Council adoption,
without changes.
Hybrid Redistricting Commission (Independently selected):
This outreach plan & schedule is based on
a Council-driven process.
If the City Council pursues Options 2-4,
please note that a recruitment and
selection process may delay the schedule
by up to two months.
City staff recommends a Council-driven
process, given that the demographers are
political neutral technicians and District 1
will largely stay intact as previously
indicated. This exercise is mainly to
determine how District 2 will be divide
amongst north and south PD.
Page 728 of 851
Assembly Bill 764
Two Pre-Map Public Hearings: The purpose of these hearings are
typically to inform the public how to participate and gather input on
"communities of interest."
Three Post-Map Public Hearings: The purpose is to gather public input
regarding the draft maps and to allow the City Council to narrow the
number of maps until a final map is adopted.
AB 764 is currently circulating in the
legislature and appears to be headed
towards approval.
AB 764 was recently amended and now
proposes to require:
Page 729 of 851
REVISED - Schedule of Workshops & Public Hearings
Sept. 6: Community Workshop #1 (Pre-Map)
Sept. 14: Public Hearing #1 (Pre-Map)
Sept. 28: Public Hearing #2 (Pre-Map Post Map - Demographer's maps)
Sept. 29: Demographer's Maps released & Community Mapping System Opens
Oct. 4 & 16: Map Drawing Workshops
Nov. 1: Community Mapping System Closes
Nov. 16: Public Hearing #3 (Post Map - All maps presented; Select 3-5 Focus Maps)
Nov. 29: Community Workshop #2 (Public input on focus maps)
Dec. 6: Community Workshop #3 (Public input on focus maps)
Dec. 14: Public Hearing #4 (Post Map - Select final map; direct any adjustments Further reduce # of Focus Maps)
Jan. 11, 2024: Public Hearing #5 (Post Map - Adopt final map Select final map; direct any adjustments)
Jan. 25, 2024: Public Hearing #6 (Adopt Final Map)
Page 730 of 851
Elements of the Public Education & Outreach Plan
Citywide Mailer: To be mailed as soon as practicable after adoption of the
outreach plan
Press Releases: At least two press releases to English and Spanish local media
organizations
Social Media: Utilizing both social media and paid boosted advertising on a
regular basis on Facebook, Twitter, Instragram, Google Ads, & YouTube Ads.
Radio Advertising: English & Spanish
Legal Notices: Desert Sun & La Prensa
Community Groups: Sept. through Nov., presentations on how to participate
and submit maps.
Dedicated Website
Page 731 of 851
Select a council-driven process, provide feedback on the outreach plan and
schedule of public hearings/workshops, and adopt the plan.
Recommendation
For questions or to schedule a presentation for your community group, please contact:
Anthony Mejia, City Clerk
cityclerk@palmdesert.gov
(760) 346-0611
Page 732 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 733 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 734 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 735 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 736 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 737 of 851
Page 738 of 851
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Richard D. Cannone, AICP, Development Services Director
REQUEST: INTRODUCTION OF AN ORDINANCE UPDATING CHAPTER 8.20 OF
THE PALM DESERT MUNICIPAL CODE UPDATING PUBLIC NUISANCE
ABATEMENT AND COST RECOVERY PROCEDURES, AND MAKING A
FINDING OF EXEMPTION UNDER CEQA
RECOMMENDATION:
Waive full reading and introduce Ordinance entitled “An Ordinance of the City Council of the
City of Palm Desert, California Updating Chapter 8.20 of the Palm Desert Municipal Code
Regarding Public Nuisance Abatement and Cost Recovery Procedures, and Making a Finding
of Exemption Under CEQA”
BACKGROUND/ANALYSIS:
A recent code compliance matter regarding rodent infestation in Palm Desert Greens revealed
challenges for abatement actions. Once staff serves a notice declaring a property a public
nuisance, the owner has 10 days to file an appeal. City Council serves as the body (as opposed
to a hearing examiner) for any public nuisance abatement appeals and cost recovery actions.
That appeal hearing must be scheduled at a regular city council meeting no more than 30 days
after receiving the appeal. This requirement poses a challenge by delaying the process if there
is only one city council meeting scheduled for the month.
As a result, staff worked with the city attorney’s office to review Chapter 8.20, Public Nuisances
and recommend changes based on current best practices, including delegating abatement
appeals and cost recovery to a hearing examiner. Much of this chapter contains the original
language from 1988. Notable changes include:
1. Organizes the code sections to provide a roadmap for nuisance abatement and cost recovery
procedures.
a. Nuisance abatement
i. Procedure for inspections clarified.
ii. Enforcement official issues Notice to Abate – the proposed ordinance
provides more detail on what is required to notify responsible party of the
alleged nuisance conditions, what is required to remedy those conditions, and
a reasonable time by which the responsible party must gain compliance.
iii. Responsible party can appeal Notice to Abate to an independent hearing
officer, rather than City Council.
iv. The proposed ordinance requires the City Clerk to schedule hearing and
notify appellant in writing and includes more detail on hearing pro cedures.
v. Hearing officer decision is final, further review is available in Superior Court.
Page 739 of 851
City of Palm Desert
Chapter 8.20 Public Nuisance Update
Page 2 of 2
vi. If nuisance not abated within time required by hearing officer’s order, City
may commence abatement.
vii. The City retains the ability to file a Notice of Violation against a property if the
nuisance is not abated in the time period listed in the Notice to Abate or
hearing officer’s decision/order.
viii. Exception for summary abatement – The proposed ordinance provides
greater detail on how summary abatement may be conducte d lawfully,
including the requirement that a Notice of Summary Abatement must be
served on the property owner following a summary abatement action by the
City.
b. Cost Recovery
i. City must serve an itemized report of costs on responsible party. Costs are
due in 45 days.
ii. Responsible party may appeal the report of abatement costs to a hearing
officer, the report of costs does not automatically go to City Council for a
hearing.
iii. The hearing procedures are substantially similar to those for Notice to Abate
appeals.
iv. Upon expiration of 45 days after the report of abatement costs is served or
30 days after the hearing officer’s decision is served, the City can collect costs
through all the same methods available under the previous ordinance. Those
methods include a nuisance abatement lien, a special assessment, or a civil
action. In a civil action, attorney’s fees may be recovered pursuant to state
law. Other remedies include a criminal citation and administrative citation
fines.
2. Combines enforcement/remedies provisions.
a. Other than the sections specific to liens and special assessments, the proposed
ordinance combines all other enforcement -related provisions and remedies into one
section, rather than having these provisions in separate sections.
3. Updates list of property nuisances.
a. Minor changes have been made to the list of nuisances. The definition of “refuse and
waste matter” is incorporated into this section rather than being in its own section.
Business-related nuisances are included (with examples provided) in this section
rather than being in a separate section.
4. Adds definitions for clarity.
FINANCIAL IMPACT:
There is no fiscal impact associated with the adoption of this ordinance.
ATTACHMENTS:
1. Draft Ordinance
Page 740 of 851
Ordinance No. ____ Page 1
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA UPDATING CHAPTER 8.20 OF THE PALM
DESERT MUNICIPAL CODE REGARDING PUBLIC NUISANCE
ABATEMENT AND COST RECOVERY PROCEDURES, AND MAKING A
FINDING OF EXEMPTION UNDER CEQA
THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES ORDAIN AS
FOLLOWS:
SECTION 1. Amendment to Municipal Code. Palm Desert Municipal Code
Chapter 8.20 Public Nuisances is amended to read as follows:
“Chapter 8.20 PUBLIC NUISANCES
8.20.010 Purpose.
8.20.015 Definitions.
8.20.020 Unlawful property nuisances.
8.20.030 Service requirements.
8.20.040 Procedure for inspections.
8.20.050 Notice to Abate.
8.20.060 Notice to Abate appeals and hearings.
8.20.070 Abatement by City.
8.20.080 Summary abatement.
8.20.090 Recordation of Notice of Violation.
8.20.100 City’s right to recover nuisance abatement costs.
8.20.110 Scope of recoverable abatement costs.
8.20.120 Initiation of cost recovery process.
8.20.130 Report of abatement costs appeal hearing procedures.
8.20.140 Initiation of collection process.
8.20.150 Collection of costs as lien.
8.20.160 Collection of costs as a special assessment.
Page 741 of 851
Ordinance No. ____ Page 2
8.20.170 Enforcement.
8.20.010 Purpose.
The purpose and intent of this Chapter is to provide regulations that will promote
the sound maintenance of property and enhance conditions of appearance, habitability,
occupancy, and safety of all structures and premises in the City, and to afford due
process of law to any person who is directly affected by this process. It is the policy of
the City to ensure all applicable laws are followed by the City in performance of this
Chapter, including respect for constitutional protections, due process, and equal
protection.
In order to further the stated goal of the City of Palm Desert and to protect its
citizens and their property from conditions which are offensive or annoying to the
senses, detrimental to property values and community appearance, or hazardous or
injurious to the health, safety, or welfare of the general public, the City Council has
determined that this Chapter pertaining to nuisance abatement is necessary to
effectively abate or prevent the development of such conditions in the City.
This Chapter may not be applied, construed, or given effect in a manner that
imposes upon the City any duty towards persons or property or that creates a basis for
civil liability for damages, except as otherwise imposed by law. The City reserves the
right to address abatement of nuisance in a variety of ways at its sole discretion while
balancing the use of limited City resources.
8.20.015 Definitions.
For the purposes of this Chapter, unless otherwise apparent from the context,
certain words or phrases used in this Chapter are def ined as follows:
“Abatement costs” means all costs, fees, and expenses, incidental or otherwise,
including attorney’s fees and City staff time charges, incurred by the City in investigating
and abating a public nuisance.
“Enforcement official” means any City employee or agent designated by the City
Manager with the authority and responsibility to enforce any provision of this Code,
including an officer employed by the City and an officer providing services to the City
under contract.
“Hearing officer” means an impartial individual designated and authorized by this
Chapter to hear and review appeals of a person receiving a notice, decision, or order
issued under this Chapter.
“Person” means any natural person or legal entity, including any firm,
partnership, association, corporation, organization or entity of any kind, or such person’s
authorized representative.
Page 742 of 851
Ordinance No. ____ Page 3
“Responsible party” means any of the following:
1. A person who causes a code violation to occur;
2. A person who maintains or allows a code violation to continue, by his or
her action or failure to act; or
3. A person who is the owner of, and a person who is a tenant, lessee or
sublessee with the current right of possession of real property where a property -related
code violation occurs or exists.
4. A person whose agent, employee, or independent contractor causes a
code violation by its action or failure to act.
5. A person who is the on-site manager of a business, or a person actually or
apparently in charge of the business.
6. The parent or the legal guardian of any person under the age of eighteen
years of age, who causes a code violation by his or her action or failure to act.
For purposes of this subsection “person” includes a natural person or legal entity,
and the owners, corporate officers, trustees, and general partners of a legal entity.
There shall be a legal presumption that the record owner of a parcel according to the
county’s latest equalized property tax assessment rolls and a tenant, lessee or
sublessee of a parcel has notice of any code violation existing on the premises.
For the purposes of this chapter, there may be more than one responsible
Person for a code violation.
8.20.020 Unlawful property nuisances.
It is unlawful and a public nuisance for any person owning, leasing, renting,
occupying, or having charge or possession of any property in the City to maintain the
property or allow the property to be maintained, with any of the following conditions:
A. Buildings or structures which are abandoned, partially destroyed or left in
an unreasonable state of partial construction. For purposes of this subsection, an
“unreasonable state of partial construction” is where any partially constructed building or
structure, the building permits for which have expired, or substantially detracts from the
appearance of the immediate neighborhood;
B. Unpainted buildings or structures that have dry rot, whose materials are
warped or infested with termites, or any building or structure whose paint has become
excessively cracked, or whose paint has peeled or blistered;
C. Exterior walls, fences, driveways or sidewalks which are maintained in a
condition of deterioration or disrepair and which are defective or unsightly;
Page 743 of 851
Ordinance No. ____ Page 4
D. Broken windows, damaged doors or gates which constitute a hazard and
an invitation to trespassers or vagrants;
E. Construction equipment, machinery or building materials of any type or
description parked or stored on the premises which is visible to the general public
except during excavation, construction or demolition operations conducte d pursuant to
an active building or grading permit for the premises;
F. Land graded without an appropriate city permit which causes erosion,
subsidence or surface water drainage problems of such magnitude as to be injurious or
potentially injurious to the public health, safety, and welfare or to be injurious or
potentially injurious to adjacent properties;
G. Any excavation, pit, well or hole which is open to the public, or unguarded,
or abandoned, such that the excavation, pit, well or hole may be dangerou s to life;
H. Any dust, sand, gravel, trash, or other refuse and waste matter or debris
which is allowed to interfere with the reasonable enjoyment of property by neighbors, or
detrimentally affects property values in surrounding neighborhoods or community and/or
resulting from construction activities within the city;
I. All outdoor stairs, porches, hand railings, balconies and awnings not
adequately maintained in a safe and structurally sound condition;
J. Any swimming pool, spa, pond, fountain or other bo dy of water which is,
may become, or which has become polluted, stagnant, a breeding place for insects or
otherwise hazardous, odorous or unsightly;
K. A building or structure that is marked or defaced with spray paint, dye or
like substance in a manner commonly described as graffiti;
L. Any violation of any Palm Desert Municipal Code section, any violation of
a Riverside County Code of Ordinances section adopted by the City, or any violation of
the uniform codes adopted by the City including, but not limited to, the Uniform Building
Code, Code for Abatement of Dangerous Buildings, Plumbing Code, Electrical Code,
Mechanical Code, Swimming Pool Code, Fire Code, Health Code or Uniform Housing
Code, as the same currently exist or as they may be hereinafter enac ted or amended;
M. Premises so maintained as to cause the accumulation of polluted or
stagnant water when such water causes a hazardous or unhealthy condition, breeding
areas for insects, or erosion of foundation walls or soil;
N. Maintenance of property so out of harmony or conformity with the
maintenance standards of adjacent properties as to interfere with the reasonable
enjoyment of property by neighbors, and depreciate the aesthetic and property values of
surrounding property;
Page 744 of 851
Ordinance No. ____ Page 5
O. The intentional outdoor burning of any material, structure, matter or thing,
unless authorized by the city fire department or authorized representative by issuance
of a permit to do so. There shall be no authorized burning on Friday, Saturday, Sunday
or Government Code holidays;
P. To leave or permit any abandoned, unattended or discarded icebox,
refrigerator, freezer or other container which has an airtight door or lid with a snap lock
or other device which may not be released from the inside, to be left outside of any
building or structure at any time;
Q. Stockpiling of fill dirt or other material without a permit;
R. The substantial lack of maintenance of grounds, landscape, shrubs, plants
or vegetation within the city which are viewable by the general public from a public rig ht-
of-way or viewable from neighboring properties such that the property values of
surrounding properties are reduced or such that the aesthetics of surrounding properties
are detrimentally affected;
S. Landfills which contain organic materials, except as permitted by the chief
building officer or director of public works;
T. The existence of the following on property such that the health, safety or
general welfare is detrimentally affected or in such a manner that a public nuisance or
fire hazard is created:
1. Lumber, junk, trash, debris, refuse, waste matter or other salvage
materials visible from a public right-of-way or adjoining property,
2. Attractive nuisances dangerous to children, including abandoned,
broken or neglected equipment and machinery, hazardous pools, and
excavations,
3. Abandoned or discarded furniture, appliances, play equipment or
other household fixtures or other equipment, stored so as to be visible from
public right-of-way or from adjoining property,
4. Clotheslines in front yard areas or side yard areas of corner lots,
clothes hung to dry on walls, fences, trees, bushes or inside opened garage or
carport areas where such is viewable from the public right-of-way,
5. Abandoned, wrecked or inoperative vehicles of all types, and parts
thereof,
6. Materials or items of any type stored on roof tops when visible from
the public right-of-way,
7. Garbage or trash cans, containers or plastic bags stored in front or
side yards, visible from the public right-of-way, or which cause offensive odors,
Page 745 of 851
Ordinance No. ____ Page 6
8. Gasoline, oil, grease, water or other materials which flow onto the
public right-of-way, or the excessive accumulation of refuse and waste, grease
and oil on any paved surfaces, buildings, structures, walls or fences,
9. Any tree, shrubbery or plant permitted to grow onto or over the
public right-of-way such that pedestrian or vehicular traffic is impaired, or such
that vehicle operators cannot clearly observe safety signs and signals,
10. Dead, decayed, diseased or hazardous trees, hedges, weeds,
shrubs and overgrown vegetation, cultivated or uncultivated, which is likely to
harbor rats, vermin or constitute an unsightly appearance, nuisance, fire hazard,
or that is detrimental to neighboring properties or property values,
11. Refuse and waste matter, which by reason of its location or
character, is unsightly and interferes with the reasonable enjoyment of property
by neighbors, detrimentally affects property values in the surrounding
neighborhood, or which would materially hamper or interfere with t he prevention
or suppression of fire upon the premises. “Refuse and waste matter” means
unused or discarded matter and material having no substantial market value and
which consists of rubbish, garbage, weeds, palm fronds, leaves, grass, refuse,
debris and matter of any kind, including but not limited to rubble, asphalt,
concrete, plaster, tile, rocks, bricks, soil, building materials, crates, cartons,
containers, boxes, machinery or parts thereof, scrap metal and other pieces of
metal (ferrous or nonferrous), furniture or parts thereof, inoperative vehicles or
parts thereof, trimmings, cans, bottles, barrels and unapproved fill dirt or similar
matter.
U. The existence of the following activities within a commercial or industrial
zoning district:
1. Excessive noise levels beyond acceptable limits defined in Chapter
9.24.
2. Noxious odors or toxic fumes.
3. Vibrations or disturbances that disrupt the nearby properties.
4. Unauthorized outdoor storage or disposal of hazardous materials.
5. Excessive light pollution that negatively impacts neighboring
properties.
6. Activities resulting in significant traffic congestion beyond normal
capacity.
7. Any other activities or operations deemed by an enforcement
official as causing a public nuisance.
Page 746 of 851
Ordinance No. ____ Page 7
Upon a finding of any nuisance in this subsection (U), an enforcement official may
regulate or enjoin the hours of operation or the activities of businesses within the city
commercial and industrial districts.
8.20.030 Service requirements.
A. Except where this Chapter prescribes another procedure or the parties
otherwise agree to an alternate means, any notice or document required to be served
under this Chapter must be served by personal service or first -class mail.
B. Service is deemed effective on the date it i s personally delivered or
deposited in the mail.
C. Failure of any person to receive a document properly served under this
Chapter does not affect the validity of the notice or document, service, or any action or
proceeding under this Chapter.
