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Agenda Package - Palm Desert City Council - Regular Meeting_May22_2025
PALM DESERT CITY COUNCIL MEETING AGENDA Thursday, May 22, 2025 Closed Session 3:30 p.m.; Regular Session 4:00 p.m. Council Chamber, City Hall 73-510 Fred Waring Drive Palm Desert, California REVISED AGENDA Added Presentation 9c. This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority and the Palm Desert Board of Library Trustees. 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: CityClerk@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 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 three options listed on the first page of this agenda. 3.RECESS TO CLOSED SESSION 4.CLOSED SESSION AGENDA The following items will be considered in closed session: 4.a Closed Session Meeting Minutes: May 8, 2025 4.b Conference with Legal Counsel regarding Initiation of Litigation pursuant to Government Code Section 54956.9(d)4 [Number of potential cases: 1] 4.c Conference With Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) (One potential case) Canales v. City of Palm Desert, Riverside County Superior Court Case No. CVPS2502724 5.ROLL CALL - REGULAR MEETING - 4:00 P.M. 6.PLEDGE OF ALLEGIANCE Councilmember Quintanilla 7.INSPIRATION Councilmember Pradetto 8.REPORT OF CLOSED SESSION City Attorney Shah 9.AWARDS, PRESENTATIONS, AND APPOINTMENTS 9.a PROCLAMATION: BUILDING AND SAFETY MONTH 11 9.b PROCLAMATION: PUBLIC WORKS WEEK 13 9.c PRESENTATION: RIVERSIDE COUNTY ANIMAL SERVICES UPDATE - TY PEABODY 10.CITY MANAGER COMMENTS 10.a SHERIFF DEPARTMENT UPDATE 11.MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Palm Desert City Council Meeting Agenda May 22, 2025 2 12.NONAGENDA PUBLIC COMMENTS 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 three 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. RECOMMENDATION: To approve the consent calendar as presented. 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES 15 RECOMMENDATION: Approve the Minutes of May 8, 2025. 13.b APPROVAL OF WARRANT REGISTERS 27 RECOMMENDATION: Approve the warrant registers issued for the period 5/1/2025 and 5/8/2025. 13.c APRIL 2025 PROCUREMENT REPORT 53 RECOMMENDATION: Receive and file the monthly Procurement Report for April 2025. 13.d RECEIVE AND FILE APPLICATIONS FOR ALCOHOLIC BEVERAGE LICENSES 57 RECOMMENDATION: Receive and file the application for Alcoholic Beverage License for Jacksons Food Stores Jackson 6843, 72300 Highway 111, Palm Desert 13.e RESOLUTION AMENDING AND RESTATING APPOINTMENTS TO THE BOARD OF DIRECTORS OF THE PALM DESERT RECREATION FACILITIES CORPORATION (PDRFC) 61 RECOMMENDATION: Adopt a resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND RESTATING THE APPOINTMENTS OF GINA NESTANDE, EVAN TRUBEE, PHIL SMITH, AND OSCAR ARMIJO TO THE BOARD OF DIRECTORS OF THE PALM DESERT RECREATION FACILITIES CORPORATION, AND RESCINDING ANY PRIOR RESOLUTIONS IN CONFLICT HEREWITH.” Palm Desert City Council Meeting Agenda May 22, 2025 3 13.f APPROVE RESOLUTION REVISING FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT 95 RECOMMENDATION: Adopt a resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REVISING THE ESTABLISHED APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2024- 25." 13.g APPROVE AMENDMENT NO. 2 TO CONTRACT NO. C46710 WITH PARK CONSULTING GROUP, INC. FOR CONSUTLING AND PROJECT MANAGEMENT SERVICES FOR THE IMPLEMENTATION OF CLARITI LAND MANAGEMENT SYSTEM 103 RECOMMENDATION: Approve Amendment No. 2 to Contract No. C46710 with Park Consulting Group, Inc. of Irvine, California, for Consulting and Project Management Services for the Implementation of Clariti Land Management System to increase compensation in an amount not to exceed $299,880. 1. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 2. Authorize the City Manager to execute the amendment and any other documents necessary to effectuate this action. 3. 13.h APPROVE MODIFIED CONTRACT AND ADDENDUM FOR AFFORDABLE HOUSING COMPLIANCE AND PROPERTY MANAGEMENT SERVICES WITH NATIONAL COMMUNITY RENAISSANCE 141 RECOMMENDATION: Approve modifications to the contract and addendum for Affordable Housing Compliance and Property Management Services for the Housing Authority (“Authority”)-owned Properties with National Community Renaissance. 13.i APPROVE AMENDMENT NO. 1 TO CONTRACT HA48770 WITH VM POOL REPAIR AND SERVICE, INC., TO INCREASE ADDITIONAL SERVICES IN FISCAL YEAR 2024-25 AT PALM DESERT HOUSING AUTHORITY PROPERTIES 187 RECOMMENDATION: Approve Amendment No. 1 to contract HA48770 with V.M. Pool Repair and Service, Inc., to increase the not to exceed (NTE) amount for additional services in the amount of $20,000 for an aggregate NTE of $35,000. 1. Authorize Special Counsel to make any necessary non-monetary changes to the agreement. 2. Authorize the Executive Director to execute an amendment to the agreement and to take any necessary actions to effectuate the actions taken herewith. 3. Palm Desert City Council Meeting Agenda May 22, 2025 4 13.j AUTHORIZE AN AMENDMENT TO CONTRACT NO. C46680 WITH INTERWEST CONSULTING GROUP, INC., EXTENDING THE CONTRACT TERM THROUGH DECEMBER 31, 2025, WITH OPTION FOR ONE ADDITIONAL ADMINISTRATIVE EXTENSION 225 RECOMMENDATION: Authorize an amendment to Contract No. C46680 with Interwest Consulting Group, Inc., extending the contract term through December 31, 2025, and allowing for one additional one-year automatic extension, if necessary. 1. Authorize the City Attorney to make any necessary non-monetary changes to the agreement. 2. Authorize the City Manager or designee to execute the amendment and to review and approve all documents necessary to effectuate this agreement pursuant to Section 3.30.170 of the Palm Desert Municipal Code. 3. 13.k AWARD CONTRACT TO VINTAGE LANDSCAPE, OF BERMUDA DUNES, CA, FOR LANDSCAPE MAINTENANCE AREA NO. 16 AND ADDITIONAL WORK (PROJECT NO. MLS00016) 295 RECOMMENDATION: Award a maintenance services agreement with Vintage Landscape of Bermuda Dunes, California, for Landscape Maintenance Area No. 16 at an annual cost of $504,600, subject to CPI increases, for a three-year term, with two one-year extension options. 1. Authorize additional work for street maintenance and landscape services in an annual amount not to exceed $100,920. 2. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 3. Authorize the City Manager to execute agreement, amendments, changes, and all documents necessary to effectuate this action, in accordance with Section 3.30.170 of the Palm Desert Municipal Code. 4. 13.l RECEIVE AND FILE THE 2025 COMMERICAL BROKER’S REPORT 369 RECOMMENDATION: Receive and file the 2025 Commercial Broker’s Report. 13.m AUTHORIZE AN AMENDMENT TO INCREASE THE CITY’S CONTRACT WITH FG CREATIVE FOR EL PASEO PARKING & BUSINESS IMPROVEMENT DISTRICT (EPPBID) MARKETING SERVICES BY $50,000, FOR A TOTAL OF $325,000 FOR FISCAL YEAR 2024-25 381 RECOMMENDATION: Authorize Amendment No. 5 to El Paseo Parking and Business Improvement District (EPPBID) Contract No. C43370 with FG Creative to increase compensation by $50,000, for a total contract amount not to exceed $325,000 for Fiscal Year 2024-25. 1. Authorize the City Manager to execute the amendment.2. Palm Desert City Council Meeting Agenda May 22, 2025 5 13.n AWARD CONTRACT NO. C44200D TO AMERICAN LANDSCAPE, INC., OF CANOGA PARK, CALIFORNIA, FOR THE MOUNTAIN VIEW GOLF COURSE TURF REDUCTION PROJECT (PROJECT NO. MLS00005) 431 RECOMMENDATION: Award Contract No. C44200D to American Landscape, Inc., of Canoga Park, California, for the Mountain View Golf Course Turf Reduction Project at Desert Willow Golf Resort (DWGR) in the amount of $1,766,084.80. 1. Authorize the Finance Department to set aside 10% contingency in the amount of $176,600 for unforeseen circumstances. 2. Appropriate $1,942,685 from the unobligated Golf Course Capital Fund Balance to Account No. 4414195-4809200, DWGR Capital. 3. Authorize the City Attorney to make any necessary non-monetary changes to the agreement. 4. Authorize the City Manager to execute the agreement, approve written contract change order requests up to the contingency amount, and any documents necessary to effectuate the actions taken herewith. 5. Authorize the City Manager to execute the Notice of Completion (NOC) and authorize the City Clerk to file the NOC upon satisfactory completion of the project. 6. 13.o AWARD CONSTRUCTION CONTRACT TO AMERICAN ASPHALT SOUTH, INC., FOR THE 2025 SLURRY SEAL PROJECT, PROJECT NO. CSL00001 471 RECOMMENDATION: Award a construction contract to American Asphalt South, Inc., of Riverside, CA, in the amount of $2,710,175 for the 2025 Slurry Seal Project (Project No. CSL00001 / Project ID 2025-IFB-181). 1. Appropriate $1,210,175 from unobligated Measure A funds to the project account no. 2134134-4400200. 2. Authorize the City Attorney to make any non-monetary changes to the agreement. 3. Authorize the City Manager to execute the agreement and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). 4. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the Project. 5. Palm Desert City Council Meeting Agenda May 22, 2025 6 13.p AWARD CONSTRUCTION CONTRACT TO VANCE CORPORATION FOR THE EL PASEO STREET REHABILITATION PROJECT, PROJECT No. CST00024 – CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION 497 RECOMMENDATION: Make a finding that the project is categorically exempt from further review under the California Environmental Quality Act (CEQA) Guidelines, pursuant to Class 1, Section 15301 (Existing Facilities), and authorize the City Engineer to submit a Notice of Exemption. 1. Award a construction contract, including Bid Alternates 1 and 2, to Vance Corporation of Beaumont, CA, in the amount of $4,803,488.92 for the El Paseo Street Rehabilitation Project (Project No. CST00024 / Project ID 2025-IFB-182). 2. Authorize an appropriation in the amount of $1,493,489 from Unobligated Gas Tax Funds to Account No. 2114314-4400200, and in the amount of $250,000 from Unobligated Capital Bond Funds to Account No. 4514679-5000102. 3. Authorize the Director of Finance to set aside 10% contingency in the amount of $480,000. 4. Authorize the City Attorney to make any non-monetary changes to the agreement. 5. Authorize the City Manager to execute the agreement and any written requests for change orders up to the contingency amount, amendments, and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). 6. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the project. 7. Palm Desert City Council Meeting Agenda May 22, 2025 7 13.q AWARD CONSTRUCTION CONTRACT TO MATICH CORPORATION FOR THE ELDORADO DRIVE REHABILITATION PROJECT, PROJECT NO. CST00023 527 RECOMMENDATION: Make a finding that the project is categorically exempt from further review under the California Environmental Quality Act (CEQA) Guidelines, pursuant to Class 1, Section 15301 (Existing Facilities), and authorize the City Engineer to submit a Notice of Exemption. 1. Award a construction contract to Matich Corporation, of San Bernardino, CA, in the amount of $2,777,695.60 for the Eldorado Drive Rehabilitation Project, which includes the Base Bid of $2,735,535.60 and Bid Alternate #1 in the amount of $42,160. 2. Authorize the Director of Finance to set aside a 10% contingency in the amount of $278,000. 3. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 4. Authorize the City Manager to execute the agreement and any written requests for change orders up to the contingency amount, amendments, and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). 5. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the Project. 6. 14.ACTION CALENDAR The public may comment on individual Action Items within the three-minute time limit. Speakers may utilize one of the three options listed on the first page of the agenda. 14.a APPROVAL OF REVISED DESIGN CONCEPT FOR CITYWIDE WAYFINDING SIGNAGE (PROJECT NO. MST00003) 557 RECOMMENDATION: Approve the revised wayfinding design concept for the Citywide Wayfinding Master Plan. 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 three options listed on the first page of this agenda. Palm Desert City Council Meeting Agenda May 22, 2025 8 15.a PUBLIC HEARING ON CITY VACANCIES, RECRUITMENT AND RETENTION EFFORTS AS REQUIRED BY ASSEMBLY BILL 2561 573 RECOMMENDATION: Hold a public hearing and receive and file the annual report on the status of City vacancies, recruitment, and retention efforts, as required by Assembly Bill 2561. 15.b INTRODUCE AN ORDINANCE AMENDING PALM DESERT MUNICIPAL CODE CHAPTER 5.10 SHORT TERM RENTALS, ADOPT A POLICY FOR SHORT-TERM RENTAL HARDSHIP EXTENSIONS FOR THE ESTATE RESIDENTIAL ZONE, AND MAKING A FINDING OF EXEMPTION UNDER CEQA 579 RECOMMENDATION: Hold a public hearing and introduce an ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPDATING CHAPTER 5.10 SHORT- TERM RENTALS TO UPDATE REGULATIONS FOR THE ESTATE RESIDENTIAL (RE) ZONE AND MAKING A FINDING OF EXEMPTION UNDER CEQA.” 1. Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A CONSOLIDATED POLICY FOR SHORT-TERM RENTAL HARDSHIP EXTENSIONS FOR THE TERMINATION AND AMORTIZATION OF SHORT-TERM RENTALS WITHIN THE HILLSIDE PLANNED RESIDENTIAL (HPR) AND ESTATE RESIDENTIAL (RE) ZONES.” 2. 16.INFORMATION ITEMS 17.ADJOURNMENT Palm Desert City Council Meeting Agenda May 22, 2025 9 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 “Meeting Agendas” 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, Michelle Nance, Acting 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/ Michelle Nance Acting Assistant City Clerk Palm Desert City Council Meeting Agenda May 22, 2025 10 , the City of Palm Desert is committed to recognizing that our growth and strength depends on the safety and essential roles our homes, buildings, and infrastructure play, both in everyday life and when disasters strike; and Whereas, our confidence in the resilience of these buildings that make up our community is achieved through the devotion of vigilant guardians: building and safety officials, fire prevention officials, architects, engineers, builders, tradespeople, design professionals, laborers, and others in the construction industry, who work year-round to ensure the safe construction of buildings; and Whereas, these guardians are dedicated members of the International Code Council, a nonprofit organization that brings together local, state, territorial, tribal and federal officials who are experts in the built environment to create and implement the highest-quality codes and standards to protect us in the buildings where we live, learn, work and play; and Whereas, these modern building codes and standards include safeguards to protect the public from hazards such as hurricanes, snowstorms, tornadoes, wildlife, floods, and earthquakes; and Whereas, Building Safety Month is sponsored by the International Code Council to remind the public about the critical role of our communities’ largely unknown protectors of public safety, our code officials, who assure us of safe, sustainable, and livable buildings that are essential to America great; and Whereas, the theme for Building Safety Month 2025 is “Game On!” It encourages us all to get involved and raise awareness about building safety on a personal, local, and global scale; and Whereas, each year, in observance of Building Safety Month, people all over the world are asked to consider the commitment to improve building safety, resilience, and economic investment at home and in the community, and to acknowledge the essential services provided to all of us; and NOW, THEREFORE, BE IT RESOLVED, that I, Jan C. Harnik, Mayor of the City of Palm Desert, on behalf of the City Council, do hereby proclaim the month of May 2025 as: Building Safety Month In the City of Palm Desert in recognition of the essential services provided by local, state, tribal, territorial, and federal building and fire prevention departments, in protecting lives and property. nd 11 12 WHEREAS, public works professionals focus on infrastructure, facilities, and services that are of vital importance to sustainable and resilient communities and to the public health, high quality of life, and well-being of the people of the City of Palm Desert; and , these infrastructure, facilities, and services could not be provided without the dedicated efforts of public works professionals, who are engineers, managers, and employees at all levels of government and the private sector, who are resp onsible for rebuilding, improving, and protecting our nation’s transportation, water supply, water treatment and solid waste systems, public buildings, and other structures and facilities essential for our citizens; and , it is in the public interest for the citizens, civic leaders, and children in the City of Palm Desert to gain knowledge of and maintain an ongoing interest and understanding of the importance of public works and public works programs in their respective communities; and , the year 2025 marks the 65th annual National Public Works Week sponsored by the American Public Works Association/Canadian Public Works Association. I, Jan C. Harnik, Mayor of the City of Palm Desert, along with the entire City Council, do hereby designate the week of May 18-24, 2025, as National Public Works Week and urge our citizens to join with representatives of the American Public Works Association and government agencies in activities, events, and ceremonies designed to pay tribute to our public works professionals, engineers, managers, and staff and to recognize the substantial contributions they make to protecting our national health, safety, and advancing quality of life for all. 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 22nd day of May 2025. 13 14 1 Study Session of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Housing Authority, and Board of Library Trustees Minutes 1. CALL TO ORDER - STUDY SESSION A Study Session of the Palm Desert City Council was called to order by Mayor Harnik on Thursday, May 8, 2025, at 12:00 p.m., in the Council Chamber, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. STUDY SESSION TOPICS 2.a FISCAL YEAR 2025-26 BUDGET STUDY SESSION – PRESENTATION OF PROPOSED FINANCIAL PLAN AND FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM City Manager Escobedo and Finance Director Chavez narrated a PowerPoint presentation and responded to City Council inquiries. Department directors provided summaries of their respective departmental budgets and responded to City Council inquiries. 3. ADJOURNMENT The City Council adjourned the Study Session at 3:01 p.m. Respectfully submitted, _________________________ Michelle Nance Acting Assistant City Clerk, CMC/Assistant Secretary _________________________ Anthony J. Mejia, MMC City Clerk/Secretary 15 16 Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Housing Authority, and Board of Library Trustees Regular Meeting Minutes 1. CALL TO ORDER - CLOSED SESSION - 3:45 P.M. A Regular Meeting of the Palm Desert City Council was called to order by Mayor Harnik on Thursday, May 8, 2025, at 3:45 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 None. 3. RECESS TO CLOSED SESSION Mayor Harnik adjourned to Closed Session at 3:45 p.m. 4. CLOSED SESSION AGENDA The following items were considered in closed session: 4.a Closed Session Meeting Minutes: April 24, 2025 4.b Conference with Legal Counsel - Anticipated Litigation Initiation of litigation pursuant to Government Code Section 54956.9(d)(4) (Number of potential cases: 1) 5. ROLL CALL - REGULAR MEETING - 4:00 P.M. 6. PLEDGE OF ALLEGIANCE Councilmember Pradetto led the Pledge of Allegiance. 7. INSPIRATION Councilmember Quintanilla provided words of inspiration. 8. REPORT OF CLOSED SESSION City Attorney Shah stated that direction was given by the City Council; no reportable actions were taken. 9. AWARDS, PRESENTATIONS, AND APPOINTMENTS 17 City Council Meeting Minutes May 8, 2025 2 9.a PROCLAMATION: HOLOCAUST REMEMBRANCE DAY Mayor Harnik presented a proclamation to Danny Labin and Arnie Gilman, representing the Jewish Federation of the Desert, in commemoration of Holocaust Remembrance Day. 9.b PROCLAMATION: POLLINATOR WEEK Mayor Harnik presented a proclamation to Community Services Manager Muir in recognition of Pollinator Week. 9.c AWARDS: CIVIC ACADEMY PARTICIPANTS CERTIFICATES Mayor Harnik and Community Relations Supervisor Penta recognized the following individuals for completion of the Palm Desert Civic Academy: Amando Sanders Laura Bickford Bert Sugayan Lisa Longoria Brook Marshall Lori Sanford Carrie McLeod Mary Curry Elizabeth Meyerhoff Mike Morsch Gayla Brown Robert McConnaughey James Hutfilz Samantha Shapiro Janet Davidson Sonya Donaldson Jenifer Ramirez Pimentel Suzanne Nixon Jessica Walker Tim Skogen Joanne Ohanesian William Robinette John T. Doan 9.d PRESENTATION: FRIENDS OF THE DESERT MOUNTAINS WILDFLOWER FESTIVAL Tammy Martin, representing the Friends of the Desert Mountains, narrated a PowerPoint presentation highlighting the success of the 2025 Wildflower Festival. 10. CITY MANAGER COMMENTS None. 11. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmembers provided updates on their attendance at various events. 12. NON-AGENDA PUBLIC COMMENTS None. 13. CONSENT CALENDAR Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto To approve the consent calendar as presented. Motion Carried (5 to 0) 18 City Council Meeting Minutes May 8, 2025 3 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Approve the Minutes of April 24, 2025. Motion Carried (5 to 0) 13.b APPROVAL OF WARRANT REGISTERS Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Approve the warrant registers issued for the period 3/26/2025 to 5/2/2025. Motion Carried (5 to 0) 13.c RATIFICATION OF A LETTER OF OPPOSITION FOR SENATE BILL 634 (PÉREZ): HOMELESSNESS – CIVIL AND CRIMINAL PENALTIES Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Ratify the issuance of a letter of opposition for SB 634 (Pérez): Homelessness – Civil and Criminal Penalties. Motion Carried (5 to 0) 13.d APPOINTMENT TO THE COACHELLA VALLEY MULTIPLE SPECIES HABITAT CONSERVATION PLAN (CVMSHCP) TRAILS MANAGEMENT SUBCOMMITTEE Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto 1. With regret, accept the resignation of Donna Beane as the City’s representative to the CVMSHCP Trails Management Subcommittee. 2. Appoint Shawn Muir as the City’s representative and Kevin Swartz as the alternate representative to the CVMSHCP Trails Management Subcommittee for a term ending June 30, 2026. Motion Carried (5 to 0) 19 City Council Meeting Minutes May 8, 2025 4 13.e UPDATE TO ELECTRONIC SIGNATURE USE GUIDELINES Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Receive and file an administrative update to the City’s Electronic Signature Use Guidelines to allow digital signatures for City lease agreements. Motion Carried (5 to 0) 13.f RATIFICATION AND UPDATE OF VENDOR AND CONTRACTOR PREQUALIFICATION LIST FOR SUBMISSIONS THROUGH APRIL 18, 2025 Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Ratify the updated prequalified vendor and contractor list through April 18, 2025, for the City of Palm Desert, Successor Agency to the Palm Desert Redevelopment Agency, Palm Desert Housing Authority, and Desert Willow Golf Resort. Motion Carried (5 to 0) 13.g RESOLUTION 2025-026 UPDATING OUTSIDE AGENCY FUNDING PROGRAM COMMITTEE MEMBERS Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Adopt Resolution 2025-026 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPDATING THE OUTSIDE AGENCY CHARITABLE CONTRIBUTIONS FUNDING COMMITTEE MEMBERS AND RESCINDING RESOLUTION NO. 2024-002.” Motion Carried (5 to 0) 13.h HOUSING AUTHORITY RESOLUTION ESTABLISHING DATES FOR REGULAR MEETINGS OF THE PALM DESERT HOUSING COMMISSION DURING FISCAL YEAR 2025-2026 Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Adopt Resolution HA-130 entitled “A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY, SETTING THE SCHEDULE FOR REGULAR MEETINGS OF THE PALM DESERT HOUSING COMMISSION IN FISCAL YEAR 2025/2026.” Motion Carried (5 to 0) 20 City Council Meeting Minutes May 8, 2025 5 13.i RELEASE PARTICULATE MATTER (PM10) BONDS FOR COMPLETED PROJECTS Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Release the following PM 10 Bonds: 1. Alpha Holdings (PG21-0010) in the amount of $2,420. 2. DOLCE Tract 31071 (PG21-0022) in the amount of $35,700. 3. Bond for Gerald Ford Apartments (RG22-0009) in the amount of $13,640. 4. Bond for West Coast Self Storage (PG23-0025) in the amount of $4,220. Motion Carried (5 to 0) 13.j UPDATE ON THE MAYORS’ MONARCH PLEDGE AND POLLINATOR WEEK Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Receive and file the update on the City’s participation in the Mayors’ Monarch Pledge and recognition of Pollinator Week. Motion Carried (5 to 0) 13.k RATIFY AMENDMENT NO. 4 TO CONTRACT NO. C44200 WITH HERMANN DESIGN GROUP FOR THE DESIGN OF DESERT WILLOW GREENS AND TEE BOX RENOVATION PROJECT AND TURF REDUCTION ON FIRECLIFF AND MOUNTAIN VIEW COURSES IN THE AMOUNT OF $57,500 (MLS00005) Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto Ratify Amendment No. 4 to Contract No. C44200 with Hermann Design Group for the design of Desert Willow Firecliff Greens and Tee Box Renovations and Turf Reduction for both the Firecliff and Mountain View Courses in an amount not to exceed $57,500. Motion Carried (5 to 0) 21 City Council Meeting Minutes May 8, 2025 6 13.l APPROVE THE START OF PROCEEDINGS TO LEVY AND COLLECT ANNUAL ASSESSMENTS AND GRANT PRELIMINARY APPROVAL OF THE 2025/26 ENGINEER’S REPORT FOR CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO.1 Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto 1. Adopt Resolution 2025-027 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING ITS INTENTION TO INITIATE PROCEEDINGS FOR THE LEVY AND COLLECTION OF ANNUAL ASSESSMENTS FOR CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2025/2026.” 2. Adopt Resolution 2025-028 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING ITS INTENTION TO LEVY AND COLLECT THE ANNUAL ASSESSMENTS FOR CONSOLIDATED PALM DESERT LANDSCAPING AND LIGHTING MAINTENANCE DISTRICT NO. 1 FOR FISCAL YEAR 2025/2026 AND PRELIMINARY APPROVAL OF THE ENGINEER’S REPORT,” and setting a Public Hearing to be held at Palm Desert City Hall on Thursday, June 26, 2025, at 4 p.m. Motion Carried (5 to 0) 13.m APPROVE THE START OF PROCEEDINGS TO LEVY AND COLLECT THE ANNUAL ASSESSMENT FOR CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2025/26 Motion by: Councilmember Quintanilla Seconded by: Councilmember Pradetto 1. Adopt Resolution 2025-029 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS FOR THE LEVY AND COLLECTION OF ASSESSMENTS FOR PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2025/2026.” 2. Adopt Resolution 2025-030 entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING ITS INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR CITY OF PALM DESERT BENEFIT ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2025/2026, PURSUANT TO THE BENEFIT ASSESSMENT ACT OF 1982 AND APPOINTING A TIME AND PLACE FOR THE PUBLIC HEARING ON THESE MATTERS,” and setting a Public Hearing to be held at Palm Desert City Hall on Thursday, June 26, 2025, at 4:00 p.m. Motion Carried (5 to 0) 22 City Council Meeting Minutes May 8, 2025 7 14. ACTION CALENDAR None. 15. PUBLIC HEARINGS 15.a ADOPT AND APPROVE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SUBSTANTIAL AMENDMENTS TO THE ANNUAL ACTION PLANS FOR PROGRAM YEARS 2020(CV), 2021, 2022, 2023, AND 2024 Supportive Services Manager Tenorio narrated a PowerPoint presentation and responded to City Council inquiries. Mayor Harnik opened and closed the public hearing, there being no member of the public wishing to speak. Motion by: Councilmember Pradetto Seconded by: Mayor Pro Tem Trubee 1. Conduct a public hearing, receive public testimony, and approve the Substantial Amendment to the PY 2020, 2021, 2022, 2023, and 2024 Annual Action Plans. 2. Adopt the Substantial Amendment to PY 2020 (CV) to reallocate $180,000 in remaining CDBG-CV funds to the Desert Arc HVAC Replacement Project, an eligible public facility upgrade. 3. Adopt the Substantial Amendment to PY 2021 to reallocate $59,723.44 in unspent funds to the PY 2024 for Palm Desert Housing Authority (PDHA) public infrastructure improvements. 4. Adopt the Substantial Amendment to PY 2022 to reallocate $32,467.73 in unspent funds to PY 2024 for PDHA public infrastructure improvements. 5. Adopt the Substantial Amendment to PY 2023 to reallocate $50,000 in unspent funds to The Joslyn Center for ADA bathroom improvements. 6. Adopt the Substantial Amendment to PY 2024 to allocate $110,000 in remaining funds to the City’s Housing Authority for PDHA public infrastructure improvements. 7. Authorize the Director of Finance to appropriate funds for the applicable CDBG Accounts, if necessary to implement the approved amendments. Motion Carried (5 to 0) 23 City Council Meeting Minutes May 8, 2025 8 15.b PROPOSED PLAN FOR BOND ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR PHASE I OF THE PALM VILLAS AT MILLENNIUM APARTMENT PROJECT LOCATED NORTH OF GERALD FORD DRIVE BETWEEN DINAH SHORE DRIVE AND TECHNOLOGY DRIVE Finance Director Chavez provided a staff report and responded to City Council inquiries. Mayor Harnik opened and closed the public hearing, there being no member of the public wishing to speak. Motion by: Councilmember Pradetto Seconded by: Councilmember Nestande 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 Five Million Dollars ($65,000,000) (the “Bonds”), to finance the acquisition, construction and development of Phase I of Palm Villas at Millennium Apartments, 121-units of a 241-unit multifamily affordable rental housing project located north of Gerald Ford Drive between Dinah Shore Drive and Technology Drive, Palm Desert, California (the “Phase I of Project”) and receive public comments. 2. Adopt Resolution 2025-031 entitled “A RESOLUTION OF THE CITY COUNCIL OF The CITY OF PALM DESERT, CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF EXEMPT FACILITY BONDS FOR PHASE I OF PALM VILLAS AT MILLENNIUM,” approving the issuance of the Bonds by CSCDA for the benefit of PD Millennium Partners, L.P., a California Limited Partnership (the "Borrower") a partnership of which Palm Communities (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 purpose of satisfying the requirements of TEFRA, the Code, and California Government Code Sections 6500 et seq. 3. Authorize the Mayor or the Executive Director to enter into and execute the Indemnity Agreement, attached hereto in substantial form. Motion Carried (4 to 1) 16. INFORMATION ITEMS None. 24 City Council Meeting Minutes May 8, 2025 9 17. ADJOURNMENT The City Council adjourned at 4:41 p.m. Respectfully submitted, _________________________ Michelle Nance Acting Assistant City Clerk/Assistant Secretary _________________________ Anthony J. Mejia, MMC City Clerk/Secretary 25 26 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/1/2025 - 5/1/2025 City of Palm Desert Account Number 05/01/202500004247 AMAZON CAPITAL SERVICES INC.W1 Cert. Paper/Folders42110001104110 1G4M-V3WM-1KJF 86.18 05/01/202500004248 BRIAN K. STEMMER CONSTRUCTIONW1 R/M BUILDING - CH43310001104340 9688 4,600.00 05/01/202500004248 BRIAN K. STEMMER CONSTRUCTIONW1 R/M BUILDING - CH43310001104340 9581 2,670.00 05/01/202500004248 BRIAN K. 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FRANCIS ELECTRIC LLCW1 MR25 R/M TRAFFIC SIGNAL VARIOU43325001104250 200168113 2,096.65 05/01/202502006558 ST. 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CODE 442390210443650001104422 203492119-APR25 31.15 05/01/202502006563 T-MOBILE USA INCW1 MIFI - CODE 442390235143650001104422 203492119-APR25 31.15 05/01/202502006563 T-MOBILE USA INCW1 MIFI - CODE 442390261743650001104422 203492119-APR25 31.15 05/01/202502006563 T-MOBILE USA INCW1 MIFI - CODE 442390263443650001104422 203492119-APR25 31.15 05/01/202502006563 T-MOBILE USA INCW1 MIFI - LANDSCAPING 442390298343650001104614 203492119-APR25 31.15 05/01/202502006564 T-MOBILE USA INCW1 MR25 VEHICLE GPS MONITORING43340001104331 978220384-40 1,493.52 05/01/202502006565 T-MOBILE USA INCW1 AP25 VEHICLE GPS MONITORING43340001104331 978220384-41 1,564.64 05/01/202502006566 TAG/AMS INC.W1 DOT Physical Recerts Mar2543056001104154 3366 525.00 05/01/202502006567 TOPS N BARRICADES INC.W1 GRAFFITI REMOVAL SUPPLIES43915021104310 1113121 657.39 05/01/202502006568 TPX COMMUNICATIONSW1 INTERNET/PHONE SVC 4/23-5/2243650001104190 185244030-0 9,232.47 05/01/202502006569 ULINE INCW1 BREAKROOM SUPPLIES - FS #7142190002304220 191906976 612.69 05/01/202502006569 ULINE INCW1 Indoor Safety Mirrors (4)42110002524662 191470986 240.95 05/01/2025Report Date 10Page City and Housing Docusign Envelope ID: CD4C737F-FC8D-4464-A6F5-1EFAC949D73A 36 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/1/2025 - 5/1/2025 City of Palm Desert Account Number 05/01/202502006570 WALTERS WHOLESALE ELECTRICW1 CONCRETE PULL BOX LID43325001104250 S127642675.001 72.69 05/01/202502006571 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5735955 392.81 05/01/202502006571 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5735142 850.47 05/01/202502006572 WHITE CAP LPW1 STREET MAINT SUPPLIES42190001104310 50030917316 1,445.94 05/01/202502006573 WILLDAN ENGINEERINGW1 Plan Review & Insp - MA2543010001104420 002-34584 13,833.70 05/01/202502006574 XPRESS GRAPHICSW1 Rack Cards- Dia de Los Ninos43610002524662 25-70499 80.05 05/01/202502006574 XPRESS GRAPHICSW1 Circle Labels Roll - Library43610001104417 25-70308 332.01 05/01/202502006574 XPRESS GRAPHICSW1 Coffee w/Mayor Postcards (200)43610001104417 25-70479 102.64 Examined and Approved Total For Bank ID - W1 984,744.80City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 05/01/2025Report Date 11Page City and Housing Docusign Envelope ID: CD4C737F-FC8D-4464-A6F5-1EFAC949D73A 37 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/1/2025 - 5/1/2025 City of Palm Desert Account Number 05/01/202500003127 BURKE WILLIAMS & SORENSEN LLPW3 MAR25 DW LOT C&D KAM SANG22899007030000 340697 963.00 Examined and Approved Total For Bank ID - W3 963.00City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 05/01/2025Report Date 12Page Successor Agency Docusign Envelope ID: CD4C737F-FC8D-4464-A6F5-1EFAC949D73A 38 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/3/2025 - 5/3/2025 City of Palm Desert Account Number 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVRC SRVS - CORPYARD43310001104330 251634 893.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - CITY HALL43310001104340 252132 106.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - CITY HALL43310001104340 252343 470.25 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - PCC43310001104344 252127 148.50 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - PCC43310001104344 252473 192.81 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - ARTIST CTR43885001104800 251644 245.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - FS #3343310002304220 251472 259.46 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - FS #6743310002304220 251688 99.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - FS #7143310002304220 251809 140.14 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - FS #3343310002304220 252056 1,358.93 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - AQUATIC CTR43311012424549 252430 769.11 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - AQUATIC CTR43311012424549 252474 198.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - SHERIFF CTR43695005104195 252256 189.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - SHERIFF CTR43695005104195 252258 247.50 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - PARKVIEW43696015104195 252108 198.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - PARKVIEW43696015104195 252110 562.00 05/03/202500004283 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - STATE BLDG43696025104195 252464 247.50 05/03/202502006575 DE VERA, MARIEW1 CJPIA TRAINING PRDM 5/5-6 MDV11501001100000 ADV PRDM 5/6/25 129.00 05/03/202502006575 DE VERA, MARIEW1 CJPIA TRAINING MILE 5/5-6 MDV11501001100000 ADV MILE 5/6/25 163.80 Examined and Approved Total For Bank ID - W1 6,617.00City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 05/03/2025Report Date 1Page City and Housing Docusign Envelope ID: EE067B9E-284C-4B6E-9A13-F1F24059D8A8 39 40 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202500004285 AMAZON CAPITAL SERVICES INC.W1 School Tour Swag - Sunglasses43695001104111 1P6M-XCY6-MCH1 630.71 05/08/202500004285 AMAZON CAPITAL SERVICES INC.W1 TRAFFIC SIGNAL SUPPLIES42190001104250 1L64-QMT3-QLM9 22.77 05/08/202500004285 AMAZON CAPITAL SERVICES INC.W1 BREAKROOM SUPPLIES - CITY HALL42190001104300 11TD-PWF4-DL7N 337.56 05/08/202500004285 AMAZON CAPITAL SERVICES INC.W1 GATE REMOTES - CORP YARD42190001104330 19P3-MCXX-6PM1 184.45 05/08/202500004285 AMAZON CAPITAL SERVICES INC.W1 FURNITURE/MATRESS - FS 3342190002304220 1VG1-CGRT-GMKV 111.69 05/08/202500004286 BRIAN K. STEMMER CONSTRUCTIONW1 Lib. Slatwalls panels install43321002524662 9693 975.00 05/08/202500004287 CDW LLCW1 R- Lenovo Tiny Workstations44040005304190 AD8DZ1C 11,214.14 05/08/202500004288 CEPEDA STUDIO INCW1 LIBRARY AUTHOR VISIT 5/03/2543900002524662 6001 1,500.00 05/08/202500004289 CITY NETW1 MAR25 STREET OUTREACH43090002264212 2025-0300121 19,139.31 05/08/202500004290 DESERT AIR CONDITIONING INC.W1 R/M HVAC SRVS - CITY HALL43310001104340 259591 2,075.00 05/08/202500004291 DESERT XW1 Desert X Marketing 2 of 343222001104417 2025_04_11_001 1,250.00 05/08/202500004291 DESERT XW1 Desert X Sponsorship 2 of 343092004364650 2025_04_11_001 7,500.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 DESERT MIRAGE43320002734680 6804 550.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PALM DESERT CC43320002994374 6804 534.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PRIMEROSE II43320002734682 6804 330.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 DIAMONDBACK43320002754643 6804 112.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 MONTEREY MEADOWS43320002754680 6804 140.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 THE GLEN43320002754681 6804 288.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 HOVLEY ESTATES43320002754682 6804 149.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 SONATA I43320002754683 6804 358.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 SONATA II43320002754684 6804 496.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 HOVLEY COLLECTION43320002754685 6804 390.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 LA PALOMA I43320002754686 6804 160.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 LA PALOMA II43320002754687 6804 160.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 LA PALOMA III43320002754693 6804 139.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 SANPIPER COURT43320002754694 6804 164.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 SANPIPER COURT WEST43320002754695 6804 171.00 05/08/2025Report Date 1Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 41 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 HOVLEY COURT WEST43320002754696 6804 250.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PALM COURT43320002754697 6804 112.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PRESIDENTS PL 1/II43320002774373 6804 5,610.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 VINEYARDS43320002784374 6804 224.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 WARING COURT43320002794374 6804 213.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PALM GATE43320002804374 6804 133.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 THE GROVE43320002814374 6804 507.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PRESIDENTS PL III43320002824373 6804 3,597.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PORTOLA PLACE43320002834374 6804 213.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 KAUFMAN N BROAD43320002854374 6804 993.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 CANYON CREST43320002864374 6804 288.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 COLLEGE VIEW EST II43320002874374 6804 320.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 THE BOULDERS43320002874680 6804 507.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 SUNDANCE WEST43320002874681 6804 283.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 PETUNIA I43320002874682 6804 331.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 SUNDANCE EAST43320002874683 6804 155.00 05/08/202500004292 HORIZON PROFESSIONAL LANDSCAPEW1 AP25 LMA 7 COLLEGE VIEW EST I43320002874684 6804 288.00 05/08/202500004293 HR GREEN PACIFIC INCW1 FB25 Eng Svs & Land Dev C4544043011501104423 185924 31,591.75 05/08/202500004293 HR GREEN PACIFIC INCW1 JA25 Eng Svcs & Land Dev43011501104423 184494 106.38 05/08/202500004293 HR GREEN PACIFIC INCW1 JA25 Eng Svcs & Land Dev43011501104423 184493 3,451.25 05/08/202500004293 HR GREEN PACIFIC INCW1 MA25 ON-CALL TRAFFIC ENG SVCS43011501104250 186612 26,281.81 05/08/202500004293 HR GREEN PACIFIC INCW1 CC ACCESS STUDY MAR2544001004524136 186617 6,498.75 05/08/202500004294 KEYSER MARSTON ASSOCIATES INCW1 DC24 PALM COMMUNITIES A4456023991008730000 0039402 540.00 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 R/M IRRIG-MEDIANS FB2543370011104614 113283 1,507.30 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 R/M LANDSCAPE-MEDIAN FEB43370011104614 113284 241.00 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 XTRA WORK - BUMP N GRIND43370011104614 113286 530.00 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 XTRA R/M WORK - MEDIANS43370011104614 113262 1,159.00 05/08/2025Report Date 2Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 42 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 R/M IRRIG - MONTEREY43370011104614 113282 432.00 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 R/M XTRA WORK - HWY 7443370011104614 113285 323.00 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 R/M XTRA WORK - MEDIANS43370011104614 113308 2,170.31 05/08/202500004295 MARIPOSA LANDSCAPES INCW1 LMA 1 R/M XTRA WORK - MEDIANS43370011104614 113264 1,281.64 05/08/202500004296 MOTOWORX GARAGEW1 AP25 RSO VEHICLE MAINT PD16-0143340001104210 MWG2465 945.94 05/08/202500004297 OTIS ELEVATOR COW1 MY25 ELEVATOR SVC SHERIFF CTR43695005104195 100401911888 215.99 05/08/202500004297 OTIS ELEVATOR COW1 ELEVATOR MAINT LATEFEE-CORPYRD43090001104330 L10000106084 128.36 05/08/202500004298 PALM DESERT ACE HARDWAREW1 SUPPLIES-CH LIGHT BULBS42190001104340 250061 66.00 05/08/202500004298 PALM DESERT ACE HARDWAREW1 LNDSCP SUPPLIES - PALMA PK42190001104611 250255 17.14 05/08/202500004298 PALM DESERT ACE HARDWAREW1 SMALL TOOLS42190001104310 250278 82.61 05/08/202500004299 PPG ARCHITECTURAL FINISHESW1 GRAFFITI REMOVAL SUPPLIES43915021104310 972220006463 46.91 05/08/202500004299 PPG ARCHITECTURAL FINISHESW1 GRAFFITI REMOVAL SUPPLIES43915021104310 972220006499 44.20 05/08/202500004299 PPG ARCHITECTURAL FINISHESW1 GRAFFITI REMOVAL SUPPLIES43915021104310 972220006532 23.88 05/08/202500004300 PRO-CRAFT CONSTRUCTION INCW1 R/M PLUMBING SRV - CC PARK43310001104610 24124-15 772.65 05/08/202500004301 Q3 CONSULTINGW1 N. PD CITY LIMIT IMPRV MAR2542191001104159 35819 6,666.00 05/08/202500004301 Q3 CONSULTINGW1 NORTH PD CITY LIMIT IMPR FEB2542191001104159 35637 10,100.00 05/08/202500004302 RHYTHM TECH PRODUCTIONS LLCW1 AV Svs for Concert 5/08/2543061011104416 147705082025 3,150.00 05/08/202500004303 SINATRA & COOK PROJECT LLCW1 JN25 iHUB/ERC RENT MO 64 OF 7243450004254430 MO64OF72JUN25 18,161.80 05/08/202500004304 STAPLES BUSINESS ADVANTAGEW1 Sharpie, Pencil Cup, Sheet Pro42190001104154 6029774120 71.82 05/08/202500004304 STAPLES BUSINESS ADVANTAGEW1 APR25 OFFICE SUPPLIES42110002524662 6029304190 270.93 05/08/202500004305 STRYKER SALES CORPORATIONW1 GURNEY BATTERIES / ACCESSORIES44030005304220 9205531785 3,049.77 05/08/202500004305 STRYKER SALES CORPORATIONW1 GURNEY BATTERIES / ACCESSORIES44030005304220 9205553702 2,130.43 05/08/202500004305 STRYKER SALES CORPORATIONW1 GURNEY BATTERIES / ACCESSORIES44030005304220 9205533874 70.40 05/08/202500004306 RAMSAY GROUPW1 AP25 CDBG ADMIN43090002204800 10 3,800.00 05/08/202500004307 VECTORUSAW1 Arctic Wolf Renw 7/25-4/2614301001100000 103771 71,360.17 05/08/202500004307 VECTORUSAW1 Arctic Wolf Renw 5/25-6/2543620011104190 103771 14,272.03 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 17 CIVIC CENTER PARK43320011104610 236528 16,200.00 05/08/2025Report Date 3Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 43 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 17 SPORTS FIELDS43371001104610 236528 4,500.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 16 LANDS MAINT PARKS43320011104611 236527 29,118.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 17 MAGNESIA FALLS43320011104611 236528 4,000.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 16 COURT MAINT PARKS43325011104611 236527 1,167.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 16 LANDS MAINT - COMM43910001104611 236527 860.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 17 PDAC43311012424549 236528 1,400.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 16 LANDS MAINT HAYST43320002764374 236527 3,755.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 17 PARKVIEW BLDG43696015104195 236528 2,000.00 05/08/202500004308 VINTAGE ASSOCIATESW1 AP25 LMA 17 STATE BLDG43696025104195 236528 300.00 05/08/202500004308 VINTAGE ASSOCIATESW1 LMA 16 R/M XTRA WORK - UNIV43320011104611 236633 914.77 05/08/202500004309 VISUAL EDGE IT INCW1 INK&TONER CITYHALL 3/29-4/2843420001104190 24AR2617441 1,976.94 05/08/202500004309 VISUAL EDGE IT INCW1 INK&TONER 3TX403772 3/30-4/2943420001104190 24AR2617442 107.06 05/08/202500004310 WINGED SOLUTIONS INCW1 CC PARK BIRD MITIGATION43320011104610 WS043025CP 773.50 05/08/202502006576 4IMPRINT INC.W1 APR25 OUTREACH MATERIALS43900002524662 13719978 1,974.46 05/08/202502006577 ACOEDA, CARLOSW1 CACOEDA MILE AC 4/14-17/2543115001104190 CACOEDA MILE 336.00 05/08/202502006577 ACOEDA, CARLOSW1 CACOEDA LDG AC 4/14-17/2543120001104190 CACOEDA LDG 515.90 05/08/202502006577 ACOEDA, CARLOSW1 CACOEDA PRDM AC 4/14-17/2543120001104190 CACOEDA PRDM 301.00 05/08/202502006577 ACOEDA, CARLOSW1 CACOEDA PARK AC 4/14-17/2543120001104190 CACOEDA PARK 60.00 05/08/202502006578 AIR & HOSE SOURCE INCW1 GRAFFITI TRUCK ATTACHMENT SUPP43340001104331 606990 256.14 05/08/202502006579 AMERICAN FORENSIC NURSESW1 24/25 BLOOD DRAW/DUI CASES RSO43904001104210 79453 1,368.00 05/08/202502006580 ARTSOPOLIS LLCW1 Host Artist Registry 7/25-3/2614301004360000 1832 1,000.00 05/08/202502006580 ARTSOPOLIS LLCW1 Host Artist Registry 3/25-6/2543217014364650 1832 500.00 05/08/202502006581 BERMUDEZ, JOSE ALEJANDROW1 Live Scan J. Bermudez43056001104154 A4201855 59.00 05/08/202502006582 BEST SIGNS INC.W1 Employee Nameplate C. Escobedo42190001104154 99395 130.93 05/08/202502006582 BEST SIGNS INC.W1 SIGNAGE - CITY HALL43310001104340 99380 1,998.91 05/08/202502006583 BRIGHT EVENT RENTALW1 FS102 Groundbreaking Event 4/944002002354270 846801 587.88 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 74735 HOVLEY LANE E SOCCER PK43510001104611 127363385426AP25 143.36 05/08/2025Report Date 4Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 44 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 1131 HOVLEY SOCCER PARK43510001104611 315303847830AP25 1,705.90 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 10049 FREEDOM PARK43510001104611 315491848018AP25 5,529.23 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 1089 MEDIANS43510001104614 315239847766AP25 2,096.92 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 1149 ST MEDIANS NORTH43510001104614 586651849912AP25 204.37 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 73200 MESA VIEW DR FS 6743510002304220 176281476314AP25 329.36 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 73995 COUNTRY CLUB FS 7143510002304220 122335377974AP25 262.33 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 D. 1088 DESERT MIRAGE (COOK)43510002734680 315237847764AP25 115.69 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 LARKSPUR LN - FIRE MTR PP E/W43510002774373 797761405428AP25 98.99 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 PORTOLA AVE - FIRE MTR PP E/W43510002774373 797755405410AP25 98.99 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 SAN LUIS REY - FIRE MTR PP E/W43510002774373 797759405418AP25 98.99 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 C. 1088 K/B (HEATHERWOOD)43510002854374 315237847764AP25 57.19 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 H. 1088 COLLEGE VIEW ESTATES I43510002874374 315237847764AP25 110.47 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 F. 1088 THE BOULDERS (SHEPHERD43510002874680 315237847764AP25 51.99 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 B. 1088 SUNDANCE W (KOKOPELLI)43510002874681 315237847764AP25 63.69 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 E. 1088 PETUNIA PLACE 1 (PETUN43510002874682 315237847764AP25 75.38 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 A. 1088 SUNDANCE E. (SHEPHERD43510002874683 315237847764AP25 89.68 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 G. 1088 COLLEGE VIEW ESTATES I43510002874684 315237847764AP25 162.71 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 TOWN CENTER WAY43510001104310 307113813150AP25 27.38 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 44911 CABRILLO AVENUE43510001104340 712257390932AP25 63.42 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 44400 TOWN CTR FS3343510002304220 163253444356AP25 104.83 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 72780 HWY 111 (SEARS)43510004254430 815043444678AP25 190.33 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 72880 HWY 111-FIRE MTR SEARS-B43510004254430 800643444692AP25 117.90 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 72880 HWY 111-FIRE MTR SEARS-A43510004254430 800645741286AP25 88.31 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 1052 CORPORATION YARD43510001104330 315177847704AP25 530.60 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 10364 HOVLEY SOCCER PARK43510001104611 316695849222AP25 4,476.00 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 1051 ST MEDIANS "4"43510001104614 315175847702AP25 3,027.92 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 13 1050 PRIMROSE II43510002734682 315173847700AP25 51.99 05/08/2025Report Date 5Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 45 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 1 1050 DIAMONDBACK43510002754643 315173847700AP25 42.89 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 18 1050 MONTEREY MEADOWS43510002754680 315173847700AP25 202.42 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 17 1050 THE GLEN43510002754681 315173847700AP25 70.19 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 2 1050 HOVLEY ESTATES43510002754682 315173847700AP25 29.89 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 15 1050 HOVLEY ESTATES43510002754682 315173847700AP25 36.39 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 22 1050 SONATA I43510002754683 315173847700AP25 38.99 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 20 1050 SONATA II43510002754684 315173847700AP25 103.23 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 16 1050 HOVLEY COLLECTION43510002754685 315173847700AP25 35.09 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 21 1050 HOVLEY COLLECTION43510002754685 315173847700AP25 29.89 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 5 1050 LA PALOMA I43510002754686 315173847700AP25 32.49 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 19 1050 LA PALOMA I43510002754686 315173847700AP25 37.69 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 6 1050 LA PALOMA II43510002754687 315173847700AP25 79.28 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 3 1050 LA PALOMA III43510002754693 315173847700AP25 45.49 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 7 1050 SANDPIPER43510002754694 315173847700AP25 83.18 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 8 1050 SANDPIPER43510002754695 315173847700AP25 71.48 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 4 1050 HOVLEY COURT WEST43510002754696 315173847700AP25 35.09 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 14 1050 PALM COURT43510002754697 315173847700AP25 117.09 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 SAN LUIS REY - FIRE MTR PP E/W43510002774373 797757405414AP25 125.47 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 12 1050 WARING COURT43510002794374 315173847700AP25 54.75 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 11 1050 PALM GATE43510002804374 315173847700AP25 33.79 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 10 1050 CANYON CREST43510002864374 315173847700AP25 38.99 05/08/202502006584 COACHELLA VALLEY WATER DIST.W1 9 1050 PDCC43510002994374 315173847700AP25 230.75 05/08/202502006585 CONSOLIDATED ELECTRICALW1 LIGHT SUPPLIES - CITY HALL42190001104340 5725-1157063 407.81 05/08/202502006585 CONSOLIDATED ELECTRICALW1 R/M ELECT SUPPLIES - FREEDOM42190001104611 5725-1151387 36.54 05/08/202502006585 CONSOLIDATED ELECTRICALW1 R/M ELECT SUPPLIES - FREEDOM42190001104611 5725-1152069 1,255.08 05/08/202502006586 DBX INC.W1 RETENTION PP01 - MARKET X COOK20600002340000 RTNT-PP01 -20,243.30 05/08/202502006586 DBX INC.W1 MARKET / COOK TS IMPROVEMENTS44001002344250 PP01 404,866.00 05/08/2025Report Date 6Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 46 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202502006587 DEPENDABLE BREAK ROOMW1 KITCHEN/COFFEE SUPPLIES - CH42190001104340 MI33990 311.31 05/08/202502006587 DEPENDABLE BREAK ROOMW1 EMPLOYEE RECOGNITION43095011104154 MI33745 1,000.00 05/08/202502006587 DEPENDABLE BREAK ROOMW1 KITCHEN/COFFEE SUPPLIES - CH42190001104340 MI33745 520.89 05/08/202502006588 DESERT ARCW1 FY 24/25 SHREDDING SCS43090001104111 16899 310.00 05/08/202502006588 DESERT ARCW1 Shredding Purge - FInance43090001104150 16899 314.00 05/08/202502006589 DESERT NAPA AUTO PARTSW1 TRAFFIC SUPPLIES42190001104250 134566 51.06 05/08/202502006589 DESERT NAPA AUTO PARTSW1 TRAFFIC SUPPLIES - CREDIT42190001104250 134569 -39.11 05/08/202502006589 DESERT NAPA AUTO PARTSW1 R/M SUPPLIES42190001104310 096891 61.39 05/08/202502006589 DESERT NAPA AUTO PARTSW1 R/M STREET SUPPLIES42190001104310 122509 47.39 05/08/202502006590 DESERT PIPE & SUPPLYW1 JANITORIAL SUPPLIES - CC PARK42190001104610 0017016270 156.32 05/08/202502006591 DESERT TREE SPRAYINGW1 AP25 RODENT/GOPHER CTRL CC43320011104610 4070 310.00 05/08/202502006591 DESERT TREE SPRAYINGW1 AP25 GOPHER/RODENT CTRL PARKS43320011104611 4070 305.00 05/08/202502006591 DESERT TREE SPRAYINGW1 AP25 RODENT/GOPHER CTRL GARDEN43910001104611 4070 90.00 05/08/202502006591 DESERT TREE SPRAYINGW1 AP25 RODENT/GOPHER CTR ENTRADA43921011104614 4070 140.00 05/08/202502006591 DESERT TREE SPRAYINGW1 AP25 RODENT/GOPHER CTRL K/B43321002854374 4070 90.00 05/08/202502006592 DOKKEN ENGINEERINGW1 Eng Svs P759 12/1/24-2/28/2544001002134359 48658 3,522.50 05/08/202502006593 ENGINEERING RESOURCESW1 MAR25 ENG SRVS - NS FS10244001002354270 61322 2,399.60 05/08/202502006594 ESCOBEDO, CHRISTOPHERW1 ICSC PRDM 5.19.25 CEscobedo11501001100000 ADV PRD 05.19.25 64.50 05/08/202502006594 ESCOBEDO, CHRISTOPHERW1 ICSC MILE 5.19.25 CEscobedo11501001100000 ADV MILE 5.19.25 14.70 05/08/202502006594 ESCOBEDO, CHRISTOPHERW1 ICSC PARK 5.19.25CEscobedo11501001100000 ADV PARK 5.19.25 20.00 05/08/202502006594 ESCOBEDO, CHRISTOPHERW1 ICSC AIR 5.19.25- CEscobedo11501001100000 FLIGHT 5.19.25 377.96 05/08/202502006595 EXCEL LANDSCAPE INCW1 R/M SCREEN INSTALL - CC PARK43371001104610 111066 1,620.00 05/08/202502006595 EXCEL LANDSCAPE INCW1 TREE INSTALLATION - HAYSTACK43321002764374 111068 1,080.00 05/08/202502006596 FOSTER GARDNER INC.W1 FERTILIZER - CC PARK43320011104610 289629 422.92 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 D/U CIRCUIT FRED WARING43650001104159 7605686932-0425 76.67 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 PHONE SVC43060011104211 7608629848-0425 194.24 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 TRAFFIC SIGNAL LINE SVC43650001104250 7603459146-0425 76.67 05/08/2025Report Date 7Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 47 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 PCC PHONE SRV43650001104344 7605682560-0425 181.14 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 VALLEY CRIMESTOPPERS HOTLINE43914002294210 7603417867-0425 200.38 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 EP PHONE SVC43695002714491 7606749012-0425 142.57 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG ALARM SRV43696015104195 7603468393-0425 193.90 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG PHONE SRV43696015104195 7606741960-0425 125.76 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG FIRE ALARM43696015104195 7607791904-0425 116.26 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 PARKVIEW BLDG ALARM SRV43696015104195 7608361142-0425 123.09 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 STATE BLDG INTERNET SRV43696025104195 3101746165-0425 87.98 05/08/202502006597 FRONTIER COMMUNICATIONS INCW1 HENDERSON BLDG PHONE SRV43698005104195 7607766715-0425 312.13 05/08/202502006598 GOODWIN, SHELBYW1 Civic Academy-Mi Cultura 4/2843125001104417 SHELBY REIM 4.28 515.65 05/08/202502006599 HAMMER PLUMBING AND PUMPINGW1 CAHUILLA RESTROOM PUMP SRV43310001104611 33755-1 395.00 05/08/202502006600 HICKSON, AARONW1 Live Scan A. Hickson43056001104154 A4201840 59.00 05/08/202502006601 HORIZON LIGHTING INC.W1 R/M LIGHTING - FREEDOM PARK43310001104611 INV12836 3,274.44 05/08/202502006602 IMPERIAL IRRIGATION DISTRICTW1 S/W COR CC WSH43514001104250 50155642-AP25 120.42 05/08/202502006602 IMPERIAL IRRIGATION DISTRICTW1 S/W COR CC WSH43514001104250 50155645-AP25 25.63 05/08/202502006603 INNOVA DISC GOLFW1 DISCATCHER TAR - HOVLEY PARK42190001104611 25-1551 3,838.93 05/08/202502006603 INNOVA DISC GOLFW1 DISCATCHER TAR - HOVLEY PARK42190001104611 25-1551 33.75 05/08/202502006604 INTERNATIONAL SCULPTURE CENTER INCW1 MY25-JN25 El Paseo SCPT EXH AD43217014364650 200002427 6,500.00 05/08/202502006605 JTB SUPPLY COMPANY INC.W1 TRAFFIC SIGNAL RED LEDS43325001104250 114922 1,713.00 05/08/202502006605 JTB SUPPLY COMPANY INC.W1 TRAFFIC SIGNAL GREED LEDs43325001104250 114869 1,144.00 05/08/202502006605 JTB SUPPLY COMPANY INC.W1 TRAFFIC SIGNAL GREED LEDs43325001104250 114693 835.80 05/08/202502006606 KINCAID INDUSTRIES INCW1 R/M PLUMBING - 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5/8/2025 City of Palm Desert Account Number 05/08/202502006622 SIMPLOT PARTNERSW1 25 GALLON WATER TANK42190001104310 208164605 134.17 05/08/202502006623 SOUTHERN CALIFORNIA EDISONW1 72577 HWY 111 ARTIST CENTER43885001104800 700964822971AP25 529.64 05/08/202502006623 SOUTHERN CALIFORNIA EDISONW1 44911 CABRILLO AVENUE43514001104340 700471509061AP25 14.15 05/08/202502006623 SOUTHERN CALIFORNIA EDISONW1 73510 FW PARKS43514001104611 700530811124AP25 2,035.62 05/08/202502006623 SOUTHERN CALIFORNIA EDISONW1 72573 1/2 HWY 111 ENTRADA43514001104614 700822737068AP25 4.90 05/08/202502006623 SOUTHERN CALIFORNIA EDISONW1 72567 HIGHWAY 111 ARTIST CTR43885001104800 700773993861AP25 1,140.30 05/08/202502006623 SOUTHERN CALIFORNIA EDISONW1 FIRESTATION 33, 67, 7143514002304220 700028290904AP25 4,947.29 05/08/202502006623 SOUTHERN CALIFORNIA EDISONW1 72559 HWY 111 UNIT A43698005104195 700044643888AP25 711.68 05/08/202502006624 SOUTHERN PACIFIC CONSTRUCTIONW1 RTNT PP004 - FS67 RESTROOM20600002300000 RTNT-PP004 -106.95 05/08/202502006624 SOUTHERN PACIFIC CONSTRUCTIONW1 FS #67 - RESTROOM RENOVATION44001002304220 PP004 2,139.00 05/08/202502006625 SOUTHWEST AQUATICSW1 AP25 R/M LAGOON CC PARK43320011104610 04-23122 4,114.00 05/08/202502006625 SOUTHWEST AQUATICSW1 APR25 R/M WATER FEAT ENTRADA43921011104614 04-23122 1,030.00 05/08/202502006626 SPERIDIAN TECHNOLOGIES LLCW1 Solution Checkpoint 5 Signoff43900001104190 37043 56,080.00 05/08/202502006627 SUPERCO SPECIALTY PRODUCTSW1 GRAFFITI REMOVAL SUPPLIES43915021104310 PSI613223 558.68 05/08/202502006628 SUPERIOR READY MIX CONCRETEW1 R/M CONCRETE - 73270 GUADALUPE43320001104310 950000301280 619.57 05/08/202502006628 SUPERIOR READY MIX CONCRETEW1 R/M CONCRETE - COUNTRY CLUB43320001104310 950000310915 575.39 05/08/202502006629 T-MOBILE USA INCW1 GPS LOCATE/TIME AD T25083003043042001104210 9601085498 165.00 05/08/202502006630 