D. The notices and documents that are authorized by this Chapter may be
combined in the discretion of the City.
8.20.040 Procedure for inspections.
A. Whenever it is appropriate to make an inspection to enforce any of the
provisions of this Chapter, or whenever an enforcement official has reasonable cause to
believe that there exists in any building or on any property any public nuisances, the
enforcement official may request entry to such building or property at all reasonable
times to inspect the same and ascertain whether the provisions of this code or
applicable state codes are being obeyed and to make any examinations and surveys as
may be necessary in the performance of their enforcement duties. These may include
the taking of photographs, samples or other physical evidence. All inspections, entries,
examinations and surveys shall be done in a reasonable manner. If such building or
property is occupied, the enforcement official shall first present proper credentials or
identification and request entry. If the building or property is unoccupied, the
enforcement official shall make a reasonable effort to locate the owner or other persons
having charge or control of the building or property and request entry. If entry is refused,
the enforcement official shall have recourse to every remedy provided to secure entry,
including, but not limited to, securing a court ordered inspection warrant pursuant to the
procedures provided in state law, including California Civil Procedure Section 1822.50
et seq., as it may be amended from time to time.
B. When an enforcement official shall have first obtained a proper inspection
warrant or other remedy provided by law to secure entry, no owner or occupant of the
building or property shall fail or neglect, after proper request is m ade as provided in this
section, to promptly permit entry therein by the enforcement official for the purpose of
inspection and examination pursuant to this Chapter.
8.20.050 Notice to Abate.
Page 747 of 851
Ordinance No. ____ Page 8
A. Whenever an enforcement official determines that a nuisance, as
designated in Section 8.20.030, is occurring or exists, he or she may issue a written
order to any responsible party (“Notice to Abate”).
B. A Notice to Abate issued pursuant to this section must contain the
following information:
1. The address of the real property on which the alleged nuisance
condition exists;
2. A description of the alleged nuisance conditions and the code
section(s) prohibiting the alleged nuisance condition;
3. A brief description of the required corrective actions;
4. A reasonable compliance period in which to complete the nuisance
abatement actions (with all required City approvals, permits and inspections,
when applicable);
5. A statement that the City may record a Notice of Violation with the
Riverside County Recorder’s Office against the premises; and
6. The period and manner in which a responsible party may contest
the Notice to Abate as set forth in Section 8.20.070.
C. Whenever the enforcement official intends to abate a public nuisance by
demolition of a building or structure if the responsible party fails to comply, then the City
must comply with the following additional requirements:
1. The Notice to Abate must contain a statement that the City intends
to abate the nuisance with City personnel or contractors by demo lition of a
building or structure if the nuisance conditions are not repaired, rehabilitated,
removed, terminated, or demolished within the compliance deadline set forth in
the Notice to Abate; and
2. The City must serve the Notice to Abate on all secured lienholders
of record with the Riverside County Recorder’s Office.
D. Any Notice to Abate issued under this section must be served in the
manner required under Section 8.20.040.
E. The provisions of this section do not apply in cases involving emergency
or summary abatement under Section 8.20.090.
8.20.060 Notice to Abate appeals and hearings.
A. Any person issued a Notice to Abate has a right to appeal the City’s
nuisance determination in accordance with this section. An appeal must be filed within
Page 748 of 851
Ordinance No. ____ Page 9
fifteen (15) calendar days following the date of service of the Notice to Abate. A written
notice of appeal must contain the following information: (i) the name and contact
information of the appellant, and (ii) the grounds for appeal in sufficient detail to enab le
the hearing officer and City to understand the nature of the controversy. The failure of
any person who has been served with a Notice to Abate to timely and properly file an
appeal is a failure to exhaust administrative remedies.
B. The City Manager may select the hearing officer. The hearing officer must
be selected in a manner that avoids the potential for pecuniary or other bias.
C. If a timely and proper appeal is filed, then the City Clerk must schedule the
hearing no sooner than fifteen (15) calendar days and no later than sixty (60) calendar
days from receipt of the notice of appeal, unless the parties waive such time limits. The
failure to hold the hearing within this time period does not invalidate any action of the
hearing officer. The City Clerk must notify the appellant in writing of the date, time, and
location of the hearing at least ten (10) calendar days before the date of the scheduled
hearing. The notice of hearing must be served in accordance with Section 8.20.040.
D. The City bears the burden of proof to establish a nuisance exists by a
preponderance of evidence. The issuance of a Notice to Abate is prima facie evidence
of the existence of a violation. The scope of the appeal is limited to whether any
nuisance condition identified in the Notice to Abate exists.
E. All parties have the right to present evidence and witnesses. The formal
rules of evidence and discovery do not apply. The rules of privilege are effective to the
same extent that they are now or hereafter may be recognized in c ivil actions. Irrelevant
or unduly repetitious evidence may be excluded. Oral evidence may be taken only on
oath or affirmation. The appellant and respondent may represent themselves or be
represented by anyone of their choice. No party has the right to cr oss-examine any
other party or witness except for good cause shown to the satisfaction of the hearing
officer. The appellant may bring an interpreter to the hearing at his or her sole expense.
The City may, at its discretion, record the hearing by stenogra pher, court reporter, audio
recording, or video recording.
F. The hearing officer’s decision must be in writing, set forth the hearing
officer’s findings of fact and conclusions of law, order the abatement of any confirmed
nuisance conditions within a deadline determined by the hearing officer to be
reasonable, and include a statement that if the nuisance is not abated then it may be
abated by the City. If the hearing officer determines that each and every nuisance
condition described in the Notice to Abate is nonexistent, the Notice to Abate is deemed
cancelled. The hearing officer must render a decision within fifteen (15) calendar days
following the conclusion of the hearing. Failure of the hearing officer to render a
decision within this time period does not invalidate any action of the hearing officer or
automatically grant the appeal. The hearing officer’s decision must be served in
accordance with Section 8.20.040. The hearing officer’s decision is the final
administrative decision of the City regarding the Notice to Abate and is not subject to
appeal to the City Council or any other board or commission of the City. The hearing
Page 749 of 851
Ordinance No. ____ Page 10
officer’s decision is final and effective on the date of service of the decision. The
decision must contain the following statement: “The decision of the hearing officer is
final and binding. Judicial review of this decision is subject to the provisions and time
limits set forth in California Code of Civil Procedure section 1094.6 et seq.” Failure to
seek timely judicial review pursuant to California Code of Civil Procedure section 1094.5
et seq. means all objections to the hearing officer’s decision are waived.
8.20.070 Abatement by City.
If a nuisance is not completely abated within the time prescribed by the Notice to
Abate or, if appealed, in the hearing officer’s decision, the City is authorized to abate a
public nuisance by any other method authorized by law, such abatement may be
performed through inspections and directives to remediate the violation or legal
proceedings designed to secure enforcement of the city’s municipal code or the city
may commence the abatement work itself. The City and its agents are expressly
authorized to enter the premises for such purpose. Except in cases involving an
imminent hazard, entry onto any real property to abate a public nuisance must be
pursuant to a warrant issued by a court of competent jurisdiction.
8.20.080 Summary abatement.
A. If, in the reasonable opinion of the enforcement official, there exists a
condition that constitutes an imminent threat of harm to public health or safety, or
imminent hazard to real or personal property, the enforcement official may cause the
conditions to be summarily abated in accordance with the following procedure. When
determining whether a hazard is sufficiently imminent to warrant emergency abatement,
the enforcement official may consider whether there is insufficient time to follow the
administrative process for non-emergency abatements described in this Chapter.
B. If time permits, the enforcement official may attempt to contact the owner
or occupant of the property to notify the responsible party that the condition must be
immediately abated to eliminate the imminent hazard.
C. If the enforcement official is unable to make contact, or if after contact with
the owner or occupant does not take action within the time prescribed by the
enforcement official, he or she is authorized to take all actions necessary to eliminate or
mitigate the hazardous condition, utilizing the City’s own forces or private cont ractors.
D. Nothing in this Section prevents public safety officers from taking actions
in emergency situations as they may deem necessary or appropriate in order to protect
the public health, safety, and general welfare.
E. As soon as reasonably possible under the circumstances, following any
summary abatement action by the City to abate an immediate hazard, the City must
provide each responsible party with a “Notice of Summary Abatement.” The Notice of
Summary Abatement must be served in accordance with S ection 8.20.040 and contain
the following information:
Page 750 of 851
Ordinance No. ____ Page 11
1. A brief description of the condition and reasons why it constituted
an imminent threat or hazard;
2. A brief description of the law prohibiting or pertaining to the
imminent threat or hazard; and
3. A brief description of the actions the City took to abate the imminent
threat or hazard.
F. The City’s determination that a condition constituted an imminent threat or
hazard may be appealed as set forth in Section 8.20.070.
G. The enforcement official must keep an itemized account of the costs
incurred by the City in abating the public nuisance. The City is entitled to recover all
abatement costs incurred in the abatement of an imminent threat or hazard in
accordance with the procedures set forth in this Chapter.
8.20.090 Recordation of Notice of Violation.
A. If a nuisance is not completely abated as determined by the City within the
time prescribed by the Notice to Abate or, if appealed, in the hearing officer’s decision,
the City may record a Notice of Violation with the Riverside County Recorder’s Office
against the premises.
B. The City must record a Rescission of Notice of Violation with the Riverside
County Recorder’s Office within fourteen (14) business days of its determination that a
violation or a public nuisance has been fully abated or corrected.
C. Upon recordation, the City must serve a copy of the recorded Notice of
Violation or Rescission of Notice of Violation on each person having an ownership
interest in the property in accordance with 8.20.040.
8.20.100 City’s right to recover nuisance abatement costs.
Whenever the City incurs abatement costs in abating a public nuisance or
seeking to abate a code violation or public nuisance, the City is entitled to recover the
abatement costs related to those code enforcement efforts in accordance with the
procedure set forth in this Chapter. The City may commence cost recovery proceedings
at any time.
8.20.110 Scope of recoverable abatement costs.
Recoverable abatement costs include all costs, fees, and expenses, incidental or
otherwise, including attorney’s fees, incurred by the City in investigating and abating a
public nuisance.
8.20.120 Initiation of cost recovery process.
Page 751 of 851
Ordinance No. ____ Page 12
A. To initiate the process for recovery of abatement costs, the City must
serve an itemized report of abatement costs on the responsible party identifying all
abatement costs and demanding payment. The report must provide notice that any
unpaid amounts may become a lien and special assessment against the property
unless the City receives full and timely payment. The right to appeal and appeal
procedures must be specified in the report.
B. The report of abatement costs must be served in accordance with Section
8.20.040. If the code violation or public nuisance is related to real pr operty, then the
report of abatement costs must be served upon each person with a recorded interest in
the subject property.
C. Timely, full payment of the abatement costs must be remitted to the City
within forty-five (45) calendar days following the date of service of the report of
abatement costs.
D. Any person issued a report of abatement costs has a right to appeal the
report of abatement costs in accordance with the procedures set forth in Section
8.20.070 (A).
8.20.130 Report of abatement costs appeal hearing procedures.
A. Report of abatement costs appeal hearings and hearing officer
determinations shall proceed in accordance with the procedures set forth in Section
8.20.070, except as otherwise provided in this Section.
B. The scope of the appeal is limited to the appropriateness of the amount of
the abatement costs, and the hearing officer’s decision may confirm, discharge, or
modify the amount of costs.
C. The hearing officer’s decision must be in writing, set forth the hearing
officer’s findings of fact and conclusions of law, and demand payment of any confirmed
abatement costs within thirty (30) calendar days following the date of service of the
hearing officer’s decision. The hearing officer’s decision is the final administrative
decision of the City regarding the abatement costs.
D. Any confirmed abatement costs must be tendered to the City within 30
calendar days following the date of service of the hearing officer’s decision.
8.20.140 Initiation of collection process.
Upon expiration of forty-five (45) calendar days after the report of abatement
costs, or thirty (30) calendar days after the hearing officer’s decision in the event of an
appeal, if the full amount of the final abatement costs has not been paid, any unpaid
costs may be collected by the City in accordance with Sections 8.20.160 through
8.20.180.
8.20.150 Collection of costs as lien.
Page 752 of 851
Ordinance No. ____ Page 13
A. Pursuant to Government Code section 38773.1, abatement costs may be
levied by the City as a lien against the property on which the nuisance was ab ated. If
the abatement costs have not been paid in full within the time required by this Chapter,
the City may record a lien against the nuisance property for any unpaid amount. Before
recording a lien, the City must serve each person with a recorded inter est in the subject
property with notice of the lien. In addition, any owner of record must be served in
accordance with Government Code section 38773.1.
B. The nuisance abatement lien must be recorded in the office of the County
Recorder of Riverside County, California; and from the date of recording, the nuisance
abatement lien will have the force, effect, and priority of a judgment lien, and will
continue in effect until discharged by the City.
C. The lien must specify the City as the agency for whose benefit the lien is
established, the amount of the lien, the date of any abatement order (including a Notice
to Abate and/or hearing officer’s decision), the street address, legal description, and
assessor’s parcel number of the parcel on which the lien is imposed, and the name and
address of the recorded owner of the parcel.
D. The nuisance abatement lien may be foreclosed by an action brought by
the City for a money judgment. All costs and expenses relating to the processing,
recording and enforcement of the abatement lien, including recording fees, noticing
costs and attorney fees may be added to the amount of the lien and will be secured
thereby.
E. Upon payment or other satisfaction of the abatement lien, a notice of
release of lien must be prepared and recorded by the City forthwith.
8.20.160 Collection of costs as a special assessment.
A. Pursuant to Government Code section 38773.5, abatement costs may be
levied by the City as a special assessment against the property on which the nuisance
was abated. If the abatement costs have not been paid in full within the time required by
this Chapter, the City may levy a special assessment against the real property on which
the violation occurred. The City must serve each person with a recorded interest in the
subject property with notice of the imposition of the special assessment. In addition, any
owner of record must be served in accordance with Government Code section 38773.5.
The notice must specify that the property may be sold after three years by the County
Tax Collector for unpaid delinquent assessments.
B. The notice of special assessment is entitled to recordation with the
Riverside County Recorder’s Office. A copy of the notice of special assessment must be
transmitted to the County Tax Assessor and Tax C ollector, whereupon the Tax
Assessor and Tax Collector must add the amount of the special assessment on the next
regular bill for real estate taxes levied against the property identified in the notice of
special assessment. Thereafter, the special assessme nt will be collected at the same
time and in the same manner as ordinary municipal taxes are collected, and will be
Page 753 of 851
Ordinance No. ____ Page 14
subject to the same penalties and the same procedure and sale in the case of
delinquency as provided by law for ordinary municipal taxes. After recordation, the
special assessment may be foreclosed on as a lien in the manner and means provided
by law.
8.20.170 Enforcement.
A. It is unlawful and declared a public nuisance for any person to violate any
provision of this Chapter. It is unlawful and declared a public nuisance for any person to
violate any hearing officer order or decision made under this Chapter.
B. Any person who violates any provision of this Chapter is guilty of a
misdemeanor punishable by a fine of up to $1,000, or by imprisonment in the County jail
not exceeding six months, or by both, except the City Attorney or enforcement official
may prosecute a violation of this Chapter as an infraction, in his or her discretion.
C. Upon entry of a second or subsequent civil or criminal judgment within a
two-year period against an owner of a property responsible for a public nuisance and
subject to this Chapter, the city is authorized to request that the court order the owner to
pay treble the costs of abatement, except if any such judgmen t relates to an abatement
of conditions pursuant to California Health and Safety Code § 17980.
D. Violation of this Chapter may be punished by issuance of an
administrative citation fine, as set forth in Chapter 8.81 of this Code.
E. In addition to any other remedies set forth in this Code or otherwise
provided by law, the City Attorney is authorized to bring a civil or equitable action, at his
or her discretion, to seek the abatement of any violation of this Chapter, to recover the
City’s abatement costs, or to enforce any provision of this Chapter.
F. The prevailing party in any action, administrative proceeding, or special
proceeding to abate a public nuisance, or in any appeal or other judicial action arising
therefrom, shall be entitled to recover its reasonable attorneys’ fees. Recovery of
attorneys’ fees shall be limited to those actions or proceedings in which the city elects,
at the initiation of that individual action or proceeding, to seek recovery of its own
attorneys’ fees. In no action or proce eding shall an award of attorneys’ fees to a
prevailing party exceed the amount of reasonable attorneys’ fees incurred by the city in
the action or proceeding. In addition to the award of attorneys’ fees pursuant to this
subsection, the prevailing party in any action, administrative proceeding, or special
proceeding to abate a public nuisance, or in any appeal or other judicial action arising
therefrom, shall be entitled to recover its reasonable attorneys’ fees incurred in any
post-judgment proceedings to collect or enforce the judgment.
G. Each and every day a violation is maintained, caused, aided, abetted,
concealed, suffered, or permitted is a separate offense.
Page 754 of 851
Ordinance No. ____ Page 15
H. The regulations, remedies, procedures, and penalties provided by this
Chapter are cumulative to each other and to any other available under City, State, or
federal law.”
SECTION 2. Severability. If any section, subsection, clause or phrase of this
Ordinance or any part thereof is for any reason held to be invalid, unconstitutional, or
unenforceable by the decision of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portion of the Ordinance. The City Council
declares that it would have passed each section, subsection, paragraph, sentence,
clause, or phrase thereof, irrespective of the fact that any one or more section,
subsection, sentence, clause or phrase would be declared invalid, unconstitutional or
unenforceable.
SECTION 3. CEQA. The City Council hereby finds and determines that this
Ordinance is exempt from CEQA pursuant to State CEQA Guidelines section
15061(b)(3) because it can be seen with certainty that the Ordinance would not have
the potential or possibility for causing a significant effect on the environment.
Specifically, the proposed changes to the Municipal Code are primarily technical and
administrative in nature. The Ordinance would update the public nuisance
determination, appeal, abatement, and cost recovery provisions. No construction is
proposed and the amendments do not consti tute any project approvals. In reviewing the
Ordinance the City Council has exercised its independent judgment and has reviewed
and considered the Ordinance in light of all testimony received, both oral and written.
Therefore, based upon the entire administrative record, the City Council hereby
determines that no further environmental review is required for the Ordinance.
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 effective thirty (30) days after its adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Palm Desert, California, on the ____ day of ___________, 2023 by the
following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________
KATHLEEN KELLY, Mayor
Page 755 of 851
Ordinance No. ____ Page 16
ATTEST:
_____________________________
Anthony Mejia, City Clerk
City of Palm Desert, California
APPROVED AS TO FORM:
____________________________
City Attorney
Page 756 of 851
Page 1 of 3
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Richard D. Cannone, AICP, Development Services Director
REQUEST: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING
CHAPTER 5.04 REGARDING MODIFICATION, SUSPENSION, OR
REVOCATION OF BUSINESS LICENSES.
RECOMMENDATION:
1. Approve staff recommendation that the City Manager be authorized to suspend a business
license and unless appealed within seven (7) calendar days upon receiving the suspension
notice, the suspension would automatically convert to a revocation.
2. Provide direction to staff on whether the appeal body for a business license suspension
should remain with City Council or be delegated to a hearing examiner.
BACKGROUND/ANALYSIS:
City Council previously provided direction to staff to update the business license suspension
procedures in Chapter 5.04, to grant the City Manager the ability to suspend a business license
without having to wait for city council authorization. The suspension and revocation procedures
of that chapter were originally adopted in 1974 and were last updated in 1983 to align with best
practices at the time.
As part of this update, staff would like to further streamline the revocation procedures consistent
with current best practices. Staff requests City Council feedback/direction on the following:
1. Revocation Authority – Currently, the written notice of a business license
suspension also serves as a notice for the revocation hearing with City Council. T he
revocation hearing must be placed on a City Council agenda at least 10 days after the
notice but no longer than 30 days after the notice. Within the past 6-months staff has
brought forward two business license suspensions/revocations: the Sweet Spot and
AZ Spa. The revocation hearing for Sweet Spot was held and their license was
revoked and the revocation hearing for AZ Spa was cancelled due to the owner
canceling their business license. The preparation for both revocations hearings
involves a substantial amount of staff time.
Table 1 below summarizes the suspension and revocation authority for municipalities
within the Coachella Valley:
Page 757 of 851
City of Palm Desert
City Council Direction – Business License Suspension/Revocation Code Update
Page 2 of 3
Table 1: Revocation/Suspension Authority
Municipality Suspension Revocation
Coachella None; straight to revocation Finance Director
Indio None; straight to revocation Finance Director
La Qunita None; straight to revocation City Manager or other city
officer or employee charged
with the administration of the
chapter
Indian Wells None; straight to revocation Planning Director
Rancho Mirage None; straight to revocation Public Works Director
Cathedral City None; straight to revocation Finance Director
Palm Springs None; straight to revocation City Manager, or authorized
designee charged with the
administration of the business
license tax and regulatory
program.
Staff Recommendation:
To streamline revocation procedures, staff recommends that the City Manager be
authorized to suspend a business license and unless appealed within seven (7)
calendar days upon receiving the suspension notice, the suspension automatically
convert to a revocation.
2. Revocation Appeal Body - Table 2 below summaries appeal body for business
license revocations for municipalities within the Coachella Valley:
Table 2: Appeal Body
Municipality Appeal Body
Coachella City Council
Indio City Council
La Qunita City Manager
Indian Wells Planning Commission
Rancho Mirage City Council
Cathedral City City Council
Palm Springs Administrative Appeals Board
Requested Direction:
Does City Council want to continue to be the appeal body for business license
revocations as proposed above or should that authority be delegate d to a hearing
examiner.
Staff Analysis/Considerations:
Currently, none of the cities within the Coachella Valley use a hearing examiner for
business license appeals. However, Palm Springs uses an Administrative Appeals
Page 758 of 851
City of Palm Desert
City Council Direction – Business License Suspension/Revocation Code Update
Page 3 of 3
Board that functions like a hearing examiner. This board hears appeals of nuisance
abatement orders, code enforcement orders, enforcement of any zoning or land use
regulation, animal control orders, and similar matters. The board does not have
authority to hear appeals of any action taken by the city council or any other board or
commission of the city.
Palm Desert currently uses a hearing examiner to conduct administrative citation
hearings for health and safety violations. In recent years, municipalities have trended
towards establishing a hearing examiner system for code enforcement and licensing
actions, and land use permits, as the permit process has become increasingly
complicated from a legal and procedural standpoint. The basic purpose of having a
hearing examiner conduct these hearings is to have a professionally trained individual
making objective decisions that are supported by an adequate record allowing the
governing body to focus on policy-making decisions.
FINANCIAL IMPACT:
There is no fiscal impact associated with this item.
Page 759 of 851
Page 760 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 761 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 762 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 763 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 764 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 765 of 851
Page 766 of 851
Page 1 of 1
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Anthony J. Mejia, City Clerk
REQUEST: JOINT CITY COUNCIL AND HOUSING AUTHORITY PUBLIC HEARING
TO CONSIDER REMOVAL OF BLAIR ARMSTRONG FROM THE PALM
DESERT HOUSING COMMISSION IN ACCORDANCE WITH HEALTH
AND SAFETY CODE SECTION 34282
RECOMMENDATION:
1. Pursuant to Health and Safety Code Section 34282, conduct a hearing on the removal of
Blair Armstrong from the Palm Desert Housing Commission.
2. Find Blair Armstrong to be in neglect of duty of his obligations as a Housing Commissioner
and remove him from the Palm Desert Housing Commission, effective immediately.
BACKGROUND/ANALYSIS:
On June 23, 2022, the City Council/Housing Authority appointed Blair Armstrong to the Housing
Commission for a term ending June 20, 2025. Since that time, Mr. Armstrong accrued six (6)
unexcused absences in the past twelve (12) months. Over the past several months, City staff
has attempted to reach out to Mr. Armstrong via emails, voicemails, and letters with no response.
The Palm Desert Municipal Code (PDMC) includes a provision for automatic resignation of a
member due to excessive unexcused absences ; however, Health and Safety Code Section
34282 specifically pertains to the removal of a Housing Commissioner and supersedes the
PDMC.
Pursuant to Section 34282, a Housing Commissioner may be removed for reasons of
inefficiency, neglect of duty, or misconduct in office. However, such action requires City
Council/Housing Authority action at a hearing. Commissioner Armstrong must be informed of
the charges at least 10 days prior to the hearing, and have the opportunity to be heard at the
hearing.
As such, it is necessary for the City Council/Housing Authority to make one of the findings above
in order to proceed with his removal from the Housing Commission. Staff recommends that the
City Council/Housing Authority find that Commissioner Armstrong’s pattern of absence from
Housing Commission meetings and lack of communication with staff constitutes “neglect of duty”
of his office, and that the City Council/Housing Authority remove Commissioner Armstrong from
the Housing Commission, effective immediately.
FINANCIAL IMPACT:
There is no fiscal impact.
ATTACHMENTS:
1. Notice of Public Hearing – Certified Letter, dated July 10, 2023
Page 767 of 851
Page 768 of 851
C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
INFO@CITYOFPALMDESERT.ORG
July 10, 2023
Blair Armstrong SENT VIA EMAIL
& CERTIFIED MAIL
Palm Desert, CA 92260
Mr. Armstrong:
Enclosed you will find a notice of public hearing for consideration of removing you from the
Housing Commission due to accruing six (6) unexcused absences in the past twelve (12)
months. City staff has attempted to contact you on several occasions via email, letters, and
voicemails, urging you to contact us so we may better understand the reason for your absences
and work with you to reach a resolution.
I want to ensure that you are aware that State law prohibits the Housing Authority from
removing you from office without your voluntary resignation or conducting a public hearing.
We have provided you with multiple opportunities to resign voluntarily, and this letter serves
as notification of the charges against you.
The City Council holds its community volunteers in high regard, and it is my sincere desire to
resolve this matter without the need for a public hearing. However, we cannot move forward
with filling your position on the Housing Commission without the public hearing or your
cooperation. To that end, I am enclosing a voluntary resignation form for your consideration,
or you may simply call or send an email to that effect. I hope you will contact us before
August 17, 2023, at which point this matter will be listed on the Housing Authority agenda.
Phone: 760-776-6304
Email: amejia@palmdesert.gov
Respectfully,
Anthony J. Mejia, City Clerk
City of Palm Desert
Page 769 of 851
C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
INFO@CITYOFPALMDESERT.ORG
July 10, 2023
Blair Armstrong SENT VIA EMAIL
& CERTIFIED MAIL
Palm Desert, CA 92260
Re: NOTICE OF PUBLIC HEARING – CONSIDERATION OF REMOVING BLAIR
ARMSTRONG FROM THE PALM DESERT HOUSING COMMISSION
Mr. Armstrong:
NOTICE IS HEREBY GIVEN that a Public Hearing of the Palm Desert Housing Authority
will be held on August 24, 2023, at 4:00 p.m. in the Council Chamber, City Hall, located at
73510 Fred Waring Drive, Palm Desert, California, relative to the following:
Consideration of Removing Blair Armstrong from the Palm Desert Housing Commission
Charges: Due to six (6) unexcused absences in the past twelve (12) months, find Blair
Armstrong to be in neglect of duty and remove him from the Palm Desert Housing Commission,
effective immediately.
Anthony J. Mejia, City Clerk
City of Palm Desert
Page 770 of 851
Page 771 of 851
Page 772 of 851
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Jessica Gonzales, Housing Manager
REQUEST: RESOLUTION: APPROVE A PROPOSED PLAN FOR BOND ISSUANCE
BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY FOR THE CROSSINGS AT PALM DESERT APARTMENT
PROJECT
RECOMMENDATION:
1. Conduct the public hearing under the requirements of Tax and Equity Fiscal Responsibility
Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”) in
connection with the proposed issuance in one or more series of revenue bonds by the
California Statewide Communities Development Authority (“CSCDA”), a joint exe rcise of
powers authority and public entity of the State of California, in an amount not to exceed Sixty
Million Dollars $60,000,000.00 (the “Bonds”), to finance the acquisition, construction and
development of the 176-unit Crossings at Palm Desert Apartments, a multifamily rental
housing project located at located at the southeast corner of Dick Kelly Drive & Gateway
Drive, Palm Desert, California (the “Project”) and receive public comments.
2. Adopt Resolution in the form attached hereto approving the issuance of the Bonds by CSCDA
for the benefit of A0357 Palm Desert, L.P., a California Limited Partnership (the "Borrower")
a partnership of which Urban Housing Communities, LLC (the "Developer") or a related
person to the Developer is the general partner, to provide for the financing of the Project.
Such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code
and California Government Code Sections 6500 et seq..
BACKGROUND/ANALYSIS:
On July 14, 2022, the City Council unanimously adopted a resolution approving the development
of a 176-unit apartment project, known as “Crossings at Palm Desert Apartments”, located at
the southeast corner of Dick Kelly Drive & Gateway Drive, Palm Desert. The Borrower is
requesting bond financing from the CSCDA in an aggregate principal amount not to exceed Sixty
Million Dollars ($60,000,000.00) of tax-exempt revenue bonds to construct the project. CSCDA
was formed to provide local governments with tools for the timely financing of public benefi t
projects.
As part of the process to issue bonds, the local agency is required to hold a public hearing and
adopt a resolution supportive of the bond issuance. The Bonds to be issued by the CSCDA for
the Project will be the sole responsibility of the Bo rrower, and the City will have no financial,
legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for
the financing of the Project. All financing documents with respect to the issuance of the Bonds
will contain clear disclaimers that the Bonds are not the obligations of the City and will be paid
solely from funds provided by the Borrower.
Page 773 of 851
City of Palm Desert
Crossings at Palm Desert Apartment Project - TEFRA Hearing, Bond Issuance
Page 2 of 2
On July 13, 2023, the City Council conducted a TEFRA hearing for this same purpose. When
the required public hearing notice was published for the previous TEFRA hearing, the name of
the limited partnership was listed incorrectly. This request is to satisfy the required TEFRA public
hearing referencing the correct limited partnership, A0358 Monterey, L.P.
Affordable housing development is a priority of the City Council, and therefore staff recommends
that the City Council take public testimony during the public hearing and adopt a resolution
supporting the Borrower’s request.
Strategic Plan:
One of the priorities of the City’s Envision Palm Desert Strategic Plan, as part of Land, Use,
Housing and Open Space, is to facilitate development of high -quality housing for people of all
income levels. This request meets that objective by diversifying the City’s housing stock for
lower income households.
FINANCIAL IMPACT:
There is no fiscal impact to the City resulting from the approval of the Borrower’s request.
Adoption of the resolution would allow CSCDA to issue housing bonds for the financing of the
construction of 176-unit Crossings at Palm Desert Apartment project.
ATTACHMENTS:
1. City Council Resolution
2. City Council Public Hearing Notice
3. Indemnity Agreement
Page 774 of 851
RESOLUTION NO. 2023 -__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT
APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY OF EXEMPT FACILITY BONDS
FOR THE CROSSINGS AT PALM DESERT APARTMENTS
WHEREAS, the California Statewide Communities Development Authority (the "Authority")
is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and
the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1,
1988 (the "Agreement"), among certain local agencies throughout the State of California, including
the City of Palm Desert (the "City"), to issue revenue bonds in accordance with Chapter 7 of Part 5
of Division 31 of the California Health and Safety Code for the purpose of financing multifamily
rental housing projects; and
WHEREAS, A0358 Monterey, L.P., a California limited partnership has requested that the
Authority adopt a plan of financing providing for the issuance of exempt facility bonds for a
qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of
1986 (the "Code") in one or more series issued from time to time, including bonds issued to refund
such exempt facility bonds in one or more series from time to time, and at no time to exceed
$60,000,000 in outstanding aggregate principal amount (the "Bonds"), to finance or refinance
the acquisition, construction and development of a multifamily rental housing project located at
the southeast corner of Dick Kelly Drive & Gateway Drive, Palm Desert, California (the
"Project"); and
WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private activity
bonds are required to be approved by the "applicable elected representative" of the governmental
units on whose behalf such bonds are expected to be issued and by a governmental unit having
jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a
public hearing held following reasonable public notice; and
WHEREAS, the members of this City Council (this "City Council") are the applicable
elected representatives of the City; and
WHEREAS, there has been published, at least 7 days prior to the date hereof, in a
newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds
would be held on a date specified in such notice; and
WHEREAS, such public hearing was conducted on such date, at which time an opportunity
was provided to interested parties to present arguments both for and against the issuance of the
Bonds; and
WHEREAS, the Authority is also requesting that the City Council approve the issuance
of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the
Bonds which financed the Project (the "Refunding Bonds"), but only in such cases where federal
tax laws would not require additional consideration or approval by the City Council; and
WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of
the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement;
Page 775 of 851
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT AS
FOLLOWS:
SECTION 1. The above recitals are true and correct.
SECTION 2. The City Council hereby approves the issuance of the Bonds and the
Refunding Bonds by the Authority. It is the purpose and intent of the City Council that this
resolution constitute approval of the Bonds for the purposes of (a) Section 147(f) of the Code and
(b) Section 9 of the Agreement.
SECTION 3. The issuance of the Bonds shall be subject to the approval of the Authority
of all financing documents relating thereto to which the Authority is a party. The City shall have no
responsibility or liability whatsoever with respect to the Bonds.
SECTION 4. Neither the City nor its staff have reviewed or considered the financial
feasibility of the Project or the expected financing or operation of the Project with regard to any
State of California statutory requirements. The adoption of this Resolution shall not obligate the
City or any department thereof to (i) provide any financing to acquire or construct the Project or any
refinancing of the Project; (ii) approve any application or request for or take any other action in
connection with any planning approval, permit or other action necessary for the acquisition,
construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or
advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the
Authority or its membership therein.
SECTION 5. The officers of the City are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents that they
deem necessary or advisable in order to carry out, give effect to and comply with the terms and
intent of this resolution and the financing approved hereby.
SECTION 6. This resolution shall take effect immediately upon its passage.
ADOPTED ON August 24, 2023
KATHLEEN KELLY
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
Page 776 of 851
NOTICE OF PUBLIC HEARING
REGARDING ISSUANCE OF
EXEMPT FACILITY BONDS FOR
THE CROSSINGS AT PALM DESERT APARTMENTS
NOTICE IS HEREBY GIVEN that, at 4:00 p.m., or as soon thereafter as the matter can
be heard, on Thursday, August 24, 2023, at the Civic Center Council Chamber, 73510 Fred
Waring Drive, Palm Desert, California, the City Council of the City of Palm Desert (the "City")
will conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of
1986 (the "Code"), at which it will hear and consider information concerning a proposed plan of
financing providing for the issuance by the California Statewide Communities Development
Authority of exempt facility bonds for a qualified residential rental project pursuant to Section
142(a)(7) of the Code in one or more series issued from time to time, including bonds issued to
refund such exempt facility bonds in one or more series from time to time, and at no time to
exceed $60,000,000 in outstanding aggregate principal amount, to finance or refinance the
acquisition, construction and development of a multifamily rental housing project located at the
southeast corner of Dick Kelly Drive & Gateway Drive, Palm Desert, California. The facilities are
to be owned by A0358 Monterey, L.P., a California limited partnership (the "Project").
Those wishing to comment on the proposed financing or refinancing and the nature and
location of the Project may either appear in person at the public hearing or submit written
comments, which must be received by 12:00 p.m. on the day of the hearing. Written comments
should be sent to City of Palm Desert at 73510 Fred Waring Drive, Palm Desert, California
92260-2578 Attention: City Clerk or emailed to
CouncilMeetingComments@cityofpalmdesert.org.
CITY COUNCIL FOR THE CITY OF PALM DESERT
Anthony J. Mejia, MMC
City Clerk
Page 777 of 851
Page 778 of 851
INDEMNITY AGREEMENT
THIS INDEMNITY AGREEMENT (this “Agreement”) is entered into as of July ____,
2023, by and between URBAN HOUSING COMMUNITIES, LLC, a California limited liability
company (“UHC”), and the CITY OF PALM DESERT, a California municipal corporation (the
“City”), with reference to the following facts and circumstances:
R E C I T A L S
WHEREAS, A0357 Palm Desert, L.P., a California Limited Partnership, a partnership of
which UHC or a related person to UHC is the general partner, has requested that the California
Statewide Communities Development Authority (the “CSCDA”) adopt a plan of financing
providing for the issuance of exempt facility bonds for a qualified residential rental project
pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more
series issued from time to time, including bonds issued to refund such exempt facility bonds in
one or more series from time to time, and at no time to exceed Sixty Million Dollars
($60,000,000.00) in aggregate principal amount (the “Bonds”), to finance or refinance the
acquisition, construction and development of a multifamily rental housing project located at the
southeast corner of Dick Kelly Drive and Gateway Drive, Palm Desert, California; and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by
CSCDA must be approved by the City because the Project is located within the territorial limits
of the City; and
WHEREAS, the City Council of the City (the “City Council”) is the elected legislative
body of the City and is one of the “applicable elected representatives” required to approve the
issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the CSCDA has requested that the City Council approve the issuance of the
Bonds by the CSCDA in order to satisfy the public approval requirement of Section 147(f) of the
Code and the requirements of Section 9 of the Amended and Restated Joint Exercise of Powers
Agreement relating to the CSCDA, dated as of June 1, 1988 (the “Agreement”), amon g certain
local agencies, including the City; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following
notice duly given, held a public hearing regarding the issuance of the Bonds, and on July 13,
2023 adopted Resolution No. ___ of the City approving the issuance of the Bonds.