TKE ENGINEERING INCW1 Walk & Roll - Ph 3 - Dec24 Svc50001032134633 2024-1773 24,708.25 05/08/202502006630 TKE ENGINEERING INCW1 Walk & Roll - Ph 3 - Jan25 Svc50001032134633 2025-163 31,154.40 05/08/202502006631 TOPS N BARRICADES INC.W1 REFLECTIVE WORK SHIRTS42140001104310 1113304 123.03 05/08/202502006631 TOPS N BARRICADES INC.W1 STREET SIGN SUPPLIES42190001104310 1113249 679.69 05/08/202502006632 VILLANUEVA, PAULW1 CACEO ADV LDG 5/13-14 PAUL V11501001100000 ADV LDG 0525PV 278.24 05/08/202502006632 VILLANUEVA, PAULW1 CACEO ADV PRDM 5/13-14 PAUL V11501001100000 ADV PRDM 0525PV 129.00 05/08/202502006632 VILLANUEVA, PAULW1 CACEO ADV MILE 5/13-14 PAUL V11501001100000 ADV MILE 0525PV 134.96 05/08/202502006633 VON HELF, CLAYTONW1 Harddrive - Reimburse CVH 4/2842120001104190 BESTBUY-CVONHELF 76.11 05/08/202502006634 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5736012 2,351.61 05/08/202502006634 WATERLINE TECHNOLOGIES INCW1 CHEMICALS - AQUATIC CENTER42111002424549 5736829 2,074.95 05/08/2025Report Date 10Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 50 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202502006635 WAXIEW1 JANITORIAL SUPPLIES -CITY HALL42190001104340 83171880 47.12 05/08/202502006636 WEST COAST ARBORISTS INCW1 MISC TREE WORK - PARKS43320011104611 224316 975.00 05/08/202502006636 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - HOVLEY43320011104611 224167 7,470.00 05/08/202502006636 WEST COAST ARBORISTS INCW1 HARDWOOD PRUNING - BAJA PARK43320011104611 224168 6,708.00 05/08/202502006636 WEST COAST ARBORISTS INCW1 MISC TREE WORK - MEDIANS43370011104614 224316 2,925.00 05/08/202502006636 WEST COAST ARBORISTS INCW1 MISC TREE WORK - DW43320004414195 224316 4,875.00 05/08/202502006637 WHITE CAP LPW1 R/M STREET SUPPLIES-BLADES42190001104310 50031016125 1,518.11 05/08/202502006637 WHITE CAP LPW1 SAFETY SUPPLIES - PPE42190001104310 50031016248 351.25 05/08/202502006637 WHITE CAP LPW1 R/M STREET SUPPLIES42190001104310 50031068685 1,458.12 05/08/202502006638 XPRESS GRAPHICSW1 FS102 Groundbreaking Event44002002354270 25-70146 43.63 05/08/202502006638 XPRESS GRAPHICSW1 Concert Decals 202543610001104417 25-70630 357.18 05/08/202502006638 XPRESS GRAPHICSW1 AP Envelopes43610001104159 25-70615 413.80 05/08/202502006638 XPRESS GRAPHICSW1 APR25 PROG SUPPORT43610002524662 25-70704 79.52 Examined and Approved Total For Bank ID - W1 1,051,885.01City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 05/08/2025Report Date 11Page City and Housing Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 51 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 5/8/2025 - 5/8/2025 City of Palm Desert Account Number 05/08/202500002559 BURKE WILLIAMS & SORENSEN LLPW3 MAR25 DW LOT C&D KAM22899007030000 340697 963.00 05/08/202500002560 IS PALM DESERT LPW3 MAY25 SEWER RENT PAYMENT43740007034121 MAY2025 11,639.40 Examined and Approved Total For Bank ID - W3 12,602.40City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 05/08/2025Report Date 12Page Successor Agency Docusign Envelope ID: C51B9067-7C21-4A9C-8DF7-0DAFFEFA6377 52 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 8, 2025 PREPARED BY: Skky Garcia, Management Analyst Veronica Chavez, Director of Finance SUBJECT: APRIL PROCUREMENT REPORT RECOMMENDATION: Receive and file the monthly Procurement Report for April 2025. BACKGROUND/ANALYSIS: The monthly procurement report documents procurement activities for the City of Palm Desert for the month ending April 30, 2025, pursuant to the Purchasing Policy. FINANCIAL IMPACT: There is no financial impact with this action. ATTACHMENTS: Procurement Report for April 2025 53 54 Palm Desert Muni Code Chaper 3.30 - Purchasing System and Public Works Contracts Date Vendor Name Department Amount Document Type Description/Reason 4/1/2025 Jimmy Buffet Tribute Band Economic Development 3,600 Purchase Request Band for May Concerts in the Park Series - 5/29 4/2/2025 ESRI Information Technology 62,150 Purchase Request ESRI Advantage Program - GIS workshops 4/3/2025 MRG LLC City Clerk 30,000 Purchase Request Prof Consulting - Analyze City Clerk's Records Management Program 4/3/2025 Advantec Consulting Engineers, Inc Public Works 30,000 Task Order Prof Traffic Engineering Services - As needed 4/3/2025 SoCal Electrical & Lighting Inc. Public Works 25,000 Task Order Electrical and Lighting work for city owned facilities as needed 4/8/2025 Rising Realty Partners LP Economic Development 19,620 Change Order Request Property Management for Parkview 4/8/2025 Granicus Information Technology 6,000 Change Order Request Additional ADA features for the City's website Redesign project 4/8/2025 SunLine Transit Line Public Works 7,500 Purchase Request SunLine Transit's Annual Student Art Contest Sponorship 4/14/2025 Shasta Fire Protection Public Works 10,000 Purchase Request Installation of emergency fire sprinkler at the Artist Council Center 4/14/2025 Staples Public Works 2,871 Purchase Request New office desk for Corp Yard 4/17/2025 Sladden Engineering CIP 9,500 Purchase Request Geotechnical Engineering Services 4/18/2025 Michael Baker International CIP 31,800 Change Order Request Design and Engineering Servcies for Walk and Roll Phase 2 4/21/2025 Full Traffic Maintenance Public Works 2,615 Purchase Request 60 Type 1 Barricades 4/21/2025 Stryker Sales Corportation Public Works 5,251 Purchase Request Gurney batteries/accessories 4/22/2025 Patton Door & Gate Housing 45,110 Purchase Request Remove and Replace Gate Motors at One Quail Place 4/22/2025 The Altum Group Development Services 75,000 Purchase Request On-Call Planning and Environmental Services 4/22/2025 RSM, Inc. Public Works 68,000 Purchase Request Engineering and Design Services for PDAC improvements 4/25/2025 Mariposa Landscape Inc Public Works 65,520 Task Order Palm Tree Skinning 4/25/2025 Liberty Landscaping Inc. Housing 3,468 Purchase Request Monthly landscape maint. For Portola Palms lots 73 and 129 4/25/2025 Quinn Cat Public Works 4,500 Change Order Request Repairs to the City's backhoe 4/25/2025 Zumar Public Works 15,940 Purchase Request Purchase street name signs 4/28/2025 Fiesta Ford Public Works 6,500 Change Order Request Additional funds for as-needed repairs and maint. For City Ford Fleet 4/28/2025 Belfor Property Restoration Public Works 23,434 Task Order ADA Improvements to Historical Society 4/28/2025 Servpro Public Works 9,485 Task Order State Building Tenant Improvements 4/28/2025 Ozzie's International Public Works 6,500 Change Order Request Additional as-needed repairs and maint. to City Fleet 4/28/2025 Aflex Technology Public Works 2,369 Purchase Request Various pool Aflex accessories and attachments for PDAC 4/28/2025 Superb Engineering Inc. Public Works 4,516 Change Order Request Installation of a transformer and components for DW perimeter rehab 4/29/2025 Lowes Public Works 4,131 Purchase Request Purchase new Portacool Apex 4000 Cooler for FS#71 4/29/2025 Southern Pacific Construction Inc Public Works 2,139 Change Order Request Relocate RR speaking within the restroom at FS#67 4/29/2025 Alta Planning + Design, Inc. Public Works 40,861 Purchase Request Prof. Services to assist in preparing SS4A grant application 4/29/2025 Cornerstone Appliance Public Works 22,702 Purchase Request Purchase of TurboChef Convection oven & Eurodib frozen drink machine 4/29/2029 Garland/DBS Housing 57,971 Change Order Request Use of Cont. for roof repair of Santa Rosa Apartments 704,053.27 Administrative Contract/Purchase Approval by City Manager or Designee April, 2025 Procurement Report - Public projects, contracted services, professional services, and materials, supplies and equipment may all be awarded/approved by Department Head in best interest of the City up to $10,000. - Public projects, contracted services, professional services, and materials, supplies and equipment may all be awarded/approved by City Manager in best interest of the City up to $75,000. - Public projects, contracted services, professional services, and materials, supplies and equipment may all be awarded/approved by City Manager in best interest of the City up to $250,000, if on approved vendor list. - Public projects, contracted services, professional services, and materials, supplies and equipment over $250,000 must be approved by City Council. Purchasing Report for April 2025.xlsx Page 1 55 Date Vendor Name Department Amount Document Type Description/Reason 4/10/2025 West Coast Arborists, Inc Public Works 275,000 Change Order Additional Arboricultural Services 4/10/2025 Tri-Star contracting II, Inc Public Works 1,150,000 Maintenance Service Agreement On-call maintenance and repairs for public streets and spaces 4/10/2025 HDL Development Services 180,000 Amendment Amendment to extend Business License Tax and Fees for a one-year 4/10/2025 Flock Safety City Manager 693,750 Amendment Amendment to purchase and install 44 additional cameras and annual subscription 4/24/2025 Willdan, Veritas, Interwest Development Services 75,000 Contingency Authorize a contingency for supplemental plan review, inspections,and related services 4/24/2025 R Dependable Construction Public Works 41,394 Change Order Ratify Change Order 1 for ADA upgrades at the State Building 4/24/2025 Mariposa Landscapes, Inc Public Works 462,764 Maintenance Service Agreement Landscape Maintenance Area No. 1 with allowable extra work 4/24/2025 Mariposa Landscapes, Inc Public Works 393,588 Maintenance Service Agreement Landscape Maintenance Area No.2 with allowable extra work for 3,271,496 Total Contract Approvals 3,975,550 Release Date Project Manager Department Due Date Project Name Description 4/14/2025 Ryan Gayler CIP 4/29/2025 2025 Slurry Seal Project Various Street Slurry Seal 4/16/2025 Lucero Leyva CIP 5/8/2025 FS 102- Gerald Ford Drive Street Improvements Improvements, and Installation of Landscape and Landscape Irrigation. 4/18/2025 Celina Cabrera Housing 5/19/2025 PDHA Assessment and Installation of Fire Suppression System Assessment, Design, and Installation of recommended Fire Suppression systems at three different housing properties: Las Serenas, Candlewood, and Neighbors. 4/24/2025 Neal Ennis/Ryan Lamb CIP 5/8/2025 Eldorado Drive Pavement Rehabilitation Cold Milling asphalt, pulverizing road sections, striping and signage, various concrete demolition and construction. 4/24/2025 Ryan Gayler CIP 5/8/2025 El Paseo Street Rehabilitation Project The Project will rehabilitate the asphalt concrete street section from Highway 74, east to Highway 111. 4/25/2025 Neal Ennis CIP 5/20/2025 Bridge repairs within the City Limits of Palm Desert These approvals are consistent with the Purchasing Policy and the FY 2024-25 Annual Budget. Contract/Purchase Approval by City Council Request for Proposals Posted during the Month Purchasing Report for April 2025.xlsx Page 2 56 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION MICHELLE NANCE, SENIOR 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 furt her 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): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ JACKSON FOOD STORES, INC. 72300 HIGHWAY 111 PALM DESERT CA 92260-2747 Wednesday, May 14, 2025. May 15, 2025Development Services: Planning 4 May 7, 2025 57 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION 0,&+(//(1$1&(, 6(1,25'(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): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ JACKSON FOOD STORES, INC. 72300 HIGHWAY 111 PALM DESERT CA 92260-2747 Wednesda , Ma 14, 2025. Ma 8, 2025Buildin and Safet ✔ Ma 7 2025 58 59 60 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Michelle Nance, Senior Deputy Clerk SUBJECT: RESOLUTION AMENDING AND RESTATING APPOINTMENTS TO THE BOARD OF DIRECTORS OF THE PALM DESERT RECREATION FACILITIES CORPORATION (PDRFC) RECOMMENDATION: Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND RESTATING THE APPOINTMENTS OF GINA NESTANDE, EVAN TRUBEE, PHIL SMITH, AND OSCAR ARMIJO TO THE BOARD OF DIRECTORS OF THE PALM DESERT RECREATION FACILITIES CORPORATION, AND RESCINDING ANY PRIOR RESOLUTIONS IN CONFLICT HEREWITH.” BACKGROUND/AN ALYSIS: The Palm Desert Recreation Facilities Corporation (PDRFC) is a nonprofit public benefit corporation incorporated on February 19, 1997, to support the development and operation of recreational facilities within the City of Palm Desert. Its primary f unction is to lease, operate, and manage the restaurant and bar at Desert Willow Golf Resort. Pursuant to the Corporation’s Bylaws, the Board of Directors must consist of no fewer than two and no more than nine members, with no more than 50 percent of the Board comprising elected officials or senior management employees of the City of Palm Desert. Directors serve one -year terms and may be reappointed without term limits. Each Director remains in office until the end of their term and until a successor is appointed and qualified. Currently, the PDRFC Board includes four members appointed by the City Council: two elected officials and two community members with a demonstrated interest in recreation and public service. In addition to appointing Directors, the Bylaws authorize the Board to appoint officers, including a President/Chief Executive Officer, Vice President(s), Chief Financial Officer, Secretary, and any assistant officers as needed. At the upcoming annual Board meeting, the following officer appointments are recommended: President/Chief Executive Officer: Richard Cannone Vice President: Martin Alvarez Chief Financial Officer: Veronica Chavez Secretary: Anthony Mejia 61 City of Palm Desert Palm Desert Recreation Facilities Corporation – Board of Directors Page 2 of 2 On January 9, 2025, the City Council reappointed Councilmember Gina Nestande and designated Mayor Pro Tem Evan Trubee as the alternate. However, the intended action was to appoint Mayor Pro Tem Trubee as a voting member. The accompanying resolution clarifies and formalizes his appointment as a voting Director. Additionally, staff recommends reaffirming the appointments of Phil Smith and Oscar Armijo, who have served on the Board since their original appointments in 2009. This action ensures the official record accurately reflects their ongoing service. To streamline future appointments, staff will align the annual appointment of the PDRFC Board of Directors with the City Council’s broader annual appointments to liaison roles, subcommittees, and external organizations, typically conducted in December or January. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact associated with this action. ATTACHMENT: 1. Articles of Incorporation 2. PDRFC Board Bylaws, dated June 9, 2003 3. Draft Resolution – Affirming and Restating Appointments to the Board of Directors 62 52 1cc rsc ARTICLES OF INCORPORATION th<.• c::cc ct i;e oc ci..r. ot State t'+e :;tar .: -a mr a OF FEf32 t997 PALM DESERT RECREATIONAL FACILITIES CORPORATION A California Nonprofit Public Beneft Corporation J=C 31LL dONES, Se ry nf Stete ARTICLE I The name of this corporation is Palm Desert Recreational Facilities Corporation. ARTICLE II A. This corporation is a nonprofit public bene t corporation and is not organized for the private gain of any person. It is organized under the Nonprofit Public Benefit Corporation Law for public purposes. This corporation is not organized for profit. B. The specific purpose of this corporation is to lease, operate and manage a restaurant and bar in the Desert Willow Golf Course in Palm Desert, California, and any other recreation facilities determined by the City of Palm Desert. ARTICLE III The name and address in the State of California of this corporation's initial agent for service of process is: Carlos L. Ortega, City of Palm Desert, 73-510 Fred Waring Drive, Palm Desert, California 92260. 970207 P6402-00001 sas 076128"7 (0) 63 A.RTICLE IV A. This corporation is organized and operated exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or the corresponding provision of any future United States internal revenue law. B. No substantial part of the activities of this corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate or intervene in any political campaign (including the publishing or distribution of statements) on behalf of any candidate for public office. ARTICLE V The principal office for the transaction of the business of this corporation is to be located in the City of Palm Desert, County of Palm Desert, State of California. ARTICLE VI The income of this corporation shall not inure to the benefit of any private person. All income of this corporation shall inure to the benefit of ttie City of Palm Desert. ARTICLE VII This corporation shall dissolve whenever its charter is surrendered to, taken away by, or revoked by the City of Palm Desert. 970207 P6402-00001 sas 0761287 `O) 2 - O 64 ARTICLE VIII The property of this corporation is irrevocably dedicated to charitable, educational and civic purposes and, upon the liquidation, dissolution or abandonment thereof, the remaining assets of the corporation will not inure to the benefit of any private person, officer or director of this corporation, but, after paying or adequately providing for the debts, obligations and liabilities of the corporation, shall be distributed to the Ciry of Palm Desert, or to such fund, foundation or corporation organized and operated for charitable, educational and civic purposes as may be designated by the City Council of the City of Palm Desert, and none of the property, assets or earnings of this corporation may be used to carry on propaganda or otherwise attempt to influence legislation. ARTICLE IX The City of Palm Desert (i) shall have the power to appoint or approve the appointment of 100% of the members of the board of this corporation, and (ii) shall have the power to remove, for cause, directly, any member of the board of directors and appoint a successor. ARTICLE X The City of Palm Desert, a municipal corporation, shall be the sole member of this corporation. 70207 ?54U2-00001 yae 0761287 !0) 3 - b 65 IN WITNESS WHEREOF I, the undersigned, constituting the incorporator of this corporation has hereunto set my hand this day of February, 1997. 9-ti Jeffrey A. Rabi , Incorporator 970207 P6402-00001 sas 0"761287 10) 4 — j) 66 67 68 69 70 RESOLUTION NO. PDRFC - 1 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE PALM DESERT RECREATIONAL FACILITIES CORPORATION, ACKNOWLEDGING THE APPOINTMENT BY THE CITY OF PALM DESERT OF DIRECTORS OF THE CORPORATION, APPOINTING OFFICERS OF THE CORPORATION, APPROVING AMENDED AND RESTATED BYLAWS, AND TAKING CERTAIN OTHER ACTIONS THE BOARD OF DIRECTORS OF THE PALM DESERT RECREATIONAL FACILITIES CORPORATION HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The City Council of the City of Palm Desert has appointed Richard S. Kelly, James C. Ferguson, David Tschopp and Russ Campbell to serve on the Board of Directors of the Corporation. The Board hereby acknowledges and accepts such appointment. Section 2. The Board hereby appoints the following individuals to serve as officers of the Corporation: Carlos L. Ortega President Rachelle Klassen Secretary Paul S. Gibson Chief Financial Officer Such officers are hereby authorized and directed, for and in the name and on behalf of the Corporation, to carry out the day to day business and operations of the Corporation. Section 3. The Board hereby approves the Amended and Restated Bylaws of the Palm Desert Recreational Facilities Corporation, attached hereto as Exhibit A. Section 4. The City Manager of the City of Palm Desert has presented the Board with the food and beverage facilities budget for the coming fiscal year for the Desert Willow Golf Resort. The Board hereby approves the budget. Section 5. The City Manager of the City of Palm Desert has presented the Board with the Management Agreement by and among the City of Palm Desert, Kemper Sports Management, Inc. and the Palm Desert Recreational Facilities Corporation. The Board hereby approves the Management Agreement, and the President of the Corporation, if hereby authorized and directed, for and in the name and on behalf of the Corporation, to execute the Management Agreement. Section 6. The Board of Directors hereby ratifies and confirms all actions taken by the Board, officers and staff of the Corporation since the last meeting of the Board. 71 4 RESOLUTION NO. PDRFC - 1 PASSED, APPROVED, and ADOPTED by the Board of Directors of the Palm Desert Recreational Facilities Corporation, this 9th day of June, 2003, by the following vote, to wit: AYES: CAMPBELL, KELLY, TSCHOPP, AND FERGUSON NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: 10,_ . i.P SECRETARY 736501-4 72 RESOLUTION NO. PDRFC - 1 EXHIBIT "A" AMENDED AND RESTATED BYLAWS OF THE PALM DESERT RECREATIONAL FACILITIES CORPORATION 736501-4 73 AMENDED AND RESTATED BYLAWS OF THE PALM DESERT RECREATIONAL FACILITIES CORPORATION a California Nonprofit Public Benefit Corporation) ARTICLE I OFFICES SECTION 1.01. PRINCIPAL OFFICE The principal office for the transaction of the activities and affairs of the corporation ("principal office") is located at 73-510 Fred Waring Drive, Palm Desert California 92260. The Board of Directors ("the Board") may change the principal office from one location to another. Any change of location of the principal office shall be noted by the Secretary on these Bylaws opposite this Section, or this Section may be amended to state the new location. SECTION 1.02. OTHER OFFICES. The Board may at any time establish branch or subordinate offices at any place or places where the corporation is qualified to conduct its activities. ARTICLE II PURPOSES AND LIMITATIONS SECTION 2.01. PURPOSES This corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the California Nonprofit Public Benefit Corporation Law for charitable and public purposes. This corporation is organized exclusively for charitable purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United State Internal Revenue Law). Notwithstanding any other provision of these Bylaws, this corporation shall not, except to an insubstantial degree, carry on or engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation, and the corporation shall not carry on any other activities not permitted to be carried on (i) by a corporation exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law); ii) by a corporation, contributions to which are deductible under Section 170(c)(2) of the 736509-3 74 Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law). SECTION 2.02. LIMITATIONS a) Political activity. No substantial part of the activities of this corporation shall consist of carrying on propaganda, or otherwise attempting to influence legislation, and this corporation shall not participate in or intervene in (including the publishing or distributing of statements in connection with) any political campaign on behalf of any candidate for public office. b) Property. The property, assets, profits and net income are dedicated irrevocably to the purposes set forth in Section 2.01 above. No part of the profits or net earnings of this corporation shall ever inure to the benefit of any of its Directors, trustees, officers, members (if any), employees, or to the benefit of any private individual. c) Dissolution. Upon the winding up and dissolution of this corporation, after paying or adequately providing for the payment of the debts, obligations and liabilities of the corporation, the remaining assets of this corporation shall be distributed to the City of Palm Desert, or to a nonprofit fund, foundation or corporation which is organized and operated exclusively for charitable purposes and which has established its tax-exempt status under Section 501(c)(3) of the Internal Revenue Code of 1986 (or the corresponding provision of any future United States Internal Revenue Law.) ARTICLE III MEMBERSHIP SECTION 3.01. SOLE MEMBER The City of Palm Desert shall be the sole member of this corporation and shall act through its City Council in accordance with the City's Municipal Code and the applicable state laws. The function of the member shall be to elect the Board of Directors and to perform such other duties as the Board of Directors may from time to time assign or establish with the prior approval of the member. SECTION 3.02. ASSOCIATES The corporation may refer to other persons associated with it as "members" even though such persons are not members within the meaning of that term under Section 5056 of the California Nonprofit Corporation Law or any corresponding Section of any future California nonprofit corporation law. The corporation may confer by amendment of its Articles of Incorporation, some or all of the rights of a member, as set forth in the California Nonprofit Public Benefit Corporation Law, upon any person or persons who do not have the right to vote for the selection of directors, on disposition of substantially all of the assets of the corporation, on a merger or on a dissolution, or on changes of the 736509-3 75 corporation's Articles of Incorporation or these Bylaws, but no such person shall be a member within the meaning of that term under Section 5056 of the California Nonprofit Corporation Law or any corresponding Section of any future California Nonprofit Corporation law. ARTICLE IV DIRECTORS SECTION 4.01. POWERS a) General corporate powers. Subject to the provisions and limitations of the California Nonprofit Corporation Law and any other applicable laws, and any limitations of the Articles of Incorporation and of these Bylaws, the activities and affairs of the corporation shall be managed, and all corporate powers shall be exercised, by or under the direction of the Board. b) Specific Powers. Without prejudice to these general powers, but subject to the same limitations, the Directors shall have the power to: i) Appoint and remove, at the pleasure of the Board, all officers, agents and employees of the corporation; prescribe powers and duties for them that are consistent with law, with the Articles of Incorporation and with these Bylaws; and fix their compensation and require from them security for faithful performance of their duties. ii) Change the principal office or the principal business office in the State of California from one location to another; cause the corporation to be qualified to conduct its activities in any other state, territory, dependency or country and conduct its activities within or outside the State of California; and designate any place within or outside the State of California for the holding of any meeting, including annual meetings. iii) Adopt and use a corporate seal and alter the form thereof. iv) Borrow money and incur indebtedness on behalf of the corporation and cause to be executed and delivered for the purposes of the corporation, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations and other evidences of debt and securities. v) Appoint an Executive Committee (subject to the provisions of the Bylaws) and other committees, and to delegate to the Executive Committee any of the powers and authority of the Board in the management of the business and affairs of the corporation, except the power to amend or repeal Bylaws. Right of notice and participation by the City of Palm Desert representatives at any committee meeting shall be the same as the provided in Section 4.13, below. 736509-3 76 SECTION 4.02. NUMBER AND ELECTION OF DIRECTORS AND RESTRICTIONS ON DIRECTORS a) Authorized number. The authorized number of Directors shall be at least two, but not more than nine until changed by amendment of the Bylaws, with the exact number of directors to be fixed by approval of the Board or the member. b) Election of Directors. The original Directors shall be designated by the Incorporator(s). Thereafter, the Board of Directors shall be elected by the member. No more than 50% of the Directors shall be elected officials or senior management employees of the City of Palm Desert. Each Director, including a Director elected to fill a vacancy or elected at a special member's meeting, shall hold office until expiration of the term for which elected and until a successor has been elected and qualified. c) Restrictions on Directors. Not more than 20 percent of the persons serving on the Board may be interested persons. An interested person is (1) any person being compensated by the corporation for services rendered to it within the previous twelve 12) months, whether as a full-time or part-time employee, independent contractor, or otherwise; and (2) any brother, sister, ancestor, descendant, spouse, brother-in-law, sister-in-law, son-in-law, daughter-in-law, mother-in-law or father-in-law of such person. However, any violation of the provisions of this paragraph shall not affect the validity or enforceability of any transaction entered into by the corporation. A Director may not participate in any vote on any proposed transaction with another organization or entity of which such Director is also an employee, principal or director. However, any violation of the provisions of this paragraph shall not affect the validity or enforceability of any transaction entered into by the corporation. SECTION 4.03. TERM OF OFFICE OF DIRECTORS The Directors newly appointed or selected in accordance with Section 4.02(b) shall hold office for a term of one year, or until successor Directors are elected. SECTION 4.04. VACANCIES a) Events causing vacancy. A Director may be removed by a two-thirds vote of the governing body of the member. A vacancy or vacancies on the Board shall exist on the occurrence of the following: (i) the death, removal, suspension or resignation of any Director; or (ii) the declaration by resolution of the Board of a vacancy in the office of a Director who has been declared of unsound mind by an order of court or convicted of a felony or has been found by final order or judgment of any court to have breached a duty under California Nonprofit Corporation Law. b) Resignations. Except as provided in this Subsection, any Director may resign effective upon giving written notice to the chairman of the Board, if any, or the President or the Secretary of the Board, unless such notice specifies a later time for the resignation to become effective. Except upon notice to the Attorney General of the State of 736509-3 77 California, no Director may resign when the corporation would then be left without a duly elected Director or Directors in charge of its affairs. c) Filling vacancies. Any vacancy on the Board shall be filled by vote of the remaining Directors, whether or not Tess than a quorum, or by a sole remaining Director. d) No vacancy on reduction of number of Directors. No reduction of the authorized number of Directors shall have the effect of removing any Director before the Director's term of office expires. SECTION 4.05. PLACE OF MEETINGS; MEETINGS BY TELEPHONE Meetings of the Board shall be held at the principal office of the corporation or at such other place designated by the Board. In the absence of any such designation, meetings shall be held at the principal office of the corporation. Any meeting may be held by conference telephone or similar communication equipment, so long as all Directors participating in the meeting can hear one another, and all such Directors shall be deemed to be present in person at such meeting. SECTION 4.06. ANNUAL, REGULAR AND SPECIAL MEETINGS a) Annual Meeting. The Board shall hold an annual meeting in conjunction with its regularly scheduled meeting for the purpose of organization, election of officers and the transaction of other business; provided, however, that the Board may fix another time for the holding of its annual meeting. Notice of this meeting shall not be required. b) Regular Meetings. The regular meeting shall be held on the second Monday of June at 11:00 A.M., at the principal office of the corporation, or at any other place designated from time to time by resolution of the Board. Said meeting shall be held without notice. c) Special Meetings. i) Authority To Call. Special meetings of the Board for any purpose may be called at any time by the Chairman of the Board, if any, the President or any Vice President, or the Secretary or any two Directors. ii) Notice. a. Manner of Giving Notice. Notice of the time and place of special meetings shall be given to each Director by one of the following methods: 1. by personal delivery of written notice; 2. by first-class mail, postage pre -paid; 736509-3 78 3. by telephone, either directly to the Director or to a person at the Director's office who would reasonably be expected to communicate that notice promptly to the Director; or 4. by telegram, charges prepaid. All such notices shall be given or sent to the Director's address to telephone number as shown on the records of the corporation. b. Time Requirements. Notices sent by first-class mail shall be deposited in the United States mails at least four (4) days before the time set for the meeting. Notices given by personal delivery, telephone including FAX transmission, or telegraph shall be delivered, telephoned, or given to the telegraph company at least forty-eight (48) hours before the time set for the meeting. c. Notice Contents. The notice shall state the time of the meeting, and the place if the place is other than the principal office of the corporation. It need not specify the purpose of the meeting. SECTION 4.07. QUORUM A majority of the authorized number of Directors shall constitute a quorum for the transaction of business, except to adjourn as provided in Section 4.09. Subject to the more stringent provisions of the California Nonprofit Public Benefit Corporation Law, including, without limitation, those provisions relating to (i) approval of contracts or transactions in which a Director has a direct or indirect material financial interest, ii) approval of certain transactions between corporations having common directorship, iii) creation of an appointment of committees of the Board and (iv) indemnification of Directors, every act or decision done or made by a majority of the Directors present at a meeting duly held at which a quorum is present shall be regarded as the act of the Board. A meeting at which a quorum is initially present may continue to transact business, notwithstanding the withdrawal of Directors, if any action taken is approved by at least a majority of the required quorum for that meeting. SECTION 4.08. WAIVER OF NOTICE Notice of a meeting need not be given any Director who signs a waiver of notice or a written consent to holding the meeting or an approval of the minutes thereof, whether before or after the meeting. The waiver of notice or consent need not specify the purpose of the meeting. All such waivers, consents and approvals shall be filed with the corporate records or made a part of the minutes of the meetings. Notice of a meeting need not be given by any Director who attends the meeting without protesting before or at its commencement the lack of notice to such Director. 736509-3 79 SECTION 4.09. ADJOURNMENT A majority of the Directors present, whether or not a quorum is present, may adjourn any meeting to another time and place. SECTION 4.10. NOTICE OF ADJOURNED MEETING Notice of the time and place of holding an adjourned meeting need not be given, unless the original meeting is adjourned for more than twenty-four (24) hours, in which case notice of any adjournment to another time and place shall be given before the time of the adjourned meeting to the Directors who were not present at the time of the adjournment. SECTION 4.11. ACTION WITHOUT MEETING Any action required or permitted to be taken by the Board may be taken without a meeting, if all members of the Board consent in writing to that action. Such action by written consent shall have the same force and effect as any other validly approved action of the Board. Such written consent or consents shall be filed with the minutes of the proceedings of the Board. For the purposes of this Section 4.11 only, "all members of the Board" shall not include Directors who have a material financial interest in a transaction to which the corporation is a party. SECTION 4.12. FEES AND COMPENSATION This corporation shall not compensate directors, members of committees, officers or employees for their services, but may reimburse directors, members of committees, officers or employees for their reasonable and necessary expenses incurred on behalf of the corporation, in accordance with such rules and procedures as may be established by the Board of Directors. SECTION 4.13. PARTICIPATION OF CITY OFFICIALS The City Manager and members of the City Council of the City of Palm Desert shall be entitled to make recommendations to the Board of Directors or any committee thereof with respect to any matter at any meeting thereof. The City Manager and each member of the City Council of the City of Palm Desert or their authorized representatives shall have the right to attend any meeting of the Board of Directors or any committee thereof with the right of debate, but he or she shall not be entitled to vote on any matter considered by the Board of Directors or any committee thereof. 736509-3 80 ARTICLE V COMMITTEES SECTION 5.01. COMMITTEES OF THE BOARD The Board, by resolution adopted by a majority of the Directors then in office, may create one or more committees, each consisting of two or more Directors, to serve at the pleasure of the Board. Appointments to committees of the Board shall be by majority vote of the Directors then in office. The Board may appoint one or more Directors as alternate members of any such committee, who may replace an absent member at any meeting. Any such committee, to the extent provided in the resolution of the Board, shall have all of the authority of the Board, except that no committee, regardless of Board resolution, may: a) fill vacancies on the Board or in any committee which has the authority of the Board; b) establish or fix compensation of the Directors for serving on the Board or on any committee; c) amend or repeal Bylaws or adopt new Bylaws; d) amend or repeal any resolution of the Board which by its express terms is not so amendable or repealable; e) appoint any other committees of the Board or the members of these committees; f) approve any contract or transaction to which the corporation is a party and in which one or more of its Directors has a material financial interest, except as such approval is provided for in Section 5233(d)(3) of the California Corporations Code. ARTICLE VI OFFICERS SECTION 6.01. OFFICERS The officers of the corporation shall include a President, a Secretary, and a Chief Financial Officer. The corporation may also have, at the Board's discretion, a Chairman of the Board, one or more Vice Presidents, one or more assistant Secretaries, one or more assistant Treasurers, and such other officers as may be appointed in accordance with Section 6.03 of these Bylaws. Any number of offices may be held by the same person, except that neither the Secretary nor the Chief Financial Officer may serve concurrently as either the President or the Chairman of the Board. 736509-3 81 SECTION 6.02. ELECTION OF OFFICERS The officers of the corporation, except those appointed in accordance with the provisions of Section 6.03 of this Article VI, shall be chosen by the Board of Directors, and each shall serve at the pleasure of the Board, subject to the rights, if any, of an officer under any contract of employment. SECTION 6.03. OTHER OFFICERS The Board may appoint and may authorize the Chairman of the Board or the President or another officer to appoint other officers that the corporation may require, each of whom shall have the title, hold office for the period, have the authority and perform the duties specified in the Bylaws determined from time to time by the Board. SECTION 6.04. REMOVAL OF OFFICERS Subject to the rights, if any, of an officer under contract of employment, any officer may be removed, with or without cause, by the Board of Directors, or, except in case of an officer chosen by the Board of Directors, by an officer on whom such power of removal may be conferred by the Board of Directors. SECTION 6.05. RESIGNATION OF OFFICERS Any officer may resign upon written notice to the corporation without prejudice to the rights, if any, of the corporation under any contract to which the officer is a party. SECTION 6.06. VACANCIES IN OFFICE A vacancy occurring in any office because of death, resignation, removal or other cause, shall be filled in the manner prescribed in these Bylaws for regular appointments to that office. SECTION 6.07. RESPONSIBILITIES OF OFFICERS a) Chairman of the Board. If a Chairman of the Board is elected, he or she shall preside at meetings of the Board and shall exercise and perform such other powers and duties as the Board may assign from time to time. If there is no President, the Chairman of the Board shall also be the Chief Executive Officer and shall have the powers and duties of the President of the corporation prescribed by these Bylaws. b) President/Chief Executive Officer. Subject to the control and supervision of the Board, the President shall be the Chief Executive Officer and general manager of the corporation and shall generally supervise, direct and control the activities and affairs and the officers of the corporation. The President, in the absence of the Chairman of the Board, or if there be none, shall preside at all meetings of the Board. The 736509-3 82 President shall have such other powers and duties as may be prescribed by the Board or these Bylaws. c) Vice Presidents. In the absence or disability of the President, the Vice Presidents, if any, in order of their rank, shall perform all of the duties of the President, and, when so acting, shall have all the powers of and be subject to all of the restrictions upon the President. The Vice Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them by the Board or the Bylaws. d) Secretary. i) Book of minutes. The Secretary shall keep or cause to be kept, at the principal office or such other place as the Board may direct, a book of minutes of all meetings and actions of the Board and of committees of the Board. The Secretary shall also keep, or cause to be kept, at the principal office in the State of California, a copy of the Articles of Incorporation and Bylaws, as amended to date. If the corporation is one having members, the Secretary shall also maintain a complete and accurate record of the membership of the corporation, as well as a record of the proceedings of all meetings of the membership. ii) Notices, seal and other duties. The Secretary shall give, or cause to be given, notice of all meetings of the Board and of committees of the Board required by these Bylaws to be given. The Secretary shall keep the seal of the corporation in safe custody and shall have such other powers and perform such other duties as may be prescribed by the Board or the Bylaws. e) Chief Financial Officer. i) Books of account. The Chief Financial Officer of the corporation shall keep or maintain, or cause to be kept or maintained, adequate and correct books and accounts of the properties and transactions of the corporation, and shall send or cause to be sent to the Directors such financial statements and reports as are required by law or these Bylaws to be given. The books of account shall be open to inspection at all reasonable times by any Director, by the City Manager of the City of Palm Desert or his or her designee, and by any member of the City Council of the City of Palm Desert. ii) Deposit and disbursement of money and valuables. The Chief Financial Officer shall deposit all money and other valuables in the name and to the credit of the corporation with such depositories as may be designated by the Board, shall disburse the funds of the corporation as may be ordered by the Board, shall render to the President or Chairman of the Board, if any, when requested, an account of all transactions as Chief Financial Officer and of the financial condition of the corporation and shall have other powers and perform such other duties as may be prescribed by the Board or the Bylaws. 736509-3 83 iii) Bond. If required by the Board, the Chief Financial Officer shall give the corporation a bond in the amount and with the surety or sureties specified by the Board for faithful performance of the duties of the office and for restoration to the corporation of all its books, papers, vouchers, money and other property of every kind in the possession or under the control of the Chief Financial Officer upon death, resignation, retirement or removal from office. ARTICLE VII INDEMNIFICATION OF DIRECTORS, OFFICERS, EMPLOYEES, AND OTHER AGENTS SECTION 7.01. DEFINITIONS For the purposes of this Article VII, "agent" means any person who is or was a director, officer, employee, or other agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another foreign or domestic corporation, partnership, joint venture, trust, or other enterprise; "proceeding" means any threatened, ending, or completed action or proceeding, whether civil, criminal, administrative, or investigative; and "expenses" includes without limitation attorneys' fees and any expenses of establishing a right to indemnification under Section 7.02 or 7.03 of this Article VII. SECTION 7.02. INDEMNIFICATION IN ACTIONS BY THIRD PARTIES The corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any proceeding (other than an action by or in the right of the corporation to procure a judgment in its favor, an action brought under Section 5233 of the California Nonprofit Public Benefit Corporation Law, or an action brought by the Attorney General or a person granted relator status by the Attorney General for any breach of duty relating to assets held in charitable trust), by reason of the fact that such person is or was an agent of the corporation, against expenses, judgments, fines, settlements, and other amounts actually and reasonably incurred in connection with such proceeding if such person acted in good faith and in a manner such person reasonably believed to be in the best interests of the corporation and, in the case of a criminal proceeding, had no reasonable cause to believe the conduct of such person was unlawful. The termination of any proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in the best interests of the corporation or that the person had reasonable cause to believe that the person's conduct was unlawful. 736509-3 84 SECTION 7.03. INDEMNIFICATION IN ACTIONS BY OR IN THE RIGHT OF THE CORPORATION The corporation shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action by or in the right of the corporation, or brought under Section 5233 of the California Nonprofit Public Benefit Corporation Law, or brought by the Attorney General or a person granted relator status by the Attorney General for breach of duty relating to assets held in charitable trust, to procure a judgment in its favor by reason of the fact that such person is or was an agent of the corporation, against expenses actually and reasonably incurred by such person in connection with the defense or settlement of such action if such person acted in good faith, in a manner such person believed to be in the best interests of the corporation, and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances. No indemnification shall be made under this Section 7.03: a) In respect of any claim, issue, or matter as to which such person shall have been adjudged to be liable to the corporation in the performance of such person's duty to the corporation, unless and only to the extent that the court in which such proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for the expenses which such court shall determine; b) Of amounts paid in settling or otherwise disposing of a threatened or pending action, with or without court approval; or c) Of expenses incurred in defending a threatened or pending action which is settled or otherwise disposed of without court approval, unless it is settled with the approval of the Attorney General. SECTION 7.04. INDEMNIFICATION AGAINST EXPENSES To the extent that a agent of the corporation has been successful on the merits in defense of any proceeding referred to in Section 7.03 or 7.04 of this Article VII or in defense of any claim, issue, or matter therein, the agent shall be indemnified against expenses actually and reasonably incurred by the agent in connection therewith. SECTION 7.05. REQUIRED DETERMINATIONS Except as provided in Section 7.04 of this Article VII any indemnification under this Article V11 shall be made by the corporation only if authorized in the specific case, upon a determination that indemnification of the agent is proper in the circumstances because the agent has met the applicable standard of conduct set forth in Section 7.02 or 7.03 of this Article VII, by: 736509-3 85 a) A majority vote of a quorum consisting of directors who are not parties to such proceeding; or b) The court in which such proceeding is or was pending upon application made by the corporation or the agent or the attorney or other person rendering services in connection with the defense, whether or not such application by the agent, attorney, or other person rendering services in connection with the defense, is opposed by the corporation. If the Board cannot authorize indemnification because the number of Directors who are parties to the proceeding with respect to which indemnification is sought is such as to prevent the formation of a quorum of Directors who are not parties to such proceeding, the Board or the attorney or other person rendering services in connection with the defense shall apply to the court in which such proceeding is or was pending to determine whether the applicable standard of conduct set forth in Section 5238(b) or Section 5238(c) has been met. SECTION 7.06. ADVANCE OF EXPENSES Expenses incurred in defending any proceeding may be advanced by the corporation prior to the final disposition of such proceeding upon receipt of an undertaking by or on behalf of the agent to repay such amount unless it shall be determined ultimately that the agent is entitled to be indemnified as authorized in this Article VII. SECTION 7.07. OTHER INDEMNIFICATION No provision made by the corporation to indemnify its or its subsidiary's directors or officers for the defense of any proceeding, whether contained in these Bylaws, a resolution of directors, an agreement, or otherwise, shall be valid unless consistent with this Article VII. Nothing contained in this Article VII shall affect any right to indemnification to which persons other than such directors and officers may be entitled by contract or otherwise. SECTION 7.08. FORMS OF INDEMNIFICATION NOT PERMITTED No indemnification or advance shall be made under this Article VII, except as provided in Section 7.04 or 7.05(b), in any circumstances where it appears: a) That it would be inconsistent with a provision of the Articles of Incorporation, these Bylaws, or an agreement in effect at the time of the accrual of the alleged cause of action asserted in the proceeding in which the expenses were incurred or otherwise amounts were paid, which prohibits or otherwise limits indemnification; or b) That it would be inconsistent with any condition expressly imposed by a court in approving a settlement. 736509-3 86 SECTION 7.09 INSURANCE The corporation shall have power to purchase and maintain insurance on behalf of any agent of the corporation against any liability asserted against or incurred by the agent in such capacity or arising out of the agent's status as such whether or not the corporation would have the power to indemnify the agent against such liability under the provisions of this Article VII, provided, however, that a corporation shall have no power to purchase and maintain such insurance to indemnify any agent of the corporation for a violation of Section 5233 of the California Nonprofit Public Benefit Corporation Law. SECTION 7.10. NONAPPLICABILITY TO FIDUCIARIES OF EMPLOYEE BENEFIT PLANS This Article VII does not apply to any proceeding against any trustee, investment manager, or other fiduciary of an employee benefit plan in such person's capacity as such, even though such person may also be an agent of the corporation as defined in Section 7.01 of this Article VII. The corporation shall have power to indemnify such trustee, investment manager or other fiduciary to the extent permitted by subdivision f) of Section 207 of the California General Corporation Law. ARTICLE VIII RECORDS AND REPORTS SECTION 8.01. MAINTENANCE OF CORPORATE RECORDS The corporation shall keep: a) Adequate and correct books and records of account; b) Minutes in written form of the proceedings of the Board and committees of the Board. c) If applicable, a record of its members, giving their names and addresses and the class of membership held. SECTION 8.02. INSPECTION BY DIRECTORS Every Director shall have the absolute right at any reasonable time to inspect all books, records and documents of every kind and the physical properties of the corporation and the records of each of its subsidiary corporations. This inspection by a Director may be made in person or by an agent or attorney, and the right of inspection includes the right to copy and make extracts of documents. 736509-3 87 SECTION 8.03. ANNUAL REPORT Except as provided under Section 6321(c)(d) or (f) of the California Corporations Code, not later than one hundred twenty (120) days after the close of the fiscal year of the corporation, the Board shall cause an annual report to be sent to all members of the Board. Such report shall contain the following information in reasonable detail: a) The assets and liabilities, including the trust funds, of the corporation as of the end of the fiscal year. b) The principal changes in assets and liabilities, including trust funds, during the fiscal year. c) The revenue or receipts of the corporation, both unrestricted and restricted to particular purposes, for the fiscal year. d) The expenses or disbursements of the corporation, for both general and restricted purposes, during the fiscal year. e) Any information required by Section 8.04. The annual report shall be accompanied by any report on it of independent accountants or, if there is no such report, by the certificate of an authorized officer of the corporation that such statements were prepared without audit from the corporation's books and records. SECTION 8.04. ANNUAL STATEMENT OF CERTAIN TRANSACTIONS AND INDEMNIFICATIONS The corporation shall prepare annually and furnish to each director a statement of any transaction or indemnification of the following kind within one hundred twenty (120) days after the close of the fiscal year of the corporation: a) Any transaction to which the corporation, its parent or its subsidiary was a party, and in which any Director or officer of the corporation, its parent or subsidiary (but mere common director -ship shall not be considered such an interest) had a direct or indirect material financial interest, if such transaction involved over fifty thousand dollars 50,000), or was one of a number of transactions with the same person involving, in the aggregate, over fifty thousand dollars ($50,000). b) Any indemnifications or advances aggregating more than ten thousand dollars ($10,000) paid during the fiscal year to any officer or Director of the corporation pursuant to Article VI! hereof. 736509-3 88 The statement shall include a brief description of the transaction, the names of the Director(s) or officer(s) involved, their relationship to the corporation, the nature of such person's interest in the transaction and, where practicable, the amount of such interest; provided, that in the case of a partnership in which such person is a partner, only the interest of the partnership need be stated. ARTICLE IX CONSTRUCTION AND DEFINITIONS Unless the context otherwise requires, the general provisions, rules of construction and definitions in the California Nonprofit Public Benefit Corporation Law shall govern the construction of these Bylaws. Without limiting the generality of the above, the masculine gender includes the feminine and neuter, the singular includes the plural and the plural includes the singular and the term "person" includes both a legal entity and a natural person. ARTICLE X AMENDMENTS SECTION 10.01. AMENDMENT OF BYLAWS The Board may adopt, amend, or repeal Bylaws, except that (1) if any provision of these Bylaws requires the vote of a larger proportion of the Board than is otherwise required by law, that provision may not be altered, amended, or repealed except by that greater vote; (2) Section 4.02(b) of Article IV, and any provision of these Bylaws which confers rights upon the Board, may only be amended or repealed by approval of the Board; and (3) any amendment or repeal shall be approved by the member in writing. The term "majority," as used in this Section, is as defined in the California Nonprofit Corporation Law. SECTION 10.02. MAINTENANCE OF RECORDS The Secretary of the corporation shall see that a true and correct copy of all amendments of the Bylaws, duly certified by the Secretary, is attached to the official Bylaws of the corporation and is maintained with the official records of the corporation at the principal office of the corporation. 736509-3 89 ARTICLE XI MISCELLANEOUS SECTION 11.01. EXECUTION OF CHECKS AND DRAFTS All checks, drafts or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable the corporation, shall be signed or endorsed by such person or persons and in such manner as, from time to time, shall be determined by resolution of the Board of directors. SECTION 11.02. EXECUTION OF CONTRACTS The Board of directors, except as otherwise provided in these Bylaws, may authorize any officer or officers, agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances; and unless so authorized by the Board of Directors, no officer, agent or employee shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit to render it liable for any purpose or to any amount. SECTION 11.03. REPRESENTATION OF SHARES OF OTHER CORPORATIONS The President or any Vice President or the Secretary or Assistant Secretary of the corporation from time to time designated by general resolution of the Board of Directors, and acting individually and without necessity for specific resolution, are authorized to vote, represent and exercise on behalf of the corporation all rights incident to any and all shares of any other corporation or corporations standing in the name of the corporation. The authority herein granted to such officers to vote or represent on behalf of the corporation any and all shares held by the corporation in any other corporation or corporations may be exercised either by such officers in person or by any person authorized so to do by proxy or power of attorney duly executed by such officers. SECTION 11.04. CERTIFICATE OF SECRETARY A Certificate of the Secretary of this Corporation shall be affixed to the original, or most recent amended version of the Bylaws, such Certificate to be in the following form. 736509-3 90 CERTIFICATE OF SECRETARY I certify that I am the duly elected and acting Secretary of Palm Desert Recreational Facilities Corporation, a California nonprofit public benefit corporation, that the above bylaws, consisting of 17 pages, are the bylaws of this corporation as adopted by the board of directors on .T.E_ 4 , 2003, and that they have not been amended or modified since that date. Executed on 704 3 , 2003, at Palm Desert, California. 736509-3 91 92 RESOLUTION NO. 2025-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING AND RESTATING THE APPOINTMENTS OF GINA NESTANDA, EVAN TRUBEE, PHIL SMITH, AND OSCAR ARMIJO TO THE BOARD OF DIRECTORS OF THE PALM DESERT RECREATION FACILITIES CORPORATION, AND RESCINDING ANY PRIOR RESOLUTIONS IN CONFLICT HEREWITH WHEREAS, the Palm Desert Recreation Facilities Corporation (PDRFC) is a nonprofit public benefit corporation incorporated on February 19, 1997, to support the development and operation of recreational facilities within the City of Palm Desert, including leasing, operating, and managing the restaurant and bar at Desert Willow Golf Resort; and WHEREAS, pursuant to the Corporation’s Bylaws, the Board of Directors shall consist of no fewer than two and no more than nine members, with no more than 50 percent of the Board comprising elected officials or senior management employees of the City of Palm Desert; and WHEREAS, each Director serves a one-year term and continues in office until a successor is appointed and qualified; and WHEREAS, the current Board includes two elected officials and two community members with a demonstrated interest in recreation and pub lic service; and WHEREAS, Phil Smith and Oscar Armijo have continuously served on the Board since their original appointments in 2009, and the City Council desires to reaffirm their appointments to ensure the official record accurately reflects their service. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. The City Council hereby confirms the following appointments to the Board of Directors of the Palm Desert Recreation Facilities Corporation: Gina Nestande Evan Trubee Phil Smith Oscar Armijo SECTION 2. The City Council directs City staff to align future PDRFC Board appointments with the City Council’s annual appointments to liaison roles, subcommittees, and external organizations, typically conducted in December or January of each year. 93 Resolution No. 2025-____ Page 2 ADOPTED ON ________________. JAN C. HARNIK MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-__ 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 _______________________, 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 94 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Veronica Chavez, Director of Finance SUBJECT: APPROVE RESOLUTION REVISING FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT RECOMMENDATION: Adopt a resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REVISING THE ESTABLISHED APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2024-25.” BACKGROUND/ANALYSIS: Proposition 4 (1979) and later amended by Proposition 111 (1990) create a restriction on the amount of government revenue which may be appropriated in any fiscal year. The Appropriations Limit is based on actual appropriations during the base year and increases each year using specified growth factors. The Appropriations Limit applies only to those revenues defined as “proceeds of taxes.” Certain expenditures of tax proceeds do not count as appropriations subject to the limit. The limit is adjusted annually to account for changes in population and changes in the cost of living. Reports are provided by the State of California Finance Demographics Unit. Using the State reports, as part of the Annual Budget, staff calculates the necessary Appropriations Limit for the City. During the FY 2023-24 year-end audit, it was noted that a variance had been identified in the “calculated limit” due to rounding. Because each year builds on the last, staff realized quickly that it meant the current year Appropriations Limit would also need to be revised for accuracy, even though actual appropriations remain well within the limit. The FY 2024-25 Appropriations Limit has been recalculated to ensure that we recognize the correct limit in compliance with State requirements. FY 2024-25 AS SUBMITTED W/ANNUAL BUDGET CORRECTED LIMIT CALCULATED LIMIT APPROPRIATIONS SUBJECT TO LIMIT AMOUNT OVER/(UNDER) LIMIT (109,148,390) (102,653,306) Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: The revised FY 2024-25 Appropriations Limit substantially exceeds the budgeted appropriations subject to the limit. Therefore, there is no additional impact to the General Fund with this action. 95 City of Palm Desert (FY 2024-25 Revised Appropriations Limit) Page 2 of 2 ATTACHMENTS: 1. Resolution No. ___ Revising the FY 2024-25 Appropriations Limit 2. Original Appropriations Limit Calculation 96 RESOLUTION NO. _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, REVISING THE ESTABLISHED APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2024-25 WHEREAS, the voters approved the Gann Spending Limitation Initiative (Proposition 4) on November 6, 1979, adding Article XIII B to the Constitution of the State of California to establish and define annual appropriation limits on state and local government entities; and WHEREAS, Chapter 120-5 of the Revenue and Taxation Code Section 7910 (which incorporates California Senate Bill 1352) provides for the implementation of Article XIII B by defining various terms used in this Article and prescribing procedures to be used in implementing specific provisions of the Article, jurisdiction of its appropriations limit; and WHEREAS, the required calculation to determine the Appropriations Limit for FY 2024-25 has been performed by the Finance Department based on available information and is on file with the Finance Department and available for public review; and WHEREAS, City Council approved the FY 2024-25 Appropriations Limit on June 27, 2024 as part of the FY 2024-25 Annual Budget approval, and staff subsequently became aware of a miscalculation; and WHEREAS, Finance staff will recalculate the Appropriations Limit for respective fiscal periods including FY 2024-25, as soon as information regarding the percentage changes in the local assessment roll due to additional local nonresidential new construction is made available by the Riverside County Assessor’s office. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that the City of Palm Desert Appropriations Limit is hereby established as $182,253,881 for FY 2024-25. ADOPTED ON MAY 22, 2025. JAN C. HARNIK MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK 97 Resolution No. ___ Page 2 I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. ___ 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 May 22, 2025, 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 98 CITY OF PALM DESERT FISCAL YEAR 2024-2025 APPROPRIATIONS LIMIT CALCULATION Article XIII B of the California Constitution requires adoption of an annual appropriation limit. The original base year limit was adopted in FY 1978-79 and has been adjusted annually for increase by a factor comprised of the percentage change in population combined with either the percentage change in California per capita personal income or the percentage change in local assessment roll due to the addition of local nonresidential new construction. The changes in the local assessment roll due to additional local nonresidential new construction for current and prior periods have not been available from the County Assessor's office. On November 1988, voters approved Proposition R which increased the limit to $25,000,000. It expired in November 1992. The FY 1993-94 limit was calculated with prior years re-calculated to reflect the expiration of the $25,000,000 limit. AMOUNT SOURCE A.2023-24 APPROPRIATION LIMIT 173,766,824 PRIOR YEAR'S CALCULATION B.ADJUSTMENT FACTORS 1.POPULATION % POPULATION % CHANGE 1.2200 STATE DEPT OF FINANCE POPULATION CONVERTED TO RATIO (1.22+100)/100 1.012200 CALCULATED 2.INFLATION % USING % CHANGES IN CALIF PER CAPITA PERSONAL INCOME PER CAPITA % CHANGE 3.62 STATE DEPT OF FINANCE PER CAPITA CONVERTED TO RATIO (3.62+100)/100 1.036200 CALCULATED 3.CALCULATION OF FACTOR FOR FY 2024-25 1.0488 B1*B2 C.2024-25 APPROPRIATIONS LIMIT BEFORE ADJUSTMENTS 182,253,881 B3*A D.OTHER ADJUSTMENTS 0 CALCULATED E.2024-25 APPROPRIATIONS LIMIT 182,253,881 C+D 99 CITY OF PALM DESERT FISCAL YEAR 2024-2025 11 100 CITY OF PALM DESERT FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT CALCULATION Article XIII B of the California Constitution requires adoption of an annual appropriation limit. The original base year limit was adopted in FY 1978-79 and has been adjusted annually for increase by a factor comprised of the percentage change in population combined with either the percentage change in California per capita personal income or the percentage change in local assessment roll due to the addition of local nonresidential new construction. The changes in the local assessment roll due to additional local nonresidential new construction for current and prior periods have not been available from the County Assessor's office. On November 1988, voters approved Proposition R which increased the limit to $25,000,000. It expired in November 1992. The FY 1993-94 limit was calculated with prior years re-calculated to reflect the expiration of the $25,000,000 limit. 101 102 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Nicholas Martin, Senior Business Enterprise Systems Administrator SUBJECT: APPROVE AMENDMENT NO. 2 TO CONTRACT NO. C46710 WITH PARK CONSULTING GROUP, INC. FOR CONSUTLING AND PROJECT MANAGEMENT SERVICES FOR THE IMPLEMENTATION OF CLARITI LAND MANAGEMENT SYSTEM RECOMMENDATION: 1. Approve Amendment No. 2 to Contract No. C46710 with Park Consulting Group, Inc. of Irvine, California, for Consulting and Project Management Services for the Implementation of Clariti Land Management System to increase compensation in an amount not to exceed $299,880. 2. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 3. Authorize the City Manager to execute the amendment and any other documents necessary to effectuate this action. BACKGROUND/ANALYSIS: On November 16, 2023, the City Council awarded a one-year contract to Park Consulting Group, Inc. in the amount of $481,500 for Consulting and Project Management Services for the Implementation of Clariti Land Management Solution. In January 2024, the City kicked off the project to replace its existing Land Management System, Trakit, with a new system, Clariti. While the project was initially slated for completion by January 2025, the timeline has since been extended to October 17, 2025. This extension is the result of several unforeseen delays and necessary adjustments to the project’s scope, including expanded system requirements and additional integration needs identified during the discovery and design phases. Park Consulting Inc. (PCG) has been an essential partner in advancing this complex software transition. PCG has provided support in the following areas: project advisory, discovery and design, software configuration, data conversion, and user acceptance testing. Approving this amendment will allow staff to continue utilizing PCG’s expertise through final implementation. Continued engagement with PCG is crucial to maintaining project momentum, mitigating risk, and ensuring the successful implementation of the Clariti system. 103 City of Palm Desert Approve Amendment No. 2 to Park Consulting Group Contract No. C46710 Page 2 of 2 Project Description: The Land Management System (LMS) is the city system that generates public permits and tracks various projects around the city. It is a critical tool for the daily operations of various departments involved in permit issuance to the public. The current system, Trakit, has become outdated as the software’s limitations and structure do not allow any further improvement. After a thorough evaluation of multiple LMS solutions, Staff chose Clariti as the overall best choice for the City’s needs. Clariti is a cloud-based solution that uses the Salesforces Customer Relationship Management platform. Configuration of the public portal will allow many permitting services to be streamlined through a combination of smart workflow configurations and automation of simple tasks. This implementation will increase internal and external transparency, customer service capabilities, and the accuracy of information. PCG’s guidance throughout this process has been invaluable in assisting staff with communication with the programmers; translating and eliminating gaps betwee n the technical requirements and real-life application, needs, and expectations of the City. FINANCIAL IMPACT: Funds have been budgeted in Account No. 1104190 -4390000 for this purpose. Therefore, there is no additional impact to the General Fund with this action. PCG Advisory Agreement Amount Description Contract No. C46710 $481,500 Clairiti Implementation Advisory Services thru February 2025 Amendment #1 $0.00 Time Extension Only thru June 2025 Amendment #2 (This Request) $299,880 Time Extension and Compensation thru Nov 2025 TOTAL $781,380 ATTACHMENTS: 1. Executed Contract No. C46710 2. Executed Amendment No. 1 3. Proposal from PCG 4. Draft Amendment No. 2 104 Contract No. C46710 CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT 1.PARTIES AND DATE. This Agreement is made and entered into this 16th day of November, 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 Park Consulting Group, Inc., a California S Corporation, with its principal place of business at 200 Spectrum Center Drive, Suite 300, Irvine, CA. 92618 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 2.RECITALS. 2.1 Project. The City is a public agency of the State of California and is in need of professional services for the following project: Land Management Solution Advisory and Implementation Services hereinafter referred to as “the Project”). 2.2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant is duly licensed and has the necessary qualifications to pr ovide such services. 3.TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from November 16th, 2023, to February 28th, 2025, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 105 Contract No. C46710 performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit "A" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: Glenn Park, Principal Consultant; Bryan Tung, Implementation Consultant; Jared Tan, Development Consultant; David Bloomgren, Training Consultant. 3.2.5 City's Representative. The City hereby designates Clayton von Helf, Information Systems Manager, or his/her designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement ("City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 3.2.6 Consultant's Representative. Consultant hereby designates Glenn Park, Founder and Principal Consultant, or his/her designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 106 Contract No. C46710 shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations shall be grounds for the City to terminate the Agreement for cause. DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 107 Contract No. C46710 3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. A)General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO insured contract” language will not be accepted. B)Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non - owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. C)Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 108 Contract No. C46710 D)Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers and representatives. E)Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: 1)A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; 2)Pay on behalf of wording as opposed to reimbursement; 3)Concurrency of effective dates with primary policies; and 4)Policies shall “follow form” to the underlying primary policies. 5)Insureds under primary policies shall also be insureds under the umbrella or excess policies. If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years followin g termination of the Agreement. 3.2.11.2 Other Provisions or Requirements. A)Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B)Duration of Coverage. Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants. C) Primary/Non-Contributing. Coverage provided by Consultant shall be primary and any insurance or self -insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 109 Contract No. C46710 primary and non-contributory basis for the benefit of City before the City’s own insurance or self - insurance shall be called upon to protect it as a named insured. D)City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement. E)Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. F)Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. G)Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. H)Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. I)Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. J)Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 110 Contract No. C46710 K)Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. L)Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. M)Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, al l agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. N)City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. O)Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. P)Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. Q)Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. 3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 111 Contract No. C46710 the laws, regulations and policies of this Section. 3.3 Fees and Payments. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "B" attached hereto and incorporated herein by reference. The total compensation shall not exceed Four Hundred Eighty One Thousand Five Hundred Dollars and No Cents 481,500) without written approval of the City Council or City Manager, as applicable. 3.3.2 Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "B" of this Agreement. 3.3.4 Travel Expenses. In accordance with Government Code section 53232.2(c), the Internal Revenue Service rates for reimbursement of travel, meals, lodging, and other actual and necessary expenses as established in Publication 463, or any successor publication, shall be used to determine reimbursement rates for Consultant. Travel in business class, first class or any category on any flight above the coach/economy level will not be reimbursed. 3.3.5 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 authoriz ation from the City. 3.4 Labor Code Requirements. 3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 112 Contract No. C46710 sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of Services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant. 3.4.3 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.5 Accounting Records. 3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.6 General Provisions. 3.6.1 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 113 Contract No. C46710 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 114 Contract No. C46710 3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: Park Consulting Group 200 Spectrum Center Drive, Suite 300 Irvine, CA 92618 ATTN: Glenn Park, Principal Consultant City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 ATTN: Clayton von Helf, Information Systems 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 noti ce on the date actual notice occurred, regardless of the method of service. 3.6.3 Ownership of Materials and Confidentiality. 3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. 3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 115 Contract No. C46710 3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be respons ible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. 3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. 3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 116 Contract No. C46710 another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. 3.6.5 [Reserved] 3.6.6 Indemnification. 3.6.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers, or representatives. 3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prio r written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 117 Contract No. C46710 this Agreement. 3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.6.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 3.6.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. SIGNATURES ON NEXT PAGE] DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 118 Contract No. C46710 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND PARK CONSULTING GROUP 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 PARK CONSULTING GROUP By:____________________________________ Glenn Park President By: ____________________________________ Glenn Park Secretary QC: MN Insurance: Initial Review Final Approval DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 119 Contract No. C46710 EXHIBIT "A" SCOPE OF SERVICES See attached proposal. DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 120 PARK CONSULTING GROUP Page | 1 SCOPE OF SERVICES AND COST PROPOSAL City of Palm Desert Land Management Solution Advisory & Implementation Services Park Consulting Group (PCG) will provide the City of Palm Desert advisory and implementation professional services for the City of Palm Desert’s Land Management Solution (LMS) Project: Proposal Date: October 25, 2023 A.PCG will assist and deliver services for the City of Palm Desert with the activities associated with the City’s LMS project such as those listed below: Project Advisory: Advise on and review project scope, goals and deliverables that support business goals in collaboration with the City’s leadership and stakeholders. Support the City’s project lead and manager of project plan, timeline, milestones, project status reports, and deliverables with Clariti/ Speridian Project Manager. Provide best practices and tools for project execution, management, and delivery. Attend project meetings with staff and project stakeholders. This may include internal project briefings and project briefings with Clariti/ Speridian, in addition to others as requested. Review and provide input on all contracts with external vendors for integrations development and change orders. Support escalation for questions and issues from the Project Team and address and/or escalate issues / risks as they come up. Proactively identify issues, risks, and conflicts within the project team, third party vendor partners, and the business as needed; consult with city management to formulate a plan to resolve. Provide feedback on leading best practices for project implementation and deployment processes. Discovery and Design Support the City’s project team members / SMEs responsible for conveying requirements and decisions to Clariti/ Speridian for requirements and specifications documentation. Support and attend working sessions with department SMEs to complete questionnaires and documentation. Support reviews of business requirements documentation from Clariti/ Speridian. Exhibit A DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 121 PARK CONSULTING GROUP Page | 2 Support management feedback to Clariti/ Speridian project team including updates to project management tools to input comments and track status changes until completion of documentation. Attend meetings with City and Clariti/ Speridian project teams related to requirements gathering and process flow reviews and updates, as requested. Build, Configure, and Validation Build, Configuration, and Customization Support reviews with the City’s leads (SMEs) who are responsible to validate developed configuration, data conversion, interfaces, and reports/ forms. Support tracking and follow-up of configuration issues and corrections identified by the City’s leads and project team. Work with the Clariti/ Speridian Project Manager and City project team to ensure issues are tracked and responded to with adequate detail and within required SLAs. Facilitate issue resolution meetings with Clariti/ Speridian and City’s project team. Support retesting and verification of issue resolution of build and configuration issues. Support tracking of requirements updates and change orders and responses to questions and feedback are within required SLAs. Build and Configuration Validation Support verification of Clariti/ Speridian-owned configuration and development is completed based on approved scope of services. Review and provide feedback for validation test plan provided by Clariti/ Speridian. Support City project team to review configuration and build development basedonapprovedbusinessrequirementsdocumentation. Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. Support verification of fixes and close out of resolved issues. Data Conversion Support City’s data conversion activities during the implementation project’s data conversion passes, which includes the final data conversion pass for production cutover. Support as-is and to-be field mapping reviews. Support data conversion validation reviews and meetings with staff. Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. Support verification of fixes and close out of resolved issues. User Acceptance Testing: Support review of Clariti/ Speridian user testing strategy and plan. Support reviews of test cases/ scripts with City team. Support user acceptance participant training and walkthroughs. Exhibit A DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 122 PARK CONSULTING GROUP Page | 3 Support setup of test case scenarios as needed. Support user acceptance testing / retesting effort with City-designated testing leads and testers. Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. Support verification of fixes and close out of resolved issues. End User Training: Support review of Clariti/ Speridian training plan. Support review of training environment setup and deployment. Support coordination and facilitation of end user training as needed. Support training documentation and job aid development as requested by City. Cutover and Go-Live Activities Support Production cutover, Go-Live, post-Go-Live stabilization, system troubleshooting, and enhancements tracking (reporting, system enhancements, regulatory changes, etc.). Provide onsite Go-Live support during the first two (2) weeks following production cutover, as approved by the City. B.Key Assumptions: The City has performed and completed a comprehensive future-state process definition project. The scope of this project is defined based on the needs and processes resulting from the project. Other processes, capabilities, and user groups not associated with the needs assessment will be considered out of scope to ensure the City and Clariti/ Speridian can deliver the project within the planned 12–14-month timeline. City will provide a primary project management contact that is available to the project at least 20 hours per week throughout the duration of services. City will provide process leads and subject matter experts to serve as project team members that are available throughout the duration of services to successfully deliver PCG services. Required minimum of 15-20 per Lead/ SME per week. City estimates PCG should have the full ability to deliver the project remotely with minimal on-site visits. When there are occasions the City requires PCG for onsite meetings and onsite project work, travel expenses will be applied in accordance to the cost proposal details. Remote access to Clariti, Project Management systems, and current LMS system will be needed upon the start of services. This includes, and is not limited to, access to VPN/virtual desktop logins, compatible Internet Browser, Clariti and TrakIt applications with admin permissions, and Clariti/ Speridian/ City-owned Project Management Tools. Exhibit A DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 123 PARK CONSULTING GROUP Page | 4 C.Proposed Cost - Total not-to-exceed budget and duration of services: Duration of Services: 14-months (based on Clariti/ Speridian timeline) Total Compensation: $481,480 Project Phase Proposal Pre-work (2 Months) $0.00 Discovery and Design (1 Month) $32,500.00 Build, Configure, and Validation (10 Months) $301,300.00 Testing and Training (3 Months) $89,700.00 Go-Live Support (2 Weeks) $42,980.00 Sub-Total $466,480.00 Travel Expenses (30 Days/ Consultant @ 500/day) $15,000.00 Total Not To Exceed $481,480.00 PCG’s services will be billed on a fixed monthly basis of $33,320 per month for the duration of the project. Billing will begin upon project initiation with Clariti/ Speridian. Travel Expenses: When there are occasions the City requires PCG for onsite meetings and onsite project work, travel expenses will be applied in accordance to the proposal details. Additional Services: Additional requested services will be billed on a time and materials basis based on the rate table below: Project Resource 2024 Rates 2025 Rates Senior Project Consultant $250/ Hour $265/ Hour Project Consultant $200/ Hour $215/ Hour Exhibit B DocuSign Envelope ID: FD11EE8D-FB2F-44B7-986C-361D6CA0B144 124 Contract No. ___________ Page 1 of 3 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND PARK CONSULTING GROUP, INC. 1.Parties and Date. This Amendment No. 1 to the PROFESSIONAL SERVICES AGREEMENT, CONTRACT NO.C46710 is made and entered into as of this 10th day of February, 2025, by and between the City of Palm Desert (“City”) and Park Consulting Group, Inc., an S Corporation, with its principal place of business at 200 Spectrum Center Drive, Suite 300, Irvine, CA 92618 ("Consultant"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Agreement. The City and Consultant have entered into an agreement entitled “Professional Services Agreement” dated November 16, 2023 (“Agreement” or “Contract”) for the purpose of retaining the services of Park Consulting Group, Inc. to provide Land Management Solution Advisory and Implementation Services. 2.2 Amendment. The City and Consultant desire to amend the Agreement to extend the term for no additional compensation. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3.6.14 of the Agreement. 3. Terms. 3.1.1 Section 3.1.2 of the Agreement is hereby amended in its entirety to read as follows: 3.1.2 Term. The term of this Agreement shall be from March 1st, 2025, to June 30th, 2025, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 3.3 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. 1. 3.4 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. C46710 Docusign Envelope ID: D2AEC9F6-6C7C-4307-8A73-31CCE240A8B0 125 Contract No. ___________ Page 2 of 2 Revised 01-2024 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND PARK CONSULTING GROUP, INC. IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the Professional Services Agreement 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: Isra Shah Best Best & Krieger LLP PARK CONSULTING GROUP, INC., AN S CORPORATION By: Glenn Park President By: Glenn Park Secretary City Clerk QC: Contract QC: _____ Insurance: _____ Initial Review _____ Final Approval C46710 Docusign Envelope ID: D2AEC9F6-6C7C-4307-8A73-31CCE240A8B0 126 Exhibit "A" Docusign Envelope ID: D2AEC9F6-6C7C-4307-8A73-31CCE240A8B0 127 Exhibit "A" Docusign Envelope ID: D2AEC9F6-6C7C-4307-8A73-31CCE240A8B0 128 Exhibit "A" Docusign Envelope ID: D2AEC9F6-6C7C-4307-8A73-31CCE240A8B0 129 Exhibit "A" Docusign Envelope ID: D2AEC9F6-6C7C-4307-8A73-31CCE240A8B0 130 PARK CONSULTING GROUP Page | 1 SCOPE OF SERVICES AND COST PROPOSAL City of Palm Desert Land Management Solution Advisory & Implementation Services Park Consulting Group (PCG) will provide the City of Palm Desert advisory and implementation professional services for the City of Palm Desert’s Land Management Solution (LMS) Project: A. PCG will assist and deliver services for the City of Palm Desert with the activities associated with the City’s LMS project such as those listed below: Project Advisory: • Advise on and review project scope, goals and deliverables that support business goals in collaboration with the City’s leadership and stakeholders. • Support the City’s project lead and manager of project plan, timeline, milestones, project status reports, and deliverables with Clariti/ Speridian Project Manager. • Provide best practices and tools for project execution, management, and delivery. • Attend project meetings with staff and project stakeholders. This may include internal project briefings and project briefings with Clariti/ Speridian, in addition to others as requested. • Review and provide input on all contracts with external vendors for integrations development and change orders. • Support escalation for questions and issues from the Project Team and address and/or escalate issues / risks as they come up. • Proactively identify issues, risks, and conflicts within the project team, third party vendor partners, and the business as needed; consult with city management to formulate a plan to resolve. • Provide feedback on leading best practices for project implementation and deployment processes. Discovery and Design • Support the City’s project team members / SMEs responsible for conveying requirements and decisions to Clariti/ Speridian for requirements and specifications documentation. • Support and attend working sessions with department SMEs to complete questionnaires and documentation. • Support reviews of business requirements documentation from Clariti/ Speridian. • Support management feedback to Clariti/ Speridian project team including updates to project management tools to input comments and track status changes until completion of documentation. 131 PARK CONSULTING GROUP Page | 2 • Attend meetings with City and Clariti/ Speridian project teams related to requirements gathering and process flow reviews and updates, as requested. Build, Configure, and Validation Build, Configuration, and Customization • Support reviews with the City’s leads (SMEs) who are responsible to validate developed configuration, data conversion, interfaces, and reports/ forms. • Support tracking and follow-up of configuration issues and corrections identified by the City’s leads and project team. Work with the Clariti/ Speridian Project Manager and City project team to ensure issues are tracked and responded to with adequate detail and within required SLAs. • Facilitate issue resolution meetings with Clariti/ Speridian and City’s project team. • Support retesting and verification of issue resolution of build and configuration issues. • Support tracking requirements updates and change orders and responses to questions and feedback are within required SLAs. Build and Configuration Validation • Support verification of Clariti/ Speridian-owned configuration and development is completed based on approved scope of services. • Review and provide feedback for validation test plan provided by Clariti/ Speridian. • Support City project team to review configuration and build development based on approved business requirements documentation. • Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. • Support verification of fixes and close out resolved issues. Data Conversion • Support City’s data conversion activities during the implementation project’s data conversion passes, which includes the final data conversion pass for production cutover. • Support as-is and to-be field mapping reviews. • Support data conversion validation reviews and meetings with staff. • Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. • Support verification of fixes and close out resolved issues. User Acceptance Testing: • Support review of Clariti/ Speridian user testing strategy and plan. • Support reviews of test cases/ scripts with City team. • Support user acceptance participant training and walkthroughs. • Support setup of test case scenarios as needed. • Support user acceptance testing / retesting effort with City-designated testing leads and testers. 132 PARK CONSULTING GROUP Page | 3 • Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. • Support verification of fixes and close out resolved issues. End User Training: • Support review of Clariti/ Speridian training plan. • Support review of training environment setup and deployment. • Support coordination and facilitation of end user training as needed. • Support training documentation and job aid development as requested by City. Cutover and Post-Go-Live Activities • Support Production cutover, Go-Live, post-Go-Live stabilization, system troubleshooting, and enhancements tracking (reporting, system enhancements, regulatory changes, etc.). • Provide onsite Go-Live support during the first week following production cutover, as approved by the City. • Provide remote support during the remaining weeks following the first week of onsite support. • Provide support through the transition to Clariti Support and Speridian Maintenance & Operations (M&O). B. Proposed Cost - Total not-to-exceed budget and duration of services: • Duration of Services: 9 months • Total Compensation: $299,880 PCG’s will honor the rates established and agreed upon at the beginning of this project in 2023 and will continue to be at a fixed monthly basis of $33,320 per month for the duration of the project. Project Phase Proposal Extended Project Duration (9 Months) 133 134 Contract No. ___________ Page 1 of 3 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND PARK CONSULTING GROUP, INC. 1.Parties and Date. This Amendment No. 2 to the PROFESSIONAL SERVICES AGREEMENT, CONTRACT NO.C46710 is made and entered into as of this 10th day of April, 2025, by and between the City of Palm Desert (“City”) and Park Consulting Group, Inc., an S Corporation, with its principal place of business at 200 Spectrum Center Drive, Suite 300, Irvine, CA 92618 ("Consultant"). The City and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Agreement. The City and Consultant have entered into an agreement entitled “Professional Services Agreement” dated November 16, 2023 (“Agreement” or “Contract”) for the purpose of retaining the services of Park Consulting Group, Inc. to provide Land Management Solution Advisory and Implementation Services. 2.2 Amendment. The City and Consultant desire to amend the Agreement to extend the term and for additional compensation. 2.3 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section 3.6.14 of the Agreement. 3. Terms. 3.1.1 Section 3.1.2 and 3.3.1 of the Agreement is hereby amended in its entirety to read as follows: 3.1.2 Term. The term of this Agreement shall be from April 1st, 2025, to November 30th, 2025, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement and shall meet any other established schedules and deadlines. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "B" including Exhibit “B-1” attached hereto and incorporated herein by reference. The total compensation shall not exceed SEVEN HUNDRED EIGHTY-ONE THOUSAND THREE HUNDRED EIGHTY DOLLARS AND NO CENTS ($781,380.00) without written approval of the City Council or City Manager, as applicable. Original Cost FY 23/24 Amended Cost FY 24/25 3.2 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. C46710 135 Contract No. ___________ Page 2 of 3 Revised 01-2024 BBK 72500.00001\32445060.1 3.3 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. 3.4 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. 3.5 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] C46710 136 Contract No. ___________ Page 3 of 3 Revised 01-2024 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 2 TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND PARK CONSULTING GROUP, INC. IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 2 to the Professional Services Agreement as of the day and year first above written. CITY OF PALM DESERT By: Chris Escobedo Interim City Manager Attest: By: Anthony J. Mejia City Clerk Approved as to form: By: Isra Shah Best Best & Krieger LLP PARK CONSULTING GROUP, INC., AN S CORPORATION By: Glenn Park President By: Glenn Park Secretary City Clerk QC: Contract QC: _____ Insurance: _____ Initial Review _____ Final Approval C46710 137 PARK CONSULTING GROUP Page | 1 SCOPE OF SERVICES AND COST PROPOSAL City of Palm Desert Land Management Solution Advisory & Implementation Services Park Consulting Group (PCG) will provide the City of Palm Desert advisory and implementation professional services for the City of Palm Desert’s Land Management Solution (LMS) Project: A.PCG will assist and deliver services for the City of Palm Desert with the activities associated with the City’s LMS project such as those listed below: Project Advisory: •Advise on and review project scope, goals and deliverables that support business goals in collaboration with the City’s leadership and stakeholders. •Support the City’s project lead and manager of project plan, timeline, milestones, project status reports, and deliverables with Clariti/ Speridian Project Manager. •Provide best practices and tools for project execution, management, and delivery. •Attend project meetings with staff and project stakeholders. This may include internal project briefings and project briefings with Clariti/ Speridian, in addition to others as requested. •Review and provide input on all contracts with external vendors for integrations development and change orders. •Support escalation for questions and issues from the Project Team and address and/or escalate issues / risks as they come up. •Proactively identify issues, risks, and conflicts within the project team, third party vendor partners, and the business as needed; consult with city management to formulate a plan to resolve. •Provide feedback on leading best practices for project implementation and deployment processes. Discovery and Design •Support the City’s project team members / SMEs responsible for conveying requirements and decisions to Clariti/ Speridian for requirements and specifications documentation. •Support and attend working sessions with department SMEs to complete questionnaires and documentation. •Support reviews of business requirements documentation from Clariti/ Speridian. •Support management feedback to Clariti/ Speridian project team including updates to project management tools to input comments and track status changes until completion of documentation. EXHIBIT "A-1" 138 PARK CONSULTING GROUP Page | 2 •Attend meetings with City and Clariti/ Speridian project teams related to requirements gathering and process flow reviews and updates, as requested. Build, Configure, and Validation Build, Configuration, and Customization •Support reviews with the City’s leads (SMEs) who are responsible to validate developed configuration, data conversion, interfaces, and reports/ forms. •Support tracking and follow-up of configuration issues and corrections identified by the City’s leads and project team. Work with the Clariti/ Speridian Project Manager and City project team to ensure issues are tracked and responded to with adequate detail and within required SLAs. • Facilitate issue resolution meetings with Clariti/ Speridian and City’s project team. • Support retesting and verification of issue resolution of build and configuration issues. •Support tracking requirements updates and change orders and responses to questions and feedback are within required SLAs. Build and Configuration Validation •Support verification of Clariti/ Speridian-owned configuration and development is completed based on approved scope of services. •Review and provide feedback for validation test plan provided by Clariti/Speridian. •Support City project team to review configuration and build development based onapproved business requirements documentation. •Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. •Support verification of fixes and close out resolved issues. Data Conversion •Support City’s data conversion activities during the implementation project’s data conversion passes, which includes the final data conversion pass for production cutover. •Support as-is and to-be field mapping reviews. •Support data conversion validation reviews and meetings with staff. •Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. •Support verification of fixes and close out resolved issues. User Acceptance Testing: •Support review of Clariti/ Speridian user testing strategy and plan. •Support reviews of test cases/ scripts with City team. •Support user acceptance participant training and walkthroughs. •Support setup of test case scenarios as needed. •Support user acceptance testing / retesting effort with City-designated testing leads and testers. EXHIBIT "A-1" 139 PARK CONSULTING GROUP Page | 3 •Support reporting, tracking, and follow-up with Clariti/ Speridian of defects and fixes. •Support verification of fixes and close out resolved issues. End User Training: •Support review of Clariti/ Speridian training plan. •Support review of training environment setup and deployment. •Support coordination and facilitation of end user training as needed. •Support training documentation and job aid development as requested by City. Cutover and Post-Go-Live Activities •Support Production cutover, Go-Live, post-Go-Live stabilization, system troubleshooting, and enhancements tracking (reporting, system enhancements, regulatory changes, etc.). •Provide onsite Go-Live support during the first week following production cutover, as approved by the City. •Provide remote support during the remaining weeks following the first week of onsite support. •Provide support through the transition to Clariti Support and Speridian Maintenance & Operations (M&O). B.Proposed Cost - Total not-to-exceed budget and duration of services: •Duration of Services: 9 months •Total Compensation: $299,880 PCG’s will honor the rates established and agreed upon at the beginning of thisproject in 2023 and will continue to be at a fixed monthly basis of $33,320 permonth for the duration of the project. Project Phase Proposal Extended Project Duration (9 Months) C46710EXHIBIT "A-1" 140 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Jessica Gonzales, Housing Manager SUBJECT: APPROVE MODIFIED CONTRACT AND ADDENDUM FOR AFFORDABLE HOUSING COMPLIANCE AND PROPERTY MANAGEMENT SERVICES WITH NATIONAL COMMUNITY RENAISSANCE RECOMMENDATION: Approve modifications to the contract and addendum for Affordable Housing Compliance and Property Management Services for the Housing Authority (“Authority”)-owned Properties with National Community Renaissance. BACKGROUND/ANALYSIS: On February 27, 2025, the Authority Board approved the award of a contract for Affordable Housing Compliance and Property Management Services for the Authority-owned properties to National Community Renaissance (“National CORE”). Legal counsel has requested that the following agreed-upon modifications be approved by the Authority Board, to ensure consistency with legal requirements and to reflect the negotiated terms: These modifications will provide National CORE the opportunity to be more effective in identifying and resolving any property issues, as well as provide better oversight in the transition and closing Agreement Section Original Term Requested Modification Agreed Upon Modification 1, 27(a), 6 Contract term begins July 1, 2025 Contract term begins June 1, 2025 Modifying the effective date to a month earlier will offer flexibility in the transition 5. Authority entitled to retain10% of monthly base fee under specified scenarios Reduce retention amount to 3% of the monthly base fee A 3% monthly base fee is more consistent with industry standards. This fee retention is applicable only when there’s a performance issue with management to cure rather than terminate contract. 3(f), 16, 22 Sets forth various standards and responsibilities that National Core must follow Clarification of terms. Additional language regarding overtime costs and identification of certain personnel were included for clarification purposes. All other terms of the agreement remain in full effect unless negotiated and approved by the Executive Director, pursuant to February 27, 2025, Authority Board action. 141 Palm Desert Housing Authority Approve Modified Contract with National CORE Page 2 of 2 out the current fiscal year. Staff recommends approval of the agreed upon modifications to the contract and addendum. Legal Review: This report has been reviewed by the Authority’s special counsel, Richards Watson and Gershon. Appointed Body Recommendation: Not applicable. Resolution No. HA-93 provides that the Housing Commission shall review and make recommendations on all matters to come before the Authority except “matters relating to the management and operations of the Authority”. FINANCIAL IMPACT: The projected Net Operating Income from the properties is sufficient to cover the anticipated operational costs. There is no impact to the General Fund with this action. ATTACHMENTS: 1. HA48960 - Redline Management Services Agreement 5-22-25 2. HA48960 - Redline Addendum Agreement 5.22.25 142 DRAFT for Discussion Page 1 of 3 MANAGEMENT TRANSITION ADDENDUM TO AGREEMENT FOR PROPERTY MANAGEMENT SERVICES THIS ADDENDUM TO AGREEMENT FOR PROPERTY MANAGEMENT SERVICES (this “Addendum”), dated as of February 27, 2025, is attached to and made part of the foregoing Agreement for Property Management Services (the “Agreement”) entered into as of even date herewith by and between the PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic (the “Authority” or “PDHA”), and National Community Renaissance, LLC, a California Nonprofit Corporation (the “National CORE”), and supplements the Agreement as follows: 1. To enable a smooth transition of property management responsibilities from current provider Falkenberg/Gilliam and Associates (“Current Manager”), the current property manager, to National CORE, the Parties hereby enter into this Addendum to allow National CORE to complete the following tasks prior to the Effective Date of the Agreement (i.e., Junuly 1, 2025), during the period beginning the date of execution of this Addendum, and ending May 31June 30, 2025 (collectively, the “Transition Period”): a. Personnel Evaluation: Meet and evaluate all the current office and maintenance staff for the Properties (as defined in the Agreement); gather all necessary information regarding existing issues at the Properties requiring the attention of National CORE; conduct background checks of Current Manager staff who will be seeking employment with National CORE at the Properties, in accordance with state and federal law; and, at the discretion of National CORE and with the approval of PDHA pursuant to Section 16(a) of the Agreement, hire any current provider employees currently working at the Properties to serve as National CORE employees. b. Cross Training: Conduct thorough training of all Current Manager employees who will be hired as National CORE employees on all applicable National CORE policies and procedures, including without limitation on the use of software tools and work order tablets. c. Assistant Regional Supervisor: Allow the National CORE Regional Supervisor, along with the National CORE Assistant Regional Supervisor, or other National CORE management staff in charge of overseeing National CORE operations at the Properties, to walk all Properties, and meet with all PDHA staff members working onsite at the Properties. d. Meetings: Participate in weekly property management meetings with PDHA and Current Manager, and monthly City of Palm Desert Housing Commission meetings. e. Deep Knowledge: Familiarize the National CORE Regional Supervisor and National CORE Assistant Regional Supervisor on all current and upcoming projects and maintenance items for each Property, and all resident -related 143 DRAFT for Discussion Page 2 of 3 issues (including, without limitation, legal suits brought by tenants or former tenants) that are in process. f. Staff Onboarding: Onboard all staff members through National CORE human resource programs, including, without limitation, with respect to payroll, benefits, health and dental insurance programs. g. PDHA Systems: Set up PDHA management and operations systems, including without limitation with respect to accounting, finance, occupancy, resident relations, maintenance, computer systems, and tablet training for all maintenance staff. 2. As compensation for National CORE’s work during the Transition Period, the Authority shall, in total, pay the sum of Ten and No/100 Dollars ($10). 3. If National CORE or any of its agents, employees, consultants, contractors or subcontractors enter the Properties during the Transition Period, then such entry shall be subject to all of National CORE’s obligations regarding indemnity and insurance under the Agreement. Anything herein to the contrary notwithstanding, neither National CORE nor any of its approved contractors shall be permitted to access the Properties, or any part thereof, during the Transition Period unless and until National CORE has provided to PDHA the necessary insurance certificate(s) evidencing that National CORE has procured and is maintaining the insurance policies and coverages required to be maintained by National CORE pursuant to the terms of this Addendum. [SIGNATURE PAGE TO FOLLOW] 144 DRAFT for Discussion Page 3 of 3 THIS ADDENDUM was entered the 27th day of February, 2025. Authority: PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic By: _____________________________, Jan Harnik, Chairperson ATTEST: _______________________________, Anthony J. Mejia, Secretary APPROVED AS TO FORM: _______________________________ Special Counsel Manager: NATIONAL COMMUNITY RENAISSANCE, a California Nonprofit Corporation By: _____________________________ Title: ___________________________ By: ____________________________ Title: ___________________________ 145 146 Contract No. HA48960 1 AGREEMENT FOR PROPERTY MANAGEMENT SERVICES THIS AGREEMENT FOR PROPERTY MANAGEMENT SERVICES (this “Agreement”) is made and entered into as of February 27, 2025, by and between the PALM DESERT HOUSING AUTHORITY, a public body, corporate and politic having a principal place of business at 73-510 Fred Waring Drive, Palm Desert, California, (the "Authority") and National Community Renaissance, LLC, a California Nonprofit Corporation, having a principal place of business at 9692 Haven Avenue, Suite 100, Rancho Cucamonga, California 91730 (the "Manager"). The Authority and the Manager may be referred to herein individually as a "Party" and collectively as the "Parties." RECITALS A. The Authority is a public body, corporate and politic, designated to be the operator of those certain real properties described on Exhibit A attached hereto and incorporated herein by this reference (the "Properties"). B. The Manager is engaged in the business of managing, maintaining, repairing, operating and leasing apartment buildings, and has represented to the Authority that the Manager is experienced and competent in said business. C. The Authority and the Manager desire to enter into this Agreement. NOW, THEREFORE, in consideration of the foregoing premises and of the mutual and dependent covenants contained in this Agreement, the Parties agree as follows: 1. Effective Date. The effective date of this Agreement (the "Effective Date") shall be July June 1, 2025. 2. Appointment. The Authority hereby appoints the Manager and the Manager accepts appointment as the manager of the Properties on the terms and conditions set forth in this Agreement. The Parties acknowledge and agree that this Agreement is only a Management Agreement between the Parties, that the Parties are not joint venturers or partners, and that the Manager shall not be deemed to be an employee of the Authority. The Manager shall at all times be an independent contractor. The Manager agrees and covenants that it is not entitled to and will not take any tax position that is inconsistent with being a service provider to the Authority with respect to the Properties. By way of example only, the Manager hereby agrees and covenants that it will not claim any depreciation or amortization deduction, investment tax credit, or deduction for any payment of rent with respect to the Properties or any portion thereof. 147 Contract No. HA48960 2 3. Professional Management Standards and the Administrative Plan. (a) The Manager agrees to exert its best efforts, to furnish the services of its organization, and to exercise the highest degree of professional competence in managing the Properties and to provide the Authority with the economic return consistent with proper management under the guidelines provided by Authority for affordable housing. (b) The Manager shall manage, maintain, repair, operate and lease the Properties consistent with other multi-unit apartment complexes or similar type properties in the surrounding vicinity with comparable facilities and amenities. (c) Notwithstanding the authority granted to the Manager by this Agreement, the Manager agrees to abide by those standards and instructions that Authority may issue from time to time in connection with the Administrative Plan (the “Administrative Plan”). In the event of any inconsistency between this Agreement and the Administrative Plan, this Agreement shall control. The Administrative Plan adopted b y Resolution No. HA-100, a copy of which shall be on file with the City Clerk, and any amendments thereto, include the statements of policies of the Authority for the purpose of property operations. (d) The Manager hereby covenants and agrees to use the Manager's best efforts to actively manage, maintain, repair, operate and lease the Properties at their maximum potential, considering the Authority’s guidelines for affordable housing and the Administrative Plan. Manager will provide copies of any procedural manuals created for the purpose of implementing said Administrative Plan. (e) The Manager shall be responsive to all tenant requests and concerns in a timely manner and shall make its best efforts to satisfy tenant requests and concerns at on-site offices. The Manager shall make its best efforts to notify Authority of tenant requests and concerns which are likely to be expressed by a tenant directly to the Authority. The Manager shall establish policies in order to address tenant requests and concerns and resolution in the event of a dispute in accordance with the Administrative Plan. (f) Each of the Properties having sixteen (16) or more units shall have a member of the Manager’s management staff that shall live on-site, and serve as the caretaker for the Property at which they live (“On-site Caretaker”). The On-site Caretakers are expected to handle “routine” after hours work” without having to incur overtime costs. The Authority shall not be responsible for furnishings, equipment, postage, utilities, telephone, or such other ancillary costs of the on-site staff. The specific apartment shall be approved by the Authority prior to occupancy by staff. All other Properties having less than sixteen (16) units shall have a caretaker that lives on-site. All Properties will have an emergency contact available seven days a week, 24 hours a day. “Routine after hours work” shall include, without limitation, the following: (i) checks on security alarms or disturbances in common areas; (ii) assisting residents who are locked out of their units; 148 Contract No. HA48960 3 (iii) minor repairs of appliances, lighting or plumbing in units; (iv) maintenance of lighting in common areas; and (iv) locking and securing laundry rooms and other shared facilities. 4. Periodic Requirements The Manager shall perform the following: (a) Not less than once each week: (i) A member of the Manager’s management staff will walk each property in its entirety to identify any items of concern that may or may not be visible from frequently traveled thoroughfare and prepare a detailed report of findings to be provided to Authority weekly. (ii) Inspect all mechanical and physical systems located on the Properties and provide a report to Authority of said inspections monthly, or immediately if finding is of an emergency nature. (b) Not less than once during every calendar month: (i) Analyze the occupancy level of the Properties. (ii) Analyze the financial condition of the Properties including, without limitation, cash flow, income, expenses, average turnover and turnover cost, and per unit average cost. (iii) Provide Authority with a report regarding the status of maintenance and repair projects including those in process, upcoming, completed, and those that have not been completed or which are recommended and have not yet been implemented, and which are to be carried over to the next fiscal year. (c) Not less than once annually on or before February 1st: (i) Prepare and deliver to Authority a comprehensive financial budget plan (Plan), described in Section 18, including reserve accounts where applicable, for the Properties for the upcoming fiscal year operations July 1 to June 30. (ii) Examine the general condition of the Properties, prepare a list of needed repairs and maintenance, and deliver that list to Authority along with the estimated costs for review. Once reviewed by Authority, incorporate estimations into the Plan. Said list will include all items identified by the Manager and be prioritized by the Manager in order of necessity. (i.e. Critical, Health and Safety, Necessary, Preventative, etc.) Formatted: Font: (Default) Arial 149 Contract No. HA48960 4 (d) The Manager will notify Authority of work, supplies, services, maintenance, or repairs (emergency or otherwise) that were not included in the current operating budget but that may be necessary prior to the next operating budget year: (i) On or before December 1st of each year, the Manager will provide Authority a report of necessary budget adjustments to be made for work that was pre-approved by the Authority and estimates of anticipated work that is necessary and any justification. (ii) In the event there are items that have not been included in the Plan or in Section 4(d)(i), above, then as necessary, the Manager will provide a report of those items by priority to the Authority. Authority staff will determine whether said requests should be forwarded as a special item to the Palm Desert Housing Authority Board (the “Authority Board”). (e) On the basis of the information gathered pursuant to Sections (a)-(d) of this Section 4, the Manager shall recommend in writing amendments and updates to the Administrative Plan at least once annually on or before February 1st. The proposed amended Administrative Plan, together with any recommendations of the Manager for achieving maximum economic return of the Properties in light of the affordable housing requirements of the Properties, shall be submitted to the Authority. The Manager will continually review the Administrative Plan for the purpose of keeping the Authority advised of necessary or desirable changes. (f) Crime-Free Multi Housing Program. Throughout the term of this Agreement, the Manager covenants and agrees to participate in and fully complete the City’s Crime-Free Multi Housing Program for the Properties. Evidence of compliance with this requirement shall be forwarded annually to the Authority within said twelve (12) month period. 