NOW, THEREFORE, in consideration of the foregoing recitals, and the City’s adoption
of Resolution No. ____, UHC and the City agree as follows:
1. Indemnification. From and after the execution of this Agreement, UHC hereby
agrees to indemnify, defend (with counsel reasonably acceptable to City) and hold harmless the
City and its officers, employees and council members (collectively, the “City Parties”) from and
against all legal actions or proceedings, and any other claims, liabilities, losses, judgments,
damages, awards, costs and expenses (including reasonable attorneys’ fees and court costs
actually incurred by the City Parties) arising directly or indirectly out of or related to the City’s
Page 779 of 851
-2-
P6401-0001\2828123v2.doc
approval of the issuance of the Bonds as provided in Resolution No. ___ of the City and adopted
on July 13, 2023.
2. Governing Law; Interpretation/Construction of Agreement. This Agreement shall
be construed in accordance with the laws of the State of California in effect at the time of the
execution of this Agreement. This Agreement shall be construed according to its fair meaning as
if prepared by both parties hereto.
3. Modifications; Waivers. No modifications of this Agreement, shall be effective
unless it is in writing and is duly authorized and executed by the parties hereto, and similarly no
waiver by either party of any provision of this Agreement shall be effective unless it is in writing
and is duly authorized and executed by the waiving party.
4. Severability. If any term, provision, condition or covenant of this Agreement or
the application thereof to any party or circumstance shall, to any extent, be held invalid or
unenforceable, the remainder of this instrument, or the application of such term, provision,
condition or covenant to persons or circumstances other than those as to whom or which it is
held invalid or unenforceable, shall not be affected thereby, and each term and provision of this
Agreement shall be valid and enforceable to the fullest extent permitted by law.
5. Merger of Prior Agreements and Understandings. This Agreement contains the
entire understanding between the parties related to the matters covered by this Agreement and all
prior or contemporaneous agreements, understandings, represent ations and statements, whether
oral or written, are merged herein and shall be of no further force or effect.
6. Counterparts; Electronic Delivery. This Agreement may be executed in any
number of counterparts which, when taken together, shall constitute a fully-executed original.
[Remainder of this page intentionally left blank]
[Signatures appear on next page]
Page 780 of 851
-3-
P6401-0001\2828123v2.doc
IN WITNESS WHEREOF, UHC and the City have executed this Agreement as of the
date first set forth above.
URBAN HOUSING COMMUNITIES, LLC,
a California limited liability company
By:
Name:
Title:
By:
Name:
Title:
CITY OF PALM DESERT,
a California municipal corporation
By:
Name: Kathleen Kelly
Title: Mayor
ATTEST:
Anthony J. Mejia, City Clerk
Page 781 of 851
Page 782 of 851
Crossings at
Palm Desert
Public Hearing
August 24, 2023
Page 783 of 851
Crossings at Palm
Desert Apartments
A multifamily rental housing community
located at located at the southeast corner of
Dick Kelly Drive & Gateway Drive, Palm
Desert
The proposed 100% affordable housing
development will consist of 176 units varying
from one-, two-and three-bedroom units.
Staff recommends that the City Council take
public testimony and adopt the resolution
supporting the Borrower’s request.
Page 784 of 851
PROPOSED PLAN
FOR BOND ISSUANCE
•The California Statewide Communities Development Authority (“CSCDA”) is
authorized to issue revenue bonds for the purpose of financing multifamily rental
housing projects;
•The Borrower, a partnership of the Developer has requested that CSCDA adopt a
plan of financing providing for the issuance of multi-family housing revenue bonds.
•The proposed plan includes the issuance of tax-exempt revenue bonds not to
exceed Sixty Million Dollars ($60,000,000.00) for the purpose of constructing the
project.
•The proposed plan requires the local jurisdiction to hold a public hearing and adopt
a resolution supportive of the bond issuance to meet the requirements of the Tax
and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of
1986 (“Code”).
•The City has no other obligations beyond satisfying the requirements of TEFRA and
the Code.
•The bonds to be issued by the CSCDA for the financing of this community will be
the sole responsibility of the Borrower, including the repayment.
•The City has supported and satisfied the requirements of TEFRA and the Code for
other developments including The Sands, Vitalia, and Gerald Ford Apartments.
Page 785 of 851
Page 786 of 851
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Nick Melloni, Principal Planner
REQUEST: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1
OF PARCEL MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW
CORNER OF HWY 111 AND FRED WARING DR. FROM RESORT
COMMERCIAL CENTER (PC-4) TO DISTRICT COMMERCIAL CENTER
(PC-2) – CEQA FINDING
RECOMMENDATION:
Waive full reading and introduce Ordinance entitled “An Ordinance of the City of Palm Desert,
California, adopting a Notice of Exemption in accordance with the California Environmental
Quality Act (CEQA) and approving a change of zone from PC-4 to PC-2 for the property located
on Parcel 1 of Parcel Map No. 36614 at 72221 Highway 111 (Assessor’s Parcel Number 640 -
020-054)”
BACKGROUND/ANALYSIS:
The project is a request by 72221 Highway 111 LLC (Applicant) to change the zoning designation
of a parcel located at 72221 Highway 111 (Assessor’s Parcel Number 640-020-054) from Resort
Commercial Center (PC-4) to District Commercial Center (PC-2). This is a 1.34-acre parcel
developed with an existing 16,008-square-foot multi-tenant commercial building and associated
parking lot, which is shared with neighboring parcels in the same shopping center.
Strategic Plan:
The project implements Goal 5 of Land Use, Housing & Open Space priorities by making the
zoning of the site more consistent with the General Plan Land Use element.
Appointed Body Recommendation:
At its July 18, 2023, regular meeting, the Planning Commission adopted Resolution No. 2837
(Attachment #2) recommending that the City Council adopting a notice of exemption in
accordance with CEQA and approving the Change of zone request.
Project Description:
The proposed Change of Zone will not result in non-conformities for the existing land uses within
the center, and will not result in non -conformities to development standards for the parcel. The
requested zoning designation is consistent with the Ge neral Plan Land Use Designation for the
site, Suburban Retail Center. Additionally, the change is consistent with requirements of Senate
Bill 330 regarding “downzoning”, or reducing density levels, for housing. A detailed analysis of
this is provided in the Planning Commission Staff Report Dated July 18, 2023, provided as
Attachment #3 of this report.
Public Notification:
Page 787 of 851
City of Palm Desert
CZ23-0001 – Change of Zone 72221 Highway 111
Page 2 of 2
Public noticing was conducted for the August 24, 2023, City Council meeting per the requirements
of PDMC Section 25.60.060 and Government Code Sections 65090 to 65094. A public hearing
notice was published a minimum of ten (10) days before the hearing date in The Desert Sun
newspaper. Notices were mailed to all property owners within 300 feet of the project site. No
comments have been received as of the date of this report.
Environment Review:
Pursuant to CEQA and the State CEQA Guidelines, the project was found to be exempt from
further environmental review per Section 15061(b)(3) (General Rule exemption). The project
enacts the General Plan in accordance with the Zoning Ordinance by changing t he designation
of the site to PC-2. The project site is an existing approved commercial center. No significant
impacts on the environment are anticipated.
FINANCIAL IMPACT:
There is no fiscal impact associated with the recommended action.
ATTACHMENTS:
1. Ordinance No. ________
2. Planning Commission Resolution No. 2837
3. Planning Commission Staff Report – July 18, 2023
4. Draft Planning Commission Minutes – July 18, 2023
5. Notice of Exemption
6. Reference Site Plan
7. Public Hearing Notice
8. Council PowerPoint
Page 788 of 851
ORDINANCE NO. ____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION
PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) AND APPROVING A CHANGE OF ZONE FROM PC-4 TO PC-2
FOR THE PROPERTY LOCATED ON PARCEL 1 OF PARCEL MAP NO
36614 AT 72221 HIGHW AY 111 (ASSESSOR’S PARCEL NUMBER 640-
020-054)
WHEREAS, 72221 Highway 111, LLC (“Applicant”), submitted a request to change
the zoning designation of a 1.34-acre parcel located at 72221 Highway 111, legally
described as Parcel 1 of PM 36614 (Assessor’s Parcel Number 640-020-054; Case No.
CZ230001) from Resort Planned Commercial (PC-4) to District Planned Commercial (PC-
2) (“Project”); and
WHEREAS, the Project site has a land use designation of Suburban Retail Center
in the Palm Desert General Plan adopted on November 10, 2016, and a zoning
designation of Resort Commercial Center (PC-4); and
WHEREAS, the Project site has been developed with existing improvements,
which generally consist of a multi-tenant commercial building, related parking lot, and
landscaping; and
WHEREAS, the Project site is adequately served by existing public utilities and
services; and
WHEREAS, under Section 21067 of the Public Resources Code, Section 15367
of the California Environmental Quality Act (CEQA) Guidelines (Cal. Code Regs., tit. 14,
§ 15000 et seq.) and the City of Palm Desert’s (“City’s”) local CEQA Guidelines, the City
is the Lead Agency for the Project; and
WHEREAS, pursuant to Palm Desert Municipal Code (PDMC) Chapter 25.02
establishes that the Suburban Retail Center General Plan land use designation is
implemented by the District Commercial Center (PC-2) zoning designation, and is
therefore, consistent with the 2016 Palm Desert General Plan; and
WHEREAS, the proposed change of zone will not render the existing
improvements on the site or land uses nonconforming with any applicable Palm Desert
Zoning Ordinance standards; and
WHEREAS, the Project has complied with the requirements of the "City of Palm
Desert Procedure for Implementation of CEQA” Resolution No. 2019-41, in that the
Director of Development Services has determined that the Project will not have a
foreseeable significant impact on the environment and that the Project is eligible for an
exemption pursuant to Section 15061(b)(3) of the CEQA Guidelines; therefore, no further
environmental review is necessary at this time; and
Page 789 of 851
ORDINANCE NO. ____
2
WHEREAS, on July 18, 2023, the Planning Commission of the City of Palm Desert,
California, held a duly noticed public hearing to consider Applicant’s request for approval
of the above-noted Project request and did adopt Resolution No. 2837, recommending
approval to the Palm Desert City Council; and
WHEREAS, on August 24, 2023, the City Council of the City of Palm Desert,
California held a duly noticed public hearing to consider the Applicant’s request for
approval of the above-noted Project request; and
WHEREAS, at said public hearing, upon hearing and considering the testimony
and arguments of all interested persons desiring to be heard, the City Council did find the
following facts and reasons exist to justify approval of said request:
WHEREAS, all other legal prerequisites to the presentation of this Ordinance have
occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA DOES ORDAIN AS FOLLOWS:
SECTION 1. Adoption of Recitals. The City Council hereby finds that the foregoing
recitals are true and correct and are incorporated herein as substantive findings of this
Ordinance.
SECTION 2. Change of Zone. The change of zone is identified in “Exhibit A”.
SECTION 3. General Plan Consistency. The City Council hereby finds that the
proposed zone change to PC-2 is consistent with the City of Palm Desert General Plan.
SECTION 4. CEQA. The application has complied with the requirements of the
“City of Palm Desert Procedure for Implementation of CEQA” Resolution No. 2019-41, in
that the Planning Commission finds that the Project is an exemption from CEQA pursuant
to Section 15061(b)(3) of the CEQA Guidelines as the Project is a determination on
whether a use that is not listed shall be deemed a conditional use. No direct, foreseeable
impact on the environment can be identified at this time.
SECTION 5. Severability. If any section, subsection, clause or phrase of this
Ordinance, or any part thereof, is for any reason held to be invalid , unconstitutional, or
unenforceable by the decision of any court of competent jurisdiction, such decision shall
not affect the validity of the remaining portion of the Ordinance. The City Council declares
that it would have passed each section, subsection, paragraph, sentence, clause, or
phrase thereof, irrespective of the fact that any one or more section, subsection,
sentence, clause or phrase would be declared invalid, unconstitutional or unenforceable.
SECTION 6. 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 effective thirty (30) days after its adoption.
Page 790 of 851
ORDINANCE NO. ____
3
ADOPTED ON September 14, 2023.
KATHLEEN KELLY
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular
meeting of the City Council of the City of Palm Desert on August 24, 2023, and adopted
at a regular meeting of the City Council held on September 14, 2023, by the following
vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on ____________________________.
ANTHONY J. MEJIA
CITY CLERK
Page 791 of 851
ORDINANCE NO. ____
4
Page 792 of 851
PLANNING COMMISSION RESOLUTION NO. 2837
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PALM
DESERT, CALIFORNIA, ADOPTING A NOTICE OF EXEMPTION
PURSUANT TO THE STATE OF CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA) AND RECOMMENDING THAT THE CITY COUNCIL APPROVE
A CHANGE OF ZONE FROM PC-4 TO PC-2 FOR THE PROPERTY
LOCATED ON PARCEL 1 OF PARCEL MAP NO 36614 AT 72221 HIGHWAY
111 (ASSESSOR’S PARCEL NUMBER 640-020-054)
CASE NO. CZ23-0001
WHEREAS, 72221 Highway 111 (“Applicant”), submitted a request to change the
zoning designation of a 1.34-acre parcel located at 72221 Highway 111, legally described as
Parcel 1 of PM 36614 from Resort Planned Commercial (PC-4) to District Planned
Commercial (PC-2); and
WHEREAS, the Project site has a land use designation of Suburban Retail Center in
the Palm Desert General Plan adopted on November 10, 2016, and a zoning designation of
Resort Commercial Center (PC-4); and
WHEREAS, the Project site has been developed with existing improvements, which
generally consist of a multi-tenant commercial building and related parking lot and
landscaping; and
WHEREAS, the Project site is adequately served by existing public utilities and
services; and
WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the
State California Environmental Quality Act (CEQA) Guidelines (Cal. Code Regs., tit. 14, §
15000 et seq.) and the City of Palm Desert’s (“City’s”) Local CEQA Guidelines, the City is the
lead agency for the Project; and
WHEREAS, under Palm Desert Municipal Code (PDMC) Chapter 25.02 establishes
that the Suburban Retail Center General Plan land use designation is implemented by the
District Commercial Center (PC-2) zoning designation; therefore, consistent with the 2016
Palm Desert General Plan; and
WHEREAS, the proposed Change of Zone will render the existing improvements on
the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards; and
WHEREAS, under Section 21067 of the Public Resources Code, Section 15367 of the
State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), and the City of Palm
Desert’s (“City’s”) Local CEQA Guidelines, the City is the lead agency for the Project; and
WHEREAS, the Project has complied with the requirements of the "City of Palm Desert
Procedure for Implementation of CEQA” Resolution No. 2019-41, in that the Director of
Development Services has determined that the Project will not have a foreseeable significant
impact on the environment and that the Project is eligible for an exemption exempt Section
15061(b)(3) General Rule of the CEQA Guidelines; therefore, no further environmental review
is necessary at this time; and
Page 793 of 851
PLANNING COMMISSION RESOLUTION NO. 2837
2
WHEREAS, the Planning Commission of the City of Palm Desert, California, did on
the 18th day of July 2023, hold a duly noticed public hearing to consider the request by the
Applicant for approval of the above-noted Project request; and
WHEREAS, at the said public hearing, upon hearing and considering all testimony and
arguments, if any, of all interested persons desiring to be heard, the Planning Commission
did find the following facts and reasons, which are outlined in the staff report, exist to justify
approval of said request:
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, California, as follows:
SECTION 1. Recitals. The Planning Commission hereby finds that the foregoing
recitals are true and correct and are incorporated herein as substantive findings of this
Resolution.
SECTION 2. General Plan Consistency. The Planning Commission hereby finds that the
proposed zone change to PC-2 is consistent with the City of Palm Desert General Plan.
SECTION 3. CEQA. The application has complied with the requirements of the “City
of Palm Desert Procedure for Implementation of CEQA” Resolution No. 2019-41, in that the
Planning Commission finds that the Project is an exemption from CEQA per Section
15061(b)(3) of the CEQA guidelines as the Project is a determination on whether a use that
is not listed shall be deemed a conditional use. No direct, foreseeable impact on the
environment can be identified at this time.
SECTION 4. Project Recommendation. The Planning Commission hereby
recommends to the Palm Desert City Council approval of Case No. CZ23-0001 to change the
zoning designation of Parcel 1 of PM 36614 to District Commercial Center (PC-2) as depicted
in Exhibit A, attached hereto; and
SECTION 5. Custodian of Records. The documents and materials that constitute the
record of proceedings on which these findings are based are located at the City’s office at
73510 Fred Waring Drive, Palm Desert, CA 92260. Richard D. Cannone, AICP, the Secretary
to the Palm Desert Planning Commission, is the custodian of the record of proceedings.
SECTION 6. Execution of Resolution. The Chairperson of the Planning Commission
signs this Resolution, and the Secretary to the Commission shall attest and certify to the
passage and adoption thereof.
NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of
Palm Desert, California, as follows:
1. That the above recitations are true and correct and constitute the findings for
recommendation by the Planning Commission in this case.
2. That the Planning Commission does hereby recommend approval of Case No.
CZ23-0001.
Page 794 of 851
PLANNING COMMISSION RESOLUTION NO. 2837
ADOPTED ON July 18, 2023.
Nana Dena
NancyDeLun-a (Jul 25, 202318:24 PDT)
NANCY DE LUNA
CHAIRPERSON
ATTEST:
00
RICHARD D. CANNONE, AICP
SECRETARY
I, Richard D. Cannone, AICP, Secretary of the City of Palm Desert, hereby certify that
Resolution No. 2837 is a full, true, and correct copy, and was duly adopted at a regular
meeting of the Planning Commission of the City of Palm Desert on July 18, 2023, by the
following vote:
AYES: DE LUNA, GREENWOOD, GREGORY, and PRADETTO
NOES: NONE
ABSENT: HOLT
ABSTAIN: NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of Palm Desert, California, on July, 2023.
RICHARD D. CANNONE, AICP
SECRETARY
3 Page 795 of 851
PLANNING COMMISSION RESOLUTION NO. 2837
4
Page 796 of 851
Res No 2837
Final Audit Report
Created: 2023-07-25
By: Monica O'Reilly (moreilly@palmdesert.gov)
Status: Signed
Transaction ID: CBJCHBCAABAAS2Vf5lrVNvKLv2ed8o0SVILZzJKDYVr3
Res No 2837" History
Document created by Monica O'Reilly (moreilly@palmdesert.gov)
2023-07-25 - 11:39:44 PM GMT
Document emailed to nancyjdeluna@gmail.com for signature
2023-07-25 - 11:39:59 PM GMT
Email viewed by nancyjdeluna@gmail.com
2023-07-26 - 1:24:36 AM GMT
rQ Signer nancyjdeluna@gmail.com entered name at signing as Nancy DeLuna
2023-07-26 - 1:24:54 AM GMT
r-Q Document e-signed by Nancy DeLuna (nancyjdeluna@gmail.com)
Signature Date: 2023-07-26 - 1:24:56 AM GMT - Time Source: server
O Agreement completed.
2023-07-26 - 1:24:56 AM GMT
2023-07-26
0 Adobe Acrobat Sign
Page 797 of 851
Page 798 of 851
Page 1 of 5
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: July 18, 2023
PREPARED BY: Nick Melloni, Principal Planner
REQUEST: CONSIDERATION OF A RECOMMENDATION TO THE CITY COUNCIL TO
ADOPT A NOTICE OF EXEMPTION PURSUANT TO THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA) AND APPROVAL OF CHANGE OF
ZONE 23-0001 TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF
PARCEL MAP NO. 36614, LOCATED APPROXIMATELY 500 FEET FROM THE
NORTHWEST CORNER OF HIGHWAY 111 AND FRED WARING DRIVE
FROM RESORT COMMERCIAL CENTER (PC-4) TO DISTRICT COMMERCIAL
CENTER (PC-2)
RECOMMENDATION:
Waive further reading and adopt Planning Commission Resolution No. 2837 to:
1. Conduct a public hearing and receive public testimony.
2. Recommend that the City Council adopt a Notice of Exemption pursuant to the General Rule
Exemption under Section 15061(b)(3) “General Rule.”
3. Recommend that the City Council approve Case No. CZ23-0001 for a Change of Zone for Parcel 1
of Parcel Map No. 36614 from the PC-4 to PC-2 zoning designation.
EXECUTIVE SUMMARY
The project is a request by 72221 Highway 111 LLC (Applicant) to change the zoning designation of a
parcel located at 72221 Highway 111 (Assessor’s Parcel Number 640-020-054) from Resort
Commercial Center (PC-4) to District Commercial Center (PC-2). This is a 1.34-acre parcel developed
with an existing 16,008-square-foot multi-tenant commercial building and associated parking lot, which
is shared with neighboring parcels in the same shopping center.
City staff has reviewed the request and concludes that the proposed Change of Zone will not result in
non-conformities for the existing land uses within the center or development standards for the parcel.
The requested zoning designation is consistent with the General Plan Land Use Designation for the
site, Suburban Retail Center.
Adopting the staff’s recommendation will result in a recommendation that the City Council adopt a notice
of exemption pursuant to CEQA under the General Rule exemption and approve Case No. CZ23-0001.
BACKGROUND/ANALYSIS:
a) Property Description: The project site is a 1.34-acre parcel located at 72221 Highway 111,
near the northwest corner of Highway 111 and Fred Waring Drive. The lot is more
specifically Parcel No. 1 of Parcel Map (PM) 36614. The site contains multi-tenant
commercial buildings totaling approximately 16,008 square feet, with existing tenants,
including a dog groomer, tattoo shop, and restaurant. The parcel and building were originally
approved in 1979 as part of the “Las Sombras” development via Development Plan 01-78
and Variance 01-78, which established a commercial center on the northwest corner of Fred
Waring Drive and Highway 111 for five (5) parcels and five (5) buildings and granted a
Page 799 of 851
City of Palm Desert
Case No. CZ23-0001 Change of Zone
Page 2 of 5
parking variance. At the original time of approval, the complex was intended to be occupied
by primarily restaurant land uses. Construction of the buildings was completed in 1980. The
project parcel has an existing parking lot with a total of 59 spaces, accessible from Fred
Waring Drive and Painters Path, and has access to approximately 508 total spaces from
adjoining parcels within the commercial center.
The building currently has seven (7) suites, four (4) of which are occupied by a restaurant,
tattoo shop, dog grooming business, and private gym. There is a pending application for a
Use Determination (UD23-0001) and Conditional Use Permit (CUP).
b) Current Zoning & General Plan Land Use Designation:
Table 1 – Adjacent Land Use and Designations
Existing Uses General Plan Zoning
Project
Site Commercial Suburban Retail Center Resort Commercial
Center (PC-4)
North Commercial Suburban Retail Center Resort Commercial
Center (PC-4)
South Restaurant/Commercial Suburban Retail Center Resort Commercial
Center (PC-4)
East Commercial Regional Retail Regional Commercial
Center (PC-3)
West Professional Office Employment Center District Commercial
Center (PC-2)
Project Description/Analysis:
The project is a request to change the zoning designation of the project site from PC-4 to PC-2. If
approved, the change will require the zoning map be altered to reflect the parcel specific change.
The applicant has requested the change to enable additional land uses to open within the existing
commercial building.
Requests to amend the zoning designation of the parcel require approval by the City Council
pursuant to Palm Desert Municipal Code (PDMC) 25.78.040 upon a recommendation of the
Planning Commission. The PDMC does not establish specific findings for the approval of a change
of zone. Staff has analyzed the proposed change based on the following criteria:
1. General Plan Land Use Consistency.
2. Conformance of existing site conditions with Zoning Requirements.
3. Conformance with SB 330, with regard to downzoning for housing.
General Plan Land Use Consistency
The General Plan Land Use Designation for the site is Suburban Retail Center. This designation
was adopted for the site in conjunction with the comprehensive 2035 General Plan Update adopted
by the Palm Desert City Council in November 2016. This land use designation is intended to provide
a concentration of retail businesses, including “big box” and “large format” retailers in a setting that
provides surface parking to accommodate parking requirements for the businesses. Allowable uses
include small-scale and large-scale retail, as well as flexibility to allow multi-family housing in a
mixed-use configuration at densities of ten (10) to 15 dwelling units per acre.
Page 800 of 851
City of Palm Desert
Case No. CZ23-0001 Change of Zone
Page 3 of 5
Under state law, more specifically Government Code Section 65860, zoning provisions must be
consistent with the General Plan for general law cities and charter cities with a population greater
than two million persons. Palm Desert is a charter city, and the state requirement for zoning
consistency with the general plan does not apply; however, it is a practice that has been historically
applied and encouraged by the PDMC. PDMC Section 25.04.020 Zoning Districts establishes how
each General Plan land use designation is implemented through zoning and establishes that the
Suburban Retail Center is implemented through the PC-2 zoning designation. The current PC-4
designation is, according to this chapter, more appropriate for the Resort and Entertainment
General Plan land use designation. Based on the preceding, the proposed zoning designation is
consistent with the General Plan.
Zoning Consistency
The project site is developed with an existing retail commercial building, which contains existing
tenants. The proposed Change of Zone must be evaluated to ensure that the new zone will not
result in nonconforming land uses or inconsistent development standards. To evaluate this, staff
reviewed the existing approved land uses on the parcel for consistency with the allowed land uses
established by Table 25.16-1 Use Matrix for Commercial and Industrial Districts. The Table 2 below
summarizes the land use conformity based on the current and proposed zoning designation:
Table 2 – Land Use Classification Conformance Determination
Existing or
Proposed
Land Use
Classification
Land Use
Classification
Regulation under
PC-4
Regulation under
PC-2
Conformance
(Allowed by
Zone)
Pet Groomer Personal Services Permitted by right Permitted by right Yes
Restaurant Personal Services Permitted by right
Allowed by
administrative use
permit
Yes
Tattoo Shop Personal Services Permitted by right Permitted by-right Yes
Bar/Lounge
Not listed – Use
Determination
Required
Not listed – Use
Determination
Required
Not listed – Use
Determination
Required
Not listed
In summary, the existing land uses on the project site will remain largely unaffected as they are
permitted by right. Restaurant uses, which are permitted by right under the current zoning
designation will require Administrative Use Permit (AUP) approval before they will be allowed to
open under the District Center Designation. The existing restaurant will require an AUP if future
expansions of the space are requested in the future. Notably, there is a pending application for a
bar/lounge proposed on the property, though this will require a separate action by the Planning
Commission to determine whether that specific use is allowable.
Due to the existing improvements on the site, the request must also be elevated to determine that
the change will not result in nonconformities with the development standards due to the change.
Table 3 on the next page summarizes and evaluates the conformance of the existing site with the
current and proposed zoning designation:
Page 801 of 851
City of Palm Desert
Case No. CZ23-0001 Change of Zone
Page 4 of 5
Table 3 – General Development Standard Conformance Determination
Development
Standard
Existing Site
Condition
PC-4
Requirement
PC-2
Requirement
Conformance
under PC-2
Lot size
minimum
area
1.37 acres 4 acres 5 acres No
Front yard
setback
minimum
21’ None None Yes
Side yard
(interior) 1.2’ minimum 0’ 0’ Yes
Street side
yard N/A None None Yes
Rear yard,
minimum 120’+ 20’ 20’ Yes
Floor area
ratio 0.27 1.0 0.10 Yes
Maximum
building
height
Approximately
20’ 35’ 55’ Yes
Maximum
building size
16,008square
feet None
30,000
square feet
maximum
Yes
As indicated above, the existing project would comply with applicable general development
standards under the PC-2 zoning designation. The parcel area does not meet the minimum
requirement of the PC-2 zone with regard to the minimum required lot size; however, the project
does not include a subdivision request, and this requirement is not relevant, nor does it render the
building non-conforming. The table only covers general development standards and does not
analyze site-specific design standards, which are not relevant to the change of zone.
The parcel is contiguous with other properties within the PC-2 zoning district located to the west of
the site across Painters Path. At the time of the application, the existing development is adequately
served by existing utilities with adequate sewer and water lines. No new alterations to the site are
proposed at this time in conjunction with the Change of Zone.
Senate Bill 330/ Housing Crisis Act
The Housing Crisis Act (HCA), otherwise known as SB 330/SB 8, broadly restricts the City from
reducing the zoning of a property to a less intensive residential use. The PC-4 and PC-2 zone allow
for residential land uses; therefore, the HCA is relevant to the project. The proposed change will
increase the maximum residential density of the site from ten (10) dwelling units to up to 15 dwelling
units per acre.
Public Input:
Public Notification
Public noticing was conducted for the July 18, 2023, Planning Commission meeting per the
requirements of PDMC Section 25.60.060 and Government Code Sections 65090 to 65094. A public
hearing notice was published a minimum of ten (10) days before the hearing date in The Desert Sun
Page 802 of 851
City of Palm Desert
Case No. CZ23-0001 Change of Zone
Page 5 of 5
newspaper. Notices were mailed to all property owners within 300 feet of the project site. No
comments have been received as of the date of this report.
Environmental Assessment/Environment Review:
Pursuant to CEQA and the State CEQA Guidelines, the project was found to be exempt from further
environmental review per Section 15061(b)(3) (General Rule exemption). The project enacts the
General Plan in accordance with the Zoning Ordinance by changing the designation of the site to PC-
2. The project site is an existing approved commercial center. No significant impacts on the
environment are anticipated.
Findings of Approval:
Findings can be made in support of the project under the City’s Municipal Code. Findings in support
of this project are contained in Planning Commission Resolution No. 2837, attached to this staff report.
REVIEWED BY:
Department Director: Richard D. Cannone, AICP
Principal Planner Nick Melloni
ATTACHMENTS:
1. Draft Planning Commission Resolution No. 2837
2. Public Hearing Notice
3. Notice of Exemption
4. For Reference Only: Site Plan
Page 803 of 851
Page 804 of 851
City of Palm Desert Page 1
PLANNING COMMISSION
CITY OF PALM DESERT, CALIFORNIA
MINUTES
This meeting was conducted by teleconference, and there was in-person public access to
the meeting location.
1. CALL TO ORDER
A Regular Meeting of the Planning Commission was called to order by Chair DeLuna on
Tuesday, July 18, 2023, at 6:00 p.m.
2. ROLL CALL
Present: Commissioners John Greenwood, Ron Gregory, Vice-Chair Joseph Pradetto, and
Chair Nancy DeLuna.
Absent: Commissioner Holt.
Staff
Present: Ryan Guiboa, City Attorney; Richard D. Cannone, Director of Development
Services; Nick Melloni, Principal Planner; Carlos Flores, Senior Planner, Anna
Dan, Associate Planner I, Eric Ceja, Director of Economic Development, and
Monica O’Reilly, Executive Administrative Assistant.
3. PLEDGE OF ALLEGIANCE
Vice-Chair Pradetto led the Pledge of Allegiance.
4. NON-AGENDA PUBLIC COMMENT:
None.
Tuesday, July 18, 2023
6:00 p.m.
Regular Meeting
Page 805 of 851
Planning Commission Minutes July 18, 2023
City of Palm Desert Page 2
5. CONSENT CALENDAR:
The staff report(s) and Zoom video of the meeting are available on the City’s
website. Click on the following link to access: https://www.palmdesert.gov/our-
city/committees-and-commissions/commission-information.
A. APPROVAL OF MINUTES
RECOMMENDATION: Approve the Planning Commission Study Session minutes of June
20, 2023.
RECOMMENDATION: Approve the Planning Commission Meeting minutes of June 20,
2023.
MOTION BY COMMISSIONER GREENWOOD, SECOND BY VICE-CHAIR PRADETTO,
CARRIED 4-0 (HOLT ABSENT), to approve the Planning Commission Study Session and
Regular Meeting minutes of June 20, 2023.
CONSENT ITEMS HELD OVER:
None.
6. ACTION CALENDAR
None.
7. PUBLIC HEARINGS
The staff report(s) and Zoom video of the meeting are available on the City’s
website. Click on the following link to access: https://www.palmdesert.gov/our-
city/committees-and-commissions/commission-information.
A. CONSIDERATION OF A REQUEST TO APPROVE A ONE-YEAR TIME EXTENSION
FOR TENTATIVE PARCEL MAP 37234 TO SUBDIVIDE A 32-ACRE AREA INTO FOUR
(4) PARCELS AT THE SOUTHEAST CORNER OF MONTEREY AVENUE AND DICK
KELLY DRIVE
Principal Planner Melloni narrated a PowerPoint presentation on this item.
Chair DeLuna opened the Public Hearing.
Chris Chambers, the representative for the property owner, stated that the extension is
due to having a buyer for the two residential parcels under contract. The buyer is preparing
to submit a Precise Plan application.
There being no others desiring to speak, the Public Hearing was closed.
Page 806 of 851
Planning Commission Minutes July 18, 2023
City of Palm Desert Page 3
MOTION BY COMMISSIONER GREGORY, SECOND BY COMMISSIONER
GREENWOOD, CARRIED 4-0 (HOLT ABSENT), approving Planning Commission
Resolution No. 2835:
1. Granting the extension of time to extend the project approval until September 12,
2024.
B. CONSIDERATION TO ADOPT A NOTICE OF EXEMPTION PURSUANT TO THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA); AND APPROVAL OF A
CONDITIONAL USE PERMIT AND PRECISE PLAN TO DEVELOP A 3,539-SQUARE-
FOOT, SINGLE-STORY BUILDING WITHIN THE PALM DESERT CIVIC CENTER
CAMPUS LOCATED AT THE NORTHEAST CORNER OF SAN PABLO AVENUE AND
FRED WARING DRIVE (ASSESSOR’S PARCEL NUMBER 622-250-014)
Commissioner Greenwood interjected he is with Prest Vuksic Greenwood Architects
(PVG Architects), who are the Applicant and architects for this project, and recused
himself from this item.
Senior Planner Flores presented the staff report and responded to the Planning
Commission’s questions regarding public events and parking for events.
Chair DeLuna opened the Public Hearing.
Nicole Williams, PVG Architects, noted that she had a presentation; however, it is a repeat
of the presentation given by Mr. Flores.
There being no others desiring to speak, the Public Hearing was closed.
MOTION BY VICE-CHAIR PRADETTO, SECOND BY COMMISSIONER GREGORY,
CARRIED 3-0 (HOLT ABSENT AND GREENWOOD RECUSED), approving Planning
Commission Resolution No. 2836:
1. Adopting a Notice of Exemption for a Class 32 Categorical Exemption in accordance
with CEQA Guidelines Section 15332 as an Infill development.
2. Approving Conditional Use Permit (CUP) 23-0001 and Precise Plan (PP) 23-0001 for
a 3,539-square-foot, single-story building located at the northeast corner of San Pablo
Avenue and Fred Waring Drive (Assessor’s Parcel Number 622-250-014).
Commissioner Greenwood returned to the meeting at 6:21 p.m.
C. CONSIDERATION OF A RECOMMENDATION TO THE CITY COUNCIL TO ADOPT A
NOTICE OF EXEMPTION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL
QUALITY ACT AND APPROVAL OF CHANGE OF ZONE 23-0001 TO CHANGE THE
ZONING DESIGNATION OF PARCEL 1 OF PARCEL MAP NO. 36614, LOCATED
APPROXIMATELY 500 FEET FROM THE NORTHWEST CORNER OF HIGHWAY 111
AND FRED WARING DRIVE FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2)
Principal Planner Melloni presented the staff report.
Page 807 of 851
Planning Commission Minutes July 18, 2023
City of Palm Desert Page 4
Commissioner Gregory commented that the Change of Zone would benefit the
development.
Chair DeLuna opened the Public Hearing.
Adam Gilbert, the applicant, stated that the Change of Zone would help get tenants
into the building and answered questions from the Planning Commission.
There being no others desiring to speak, the Public Hearing was closed.
MOTION BY COMMISSIONER GREENWOOD, SECOND BY COMMISSIONER
GREGORY, CARRIED 4-0 (HOLT ABSENT), approving Planning Commission Resolution
No. 2837:
1. Recommending that the City Council adopt a Notice of Exemption pursuant to the
General Rule Exemption under Section 15061(b)(3) “General Rule.”
2. Recommending that the City Council approve Case No. CZ23-0001 for a Change of
Zone for Parcel 1 of Parcel Map No. 36614 from the PC-4 to PC-2 zoning designation.
D. CONSIDERATION TO ADOPT A NOTICE OF EXEMPTION PURSUANT TO THE
CALIFORNIA ENVIRONMENTAL QUALITY ACT AND A USE DETERMINATION
(UD) THAT A BAR/LOUNGE IS SIMILAR TO OTHER USES PERMITTED IN THE
DISTRICT PLANNED COMMERCIAL (PC-2) ZONING DISTRICT AND MAY BE
ALLOWED, SUBJECT TO AN ADMINISTRATIVE USE PERMIT AT 72221
HIGHWAY 111, SUITE 110
Associate Planner Dan narrated a PowerPoint presentation on this item. Staff responded
to questions from the Planning Commission regarding the Administrative Use Permit
(AUP)/Conditional Use Permit (CUP) process for a bar and lounge and other bars and
lounges previously approved through a CUP application.