5. Determination of Performance Criteria. The Parties have developed various performance criteria categories which will be used to evaluate the performance of the Manager. Such performance criteria categories are described on Exhibit G attached hereto and incorporated herein by reference. (a) For each performance standard (as set forth in Request for Proposals, “Performance Standards”) that is not met in a given month by the Manager, the Authority may retain a portion of the monthly base fee owed to the Manager for the applicable month (the “Fee Retention”), as set forth below: i. The Fee Retention shall be equal to 103% of the monthly base fee for each of the following performance standards that the Manager fails to meet in a given month: (i) Tenant Accounts Receivable, (ii) Vacancy rate, (iii) Vacant Unit Turn-around, and (iv) Work Order completion time. For the avoidance of doubt, when calculating the Fee Retention, a separate 103% retention shall apply for each performance standard that the Manager has failed to meet in a given month. For example, if the Manager fails to meet three of the above listed performance standards in a given month, the Fee Retention for that month would be 150 Contract No. HA48960 5 309%. ii. The Authority shall be entitled to retain 103% of the monthly base fee for each performance standard that the Manager has failed to meet in a given month until the Manager’s failure to meet such performance standard has been cured. A failure to meet a performance standard set forth in subsection (i) above shall be deemed cured when the cumulative average of performance of the applicable performance standard in the previous four month period is equal to the applicable performance standard. For example, if the Manager fails to achieve the necessary vacancy rate standard of [5%] (or the then applicable vacancy rate standard) in a given month, such failure to meet the vacancy rate standard shall not be deemed cured until the average of vacancy rate performance standards for a four month period is greater than or equal to [5%] (or the then- applicable vacancy rate standard). Once a Manager’s failure to meet a given performance standard has been cured, the Manager shall be entitled to payment of any fee retained for that performance standard. 6. Term. The Parties agree that the term ("Term") of this Agreement shall be for 610 months, commencing Junely 1, 2025, and ending June 30, 2030, and may be extended in accordance with the provisions of Section 28 below. Following the initial term of the contract, the Authority may opt to extend the contract for two (2) additional terms of three (3) years each term and expiring June 30, 2036. Contract extensions may be exercised contingent upon satisfactory performance and at the sole discretion of the Housing Authority, and in accordance with the provisions of Section 28 below. Notwithstanding the foregoing, Manager shall have the right to enter the Properties during the Transition Period, pursuant to the terms of that certain Management Transition Addendum to Agreement for Property Management Services (the “Addendum”), attached hereto and incorporated herein by reference. 7. On-Site Management Office. The Authority shall provide adequate space on the Properties for a management office in accordance with Exhibit C attached hereto and incorporated herein by this reference. The Manager s hall prepare and submit designs and budget for pre-approval to furnish and/or refurbish the management offices. The Authority shall pay all approved expenses related to such office, including, but not limited to, furnishings, equipment, postage, office supplies, electricity, telephone, answering service, and security monitoring services, if any. The Authority shall retain ownership of all of the foregoing purchases. 8. Information on the Properties. The Manager acknowledges that it has been furnished with any available building plans and specifications as well as environmental reports, if available, for each of the Properties. The Manager also acknowledges that it has received copies of any available manufacturer's preventive maintenance schedules, guarantees and warranties pertinent to the fixtures, mechanical equipment, and appliances used in the operation of the Properties. The Manager shall maintain files for each of the Properties with current plans and specifications, environmental reports, manufacturer's preventive maintenance schedules, guarantees and warranties pertinent 151 Contract No. HA48960 6 to any new installations, repairs, fixtures, appliances as well as any equipment, used in the operation of the Properties. 9. Familiarity With Equipment. The Manager has become thoroughly familiar with the character, location, construction, layout, plan and operation of the Properties, and especially of the electrical, heating, plumbing, air conditioning and ventilation systems, and all other mechanical equipment, and the Manager shall maintain such familiarity. 10. Leasing. The Manager will act as the Authority's exclusive agent in leasing the dwelling units (each, a “Unit”, and collectively, the "Units") in the Properties. The following provisions will apply: (a) The Manager shall use all reasonable efforts to keep the Properties leased by procuring tenants for the Properties and negotiating and executing on behalf of the Authority all leases for the Units. The Manager is authorized to enter into and execute initial leases with tenants for a minimum term of six (6) months and a maximum term of 12 months without the further written approval of the Authority. The Authority shall provide the Manager with income and rent guidelines for each of the Properties annually or as frequently as Department of Housing and Community Development (“HCD”) issues adjustments to the Riverside County Median Income levels. Such guidelines shall include a provision for utility allowances, if applicable, as set by the Riverside County Housing Authority which are in effect at the time the rents are established. Any lease for a shorter or longer period shall require the prior written consent of the Authority. The Manager shall also submit on or before the 10th of each month to the Authority copies of all notices terminating any tenant leases and all notices to vacate served on any tenant prior to the expiration of the lease term or after the expiration of the lease term if tenancy has converted to month-to-month, together with an explanation for the applicable notice. The Manager shall provide Authority with the equipment detail of each Unit annually for the purpose of determining the proper utility allowances by March 1st of each year. (b) The Manager shall lease all the Units in accordance with the terms of this Agreement, in compliance with all applicable federal, state, and local laws, in accordance with the Administrative Plan and any further direction from the Authority. (c) The Manager will be responsible for screening and selection of existing and prospective tenants in accordance with affordable housing guidelines and applicable federal, State and local laws. The Manager will follow the tenant selection policy described in the Administrative Plan and will show the Properties to all prospective tenants who qualify under the Authority’s affordable guidelines based on the waiting list policy and Unit availability. (d) The Manager will prepare and verify eligibility certifications and recertifications in accordance with the guidelines established by the Authority. Rents will be adjusted pursuant to the Rent Setting Policy of the Authority adopted by Resolution HA-62, a copy of which shall be on file with the City Clerk, and any amendments thereto. 152 Contract No. HA48960 7 (e) The Manager shall not decline to lease any Unit on the Properties to a prospective tenant, or otherwise discriminate, on the basis of race, color, national origin, ancestry, sex, gender, gender identity, gender expression, religion, physical or mental disability, genetic information, marital status, familial status, sexual orientation, or any other classification then protected by law. (f) Prior to executing any lease with a tenant, the Manager shall obtain the written consent of the prospective tenant to perform a complete background check, and shall perform same, including: (1) investigate the financial ability and history of the prospective tenant to pay rent, (2) perform necessary credit checks, (3) obtain references from employers and prior landlords, (4) verify the income of tenants as specified in the Administrative Plan, (5) verify all matters that are required to be checked by federal and/or state law, in accordance with the type of affordable funding involved, and (6) verify those matters that may and should be checked to ensure and promote the safety and welfare of all tenants of the Properties, the Manager’s staff and the public. A non-exclusive list of the required and permissive verifications, consent language and sampling of reputable online resources are set forth in Exhibit K, as may be modified by changes in applicable law. The Manager shall comply at all times with applicable federal, state and local law in all aspects of the tenant screening and application process. 11. Security Deposits. The Manager will collect, deposit, and disburse security deposits in accordance with the terms of each tenant's lease. The amount of each security deposit will be as specified in the Administrative Plan or applicable law. The collection and disbursement of security deposits will also be governed by the then applicable state and local laws. All tenant security deposits will be placed in one or more trust accounts separate from all other accounts and funds of the Manager and/or the Authority. The security account or accounts will be established at a bank as specified by the Authority whose deposits are insured by an agency of the United States government. The security deposit account or accounts will be carried in the Authority's name and designated on record as “PDHA Security Deposit Account” and in addition, the Director of Finance of the City of Palm Desert (the "Director of Finance"), his/her designees, and up to four designated representatives of the Manager shall be included as signatories to the security deposit account or accounts. The balance of the security deposit account or accounts shall not be used to pay general operating expenses without the written consent of the Authority. Notwithstanding the foregoing, security deposits received must be documented and accounted for at all times and the Manager must comply with any applicable state and local laws concerning interest payments on security deposits. The number and structure of security deposit accounts is set forth in Exhibit D attached hereto and incorporated herein by this reference. 12. Collection of Rents and Other Receipts. The Manager will collect when due all rents, charges and other amounts receivable on the Authority's account in connection with the management, maintenance, repair, operation, and leasing of the Properties. Such receipts (except for tenants’ security deposits, which will be handled as specified in Section 11 above) will be deposited in an account or accounts (the “General Operating Account”), separate from all other accounts and funds, of the Manager, at the bank as specified by the Authority whose deposits are insured by an agency of the United States Government. This account or accounts will be carried in the Authority's name and 153 Contract No. HA48960 8 designated on record as “PDHA General Operating Account" and in addition, the Financial Operations Manager, the Director of Finance, his/her designees, and up to four designated representatives of the Manager shall be included as signatories to this account, or accounts. The number and structure of operating accounts is set forth in Exhibit D attached hereto and incorporated herein by this reference. 13. Enforcement of Leases. The Manager will ensure full compliance by each tenant with the terms of that tenant's lease. Involuntary termination of tenancies shall comply with all applicable laws and regulations. The Manager is designated as the Authority’s agent with the right to enter and take possession of the Units, in accordance with applicable law, and shall lawfully terminate any tenancy when, in the Manager's reasonable judgment, sufficient cause (including, but not limited to, nonpayment of rent) for such termination occurs under the terms of the tenant's lease. For this purpose, the Manager is authorized to consult with legal counsel qualified to bring unlawful detainer actions and to execute notices to vacate and judicial pleadings incident to such actions. The Manager shall keep the Authority informed of such actions and follow such direction as the Authority may provide for the conduct of any such action. Attorney’s fees and costs incurred in connection with unlawful detainer actions will be paid out of the General Operating Account as an expense of the Properties. Notwithstanding the foregoing, the Manager is at all times ultimately responsible for the enforcement of leases. Payment by the Authority of legal fees and costs incurred in connection with unlawful detainer actions does not create an attorney-client relationship between the Authority and the Manager’s unlawful detainer legal counsel. 14. Maintenance and Repair. The Manager will maintain the Properties in good, clean, safe and sanitary condition in accordance with the Administrative Plan and local codes and in a condition acceptable to the Authority at all times. This will include, but not be limited to, cleaning, painting, plumbing, grounds care, and such other maintenance and repair works as may be necessary, subject to any limitations imposed by the Authority in addition to those contained herein. The Manage r will ensure all vendors maintain the required licensing, insurance, permits, and approvals for any work performed in accordance with this Agreement, as well as all local, state, and federal codes and regulations. The Manager will maintain an on-site property entry log for all vendors. Incident thereto, the following provisions will apply: (a) The Manager will complete preventative maintenance activities in the most cost effective and efficient manner as possible, while maintaining the quality of the Properties. (b) The Manager will contract in compliance with Section 21 hereof with qualified independent contractors for the maintenance and repair of roofs, air-conditioning and heating systems, and for extraordinary repairs beyond the capability of regular maintenance employees. (c) The Manager is aware of the requirements of California Labor Code Section 1720 et seq., 1770 et seq., and California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”) which require the payment of prevailing wage 154 Contract No. HA48960 9 rates and the performance of other requirements on “public works” and “maintenance” projects. The projects performed under this contract may be subject to compliance monitoring and enforcement by the Department of Industrial Relations. 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 $1,000 or more, the Manager agrees to fully comply with such Prevailing Wage Laws, including but not limited to requirements related to public works contractor registration and maintenance and submittal of certified payroll records. The Authority shall provide the Manager with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. The Manager shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the services and shall post copies of the Manager’s principal place of business and at the project site. The Manager shall defend, indemnify, and hold the Authority, its elected official officers, employees, and agents free and harmless from any claim or liability arising of any failure or alleged failure to comply with the Prevailing Wage Laws. (d) The Manager will systematically receive and investigate all service requests from tenants, take such action thereon as may be warranted and will keep records of the same. Service requests will be addressed within four working days; provided, however, emergency requests will be received and serviced on a 24-hour basis. The Manager shall promptly investigate and respond to serious complaints as appropriate, and shall comply with all applicable federal and state laws in connection with same, including but not limited to the requirements of the Fair Employment and Housing Act and other applicable fair housing laws, and shall promptly report such complaints and the Manager’s response thereto to the Authority. The Manager shall advise tenants to report to law enforcement all complaints involving actual or threatened criminal activity. The Manager shall provide the Authority with a monthly summary of all serious complaints received by the Manager. This summary shall include a brief description of each complaint and the Manager’s response thereto. (e) The Manager is authorized to purchase while complying with the provisions of Section 21, on behalf of the Authority, all materials, equipment, tools, appliances, supplies and services necessary for proper maintenance and repair. The Authority shall retain ownership of all said materials, equipment, tools, appliances and supplies. (f) Notwithstanding any of the foregoing provisions, the prior written approval of the Authority will be required for any maintenance or repair project in which the overall cost is expected to exceed $15,000 for labor, materials, and/or otherwise in connection with the maintenance and repair of the Properties. This limitation does not apply to recurring expenses within the limits of the operating budg et or to emergency repairs involving manifest danger to persons or property, or that are required to avoid suspension of any necessary service to the Properties. In the latter event, the Manager will inform the Authority in writing of the facts as promptly as possible. For purposes herein, “recurring expenses” shall include utilities, pest control, laundry services, pool services, courtesy patrol, regulatory permits, and vermin extermination. 155 Contract No. HA48960 10 (g) The Manager shall enter into all service contracts (such as pool maintenance/repair, laundry, vermin extermination and landscape maintenance) in accordance with Section 21 and maintain all required permits and approvals on equipment, pools, facilities, etc. for each of the Properties. (h) The Manager shall not undertake any work of construction or any work which would modify or change the exterior of any building or grounds. 15. Utilities and Services. The Manager will make arrangements for water, electricity, gas, sewage and trash disposal, telephone and cable service for the Properties. The Manager will enter into such contracts as may be necessary to secure such utilities, acting as Manager for the Authority. 16. Employees. (a) All personnel of the Manager involved with the management, maintenance, repair, operation or leasing of the Properties will be employees of the Manager and will be hired, paid, directed, supervised, and discharged by the Manager. The Manager will provide sufficient resources (staff and/or services) in order to fulfill its obligations to the Authority under the terms of this Agreement. All costs associated with hiring and discharging of such employees will be borne by the Manager. The Manager warrants that it has established employment policies in accordance with employment laws and said policies include a drug free workplace or similar substance abuse policy, a zero- tolerance violence in the workplace policy and all other policies mandated by state and Federal law. The Manager warrants that all of its employees meet all qualifications, licensing and code requirements, applicable to completing assigned tasks. The Manager warrants that training will be provided to employees as may be required by local, state or federal law and will be conducted by an individual or entities qualified to provide such training. It is understood that, subject to sub-Sections (b) and (c), below, all direct costs associated with employees working "on-site" and specifically identified on Exhibit F will be borne by the Authority to include their direct salary (but not bonuses or overtime that have not been preapproved by the Authority), Social Security taxes, employment taxes, medical insurance, Pension Plan, Worker's Compensation, uniforms, Housing allowance and other benefits (if applicable). Any costs associated with overtime will only be paid by the Authority when preapproved by the Authority. The Authority shall have the right to interview and approve the hiring of any prospective site managers or regional (non -site specific) staff included in Exhibit “F”. Only the cost of those positions set forth on Exhibit F shall be paid by the Authority. Positions may be added, deleted or modified from Exhibit F based on property need with approval of the Manager and the Executive Director of the Authority. Notwithstanding the foregoing, all personnel of the Manager are exclusively the employees of the Manager, and not of the Authority. (b) The Manager shall have full and exclusive responsibility and liability for payment of all federal, state and local payroll taxes and for contributions for unemployment insurance, Social Security (FICA) and other benefits imposed or assessed under any provision of law or by regulation, and which are measured by salaries, wages, or other remuneration paid or payable by the Manager to its employees engaged in any work in connection with this Agreement or indicated herein, for the payment of which the 156 Contract No. HA48960 11 Authority will reimburse the Manager, subject to the written approval of the Finance Director. The Manager shall have full and exclusive responsibility and liability for the withholding and payment of any income taxes required to be withheld from the wages or salaries of said employees under any provision of law or regulation. The Manager agrees to save and hold the Authority harmless from all claims for penalties, interest, or costs which may be assessed under any law or any rules or regulations thereunder with respect to its failure or inability to perform the aforesaid responsibilities. (c) Upon ten days demand from the Authority, the Manager shall cause any employee of the Manager to be removed from the Properties, including any corporate employee not included on Exhibit F, at the Manager's sole cost and expense. (d) The Manager shall be solely responsible for the methods and means of managing its personnel to achieve the desired results. Authority’s authority over and involvement in the Manager’s employment matters shall be limited consistent with the Manager’s status as sole employer of its employees. 17. Disbursements from General Operating Account. (a) From the funds collected and deposited by the Manager in the General Operating Account pursuant to Section 12 above, the Manager will make or request the following disbursements promptly when payable: (i) The Manager shall request from the Director of Finance of the Authority reimbursement to the Manager for the actual compensation payable to employees specified in “Exhibit F”, together with the actual cost of the medical insurance, dental insurance, life insurance, Workers Compensation insurance, and taxes and assessments payable to local, state and federal governments actually paid by Manager in connection with the employment of such employees, as determined by the Manager and approved by the Director of Finance of the Authority, or his/her designees. The Manager shall be required to provide the Director of Finance of the Authority, or his/her designee, with financial statements or other documentation, as may be reasonably requested by the Director of Finance of the Authority, or his/her designee, substantiating the requested reimbursement. (ii) Notwithstanding the provisions of sub-Section (a)(i), above, the Manager shall make disbursements of all sums otherwise due and payable by the Authority as expenses of the Properties authorized to be incurred by the Manager under the terms of this Agreement, including compensation payable to the Manager, pursuant to Section 27 below, for its services hereunder. (iii) All checks between $2,500 and $4,999 shall require at least two signatures. All checks over $5,000 shall require at least two signatures, one of which must be the signature of an authorized representative of the Authority. a. Check requests for second signature must be accompanied by adequate documentation to ensure that vendor limits are not exceeded. 157 Contract No. HA48960 12 (iv) All wire transfers will be initiated by the Director of Finance of the Authority or his/her designee. (b) Except for the disbursements mentioned in Section 12 above, funds will be disbursed or transferred from the General Operating Account only as the Authority may from time to time direct in writing. The Manager reimbursement checks in excess of $500 shall require signatures of both the authorized signatory of the Manager and the Finance Director of the Authority or his/her designee. (c) In the event the balance in the General Operating Account is at any time insufficient to pay disbursements due and payable under Section 17(a) above, the Manager will inform the Authority prior to disbursing funds of that fact and the Authority’s Director of Finance will then remit to the Manager sufficient funds to cover the delinquency. In no event will the Manager be required to use its own funds to pay such disbursements that are directly related to the operation of the Properties. (d) The Authority will pay for or reimburse to the Manager only those expenses that are expressly authorized by this Agreement to be borne by the Authority. Any expenses incurred by the Manager as a result of any legal judgment or administrative ruling against the Manager or its officers, employees or agents, or any monetary settlement in lieu of same to resolve any dispute, or the costs incurred by the Manager in connection therewith, including attorneys' fees for advice to or defense of the Manager, shall be the sole responsibility of the Manager. In the event any Authority monies have been disbursed for this purpose, the Manager shall immediately reimburse the Authority. The Authority may, in its sole discretion, elect to pay or reimburse the Manager for all or a portion of such expenses and/or costs if the Authority deems that to be in the best interests of the Authority or the community which it serves or to promote the public health, safety and/or welfare, and only upon written agreement between the Authority and the Manager, signed by each of the Parties. 18. Budgets. The Manager will prepare and submit annual operating budgets for the Properties in forms satisfactory to the Director of Finance, which budgets shall include but not be limited to the following: Current Year Final Budget Adopted; Current Year Expected Actual; Upcoming Year Budget Request; Detailed Descriptions for any marginal deviations from Current Year; Detailed Descriptions for any Capital Expenditures for each Property; including Reserve Accounts where applicable; and Exhibit F described above. Except as permitted under Section 14(e) above, annual disbursements for operating expenses will not exceed the amount authorized by the approved budget without the prior written consent of the Authority. The Manager shall prepare a recommended operating budget for each fiscal year during the term of this Agreement, and shall submit to the Authority by March 1st of each year for the following fiscal year (July 1 to June 30). Additionally, the Manager shall prepare and submit to the Authority a budget for each fiscal year thereafter covering the period from July 1 through the next following June 30. Each year of the term the Authority will promptly inform the Manager of any changes incorporated in the approved budget, and the Manager will keep the Authority informed of any material anticipated deviation from the receipts or disbursements stated in the approved budget. The Manager may, upon the written 158 Contract No. HA48960 13 request and after receipt of written approval of the Authority, make disbursements exceeding the budgeted allowances within the budgeted categories for the Properties. 19. Records and Reports. In addition to any requirements specified in the Administrative Plan or other provisions of this Agreement, the Manager will have the following responsibilities with respect to accounts and reports: (a) The Manager will establish and maintain, on a modified accrual basis, a comprehensive system of records, books and accounts in a manner satisfactory to the Authority. All records, books and accounts will be subject to examination at reasonable hours by any authorized representativ e of the Authority. The Manager shall maintain the books and records in good condition and order and shall preserve the books and records for such time-period as the Authority would be legally required to preserve and maintain the books and records. (b) The Manager will be subject to a quarterly review and an annual audit conducted by a firm of the Authority's choice. The Manager agrees to make available all applicable records to the Authority's auditors for annual review. The report will be prepared in accordance with generally accepted auditing standards. The audit report submitted by the audit firm will also be subject to a single audit at the Authority's discretion. The preparer’s services will be an expense of the Authority. (c) The Manager will furnish information as may be requested by the Authority from time to time with respect to the financial, physical or operational condition of the Properties, including, without limitation: (i) calculation and billing rent and other tenant charges; (ii) maintaining accounts receivable and delinquency records; (iii) maintaining rent rolls; (iv) processing and paying operating and capital invoices; (v) recording activity and comparing such activity to budgeted amounts; (vi) reconciling all expenditures; (vii) remitting excess funds to the Authority and requesting needed funds from the Authority; (viii) processing payroll for personnel employed in the discharge of this Agreement and in compliance with taxing authorities and other reporting requirements associated with payroll; and (ix) reports detailed in Exhibit I. (d) By the 15th day of each month, the Manager will furnish the Authority with an itemized list of all delinquent accounts, including general operating accounts, as of the tenth day of the same month. (e) The Manager shall submit to the Authority’s Finance Director those reports set forth in Exhibit H on the periodic basis set forth in Exhibit H. Reports designated as “monthly” on Exhibit H shall be submitted by the 15th day of each month; reports designated as “quarterly” shall be submitted by the 15th day of every third month, and reports designated as “annual” shall be submitted at the end of the fiscal year or the end of the calendar year as set forth on Exhibit H. In explanation but not limitation of the foregoing, the monthly reports to be submitted include: a statement of receipts and disbursements during the previous month; a schedule of accounts receivable and payable; reconciled bank statements for all accounts maintained by the Manager on behalf of the Authority reflecting disbursements and deposit amounts as of the end of the previous month; a copy of general ledger account transactions and monthly aggregate 159 Contract No. HA48960 14 utility consumption by utility; and such other matters relative to the management, operation, and maintenance of the Properties including actual income and expense balances compared to budgeted or expected results as required by the Finance Director of Authority. Additional reports may be requested throughout the year as the Authority deems necessary. (f) On the 15th day of each month, the Manager will submit to the Authority the reports listed on Exhibit I attached hereto and incorporated herein by reference, to assist the Authority in determining compliance with that certain Stipulation for Entry of Judgment in case number Indio 51124 as consolidated with case numbers Indio 51143 and 51159 which has been provided to the Manager. (g) Confidentiality. All books, records, operating statements, leases, and other material or information relevant to the operation or financial nature of the Properties shall be maintained in the strictest confidence and shall not be available to any employee or salesperson of any affiliate of Manager, nor to any other party without the prior written consent of the Authority or under compulsion of law (e.g., subpoena). 20. Fidelity Bond. The Manager will place the Properties on a master fidelity bond, which provides blanket coverage equal to two months gross rent potential. The bond will provide coverage for all principals and agents of the Manager and all persons who participate directly or indirectly in the management of the Properties and their assets, accounts and records. The premiums for such a bond will be paid and borne by the Manager. Specifically, coverage for the Manager, including all applicable persons in the Manager's employ, will be paid by the Manager, and coverage for the Authority’s personnel, if applicable, will be paid by the Authority. Said fidelity bon d shall be issued by a company which is reasonably acceptable to the Authority, and the Manager shall deliver to the Authority a copy of said fidelity bond upon execution by the Authority of this Agreement. 21. Bids, Discounts, Rebates or Commissions. The Authority and the Manager agree to adhere to the City of Palm Desert’s purchasing policy procedures set for the in Ordinance No. 1392 of the City of Palm Desert, and any amendments thereto, when obtaining contract materials, supplies and services for the Properties and to secure and credit to the Properties all discounts, rebates and commissions obtainable with respect to purchases, service contracts and all other transactions on behalf of the Properties. The Manager agrees that no goods and services shall be purchased from individuals, related companies and companies having a financial or pecuniary interest (a "conflict-of-interest") with the Manager. All vendor accounts shall be opened in the Authority's name, upon prior written approval of the Authority. The Manager will develop detailed scopes of work, materials, supplies, equipment and contractual services for any work or repair the cost of which may exceed $15,000 for a single Unit or project. The Manager shall comply with the procedures set forth in Ordinance No. 1392 of the City of Palm Desert, and any amendments thereto, in connection with the purchase of any materials, supplies, equipment and contractual services to be paid for by the Authority under this Agreement. 160 Contract No. HA48960 15 Copies of all required bids and documentation of all other written or verbal cost comparisons made by the Manager shall be made part of the records of the Properties and shall be retained for three years from the date the work was completed or as required by the City of Palm Desert’s Retention Policy. This documentation shall be subject to inspection by the Authority, or its designee and the Manager agrees to submit such documentation upon request. Further, the Manager shall annually submit a report to the Authority describing the outcome of all bidding procedures, which report shall include the names of all bidders and the amount of their bids and shall indicate to which bidder the contract was awarded. The Manager agrees to make available to the Authority, when requested, all records of the Manager, which relate to the provision of goods or services to the Authority whenever funds from the Properties have been used to pay for such goods and/or services (other than management services). 22. Resident Services Program. The Manager will be responsible for carrying out any resident retention or social services program described in the Administrative Plan and any other program or service that may become available that are in the best interest of the residents or community to promote public health, public safety or tenant welfare (collectively, the “Resident Services Program”). The Resident Services Program will be carried out by the Resident Services Coordinator, as designated on Exhibit F. 23. Resident - Management Relations. The Manager will establish quarterly meetings with tenants at Properties containing 150 or more units to encourage and promote communication and tenants’ initiatives. 24. Defense, Indemnity and Hold Harmless Agreement. Except for losses arising out of Manager’s sole negligence, gross negligence, or willful misconduct, or covered by insurance required by section 25, the Manager and Authority agree that the Manager , and their respective officials, officers, employees, and agents including the Manager (collectively “Indemnitees”) should, to the extent permitted by law, be fully protected against any loss, injury, damage, complaint, claim, lawsuit, cost, expense, attorneys fees, litigation costs, defense costs, court costs or any other cost arising out of or in any way related to the Manager’s performance of this Agreement. Accordingly, the provisions of this defense, indemnity and hold harmless provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to the Indemnitees. The Manager shall be named as an additional insured under Authority’s comprehensive liability policy covering the Properties. All obligations under this provision shall be paid by the Authority as they are incurred by the Manager. The Authority shall defend the Manager, and bear the expense thereof, with lawyers approved by the Manager, such approval which shall not be unreasonably withhel d. 25. Professional Services Insurance Requirements. (a) The Manager shall not commence work under this Agreement until it has provided evidence satisfactory to the Authority that it has secured all insurance required under this Section. In addition, the Manager shall not allow any subcontractor 161 Contract No. HA48960 16 to commence work on any subcontract until it has provided evidence satisfactory to the Authority that the subcontractor has secured all insurance required under this section. (b) Automobile Liability Insurance. The Manager shall maintain automobile liability insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Manager arising out of or in connection with Work to be performed under this Agreement, including $1,000,000 combined single limit for each accident including coverage for any owned, hired, non- owned or rented vehicles. (c) Professional Liability (Errors & Omissions). The Manager shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $2,000,000 per claim and policy shall not exclude discrimination, fair housing, American with Disabilities act, and sexual molestation violations. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and the Manager agrees to maintain continuous coverage through a period no less than three years after completion of the services required by this Agreement. Covered professional services shall specifically include all work to be performed under the Agreement and delete any exclusions that may potentially affect the work to be performed (for example, any exclusions relating to lead, asbestos, pollution, testing, underground storage tanks, laboratory analysis, soil work, etc.). If coverage is written on a claims-made basis, the retroactive date shall precede the effective date of the initial Agreement and continuous coverage will be maintained or an extended reporting period will be exercised for a period of at least three (3) years from termination or expiration of this Agreement. (d) Workers’ Compensation/Employers' Liability Insurance. The Manager shall procure and maintain Workers' Compensation insurance complying with California workers’ compensation laws, including statutory limits for workers’ compensation and an Employer’s liability limit of $1,000,000 per accident or disease. Unless otherwise agreed, this policy shall be endorsed to waive any right of subrogation as respects the Authority, the Successor Agency to the Palm Desert Redevelopment Agency, the City of Palm Desert, and their respective officials, officers, employees, volunteers, and agents. (e) Fidelity Coverage. Consultant shall provide evidence of fidelity coverage on a blanket fidelity bond or other acceptable form. Limits shall be no less than $1,000,000 per occurrence. (f) Cyber Liability Insurance. Consultant shall procure and maintain Cyber Liability insurance with limits of $1,000,000 per occurrence/loss, which shall include the following coverage: i. Liability arising from the theft, dissemination and/or use of confidential or personally identifiable information; including credit monitoring and regulatory fines arising from such theft, dissemination, or use of the confidential information. ii. Network security liability arising from the unauthorized use of, access to, or tampering with computer systems. 162 Contract No. HA48960 17 iii. Liability arising from the failure of technology products (software) required under the contract for consultant to properly perform the services intended. iv. Electronic Media Liability arising from personal injury, plagiarism or misappropriation of ideas, domain name infringement or improper deep-linking or framing, and infringement or violation of intellectual property rights. v. Liability arising from the failure to render professional services. (g) Employment Practices Liability. The Manager shall maintain employment practices liability insurance in the minimum amount of $1,000,000 per occurrence/$2,000,000 general aggregate. (h) Evidence of Insurance. The Manager shall provide evidence of the insurance required herein, satisfactory to the Authority, consisting of certificate(s) of insurance evidencing all of the coverages required by this Agreement. In addition, the Manager agrees to provide complete copies of all policies of insurance to the Authority annually or upon request. The Certificate(s) shall reflect that the insurer will provide 30- days notice of any cancellation or modification of coverage to the Additional Insureds, per the terms of the policy. The Manager agrees to require its insurer to modify the certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions. All insurance coverage and limits provided pursuant to this Agreement shall apply to the full extent of the policies involved, available or applicable. Nothing contained in this Agreement or any other agreement relating to the Authority or its operations shall limit the application of such insurance coverage. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf and are to be provided on standard ISO forms noted above. All endorsements are to be received and approved by the Risk Manager prior to the commencement of work. (h) No Limitation on other Insurance. Requirements of specific coverage features or limits contained in this Section 25 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 and is not intended by any Party to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. (i) Subrogation. All general or auto liability insurance coverage provide d pursuant to this Agreement, or any other agreements pertaining to the performance of this Agreement, shall not prohibit the Manager, its employees, or agents, from waiving the right of subrogation prior to a loss. The Manager hereby waives all rights of subrogation against the Authority, the Successor Agency to the Palm Desert Redevelopment Agency, and the City of Palm Desert. (j) Authority's Right to Purchase Replacement Insurance. In the event any policy of insurance required under this Agreement does not comply with these requirements or is canceled and not replaced, the Authority has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the Authority will be promptly reimbursed by the Manager. 163 Contract No. HA48960 18 (k) Proof of Insurance. The Manager shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished not more than 72 hours after the expiration of the coverage(s). Any actual or alleged failure on the part of the Authority or any other of the Additional Insureds under these requirements to request or obtain proof of insurance required under this Agreement in no way waives any right or remedy of the Authority or any other of the Additional Insureds, in this or any other regard. (l) Subcontractor Proof of Insurance. (i) Subcontractors Performing Recurring Work or Work in Excess of $2,500. The Manager shall require all subcontractors or other parties which provide (i) recurring services to the Properties, or (ii) services in excess of $2,500 in a six month Period (a "Major Subcontractor") to the Properties to provide the same minimum insurance coverage required of the Manager and Workers Compensation insurance to conform with the requirements of this section. The Manager 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. The Manager agrees that upon request, all agreements with Major Subcontractor, or others with whom the Manager contracts with on behalf of the Authority, will be submitted to the Authority for review. For purposes of this Section a contractor or party hired for the work shall be deemed to be performing "recurring work" in the event that contractor or party hired performs in excess of a single segregated or discrete project in any six-month period. The Manager agrees to obtain certificates evidencing such coverage and to make reasonable efforts to ensure that such coverage is provided as required herein. Failure of the Authority to request copies of such agreements will not impose any liability on or constitute waiver by the Authority of its rights hereunder. The Manager agrees to require that no contract used by any Major Subcontractor, or contracts the Manager enters into on behalf of the Authority, will reserve the right to charge back to the Authority the cost of insurance required by this Agreement. (ii) Subcontractors Performing Nonrecurring Work or Work Less Than or Equal to $2,500. The Manager shall require all subcontractors or other parties which provide (i) nonrecurring services to the Properties, and (ii) services in an amount not to exceed $2,500 in a six-month Period (a "Nonrecurring Subcontractor") to provide Commercial General Liability insurance in the amounts set forth below and Workers Compensation insurance to conform with the requirements of this section. For purposes of Section 25, a contractor or party hired for the work shall be deemed to be providing "nonrecurring work," so long as that contractor or party hired for the work does not perform more than a single segregated or discrete project in a six-month period. In the event a Nonrecurring Subcontractor performs more than a single discrete project in a six-month period or work exceeding $2,500 in value, that Nonrecurring Subcontractor shall lose its status as a “Nonrecurring Subcontractor” and shall be automatically deemed a “Major Subcontractor”. The liability limits for Nonrecurring Subcontractors shall provide no less than $500,000 per occurrence for all coverages and $500,000 in the general aggregate. 164 Contract No. HA48960 19 The Manager agrees to verify such coverage and make reasonable efforts to ensure that such coverage is provided as required herein. The Manager agrees to require that no contract used by any Nonrecurring Subcontractor, or contracts the Manager enters into on behalf of the Authority, will reserve the right to charge back to the Authority the cost of insurance required by this Agreement. The Manager agrees that upon request, all agreements with Nonrecurring Subcontractors, or others with whom the Manager contracts on behalf of the Authority, will be submitted to the Authority for review. Failure of the Authority to request copies of such agreements will not impose any liability on the Authority nor constitute a waiver of the rights of the Authority hereunder. 26. Compliance With Governmental Orders. The Manager will take such action as may be necessary to comply promptly with any and all governmental orders or other requirements affecting the Properties, whether imposed by federal, state, county or municipal authority. Notwithstanding the foregoing, the Manager shall take no such action so long as the Authority is contesting, or has affirmed its intention to contest, any such order or requirement. The Manager will notify the Authority in writing of all notices of such orders or other requirements as soon as possible from the time of their receipt. 27. Manager's Compensation. The Manager will be compensated for its services under this Agreement by monthly management fees. Such fees will be payable on the first day of each month, in arrears, for the services provided in the prior month for the term of this Agreement. For the purpose of this Section, the term ‘occupied units’ shall include those Units which are currently leased, on notice to vacate, or temporarily vacant due to a move out. For the avoidance of doubt ‘occupied units’ shall not include units occupied by the Manager’s management staff pursuant to Section 3(f). The Management Fee (“Fee”) shall be calculated monthly according to the following schedule: (a) In the case of occupied units, each such monthly fee shall be in the amount of $63.00 per Unit per month commencing on Junely 1, 2025, and an increase of 3% commencing on July 1, 2027, and biannually every January 1st thereafter for the remainder of the Term of this Agreement including contract extensions, if any); except as follows: (i) For Units where a Notice of Termination of Tenancy (“Notice”) was provided by the tenant as required (30 calendar day notice) and a Unit remains vacant for 30 calendar days or more, the Manager will not be entitled to the monthly fee, except in those circumstances where the vacancy is the result of the Authority’s leasing process for affordable Units. (ii) For Units where no Notice was given, the tenant chose to ‘quit’ or the tenant skipped, and a Unit remains vacant for 45 calendar days or more, the Manager will not be entitled to the monthly fee. (b) In the case of unoccupied Units (except those Units described in Section 27(c-e) below), each such monthly fee shall be as follows: (i) $63.00 per Unit per month for the first four months for Units that have been determined, in the Authority’s sole and absolute discretion, to be 165 Contract No. HA48960 20 ‘unrentable’ or ‘down’ due to physical condition or damage. Unless otherwise determined by the Authority, the Manager is expected to repair said Units within the four months. If the Manager fails to repair units within the given time, no fee will be paid until the unit is available for occupancy. (ii) No Fee will be paid for Units that are unrentable or down due to action or inaction by the Manager. (c) In the case of Units that are newly constructed or newly renovated which will be added to Exhibit A, the Fee shall be $10 per Unit per month commencing at such time as the construction/renovation has reached 90% completion as determined by the contractor’s billing until Certificate of Occupancy, in the case of new Units, or Certificate of Completion, in the case of renovated Units, is issued. (d) In the case of Units which were ‘down’, as described in Section 27(b)(i) and direction has been given to the Manager by the Authority not to repair said Units, commencing with the fifth month, the Fee shall be reduced to $20 per Unit per month until the Manager is no longer responsible for said Units. (e) Except as otherwise expressly provided in this Agreement, all employees not identified in Exhibit F and other overhead expenses of the Manager (including but not limited to costs of office supplies and equipment, postage, transportation, travel expenses for managerial personnel and telephone services) will be borne by the Manager. All services for management, accounting, and reporting, with exception of the Authority's requested annual audit, shall be borne by the Manager. In addition to the Management Fee, the site employees for the Properties shall be paid based on the Employee Salaries listed on Exhibit F attached hereto and incorporated herein by this reference. 28. Termination. (a) Authority Termination for Convenience. Authority may terminate this Agreement for convenience (a “Termination for Convenience”) by giving not less than 180 days written notice of termination. The notice of termination shall specify that the termination is for the convenience of the Authority. Upon a Termination for Convenience, the Authority shall continue to pay the Manager for all work performed up to the date of the Termination for Convenience. The Manager shall be compensated only for those services that have been satisfactorily rendered to the Authority until the date of the Termination for Convenience, and the Manager shall be entitled to no further compensation. Authority shall not be liable for any post-termination costs, lost profits, or other alleged damages resulting from a Termination for Convenience. (b) Termination For Cause: Either Party may terminate this Agreement with cause (a “Termination for Cause”) by giving written notice to the other Party not less than 90 days prior to the date of Termination for Cause. Any such written notice for cause shall specify the default or cause for termination. If the default or cause for termination specified has not been cured within 21 days of receipt of the notice, this Agreement shall 166 Contract No. HA48960 21 terminate on the date of termination set forth in the notice. Upon termination, the Manager shall be compensated only for those services that have been satisfactorily rendered to the Authority until the date of the Termination for Cause, and the Manager shall be entitled to no further compensation. (c) Termination at End of Term/Extension: At least ninety (90) days prior to the automatic termination of this Agreement (the “Negotiation Period”), and unless either Party has given timely notice under this Section prior thereto, the Parties shall initiate negotiations for a new agreement for Property Management Services and use best efforts and engage in good faith negotiations to finalize such agreement and obtain final approval thereof prior to the automatic termination of this Agreement. In the event such good faith efforts are not completed before the expiration of the Term, or in the event either Party gives notice to the other during the Negotiation Period of its decision not to enter into a further term, this Agreement may be extended for not more than ninety (90) days after the giving of such notice or June 30, 2030, whichever is later, upon the written authorization of the Executive Director of the Authority. Good faith negotiations may include an extension of this Agreement up to an additional forty-eight (48) months provided that any such extension shall require the authorization of the Authority Board and shall be in writing, as an Amendment to this Agreement, signed by both Parties. Nothing herein shall prevent the Housing Authority Board from electing to issue a Request for Proposal for Property Management Services in lieu of negotiating with Manager. (d) Bankruptcy. In the event that a petition in bankruptcy is filed by either of the Parties, or in the event that either Party makes an assignment for the benefit of creditors to take advantage of any insolvency act, this Agreement shall automatically terminate. (e) Sale of Properties. This Agreement shall automatically terminate, upon the sale of the Properties, or as to any Property, on the sale of such Property, except that, this provision shall not apply in the event of a sale, transfer, or re-conveyance by and between the former Palm Desert Redevelopment Agency, the Authority, the Successor Agency to the Palm Desert Redevelopment Agency, the City of Palm Desert, and/or any related or successor agency or entity. (f) Addition of Properties. In the event the Authority adds a property to its operations portfolio, the Manager and Authority’s designee may agree in writing to amend Exhibit A for the inclusion of said property. Such amendment shall be subject to the terms and conditions herein from the effective date of the amendment. (g) Exchange of Documents. Upon termination of this Agreement, the Manager will submit to the Authority any financial statements requested by the Authority and, after the Parties have accounted to each other with respect to all matters outstanding as of the date of termination, the Authority will furnish the Manager security in form and principal amount satisfactory to the Manager against any obligations or liabilities which the Manager may properly have incurred on behalf of the Authority hereunder. All of the cash trust accounts, investments, equipment and records for the Properties will be turned over to the Authority within 30 days of the date this Agreement is terminated. The Parties hereby covenant and agree that the Authority shall own the books and records for the 167 Contract No. HA48960 22 Properties and that the Manager shall hold the books and records for the Properties for the benefit of the Authority for an agreed upon period at the time of termination. 29. Manager's Indemnification. Subject to the Manager's indemnification obligations hereunder as set forth in Section 24, the Parties understand and agree: (a) That the Authority has assumed and will maintain its responsibility and obligation through the Term of this Agreement for the finances and the financial marketability of the Properties; and (b) That the Manager shall have no obligation, responsibility or liability to fund authorized costs, expenses, or accounts other than those funds generated by the Properties themselves or provided to the Properties or to the Manager by the Authority. In accordance with the foregoing, the Authority agrees that the Manager shall have the right at all times to withdraw payment of its compensation, as provided for under Section 27 of this Agreement, from the General Operating account or accounts, immediately when such compensation is due and without regard to other property obligations or expenses conditioned on the Manager having satisfactorily discharged all duties and responsibilities under this Agreement. Moreover, the Authority hereby indemnifies the Manager and agrees to hold it harmless with respect to costs, expenses, accounts, liabilities and obligations of the Properties during the Term of this Agreement and further agrees to guarantee to the Manager the payment of its compensation under Section 27 of this Agreement during the Term of this Agreement to the extent that the Operating and Maintenance Account for the Properties are insufficiently funded for this purpose. Failure of the Authority at any time to abide by and to fulfill the foregoing shall be a breach of this Agreement entitling the Manager to obtain from the Authority, upon demand, full payment of all compensation owed to the Manager through the date of such breach. 