There was a discussion between the Planning Commission, the City Attorney, and City
staff regarding a policy on a UD and AUP process.
Chair DeLuna opened the Public Hearing.
Adam Gilbert, the property owner at 72221 Highway 111, noted that the operator for
Adults Only (bar/lounge) is available via Zoom to answer any questions. He mentioned
that Adults Only is an existing brand with a location in Los Angeles and is considered
a high-end bar.
There being no others desiring to speak, the Public Hearing was closed.
Vice-Chair Pradetto requested changing the Planning Commission resolution to clarify
AUPs related to bars and lounges are to be considered by the Commission for approval.
City staff proposed the following changes to Resolution No. 2838:
Page 808 of 851
Planning Commission Minutes July 18, 2023
City of Palm Desert Page 5
1. Whereas, Palm Desert Municipal Code 25.64.040 establishes that the
Zoning Administrator may refer to an Administrative Use Permit to the
Planning Commission for review and approval.
2. Whereas, at said public hearing, the Planning Commission
expressed that Bars/Lounges shall be referred to the Planning
Commission for such consideration.
3. Section 2. Findings on Use Determination. Adding to Section 2, “. . . subject to
an Administrative Use Permit referred to the Planning Commission.”
MOTION BY VICE-CHAIR PRADETTO, SECOND BY COMMISSIONER GREENWOOD,
CARRIED 4-0 (HOLT ABSENT), approving Planning Commission Resolution No. 2838:
1. Adopting a Notice of Exemption, pursuant to the General Rule Exemption under
Section 15061(b)(3), “General Rule.”
2. Approving Case No. UD23-0001 to deem a Bar/Lounge use as an administratively
allowed use within the District Planned Commercial (PC-2) zoning designation.
8. INFORMATIONAL REPORTS & COMMENTS
A. SUMMARY OF CITY COUNCIL ACTIONS
Director Cannone reported that the City Council requested City staff look at the 111
Development Code and provide an assessment of the code. The Council had previously
discussed the code in 2019 related to a concern with building heights.
B. COMMITTEE MEETING UPDATES
1. Cultural Arts Committee
None.
2. Parks and Recreation Commission
None.
C. PLANNING COMMISSIONERS
None.
D. CITY STAFF
Principal Planner Melloni reported that City staff intends to hold a second community
meeting on the Objective Design Standards for residential and multifamily development
on August 7, 2023, at the Palm Desert iHub. There will be a special session with the
Planning Commission on August 8. Additionally, staff requested proposals to amend the
University Neighborhood Specific Plan.
Commissioner Greenwood requested that staff email the dates for the meetings on the
Objective Design Standards and various events to the Planning Commission.
Page 809 of 851
Planning Commission Minutes July 18, 2023
City of Palm Desert Page 6
E. ATTENDANCE REPORT
The attendance report was provided with the agenda materials. The Commission took no
action on this matter.
9. ADJOURNMENT
The Planning Commission adjourned the meeting at 7:03 p.m.
Respectfully submitted,
Monica O’Reilly, Executive Administrative Assistant
Recording Secretary
ATTEST:
Richard D. Cannone, AICP, Director of Development Services
Secretary
APPROVED BY THE PLANNING COMMISSION: 08/01/2023
Page 810 of 851
Notice of Exemption FORM “B”
NOTICE OF EXEMPTION
TO:
Office of Planning and Research
P. O. Box 3044, Room 113
Sacramento, CA 95812-3044
FROM: City of Palm Desert
73-510 Fred Waring Drive
Palm Desert, CA 92260
Clerk of the Board of Supervisors
or
County Clerk
County of: Riverside
2724 Gateway Dr, Riverside,
CA 92507
1. Project Title: CZ23-0001
2. Project Applicant: 72221 Highway 111 LLC
3. Project Location – Identify street address and
cross streets or attach a map showing project
site (preferably a USGS 15’ or 7 1/2’
topographical map identified by quadrangle
name):
72221 Highway 111 in Palm Desert in Riverside
County. Parcel 1 of PM 36614
4. (a) Project Location – City: Palm Desert (b) Project Location – County: Riverside
5. Description of nature, purpose, and
beneficiaries of Project:
A request to change the zoning designation of Parcel
1 of PM 36614 to PC-2.
6. Name of Public Agency approving project: City of Palm Desert
7. Name of Person or Agency undertaking the
project, including any person undertaking an
activity that receives financial assistance
from the Public Agency as part of the activity
or the person receiving a lease, permit,
license, certificate, or other entitlement of use
from the Public Agency as part of the activity:
72221 Highway 111 LLC
8. Exempt status: (check one)
(a) Ministerial project. (Pub. Res. Code § 21080(b)(1); State CEQA
Guidelines § 15268)
(b) Not a project.
(c) Emergency Project. (Pub. Res. Code § 21080(b)(4); State CEQA
Guidelines § 15269(b),(c))
(d) Categorical Exemption.
State type and section
number:
State CEQA Guidelines §15332 – “Class 32 – Infill
Project”
(e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA
Guidelines § 15269(a))
(f) Statutory Exemption.
State Code section number:
(g) Other. Explanation: General Rule – Section 15061(b)(3)
9. Reason why project was exempt: The project is exempt from CEQA per the general
rule. The change of zone will ensure the Zoning
Designation of the parcel is consistent with the
Suburban Retail Center General Plan Land Use
Page 811 of 851
Notice of Exemption FORM “B”
Designation
10. Lead Agency Contact Person: Nick Melloni, Principal Planner
Telephone: (760) 346-0611
11. If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing.
12. Has a Notice of Exemption been filed by the public agency approving the project? Yes No
13. Was a public hearing held by the lead agency to consider the exemption? Yes No
If yes, the date of the public hearing was: August 24, 2023
Signature: Date: August 24, 2023
Title: Principal Planner
Signed by Lead Agency Signed by Applicant
Date Received for Filing:
(Clerk Stamp Here)
Authority cited: Sections 21083 and 21100, Public Resources Code.
Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.
Page 812 of 851
NOPARKINGNOPARKINGEV CAPABLEEV CAPABLEEV CAPABLEEV CAPABLEEV CAPABLEAPN:
640-020-008
EXISTING
BUILDING
A P N :6 4 0 -0 2 0 -0 5 4
APN:
640-020-007
OLIVE GARDEN
BUILDING
H W Y . 1 1 1
PAINTERS PATH PROPERTY LINEPROPERTY LINEPROPERTY LINEPROPERTY LINEPROPERTY LINEPROPERTY LINEP R O P E R T Y L I N E
P R O P E R T Y L I N E
P R O P E R T Y L I N EPROPERTY LINE
PROPERTY LINE
SITE PLAN DMA DESIGN AND CONSTRUCTIONGENERAL CONTRACTOR LIC# 95547022421 BARTON RD #360GRAND TERRACE, CA 92313(951)712-6575THE FIRM72221 HWY 111PALM DESERT, CASHEET:CLIENT:DRAWINGS PROVIDED BY:DATE:5/14/2021SITE PLANA-1
Page 813 of 851
Page 814 of 851
C I T Y O F P A L M D E S E R T
73-510 FRED WARING DRIVE
PALM DESERT, CALIFORNIA 92260-2578
TEL: 760-346-0611
INFO@PALMDESERT.GOV
CITY OF PALM DESERT
PUBLIC HEARING NOTICE
CASE NO. CZ/EA23-0001
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BEFORE THE CITY COUNCIL
OF THE CITY OF PALM DESERT, CALIFORNIA, TO CONSIDER THE ADOPTION OF AN ORDINANCE
FOR A NOTICE OF EXEMPTION PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(CEQA) AND APPROVAL OF A CHANGE OF ZONE FROM PC-4 TO PC-2 FOR THE PROPERTY
LOCATED AT 72221 HIGHWAY 111
The City of Palm Desert (City), in its capacity as the Lead Agency for this project and pursuant to the
California Environmental Quality Act (CEQA), finds that the project qualifies for exemption from further
CEQA review per CEQA Guidelines Section 15061(b)(3).
PROJECT LOCATION/DESCRIPTION:
PROJECT LOCATION: 72221 Highway 111 in the City of Palm Desert, located in Riverside County.
Assessor’s Parcel Number 640-020-054, Parcel 1 of PM 36614.
PROJECT DESCRIPTION: The request will change the zoning designation of the existing 1.34-acre parcel
from Resort Commercial Center (PC-4) to District Commercial Center (PC-2).
PLANNING COMMISSION RECOMMENDATION: At its regular meeting on July 18, 2023, the Planning
Commission adopted Resolution No. 2837 recommending that the City Council approve of the project
request.
PUBLIC HEARING: NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Desert,
California, will hold a Public Hearing at its meeting on August 24, 2023. The City Council meeting begins
at 4:00 p.m. in the Council Chamber located at 73510 Fred Waring Drive, Palm Desert, California. Pursuant
to Assembly Bill 361, this meeting may be conducted by teleconference. There will be in -person access to
the meeting location. Options for remote participation will be listed on the Posted Agenda for the meeting
at: https://www.palmdesert.gov/our-city/mayor-and-city-council-/city-council-meeting-information-center
REVIEW OF PROJECT INFORMATION: Information concerning the proposed designation is available for
review in the Office of the City Clerk at 73510 Fred Waring Drive, Palm Desert, California, during regular
business hours.
COMMENT ON THIS APPLICATION: Response to this notice may be made as follows:
• Written comments may be submitted to the City Council by letter to the addres s below or email at
CouncilMeetingComments@palmdesert.gov. Transmittal prior to the start of the meeting is
required. Any correspondence received during or after the meeting will be distributed to the City
Council as soon as practicable and retained for the official record.
Any challenge of the proposed project in court may be limited to raising only those issues raised at the
public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior,
to the public hearing. (Government Code Section 65009[b][2]).
Si necesita ayuda con esta notificación por favor llame a la Ciudad de Palm Desert y comuníquese
con Gloria Sanchez (760) 346-0611 ext. 354.
PUBLISH: DESERT SUN ANTHONY J. MEJIA, MMC, CITY CLERK
AUGUST 13, 2023 CITY OF PALM DESERT, CALIFORNIA
Page 815 of 851
Page 816 of 851
Change of Zone 23-0001
PALM DESERT CITY COUNCIL
AUGUST 24, 2023
8/24/2023 1
Page 817 of 851
Vicinity Map
Highway 111
Larkspur Lane8/24/2023 2
Page 818 of 851
Project Request
Project Applicant:72221 Highway 111 LLC
Change the zoning designation of the 1.34-acre site from PC-4 (Resort Commercial
Center to PC-2 (District Commercial Center)containing a development known as Bump
and Grind Plaza
Assessor’s Parcel Number 640-020-054
Consistent with General Plan Land Use Designation (Suburban Retail Center)
Project recommend for approved by Palm Desert Planning Commission on July 18,2023,per Resolution No.
2837.
8/24/2023 3
Page 819 of 851
8/24/2023 4
Page 820 of 851
Analysis
No findings established by the Palm Desert Municipal Code.
General Plan Land Use Consistency.
Conformance of existing site conditions with Zoning Requirements.
Site served by existing utilities
Conformance with SB 330,with regard to downzoning for housing.
Public Notice sent on August 13,2023 to property owners within 300 feet of project site.
8/24/2023 5
Page 821 of 851
Analysis –Land Use Consistency
8/24/2023 6
Existing or Proposed
Land Use
Classification
Land Use Classification Regulation under PC-4 Regulation under PC-2 Conformance
(Allowed by Zone)
Pet Groomer Personal Services Permitted by right Permitted by right Yes
Restaurant Personal Services Permitted by right Allowed by administrative use
permit Yes
Tattoo Shop Personal Services Permitted Permitted Yes
Bar/Lounge Not listed –Use
Determination Required
Not listed –Use
Determination Required
Not listed –Use
Determination Required Not listed
Page 822 of 851
Analysis –Development Standards
8/24/2023 7
Development Standard Existing Site Condition PC-4 Requirement PC-2 Requirement Conformance under PC-2
Lot size minimum area 1.37 acres 4 acres 5 acres No
Front yard setback
minimum 21’None None Yes
Side yard (interior)1.2’ minimum 0’0’Yes
Street side yard N/A None None Yes
Rear yard, minimum 120’+20’20’Yes
Floor area ratio 0.27 1.0 0.10 Yes
Maximum building
height Approximately 20’35’55’Yes
Maximum building size 16,008square feet None 30,000 square feet
maximum Yes
Page 823 of 851
Pursuant to CEQA and the State CEQA Guidelines, the project was found to be exempt from
further environmental review per Section 15061(b)(3) (General Rule exemption). The project
enacts the General Plan in accordance with the Zoning Ordinance by changing the designation
of the site to PC-2. The project site is an existing approved commercial center. No significant
impacts on the environment are anticipated.
8/24/2023 8
CEQA
Page 824 of 851
Recommendation
Waive further reading and pass to second reading City Council Ordinance No. 1398 adopting a
notice of exemption, and approving Case No. Change of Zone (CZ) 23-0001.
8/24/2023 9
Page 825 of 851
Page 826 of 851
CITY OF PALM DESERT
CITY MANAGER’S OFFICE
INTEROFFICE MEMORANDUM
Date: August 24, 2023
To: Honorable Mayor and Councilmembers
From: Anthony J. Mejia, City Clerk
Subject: City Council Meeting of August 24, 2023
Below you will find questions received from the Mayor or Councilmembers and answers provided by
City staff regarding tonight’s City Council meeting:
ITEM 13d: ACCEPT RESIGNATIONS FROM THE CIVIC ENGAGEMENT COMMITTEE, CULTURAL
ARTS COMMITTEE, AND PARKS AND RECREATION COMMITTEE
Q1: Where are the full bylaws posted on the City’s website?
A1: The City Council recently adopted an ordinance to incorporate all bylaws into the Palm Desert
Municipal Code (PDMC) for consolidation and easy reference. Please see Title 2,
Administration and Personnel, to access the bylaws. In the coming days, City staff will also
update the Advisory Body landing webpage to include hyperlinks to the PDMC section of the
applicable bylaws.
Q2: Wasn’t there a discussion of permitting non-residents that may hold subject matter
experience?
A2: PDMC 2.34.030 states that the City Council may appoint a nonresident in cases where the
City Council deems it appropriate to appoint a nonresident who offers specific expertise. In
these circumstances, the City Council was unaware that the candidates where nonresidents
and therefore did not make a finding or determination that it was necessary to appoint a
nonresident for special expertise.
Q3: What measures have been implemented to ensure applicants live within city boundaries
as necessary?
A3: City staff has reviewed and verified all appointed body members and applicants are registered
voters of the City or their residences are located within City limits. Going forward, City staff will
verify the voter registration and/or residential address is within City limits prior to interviews
and will ensure that the interview documents indicate whether a candidate is a nonresident.
Page 827 of 851
08/24/2023 Question & Answer Memo
Page 2 of 5
ITEM 13e: HOUSING AUTHORITY: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF
A HOUSING AND LOAN AGREEMENT WITH A0358 MONTEREY, L.P., APPROVING A
LOAN IN THE AMOUNT OF $7,235,000 FOR CONSTRUCTION OF 176 AFFORDABLE
HOUSING UNITS AND RELATED ACTIONS
ITEM 13g: APPROVE A HOUSING AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT
AND A0358 MONTEREY, LP, FOR THE CROSSINGS AT PALM DESERT APARTMENTS
PROJECT
Q1: Why is only one, 3-bedroom unit allotted under the 80% AMI and zero designated under
the 59% AMI (page 164/298)?
A1: One of the City’s Housing Element’s program, Program 4C, is to implement programs or assist
in housing affordable to extremely low-income households. It is difficult to locate adequate and
affordable housing if there is a limited supply of larger units. Prices for larger units tend to be
affordable only to moderate- and above-moderate income households. Based on the need of
units for larger families for lower income households and to maintain the feasibility of the
Project, the three-bedroom units were allocated primarily for extremely low households.
Q2: With a priority for Veterans identified, is there a cap on units held for Veterans (page
299)?
A2: Units are not set aside for veterans, therefore there is no cap. Typically, priority to Veterans is
provided in the selection from the waitlist when a unit becomes available. The developer will
establish a policy on the selection of Households or individuals from the waiting list, including
any preference. In accordance with the implemented preferences, Veterans will have priority.
Q3: How frequently has the city had to exercise such inspections as provided in Section 5.2
Maintenance, Repair, Alterations (Page173/306)?
A3: These types of inspections are routinely conducted by the other funding sources and the City
is provided any findings. Only when there are findings or concerns does the City exercise the
option described in Section 5.2; the City has exercised this option minimal times.
ITEM 13f: APPROVE SECOND AMENDMENT TO THE EL PASEO PARKING & BUSINESS
IMPROVEMENT DISTRICT CONTRACT WITH FG CREATIVE
Q1: Which have the most successful campaigns? How is return on investment (ROI)
measured?
A1: The EPPBID’s work is multifaceted, and over the years the board has found ways to make its
small budget work hard to help achieve its goals. The ultimate goal is to bring people to the
street to help support the many stores, galleries, and restaurants in t he district. In terms of
marketing, they’ve had great success with social media, raising brand awareness and inviting
people to the street whenever there is any kind of activation. The partnership with Palm
Springs Life has also been beneficial, using direct email, a dedicated website, and physical
pieces such as the El Paseo Catalogue. In each case, ROI is measured by the number of
people reached, and their engagement with the content provided through each medium.
Page 828 of 851
08/24/2023 Question & Answer Memo
Page 3 of 5
ITEM 13j: REQUEST FOR MAYOR PRO TEM QUINTANILLA TO PARTICIPATE IN THE 2024
LEADERSHIP COACHELLA VALLEY PROGRAM
Q1: What is the rationale for charging this to the general local meetings budget, which has
$9,000 to cover everyone's local meetings for the year, rather than to the individual
discretionary budget for contributions/meetings of $2,500 per councilmember?
A1: This item was brought forward because it was City staff’s understanding that Mayor Pro Tem
Quintanilla was seeking funding to attend Leadership Coachella Valley. The individual
councilmember discretionary budget would be an appropriate source for payment of
Leadership Coachella Valley and Mayor Pro Tem Quintanilla has the full budget of $2,500
available.
ITEM 13o: AWARD ON-CALL CONTRACTS TO MULTIPLE VENDORS FOR PARK AND
FACILITIES REPAIRS AND IMPROVEMENT PROJECTS
Q1: What is the location of the evaporative cooler at Civic Center park?
A1: The evaporative cooler in Civic Center Park is located at the baseball field snack bar.