30. Prohibition Against Assignment and Subcontracting Management Services. The Manager shall not assign this Agreement or subcontract any management or other services, without the express prior written consent of the Authority. 31. Notices. Except as otherwise provided by law, any and all notices or other communications required or permitted by this Agreement or by law to be served on or given to either Party to this Agreement by the other Party shall be given in writing. All such notices or other communications shall be deemed duly served and given when personally delivered to the Party to whom they are so directed, or in lieu of personal service when deposited in the United States mail, first-class postage prepaid, addressed to the respective Party as set forth below: To the Authority: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260 Attention: Housing Manager To the Manager: 168 Contract No. HA48960 23 National Community Renaissance 9692 Haven Avenue, Suite 100 Rancho Cucamonga, CA 91730 Attention: Michael Ruane, President Either Party may change its address for the purpose of this Section 31 by giving written notice of the change to the other Party in the manner provided in this Section. 32. General Provisions. (a) Binding on Successors and Assigns. At all times, this Agreement will inure to the benefit of and constitute a binding obligation upon the Parties and their respective successors and assigns. (b) Entire Agreement and Allowable Changes. This Agreement (including the Addendum) constitutes the entire Agreement between the Authority and the Manager with respect to the management and operation of the Properties, and all prior agreements between the Authority and the Manager regarding the subject matter of this Agreement (including the Addendum) are hereby superseded and replaced. Changes hereto must be made by supplemental written agreement signed by the Parties. Exhibits hereto may be amended as necessary by the written agreement of the Parties. (c) Attorneys' Fees. If any litigation is commenced between the Parties concerning the Properties, this Agreement, or the rights and duties of either Party with respect to this Agreement, the Party prevailing in the litigation shall be entitled, in addition to any other relief that may be granted in the litigation, to reasonable attorneys' fees and costs. (d) Ambiguities. Each Party and their counsel have participated fully in the drafting of this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply in interpreting this Agreement. (e) Severability of Agreement. If a court or an arbitrator of competent jurisdiction holds any provision of this Agreement to be illegal, unenforceable or invalid in whole or in part for any reason, the validity and enforceability of the remaining provisions, or portions of them will not be affected. (f) Approval by Authority. Whenever a provision of this Agreement requires the delivery of documents or reports, notifications, determinations, reimbursements or requests for funding, review, authorization or approval of the Authority, such approval may be given by the Executive Director of the Authority or his/her designee, unless Authority Board action is specified in this Agreement. (g) Word Usage. Unless the context clearly requires otherwise, (a) the plural and singular shall each be deemed to include the other; (b) the masculine, feminine, and neuter genders shall each be deemed to include the others; (c) "shall," "will," or 169 Contract No. HA48960 24 "agrees" are mandatory, and "may" is permissive; (d) "or" is not exclusive; and (e) "includes" and "including" are not limiting. [Signatures on following page] 170 Contract No. HA48960 25 Clerk QC: MN Contract QC: ________ Insurance: __________ Initial Review __________ Final Approval IN WITNESS THEREOF, the Parties have executed this Agreement on the date first above written. 171 Contract No. HA48960 EXHIBIT A (PROPERTIES) PALM DESERT HOUSING AUTHORITY AFFORDABLE HOUSING UNITS 172 Contract No. HA48960 EXHIBIT B [intentionally omitted] 173 Contract No. HA48960 EXHIBIT C MANAGEMENT OFFICES Location of Management Offices One Quail Place (located in management office) Las Serenas (located in management office) Catalina Gardens (located in management office) Desert Pointe (located in management office) California Villas (located in management office) Laguna Palms (located in management office) Carlos Ortega Villas (located in management office) Locations Managed One Quail Place Las Serenas and La Rocca Villas Catalina Gardens, The Pueblos, Candlewood Apartments, and Sagecrest Senior Desert Pointe, Taos Palms and Neighbors Apartments California Villas Carlos Ortega Villas Laguna Palms and Palm Village Apartments 174 Contract No. HA48960 EXHIBIT D DEPOSIT ACCOUNTS The following security deposit accounts shall be maintained by the Manager for the benefit of the Authority: TO BE PROVIDED BY THE CITY’S FINANCE DEPARTEMNT. The following operating deposit accounts shall be maintained by the Manager for the benefit of the Authority: TO BE PROVIDED BY THE CITY’S FINANCE DEPARTEMNT. 175 Contract No. HA48960 EXHIBIT E NON-COLLUSIVE AFFIDAVIT FORM AFFIDAVIT State of California ) )ss. County of Riverside ) ___________________________, being first duly sworn, deposes and says: That he is ___________________________, the party making the foregoing proposal or bid, that such proposal or bid is genuine and not collusive or sham; that said bidder has not colluded, conspired, connived or agreed, directly or indirectly, sought by agreement or collusion, or communication or conference, with any person, to fix the bid price or affiant, or of any other bidder or to fix any overhead profit or cost element of said bid price, or that of any other bidder or to secure any advantage against the _________________________________________ or any person interested in the proposed contract, and that all statements in said proposal or bid are true. Signature of Person Making Affidavit: ____________________________________ Subscribed and sworn to me this _______ day of __________________, 20___ My commission expires __________________, 20___ Notary Public Signature:_______________________ Official Seal: 176 Contract No. HA48960 EXHIBIT F PROPERTY STAFFING & SALARY RANGES To be provided annually with the property budgets. 177 Contract No. HA48960 EXHIBIT G PERFORMANCE CRITERIA 1. PROPERTY PORTFOLIO NET OPERATING INCOME COMPARISON a. Current Budget Year: July - June b. Budgeted vs. Actual = Variance c. Vacancy Rate Analysis 2. RESPONSE TO RESIDENT COMPLAINTS a. Response to service requests/turn around time b. Response to resident complaints and concerns - monthly meetings c. Response to resident complaints and concerns at site office 3. COMPLIANCE WITH AGREEMENT a. Define any notable gross disparities from the Agreement on the following: i. Report preparation and submittal promptness ii. Responsiveness to Authority requests iii. Method of accounting 4. CAPITAL IMPROVEMENTS SCHEDULE a. Deferred Capital Improvement Schedule b. Capital Improvement Program c. Maintenance and general appearance of properties 5. OPERATIONS a. Operational procedures to be audited: i. Compliance with Stipulation ii. Compliance with all laws including those related to property management, Fair Housing, and housing authorities iii. Recertification iv. Internal controls v. Contract controls 6. ACCOUNTING AUDIT a. Review of Annual Audit Findings b. Quarterly Audits Formatted: Indent: Left: 0.5", Hanging: 0.5", Tab stops: Not at 0.94" 178 Contract No. HA48960 EXHIBIT G PERFORMANCE CRITERIA CONTINUED 7. AFFORDABLE HOUSING PROGRAM a. Housing Authority goals b. Management Company goals c. Program implementation d. Compliance with local, state, and Federal regulations e. Tenant Household Income Analysis 8. RESIDENT RELATIONS a. Review summary responses of any resident surveys b. Establishment of Tenant Exit Survey 9. GENERAL a. General overview of previous operational year 179 Contract No. HA48960 EXHIBIT H LIST OF FINANCIAL REPORTS REQUIRED Monthly Reports 1. Payroll register and invoices (may be submitted after every payroll or monthly). 2. Management Fee Report that includes Vacancies/Current Rental Activity submitted with invoice. 3. Disbursement/Expense Journals for each check run. 4. General Ledgers for all Properties. 5. Check Registers for all Properties. 6. Monthly Bank Reconciliations with Outstanding Check Registers. 7. Balance Sheets and/or Trial Balances for all Properties. 8. Rent Rolls for all Properties. 9. Delinquent A/R for all Properties. 10. Prepaid Listing for all Properties. 11. Income Statements with Monthly Budget Variance as well as Annual Variance. 12. Monthly Adjusting Journals. 13. Cash Receipts Journals. Quarterly Reports 1. Security Deposit List for all Properties (If not included in the monthly rent roll) 2. Status Report on Items over 90 days (Requests to the Board for write offs, etc.) 180 Contract No. HA48960 EXHIBIT H LIST OF FINANCIAL REPORTS REQUIRED - CONTINUED – Annual Reports Required At Fiscal Year End: 1. Schedule of Accounts Payable 2. Schedule of Accounts Receivable 3. Inventory of all Agency and Authority personal property and readily removable fixtures attached to the Properties. 4. Preliminary sets of Monthly closing reports, when requested. 5. Once audited, Final Set of all June Closing Reports 6. Schedule of Security Deposits Matching the Cash Held 7. The Report described in Section 21 At Calendar Year End: 1. Copies of the transmittals for Federal Reporting Requirements for W-2's and 1099's Analytical Reports: 1. Upon request of the Authority, reports analyzing various information required in the above Financial Reports (May include summaries of all properties and/or multi-year information). 181 Contract No. HA48960 EXHIBIT I Leasing Reports: 1. Monthly Occupancy and Average Rent Statement 2. Monthly Net Operating Income Statement 3. Replacement Lists maintained continuously due at least once annually on June 30. 4. Resident Demographics Report 5. Service Request and Serious Complaints 6. Other reports as requested or as necessary to perform the requirements of the Agreement. 182 Contract No. HA48960 EXHIBIT J On-going services requiring written cost estimates will adhere to the City of Palm Desert’s purchasing policy procedures set for the in Ordinance No. 1392 of the City of Palm Desert, and any amendments thereto as required in Section 21 of the Management Agreement as well as for services listed below: 1. Landscape Contracts a. Monthly Services b. Annual Services including tree trimming, overseeding, and perennial flowers 2. Pest Control 3. Pool Services 4. Replacement Carpet and Vinyl 5. Laundry Services 6. Air Conditioning/Heating Unit Servicing, Cleaning, and Replacement Services 7. Carpet Cleaning 8. Flooring and Housekeeping Cleaning Services 9. Environmental Testing and Cleaning Services 10. Moving Company Services 11. Golf Cart Repair and Maintenance Services 12. Courtesy Patrol Services 13. Towing Services 14. Solar Maintenance Services 15. Elevator Maintenance Services 183 Contract No. HA48960 EXHIBIT K NON-EXCLUSIVE LIST OF REQUIRED AND PERMISSIVE BACKGROUND CHECK INFORMATION BY TYPE OF FUNDING Source of Information Information Federal Funds Involved Federal Funds Not Involved Investigation Disclosure & Consent Investigation Disclosure & Consent “Serious” crimes 184 Contract No. HA48960 require & applicant must consent Authority has unsolicited evidence that applicant is undocumented, it must reject the application. Income / Family composition & tax info, to verify eligibility Required Housing Authority must require & applicant must consent Required Housing Authority must require & applicant must consent. Credit Agencies Investigative Consumer Report Credit History Character Reputation Personal Characteristics Mode of Living May Obtain Housing Authority must notify applicant May Obtain Housing Authority must notify applicant Convictions Civil Actions Tax Liens Outstanding Judgements May Obtain but only if credit agency has verified information with 30 days of disclosure Housing Authority must notify applicant May Obtain but only if credit agency has verified information with 30 days of disclosure Housing Authority must notify applicant Bankruptcies more than 10 years prior Civil judgement more than 7 years old Prohibited N/A Prohibited N/A Public Records Obtained from Other Sources; Interviews with Neighbors, Friends & Associates Relevant background information Creditworthiness Credit Standing Credit Capacity Civil Actions Convictions Tax Liens Outstanding Judgements Character General Reputation May Obtain Must notify applicant, if basis for denial. Consent recommended. May Obtain Must notify applicant, if basis for denial. Consent recommended. 185 Contract No. HA48960 Personal Characteristics Mode of Living In addition to credit reporting agencies, background check information may be obtained from Westlaw, Lexis, DataQuick, Merlin, Choice Point, and similar reputable resources. SAMPLE CONSENT BY APPLICANT “I understand that the Housing Authority or its agent will perform a background check as a part of determining eligibility, including but not limited to obtaining information concerning my employment, credit history, benefits, income, assets, and criminal history, and by my signature below, I hereby authorize the Housing Authority or its agent to do so.”“I certify that the statements on this application are true and complete to the best of my knowledge and belief and I understand that they will be verified. I understand that any false statements made on this application or failure to make any required disclosures may cause me to be disqualified from initial or continuing eligibility for housing assistance and may result in eviction. I further understand that I am under a continuing obligation to inform the Housing Authority or its agent of any changes to any of the information provided in this Application, and that failure to promptly inform the Housing Authority or its agent of any changes may cause me to be disqualified from initial or continuing eligibility for housing assistance and may result in eviction.” 186 Page 1 of 2 PALM DESERT HOUSING AUTHORITY STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Celina Cabrera, Senior Management Analyst Jessica Gonzales, Housing Manager SUBJECT: APPROVE AMENDMENT NO. 1 TO CONTRACT HA48770 WITH VM POOL REPAIR AND SERVICE, INC., TO INCREASE ADDITIONAL SERVICES IN FISCAL YEAR 2024-25 AT PALM DESERT HOUSING AUTHORITY PROPERTIES RECOMMENDATION: 1. Approve Amendment No. 1 to contract HA48770 with V.M. Pool Repair and Service, Inc., to increase the not to exceed (NTE) amount for additional services in the amount of $20,000 for an aggregate NTE of $35,000. 2. Authorize Special Counsel to make any necessary non-monetary changes to the agreement. 3. Authorize the Executive Director to execute an amendment to the agreement and to take any necessary actions to effectuate the actions taken herewith. BACKGROUND/ANALYSIS: Within the Housing Authority portfolio there are 16 pools, 7 spas, and 1 water feature, which are commercial facilities requiring daily service and pH balancing in compliance with Riverside County Health regulations. On February 27, 2025, the Palm Desert Housing Authority approved a 6 -month contract with V.M. Pool Service and Repair, Inc., in the amount of $95,400, plus $15,000 for additional services, should they be required. Additional services would include equipment repairs or replacement, or any treatment outside of the required daily maintenance requirement. Treatments may include responses to remove fecal matter, rodents, pests, address leaks, or groundwater runoff. All repairs are subject to prevailing wage requirements. Due to the required replacements of multiple water circulation pumps and filter grids, the additional $15,000 has been exhausted. An additional $20,000 is being requested to complete any necessary additional service items currently identified, as well as any that may come up during the remainder of the fiscal year. Legal Review: This report has been reviewed by the City Attorney’s Office. 187 Palm Desert Housing Authority Approve Amendment No. 1 to Increase Additional Services in FYE 2025 for VM Pool Service Page 2 of 2 Appointed Body Recommendation: The Housing Commission reviewed this recommendation at its regular meeting on May 14, 2025, and voted unanimously (5-0) to approve it. FINANCIAL IMPACT: Funds have been included and are available in the FY 2024 -25 Annual Budget under the Housing Authority’s Replacement Expenditure account and may be transferred to the appropriate expenditure accounts for each of the properties for this purpose. There is no financial impact on the General Fund with this action. ATTACHMENTS: 1. Action Stamped Staff Report from February 27, 2025 2. HA48770 Executed Agreement 3. Draft Amendment No. 1 188 YES: 5 NO: 0 ABSTAIN: 0 CONFLICT: 0 ABSENT: 0 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES Minute Action Summary Palm Desert City Council - Regular Meeting Agenda Number:13.h. Title:RATIFICATION OF V.M. POOL SERVICE AND REPAIR FOR POOLS, SPA, AND WATER FEATURE MAINTENANCE AND REPAIR AT HOUSING AUTHORITY PROPERTIES IN AN AMOUNT NOT TO EXCEED $95,400 Date:Thursday, February 27, 2025 Motion by:Councilmember Quintanilla Seconded by:Councilmember Pradetto Ratify the six-month agreement HA48770 with V.M. Pool Maintenance and Repair for pool, spa, and water feature maintenance and repair at Housing Authority properties in an amount not to exceed $95,400 and $15,000 for additional services as required. 1. Authorize the Executive Director, or his designee, to take any necessary actions to execute the agreement and any related documents to effectuate this action. 2. YES: 5 NO: 0 ABSTAIN: 0 CONFLICT: 0 ABSENT: 0 Mayor Harnik Councilmember Pradetto Councilmember Nestande Mayor Pro Tem Trubee Councilmember Quintanilla 189 Page 1 of 2 PALM DESERT HOUSING AUTHORITY STAFF REPORT MEETING DATE: February 27, 2025 PREPARED BY: Celina Cabrera, Senior Management Analyst SUBJECT: RATIFICATION OF V.M. POOL SERVICE AND REPAIR FOR POOLS, SPA, AND WATER FEATURE MAINTENANCE AND REPAIR AT HOUSING AUTHORITY PROPERTIES IN AN AMOUNT NOT TO EXCEED 95,400 RECOMMENDATION: 1. Ratify the six-month agreement with V.M. Pool Maintenance and Repair for pool, spa, and water feature maintenance and repair at Housing Authority properties in an amount not to exceed $95,400 and $15,000 for additional services as required. 2. Authorize the Executive Director, or his designee, to take any necessary actions to execute the agreement and any related documents to effectuate this action. BACKGROUND/ANALYSIS: The Housing Authority oversees the maintenance of 16 pools, 7 spas, and 1 water feature at 15 Housing Authority properties, which are commercial facilities requiring daily servicing and pH balancing in compliance with Riverside County Health regulations. Failure to perform these services could result in closures and potential health and safety risks to residents and the public. The previous contract for these services expired on December 31 , 2024. A Request for Proposals (RFP) was issued by the Palm Desert Housing Authority on October 16, 2024, for a new pool, spa, and water feature maintenance and repair contract. However, the sole response from the incumbent contractor Service First, LLC, was too costly with a proposed annual cost of 380,818.44 compared to the existing contract amount of $138,573.11. Service First stated that rising costs, including insurance, were a driving reason for the increase. On December 12, 2024, the Housing Authority rejected the bid from Service First, LLC and authorized the re-solicitation of the RFP. To ensure the continuity of services in the best interest of the City, public health, safety and welfare, in the interim, local qualified contractors were contacted for a six-month agreement starting January 1, 2025, and ending June 30, 2025. Staff researched and reached out directly to California State License Board Contractors that were Department of Industrial Relation registered and held a City of Palm Desert business license to send bid packets to. Five qualified contractors submitted proposals: Proposer Proposed 6-Month Amount Fred Rock Pools $106,200.00 Service First $216,085.32 Shark Pools $217,200.00 Supreme Pool Service $126,180.00 195190 Palm Desert Housing Authority Ratification of Pool Maintenance and Repair Agreement Page 2 of 2 V.M. Pool Service and Repair $95,400.00 V.M. Pool Maintenance and Repair offered the most cost-effective proposal while meeting all qualifications including Department of Industrial Relations registration. Staff is preparing a new RFP for a longer-term agreement, with the solicitation expected to be published late February 2025 for a July 1, 2025, start date. All qualified contractors will be encouraged to submit proposals. Staff is requesting an additional $15,000 to provide additional services on an as needed basis to include equipment repairs or replacement (i.e., pump, pump motor, filters, heating tubes, etc.) the treatment of fecal matter, removal of rodents and pests, leaks, groundwater runoff, etc. All repairs are subject to prevailing wage requirements. Legal Review: This report has been reviewed by the City Attorney’s Office. Appointed Body Recommendation: The Housing Commission will review this recommendation at its regular meeting on February 12, 2025. Upon request, a verbal report will be provided at the Authority’s regular meeting on February 27, 2025. FINANCIAL IMPACT: Funds for the six-month agreement are available in the Housing Authority FY 2024-25 Annual Budget in the appropriate expense accounts for each property. There is no financial impact to the General Fund with this action. ATTACHMENTS: 1. Pool Maintenance Service Agreement 196191 192 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 1 - PALM DESERT HOUSING AUTHORITY MAINTENANCE SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this 1st day of January, 2025, by and between the Palm Desert Housing Authority (“the Authority”), a Public Body, Corporate and Politic, a political subdivision 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 and VM Pool Service & Repairs, Inc., a California Corporation with its principal place of business at 40395 Firenze Court. Indio, CA 92203 (“Contractor”). The Authority 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 Authority 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 the Authority. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of the Authority. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 2.2 Project. The Authority desires to engage Contractor to render such services for the POOL AND WATER FEATURE MAINTENACE AND REPAIR SERVICES AT PALM DESERT HOUSING AUTHORITY PROPERTIES project (“Project”) as set forth in this Agreement. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the Authority 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 January 1, 2025 to June 30, 2025, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Services. 3.2 Responsibilities of Contractor. 3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 193 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 2 - means, methods and details of performing the Services subject to the requirements of this Agreement. The Authority 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 the Authority 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 the Authority, 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 the Authority. 3.2.4 Authority’s Representative. The Authority hereby designates JESSICA GONZALES, HOUSING MANGER, or his or her designee, to act as its representative for the performance of this Agreement (“Authority’s Representative”). Authority’s Representative shall have the power to act on behalf of the Authority for all purposes under this Agreement except for increasing compensation. Contractor shall not accept direction or orders from any person other than the Authority’s Representative or his or her designee. 3.2.5 Contractor’s Representative. Contractor hereby designates VICTOR MONTERROSO, CEO 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 the Authority’s staff in the performance of Services and shall be available to the Authority’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 Authority, any services necessary to correct errors or Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 194 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 3 - 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 Authority 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 Authority, 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 comp leted 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 Authority 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 Authority. If Contractor disputes the Authority’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 Authority to terminate the Agreement for cause. The Authority 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. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 195 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 4 - 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 the Authority’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 the Authority 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 the Authority, 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 the Authority. (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 Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 196 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 5 - with Work to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manager may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. (C) Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: (a) A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (b) Pay on behalf of wording as opposed to reimbursement; (c) Concurrency of effective dates with primary policies; and (d) Policies shall “follow form” to the underlying primary policies. (e) Insureds under primary policies shall also be insureds under the umbrella or excess policies. (D) Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). Contractor shall submit to the Authority, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the Authority, the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives. (E) Fidelity Coverage. Contractor shall provide evidence of fidelity coverage on a blanket fidelity bond or other acceptable form. Limits shall be no less than $1,000,000 per occurrence. (F) Cyber Liability Insurance. 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 Authority 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. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 197 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 6 - 3.2.11.2 Other Provisions and Requirements. (A) Proof of Insurance. Contractor shall provide certificates of insurance to the Authority 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 the Authority at all times during the term of this contract. The Authority 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 the Authority 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 the Authority before the Authority’s own insurance or self-insurance shall be called upon to protect it as a named insured. (D) Authority’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, the Authority has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by the Authority will be promptly reimbursed by Contractor, or the Authority will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, the Authority 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 Authority, 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 Authority, 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 Authority to inform Contractor of non-compliance with any requirement imposes no additional obligations on the Authority nor does it waive any rights hereunder. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 198 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 7 - (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 Authority 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 Authority. (I) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide the Authority 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 Authority, 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 the Authority 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 the Authority for review. (N) Authority’s Right to Revise Specifications. The Authority 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 Authority and Contractor may renegotiate Contractor’s compensation. If the Authority 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 the Authority. The Authority 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 the Authority. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 199 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 8 - (P) Timely Notice of Claims. Contractor shall give the Authority prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (Q) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 3.2.13 Bonds. 3.2.13.1 Performance Bond. If required by law or otherwise specifically requested by the Authority attached hereto and incorporated herein by reference, Contractor shall execute and provide to the Authority 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 Authority. If such bond is required, no payment will be made to Contractor until it has been received and approved by the Authority. 3.2.13.2 Payment Bond. If required by law or otherwise specifically requested by the Authority attached hereto and incorporated herein by reference, Contractor shall execute and provide to the Authority 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 Authority. If such bond is required, no payment will be made to Contractor until it has been received and approved by the Authority. 3.2.13.3 Bond Provisions. Should, in the Authority’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 the Authority. 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 Authority, 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 Authority. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the Authority, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the Authority. 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 Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 200 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 9 - 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 Authority 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 Authority. 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 Authority. 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 the Authority 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. Unless expressly stated otherwise in the Special Conditions or Specifications, Contractor acknowledges that Work sites are occupied residential communities and that Work shall be completed in a manner that ensures minimal resident impact. 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 Authority immediately and prior to performing any Services or altering the condition. 3.2.15.3 Removal of Waste and Debris. Contractor shall remove at its own expense all rubbish and waste materials resulting from its operations, including any material that may fall in swimming pools, lagoons, or other water features. If on private property, Contractor must obtain permission from the property owner prior to removing debris. All debris must be removed before the end of the day unless otherwise directed by Authority or Authority’s agent. 3.2.15.4 Notifications to Authority and Residents. The Contractor shall acknowledge that the Authority provides forty-eight (48) hours’ notice in advance of the start of any Work that is to occur at any residential unit. Contractor shall provide sufficient notice to the Authority before beginning any such Work so that the Authority may provide timely notice to residents. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 201 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 10 - 3.2.15.5 Paths of Travel. Pedestrian paths of travel must be maintained free of obstructions and hazardous conditions, except where the condition is necessary for completion of the Work. To the extent any portion of the Work requires obstructing pedestrian paths of travel, the Work shall be performed so as to minimize the extent of the obstruction. Where Contractor’s operations may create hazardous conditions to pedestrian paths of travel, appropriate signing and barricades shall be installed to safely route pedestrians around the impacted area. The Authority shall be given at least 48-hours’ notice prior to the creation of any condition affecting pedestrian paths of travel. 3.2.15.6 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state, and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions of the local ordinances regulating discharges of storm water; the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.);the California Porter-Cologne Water Quality Control Act (Water Code§ 13000 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Contractor shall additionally comply with the lawful requirements of any local agency with jurisdiction over the location where the Work is to be conducted, regarding discharges of storm water to separate storm drain systems or other watercourses, including applicable requirements in municipal storm water management programs. 3.2.15.7 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 Authority in writing. The Authority 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 Authority 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 the Authority. 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 Authority 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 Authority 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 cor rected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one (1) year period, Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 202 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 11 - commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the Authority 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 Authority, regardless of whether or not such warranties and guarantees have been transferred or assigned to the Authority by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the Authority. 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 Authority, the Authority 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 Authority 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 Ninety Five Thousand Four Hundred and 00/100 Dollars ($95,400.00) without written approval of the Palm Desert Housing Authority Board or Executive Director, as applicable. 3.3.2 Payment of Compensation. Contractor shall submit to the Authority monthly invoices which provides a detailed description of the Services and hours rendered by Contractor. The Authority 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 the Authority 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 Authority for any reason whatsoever. 3.3.3 Deductions. The Authority may deduct or withhold, as applicable, from each progress payment an amount necessary to protect the Authority 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 Authority, incurred by the Authority for which Contractor is liable under the Agreement; and (4) any other sums which the Authority 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 Authority to deduct any of these sums from a progress payment shall not constitute a waiver of the Authority's right to such sums. 3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by the Authority. 3.3.5 Extra Work. At any time during the term of this Agreement, the Authority may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by the Authority to be necessary for the proper completion of the Project, but Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 203 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 12 - 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 the Authority’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 $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. The Authority 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 Authority, 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 Authority. Contractor shall defend, indemnify and hold the Authority, 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. The Authority 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 Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 204 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 13 - shall be compensated only for those Services which have been adequately rendered to the Authority, and Contractor shall be entitled to no further compensation. Contr actor may not terminate this Agreement except for cause. 3.4.2 Effect of Termination. If this Agreement is terminated as provided herein, the Authority 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, the Authority 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: VM Pool Service & Repair, Inc. 40395 Firenze Ct. Indio, CA 92203 Attn: VICTOR MONTERROSO, PRESIDENT/CEO/SECRETARY/CFO Authority: Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Attn: JESSICA GONZALES, HOUSING 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 Authority, 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 Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 205 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 14 - 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 Authority. 3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of the Authority’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 Authority, 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 Authority, 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 the Authority for the cost of any settlement paid by the Authority, 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 the Authority’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse the Authority, 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 Authority, 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 Authority. 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 Authority. 3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.5.5 Authority’s Right to Employ Other Contractors. The Authority 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 Authority. 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. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 206 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 15 - 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 Authority include the City, 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, the Authority shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of the Authority, during the term of his or her service with the Authority, 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. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 207 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 - 16 - 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] Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 208 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT BETWEEN THE PALM DESERT HOUSING AUTHORITY AND VM POOL SERVICE & REPAIRS, INC. IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed on the day and year first above written. PALM DESERT HOUSING AUTHORITY By: L. Todd Hileman Executive Director ATTEST: By: Anthony J. Mejia Secretary APPROVED AS TO FORM: By: __________________________ Isra Shah Best Best & Krieger LLP Special Legal Counsel VM POOL SERVICE & REPAIRS, INC. By: ________________________________ Victor Monterroso President/Secretary _____957537_____________________ Contractor’s License Number and Classification ____1000370072____________________ DIR Registration Number (if applicable) City Clerk QC: _____ Contracts QC: _____ Insurance: _____ Initial Review _____ Final Approval _____ Bonds Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 209 CONTRACT NO. _____________ (BB&K 2019) 72500.00001\32374943.1 EXHIBIT “A” SCOPE OF SERVICES Routine Maintenance Services Daily Pool and Spa Maintenance. 1. Perform daily cleaning and chemical balancing, including skimming, vacuuming, brushing, and emptying baskets. 2. Check and adjust choline, pH, and other chemical levels as required to maintain water quality. 3. Inspect and service pool pumps, filters, heaters, and other equipment to ensure proper operation. 4. Maintain detailed logs of chemical levels and work performed each day. 5. Ensure compliance with Riverside County Environmental Health Department Standards, California Department of Public Health, and any other health regulations regarding pool safety and water quality. 6. On-site storage of chemical is prohibited; except as required to be kept on site by a health and/or safety regulatory body. Daily Water Feature Maintenance 1. Conduct daily cleaning and maintenance of water feature at One Quail Place property. 2. Test and adjust water chemistry to maintain clarity and prevent algae growth. 3. Inspect and maintain pumps, lighting, and mechanical components for proper function. 4. Check for leaks or damage daily and report issues to the Housing Authority promptly. Preventative Equipment Maintenance 1. Perform regular inspections of all equipment to identify potential issues. 2. Lubricate moving parts, replace seals, and clean or replace filters as needed. 3. Provide monthly report summarizing the condition of all pools, spas, and water feature. 4. Replace damaged or malfunctioning components, including pumps, motors, lighting, and control systems. Emergency Repairs: Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 210 CONTRACT NO. _____________ (BB&K 2019) 72500.00001\32374943.1 1. Provide emergency repair services with a response time of 2 hours for issues posing immediate safety hazards or significant operational disruptions. 2. Establish a 24/7 emergency contact protocol. Repair Logging and Documentation 1. Maintain a comprehensive log of all repairs conducted, including date, time, nature of the issue, actions taken, and parts replaced. 2. Submit monthly repair reports to PDHA detailing all maintenance and repair activities. 3. Ensure that all repair logs are accessible to PDHA upon request for review and audit purposes. Warranty Management: 1. Provide documentation of all warranties for parts and labor associated with repairs. 2. Manage warranty claims on behalf of PDHA, ensuring timely resolution and replacement of faulty components. 3. Maintain a record of all warranty information and provide updates to PDHA as warranties expire or are renewed. Chemicals: 1. On-site storage of chemicals is strictly prohibited except as required to be on-site by a health and/or safety regulatory body. 2. Handling of pool and spa chemicals must comply with the guidelines set forth by the California Division of Occupational Safety and Health (Cal/OSHA) and other safety regulatory bodies. General Contract Scope of Services: Proposer shall: 1. Provide the necessary manpower and equipment to maintain the Properties, at the level of maintenance and service defined by the Authority, for a period of six (6) months commencing on January 1, 2025. 2. Be responsible for the maintenance program and repairs of the Authority Properties. 3. Maintain all pools, spas, and water features to meet applicable Riverside County Health Department standards and any other applicable governing entity. 4. Inspect and maintain records on all pools, water features and equipment. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 211 CONTRACT NO. _____________ (BB&K 2019) 72500.00001\32374943.1 5. Perform preventative maintenance on mechanical, electrical, and related equipment. 6. Provide appropriate equipment and labor for the execution of all maintenance activities. 7. The Authority reserves the right to inspect and/or approve any equipment used in this contract. If the Authority deems the equipment to be in disrepair or inappropriate to the task at hand, the Authority may require that the equipment be removed from the job site and replaced with a different piece of equipment. 8. Provide personnel fully trained and certified in all phases of pool and water feature maintenance and chemical acquisition activities for the Authority Properties. 9. Provide personnel capable of effective verbal communication with the Authority representatives. If the Authority deems personnel to be inadequate to accomplish the task at hand, the Authority 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 Services. 10. Remove debris caused by all maintenance activities on the same working day that such debris is accumulated unless otherwise stated. 11. Perform preventive maintenance and repairs of all aspects of the Authority pool and water feature systems and ensures that repairs comply with applicable manufacturer’s specifications and procedures. 12. Maintain filter systems, inspect filter’s proper flow rates; perform water quality tests, inspect fixtures for leaks, condition of equipment; conduct periodic maintenance; log appropriate data and maintain documentation. 13. Maintain, adjust, repair chemical controllers to include calibration and standardization; automatic pool leveling equipment, including valves, floating weirs, and skimmer checks. 14. Be knowledgeable of principles, standard practices, methods, tools, materials, and techniques required and the ability to maintain repair commercial swimming pool filtration systems, chemical pumps & control systems, heathers and other related equipment and structures. 15. Firm must demonstrate they have the skills and capability necessary to understand methods and techniques of water sterilization, chlorination, and pH balancing; occupational hazards and standard safety practices. 16. Have the knowledge and skills necessary to safely use hazardous chemicals; maintain, repair and diagnose problems relating to the pools at the Properties. 17. Be able to manage multiple priorities, interpret blueprints, plans, schematic drawings and manuals to determine proper operating conditions for all pools and water features. 18. Furnish all pool chemicals related to daily operations of the Authority pool and water feature. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 212 CONTRACT NO. _____________ (BB&K 2019) 72500.00001\32374943.1 The repeated failure of any Firm to provide satisfactory service shall result in termination of Firm’s contract for nonperformance. The Authority shall document failure to respond, and the Firm may not be permitted to participate in future contracts for these services. Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 213 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit B - 1 EXHIBIT “B” SCHEDULE OF SERVICES Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 214 CONTRACT NO. _____________ (BB&K 2019) 72500.00001\32374943.1 Exhibit B-2 Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 215 CONTRACT NO. _____________ (BB&K 2019) 72500.00001\32374943.1 Exhibit B-3 Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 216 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit C - 1 EXHIBIT “C” COMPENSATION Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 217 CONTRACT NO. _____________ Revised 11-2-20 BBK 72500.00001\32374943.1 Exhibit D - 1 EXHIBIT “D” FEDERAL REQUIREMENTS NOT APPLICABLE Docusign Envelope ID: B387CED2-A771-448D-B0A9-A52C784DAB86 HA48770 218 Contract No. HA48770 Page 1 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 1TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE PALM DESERT HOUSING AUTHORITY AND VM POOL SERVICE AND REPAIRS, INC. 1. Parties and Date. This Amendment No. 1 to the MAINTENANCE SERVICES AGREEMET, HA48770 is made and entered into as of this 22nd day of May, 2025 by and between the Palm Desert Housing Authority (“Authority”) and VM POOL SERVICE AND REPAIRS, INC., a Corporation, with its principal place of business at 40395 Firenze Court, Indio, CA 92203 ("Vendor"). The Authority and Vendor are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. Recitals. 2.1 Agreement. The Authority and VM Pool Service and Repair, Inc. have entered into an agreement entitled “MAINTENANCE SERVICES AGREEMET, HA48770” dated January 1, 2025 (“Agreement” or “Contract”) for the purpose of retaining the services of VM POOL SERVICE AND REPAIRS, INC. to provide POOL AND WATER FEATURE MAINTENACE AND REPAIR SERVICES AT PALM DESERT HOUSING AUTHORITY PROPERTIES. 2.2 Amendment. The Authority and VM POOL SERVICE AND REPAIRS, INC. desire to amend the Agreement to INCREASE ADDITIONAL SERVICES TO THE NOT TO EXCEED COMPENSATION AMOUNT. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3.5.9 of the Agreement. 3. Terms. 3.1.1 Compensation. Section 3.3.1 of the Agreement is hereby amended in its entirety to read as follows: “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 Ninety-Five Thousand Four Hundred and 00/100 Dollars ($95,400.00) without written approval of the Palm Desert Housing Authority Board or Executive Director, as applicable. Extra Work may be authorized, as described in Section 3.3.5 Extra Work of the Agreement, and if authorized, will be compensated at the rates and manner set forth in this Agreement or as agreed to by the Parties in writing in an amount not to exceed Thirty Five Thousand and 00/100 Dollars ($35,000.00).” 3.1.2 Exhibits “Exhibit C” is hereby deleted in its entirety and replaced with Exhibit 1 attached hereto and incorporated herein by reference. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 219 Contract No. HA48770 Page 2 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 3.3 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. 1. 3.4 Severability. If any portion of this Amendment No. #1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. [SIGNATURES ON FOLLOWING PAGE] 220 Contract No. HA48770 Page 3 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 1 TO MAINTENANCE SERVICES AGREEMENT BETWEEN THE PALM DESERT HOUSING AUTHORITY AND VM POOL SERVICE AND REPAIRS, INC IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the MAINTENANCE SERVICES AGREEMENT as of the day and year first above written. PALM DESERT HOUSING AUTHORITY By: Chris Escobedo Executive Director Attest: By: Anthony J. Mejia Secretary Approved as to form: By: Isra Shah Best Best & Krieger LLP Special Counsel VM POOL SERVICE AND REPAIRS, INC By: Victor Monterroso President/Secretary Clerks QC: ________ Contracts QC: ________ Insurance: ___________ Initial Review ___________ Final Review 221 Contract No. HA48770 Page 4 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 Exhibit 1 222 Contract No. HA48770 Page 5 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 223 224 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Nick Melloni, AICP, Principal Planner Carlos Flores, AICP, Deputy Director Development Services SUBJECT: AUTHORIZE AN AMENDMENT TO CONTRACT NO. C46680 WITH INTERWEST CONSULTING GROUP, INC., EXTENDING THE CONTRACT TERM THROUGH DECEMBER 31, 2025, WITH OPTION FOR ONE ADDITIONAL ADMINISTRATIVE EXTENSION RECOMMENDATION: 1. Authorize an amendment to Contract No. C46680 with Interwest Consulting Group, Inc., extending the contract term through December 31, 2025, and allowing for one additional one- year automatic extension, if necessary. 2. Authorize the City Attorney to make any necessary non-monetary changes to the agreement. 3. Authorize the City Manager or designee to execute the amendment and to review and approve all documents necessary to effectuate this agreement pursuant to Section 3.30.170 of the Palm Desert Municipal Code. BACKGROUND/ANALYSIS: The Palm Desert University Neighborhood Specific Plan (“UNSP”) was adopted in November 2016 and established conceptual land uses and zoning standards for approximately 400 acres located in the north sphere of the City, adjacent to the university campuses. Since the original adoption, several areas of the UNSP have been developed with residential and open space land uses or entitled for non-residential land uses. Approximately 170 acres within the UNSP are vacant and controlled by the Successor Agency to the Palm Desert Redevelopment Agency (SARDA). On March 9, 2023, the City Council adopted City Council Goals for the 2023 calendar year (Resolution No., 2023-007), which included a goal to gather community input, design, and build a community and regional park in North Palm Desert. On November 16, 2023, the City Council awarded Contract No. C46680 to Interwest Consulting Group (Consultant) in the amount of $264,880 to update the P alm Desert UNSP and facilitate the planning land use concepts of the remaining 170 acres to implement the City’s goals including a site for a regional park, community facilities, and residential and commercial uses. The plan will also include planning and zoning for a site to provide a minimum of 220 affordable housing units within the UNSP, which is consistent with the City’s obligations under the 6th cycle of the Housing Element. Amendment Request Staff requests for approval of Amendment No. 1 of the co ntract to extend the contract term to December 31, 2025. The project was paused temporarily while Staff and the Consultant worked 225 City of Palm Desert Contract No. C46680 Amendment No. 1 – Palm Desert UNSP Amendment Page 2 of 2 through the approach to include the regional park within the UNSP without requiring a change order request for additional funds. The request today is to extend the contract term to complete the following remaining tasks: 1. Finalizing the preferred land use for the vacant 170 -acres including a 30-to-40-acre regional park; 2. Finalizing the text of the specific plan; 3. Completing the Environmental analysis for the UNSP amendment; 4. Adoption of the UNSP Amendment and environmental analysis. In early 2024, the consultant prepared two (2) draft land uses concepts showing alternative placements of a regional park, as well as residential and commercial land uses to present to the community for feedback during an outreach meeting. During the community outreach meeting held in March 2024, the California State University (CSU) San Bernardino became aware of the City’s intention to develop a regional sports park and approached the City to explore options of locating a joint-use public regional sports park within vacant areas of the CSU San Bernardino Palm Desert Campus located east of Cook Street, outside of the boundaries of the UNSP. The discussion with the CSU was unexpected in the timeline of the original UNSP update and required an extended project timeline while City staff entered discussions with the CSU. Discussions with the CSU regarding the joint use park are ongoing and no formal commitmen ts to the park have been made between the City and CSU campus. The original term of the contract expired on December 31, 2024. To complete the UNSP Amendment, Staff is requesting the City Council authorize an amendment to extend the term of the contract until December 31, 2025, with the option for one additional one -year automatic extension through December 31, 2026, if necessary. This will allow City staff to work with the consultants to carry out the remaining tasks needed to complete the UNSP Amendment . No additional funds are required as a result of this request. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Funds for this purpose have been budgeted in the Community Development Professional Services Account No. 1104470-4300500. The remaining tasks will not exceed the original amount approved for the project, therefore there is no additional impact to the General Fund with this action. Description Account Amount C46880 – Interwest Consulting Group UNSP 1104470-4300500 $264,880 ATTACHMENTS: 1. Proposed Amendment No. 1 for Contract No. C46680. 2. Original Executed Contract No. C46680 226 Contract No. C46680 Page 1 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT, C44860 BETWEEN THE CITY OF PALM DESERT AND INTERWEST CONSULTING GROUP, INC., 1. Parties and Date. This Amendment No. 1 to the Professional Services Agreement, C44860, is made and entered into as of this 22nd day of MAY, 2025, by and between the City of Palm Desert (“City”) and INTERWEST CONSULTING GROUP, INC., a Corporation, with its principal place of business at 1500 S Haven Ave, Suite 220 Ontario, CA 91761 ("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 INTERWEST CONSULTING GROUP, INC., have entered into an agreement entitled “Professional Services Agreement, C44860” dated November 16, 2023 (“Agreement” or “Contract”) for the purpose of retaining the services of INTERWEST CONSULTING GROUP, INC., a Corporation to provide Professional Planning Services for Updating the University Neighborhood Specific Plan (UNSP), Project 2023- RFP-203 2.2 Amendment. The City and INTERWEST CONSULTING GROUP, INC., desire to amend the Agreement to Extend the Terms of the Agreement. 2.3 Amendment Authority. This Amendment No. 1 is authorized pursuant to Section 3.6.14 of the Agreement. 3. Terms. 3.1.2 Term 3.1.2 of the Agreement is hereby amended in its entirety to read as follows: The term of this Agreement shall be from NOVEMBER 16, 2023, to DECEMBER 31, 2025, 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 ONE additional one-year term. Consultant shall complete the Services within the term of this agreement and shall meet any other established schedules and deadlines. 3.2 Continuing Effect of Agreement. Except as amended by this Amendment No. 1, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 1. From and after the date of this Amendment No. 1, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 1. 3.3 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. 1 3.4 Severability. If any portion of this Amendment No. 1 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.5 Counterparts. This Amendment No. 1 may be executed in duplicate originals, each 227 Contract No. C46680 Page 2 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. [SIGNATURES ON FOLLOWING PAGE] 228 Contract No. C46680 Page 3 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT, C44860 BETWEEN THE CITY OF PALM DESERT AND INTERWEST CONSULTING GROUP, INC. IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 1 to the PROFESSIONAL SERVICES AGREEMENT, C44860 as of the day and year first above written. CITY OF PALM DESERT INTERWEST CONSULTING GROUP, INC. A CORPORATION City Clerk QC: _____ Contract QC: _____ Insurance: _____ Initial Review _____ Final Approval 229 Contract No. C46680 Page 4 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 EXHIBIT “A-1” SCOPE OF SERVICES Project Objectives This planning effort will focus on evaluating existing and potential land uses; analyzing circulation and infrastructure conditions; and developing land use regulations, implementation strategies and objective design guidelines to encourage appropriately scaled development within the project area. The primary objectives to be achieved through the UNSP update are: Consistency with General Plan Land Use and Circulation Element or consider making the Specific Plan the effective land use document over the project area. Engage and inform the public and existing Plan area residents about transit-oriented design concepts, potential updated development standards and the UNSP update process generally through a comprehensive community involvement strategy. This strategy shall gather significant resident input from a variety of Palm Desert residents and incorporate this input into the UNSP Update policies and design guidelines. Revise the land use plan and policy framework to transition from significant commercial use requirements to increased housing density and development, while also allowing other neighborhood supportive uses such as retail and office mixed-use throughout the Plan area. Improvement of motorized, non-motorized, and transit connectivity between the Plan Area, and existing and future commercial and residential areas (and circulation infrastructure) in and adjacent to Palm Desert city boundaries (as feasible). Development and implementation of objective urban design standards which promote walkable and livable environments, compatible with the surrounding and existing development within the Plan area. Develop subdivision standards that promote walkable environments and incorporate policies of the General Plan. Prepare any necessary addenda or supplements to complete the CEQA impact analysis, building on the adopted Environmental Impact Report, as appropriate. GENERAL The consultant shall prepare amendments to the UNSP in accordance with Government Code Section 65450 et. seq. The proposal should address all studies, activities, and disciplines necessary to complete the amendment. Consultant responsibilities are those listed below which are not exhaustive. The City encourages innovation in concept, design and implementation. It is not intended that the plan include construction level engineering and design; however, the work must be of adequate detail to evaluate needs, capacity, and cost. Assemble and review existing information and data. • Develop new information and data to support the update. • Present background information and data, either within the plan document, or as a separate compendium. The consultant’s recommendation on the most effective approach is requested. All information should be made available in electronic format suitable for display on the City’s web site. 230 Contract No. C46680 Page 5 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 • Prepare all text, illustrations and maps contained in the Amendment. Provide administrative draft(s) for internal City review, a screen check draft, a public review draft, and final documents reflecting all modifications directed by the City. Provide documents in sufficient quantity for review by City officials, property owners and for public circulation, and provide all materials in an electronic format suitable for publication on the City’s website. TASK 1: PROJECT KICK-OFF The consultant(s) and City staff will meet to review and finalize the work scope and project schedule. The meeting will include a discussion of project goals, opportunities and constraints, provision of relevant background information and documents for the existing conditions analysis, arrangement of informational meetings with relevant city staff members, development of the community engagement strategy, and project management. Deliverables: 1.1 : Project kick-off meeting with City staff 1.2 : Memorandum summarizing the meeting (Word and PDF format) TASK 2: COMMUNITY ENGAGEMENT STRATEGY AND OUTREACH The City is seeking to engage community participation in the UNSP update process. City staff and the consultant(s) will develop a community engagement strategy that will focus on outreach to, and inclusion of key stakeholders including residents, business owners, and property owners. The strategy must include various forms of engagement to increase levels of community participation. One open house/community workshop must be held as part of this Task. The purpose of the meetings is to understand the community’s vision, with a focus on new residential communities in the UNSP area, recognize attitudes surrounding what land uses and development intensity should be included in the plan, and to solicit input on opportunities, constraints, and potential changes for the area. The consultant will be responsible for utilizing tools and developing a process to understand community preferences within the project area. Use of photo simulations and development prototypes to help identify preferences should be employed, as well as community asset mapping, allowing the community to identify concepts for improving/transforming the area. The community input will assist in guiding the development of the two land use alternatives. The consultant will lead these meetings, present plan area existing conditions and opportunities, and receive feedback from community members regarding information presented. Webpage The consultant will develop content and provide background and meeting information, reports and maps related to the project for a project specific webpage. The project webpage will be part of the City’s website (rather than a separate, outside website linked to the City’s). City staff will post information and keep the site current, with updated content provided by consulting staff. Deliverables: 2.1: Community Engagement Strategy, including components as described above 231 Contract No. C46680 Page 6 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 2.2: Visualization tools, including renderings and visual simulations (physical and electronic format) 2.3 : Project webpage content and materials 2.4 : Community Meeting #1 (including agenda, attendance, meeting materials) 2.5 : Summary of Community Meeting #1 2.6 : Potential supplementary meetings with City Staff and relevant stakeholders TASK 3: OPPORTUNITY SITE ANALYSIS AND ALTERNATIVE LAND USE ANALYSIS Following the initial meetings and outreach, the consultant shall develop the land use alternatives. The scenarios should be developed to support bus transit as well as to facilitate pedestrian and bicycle access. Alternatives should promote development of healthy, walkable neighborhoods and enhance opportunities for residents to easily access services and facilities throughout the Plan area and beyond. Changes to development standards or incorporation of form -based code may be considered. The alternatives should consider information prepared through the planning process and from the community outreach. Commercial, office, residential, open space, and mixed-use land uses should be thoughtfully and strategically placed to maximize community connectivity and create a level of synergy between adjacent single-family residential neighborhoods. The alternatives should consider information generated through previous analysis, and community outreach. Each alternative must address: • A mix of housing units that aligns with the City’s RHNA and Housing Element. • Distribution and evaluation of proposed new uses, including affordable residential units by type and non-residential square footage by type and a planned regional park. • Roadway design alternatives to support the proposed uses and circulation, including sidewalk width, public amenities/furniture, on-street parking and curb management, including placemaking concepts. • A transportation analysis shall be prepared for each alternative comparing how each addresses connectivity to services, schools, jobs, and transit. • The chosen alternative will include an intersection Level of Service (LOS) and Vehicle Miles Travelled (VMT) analysis for Palm Desert General Plan consistency purposes and impact analysis under CEQA. VMT analysis to be completed by a separate consultant. • A report and maps describing and analyzing the alternatives will be prepared to quantify development potential in terms of housing units, non-residential floor area, population, and employment. Projected population and jobs for each alternative shall be included. Presentation of Land Use and Circulation Alternatives: The consultant will present the alternatives to the staff for review, feedback, and possible refinement prior to presentation at a public meeting. At that meeting, the consultant shall utilize interactive techniques to understand participants’ preferences. This may result in a clear preference for one alternative or in a hybrid concept which combines components of each. Based upon input received, the consultant shall develop a preferred land use and circulation alternative which will serve as the basis for the Specific Plan Update. This Plan will be presented 232 Contract No. C46680 Page 7 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 to staff, and refinements will be made to the preferred alternative prior to its presentation to the Planning Commission and/or City Council. Input received at this meeting will be used to refine the alternative and develop the preferred alternative. Deliverables: 3.1 : Display graphics illustrating the alternative land use and circulation plans with additional sketches, visual simulations, elevations, and street sections needed to convey each alternative 3.2 : Land Use and Circulation Alternatives Report 3.3 : Quantified development potential and traffic analysis for preferred alternative (meeting CEQA requirements) TASK 4: PREFERRED LAND USE ALTERNATIVE Based on input received at community/committee meetings, as well as input received from other methods of community outreach, the consultant(s), in consultation with City staff, will develop a preferred land use alternative which will serve as a basis for the draft Specific Plan update. The preferred alternative will be presented to staff for review and feedback. The community will also be asked to respond to the preferred plan. Input received will be used to refine the alternative and develop the draft Specific Plan update. Deliverables: 4.1 : Preferred land use plan visuals, including sketches and elevations 4.2 : Preferred land use plan report, including quantified development potential 4.3City Council Workshop #1 to present preferred land use plan 4.4 : Community Workshop #2, including attendance and facilitation, and all necessary meeting materials 4.5 : Community Workshop #2 summary TASK 5: INFRASTRUCTURE DEVELOPMENT AND SERVICE PLAN Working with the staff, the consultant shall prepare a conceptual Infrastructure Development and Services Plan to determine infrastructure needed to support land uses and improvements identified in the preferred alternative, adequate to meet the needs of CEQA. The analysis shall describe infrastructure conditions and improvements needed to support the plan in terms of water, wastewater, storm drainage (including low impact development), electricity, gas, cable, telephone service, internet/fiber, transportation, greenways, and parks. Distinction shall be made between improvements needed for existing versus future development so future costs can be appropriately attributed. In addition, increased demand for public services such as transit, schools, police, and fire required to serve the Plan area should be identified. The Plan shall: • Analyze and summarize existing and needed service capacities. 233 Contract No. C46680 Page 8 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 • Assess the services envisioned in the UNSP area and those that would be needed with the preferred alternative. • Provide descriptions of needed public improvements, including street improvements to City standard, upsizing of water and wastewater mains and storm drains, undergrounding utilities, and development costs. • Provide descriptions of needed improvements associated with private utilities, such as natural gas, electric, phone, cable, and internet connectivity. • Provide descriptions of any changes required to public services and facilities. • Provide general cost estimates and phasing recommendations for needed improvements and service systems within the UNSP area. Deliverables: 5.1 : Infrastructure Development and Services Memorandum TASK 6: DRAFT UNIVERSITY NEIGHBORHOOD SPECIFIC PLAN UPDATE The consultant shall prepare a draft updated Specific Plan in compliance with state law. The updated Specific Plan will serve as the City’s long range, comprehensive land use, circulation, and implementation plan for guiding development within the Plan boundary. The Specific Plan shall contain the following components: • Planning Process. Description of the process to develop the Plan and the role the public played in creating the Plan. • Land Use/Housing. Description of land use designations, including number of units, potential square footage of mixed use and or neighborhood serving retail development, and employment generating land uses. Population and job projections shall be included. Changes to development standards or implementation of form-based code must be considered. • Transportation. Description of circulation for motor vehicles, transit, bicycles, and pedestrians. New streets, paired one-way streets, paths, and connections shall be included. Policies regarding complete streets and the circulation element of the General Plan shall also be included. • Public Services. Includes information about services and infrastructure needed to implement the updated Plan. This should include specific policies regarding utilities, public safety, and parks. • Access and Connectivity Plan. Addresses access to and through the Plan area with specific focus on connecting housing, commercial, and retail with the Plan area to existing neighborhoods by all transportation modes including walking, bicycling, driving, and transit. • Implementation and Financing Plan. Identifies actions and strategies for Plan implementation, including a rough budget estimate. Include infrastructure improvements needed for Plan implementation. An administrative draft Specific Plan shall be prepared for review by City staff. Comments received shall be incorporated into the public review draft Specific Plan. The draft Specific Plan Update shall then be presented to the Planning Commission at a public workshop then to City Council at a Study Session to present the final draft and accept any remaining comments and requested changes. Deliverables: 234 Contract No. C46680 Page 9 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 6.1: Administrative Draft Specific Plan 6.2: Public Review Draft Specific Plan 6.3: Community Workshop #3, including attendance and facilitation, and all necessary meeting materials 6.4: Workshop #3 Summary 6.5: City Council Study Session #2, including attendance and facilitation, and all necessary meeting materials 6.6: City Council Study Session #2 summary TASK 7: GENERAL PLAN AND ZONING AMENDMENTS Consultant(s) and City staff will evaluate properties within the project boundaries to determine which sites would need General Plan land use amendments and UNSP rezoning based on the preferred alternative developed in Task 5. Deliverables: 7.1: List of properties, and associated maps, requiring General Plan land use designation amendments, and to what designation they will be amended (maps must be compatible with ESRI Geographic Information Systems) 7.2: List of General Plan text amendments 7.3: List of properties, and associated maps, requiring UNSP rezoning, and to what designation they will be amended (maps must be compatible with ESRI Geographic Information Systems) 7.4: List of Zoning Code text amendments TASK 8: ENVIRONMENTAL ANALYSIS The proposed project is an update to the University Specific Plan that was previously analyzed by the General Plan Update & University Specific Plan EIR. Although some changes or additions to the EIR may be necessary to more fully describe and address the specifics of the proposed University Specific Plan project, the project appears to meet the requirements for an Addendum, unless any of conditions pursuant to CEQA Guidelines Section 15164 would apply. Initial Study Checklist Approach: IW will utilize the latest City-preferred version of an Initial Study template for the CEQA analysis, appropriate for use with an EIR Addendum, to document whether or not an Addendum to the General Plan Update & University Specific Plan EIR is appropriate and applicable for the proposed project. The Initial Study will address the following issues pertaining to each CEQA Checklist question: • The General Plan Update & University Specific Plan EIR significance conclusions for each potential impact (i.e., Less than Significant, LTS with Implementation of Mitigation Measures, or Significant and Unavoidable) 235 Contract No. C46680 Page 10 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 • The Project’s relationship to the General Plan Update & University Specific Plan EIR findings (either Equal or Less Severity, or a Substantial Increase in Severity) • Applicable mitigation measures and Conditions of Approval, and • The Project’s resulting level of significance The proposed project may meet the requirements for an Addendum pursuant to CEQA Guidelines Sections 15162, 15164, and 15168 to the extent it can be demonstrated with substantial evidence that: 1) the Project’s impacts were addressed in the General Plan Update & University Specific Plan EIR, and 2) that the Project would not generate a new environmental impact or a substantial increase in the severity of an environmental impact previously identified in the prior General Plan Update & University Specific Plan EIR. No Supplemental or Subsequent EIR would then be required. Interwest will review all technical studies including AQ/GHG, Biological Resources, Cultural Resources, Transportation Impacts (analyze VMT and LOS), and Water Supply Assessment. If required, we will coordinate with technical consultants to complete necessary corrections and revisions to technical studies. In addition, Interwest will initiate tribal consultations in compliance with SB 18 and AB 52. Interwest will prepare the draft Initial Study (IS) in compliance with the 2024 CEQA Statute and Guidelines and analyze the broad-scale environmental impacts of the updated Specific Plan, including: Land Use Consistency and Compatibility, Population, Housing and Employment, Transportation and Circulation, Air Quality, Energy/Climate Change, Water Usage, and Cultural Resources. Once the draft Initial Study has been reviewed by City staff, it will be revised to address City department comments, and provide all additional deliverables as determined by the review of the draft IS. A meeting will be held by Interwest and City staff to review the technical report findings and draft IS to determine whether the project impacts, as documented in the draft IS, can demonstrate that no new significant effects will result from the project (inclusive of required mitigation measures), or that the project’s potentially significant impacts have already been fully disclosed and evaluated in the prior General Plan Update & University Specific Plan EIR. A draft and final EIR Addendum in compliance with the 2024 CEQA Guidelines sections 15162, 15164 and 15168 will be prepared. Interwest will deliver to all agencies on the City’s CEQA contact list and deliver to all individuals requesting notice. All comments received will be compiled and a final EIR Addendum will be prepared with Mitigation Monitoring and Reporting Program (MMRP). Interwest staff will attend one Planning Commission meeting to approve the project and EIR Addendum. A Notice of Determination (NOD) will be prepared and filed with the Office of Planning and Research (OPR) and County Clerk. Deliverables: 8.1: Draft and Final Initial Study and any appendices (Word & PDF) 8.2: Administrative draft EIR Addendum, (Word and PDF format) 8.3: Public review raft EIR Addendum(Word and PDF format) 236 Contract No. C46680 Page 11 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 8.4: Final EIR Addendum t, including responses to comments and MMRP(Word & PDF format) 8.5: Notice of Determination (Word and PDF format) 237 Contract No. C46680 Page 12 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 EXHIBIT "B" SCHEDULE OF SERVICES (SEE FOLLOWING PAGE) 238 Contract No. C46680 Page 13 of 13 Revised 01-2024 BBK 72500.00001\32445060.1 EXHIBIT "C-1" 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, Riverside- San Bernardino-Ontario, CA. (SEE FOLLOWING PAGE) 239 240 Contract No. C46680 CITY OF PALM DESERT PROFESSIONAL SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this 16th day of November, 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 INTERWEST CONSULTING GROUP, INC, a CORPORATION, with its principal place of business at 1500 S Haven Ave, Suite 220 Ontario, CA 91761 ("Consultant"). City and Consultant are sometimes individually referred to herein as "Party" and collectively as "Parties." 2. RECITALS. 2.1 Project. The City is a public agency of the State of California and is in need of professional services for the following project: Professional Planning Services for Updating the University Neighborhood Specific Plan UNSP), Project 2023-RFP-203 Hereinafter Referred to as “The Project”). 2.2 Consultant. Consultant desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Consultant is duly licensed and has the necessary qualifications to provide such services. 3. TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Consultant promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from NOVEMBER 16, 2023, to DECEMBER 31, 2024, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. 3.2 Responsibilities of Consultant. 3.2.1 Independent Contractor; Control and Payment of Subordinates. The Services shall be performed by Consultant or under its supervision. Consultant will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Consultant on an independent contractor basis and not as an employee. Any personnel performing the Services shall not be employees of City and shall at all times be under Consultant's exclusive direction and control. Neither City, or any of its officials, officers, directors, employees or agents shall have control over the conduct of Consultant or any of DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 241 Contract No. C46680 Consultants officers, employees or agents, except as set forth in this Agreement. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers' compensation insurance. 3.2.2 Schedule of Services. Consultant shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit "B" attached hereto and incorporated herein by reference. Consultant represents that it has the professional and technical personnel required to perform the Services expeditiously. Upon request of City, Consultant shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Consultant shall be subject to the approval of City. 3.2.4 Substitution of Key Personnel. Consultant has represented to City that certain key personnel will perform and coordinate the Services. Should one or more of such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Consultant cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. The key personnel for performance of this Agreement are as follows: RICHARD SMEATON, AICP, PRINCIPAL-IN-CHARGE and NICK PERGAKES, AICP, PROJECT MANAGER. 3.2.5 City's Representative. The City hereby designates RICHARD CANNONE, DEVELOPMENT SERVICES DIRECTOR, or his designee, to act as its representative in all matters pertaining to the administration and performance of this Agreement City's Representative"). City's Representative shall have the power to act on behalf of the City for review and approval of all products submitted by Consultant but not the authority to enlarge the scope of Services or change the total compensation due to Consultant under this Agreement. The City Manager shall be authorized to act on City's behalf and to execute all necessary documents which enlarge the scope of services or change the Consultant's total compensation subject to the provisions contained in Section 3.3 of this Agreement. Consultant shall not accept direction or orders from any person other than the City Manager, City's Representative or his/her designee. 3.2.6 Consultant's Representative. Consultant hereby designates RICHARD SMEATON, AICP, PRINCIPAL-IN-CHARGE and NICK PERGAKES, AICP, PROJECT MANAGER, or his designee, to act as its representative for the performance of this Agreement ("Consultant's Representative"). Consultant's Representative shall have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. The Consultant's Representative shall supervise and direct the Services, using his/her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement. 3.2.7 Coordination of Services. Consultant agrees to work closely with City staff in the performance of Services and shall be available to City's staff, consultants and other staff at all reasonable times. 3.2.8 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner, consistent with the DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 242 Contract No. C46680 standards generally recognized as being employed by professionals in the same discipline in the State of California. Consultant represents and maintains that it is skilled in the professional calling necessary to perform the Services. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, and that such licenses and approvals shall be maintained throughout the term of this Agreement. Consultant shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Consultant's failure to comply with the standard of care provided herein. Any employee of the Consultant or its sub-consultants who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project. 3.2.9 Period of Performance. Consultant shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above (“Performance Time”). Consultant shall also perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be separately agreed upon in writing by the City and Consultant (“Performance Milestones”). Consultant agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such Performance Milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include a Force Majeure Event. A Force Majeure Event shall mean an event that materially affects a Party’s performance and is one or more of the following: (1) Acts of God or other natural disasters; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the services); (4) strikes and other organized labor action occurring at the site and the effects thereof on the services, only to the extent such strikes and other organized labor action are beyond the control of Consultant and its subcontractors, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (5) pandemics, epidemics or quarantine restrictions. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of a public agency applicable to the services and Agreement. Should a Force Majeure Event occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. Force Majeure Events and/or delays, regardless of the Party responsible for the delay, shall not entitle Consultant to any additional compensation. Notwithstanding the foregoing in this section, the City may still terminate this Agreement in accordance with the termination provisions of this Agreement. 3.2.10 Laws and Regulations; Employee/Labor Certification. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, and shall give all notices required by law. Consultant shall be liable for all violations of such laws and regulations in connection with the Services and this Agreement. All violations of such laws and regulations DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 243 Contract No. C46680 shall be grounds for the City to terminate the Agreement for cause. 3.2.10.1 Employment Eligibility; Consultant. Consultant certifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time and shall require all subconsultants and sub-subconsultants to comply with the same. Consultant certifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. 3.2.10.2 Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subconsultant, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Consultant shall also comply with all relevant provisions of City's Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.3 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Consultant’s indemnification of City, and prior to commencement of the Services, Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. A) General Liability Insurance. Consultant shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO insured contract” language will not be accepted. B) Automobile Liability Insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non- owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. The City’s Risk Manger may modify this requirement if it is determined that Consultant will not be utilizing a vehicle in the performance of his/her duties under this Agreement. C) Professional Liability (Errors & Omissions) Insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 244 Contract No. C46680 effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three years after completion of the Services required by this Agreement. D) Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance with limits of at least $1,000,000). Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, volunteers and representatives. E) Umbrella or Excess Liability Insurance. Consultant may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Consultant shall obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions: 1) A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; 2) Pay on behalf of wording as opposed to reimbursement; 3) Concurrency of effective dates with primary policies; and 4) Policies shall “follow form” to the underlying primary policies. 5) Insureds under primary policies shall also be insureds under the umbrella or excess policies. F) Fidelity Coverage. Reserved. G) Cyber Liability Insurance. Reserved. If coverage is maintained on a claims-made basis, Consultant shall maintain such coverage for an additional period of three (3) years following termination of the Agreement. 3.2.11.2 Other Provisions or Requirements. A) Proof of Insurance. Consultant shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. B) Duration of Coverage. Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, his/her agents, representatives, employees or subconsultants. DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 245 Contract No. C46680 C) Primary/Non-Contributing. Except with respect to Workers’ Compensation coverage, Coverage provided by Consultant shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. D) City’s Rights of Enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant, or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may terminate this Agreement. E) Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. F) Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, volunteers, and representatives or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, volunteers and representatives and shall require similar written express waivers and insurance clauses from each of its subconsultants. G) Enforcement of Contract Provisions (non estoppel). Consultant acknowledges and agrees that any actual or alleged failure on the part of the City to inform Consultant of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. H) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Consultant maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. I) Notice of Cancellation. Consultant agrees to oblige its insurance agent or broker and insurers to provide City with a thirty (30) day notice of cancellation except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 246 Contract No. C46680 J) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. K) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. L) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. M) Pass Through Clause. Consultant agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the Project by Consultant, provide the same minimum insurance coverage and endorsements required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to City for review. N) City’s Right to Revise Specifications. The City and the City’s Risk Manager reserve the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in additional cost to the Consultant, the City and Consultant may renegotiate Consultant’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. O) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. P) Timely Notice of Claims. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. Q) Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Services. 3.2.12 Water Quality Management and Compliance. Consultant shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Services including, without limitation, all applicable provisions of the City’s ordinances regulating water quality and storm water; the Federal Water Pollution Control Act (33 U.S.C. 1251, et seq.); the California Porter-Cologne Water Quality Control Act (Water Code § 13000 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 247 Contract No. C46680 et seq.); and any and all regulations, policies, or permits issued pursuant to any such authority. Consultant must comply with the lawful requirements of the City, and any other municipality, drainage district, or other local agency with jurisdiction over the location where the Services are to be conducted, regulating water quality and storm water discharges. Failure to comply with laws, regulations, and ordinances listed in this Section is a violation of federal and state law. Consultant warrants that all employees and subcontractors shall have sufficient skill and experience to perform the work assigned to them without impacting water quality in violation of the laws, regulations and policies of this Section. 3.3 Fees and Payments. 3.3.1 Compensation. Consultant shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit "C" attached hereto and incorporated herein by reference. The total compensation shall not exceed TWO HUNDRED SIXTY-FOUR THOUSAND EIGHT HUNDRED EIGHTY DOLLARS 264,880) without written approval of the City Council or City Manager, as applicable. 3.3.2 Payment of Compensation. Consultant shall submit to City monthly invoices which provide a detailed description of the Services and hours rendered by Consultant. City shall, within 30 days of receiving such invoice, review the invoice and pay all non-disputed and approved charges. If the City disputes any of Consultant's fees, the City shall give written notice to Consultant within thirty (30) days of receipt of an invoice of any disputed fees set forth therein. Consultant shall submit its final invoice to City within thirty (30) days from the last date of provided Services or termination of this Agreement and failure by the Consultant to submit a timely invoice may constitute a waiver of its right to final payment. Payment shall not constitute acceptance of any Services completed by Consultant. The making of final payment shall not constitute a waiver of any claims by the City for any reason whatsoever. 3.3.3 Reimbursement for Expenses. Consultant shall not be reimbursed for any expenses unless authorized in writing by City, or included in Exhibit "C" of this Agreement. 3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by City to be necessary for the proper completion of the Project, but which the Parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the City. 3.4 Labor Code Requirements. 3.4.1 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on "public works" and "maintenance" projects. If the Services are being performed as part of an applicable "public works" or maintenance" project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws. City shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Consultant's principal place of business and at the project site. It is the intent of the parties to effectuate the requirements of sections 1771, 1774, 1775, 1776, 1777.5, 1813, and 1815 of the Labor Code within this Agreement, and Consultant shall therefore comply with such Labor Code DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 248 Contract No. C46680 sections to the fullest extent required by law. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives, free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. 3.4.2 Registration/DIR Compliance. If the Services are being performed on a public works project of over $25,000 when the project is for construction, alteration, demolition, installation, or repair work, or a public works project of over $15,000 when the project is for maintenance work, in addition to the foregoing, then pursuant to Labor Code sections 1725.5 and 1771.1, the Consultant and all subconsultants must be registered with the Department of Industrial Relations (“DIR”). Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants. This Project may also be subject to compliance monitoring and enforcement by the DIR. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements, including the submission of payroll records directly to the DIR. Any stop orders issued by the DIR against Consultant or any subconsultant that affect Consultant’s performance of Services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant shall defend, indemnify and hold the City, its officials, officers, employees, agents, volunteers and representatives free and harmless from any claim or liability arising out of stop orders issued by the DIR against Consultant or any subconsultant. 3.4.3 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services. 3.5 Accounting Records. 3.5.1 Maintenance and Inspection. Consultant shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Consultant shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.6 General Provisions. 3.6.1 Termination of Agreement. 3.6.1.1 Grounds for Termination. City may, by written notice to Consultant, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Consultant of such termination, and specifying the effective date thereof, at least seven (7) days before the effective date of such termination. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. Consultant may not terminate this Agreement except for cause. The rights and remedies of the City provided in this section shall not be exclusive and are in addition to any other rights and remedies provided by law, equity or under this Agreement. DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 249 Contract No. C46680 3.6.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data and other information of any kind prepared by Consultant in connection with the performance of Services under this Agreement. Consultant shall be required to provide such document and other information within fifteen (15) days of the request. 3.6.1.3 Early Termination. Notwithstanding any provision herein to the contrary, if for any fiscal year of this Agreement the City Council fails to appropriate or allocate funds for future payment under the Agreement after exercising reasonable efforts to do so, the City may upon seven (7) days’ written notice, order work on the Project to cease. Upon termination, Consultant shall be compensated only for those Services which have been adequately rendered to City, and Consultant shall be entitled to no further compensation. 3.6.1.4 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated. 3.6.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose: Consultant: Interwest Consulting Group, Inc, 1500 S Haven Ave, Suite 220 Ontario, CA 91761 ATTN: Richard Smeaton, AICP, Principal-In-Charge City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 ATTN: Richard D. Cannone, AICP, Development Services Director Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.6.3 Ownership of Materials and Confidentiality. 3.6.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Consultant under this Agreement ("Documents & Data"). All Documents & Data shall be and remain the property of City, and shall not be used in whole or in substantial part by Consultant on other projects without the City’s express written permission. Within thirty (30) days following the completion, suspension, abandonment or termination of this Agreement, Consultant shall provide to City reproducible copies of all Documents & Data, in a form and amount required by City. City reserves the right to select the method of document reproduction and to establish where the reproduction will be accomplished. The reproduction expense shall be borne by City at the actual cost of duplication. In the event of a dispute regarding the amount of compensation DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 250 Contract No. C46680 to which the Consultant is entitled under the termination provisions of this Agreement, Consultant shall provide all Documents & Data to City upon payment of the undisputed amount. Consultant shall have no right to retain or fail to provide to City any such documents pending resolution of the dispute. In addition, Consultant shall retain copies of all Documents & Data on file for a minimum of fifteen (15) years following completion of the Project, and shall make copies available to City upon the payment of actual reasonable duplication costs. Before destroying the Documents & Data following this retention period, Consultant shall make a reasonable effort to notify City and provide City with the opportunity to obtain the documents. For the avoidance of doubt, nothing in this Agreement shall be understood to grant City ownership of pre-existing intellectual property of Consultant, including Consultant software and licensed software, or to any improvements thereto. 3.6.3.2 Subconsultants. Consultant shall require all subconsultants to agree in writing that City is granted a non-exclusive and perpetual license for any Documents Data the subconsultant prepares under this Agreement. Consultant represents and warrants that Consultant has the legal right to license any and all Documents & Data. Consultant makes no such representation and warranty in regard to Documents & Data which were prepared by professionals other than Consultant or its subconsultants, or those provided to Consultant by the City. 3.6.3.3 Right to Use. City shall not be limited in any way in its use or reuse of the Documents and Data or any part of them at any time for purposes of this Project or another project, provided that any such use not within the purposes intended by this Agreement or on a project other than this Project without employing the services of Consultant shall be at City’s sole risk. If City uses or reuses the Documents & Data on any project other than this Project, it shall remove the Consultant’s seal from the Documents & Data and indemnify and hold harmless Consultant and its officers, directors, agents and employees from claims arising out of the negligent use or re-use of the Documents & Data on such other project. Consultant shall be responsible and liable for its Documents & Data, pursuant to the terms of this Agreement, only with respect to the condition of the Documents & Data at the time they are provided to the City upon completion, suspension, abandonment or termination. Consultant shall not be responsible or liable for any revisions to the Documents & Data made by any party other than Consultant, a party for whom the Consultant is legally responsible or liable, or anyone approved by the Consultant. 3.6.3.4 Indemnification – Documents and Data. Consultant shall defend, indemnify and hold the City, its directors, officials, officers, employees, volunteers, agents and representatives free and harmless, pursuant to the indemnification provisions of this Agreement, for any alleged infringement of any patent, copyright, trade secret, trade name, trademark, or any other proprietary right of any person or entity in consequence of the use on the Project by City of the Documents & Data, including any method, process, product, or concept specified or depicted. Consultant shall have no liability arising from the use of any Documents & Data for any purpose or on any project other than that for which it was produced. 3.6.3.5 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents & Data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without the prior written consent of City, be used by Consultant for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. Consultant shall not use DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 251 Contract No. C46680 City's name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City. 3.6.3.6 Confidential Information. The City shall refrain from releasing Consultant’s proprietary information ("Proprietary Information") unless the City's legal counsel determines that the release of the Proprietary Information is required by the California Public Records Act or other applicable state or federal law, or order of a court of competent jurisdiction, in which case the City shall notify Consultant of its intention to release Proprietary Information. Consultant shall have five (5) working days after receipt of the release notice to give City written notice of Consultant's objection to the City's release of Proprietary Information. Consultant shall indemnify, defend and hold harmless the City, and its officers, directors, employees, agents, volunteers and representatives from and against all liability, loss, cost or expense (including attorney’s fees) arising out of a legal action brought to compel the release of Proprietary Information. City shall not release the Proprietary Information after receipt of an objection notice unless either: (1) Consultant fails to fully indemnify, defend (with City's choice of legal counsel), and hold City harmless from any legal action brought to compel such release; and/or (2) a final and non-appealable order by a court of competent jurisdiction requires that City release such information. 3.6.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement. 3.6.5 [Reserved] 3.6.6 Indemnification. 3.6.6.1 To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing and selected from Consultant's insurance carrier's panel counsel), indemnify and hold the City, its officials, officers, employees, volunteers, agents, and representatives free and harmless from any and all third party 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, to the extent arising out of, pertaining to, or incident to any negligent acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subconsultants or agents in connection with the performance of the Consultant’s Services, the Project or this Agreement, including without limitation the payment of all expert witness fees, attorney’s fees and other related costs and expenses except such loss or damage caused by the sole or active negligence or willful misconduct of the City. Consultant's obligation to indemnify shall survive expiration or termination of this Agreement and shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, volunteers, or representatives. Notwithstanding any provision of law to the contrary, Consultant shall have the right to control the defense and settlement of any action for which indemnification is sought, provided that it shall not enter into any settlement that requires an admission of wrongdoing by any indemnitee without that indemnitee’s approval. Consultant’s obligations under this Agreement are contingent upon timely receipt of notice of the claim for which indemnification is sought, such that defense of the claim is not prejudiced, and the reasonable assistance of the indemnitee in connection with the defense of the claim. 3.6.6.2 If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance as a “design professional” (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 252 Contract No. C46680 limited to claims to the extent that they arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon agreement of parties or Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault. 3.6.7 Entire Agreement. This Agreement contains the entire agreement of the Parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. 3.6.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 3.6.9 Time of Essence. Time is of the essence for each and every provision of this Agreement. 3.6.10 City's Right to Employ Other Consultants. City reserves right to employ other consultants in connection with this Project. 3.6.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 3.6.12 Assignment; Subcontracting. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, , which shall not be unreasonably delayed or withheld.. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Consultant shall not subcontract any portion of the Services required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 3.6.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Consultant include all personnel, employees, agents, and subconsultants of Consultant, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, volunteers and representatives except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 3.6.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 3.6.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise. 3.6.16 No Third-Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 253 Contract No. C46680 3.6.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6.18 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 3.6.19 Authority to Enter Agreement. Consultant has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 3.6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 3.6.21 Survival. All rights and obligations hereunder that by their nature are to continue after any expiration or termination of this Agreement, including, but not limited to, the indemnification obligations, shall survive any such expiration or termination. SIGNATURES ON NEXT PAGE] DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 254 Contract No. C46680 SIGNATURE PAGE TO PROFESSIONAL SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND INTERWEST CONSULTING GROUP, 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 INTERWEST CONSULTING GROUP, INC. By:______________________________________ PAUL MESCHINO PRESIDENT By:______________________________________ DAVID KNIFF ASSISTANT SECRETARY MN DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 255 Contract No. C46680 Exhibit “A” EXHIBIT "A" SCOPE OF SERVICES Project Objectives This planning effort will focus on evaluating existing and potential land uses; analyzing circulation and infrastructure conditions; and developing land use regulations, implementation strategies and objective design guidelines to encourage appropriately scaled development within the project area. The primary objectives to be achieved through the UNSP update are: Consistency with General Plan Land Use and Circulation Element or consider making the Specific Plan the effective land use document over the project area. Engage and inform the public and existing Plan area residents about transit-oriented design concepts, potential updated development standards and the UNSP update process generally through a comprehensive community involvement strategy. This strategy shall gather significant resident input from a variety of Palm Desert residents and incorporate this input into the UNSP Update policies and design guidelines. Revise the land use plan and policy framework to transition from significant commercial use requirements to increased housing density and development, while also allowing other neighborhood supportive uses such as retail and office mixed-use throughout the Plan area. Improvement of motorized, non-motorized, and transit connectivity between the Plan Area, and existing and future commercial and residential areas (and circulation infrastructure) in and adjacent to Palm Desert city boundaries (as feasible). Development and implementation of objective urban design standards which promote walkable and livable environments, compatible with the surrounding and existing development within the Plan area. Develop subdivision standards that promote walkable environments and incorporate policies of the General Plan. Prepare any necessary addenda or supplements to complete the CEQA impact analysis, building on the adopted Environmental Impact Report, as appropriate. GENERAL The consultant shall prepare amendments to the UNSP in accordance with Government Code Section 65450 et. seq. The proposal should address all studies, activities, and disciplines necessary to complete the amendment. Consultant responsibilities are those listed below which are not exhaustive. The City encourages innovation in concept, design and implementation. It is not intended that the plan include construction level engineering and design; however, the work must be of adequate detail to evaluate needs, capacity, and cost. Assemble and review existing information and data. Develop new information and data to support the update. Present background information and data, either within the plan document, or as a separate compendium. The consultant’s recommendation on the most effective approach is requested. All information should be made available in electronic format suitable for display on the City’s web site. Prepare all text, illustrations and maps contained in the Amendment. Provide administrative draft(s) for internal City review, a screen check draft, a public review draft, and final documents reflecting all modifications directed by the City. Provide documents in sufficient quantity for review by City officials, property owners and for public DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 256 Contract No. C46680 Exhibit “A” circulation, and provide all materials in an electronic format suitable for publication on the City’s website. TASK 1: PROJECT KICK-OFF The consultant(s) and City staff will meet to review and finalize the work scope and project schedule. The meeting will include a discussion of project goals, opportunities and constraints, provision of relevant background information and documents for the existing conditions analysis, arrangement of informational meetings with relevant city staff members, development of the community engagement strategy, and project management. Deliverables: 1.1: Project kick-off meeting with City staff 1.2: Memorandum summarizing the meeting (Word and PDF format) TASK 2: COMMUNITY ENGAGEMENT STRATEGY AND OUTREACH The City is seeking to engage community participation in the UNSP update process. City staff and the consultant(s) will develop a community engagement strategy that will focus on outreach to, and inclusion of key stakeholders including residents, business owners, and property owners. The strategy must include various forms of engagement to increase levels of community participation. One open house/community workshop must be held as part of this Task. The purpose of the meetings is to understand the community’s vision, with a focus on new residential communities in the UNSP area, recognize attitudes surrounding what land uses and development intensity should be included in the plan, and to solicit input on opportunities, constraints, and potential changes for the area. The consultant will be responsible for utilizing tools and developing a process to understand community preferences within the project area. Use of photo simulations and development prototypes to help identify preferences should be employed, as well as community asset mapping, allowing the community to identify concepts for improving/transforming the area. The community input will assist in guiding the development of the two land use alternatives. The consultant will lead these meetings, present plan area existing conditions and opportunities, and receive feedback from community members regarding information presented. Webpage The consultant will develop content and provide background and meeting information, reports and maps related to the project for a project specific webpage. The project webpage will be part of the City’s website (rather than a separate, outside website linked to the City’s). City staff will post information and keep the site current, with updated content provided by consulting staff. Deliverables: 2.1: Community Engagement Strategy, includes components as described above 2.2: Visualization tools, including renderings and visual simulations (physical and electronic format) DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 257 Contract No. C46680 Exhibit “A” 2.3: Project webpage content and materials 2.4: Community Meeting (including agenda, attendance, meeting materials) 2.5: Summary of Community Meeting 2.6: Potential supplementary meetings with City Staff and relevant stakeholders TASK 3: OPPORTUNITY SITE ANALYSIS AND ALTERNATIVE LAND USE ANALYSIS Following the initial meetings and outreach, the consultant shall develop the land use alternatives. The scenarios should be developed to support bus transit as well as to facilitate pedestrian and bicycle access. Alternatives should promote development of healthy, walkable neighborhoods and enhance opportunities for residents to easily access services and facilities throughout the Plan area and beyond. Changes to development standards or incorporation of form-based code may be considered. The alternatives should consider information prepared through the planning process and from the community outreach. Commercial, office, residential, open space, and mixed-use land uses should be thoughtfully and strategically placed to maximize community connectivity and create a level of synergy between adjacent single-family residential neighborhoods. The alternatives should consider information generated through previous analysis, community outreach, and TAC feedback. Each alternative must address: A mix of housing units that aligns with the City’s RHNA and Housing Element. Distribution and evaluation of proposed new uses, including affordable residential units by type and non-residential square footage by type and a planned regional park. Roadway design alternatives to support the proposed uses and circulation, including sidewalk width, public amenities/furniture, on-street parking and curb management, including placemaking concepts. A transportation analysis shall be prepared for each alternative comparing how each addresses connectivity to services, schools, jobs, and transit. The chosen alternative will include an intersection Level of Service (LOS) and Vehicle Miles Travelled (VMT) analysis for Palm Desert General Plan consistency purposes and impact analysis under CEQA. A report and maps describing and analyzing the alternatives will be prepared to quantify development potential in terms of housing units, non-residential floor area, population, and employment. Projected population and jobs for each alternative shall be included. Presentation of Land Use and Circulation Alternatives: The consultant will present the alternatives to the staff for review, feedback, and possible refinement prior to presentation at a public meeting. At that meeting, the consultant shall utilize interactive techniques to understand participants’ preferences. This may result in a clear preference for one alternative or in a hybrid concept which combines components of each. Based upon input received, the consultant shall develop a preferred land use and circulation alternative which will serve as the basis for the Specific Plan Update. This Plan will be presented to staff, and refinements will be made to the preferred alternative prior to its presentation to the Planning Commission and/or City Council. Input received at this meeting will DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 258 Contract No. C46680 Exhibit “A” be used to refine the alternative and develop the preferred alternative. Deliverables: 3.1: Display graphics illustrating the alternative land use and circulation plans with additional sketches, visual simulations, elevations, and street sections needed to convey each alternative 3.2: Land Use and Circulation Alternatives Report 3.3: Quantified development potential and traffic analysis for preferred alternative (meeting CEQA requirements) 3.4: Community Meeting notice/agenda 3.5: Community Meeting, including attendance and facilitation, and all necessary meeting materials 3.6: Community Meeting summary TASK 4: PREFERRED LAND USE ALTERNATIVE Based on input received at community/committee meetings, as well as input received from other methods of community outreach, the consultant(s), in consultation with City staff, will develop a preferred land use alternative which will serve as a basis for the draft Specific Plan update. The preferred alternative will be presented to staff for review and feedback. The community will also be asked to respond to the preferred plan. Input received will be used to refine the alternative and develop the draft Specific Plan update. Deliverables: 4.1: Preferred land use plan visuals, including sketches and elevations 4.2: Preferred land use plan report, including quantified development potentials 4.3: Planning Commission and Architectural Review Commission Joint Public Workshop, including attendance and facilitation, and all necessary meeting materials 4.4: Meeting 3 summary TASK 5: INFRASTRUCTURE DEVELOPMENT AND SERVICE PLAN Working with the staff, the consultant shall prepare a conceptual Infrastructure Development and Services Plan to determine infrastructure needed to support land uses and improvements identified in the preferred alternative, adequate to meet the needs of CEQA. The analysis shall describe infrastructure