Q2: Why is there only an evaporative cooler and not AC units at the Soccer Park and
Freedom Park?
A2: Evaporative coolers are an effective and energy efficient way to cool the snack bars at the
parks for most of the year, especially when outdoor sports are taking place.
ITEM 14a: APPROVAL OF AN AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN
THE CITY OF PALM DESERT AND THE COUNTY OF RIVERSIDE FOR A THREE -
YEAR TERM FROM FY2024/2025 TO FY2026/2027
Q1: In keeping staffing levels flat, with the assistance of ALPR, does this allow for deputies
to move to other specialized units? Does “reporting out ALPR data” include record
requests out of state? Can we get these reports after the first quarter, and monthly
thereafter?
A1: The ALPR system increases a deputy’s efficiency in responding to a crime. As a result, they
can return to patrol duty sooner which increases their ability to proactively patrol the
community. With the City’s ALPR program going live last October, the City has reported out to
the Public Safety Committee and City Council on the number of cases ALPR has helped solve
and effectiveness of the system with law enforcement activity. The Sheriff’s Department is in
the process of creating a “Transparency Portal” which will include shared agencies and out-of-
state agency requests. Once the portal is live, the City will include its information into the
regular updates to the Public Safety Committee and City Council.
Q2: What is the annual cost for the California Identification System and Records
Management System (Page 584, Section 2.2)? How often does City staff utilize RMS or
DOJ access under CLETS [Page 584, Section 2.2A, subsections (a) and (b)]?
A2: The cost of the CAL-ID system is $50,889. This system is a statewide fingerprint ID system.
The cost of the Records Management System (RMS) is $117,577. This is a system that stores
records. City staff does not utilize CAL-ID, RMS, DOJ law enforcement systems, nor the
California Law Enforcement Telecommunications System (CLETS). These systems are
utilized by Sheriff’s Department personnel on a regular basis in performance of their work
duties.
Q4: Has the City ever had an appointed Police Chief (Page 585, Section 4)?
A4: The City’s dedicated lieutenant serves as the City’s Police Chief with guidance from the Palm
Desert Station Commander. The City, through the City Manager, has a say in who is
Page 829 of 851
08/24/2023 Question & Answer Memo
Page 4 of 5
appointed to be the City’s dedicated lieutenant. The Palm Desert Station Commander is
selected by the Sheriff’s Department.
Q5: Administrative fees will not be charged to the City if those charges are provided free of
charge to any City in the County. Does Palm Desert get charged the same fees as
others for services charged to other cities (Page 587, Section 7)?
A5: Government Code 51350 states the Sheriff’s Department cannot charge one city for a service
that is available to all areas of the County. These fees are those types of charges described in
Section 7 and not included in the contract rate. They include Special Investigations Bureau,
SERT (Emergency Services Team), and Aviation. Otherwise, a contract city is charged the
same rate as all other contract cities.
Q6: What is the average annual cost for miscellaneous costs? What is the annual budget
allocation (Page 588, Section 7.6)?
A6: The annual budget amount is $70,000 and based on prior year actuals. These are costs for
blood draws, blood analysis, sexual assault exams and other related items that law
enforcement will request from the approved provider if needed for the investigation.
Q8: What is the timeline in which RSO agrees to return records as requested (Page 589,
Section 10)?
A8: Depending upon the nature of the request, the Sheriff’s Department responds in a reasonable
amount of time often same the day or week. Overall, the Sheriff’s Department is bound by the
requirements of the California Public Records Act.
ITEM 14b: PALM DESERT REDISTRICTING 2023 - REVIEW OF THE SCHEDULE OF PUBLIC
HEARINGS/WORKSHOPS AND PUBLIC EDUCATION AND OUTREACH PLAN –
OPTIONAL PROCESSES FOR ESTABLISHING DISTRICT BOUNDARIES
Q1: Can the timeline be extended for additional days since residents were understandably
focused on recovery from Hurricane Hillary?
A1: If requested by the City Council, City staff recommends adjusting the Community Workshop #1 to
Tuesday, September 19, 2023, at 6:00 p.m. but maintaining the overall schedule to ensure that a
final map and associated ordinances are adopted in advance of the April deadline.
ITEM 14d: REQUEST FOR FEEDBACK AND DIRECTION REGARDING UPDATING CHAPTER
5.04 REGARDING MODIFICATION, SUSPENSION, OR REVOCATION OF BUSINESS
LICENSES
Q1: How often does the City revoke licenses? Are they frequently appealed?
A1: In the last 8 months, the City initiated two revocations; Sweet Spot and AZ Spa. Of those, City
Council held the revocation hearing on Sweet Spot, but it was not appealed to the district
court. AZ Spa canceled its license, and the revocation hearing did not occur.
In the 15 years prior, the City initiated seven license revocations and City staff is not aware
that any were appealed.
ITEM 15c: ORDINANCE TO CHANGE THE ZONING DESIGNATION OF PARCEL 1 OF PARCEL
MAP NO. 36614, LOCATED APPROX. 500 FEET FROM NW CORNER OF HWY 111
AND FRED WARING DR. FROM RESORT COMMERCIAL CENTER (PC-4) TO
DISTRICT COMMERCIAL CENTER (PC-2) - CEQA FINDING
Q1: Is the 7th Whereas clause in the Planning Commission resolution missing the word
"not," as in "will not render" (Page 671)?
Page 830 of 851
08/24/2023 Question & Answer Memo
Page 5 of 5
A1: Correct, the seventh Whereas of Planning Commission Resolution No. 2837, should read as
follows, “WHEREAS, the proposed Change of Zone will not render the existing improvements
on the site or land uses nonconforming with any applicable Palm Desert Zoning Ordinance
standards.” City staff will proceed with correcting the original resolution for the official record.
Page 831 of 851
Page 832 of 851
Page 1 of 2
CITY OF PALM DESERT
STAFF REPORT
MEETING DATE: August 24, 2023
PREPARED BY: Eric Ceja, Director of Economic Development
REQUEST: CONSIDER APPROVAL OF A TRANSIENT OCCUPANCY TAX (TOT) SHARING
AGREEMENT BETWEEN THE CITY OF PALM DESERT AND NEWAGE DESERT
SPRINGS, LLC
RECOMMENDATION:
1. Approve the DRAFT TOT Sharing Agreement between the City of Palm Desert and Newage
Desert Springs, LLC remitting 50% of incremental TOT generation not to exceed $10 million
to the property owner for the development and expansion of conference/ballroom space at
the JW Marriott Desert Springs.
2. Authorize the City Attorney to make non-substantive changes to the Agreement.
3. Authorize the City Manager to execute said Agreement.
BACKGROUND/ANALYSIS:
The JW Marriot Desert Springs occupies 450 acres in the City of Palm Desert and is the premier
resort property for the Coachella Valley. With more than 880 rooms, two (2) 18 -hole golf courses,
spa, and restaurants, the resort is the largest attraction of convention/ballroom space in the
Coachella Valley. The resort is also the largest employer in the City of Palm Desert. The resort
continues to attract large convention/ballroom space events; however, it is f acing new
competition from other resorts outside of California and near coastal communities within the
State. To retain existing conventions, and attract new convention users, the property owners
seek to expand their offerings of convention/ballroom space with a 25,000 square foot
expansion. This new convention space will replace an existing ancillary and temporary tent
structure used to supplement current convention operations.
To support the construction cost of the new convention/ballroom space the own ers have
approached the City of Palm Desert for assistance in funding of the new building. The proposal
for assistance includes the lesser of 50% reimbursement of new TOT generation or $10 million
and beginning only once the convention/ballroom expansion is complete and receives a
Certificate of Occupancy.
The provisions contained within the DRAFT TOT Sharing Agreement include:
The City’s participation of up to 50% of project financing cost through a Transient
Occupancy Tax Rebate (TOT).
The TOT Rebate is based on historical TOT generation from the site based on a look-back
clause that allows the City to establish the TOT baseline on the previous 3-years of TOT
generation once the structure is complete and receives a Certificate of Occupancy.
TOT above this baseline will be split 50/50 between the City and Desert Springs Marriott;
however, all TOT generation below the baseline will be 100% retained by the City.
Page 833 of 851
City of Palm Desert
JW Marriot TOT Sharing Agreement
Page 2 of 2
The 50/50 split will cease once half (50%) of project cost are remitted back to Desert
Springs. Based on Desert Springs assumptions for construction cost, the City has agreed
that the total reimbursement will not exceed $10 million.
The term of this agreement is 15-years from issuance of the Certificate of Occupancy for
the expanded convention/ballroom space.
The City will need to verify actual construction costs of the project to determine maximum of
the 50/50 split.
If approved, ownership will submit entitlement and construction documents to move forward with
expansion of the convention space.
Strategic Plan:
Economic Development: Priority 1 – Expand job and business creation opportunities.
Economic Development: Priority 3 - Create and attract entertainment and events to
enhance and expand the Palm Desert economy and lifestyle.
Land Use, Housing and Open Space: Priority 4 – Utilize progressive land use policies
and standards to support ongoing and future needs.
Tourism and Marketing: Priority 4 - Support the city’s tourism industry through
enhancement of its marketing efforts with an allocation of additional city resources, the
development of partnerships, and coordination of existing efforts.
Project Description:
The TOT Sharing Agreement will only apply to the incremental TOT generated once the
expansion of the conventions/ballroom space is complete. As such, the only consideration, at
this time, is the potential reimbursement of TOT to the property owner once the expansions
construction is complete and occupied.
Environment Review:
The approval of a TOT Sharing Agreement is not a project under the California Environmental
Quality Act (CEQA) and is not subject to a CEQA review. A separate public hearing by the
Planning Commission for entitlement review of the expanded conference/ballroom space will be
considered at a later date.
FINANCIAL IMPACT:
Approval of staff’s recommendation will not impact the current TOT received . There is no fiscal
impact to what the City currently receives from TOT from the JW Marriott Desert Springs. The
tax sharing agreement only impacts the increase in TOT generation upon successful completion
of the project. From that point forward, 50% of new TOT generation, not to exceed $10 million
over 15-years, will be remitted back to the property owner.
ATTACHMENTS:
1. DRAFT TOT Sharing Agreement
2. Public Hearing Notice
Page 834 of 851
CITY OF PALM DESERT
PUBLIC HEARING NOTICE
NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BEFORE THE CITY
COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, TO CONSIDER APPROVAL OF A
TRANSIENT OCCUPANCY TAX (TOT) SHARING AGREEMENT BETWEEN THE CITY OF
PALM DESERT AND NEWAGE DESERT SPRINGS, LLC
PROJECT LOCATION/DESCRIPTION:
PROJECT LOCATION: 74-855 Country Club, Palm Desert, CA, 92260
PROJECT DESCRIPTION: The JW Marriott is proposing to expand their conference/ballroom
space and replace the existing tent structure located south of the existing conference/ballroom
space. Newage Desert Springs, LLC, and the City of Palm Desert, are proposing to participate in
a TOT Sharing Agreement, in which, the City will reimburse Newage Desert Springs, LLC, 50%
of TOT generation over the next 15-years, in an amount not to exceed the greater of $10,000,000
or 50% of the total cost of the project. Plans for the expansion will be brought forward for planning
entitlements and design at a later date pending approval of this agreement.
PUBLIC HEARING: NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Desert,
California, will hold a Public Hearing at its meeting on August 24, 2023. The City Council meeting
begins at 4:00 p.m. in the Council Chamber located at 73510 Fred Waring Drive, Palm Desert,
California. Pursuant to Assembly Bill 361, this meeting may be conducted by teleconference.
There will be in-person access to the meeting location. Options for remote participation will be
listed on the Posted Agenda for the meeting at: https://www.palmdesert.gov/our-city/mayor-and-
city-council-/city-council-meeting-information-center
REVIEW OF PROJECT INFORMATION: Information concerning the proposed TOT Sharing
Agreement is available for review in the Office of the City Clerk at 73510 Fred Waring Drive, Palm
Desert, California, during regular business hours, and on the City’s website at
https://www.palmdesert.gov/our-city/mayor-and-city-council-/city-council-meeting-information-
center.
COMMENT ON THIS APPLICATION: Response to this notice may be made as follows:
Written comments may be submitted to the City Council by letter to the address below or
email at CouncilMeetingComments@palmdesert.gov. Transmittal prior to the start of the
meeting is required. Any correspondence received during or after the meeting will be
distributed to the City Council as soon as practicable and retained for the official record.
Any challenge of the proposed project in court may be limited to raising only those issues raised
at the public hearing described in this notice, or in written correspondence delivered to the City
Clerk at, or prior, to the public hearing. (Government Code Section 65009[b][2]).
Si necesita ayuda con esta notificación por favor llame a la Ciudad de Palm Desert y
comuníquese con Gloria Sanchez (760) 346-0611 ext. 354.
PUBLISH: DESERT SUN ANTHONY J. MEJIA, MMC, CITY CLERK
AUGUST 12, 2023 CITY OF PALM DESERT, CALIFORNIA
Page 835 of 851
Page 836 of 851
Transient Occupancy Tax Sharing Agreement Page 1
TRANSIENT OCCUPANCY TAX SHARING AGREEMENT
THIS TRANSIENT OCCUPANCY TAX SHARING AGREEMENT (“Agreement”) dated as of
August 24, 2023, is entered into by and between the City of Palm Desert, a California charter city
(“City”), and Kam Sang Company, Inc., a California corporation, dba JW Marriott Desert Springs
Resort & Spa (“Operator”).
RECITALS
A. The general welfare of the City depends in large measure upon the facilities, goods and
services that businesses make available to the public, which, in turn, generate tax revenue to help
fund necessary municipal services for the City and its residents.
B. The Operator, which specializes in luxury resort hotels and facilities desires to expand its
conference capacity at its JW Marriott Desert Springs Resort & Spa property located at 74-855
Country Club Drive, Palm Desert CA 92260, by constructing new ballroom that will add an
additional 25,000 square feet of space available for conferences, weddings and other rental
activities.
C. The City recognizes that the expansion of a resort hotel and spa in Palm Desert would (i)
attract increased visitors to the City; (ii) contribute to the economic vitality of the City; (iii) expand
the City’s tax base; (iv) generate increased transient occupancy, sales and use taxes and other
revenue to the City; (v) create and provide additional jobs in the City; and (vi) otherwise improve
economic and physical conditions in the City. Taken together, these benefits would enhance the
quality of facilities, goods and services available to the City and its residents, such as police, fire,
street maintenance, and parks and recreation programs.
D. The Palm Desert General Plan 2035 includes the goal of encouraging the development of
tourism and leisure opportunities that attract residents and visitors, including a full-service resort
that incorporates local amenities and attractions, such as the mineral hot springs.
E. The City desires to encourage and incentivize such expanded operations in the City to assist
the City in achieving its economic development goals by sharing a portion of the transient
occupancy tax revenues generated by the resort with the Operator.
F. The City is authorized under California law to provide economic incentives to businesses
for economic development purposes.
G. Prior to entering into this Agreement, and pursuant to Government Code section 53083, the
City Council of the City provided public notice of an Economic Development Subsidy report
containing all requisite information, including the name and address of the Operator, a description
of the subsidy, and projected tax revenue. The Economic Development Subsidy Report is attached
hereto as Exhibit A.
H. By its approval of this Agreement, the City Council of the City of Palm Desert has made a
discretionary finding and determination that this Agreement serves a valid public purpose through
expanding economic opportunities in the City, expanding the City’s employment base, and
Page 837 of 851
Transient Occupancy Tax Sharing Agreement Page 2
generating transient occupancy, use and sales taxes and other revenue that the City can utilize to
fund general governmental services.
NOW, THEREFORE, based upon the foregoing Recitals and in consideration of the mutual
covenants and conditions hereinafter set forth, the parties agree as follows:
AGREEMENT
1. DEFINITIONS
The capitalized terms and words used in this Agreement shall have the following meanings unless
expressly provided to the contrary.
1.1 “Ballroom” means a newly constructed multi-purpose room of not less than 25,000
square feet in size that may be rented for a variety of events including, but not limited to,
conferences, weddings, and other social and business functions.
1.2 “Baseline TOT Amount” means the amount established from the cumulative
average of the past 3 years of transient occupancy tax payments by Operator to the City with such
calculation made upon issuance of a certificate of occupancy for the Ballroom.
1.3 “Commencement Date” means the first day of the month following the certificate
of occupancy for the new Ballroom at the Property.
1.4 “Event of Default” means any event so designated in this Agreement.
1.5 “Economic Development Subsidy” means a payment made by the City to the
Operator in an amount equal to fifty percent (50%) of the TOT remitted to the City by the Operator
for that period in excess of the Baseline TOT Amount.
1.6 “Fiscal Year” means the City’s fiscal year of July 1 to June 30.
1.7 “Laws” means all applicable Federal, State, or local statutes, laws, ordinances,
regulations, orders, and rules.
1.8 “Maximum Payment” means the lesser of Ten Million Dollars ($10,000,000.00) or
fifty percent (50%) of Project Costs.
1.9 “Operating Period,” means the period beginning with the Commencement Date and
continuing for a period of fifteen (15) years, or earlier termination of this Agreement as provided
hereunder.
1.10 “Party” means any party to this Agreement. The “Parties” shall be all parties to this
Agreement.
1.11 “Penalty Assessments” means penalties, assessments, collection costs and other
costs, fees, or charges resulting from late or delinquent payment of Transient Occupancy Tax and
which are levied, assessed, or otherwise collected from the Operator.
Page 838 of 851
Transient Occupancy Tax Sharing Agreement Page 3
1.12 “Person” means any entity, whether an individual, trustee, corporation, partnership,
trust, unincorporated organization, governmental agency or otherwise.
1.13 “Project Costs” means the total funds expended to complete the construction of the
Ballroom but does not include any indirect costs.
1.14 “Property” means 74-855 Country Club Drive, Palm Desert CA 92260 (APNs:
624-040-034, 624-300-002, 624-300-004, 624-310-001, 624-310-002, 624-310-003, 624-310-004,
624-320-002, 624-320-003, and 624-360-011).
1.15 “Resort” means a luxury resort, including a hotel, spa, and other guest amenities,
owned by the Operator and operating at the Property as contemplated by and pursuant to the terms
of this Agreement.
1.16 “Transient Occupancy Tax” or “TOT” means an amount attributable to the taxable
room stay generated by the Resort and remitted to the City pursuant to the TOT Law. TOT shall
not include Penalty Assessments, sales tax, any business improvement district (BID) fees or taxes,
or any other taxes or fees levied by, collected for, or allocated to a Federal, State or local
government or other entity.