conditions and improvements needed to support the plan in terms of water, wastewater, storm drainage (including low impact development), electricity, gas, cable, telephone service, internet/fiber, transportation, greenways, and parks. Distinction shall be made between improvements needed for existing versus future development so future costs can be appropriately attributed. In addition, increased demand for public services such as transit, schools, police, and fire required to serve the Plan area should be identified. The Plan shall: DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 259 Contract No. C46680 Exhibit “A” Analyze and summarize existing and needed service capacities. Assess the services envisioned in the UNSP area and those that would be needed with the preferred alternative. Provide descriptions of needed public improvements, including street improvements to City standard, upsizing of water and wastewater mains and storm drains, undergrounding utilities, and development costs. Provide descriptions of needed improvements associated with private utilities, such as natural gas, electric, phone, cable, and internet connectivity. Provide descriptions of any changes required to public services and facilities. Provide general cost estimates and phasing recommendations for needed improvements and service systems within the UNSP area. Deliverables: 5.1: Infrastructure Development and Services Report TASK 6: DRAFT UNIVERSITY NEIGHBORHOOD SPECIFIC PLAN UPDATE The consultant shall prepare a draft updated Specific Plan in compliance with state law. The updated Specific Plan will serve as the City’s long range, comprehensive land use, circulation, and implementation plan for guiding development within the Plan boundary. The Specific Plan shall contain the following components: Planning Process. Description of the process to develop the Plan and the role the public played in creating the Plan. Land Use/Housing. Description of land use designations, including number of units, potential square footage of mixed use and or neighborhood serving retail development, and employment generating land uses. Population and job projections shall be included. Changes to development standards or implementation of form-based code must be considered. Transportation. Description of circulation for motor vehicles, transit, bicycles, and pedestrians. New streets, paired one-way streets, paths, and connections shall be included. Policies regarding complete streets and the circulation element of the General Plan shall also be included. Public Services. Includes information about services and infrastructure needed to implement the updated Plan. This should include specific policies regarding utilities, public safety, parks. Access and Connectivity Plan. Addresses access to and through the Plan area with specific focus on connecting housing, commercial, and retail with the Plan area to existing neighborhoods by all transportation modes including walking, bicycling, driving, and transit. Implementation and Financing Plan. Identifies actions and strategies for Plan implementation, including a rough budget estimate. Include infrastructure improvements needed for Plan implementation. An administrative draft Specific Plan shall be prepared for review by City staff. Comments received shall be incorporated into the public review draft Specific Plan. The draft Specific Plan Update shall then be presented to the Planning Commission at a public workshop then to City Council at a Study Session to present the final draft and accept any remaining comments and requested changes. DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 260 Contract No. C46680 Exhibit “A” Deliverables: 6.1: Administrative Draft Specific Plan 6.2: Public Review Draft Specific Plan 6.3: Planning Commission Workshop, including attendance and facilitation, and all necessary meeting materials 6.4: Workshop Summary 6.5: City Council Study Session, including attendance and facilitation, and all necessary meeting materials 6.6: City Council Study Session summary TASK 7: GENERAL PLAN AND ZONING AMENDMENTS Consultant(s) and City staff will evaluate properties within the project boundaries to determine which sites would need General Plan land use amendments and UNSP rezoning based on the preferred alternative developed in Task 5. Deliverables: 7.1: List of properties, and associated maps, requiring General Plan land use designation amendments, and to what designation they will be amended (maps must be compatible with ESRI Geographic Information Systems) 7.2: List of General Plan text amendments 7.3: List of properties, and associated maps, requiring UNSP rezoning, and to what designation they will be amended (maps must be compatible with ESRI Geographic Information Systems) 7.4: List of Zoning Code text amendments TASK 8: ENVIRONMENTAL ANALYSIS The project consultant must prepare an Initial Study which will analyze the broad-scale environmental impacts of the updated Specific Plan. Additionally, Consultant(s) will be responsible for the preparation of a Negative Declaration, Mitigated Declaration, or Environmental impact Report (EIR) Or Addendum as determined by the Initial Study. Additional deliverables associated with this Task are dependent on the findings from the Initial Study and should be included as an optional item in proposal. Consultant must review the adopted and certified UNSP Environmental Impact Report (EIR) and determine the appropriate process for conducting the UNSP update, in a manner consistent with the provisions of the California Environmental Quality Act (CEQA). The consultant shall also prepare responses to comments received during the public review period, a mitigation monitoring and reporting program, and statement of overriding considerations, as necessary. At a minimum, the environmental analysis shall evaluate all necessary environmental factors and shall considered the following areas: DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 261 Contract No. C46680 Exhibit “A” Land Use Consistency and Compatibility. The analysis will describe existing land use and development patterns and evaluate the proposed project’s consistency with adopted City plans and policies. Population, Housing and Employment. The environmental analysis will analyze projected population, housing and employment impacts of the draft Specific Plan update. Transportation and Circulation. The environmental analysis will define and establish both the Transit Priority Area(s) within the Plan area and Vehicle Miles Traveled (VMT) standards as recommended by the Governor’s Office of Planning and Research for residential, office and retail development and in accordance with City adopted guidelines. The analysis will further analyze VMT per capita associated with the proposed land uses within the Plan area. The analysis shall also evaluate the Level of Service (LOS) impacts of the amendment. Air Quality. The environmental analysis will address the project’s impact on air pollutants and their precursors as well as localized carbon monoxide impacts utilizing the appropriate air quality modeling tools. The analysis will address both operational, including vehicular emissions (long term), and construction level (short term) impacts on local and regional air quality. Energy/Climate Change. Changes in energy consumption anticipated through implementation of the draft Specific Plan update shall be analyzed. Greenhouse gas emissions anticipated from the project shall be included. The environmental analysis shall analyze how development anticipated by the Specific Plan will be affected by climate change and how implementation of the Plan will affect climate change. While analysis of this topic is evolving, this environmental analysis should include the most current thinking and practice regarding impacts of greenhouse gas emissions. Water Usage. Evaluate if a water supply verification/water supply assessment is required based on any potential increases in total dwelling units or employment. Cultural Resources. Evaluate cultural and tribal resources within the specific plan area and coordinate required tribal consultation pursuant to SB 18, and/or AB 52. In addition, the environmental analysis shall include discussion of growth inducing and cumulative impacts, and significant, unavoidable impacts, if any and as needed. If required, pursuant to CEQA, the consultant will facilitate a scoping meeting and a public hearing on the environmental analysis at the Planning Commission. The consultant shall prepare responses to comments received during the public review period and at the public hearing on the environmental analysis. The consultant shall coordinate the printing of all final environmental documents. Deliverables: 8.1: Initial Study and any appendices (Word & PDF) 8.2: Notice of Preparation/Scoping Meeting (Word & PDF format) 8.3: Public scoping meeting for environmental analysis preparation 8.4: Administrative draft environmental analysis, (Word and PDF format) 8.5: Draft environmental analysis, (Word and PDF format) 8.6: Final environmental analysis, including draft environmental analysis and response to comments (Word & PDF format) DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 262 Contract No. C46680 Exhibit “A” TASK 9: PRESENTATION AND ADOPTION OF DRAFT UNSP AND ENVIRONMENTAL ANALYSIS The consultant, in collaboration with City staff, will prepare the Planning Commission and City Council packet materials, including the staff report, PowerPoint presentation, resolutions and ordinances, and present the draft Specific Plan update, and any necessary environmental analysis, at public hearings before the Commission and Council. The consultant shall make any final revisions to the Specific Plan and environmental analysis based on changes adopted by the City Council. Deliverables: 9.1: Planning Commission staff report and PowerPoint presentation 9.2: Presentation of draft UNSP update at Planning Commission public hearing 9.3: City Council staff report and PowerPoint presentation 9.4: Presentation of draft UNSP update at up to two (2) City Council public hearings 9.5: Adopted Specific Plan, electronic copy in Word and PDF format (graphics/maps shall be prepared in a graphics file in a format that is editable by the City). DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 263 Contract No. ____________ Exhibit “B” EXHIBIT "B" SCHEDULE OF SERVICES The term of this Agreement shall be from NOVEMBER 16, 2023, to DECEMBER 31, 2024, unless earlier terminated as provided herein. Consultant shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. SEE ATTACHED PROPOSAL DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 264 Contract No. ____________ Exhibit “C” EXHIBIT "C" COMPENSATION SEE ATTACHED COST PROPOSAL DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 265 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 266 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 267 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 268 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 269 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 270 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 271 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 272 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 273 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 274 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 275 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 276 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 277 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 278 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 279 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 280 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 281 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 282 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 283 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 284 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 285 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 286 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 287 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 288 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 289 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 290 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 291 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 292 DocuSign Envelope ID: 67B44BE5-9E8A-45F0-B937-805BE2401DC3 293 294 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Brad Chuck, Public Works Superintendent Shawn Muir, Community Services Manager SUBJECT: AWARD CONTRACT TO VINTAGE LANDSCAPE, OF BERMUDA DUNES, CA, FOR LANDSCAPE MAINTENANCE AREA NO. 16 AND ADDITIONAL WORK (PROJECT NO. MLS00016) RECOMMENDATION: 1. Award a maintenance services agreement with Vintage Landscape of Bermuda Dunes, California, for Landscape Maintenance Area No. 16 at an annual cost of $504,600, subject to CPI increases, for a three-year term, with two one-year extension options. 2. Authorize additional work for street maintenance and landscape services in an annual amount not to exceed $100,920. 3. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 4. Authorize the City Manager to execute agreement, amendments, changes, and all documents necessary to effectuate this action, in accordance with Section 3.30.170 of the Palm Desert Municipal Code. BACKGROUND/ANALYSIS: A Landscape Maintenance Area (LMA) is a defined area in which multiple maintenance zones are grouped together under a single contract to improve coordination, reduce costs, and ensure consistent service delivery. Landscape Maintenance Area No. 16 (LMA 16) includes the monthly landscape maintenance of Cahuilla Park, Homme Adams Park, Freedom Park, University Park, Joe Mann Park, Hovley Soccer Park, Palm Village Park, Ironwood Park, Washington Charter Park, Haystack Drainage Channel, Smoke Tree Natural Area, Robert A. Spiegel , University Park, and Freedom Park Community Gardens. The current monthly maintenance contract for LMA 16 is set to expire on June 30, 2025. Therefore, on March 12, 2025, the project was advertised for proposals through the City’s bid management portal OpenGov (2025-RFP-148), and on April 15, 2025, received seven proposals. A committee evaluated the proposals based on clarity, quality of the work plan, experience, references, and cost. T he proposals were ranked as follows: VENDOR LOCATION RANKING BID AMOUNTS ADDITIONAL WORK (20%) TOTAL AMOUNT Vintage Landscape Bermuda Dunes, CA 1 $504,600.00 $100,920.00 $605,520.00 Mariposa Landscapes Irwindale, CA 2 $500,388.48 $125,097.12 $625,485.60 Excel Landscape Corona, CA 3 $947,880.00 $236,970.00 $1,184,850.00 Universal Green Desert Hot Springs, CA 4 $504,960.00 $126,240.00 $631,200.00 Southwest Landscape Indio, CA 5 $811,908.10 $202,977.03 $1,014,885.13 Urban Habitat Palm Desert, CA 6 $467,532.00 $116,883.00 $584,415.00 Kirkpatrick Landscaping Bermuda Dunes, CA 7 $838,368.00 $209,592.00 $1,047,960.00 295 City of Palm Desert Award Contract for Landscape Maintenance Area 16 Page 2 of 2 Based on the review, staff recommend awarding a contract to Vintage Landscape for a three - year term beginning July 1, 2025, with an option for two one-year extensions. The base contract includes monthly maintenance tasks such as raking, weed abatement, pruning, irrigation inspections, trash and debris removal, and other routine services performed according to a City - provided frequency schedule. Vintage Landscape submitted the most realistic and comprehensive pricing in alignment with the scope of work. Based on the City's experience and industry standards, some of the lower-cost proposals raised concerns about their ability to meet the service levels of this community. Vintage Landscape’s proposal demonstrated a clear understanding of the required tasks, appropriate staffing, and consistent quality, making them the most qualified and reliable choice. The funding request also includes additional work in the amount of $100,920. This allocation ensures the contract limit is not exceeded while allowing flexibility to address unforeseen but essential landscape maintenance and street maintenance needs. Additional work includes, but is not limited to, irrigation and lighting repairs, replacement of trees or shrubs, pest control, damage from accidents or vandalism, sign replacements, and minor enhancement projects as needed. When extra work arises, the vendor responsible for maintaining the designated LMA is typically the most cost-effective and responsive option, as their staff is already onsite. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: The annual maintenance budget for Landscape Maintenance Area No. 16 is included in the Public Works Department’s proposed operations budget for Fiscal Year 2025 -26 under the Parks, Community Gardens, and Haystack Channel R/M Accounts. The table below outlines the maintenance budget and cost for LMA 16: Description Proposed Budget Contract Amount Balance Parks - 1104611-4332001 $550,000 Comm Gardens - 1104611-4339100 $40,000 Haystack - 2764374-4332000 $77,500 LMA 16 – Monthly Maintenance $504,600 LMA 16 – Extra Work $100,920 Total $667,500 $605,520 $61,980 The remaining balance may be used as needed for other services. Funding for this agreement in future fiscal years will be subject to City Council approval of the related budget requests. ATTACHMENTS: 1. Maintenance Services Agreement 2. Payment and Performance Bonds 3. Proposal 4. LMA 16 Vicinity Map 296 Contract No. ___________ 1 Revised 01-2024 BBK 72500.00001\32374943.1 CITY OF PALM DESERT MAINTENANCE SERVICES AGREEMENT 1. Parties and Date. This Agreement is made and entered into this 22nd day of May, 2025, 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 Vintage Landscape, a Corporation, with its principal place of business at 78755 Darby Road, Bermuda Dunes, CA 92203 ("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: Landscape Maintenance Area No. 16 Project Project No. MLS00016 (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 July 1, 2025, to June 30, 2028, 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 297 Contract No. ___________ 2 Revised 01-2024 BBK 72500.00001\32374943.1 Agreement. City retains Contractor on an independent contractor basis and not as an employee. Any personnel performing the Services under this Agreement on behalf of Contractor shall not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance. 3.2.2 Schedule of Services. Contractor shall perform the Services in a prompt and timely manner in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services. 3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City. 3.2.4 City’s Representative. The City hereby designates Randy Chavez, Director of Public Works , 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 Kyle Gritters, CEO, 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 298 Contract No. ___________ 3 Revised 01-2024 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 and Liquidated Damages. 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. Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of Two Hundred Fifty Dollars ($250.00) per day for each and every calendar day of delay beyond the Performance Time or beyond any completion schedule or Project milestones established pursuant to this Agreement. 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 299 Contract No. ___________ 4 Revised 01-2024 BBK 72500.00001\32374943.1 applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted. 3.2.10.4 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the California Air Resources Board (CARB). Contractor shall specifically be aware of the CARB limits and requirements’ application to “portable equipment”, which definition is considered by CARB to include any item of equipment with a fuel-powered engine. Contractor shall indemnify City against any fines or penalties imposed by CARB or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement. 3.2.10.5 Water Quality Management and Compliance. To the extent applicable, Contractor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); laws, rules and regulations of the Environmental Protection Agency and the State Water Resources Control Board; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor to penalties, fines, or additional regulatory requirements. 3.2.11 Insurance. 3.2.11.1 Minimum Requirements. Without limiting Contractor’s indemnification of City, and prior to commencement of the Services, Contractor shall obtain, provide, and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. (A) General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (B) Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non- 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. 300 Contract No. ___________ 5 Revised 01-2024 BBK 72500.00001\32374943.1 (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) Fidelity Coverage. (Reserved) (F) Cyber Liability Insurance. (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. 301 Contract No. ___________ 6 Revised 01-2024 BBK 72500.00001\32374943.1 (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. 302 Contract No. ___________ 7 Revised 01-2024 BBK 72500.00001\32374943.1 (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 t he 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 303 Contract No. ___________ 8 Revised 01-2024 BBK 72500.00001\32374943.1 be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. 3.2.13 Bonds. 3.2.13.1 Performance Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City. 3.2.13.2 Payment Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City. 3.2.13.3 Bond Provisions. Should, in City’s sole opinion, any bond become insufficient, or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within ten (10) days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel any required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alteration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Contractor fails to furnish any required bond, the City may terminate this Agreement for cause. 3.2.13.4 Surety Qualifications. Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The surety must be a California-admitted surety with a current A.M. Best’s rating no less than A:VIII and satisfactory to the City. If a California-admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City. 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 304 Contract No. ___________ 9 Revised 01-2024 BBK 72500.00001\32374943.1 shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of three (3) years from the date of final payment under this Agreement. 3.2.15 Work Sites. 3.2.15.1 Inspection of Site. Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money–will be allowed as to such matters after commencement of the Services. 3.2.15.2 Field Measurements. Contractor shall make field measurements, verify field conditions, and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract, including any plans, specifications, or scope of work before commencing Services. Errors, inconsistencies, or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition. 3.2.15.3 Hazardous Materials and Differing Conditions. Should Contractor encounter material reasonably believed to be polychlorinated biphenyl (PCB) or other toxic wastes, hazardous substances and hazardous materials as defined in California state or federal law at the site which have not been rendered harmless, the Contractor shall immediately stop work at the affected area and shall report the condition to the City in writing. The City shall contract for any services required to directly remove and/or abate PCBs, hazardous substances, other toxic wastes, and hazardous materials, and shall not require the Contractor to subcontract for such services. The Services in the affected area shall not thereafter be resumed except by written agreement of the City and Contractor. 3.2.16 Loss and Damage. Contractor shall be responsible for all loss and damage which may arise out of the nature of the Services agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Services until the same is fully completed and accepted by City. 3.2.17 Warranty. Contractor warrants all Services under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Agreement, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its 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 305 Contract No. ___________ 10 Revised 01-2024 BBK 72500.00001\32374943.1 defective work shall be reinstated for an additional one (1) year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers, and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand. 3.3 Fees and Payments. 3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total annual compensation shall not exceed Five Hundred Four Thousand, Six Hundred Dollars ($504,600.00) without written approval of the City Council or City Manager, as applicable. The City may request additional work at the same rates and manner as set forth in this Agreement on an as needed basis as specified in Section 3.3.5. Contractor shall not perform Extra Work, presume Extra Work will be guaranteed, nor be compensated for Extra Work without written authorization from the City. Work performed as Extra Work shall not exceed the annual amount of One Hundred Thousand Nine Hundred Twenty Dollars ($100,920.00). Contractor shall not be reimbursed for any expenses unless authorized by 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 Retainer. (Reserved) 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. 306 Contract No. ___________ 11 Revised 01-2024 BBK 72500.00001\32374943.1 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. 307 Contract No. ___________ 12 Revised 01-2024 BBK 72500.00001\32374943.1 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: Vintage Landscape 78755 Darby Road Bermuda Dunes, CA 92203 ATTN: Kyle Gritters, CEO City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 ATTN: Randy Chavez, Director of Public Works Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 3.5.2 Indemnification. 3.5.2.1 Scope of 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 308 Contract No. ___________ 13 Revised 01-2024 BBK 72500.00001\32374943.1 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 Ag reement, 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 309 Contract No. ___________ 14 Revised 01-2024 BBK 72500.00001\32374943.1 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. 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. 310 Contract No. ___________ 2 Revised 01-2024 BBK 72500.00001\32374943.1 3.5.18 Federal Provisions. (Reserved) [SIGNATURES ON NEXT PAGE] 311 Contract No. ___________ Revised 01-2024 BBK 72500.00001\32374943.1 SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND VINTAGE LANDSCAPE 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 hris Escobedo VINTAGE LANDSCAPE, A CORPORATION Contractor’s License Number and if applicable City Clerk QC: _____ Contracts QC: _____ Insurance: _____ Initial Review _____ Final Approval _____ Bonds (Only if above $25,000) 312 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 EXHIBIT “A” SCOPE OF SERVICES 1. SCOPE OF WORK The work to be done consists of furnishing all labor, materials, necessary tools and machinery, supervision, and all utility and transportation services required to provide landscape maintenance services for City of Palm Desert Landscape Maintenance in accordance with the Contract Documents at the following locations: 2. LOCATIONS 2. 1 Joe Mann Park is located at 77-810 California Avenue, on the north side of California Avenue between Warner Trail and Washington Street. Improvements consist of restrooms and adjacent hardscape, covered picnic area, tot playground, turf open space, dog park, volleyball court, basketball court, rose garden, paved parking lot and parking lot planters. 2.2 Freedom Park is located at 77-400 Country Club Drive. This area includes turf, irrigation, trees, planter areas, community gardens, playgrounds, dog park, volleyball courts (2), basketball courts (3), Pickleball courts (8), and sports fields (baseball, soccer, and Ronald Reagan Fields). 2.3 Stonebridge Easements include the north-south access road off Tamarisk Row Drive from Brisa Drive north to the railroad tracks. (The access road lies between the existing Palm Desert Regency Estates storage yard to the west and the established Stonebridge perimeter landscape to the east.) The Stonebridge Easements also include the area between the Stonebridge north property line and the railroad property, from the north-south access road on the west, east to Freedom Park. 2.4 Hovley Soccer Park is located at 74-735 Hovley Lane East, on the south side of the street, west of Corporate Way. Maintenance does not include the CVWD well site at the northwest corner of the park. The southern perimeter of the park runs along Avenue 42 from Hovley Gardens Drive West to the eastern block wall and includes the planters along the CVWD well site and the vacant planter along the south block wall. 2.5 University Park Dog Park is located at 74-802 University Park Drive, at the west intersection of University and College Drive. This area includes turf, planter areas, shade structures and a restroom. 2.6 University Park East is located at 74-902 University Park Drive, at the east intersection of University and College Drive. This area includes restrooms, playground(s), basketball court, turf and planter areas. 2.7 Ironwood Park is located at 47-800 Chia Drive, on the east side of Chia Drive between Haystack Road and Loma Vista Lane and is an improved natural park. Improvements consist of restrooms, covered picnic areas, tot playground, open turf area, paved parking lot, enhanced natural landscape with trails, planter areas with irrigation, sidewalks, and other hardscape areas. 2.8 Washington Charter School Park is located at 45-768 Portola Avenue, and on the corner of Chicory Street and Lantana Avenue in the east quadrant of the Washington Charter School property. Improvements to be maintained in this contract include all turf area inside the perimeter fence, tot playground and adjacent rubber and hardscape surfaces, basketball court and perimeter planters and sidewalks along Chicory Street and Lantana Avenue. 313 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 2.9 Cahuilla Park is located at 45-825 Edgehill Drive, on the west side of the storm channel at Edgehill Drive and Green Way, and is a natural park with minor improvements, and a restroom. Improvements include a few picnic tables and irrigation system for selective trees and plants. Two tennis courts are available for public use. 2.10 Robert A. Spiegel Community Gardens are located on the west side of San Pablo Avenue between Santa Rosa Way and Royal Palm Drive. Improvements consist of restroom, planter areas outside perimeter fence, maintaining all surfaces inside perimeter fence, paved parking lot and covered picnic areas. 2.11 Homme/Adams Park is located at 72-500 Thrush Road, along the Palm Valley storm channel west of Highway 74 at the terminus of Thrush Road, starting 100 feet south of Southcliffe Road to the north park boundary, which includes upper park shelter area. It runs along the west side of the split rail fence. This is a 24+/- acre natural area. Improvements include two park shelters, trashcans, parking areas and various trails. Maintenance will include park shelter cleaning, litter removal, changing of trashcan liners, maintaining small irrigation system that irrigate palm trees, and removing weeds and volunteer plant material not native to the area. 2.12 Palma Village Park is located on the corner of De Anza Way and San Carlos Avenue Improvements include a tot lot, sand volleyball, turf and planter areas with irrigation, a restroom, basketball court, picnic tables, benches and trash cans. 2.13 Smoketree Natural Area is located on the north side of Haystack Road from Heliotrope Drive east to Portola Avenue and Portola Avenue north to Marrakesh Access Road driveway. Included in the Smoke tree Natural Area is the natural open space located at the southwest corner of Haystack Road and Portola Avenue that encompasses approximately an additional 81,000 square feet. 2.14 Haystack Drainage Channel is located on the north side of Haystack Road, from Highway 74 to the extent of improvements east of Heliotrope Drive, and on Highway 74 from Haystack Road to the Deep Canyon Tennis Club property line. 2.15 Park A is Located at 74-201 Harper St and the corner of Andrews Dr, There is a covered picnic area, playground, turf areas and some planter areas. 2.16 Park B Is Located at 74-480 Collage Dr on the corner of Collage and Pacific the is a turf areas and with some planning areas 2.17 Park D 75322 Radford The Park is located on the Corner of Radford and Wild Song Dr. This pocket park has turf trees and desert planting. 2.18 Park E is located at 75-256 Tubman. This pass-through park has community garden boxes along with turf, trees and shrubs. 2.19 Bump and Grind Trail Head. 72-447 ½ Painter Path the Trail head consist of a shade structure, benches bike racks and drinking fountains. 3. GENERAL SERVICES TO BE PREFORMED 3.1 Contractor shall provide the necessary manpower and equipment to maintain the areas listed in the specified locations, at the level of maintenance and service defined by City of Palm Desert. The work shall include, but is not limited to, proper horticultural practices, as defined in the City of Palm Desert Landscape Maintenance Manual, maintenance of all landscape materials and hardscape structures as designated in the following specifications and per the Frequency Schedule. 314 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 3.2 Contractor shall provide appropriate equipment and labor for the execution of all maintenance 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. 3.3 Contractor shall provide fully trained personnel in all phases of landscape maintenance, tree maintenance, and irrigation maintenance and operation. Contractor shall provide personnel capable of effective verbal 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. 3.4 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. It is Contractor’s responsibility to identify to City of Palm Desert unacceptable conditions with plant material, trees, and/or irrigation systems at the time of the walk -through. At City of Palm Desert’s discretion, unacceptable conditions may be resolved with the current (outgoing) contractor or with the successor Contractor on a “one-time only, extra-work” basis. After such corrections are made, the successor Contractor will be responsible for all contractual services. 3.5 Contractor shall replace, at no additional cost to City of Palm Desert for labor or materials, any plant or tree that dies beginning 30 days from commencement of the contract throughout the term of the contract, if such plant or tree demise is due to neglect, lack of maintenance, or otherwise improper care. 3.6 Contractor shall remove debris caused by all maintenance activities, including pruning and tree maintenance, on the same working day that such debris is accumulated. 3.7 Contractor shall provide the labor and equipment for the application of fertilizers and fertilizers with pre-emergent and post-emergent. Fertilizers with pre-emergent and post-emergent will be supplied by Contractor and reimbursed by the City of Palm Desert at actual cost plus 15% mark - up. City of Palm Desert reserves the right to purchase Standard fertilizer. The application of fungicides will be performed outside the scope of this contract. 3.8 Monthly reports for irrigation, green waste and pesticide application shall be submitted no later than the first Monday of each month, for the preceding month. Monthly payments will not be processed until all required reports are received. 3.8.1 The Irrigation Monthly Report shall include, but not necessarily be limited to, the following: date, irrigation technician identification, site identification, controller and valve identification, description of service and/or repair, statement of plant material condition as relates to water needs, and a section for general notes or comments. 3.8.2 The Green Waste Monthly Report submittal shall include the green waste facility tipping ticket. The tipping ticket shall be clearly legible and shall contain the name and address of the waste facility, the weight, and the City of Palm Desert’s name. 3.8.3 The Pesticide Application Monthly Report shall consist of a copy of the monthly report submitted to the Riverside County Agricultural Commissioner or, in the case of no pesticide applications made, a statement to that effect in the form of a letter or memorandum to City of Palm Desert. 4. SPECIFIC SERVICES TO BE PREFORMED 315 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 4.1 Plant Litter and Trash Control 4.1.1 Contractor shall remove and appropriately dispose of all plant litter (broken branches, broken limbs, excessive leaf-drops); trash and/or paper, cans, bottles, broken glass; dog droppings and any other out-of-place or discarded items. Plant litter includes plant debris caused by extreme temperatures or high winds. 4.1.2 Where trash cans and/or doggy stations are present, Contractor shall remove and dispose of their contents and replace the liners (City of Palm Desert may provide trash bags). Contractor shall wipe surfaces clean with a non-toxic cleaning solution. 4.2 Pest Control 4.2.1 Gophers will be controlled on an as-needed basis using City of Palm Desert-approved traps, within the scope of this contract. Ground squirrel control will be performed on an as-needed basis and is outside the scope of this contract. 4.2.2 Ants will be controlled on an as-needed basis and are included in the scope of the contract. Red Imported Fire ant control is outside the scope of this contract. If Red Imported Fire ants are encountered the Contractor shall report the discovery to the City of Palm Desert prior to the end of the workday. 4.2.3 Contractor shall immediately report any bee activity (swarms or hives) detected t o the City of Palm Desert. Bee removal is the responsibility of City of Palm Desert. 4.2.4 Aphids will be chemically controlled on oak trees in parking lots and along parkways. Fruit set will be chemically controlled on olive trees. These trees are located adjacent to parking lots, sidewalks, and hardscape areas designated for pedestrian traffic and use. Any recommended chemical treatment and the schedule for its application must be reviewed and approved in advance by City of Palm Desert. City of Palm Desert, at its discretion, may require from Contractor all Material Safety Data Sheets, pesticide labels, and Pesticide Control Advisor recommendations for any and all pesticide applications performed. Contractor will be responsible for the material and labor and perform this work as well for all posting as required by label and law. 4.2.5 Contractor shall provide control and/or eradication of all weeds, as needed. Areas to be weeded include: planters, gravel and decomposed granite areas, sidewalks, curbs, expansion joints, fence lines, drainage areas, cobble areas, bare areas, and the area around trees. 4.2.6 Mechanical and/or chemical methods of weed control are acceptable for annual and perennial weeds with the exception of Bermuda grass, nutsedge, and bindweed, which shall be controlled by chemical means only. 4.2.7 Contractor shall remove any debris generated by the weed control process after weeds have been sprayed and plant death has occurred. 4.2.8 Weeds in turf areas will be managed on an as-needed basis and shall be considered extra work. 4.3 Plant Maintenance 4.3.1 All plant material in the public right-of-way shall be maintained behind the curb line and/or sidewalk to allow for the safe passage of vehicles, pedestrians and/or the general public. 4.3.2 Dead flower stalks shall be pruned from plants at the conclusion of flowering. If plants (such as agaves) die after flowering, Contractor will remove the entire plant and, if needed, shall repair the irrigation and backfill the hole. There shall be no dead blossoms, stalks, branches or foliage left on an otherwise healthy plant for more than one month, unless otherwise directed by City of 316 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 Palm Desert and/or the contract documents. If offshoots are present, they will be left in place, and irrigation will be adjusted to ensure adequate water supply to the offshoots. 4.3.3 Dead or weather-damaged plant material shall be pruned or removed under direction from City of Palm Desert within one week of notification. 4.3.4 The City of Palm Desert encourages contractors to familiarize themselves with the City of Palm Desert’s “Landscape Maintenance Guidelines” book. The book, intended to serve as a visual guide to contractors, also provides pruning techniques and a calendar for ideal maintenance timing. The City of Palm Desert may, at its own discretion, alter timelines or techniques and supply additional reference materials as the City of Palm Desert deems necessary. 4.3.5 The plant material will be pruned as needed, to keep plant material to scale based on the planter size, plant species, plant location and for safety purposes. The City of Palm Desert will work with the Contractor to determine appropriate size for each plant species. In addition, the Contractor shall perform a yearly pruning to reduce the size and density of all shrubs and groundcovers, as directed by the City of Palm Desert. 4.3.6 On occasion, high-profile areas will be seeded with wildflowers. City of Palm Desert staff will identify these areas with Contractor. It shall be Contractor’s responsibility to maintain and preserve these wildflower population areas. Contractor shall be responsible for replacing any wildflowers disturbed or destroyed by any of Contractor’s maintenance activities. 4.3.7 Plant material installed by the Contractor shall be warrantied for a period of ninety days from the date of acceptance by the City’s Representative. 4.4 Tree Maintenance 4.4.1 All tree pruning shall be consistent with the current and applicable International Society of Arboriculture (ISA) guidelines, the American National Standards Institute (ANSI) standards, the City of Palm Desert's Landscape Maintenance Guidelines book and the Tree Pruning Ordinance. 4.4.2 Contractor shall perform safety and sucker pruning on all trees (including palms) eight feet (8) in height and under. All broadleaf and palm tree pruning will be performed outside this contract. Contractor shall prune fronds, flowers, and seed pods on all palms that have six (6) feet of brown trunk or less. City of Palm Desert may request that a Certified Arborist be on site when Contractor’s staff safety prunes trees. 4.4.3 Tree branches shall be pruned as needed for traffic and pedestrian safety. Sidewalk clearance will be eight (8) feet and the vehicular clearance fourteen (14) feet from grade. Trees must be maintained at seven (7) feet from playground equipment. Any broken, dead or detached limb is considered a hazard and upon notice from City of Palm Desert, Contractor must remove such limbs by close of business the same day. 4.4.4 Trees broken or damaged as a direct result of storm, wind, accident, vandalism or structural failure shall be pruned and/or removed, upon City of Palm Desert’s request to Contractor, within 24 hours of notification and shall be an extra to this contract. Any debris blocking roadways or parking areas shall be removed within one hour of notification to Contractor. Replacement of trees and plants caused by reasons not related to contractual maintenance shall be reimbursable as an extra cost. 4.4.5 Trees planted by the Contractor shall be warrantied for a period of one-year from the date of the acceptance by the City’s Representative. 4.5 Turf Maintenance - General 317 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 4.5.1 All turf areas must be mowed in a manner that provides for the adequate and safe use of each facility for its intended purpose. 4.5.2 Bermuda grass will be mowed at ¾” height during the active-growth period. 4.5.3 Rye grass will be mowed at ¾” height starting with its first cut after over-seeding and continuing until spring when the Bermuda grass becomes active. 4.5.4 Baseball and soccer athletic fields shall be mowed with reel mowers and vacuumed after each mowing if deemed necessary by City of Palm Desert. 4.5.5 Baseball and soccer athletic fields will be mowed on non-consecutive days per the Frequency Schedule. 4.5.6 All turf areas will be mowed weekly and may be mowed with rotary mowers; however, if City of Palm Desert deems that the finished turf surface is irregular, aesthetically unacceptable, or if it creates a potential public safety issue, City of Palm Desert will require the turf area to be mowed with a reel mower. Excess clippings will be raked, swept and/or vacuumed leaving a regular, clean, aesthetically acceptable and safe turf surface. Removal of clippings will be at no extra cost to the City of Palm Desert. 4.5.7 Detailing and edging of turf shall include chemical and/or mechanical detailing using a string trimmer or an edger around buildings, sidewalks, mow strips, paved areas, valve boxes, goal posts, light fixtures, fence lines, walls, along infield edges, behind backstops, drainage areas, and bare areas in planters. Only an edger shall be used on but not be limited to hardscape areas such as sidewalks and mow strips. All other areas may use an edger or string trimmer as appropriate and as approved by City of Palm Desert. 4.5.8 Contractor shall provide the labor and equipment for the application of fertilizers and fertilizers with pre-emergent(s) and post-emergent(s). Fertilizer and fertilizer with pre- emergent(s) and post-emergent(s) will be supplied by Contractor. Standard fertilizer may be supplied by City of Palm Desert. In the event Contractor supplies standard fertilizer, the City of Palm Desert will reimburse Contractor at actual cost plus 15% mark-up. The Contractor shall apply irrigation immediately following any fertilizer application to effectively wash the product into the soil. Contractor shall also post notifications as required by the product labeling and law. 4.5.9 Mechanical core aeration shall be performed to a minimum depth of four inches (4”). Cores may be swept or mowed and dispersed during mowing operations unless otherwise requested by City of Palm Desert. 4.6 Turf Maintenance - Overseeding 4.6.1 Turf areas designated for overseeding will be indicated in the Frequency Schedule. The City of Palm Desert will provide specific dates and times for the over-seeding schedule based on the use of each facility. Overseeding will occur in the month of October, some schools schedule overseeding around the Thanksgiving holiday week. 4.6.2 Contractor shall begin lowering the height of the turf during the scheduled weekly mowing approximately three weeks before the final cut. One week before the final cut, Contractor will reduce irrigation to the minimum in the turf areas. Contractor shall mow turf to a height of one- half inch (1/2”) and mower blades shall not be allowed to disturb the soil. 4.6.3 All grass clippings generated from this process will be vacuumed, swept or raked after each cut. 4.6.4 A light irrigation syringe cycle will be applied before the final cut to keep the dust levels to a minimum (per Coachella Valley Association of Governments guidelines). 318 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 4.6.5 Actual dates for the final mowing will be determined by the City of Palm Desert. Mowing activities may vary due to scheduled activities, condition of turf, and the actual mowing height needed to ensure seed-to-soil contact. Should Contractor fail to complete mowing or renovations during weekdays, Contractor shall adjust the schedule to work on Saturdays at no additional cost to City of Palm Desert. Advance permission to perform work on Saturdays is required. 4.6.6 The City of Palm Desert may supply grass seed. However, the City of Palm Desert may request that Contractor supply City of Palm Desert specified grass seed and be reimbursed at the cost of material plus an allowable mark-up of fifteen percent (15%). The application rate for the seed shall be no less than ten (10) pounds per 1,000 square feet. The Contractor shall also spot seed and mulch as necessary, areas after germination to ensure a well-covered rye stand, at no additional labor cost as directed by the City of Palm Desert. The Contractor is to verify and confirm quantity of seed bags with City of Palm Desert personnel prior to installation and after seeding task is complete. 4.7 Turf Maintenance for Non-Overseeded Areas 4.7.1 From November 1 through March 31, mowing and irrigation on non-overseeded turf areas will be reduced per the Frequency Schedule. 4.8 Hardscape, Decomposed Granite (DG) Planter Areas 4.8.1 Contractor shall remove any sand, gravel, grass, and plant clippings or debris from all sidewalk and hardscape areas after all maintenance activities or as indicated in the Frequency Schedule. 4.8.2 Daily sidewalk cleaning shall consist of removing debris from sidewalks by blowing or sweeping. Blower throttle to be maintained at the lowest practical setting possible. 4.8.3 Contractor shall rake planter areas. Contractor shall also rake underneath living plant material, unless directed not to do so by City of Palm Desert. Slope areas are to be raked horizontally and not from top to bottom. If existing grade is adversely affected by raking activities, Contractor shall re-establish an appropriate grade to the satisfaction of City of Palm Desert. 4.8.4 Using pressure-wash equipment at a minimum pressure rating of 3000 PSI, Contractor shall pressure-wash playground equipment, monuments and signs, sidewalks, curbs, gutters, drains, benches, dog park fixtures, drinking fountains, picnic tables and miscellaneous hardscape fixtures as outlined in the Frequency Schedule. The Contractor shall use, as directed by the City of Palm Desert, a scrub brush and a City of Palm Desert-approved non-toxic biodegradable cleaning agent to adequately clean the aforementioned items, as deemed acceptable by City of Palm Desert. Contractor will also remove any tape, banners, and party supplies from playground shelters and pavilions in conjunction with the pressure washing duties. This process shall be considered as included in the contract lump sum bid price, and no additional compensation shall be allowed, therefore. 4.8.5 Pressure washing, at a minimum pressure rating of 3000 PSI, at dog parks must include the use of a City of Palm Desert-approved non-toxic biodegradable cleaning agent. 4.8.6 Contractor shall remove litter and debris obstructing spillways and their associated drain grates. This activity shall take place according to the Frequency Schedule, and after a rain event as determined by City of Palm Desert staff. 4.9 Sports Field and Court Maintenance 319 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 4.9.1 Baseball infields are to be dragged to level condition and watered per frequency schedule. Field leveling with larger equipment (tractor with leveling attachment) may be requested by the City as an extra. 4.9.2 Tennis, pickleball and basketball courts will be water-broomed and cleaned per frequency schedule. This consists of removing all foreign debris and materials such as soda, gum, or other waste. A pressure washer supplied by the Contractor may be needed to remove such items. 4.9.3 Beach volleyball court sand will be leveled per frequency schedule and watered at least once per month. 4.10 Irrigation System Maintenance 4.10.1 The operation, maintenance, and scheduling of all irrigation controllers and attached sensors shall be the responsibility of Contractor. Contractor will make adjustments to the controllers, sensor equipment, and schedules based on property microclimates, ET, rain events, and overseeding schedules. Contractor will schedule irrigation to provide adequate irrigation to plant material while conserving water as much as possible. NOTE: Irrigation systems currently are not Smart Controllers and will require manual adjusting. 4.10.2 All irrigation systems and their individual components shall be kept in adjustment to ensure proper water coverage and prevent unacceptable conditions such as insufficient water distribution (plant death), overspray, excessive runoff, and erosion. 4.10.3 Repairs or replacements to the irrigation system shall be made with like parts. 4.10.4 Contractual irrigation system maintenance includes all labor for system inspections, adjustments, repairs and installations for all system components, in-line irrigation valves, including internal and electrical components, irrigation wires from the timer to the valve, and all mainline and lateral line repairs two inches (2”) and smaller in diameter, unless damage is caused by vandalism. Should vandalism occur, the Contractor is to notify City of Palm Desert staff immediately and prior to the repair work. All irrigation rotors, bubblers, emitters, associated fittings, and valve boxes shall also be included under contractual system maintenance. Any repair work outside of this scope will be considered extra work and paid accordingly. All parts shall be provided by the Contractor and will be reimbursed by the City of Palm Desert at actual cost plus a fifteen percent (15%) mark-up, unless the replacement is due to damage caused by the Contractor’s operation, in such case the Contractor shall bear the entire cost. Adjustments, repairs and installations shall include: 4.10.4.1 Valves: electrically actuated irrigation control valves, quick coupler valves, end line flush valves, lateral line flush valves, and master valves. All valves will be checked for proper operation, leaks, and solenoid function and connections (where applicable). Automatic valves will be activated from the irrigation controller, not from the bleeder valve. 4.10.4.2 The electrical circuit from the irrigation controller to the valve will be checked for proper operation. Labor cost for the actuator’s replacement shall be included in the contract lump sum bid price, and no additional compensation shall be allowed, therefore. 4.10.4.3 Filter, filter screen, and filter valve box cleaning. 4.10.4.4 Lateral lines will be checked for breaks and leaks and will be flushed at least yearly and additionally when necessary to ensure proper system performance. 4.10.5 Emission device and valve box checks, adjustments, installation, maintenance and repairs shall include: sprinkler head and valve box height adjustment and replacement; nozzle spray 320 Contract No. ___________ Exhibit “A” Revised 01-2024 BBK 72500.00001\32374915.1 pattern adjustment; nozzle cleaning and replacement; bubbler head height adjustment, cleaning, and replacement; tree well repair; and drip emitter cleaning, replacement, removal and plugging if no plant material is present. Installation of new emitters, or bubblers, as required to ensure the health of plant material, shall be included in the contract lump sum bid price and no additional compensation shall be allowed, therefore. 4.10.6 The Contractor shall perform, at a minimum, a weekly visual irrigation Inspection, within the designated landscape maintenance area, for leaks, dry areas, and vandalism. Contractor shall take appropriate action to immediately stabilize the system. Such actions shall be reported to the City of Palm Desert within twenty-four (24) hours of discovery and performance of necessary repairs. 4.10.7 Contractor shall maintain an adequate supply of irrigation parts readily available to Contractor’s irrigation technician for making routine repairs of main and lateral lines two inch (2”) in diameter and smaller without leaving the irrigation site. 4.10.8 Non-contractual irrigation system repairs: 4.10.8.1 No non-contractual work will be initiated without an approved City of Palm Desert Work Order. 4.10.8.2 When irrigation system malfunction or damage is detected, the repair of which is non-contractual in nature, Contractor will flag the location and notify City of Palm Desert before the close of business the same workday. 4.10.8.3 Upon receipt of an approved Work Order, repairs to a non-operational and/or damaged irrigation system shall be completed within 24 hours, or as otherwise indicated on the Work Order. 4.10.8.4 All repairs deemed non-contractual will be paid on a time-and-materials basis. 4.10.8.5 Labor will be billed per the rates under the Performance of Extra Work heading. 4.10.8.6 Materials will be billed at “cost plus 15%” or, at City of Palm Desert’s discretion; materials may be supplied to Contractor by City of Palm Desert. 4.10.8.7 Contractor shall return to City of Palm Desert all irrigation parts that have been replaced. 4.10.8.8 City of Palm Desert will perform regular inspections of irrigation systems to ensure accuracy of Contractor’s irrigation reports. If discrepancies are found, City of Palm Desert shall consider this a performance deficiency. 321 Contract No. ___________ Exhibit “B” Revised 01-2024 BBK 72500.00001\32374915.1 EXHIBIT “B” SCHEDULE OF SERVICES The term of this Agreement shall be from July 1, 2025, to June 30, 2028, 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 two (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. 322 Contract No. ___________ Exhibit “C” Revised 01-2024 BBK 72500.00001\32374915.1 EXHIBIT “C” COMPENSATION The total annual compensation shall not exceed Five Hundred and Four Thousand Six Hundred Dollars ($504,600.00) per fiscal year and may only be adjusted for Consumer Price Index for all Urban Consumers (CPI-U) for the Riverside-San Bernardino-Ontario, CA Region rate for the 12-month period ending May, with written approval from the City Council or City Manager following FY 2025-26, as applicable. Payment and Performance Bonds apply and will follow after the compensation. 323 Contract No. ___________ Exhibit “C” Revised 01-2024 BBK 72500.00001\32374915.1 324 Contract No. ___________ Exhibit “C” Revised 01-2024 BBK 72500.00001\32374915.1 325 326 Contract No. ___________ Exhibit “C” Revised 11-2-20 BBK 72500.00001\32374915.1 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to Vintage Landscape, (hereinafter referred to as the “Contractor”) an agreement for Landscape Maintenance Area No. 16 Project, Project No. MLS00016 (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 May 22, 2025, (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, Vintage Landscape, 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 Six Hundred Five Thousand, Five Hundred Twenty Dollars, ($605,520.00), 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 t hese 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 a nd 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 327 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] 328 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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: NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. 329 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 330 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 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 331 Contract No. ___________ PAYMENT BOND KNOW ALL PERSONS BY THESE PRESENTS That WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed May 22, 2025, has awarded to Vintage Landscape, hereinafter designated as the “Principal,” a contract for the work described as follows: Landscape Maintenance Area No. 16 Project, Project No. MLS00016 (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 May 22, 2025, (“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 Six Hundred Five Thousand, Five Hundred Twenty Dollars, ($605,520.00) 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 332 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] 333 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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. 