1.17 “TOT Law” means (i) California Revenue and Taxation Code section 7280 granting
cities and counties authority to levy TOT; (ii) State of California County Tax Collectors Reference
Manual Chapter 13000: Transient Occupancy Tax, and any successor law thereto; (iii) Palm Desert
Municipal Code Chapter 3.28; and (iv) any other Laws authorizing the City to levy TOT.
2. OPERATOR’S OBLIGATIONS
2.1 Agreement Contingencies. The validity of this Agreement is contingent upon the
Operator completing construction of the Ballroom and obtaining from the City a certificate of
occupancy . This Agreement is further contingent upon the Operator maintaining any government
approvals required to operate the Resort at the Property. The City’s approval of this Agreement
does not have any binding effect on any future land use applications or other approvals that the
City may consider relating to the development of the Property or operation of a Resort on the
Property.
2.2 Resort Operations. The Operator hereby covenants and agrees that it will continue
throughout the term of this Agreement, to operate its hospitality business that offers resort room
stays, spa, dining, as and other guest amenities and programs.
2.3 Indemnification. The Operator shall indemnify, defend, and hold harmless the City
and its officers, employees and agents, from and against all liabilities, obligations, claims, damages,
penalties, causes of action, judgments, costs and expenses (including, without limitations,
reasonable attorneys’ fees and expenses) (collectively “Claims”) imposed upon or incurred by or
asserted against the City arising out of any act or omission of the Operator and the Resort; provided,
however, that the aforesaid obligations of the Operator shall not apply to the extent any Claim
results from the active negligence or intentional misconduct of the City, or any of the City’s
officers, employees agents or contractors. In the event that any action, suit or proceeding is brought
against the City by reason of any such occurrence, the Operator, upon City’s request and using
Page 839 of 851
Transient Occupancy Tax Sharing Agreement Page 4
counsel approved by the City, will defend such action, suit or proceeding at the Operator’s sole
cost and expense.
2.4 Compliance with Laws. The Operator shall comply with all Laws concerning its
organization, existence and transactions in operating the Resort at the Property and performing its
obligations hereunder.
2.5 Anti-discrimination. The Operator shall not discriminate against any
employee or
applicant for employment because of age, sex, marital status, race, handicap, color religion creed,
ancestry, national origin, or any other class protected by Law.
2.6 Operator’s Representations and Warranties. The Operator makes the
following
representations and warranties as of the effective date of this Agreement:
2.6.1 No Litigation. There is no litigation, action, suit or other proceeding pending
or threatened against the Operator that may adversely affect the validity or
enforceability of this Agreement. To the best of the Operator’s knowledge,
the Operator is not in violation of any Law, the effect of which would prohibit
the Operator from performing its obligations hereunder.
2.6.2 Authority. The Operator has the full power and authority to enter into this
Agreement and all authorizations and approvals required to make this
Agreement binding upon the Operator have been duly obtained.
2.6.3 No Breach. To the Operator’s knowledge, none of the undertakings contained
in this Agreement violate any applicable Law, conflicts with, or constitutes
a breach or default under any agreement by which the Operator is bound or
regulated.
2.6.4 Warranty against Payment of Consideration for Agreement. The Operator has
not paid or given, and will not pay or give, to any third Person, any money
or other consideration for obtaining this Agreement, other than normal costs
of conducting business and costs of professional services such as
accountants and attorneys.
2.7 Release of City Officials. No member, official, agent, employee, or attorney
of the
City shall be personally liable to the Operator, or any successor in interest of the Operator, in the
event of any default or breach of this Agreement by the City, or for any amount which may become
due to the Operator or its successors. The Operator hereby waives and releases any Claim it may
have personally against the members, officials, agents, employees, consultants, or attorneys of the
City with respect to any default or breach of this Agreement by the City or for any amount that
may become due to the Operator or its successors.
2.8 Monthly Report & TOT Remittance. The Operator shall submit a monthly
report
Page 840 of 851
Transient Occupancy Tax Sharing Agreement Page 5
to the City’s Finance Director. Together with the monthly report, the Operator shall remit a monthly
TOT payment to the City’s Finance Director in accordance with the requirements of th e City’s
Transient Occupancy Tax Ordinance (Palm Desert Municipal Code Chapter 3.28).
2.9 Annual Report. The Operator shall submit an annual report to the City’s Finance
Director each Fiscal Year containing the following information:
2.9.1 Name of the Operator and Resort;
2.9.2 Date of the Transient Occupancy Tax Sharing Agreement;
2.9.3 Transient Occupancy Tax revenue owed to the City during the reporting
period; and
2.9.4 The number of full-time, part-time and temporary jobs generated by the
Resort during the reporting period.
2.10 Expiration of Operating Period. The Operator agrees that upon the expiration of the
Operating Period, or earlier termination of this Agreement, all TOT revenue sharing between the
Parties shall cease, and the City shall be entitled to receive one hundred percent (100%) of all TOT
generated by the Resort.
3. CITY’S OBLIGATIONS
3.1 Payment of Economic Development Subsidy. The Economic Development Subsidy
shall be payable to Operator by City in annual installments within one hundred twenty (120) days
subsequent to the end of the City’s fiscal year and in accordance with the City Finance
Department’s procedures as they may change from time to time. Payment of the Economic
Development Subsidy shall continue for the duration of the Operating Period, or earlier termination
of this Agreement.
3.2 City’s Obligation to Provide Assistance Conditional on TOT Generation. The
City’s obligation to provide the Operator with the Economic Development Subsidy payment
pursuant to Section 3.1 of this Agreement, is conditioned upon the Resort generating TOT and the
Operator remitting the appropriate amount of TOT owed to the City for each month during the
Operating Period, or earlier termination of this Agreement.
3.3 Recapture of Economic Development Subsidy Payments. If, at any time during or
after the term of this Agreement, a court of competent jurisdiction determines that all or any portion
of the TOT received by the City was improperly allocated and/or paid to the City, and requires
redistribution, repayment or offsets against any future TOT payments, or otherwise recaptures from
the City any such TOT revenues determined to have been improperly allocated or paid, then the
Operator will, within thirty (30) days after written demand from the City, repay all Economic
Development Subsidy payments (or applicable portions thereof) paid to the Operator which are
attributable to such repayment, offset, or recaptured TOT. If the Operator fails to make such
repayment within thirty (30) days of the City’s written demand, then such obligation will accrue
interest from the date of the City’s original written demand at the then-maximum legal rate imposed
by the California Code of Civil Procedure on prejudgment monetary obligations, compounded
Page 841 of 851
Transient Occupancy Tax Sharing Agreement Page 6
monthly, until paid. Nothing in this Section 3.3 will require repayment by the Operator of any
Economic Development Subsidy payments made or received with respect to TOT for any periods
other than those periods for which a court of competent jurisdiction has required redistribution,
repayment offset, or recapture by or against City.
3.4 Legal Challenge. Should any third party successfully challenge the validity of this
Agreement through a taxpayer suit which results in a final judgment in favor of said third party,
either Party may terminate this Agreement upon thirty (30) days written notice to the other Party.
Each Party agrees to vigorously defend any such legal challenges, including appeals of adverse
court ruling where appropriate. In the event of such legal challenge, each Party will be responsible
for all of its own costs and expenses, including attorneys’ fees and expert witnesses.
4. DEFAULTS AND REMEDIES
4.1 Events of Default. Any of the following shall initiate an Event of Default for
purposes of this Agreement:
4.1.1 The Operator materially breaches any of its obligations under Section 2 of this
Agreement.
4.1.2 The City fails to timely make an Economic Development Subsidy payment to
the Operator, once the accuracy of the amount is verified, pursuant to its
obligation under this Agreement.
When any of the initiating events described in this Section 4.1 occur, the City or the Operator may
give the other Party written notice to cure. Where such act or omission is not cured by the breaching
Party within thirty (30) days after that Party’s receipt of written notice that such obligation was not
performed, it shall constitute an Event of Default; provided that, if cure cannot reasonably be
effected within such 30-day period, such failure shall not be an Event of Default so long as the Party
promptly (in any event, within ten (10) days after receipt of such notice) commences cure and
notifies the other Party of its intent to cure, and thereafter diligently (in any event within a reasonable
time after receipt of such notice) prosecutes such cure to completion.
4.2 Remedies Upon Default. Upon the occurrence of any Event of Default and
thirty
(30) days after written notice of such default, and after a reasonable opportunity to cure such
default, if the defaulting Party has not cured the Event of Default, the non-defaulting Party may
terminate this Agreement and/or file any action available in law or equity against the defaulting
Party.
5. GENERAL PROVISIONS
5.1 Time of the Essence. Time is of the Essence under this Agreement and all
Parties’
obligations hereunder.
5.2 Venue. In the event of any litigation hereunder, all such actions shall be
instituted
Page 842 of 851
Transient Occupancy Tax Sharing Agreement Page 7
in the Superior Court of Riverside, State of California, or in an appropriate municipal court in the
County of Riverside, State of California or an appropriate Federal District Court in the Central
District of California.
5.3 Applicable Law. The laws of the State of California shall govern the
interpretation
and enforcement of this Agreement.
5.4 Execution in Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be an original, but all of which shall constitute one and the same
instrument.
5.5 Attachments Incorporated. Any attachment to this Agreement is
incorporated
herein by this reference.
5.6 Copies. Any executed copy of this Agreement shall be deemed an original
for all
purposes.
5.7 Severability. If any one or more of the provisions contained herein shall for
any
reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability, unless it affects the substantial rights of a Party or defeats the purpose of this
Agreement, shall not affect any other provision of this Agreement, but this Agreement shall be
construed as if such invalid, illegal or unenforceable provision has not been contained herein.
5.8 Interpretation. The language in all parts of this Agreement shall in all cases
be
construed as a whole according to its fair meaning, and not strictly for or against any Party. When
the context of this Agreement requires, the neutral gender includes the masculine, the feminine, a
partnership or corporation of joint venture or other entity, and the singular includes the plural.
5.9 No Partnership or Joint Venture. The Parties hereto agree that nothing
contained
in this Agreement shall be deemed or construed as creating a partnership, joint venture, or
association between the City and the Operator, or cause the City or the Operator to be responsible
in any way for the debts or obligations of the other Party, and no other provision contained in this
Agreement nor any acts by the Parties hereto shall be deemed to create any relationship between the
City and the Operator other than that of contracting Parties. Further, nothing herein shall give or is
intended to give any rights of any kids to any Person not an express Party hereto.
5.10 Integration. This Agreement, including the attachments, if any, attached hereto, is
the entire Agreement between and final expression of the Parties, and there are no agreements or
representations between the Parties except as expressed herein. All prior negotiations and
agreements between the City and the Operator with respect to the subject matter hereof are
superseded by this Agreement. Except as otherwise provided herein, no subsequent change or
addition to this Agreement shall be binding unless in writing and signed by the Parties hereto.
Page 843 of 851
Transient Occupancy Tax Sharing Agreement Page 8
5.11 Non-waiver. None of the provisions of this Agreement shall be considered waived
by any Party except when such waiver is given in writing. The failure of any Party to insist in any
one or more instances upon strict performance of any of its rights hereunder shall not be construed
as a waiver of any such provisions or the relinquishment of any such rights for future, but the same
shall continue and remain in full force and effect.
5.12 Attorneys Fees. In the event of the bringing of an arbitration, action or suit by a Party
hereto against another Party hereunder by reason of any breach of any covenants or agreements or
intentional inaccuracies in any of the representations and warranties on the part of the other Party
arising out of this Agreement or any other dispute between the Parties concerning this Agreement,
each Party will be responsible for all of its own costs and expenses, including attorneys’ fees and
expert witnesses.
5.13 Assignment. Except for a one-time assignment and transfer, at the time the Operator
purchases the Property, to a newly formed single purpose entity that is controlled by, and an
affiliate of, the Operator, which City hereby approves, no portion of this Agreement may be
assigned by the Operator without the express written consent of the City, nor may any interest in
this Agreement be transferred by the Operator without the express written consent of the City.
5.14 Notices. Any notice, approval, demand or other communication required or desired
to be given pursuant to this Agreement shall be in writing and shall be effective upon personal
service (including by means of professional messenger service) or, five (5) days after mailing via
United States first-class mail, or two (2) days after mailing via Federal Express or other similar
reputable overnight delivery service. Any notice shall be address as set forth below:
For CITY: Todd Hileman, City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
Phone: (760) 461-6065
Facsimile: (760)
For OPERATOR: Ronnie Lam, President
Kam Sang Company
411 East Huntington Drive
Arcadia, CA 91006
Phone: (626) 446-2988
Facsimile: (626)
Page 844 of 851
Transient Occupancy Tax Sharing Agreement Page 9
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the
day and year first above written.
CITY: OPERATOR:
City of Palm Desert, Kam Sang Company, Inc.,
a California charter city a California corporation,
dba The Palm Desert Hot Springs Resort & Spa
By: By:
Todd Hileman, City Manager Name:
Its:
ATTEST:
By:
Anthony Mejia, MMC, City Clerk
APPROVED AS TO FORM:
By: _____________________________
Leslie E. Devaney, City Attorney
By:
Name:
Its:
Robert Hargreaves, City Attorney
Page 845 of 851
Transient Occupancy Tax Sharing Agreement Page 10
EXHIBIT A
Economic Development Subsidy Report
Page 846 of 851
A-1
ECONOMIC DEVELOPMENT SUBSIDY REPORT
(GOVERNMENT CODE SECTION 53083)
REGARDING A TRANSIENT OCCUPANCY TAX SHARING AGREEMENT
BETWEEN THE CITY OF PALM DESERT
AND
NEWAGE DESERT SPRINGS, LLC, A DELAWARE LIMITED LIABILITY COMPANY,
DBA JW MARRIOTT DESERT SPRINGS RESORT & SPA
AND
IN CONNECTION WITH THE DEVELOPMENT OF A NEW BALLROOM FACILITY
TO BE LOCATED AT 74-855 COUNTRY CLUB DRIVE, PALM DESERT CA 92260
(APNS 624-040-034, 624-300-002, 624-300-004, 624-310-001, 624-310-002,
624-310-003, 624-310-004, 624-320-002, 624-320-003, AND 624-360-011).
Pursuant to Government Code Section 53083, the City Council of the City of Palm Desert must
hold a noticed public hearing and, prior to the public hearing, provide all of the following
information in written form available to the public including through the City’s website, regarding
a proposed economic development subsidy to be provided by the City of Palm Desert (“City”)
pursuant to a Transient Occupancy Tax (“TOT”) Sharing Agreement (“Agreement”) by and
between the City and Newage Desert Springs, LLC, a Delaware Limited Liability Company, dba JW
Marriott Desert Springs Resort & Spa (“Developer”).
This Economic Development Subsidy Report (“Report”) is being published on the City’s website
in advance of the public meeting to be held on August 24, 2023. The purpose of this Report is to
provide the information to inform the public about the subsidy provided under the Agreement,
as required pursuant to Government Code Section 53083. This Report shall remain available to
the public and posted on the City’s website until the end date of the economic development
subsidy, as further described in Section 2 below.
1. The name and address of all corporations or any other business entities, except for sole
proprietorships, that are the beneficiary of the economic development subsidy.
This Agreement is between the City and the Developer (Newage Desert Springs, LLC, a Delaware
limited liability company, dba JW Marriott Desert Springs Resort & Spa). The Developer will own
and operate the business benefitting from the economic development subsidy.
2. The start and end dates and schedule, if applicable, for the economic development subsidy.
The Agreement for the proposed Transient Occupancy Tax Revenue Sharing Agreement will go
before the City Council on August 24, 2023. The Agreement will commence on the first day of the
month following the issuance by the City of a certificate of occupancy for the new Ballroom at
the JW Marriott Desert Springs Resort & Spa, 74-855 Country Club Drive, Palm Desert, CA 92260
Page 847 of 851
A-2
The Agreement will end fifteen (15) years from the commencement date, unless earlier
terminated pursuant to the terms of the Agreement, or upon the earlier payment of the lesser
of Ten Million Dollars ($10,000,000.00) or fifty percent (50%) of the total funds expended by the
Developer to complete the construction of the new Ballroom, but does not include any indirect
costs.
3. A description of the economic development subsidy, in cluding the estimated total amount of
the expenditure of public funds by, or of revenue lost to, the local agency as a result of the
economic development subsidy.
The economic development subsidy to be provided by the City consists of payments to be made
by the City to the Developer, in an amount equal to fifty percent (50%) of the TOT remitted to
the City by the Developer for a period of fifteen (15) years not to exceed the lesser of Ten Million
Dollars ($10,000,000.00) or fifty percent (50%) of the total funds expended by Newage Desert
Springs, LLC, to complete the construction of the new Ballroom but does not include any indirect
costs.
At the end of the payout period, all future TOT revenues would be retained by the City.
4. A statement of the public purposes for the economic development subsidy.
The public purposes for the economic development subsidy include: (i) the attraction of
increased visitors to the City; (ii) the contribution to the economic vitality of the City; (iii)
expansion of the City’s tax base; (iv) generation of increased transient occupancy, sales and use
taxes and other revenue to the City; (v) creation and provision of additional jobs in the City; and
(vi) otherwise improve economic and physical conditions in the City. Taken together, these
benefits would enhance the quality of facilities, goods and services available to the City and its
residents, such as police, fire, street maintenance, and parks and recreation programs.
5. The projected tax revenue to the local agency as a result of the economic development
subsidy.
The incremental Transient Occupancy Tax revenue projected to be received by the City as a result
of the economic subsidy is $57,600,000 over the fifteen (15) year term of the Agreement.
6. Estimated number of jobs created by the economic development subsidy, broken down by full-
time, part-time, and temporary positions.
It is anticipated that a total of 50 full-time and 25 part-time positions will be created as a result
of the City’s economic development subsidy of the development of the new Ballroom at the JW
Marriott Desert Springs Resort & Spa.
Page 848 of 851
JW MARRIOTT
DESERT SPRINGS
RESORT AND SPA
City Council August 24, 2023Page 849 of 851
JW MARRIOTT DESERT SPRINGS
RESORT AND SPA
- L ARGEST RESORT IN THE COACHELLA VALLEY
- OVER 800 -ROOMS
- T WO (2) 18 -HOEL GOLF COURSE
- SPA
- SEVERAL RESTAURANTS
- L ARGEST CONVENTION/BALLROOM SPACE
- L ARGEST EMPLOYER
Proposal: TOT Sharing Agreement to
expand the ballroom space by 25,000 sq. ft.
Page 850 of 851
TOT SHARING AGREEMENT
•City to reimburse 50% of the TOT increment generated over a 15 -year period up to $10M
•The TOT increment is a baseline, established by the average TOT generation over the past 3 -years
•Anything above this baseline will be reimbursed at 50%
•Once 50% of project financing cost are recouped the City will retain 100% TOT
•Project cost will be verified upon completion
Page 851 of 851