334 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 335 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 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 336 City of Palm Desert PW - Operations & Maintenance Randy Chavez, Deputy Director 73-510 Fred Waring Drive, Palm Desert, CA 92260 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 RESPONSE DEADLINE: April 15, 2025 at 5:00 pm Report Generated: Saturday, April 26, 2025 Vintage Landscape Response CONTACT INFORMATION Company: Vintage Landscape Email: joes@thevintageco.com Contact: Joe Stein Address: 78755 Darby Road Bermuda Dunes, CA 92203 Phone: (760) 422-7509 Website: www.vintagelandscape.com Submission Date: Apr 15, 2025 4:39 PM (Pacific Time) 337 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 2 ADDENDA CONFIRMATION Addendum #1 Confirmed Apr 13, 2025 2:38 PM by Joe Stein Addendum #2 Confirmed Apr 13, 2025 2:39 PM by Joe Stein QUESTIONNAIRE 1. Proposal (WITHOUT COST)* Proposals shall be concise, well organized and demonstrate qualifications and applicable experience. Proposals shall be organized, 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. 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 338 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 3 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. COPD_LMA16_2025-RFP-148_(Proposal_Packet).pdf 2. Non-Collusion Declaration* 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, organization, 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 indirectl y, sought by agreement, communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any ove rhead, 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, directly or indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged informa tion or 339 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 4 data relative thereto, to any corporation, partnership, company, association, organization, bi d 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 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 3. Enter your valid CA Contractors State License Board (CSLB) number* Please enter your License Number here. This will be verified against the state database 647984 Click to Verify Value will be copied to clipboard 4. Enter your California Department of Industrial Relations (DIR) Registration number* Please enter your Public Works Contractor DIR Number. This will be verified against the state database. 1000001926 Click to Verify Value will be copied to clipboard 5. Type of Business* S Corporation (if corporation, two signatures are required) 6. Litigation* 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 340 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 5 7. Changes to Agreement* 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 8. No Deviations from the RFP* 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 particu lar, the insurance and indemnification provisions therein (or type "N/A"). N/A 9. Project Team Resumes* Submit resumes of all key personnel/support staff that will produce work product for the Services. Describe their qualificati ons, education, and professional licensing. 9._Project_Team_Resumes.pdf 10. List the Signatory(s) Authorized to Sign and Bind an Agreement.* (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 341 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 6 A. Kyle Gritters B. CEO C. 78-755 Darby Road Bermuda Dunes, CA 92203 D. kyleg@thevintageco.com E. 805-720-7269 A. David Smith B. President C. 78-755 Darby Road Bermuda Dunes, CA 92203 D. davids@thevintageco.com E. 760-772-3673 11. 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.* Confirmed PRICE TABLES CONTRACTORS PROPOSAL PRICE BY LOCATION Line Item Site Description Quantity Unit of Measure Monthly Unit Price Annual Total 1 Joe Mann Park 12 Months $1,575.00 $18,900.00 342 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 7 Line Item Site Description Quantity Unit of Measure Monthly Unit Price Annual Total 2 Freedom Park 12 Months $7,625.00 $91,500.00 3 Stonebridge Easements 12 Months $1,380.00 $16,560.00 4 Hovley Soccer Park 12 Months $7,335.00 $88,020.00 5 Bump and Grind Trailhead 12 Months $510.00 $6,120.00 6 University Dog Park 12 Months $890.00 $10,680.00 7 University Park East 12 Months $1,975.00 $23,700.00 8 Ironwood Park 12 Months $3,985.00 $47,820.00 9 Washington Charter School Park 12 Months $1,690.00 $20,280.00 10 Cahuilla Park 12 Months $1,680.00 $20,160.00 11 Community Gardens 12 Months $985.00 $11,820.00 12 Homme Adams Park 12 Months $1,470.00 $17,640.00 13 Palma Village Park 12 Months $1,230.00 $14,760.00 14 Smoketree Natural Area 12 Months $490.00 $5,880.00 15 Haystack Drainage 12 Months $3,950.00 $47,400.00 16 Park A 12 Months $1,500.00 $18,000.00 17 Park B 12 Months $1,380.00 $16,560.00 343 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 8 Line Item Site Description Quantity Unit of Measure Monthly Unit Price Annual Total 18 Park D 12 Months $1,350.00 $16,200.00 19 Park E 12 Months $1,050.00 $12,600.00 TOTAL $504,600.00 ADDITIONAL WORK PRICING SCHEDULE Line Item Description Unit of Measure Unit Cost 20 Additional Laborer Per Hour $37.00 21 Additional Irrigator Per Hour $47.00 22 Additional Foreman Per Hour $47.00 PLANT MATERIAL REPLACEMENT Note: Anything over 24” box size will be paid at the contractual hourly rate for labor, and materials at cost plus a 15% mark-up. *Includes the following: digging of hole, setting of tree, backfilling, watering-in of tree, staking (if needed), securing with cinch ties, and adjusting repairing, or retrofitting irrigation Line Item Description Unit of Measure Unit Cost 23 1-Gallon Shrub Installed Each $19.00 24 5-Gallon Shrub Installed Each $34.00 25 15-Gallon Tree Installed Each $125.00 26 24" Box Tree Installed Each $440.00 344 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT RFP No. 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 [VINTAGE LANDSCAPE] RESPONSE DOCUMENT REPORT Request For Proposal - Landscape Maintenance Area (LMA) No. 16 Page 9 345 2025 LANDSCAPE PROPOSAL COPD LMA 16 · 2025-RFP-148 346 Response to 2025-RFP-148 Landscape Maintenance Area (LMA) No. 16 April 14 , 2025th Dear City Staff & Council, Thank you for the opportunity to submit our proposal for the landscape maintenance of City of Palm Desert LMA- 16. Vintage offers the expertise and experience to maintain and enhance the beauty and value of your city landscape. As the only company in the Coachella Valley providing a full range of services — including general maintenance, tree care, design, enhancements, etc — we take pride in our comprehensive approach. Our team is made up of certified horticultural professionals with over 100 years of combined experience, dedicated solely to serving clients in the Coachella Valley. Vintage is incredibly appreciative to be part of this process. We can assure you of our unwavering commitment to be responsive, accept responsibility, and partner with you to find solutions just as we have for the past 5 years. In addition to the (8) current staff members we have servicing LMA-16, we are proposing (1) additional full-time gardener and (2) seasonal mow crew members. These additions will supplement the increased scope of work (new locations, service-specific frequencies and seasonal needs). Qualifications: We have over 30 years of experience taking care of city parks, including City of Palm Desert, City of Coachella, City of Indian Wells and City of Rancho Mirage. Highly qualified and experience account managers and on-site supervisors constantly inspect the property for issues and proactively correct and report these issues. We emphasize the natural pruning of shrubs and professional tree care to enhance the beauty and ensure the landscape looks just like the architect designed it. We utilize best management practices and the most efficient equipment available to provide high-quality results at the lowest cost. Our history of maintaining long-term relationships with our customers (over 20 years) and our employees (over 30 years). Kyle Gritters (CEO) and David Smith (President) are authorized to negotiate agreement terms and compensation. Both gentlemen can be reach at: 78755 Darby Road, Bermuda Dunes, CA 92203 760-772-3673 Sincerely, Kyle Gritters │ CEO COVER LETTER City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 347 Technical Competence City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 1. Background Vintage Landscape has been in business for 33 years, proudly partnering with multiple municipalities across the greater Coachella Valley. Our long-standing relationships include the City of Palm Desert (20 years), City of Coachella (10 years), City of Indian Wells (20 years), and City of Rancho Mirage (3 years). The scope of work provided to the aforementioned municipalities is akin to the requested 2025 LMA-16 RFP. This work includes the servicing of parks, sports complexes, and common area landscape. Vintage Landscape’s staff has over 100 years of combined experience in the landscape industry, education, and certifications. This includes, ISA Certified Arborist, QAL Certified, AA Turf Management and BS in Horticulture. One of our key members contributing to the success and training of our field team is Al Hollinger. Al has a degree in Ornamental Horticulture and is seen as the desert ’s Horticulture expert. He also spent many years teaching courses at the College of the Desert specific to Horticulture. There is no other landscape service provider in the desert with the expertise and knowledge that the staff at Vintage Landscape provides to their clients. 348 1. References City of Rancho Mirage Contact: Ryan Stendell (Director of Public Works) Phone: 760-770-3224 Ext. 254 Email: ryans@ranchomirageca.gov Scope of Services: General landscaping, tree pruning, pressure washing, facilities, irrigation and cloud control management, etc. for parks, city hall, buildings, fire stations and center medians. Staffing: Supervisor, foreman, irrigator, gardening crew, facilities, tree crew, spray tech. City of Coachella (Bagdouma Park) Contact: Maritza Martinez (Public Works Director) Phone: 760-398-3502 Ext. 201 Email: mmartinez@coachella.org Scope of Services: General landscaping, tree pruning, pressure washing, facilities, irrigation management, etc. for parks, city hall, buildings, fire stations and center medians. Staffing: Supervisor, foreman, irrigator, gardening crew, facilities, tree crew, spray tech. Experience & references City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 349 1. References (Continued) City of Indian Wells Contact: Mihai Dan - Maintenance Supervisor Phone: 760-346-2489 Email: mdan@indianwells.com Scope of Services: General landscaping, tree pruning, pressure washing, irrigation management, etc. for common areas and center medians (includes large amount of annual flower color maintenance). Staffing: Supervisor, foreman, irrigator, gardening crew, facilities, tree crew, annual flower color crew, spray tech. Experience & references City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 350 1. Proposed Staffing SUPERVISION Qty Job Title Name Frequency 1 Account Manager Bruce Brown Weekly / As Needed 1 Onsite Supervisor Pedro Lopez Daily 2 TOTAL STAFFING City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com GENERAL LANDSCAPE Qty Job Title Name Frequency 1 Foreman Julio Gomez Daily 1 Irrigator Eleno Rivera Daily 1 Pressure Washing / Facilities Gabriel Duran Daily 3 Gardener Maria Alvarez Daily (1) New FT Gardener to supplement additional scope and frequencies. Victor Garcia Daily New Member Daily 6 TOTAL TURF MANAGEMENT Qty Job Title Name Frequency 1 Mow Crew Member Ricardo Machuca Weekly / As Needed 1 Mow Crew Member Jose Alvarado Weekly / As Needed 2 Seasonal Scalp & Overseed New Member Month of October New Member Month of October 4 TOTAL 351 1. Proposed Staffing (Continued) At Vintage Landscape, we are a full-service landscape company with multiple specialized divisions, allowing us to meet a wide range of customer needs quickly and efficiently. Whether it ’s expert tree pruning, landscape enhancements, irrigation audits, or routine maintenance, our dedicated teams work seamlessly to deliver high- quality results and responsive service. This structure ensures that we have the capacity to provide additional personnel as needed no matter the size or scope of your project. STAFFING City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 352 2. Key Personnel KEY PERSONNEL City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com Bruce Brown – Account Manager 32 Years Golf and Landscape Experience Associate of Science Turfgrass Management QAL ISA Certified Arborist Pedro Lopez – Supervisor 20 years Landscape Experience Turf Grass Management Experience Pesticide Laws & Regulations Experience Arboriculture Experience Eleno Rivera – Irrigator 18 years Landscape/Irrigation Experience 5 years experience in City of Palm Desert 353 2. Key Personnel (Continued) KEY PERSONNEL City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com Al Hollinger, Chief Horticulturist for Vintage Landscape Al holds a BS in Ornamental Horticulture from Cal Poly Pomona, he is an ISA Certified Arborist and a member of the International Society of Arboriculture since 1990. Al holds a Qualified Applicators License. Al has over 35 years of experience of working on City Landscape Accounts and has extensive technical knowledge and qualifications. Al was a Horticulture instructor at COD for 10 years adjunct as well as a frequent speaker at Landscape Educational Seminars Kyle Gritters - CEO Kyle manages the Landscape maintenance branch with a strong team with over 100 years experience between them. Kyle has attended numerous horticultural classes at COD and holds a Qualified Applicators License and contractor's license and works in tandem with his business partner David Smith to create a strong company culture of trust and integrity. Kyle holds a BA in Applied Design from San Diego State University. 354 Kyle Gritters CEO Vintage Landscape Israel Ruiz Tree Rite Manager SENIOR SUPERVISORS SUPERVISORS Dan Powers QAL/CLIA Rob DowningAurelio MedinaAlex Meza Alfonso Munoz Brian Valenzuela Ramon LopezFredie SalazarIsrael Macias Juan Castellon Oscar Aceves Maxicom Site / QAC Pedro Lopez Bruce Brown Golf Turf AA / ISA / QAL Golf Account Manager Leo Meza ISA / QAL AA Turf Account Manager Rafael Esquivel ISA / QAL Account Manager Kevin Vasquez Anthony Mendoza Sergio Aceves Lead Mechanic Jairo Moreno Mitch Ainsworth Fleet/Hardware Manager Jesus Orozco Ben Reyes Elmer Gamez Gil Mejorado CLIA Water Manager Al Hollinger Vintage Chief Horticulturalist Leo Flores Reina Gonzalez Javier Garcia Samuel Miranda Antonio Fernandez Rigoberto Orellana Mario Higaque Petro Garcia Ignacio Serrato Manuel Langarica 3. Team Organization 355 4. Subcontractors As stated previously, we are a full-service landscape company with multiple specialized divisions. Whether it ’s expert tree pruning, landscape enhancements, irrigation audits, etc., our structure ensures that we have the capacity to provide additional personnel as needed, no matter the size or scope of your project. Should the need arise for external resources to complete a task or project, we have established relationships with the following subcontractors to assist. Pompa Tree Services Contact: Jose Pompa Phone: 760-674-6013 79405 Hwy 111, Ste. 9-335, La Quinta, CA 92253 Discount Tree Service Contact: Jaime Elenes Phone: 760-391-8328 PO Box 3587, Palm Desert, CA 92261 subcontractors City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 356 1. Annual Schedule July Daily - Monthly Tasks (scheduled as RFP specified) Nut Sedge & Broadleaf Weed Application (if approved). August Daily - Monthly Tasks (scheduled as RFP specified) September Daily - Monthly Tasks (scheduled as RFP specified) Aerate Sports Fields Begin lowering sports fields turf height in preparation for over seeding. Clean out Community Gardens October Daily - Monthly Tasks (scheduled as RFP specified) Overseed All Turf Areas Fertilize All Turf Areas November Daily - Monthly Tasks (scheduled as RFP specified) December Daily - Monthly Tasks (scheduled as RFP specified) Aerate Sports Fields Fertilize Turf Areas January Daily - Monthly Tasks (scheduled as RFP specified) February Daily - Monthly Tasks (scheduled as RFP specified) Fertilizer w/Barricade Pre-Emergent Application March Daily - Monthly Tasks (scheduled as RFP specified) Aerate Sports Fields Treat Oak Trees for Aphids/Scale April Daily - Monthly Tasks (scheduled as RFP specified) Fertilize All Turf Areas Treat Oak Trees for Aphids/Scale May Daily - Monthly Tasks (scheduled as RFP specified) June Daily - Monthly Tasks (scheduled as RFP specified) Aerate Sports Fields Fertilize Turf Areas Annual Schedule City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 357 2. Major Tasks & Milestones tasks & Milestones City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 358 3. Regular Tasks Daily tasks will be completed as scheduled by splitting the crew members into 4 groups. Groups A,B,C & D. There will be a total of (8) people including, the foreman, that make up these groups. The number of people in each group will vary depending on the day, time of year and tasks required. All 4 groups would have their own vehicle and equipment and be able to work independently of each other. When groups are not working on their primary tasks, they will help other groups with other tasks. Groups may work together at the same location or by themselves at different locations depending on the requirements of the day. Tasks may overlap and groups will work together on some tasks. Group A will be responsible for gardening tasks. Group B will be responsible for pressure washing tasks. Group C will be responsible for mowing tasks. Group D will be responsible for irrigation tasks. All 4 groups would be responsible for daily trash pickup, emptying containers and raking and cleaning playground areas Monday thru Friday. They would also take care of plant litter dog droppings and blowing hardscapes. Trash on the weekend would be by a single individual with additional help on anticipated heavy weekends. (Frequency Schedule Legend A & B). Weekly mowing will be done by Group C and the large mower operator. (Frequency Schedule Legend D & T) On Monday, Wednesday and Friday Group B will pressure wash dog parks and clean tennis and basketball courts (Frequency Schedule Legend E). Weekly they will pressure wash picnic areas and clean BBQ’s (Frequency Schedule Legend D). Every 2-weeks they will pressure wash sports field bleachers, drains, benches, drinking fountains, trash receptacles, signs, and misc. fixtures. They will also pressure wash the playground equipment and adjacent hardscape (Frequency Schedule Legend F). Depending on the location Group A will rake designated areas for the frequencies set forth in Frequency Schedule Legend B, F & G). Infrequent Tasks: The following tasks will be completed by Groups A, B, & C. Supplemental labor will be provided as part of the contract if necessary. Quarterly Fertilization & Aeration (Frequency Schedule Legend I) Treat Aphids on Oaks Trees (Frequency Schedule Legend J) Clean-out Community Garden Beds (Frequency Schedule Legend K) Fall Scalping & Overseeding (Frequency Schedule Legend K) To be performed by our proposed additional mow crew members during the month of October. regular tasks City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 359 4. Weekly Schedule of Regular Tasks This proposed schedule is subject to review and revisions based upon further discussion with City Staff. weekly schedule City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 360 5. Full-Time Equipment Below is a list of full-time equipment that will be utilized and invested into this project. (4) Pick-Up Trucks (2) Trailers Pressure Washer (Minimum 3000 PSI) 121" Toro Reelmaster 7000 (Fairway Mower) 9' Toro Groundmaster 4500 (Rough Mower) 60” Exmark Lazer Z (Zero-Turn Lawn Mower) NEW Turbine Blower (post-mowing) NEW 21” Push Mower String Trimmer Edger Backpack & Handheld Blowers 50-Gallon Sprayer Backpack sprayer Misc. Gardening Tools Misc. Irrigation Tools full-time Equipment City of palm desert LMA-16 Vintage Landscape · Vintage Nursery · Vintage Outdoors 78-755 Darby Road, Bermuda Dunes, CA 92203 · (760) 772-3673 · vintagelandscape.com 361 6. Supplemental Equipment Below is a list of equipment that will be used on this project on an as needed basis to facilitate the RFP scope. supplemental equipment City of palm desert LMA-16 362 7. Supplemental Equipment (Continued) supplemental equipment City of palm desert LMA-16 363 9.- Project Team Resumes Bruce Brown Account Manager 78755 Darby Road Bermuda Dunes, CA 92203 760-772-3673 Bruceb@thevintageco.com Summary Responsible for overall customer experience and interaction with Vintage Landscape. Quality assurance for the account and support for the supervisor. Qualifications 1)32 Years Golf and Landscape Experience 2)Associate of Science Turfgrass Management 3)Qualified Applicator Licensed 4)ISA Certified Arborist Pedro Lopez Senior Supervisor 78755 Darby Road Bermuda Dunes, CA 92203 760-772-3673 Pedrol@thevintageco.com Summary Supervisor (30-35 Hours per week) Responsible for scheduling, inspection and follow up to be sure work is completed as specified. Responsible for checking on crew daily and will manage daily communication with main contact with the city. Qualifications 1)20 Years Landscape Experience 2)Turf Grass Management Experience 3)Pesticide Laws & Regulations Experience 4)Arboriculture Experience Eleno Rivera Irrigation Foreman Gardener 78755 Darby Road Bermuda Dunes, CA 92203 760-772-3673 Summary Responsible for irrigation checks and reporting. Will also be the designated lead full time on location. Qualifications 1) 18 Years Landscape Irrigation Experience 2) 5 Years experience in City of Palm Desert 364 Summary Greg has a degree in Chemical Engineering from the University of Southern California. Greg is a graduate from the internationally acclaimed Thunderbird School of Management with an MBA in international business. Qualifications 1)25 years of domestic and international experience in commercial development, operations, and project management 2)Certified Water Manager by the California Landscape Contractors Association 3)Leads the company’s initiatives in water management and conservation Kyle Gritters CEO 78755 Darby Road Bermuda Dunes, CA 92203 760-772-3673 Kyleg@thevintageco.com Summary Manages the landscape maintenance branch with a strong team with over 100 years of experience between them. Kyle graduated from San Diego State University and has attended numerous horticultural classes at COD. Qualifications 1) Qualified Applicators Licensed 2) BA in Applied Design 3) Contractors License David Smith President 78755 Darby Road Bermuda Dunes, CA 92203 760-772-3673 Davids@thevintageco.com Greg Gritters CFO 78755 Darby Road Bermuda Dunes, CA 92203 760-772-3673 Greg@TheVintageCo.com Summary Manages our construction branch (Vintage Outdoors) and nursery (Vintage Nursery). He is also involved in CAI and oversees business development. Qualifications 1)28 years of landscape construction experience 2)Expert in palm tree horticulture 3)ISA Tree Risk Assessment Qualified 4)ISA Certified Arborist 5)BS in Business Administration 365 Summary Al graduated from Cal Poly Pomona and was a Horticulture instructor at COD for 10 years adjunct. He has been a part of the International Society of Arboriculture since 1990. Al was a frequent speaker at Landscape Educational Seminars. Qualifications Al Hollinger Chief Horticulturalist for Vintage Landscape 78755 Darby Road Bermuda Dunes, CA 92203 760-772-3673 Alanh@thevintageco.com 1)Over 35 years of experience working on City Landscape Accounts and has extensive technical knowledge and qualifications. 2) BS Ornamental Horticulture 3) Qualified Applicators Licensed 4) ISA Certified Arborist 366 BobHope D r C l a nc y L n G e r a l d F o r d D r Vist a d e l Sol H o v l e y L a n e W Country C l u b D r Bo b Ho p e Dr M onterey Ave P o rt ol a Av enue F r a nk S i na t r a D r i v e Mo nt er e y A v e n u e G er a l d F o rd D r i v e SunriseCountry Club Sunny land s Historic Estate M ont erey Country Club Desert Willow Rancho M i r a g e P a l m D e s e r t B ur s e r a W a y H a y s t a c k R oa d 74 111 Ironw ood Count ry Club Sh adow Mountain R esort Ca ny ons At Bighorn Ivey Ra nch Count ry Club VarnerRd Y u c c a L n Av enue 3 8 W a rner T ra ilMerleDrive F red W a r i ng D r H o v l e y L a n e E Fr a n k Si na t r a D ri v e Gerald Ford Drive C o o k St r eet W a s h i ng t o n S t r e et Classic Club Golf Course Ind ian W ells Golf Course Toscana Country Club Indian Ridge Country Club Palm Valley Country Club The Lakes Country Club Desert Falls Count ry Club Palm Desert Country Club Coachella Valley Na tional Wildlife R efuge D e s e r t P a l m s M i l es Av e Fa i r w a y Dr El Dorado Country Club India n Wells Count ry Club La Quinta Country Club Vint age Club I nd i a n W e l l s Sources: Esri, TomTom, Garmin, FAO, NOAA, USGS, © OpenStreetMap contributors, and the GIS User Community Landscape Area 16 I 2025 367 368 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Vanessa Mager, Management Analyst SUBJECT: RECEIVE AND FILE THE 2025 COMMERICAL BROKER’S REPORT RECOMMENDATION: Receive and file the 2025 Commercial Broker’s Report. BACKGROUND/ANALYSIS: Now in its third edition, the City of Palm Desert’s Commercial Broker’s Report continues to serve as an essential resource for engaging the commercial real esta te community. Building on the success of previous editions, the City has committed to publishing this report on a bi -annual basis. Feedback from past reports has directly shaped several important updates, including: A re-evaluation of the Downtown Edge Transition Overlay, enabling multi-use businesses in areas previously subject to more restrictive zoning. Updates to land use definitions, particularly to accommodate flexible auto retail and medical uses, addressing current market needs. The introduction of The Business Bulletin, a quarterly communication tool launched in 2024 to strengthen the City’s dialogue with the business community. Commercial brokers have responded positively to these changes. The expanded flexibility within the Downtown Edge Transition Overlay and updated land use definitions have been particularly well received, resulting in increased leasing activity across the city. Additionally, The Business Bulletin has enhanced communication and transparency, reinforcing the City’s commitment to responsive economic development. This latest report reflects what we’ve learned from our 2024 broker discussions and includes broader economic insights gathered from a range of sources. Participating firms included Baxley Properties, Coldwell Banker, Progr essive, Desert Pacific Properties, Johnson Commercial, Lee and Associates, Smoketree Investments, The Firm, Chartwell Properties, and Wilson and Meade. Key takeaways: Severe Industrial inventory shortage Demand for smaller, flexible spaces Rising lease rates El Paseo and Hwy 111 occupancy remain strong 369 City of Palm Desert The 2025 Commercial Broker’s Report Page 2 of 2 City policy and initiative opportunities Broker engagement and communication are working Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact associated with this action. ATTACHMENTS: 1. 2025 Brokers Report 370 Commercial Brokers Report 2025 Analyzing Key Trends and Insights From Local Brokers Economic Development 371 Now in its third edition, the City of Palm Desert’s Commercial Brokers Report continues to serve as an essential resource for engaging the commercial real estate community. Building on the success of previous editions, the City has committed to publishing this report on a bi-annual basis. Feedback from past reports has directly shaped several important updates, including: A re-evaluation of the Downtown Edge Transition Overlay, enabling multi-use businesses in areas previously subject to more restrictive zoning. Updates to land use definitions, particularly to accommodate flexible auto retail and medical uses, addressing current market needs. The introduction of The Business Bulletin, a quarterly communication tool launched in 2024 to strengthen the City’s dialogue with the business community. Commercial brokers have responded positively to these changes. The expanded flexibility within the Downtown Edge Transition Overlay and updated land use definitions have been particularly well received, resulting in increased leasing activity across the city. Additionally, The Business Bulletin has enhanced communication and transparency, reinforcing the City’s commitment to responsive economic development. This latest report reflects what we’ve learned from our 2024 broker discussions and includes broader economic insights gathered from a range of sources. Background 372 Developed through direct conversations with leading brokers across the Coachella Valley, the 2025 report captures timely insights into leasing trends, market demands, and structural challenges affecting the city's commercial landscape. Key takeaways reflect a tight industrial market, rising lease rates, shifting space demands, and regulatory barriers affecting development. Feedback gathered in late 2024 also reinforces the value of recent City-led initiatives and highlights further opportunities for strategic adjustments to support small businesses. Recommendations from brokers have shaped several actionable strategies aimed at aligning City policy with current market realities. Executive Summary Key Takeaways: Severe Industrial inventory shortage Demand for smaller, flexible spaces Rising lease rates El Paseo and Highway 111 occupancy remain strong City policy and initiative opportunities Broker engagement and communication are working 373 Industrial in Palm Desert The Coachella Valley is experiencing an industrial boom, particularly along the I-10 corridor, with the development of large warehouses and logistics centers. Industrial buildings in the area are concentrated in and around the popular resort cities of Palm Springs and Palm Desert. Tenant demand softened from mid-2022 into 2024, but several large tenant move-ins boosted net absorption into positive territory and lowered availability at the end of 2024. Industrial Sector Performance Industrial inventory vacancy is less than 1%. No new industrial spaces are under development in Palm Desert due to high construction costs. Lease rates for industrial space are comparable to office rents, averaging $1.30 per square foot. Storage space is highly sought after, but there is limited development capacity due to space constraints. Broker Feedback Statistical Information The vacancy rate as of May 2025 is 2.7%, with a total of 52, 800 vacant square feet. 374 Retail in Palm Desert Retail turnover remains low, with El Paseo continuing to have steady lease opportunities and limited availability. There is increasing demand for smaller locations, 2,000 to 5,000 square feet. The City’s restrictions on drive-thrus along Highway 111 have made it more challenging for brokers to pursue certain fast-food and casual dining opportunities. Retail space availability in the Coachella Valley has inched up recently but remains near all-time lows, trending at 7.6% as of the third quarter of 2024. Leasing has been a bit subdued recently, but demand remains strong enough to keep vacancies in the market low. Retail Sector Performance Broker Feedback Statistical Information The vacancy rate as of May 2025 is 7.2%, with only 450,000 vacant square feet. The market asking rent per square foot is currently at $28.87. The vacancy rate on El Paseo is 6%, with a market asking rent of $36.65 per square foot. The vacancy rate on Highway 111 is 6.6%. 375 Businesses serving local consumers, such as healthcare providers and government agencies, account for most office users. Demand for medical space has helped suppress vacancies, although net absorption in the market was negative in 2023-24. Vacancy measures 5.9% as of the first quarter of 2025, near all-time lows. Office Sector Performance Broker Feedback Statistical information Off ice in Palm Desert Office rents are at an all-time high, averaging around $1.25 - $1.50 per square foot. Smaller office spaces of 950-1,250 square feet are in high demand. Office requests near the freeway are on the rise. Office vacancy as of May 2025 is 9.9% overall, a total of 212,000 per square foot. Vacancy Rate by Class Class A 16% Class B 8.5% Class C 10.90%376 Leasing rates continue to rise steadily, making it increasingly difficult for small businesses to secure space in high-demand, prime locations. Challenges and Risks The local commercial real estate market continues to face a mismatch between supply and demand. While demand for small commercial spaces remains high, the inventory of these spaces is limited. At the same time, large-format or “big box” spaces are Low turnover in property ownership is contributing to a lack of redevelopment activity, as long-term owners are less likely to initiate significant improvements or changes. The City’s Façade Enhancement Program remains underutilized, primarily because improvements to older buildings often trigger costly requirements, such as ADA compliance upgrades and prevailing wage obligations, which can discourage participation. readily available, but demand for them is low. With no new development occurring—largely due to high construction costs—this imbalance is expected to persist in the near term. 377 Strategic Location Remains a Key Strength: Palm Desert’s central location continues to be a major draw for businesses; however, the limited availability of small commercial space presents an ongoing challenge. Addressing Rising Lease Rates and Limited Space: Increasing lease rates, coupled with constrained inventory, may be an opportunity for the City to create additional programs to help support small businesses. Maintain Proactive Communication with Stakeholders: Continued outreach to tenants and brokers is essential to keep them informed about City programs, zoning regulations, and available support resources. Streamline Façade Update Processes: Positive feedback on improvements to discretionary processes for building façade updates suggests this effort is working well and should be expanded. Enhance the Approval Process: A streamlined, transparent, and business-friendly approval process will remain critical in attracting and retaining businesses in Palm Desert. Support Development of Smaller-Scale Commercial Projects: With increased demand for smaller commercial and retail spaces, the City should consider encouraging projects that align with market needs—such as mixed-use developments and flexible leasing formats that accommodate small businesses. Revitalize Underutilized Areas: Encourage new retail development in underused areas and explore adaptive reuse strategies to repurpose vacant spaces, particularly for small square footage retail units in high-demand zones. Key Takeaways 378 1.Support Small Business Access to Space Launch a Small Commercial Space Incentive Program Provide financial or permitting incentives to property owners who subdivide larger vacant spaces into smaller, leasable units suitable for small businesses. Create a Small Business Rent Support Grant Help offset rising lease rates for qualifying small businesses, particularly in prime locations, to keep them competitive and prevent displacement. 2.Streamline and Promote Development Processes Expand Streamlined Façade Improvement Program Continue refining discretionary processes and provide clear, simplified guidelines for façade improvements, with focused outreach to increase participation. Develop a Business-Friendly Development Toolkit Provide a centralized, easy-to-navigate online resource that outlines the entire approval process, available programs, and support services for prospective tenants and developers. 3.Revitalize and Repurpose Underutilized Areas Implement Adaptive Reuse Incentives Offer financial or zoning incentives for the conversion of vacant big-box or underutilized buildings into multi-tenant spaces or small business hubs. Target Redevelopment Zones Identify key corridors or districts for revitalization efforts and partner with developers to create smaller-scale, flexible retail and office projects. 4.Strengthen Communication and Stakeholder Engagement Enhance Broker and Tenant Outreach Continue regular outreach through The Business Bulletin, stakeholder roundtables, and targeted briefings to ensure businesses and brokers stay informed. Establish a Commercial Real Estate Advisory Group Form a working group of local brokers, property owners, and business owners to provide real-time feedback and collaborate on solutions. Forward-Looking Strategies 379 Thank you to the following Commercial Brokers Engaged: Baxley Properties: Matthew Longstreth Coldwell Banker: Steve Lyle & Curtis Barlow Progressive: Heather Sharpe Desert Pacific Properties: Susan & Emily Harvey Johnson Commercial: Matt Johnson Lee & Associates: Shawna Strange & Maggie Montes Smoketree Investments: Josef Jonathan The Firm: Adam Gilbert Chartwell Properties: Amy Smith, Bob Baker, Cheryl Beckel and Ed Levey Wilson and Meade: Noel Ramos & Matt Rifkin 380 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Thomas Soule, Public Affairs Manager SUBJECT: AUTHORIZE AN AMENDMENT TO INCREASE THE CITY’S CONTRACT WITH FG CREATIVE FOR EL PASEO PARKING & BUSINESS IMPROVEMENT DISTRICT (EPPBID) MARKETING SERVICES BY $50,000, FOR A TOTAL OF $325,000 FOR FISCAL YEAR 2024-25. RECOMMENDATION: 1. Authorize Amendment No. 5 to El Paseo Parking and Business Improvement District (EPPBID) Contract No. C43370 with FG Creative to increase compensation by $50,000, for a total contract amount not to exceed $325,000 for Fiscal Year 2024 -25. 2. Authorize the City Manager to execute the Amendment. BACKGROUND/ANALYSIS: FG Creative was retained through a competitive process to provide marketing services for the EPPBID under a three-year contract that began July 1, 2022 with two one-year options to extend. Each year, the contract amount is amended to reflect updated budget authorizations. The original Fiscal Year (FY) 2024-25 contract total of $275,000 was approved by the City Council on June 27, 2024. On January 16, 2025, the EPPBID Board approved a mid -year budget increase of $50,000 based on actual revenues that surpassed budget assumptions . This adjustment was subsequently adopted by the City Council as part of the FY 2024 -25 Mid-Year Budget Review. This amendment will increase the total contract amount to $325,000 for the current fiscal year. The table below lists each amendment for this contract: Original Contract C43370 Original RFP for Marketing Services FY 2022-23 $250,000 Amendment No. 1 Mid-year Budget Adjustment FY 2022-23 (+$40,000) $290,000 Amendment No. 2 Reset base compensation for FY 2023-24 $250,000 Amendment No. 3 Mid-year Budget Adjustment FY 2023-24 (+$15,000) $265,000 Amendment No. 4 Reset base compensation for FY 2024-25 $275,000 Amendment No. 5 Mid-year Budget Adjustment FY 2024-25 (+50,000) $325,000 381 City of Palm Desert Authorize Amendment to Contract No. C43370 Page 2 of 2 Legal Review: This report has been reviewed by the City Attorney’s Office. Appointed Body Recommendation: The EPPBID Board of Directors approved the mid-year budget increase at its meeting on January 16, 2025. FINANCIAL IMPACT: Funds are available in the EPPBID Fiscal Year 2024-25 budget. The EPPBID funds are generated by fees the members, held by the City and used for the EPPBID. This action has no financial impact on the General Fund, as it is fully funded by assessments paid directly by businesses within the EPPBID. ATTACHMENTS: 1. Contract No. C43370 2. Amendment No. 1 to Contract No. C43370 3. Amendment No. 2 to Contract No. C43370 4. Amendment No. 3 to Contract No. C43370 5. Amendment No. 4 to Contract No. C43370 6. Draft Amendment No. 5 to Contract No. C43370 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 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 409 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 410 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 411 412 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 entered into that Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. 2.3 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. 2.4 Amendment Authority. This Amendment No. 2 is authorized pursuant to Section 3.9 (N) Amendment; Modification of the Agreement. 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 DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 413 Contract No. C43370 Page 2 of 4 Revised 07-2023 BBK 72500.00001\32445060.1 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. 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] DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 414 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: CEO Printed Name: Stephanie Greene By: Its: CFO Printed Name: Stephanie Greene QC: MN Insurance: _____ Initial Review _____ Final Approval DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 415 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. DocuSign Envelope ID: 4A3B2A92-D07C-410F-B5B8-C21A1996D9B0 416 AMENDMENT NO. 3 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE 1. Parties and Date. This Amendment No. 3 to the made and entered into as of this 11th day of March 2024, 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 entered into that Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023 2.3 Amendment. The City and FG Creative entered into Amendment 2. to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023. 2.4 Amendment. The City and FG Creative desire to amend the Agreement to increase compensation for second year of contract, July 1, 2023 through June 30, 2024. 2.5 Amendment Authority. This Amendment No. 3 is authorized pursuant to Section 3.9(N) Amendment; Modification of the Agreement. 3. Terms. 3.1 Section 3.6.A Compensation. Section 3.6.A of the Agreement is hereby amended in its entirety to read as follows: "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 Sixty-Five Thousand Dollars ($265,000.00) without 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. DocuSign Envelope ID: B7C8175C-659E-4E5D-A62D-E060796EBBF1 417 Contract No. C43370 Page 2 of 3 Revised 08-2023 BBK 72500.00001\32445060.1 3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 3, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 3. From and after the date of this Amendment No. 3, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 3. 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. 3. 3.5 Severability. If any portion of this Amendment No. 3 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6 Counterparts. This Amendment No. 3 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] DocuSign Envelope ID: B7C8175C-659E-4E5D-A62D-E060796EBBF1 418 Contract No. C43370 Page 3 of 3 Revised 08-2023 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 3 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. 3 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: Isra Shah Best Best & Krieger LLP City Attorney FG CREATIVE, a Corporation By: Stephanie Greene CEO By: Stephanie Greene CFO QC: MN Insurance: _____ Initial Review _____ Final Approval DocuSign Envelope ID: B7C8175C-659E-4E5D-A62D-E060796EBBF1 419 420 Contract No. C43370 Page 1 of 4 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 4 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE 1. Parties and Date. This Amendment No. 4 to the made and entered into as of this 11th day of July 2024, 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 entered into Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023 2.3 Amendment. The City and FG Creative entered into Amendment No. 2 to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023. 2.4 Amendment. The City and FG Creative entered into Amendment No. 3 to increase compensation for the period of, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 3 dated March 11, 2024. 2.5 Amendment. The City and FG Creative desire to amend the Agreement to establish compensation for the third year of the contract, July 1, 2024 through June 30, 2025. 2.6 Amendment Authority. This Amendment No. 4 is authorized pursuant to Section 3.9 (N) Amendment; Modification of the Agreement. 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 Seventy Five Thousand Dollars ($275,000) 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. 4, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 4. From and after the date of this Amendment No. 4, Docusign Envelope ID: 9DE70A65-094D-48C6-B43A-6AA9C99003D2 421 Contract No. C43370 Page 2 of 4 Revised 01-2024 BBK 72500.00001\32445060.1 whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4. 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. 4. 3.5 Severability. If any portion of this Amendment No. 4 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6 Counterparts. This Amendment No. 4 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] Docusign Envelope ID: 9DE70A65-094D-48C6-B43A-6AA9C99003D2 422 Contract No. C43370 Page 3 of 4 Revised 01-2024 BBK 72500.00001\32445060.1 QC: MN Insurance: _____ Initial Review _____ Final Approval SIGNATURE PAGE FOR AMENDMENT NO. 4 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. 4 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: Isra Shah Best Best & Krieger LLP City Attorney FG CREATIVE, a Corporation By: Stephanie Greene CEO and CFO Docusign Envelope ID: 9DE70A65-094D-48C6-B43A-6AA9C99003D2 423 Contract No. C43370 Page 4 of 4 Revised 01-2024 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, 2024 - June 30, 2025, at $275,000. 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 $3,350 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. Fees $ 44,250 Branding $ 43,500 Advertising $ 104,400 Merchant Support $ 40,050 Community Partnerships $ 3,800 Activations/Events $ 39,000 $ 275,000 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: 9DE70A65-094D-48C6-B43A-6AA9C99003D2 424 Contract No. C43370 Page 1 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 AMENDMENT NO. 5 TO THE PROFESSIONAL CONSULTANT SERVICES AGREEMENT, C43370 FOR MARKETING SERVICES BETWEEN THE CITY OF PALM DESERT AND FG CREATIVE 1. Parties and Date. This Amendment No. 5 to the made and entered into as of this 11th day of March 2025, 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 entered into Amendment No. 1 to increase compensation during the period of July 1, 2022 through June 30, 2023. The Parties have heretofore entered into Amendment No. 1 dated May 11, 2023. 2.3 Amendment. The City and FG Creative entered into Amendment No. 2 to establish compensation for the second year of the contract, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 2 dated August 24, 2023. 2.4 Amendment. The City and FG Creative entered into Amendment No. 3 to increase compensation for the period of, July 1, 2023 through June 30, 2024. The Parties have heretofore entered into Amendment No. 3 dated March 11, 2024. 2.5 Amendment. The City and FG Creative entered into Amendment No. 4 to establish compensation for the third year of the contract, July 1, 2024 through June 30, 2025. 2.6 Amendment. The City and FG Creative wish to amend the Agreement to increase the total compensation in recognition of expanded services to be provided during the remainder of the Agreement’s third term, covering the period from July 1, 2024, through June 30, 2025. 2.7 Amendment Authority. This Amendment No. 5 is authorized pursuant to Section 3.9 (N) Amendment; Modification of the Agreement. 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 Three Hundred Twenty-Five Thousand Dollars and no cents ($325,000) for fiscal year 2024-25 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. 425 Contract No. C43370 Page 2 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 3.3 Continuing Effect of Agreement. Except as amended by this Amendment No. 5, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 5. From and after the date of this Amendment No. 5, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 5. 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. 5. 3.5 Severability. If any portion of this Amendment No. 5 is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. 3.6 Counterparts. This Amendment No. 5 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] 426 Contract No. C43370 Page 3 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 SIGNATURE PAGE FOR AMENDMENT NO. 5 TO HE 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. 5 to the Professional Consultant Services Agreement for Marketing Services as of the day and year first above written. CITY OF PALM DESERT FG CREATIVE, A LIMITED LIABILITY COMPANY City Clerk QC: _____ Contract QC: _____ Insurance: _____ Initial Review _____ Final Approval 427 Contract No. C43370 Page 4 of 5 Revised 01-2024 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, 2024 - June 30, 2025, at $325,000. 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 $3,350 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 work ed 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. Total $ 50,000 428 Contract No. C43370 Page 5 of 5 Revised 01-2024 BBK 72500.00001\32445060.1 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. 429 430 Page 1 of 7 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Martin Alvarez, Director of Economic Development SUBJECT: AWARD CONTRACT NO. C44200D TO AMERICAN LANDSCAPE, INC., OF CANOGA PARK, CALIFORNIA, FOR THE MOUNTAIN VIEW GOLF COURSE TURF REDUCTION PROJECT (PROJECT NO. MLS00005) RECOMMENDATION: 1. Award Contract No. C44200D to American Landscape, Inc., of Canoga Park, California, for the Mountain View Golf Course Turf Reduction Project at Desert Willow Golf Resort (DWGR) in the amount of $1,766,084.80. 2. Authorize the Finance Department to set aside 10% contingency in the amount of $176,600 for unforeseen circumstances. 3. Appropriate $1,942,685 from the unobligated Golf Course Capital Fund Balance to Account No. 4414195-4809200, DWGR Capital. 4. Authorize the City Attorney to make any necessary non -monetary changes to the agreement. 5. Authorize the City Manager to execute the agreement, approve written contract change order requests up to the contingency amount, and any documents necessary to effectuate the actions taken herewith. 6. Authorize the City Manager to execute the Notice of Completion (NOC) and authorize the City Clerk to file the NOC upon satisfactory completion of the project. BACKGROUND: The City-owned Desert Willow Golf Resort consists of two 18-hole golf courses. The Firecliff and Mountain View courses were opened in 1996 and 1998, respectively. The golf resort was developed with a vision to provide amenities to both Palm Desert residents and visitors and as an economic development tool to attract new timeshare units, retail, and hotel development. The design intent of the Firecliff Course was to provide a championship -style course that would challenge the highly skilled and potentially be used as part of a professional golf tournament. The design intent of the Mountain View Course was to provide a challenge to avid golfers while providing playability for the average player. Over the years of heavy golf utilization on both courses averaging 80,000 rounds per year, the golf courses have experienced wear and tear. In 2009, the City entered a professional services contract with Hurdzan Golf (original golf course architect) to develop a long-term capital improvement master plan. Hurdzan evaluated the condition of both courses including their playability in relation to the original design intent. During their site visits and golf course 431 City of Palm Desert Award Contract for Desert Willow Mountainview Golf Course Turf Removal Project Page 2 of 7 evaluations, the architect determined that over the years, both golf course greens have become smaller in size; the aggressive growth of the Bermuda grass has encroached onto the greens, the tee boxes have endured significant wear and tear, and bunkers required work to bring playability back to the original design. Based on th e architect’s prioritization of work, the Mountain View Golf Course greens and bunkers were renovated in 2010. The renovation of the Firecliff Course bunkers was completed in 2016, which included removal/consolidation of bunkers, grading/drainage improve ments, and new bunker sand installation. The bunker renovation project ultimately removed approximately two acres of bunkers to improve playability and pace of play. The bunker renovation project is the only major renovation completed at the Firecliff Course since the course opened in 1997. The renovation to the Firecliff greens and tee boxes were placed on hold due to budget constraints. In addition to renovations necessary to improve the playability of the course, in 2019 the City approved the DSRT Surf Specific Plan, located on Lot Pad B and adjacent to the golf courses. The Specific Plan includes a 6-acre surf lagoon, surf center building, hotel, villas, clubhouse, and recreational and maintenance facilities. To reduce water demand associated with the Specific Plan, the developer is required to implement a Turf Reduction Program, which includes the removal of over one million square feet of turf (22+ acres) within the Desert Willow Golf Courses and replacing it with drought-tolerant plant materials and water efficient irrigation systems. Based on original recommendations of the golf course architect and the master improvement plan, the Firecliff Course was prioritized to be renovated. In the summer of 2022, staff conducted a competitive consultant selection process, and the City Council awarded contracts to Hurdzan Golf, the original golf course architect and Hermann Design Group for golf course renovation design and construction support services. Given the complexity of the golf course renovation s and the specialty type of construction work, staff initiated a contractor pre-qualification process in 2023. At the conclusion of the pre-qualification process, staff, the design consultants, and the construction management team reviewed and approved two contractors to be eligible to bid on the Firecliff Renovation Project: American Landscape – Canoga Park, CA Wadsworth Golf Construction – Plainfield, IL At the conclusion of the formal bid process, staff only received one bid from American Landscape. Wadsworth indicated that they had several other projects scheduled and were not able to provide a bid. In December of 2023, the City Council awarded a contract to American Landscape. At the conclusion of the Firecliff Renovation Project, the total project cost was $5,301,756.75 and DSRT Surf reimbursed the City $319,121.50 for their portion of the turf reduction work. The Firecliff Renovation Project was completed by American Landscape in the summer of 2024. The project included a renovation of all the greens, the practice green, re-leveling all tee boxes, relocating Hole 10, and 11-acres of turf reduction. 432 City of Palm Desert Award Contract for Desert Willow Mountainview Golf Course Turf Removal Project Page 3 of 7 Mountain View Golf Course Turf Reduction Project: According to the approved DSRT Surf conditions of approval and mitigation measures, the developer must reimburse the City for a portion of the turf removal costs on both golf courses before the Certificate of Occupancy can be issu ed for the DSRT Surf lagoon and surf center building. The lagoon and surf center are expected to be completed by mid -spring 2026. To align with DSRT Surf’s targeted opening in spring 2026 and to minimize disruption to the golf course during peak season, completing the project in summer 2025 is ideal. If the project is not completed in summer 2025, the City will need to work with DSRT Surf to amend the development agreement to ensure they can still open as scheduled without completion of the turf reduction project. On March 17, 2025, staff issued a request for bids to the two pre -qualified golf course contractors. A pre-bid meeting was held on April 3, 2025, and bids were due by April 21, 2025. Only one bid was received, from American Landscape. Staff foll owed up with Wadsworth Golf Construction to understand why they did not submit a bid; Wadsworth explained that their summer schedule is fully booked and they would not be able to meet the required project timeline. Below is the bid summary that was submitted by American Landscape: Base Bid Mountain View Turf Reduction 18-Holes (With Decomposed Granite Ground Cover) $1,478,553.40 Bid Alternate 1 Planting Enhancements Installation of plants, cobble, and decomposed granite in key areas $438,427.50 Base Bid Total $1,916,980.90 Base Bid (Revised) Modification to dust control, and decomposed granite unit pricing $1,345,597.40 Bid Alternate 1 Planting Enhancements (Revised) Modification irrigation, and reduction in plant maintenance period $420,487.40 Revised Base Bid Total $1,766,084.80 Note: Revised Bid results in a cost savings of $150,896.10 Analysis: After receiving only one bid, staff, along with consultants Hurdzan Golf and Hermann Design Group, conducted a thorough evaluation of the proposal. The team met with American Landscape to review all construction line items and the schedule of values to ensure the bid reflected current industry standards. Through this detailed review, staff identified cost -saving opportunities and successfully reduced the original Base Bid and Alternate 1 from $1,916,980.90 to $1,766,084.80. The final bid was confirmed to be in line with industry norms. Additionally, the 433 City of Palm Desert Award Contract for Desert Willow Mountainview Golf Course Turf Removal Project Page 4 of 7 DSRT Surf developer will reimburse the City $675,321.40 for the turf reduction portion of the project. Analysis & Capital Projects Context: This project is a critical component of the City’s Capital Improvement Program (CIP). It supports multiple strategic objectives: Infrastructure Reinvestment: The project maintains and enhances a major City-owned asset through turf reduction and modernization of irrigation systems. Sustainability: Aligns with water conservation mandates and regional drought response goals. Economic Development Support: Helps fulfill mitigation requirements tied to the DSRT Surf resort project, ensuring public infrastructure is ready to support adjacent private investment. Fiscal Responsibility: Leverages outside funding from the DSRT Surf developer to reduce net City costs and future maintenance expenses. The project was identified in the Desert Willow Master Plan and is consistent with the City's CIP priorities for reinvesting in aging infrastructure, improving operational efficiency, and ensuring long-term viability of public amenities. Strategic Plan: This project will advance the following goals of the Strategic Plan: Priority 1 - Energy & Sustainability: Reduce per capita consumption of energy and water. Priority 4 - Energy & Sustainability: Encourage owners of all existing properties to voluntarily retrofit them to obtain reductions in energy and water usage. Priority 1 - Land Use, Housing & Open Space: Enhance Palm Desert as a first-class destination for premier shopping and national retail businesses. Priority 3 - Parks & Recreation: Make recreational and exercise opportunities pervasive in all public spaces. Legal Review: This report has been reviewed by the City Attorney’s office. FINANCIAL IMPACT: Funding for the Desert Willow Golf Course Renovation Projects have not been budgeted in the Golf Course Capital Fund (Account No. 4414195-4809200). Sufficient funds are available in Fund Balance to appropriate the requested amount of $1,942,68 5. Future golf course related capital projects will need to be closely monitored to ensure revenue to support them coincides with their timing. There is no impact to the General Fund with this action. 434 City of Palm Desert Award Contract for Desert Willow Mountainview Golf Course Turf Removal Project Page 5 of 7 The following table provides the current project budget and costs. 435 City of Palm Desert Award Contract for Desert Willow Mountainview Golf Course Turf Removal Project Page 6 of 7 Authorized Item Contract No. Budget Cost/Contract 1/1/2020 Carryover Funds - $ 404,790.00 2/1/2022 Hurdzan Professional - Consulting Services A42830 $ 50,000.00 9/29/2022 Herman Design Group - Design Services C44200 $ 305,100.00 3/9/2023 HR Green - Construction Management A44920 $ 49,690.00 9/6/2023 Hermann Design Group - Amend 1 C44200 $ 10,000.00 12/14/2023 Appropriation - CC MTG 12/14 ITEM 14c - $ 4,473,396.75 12/14/2023 American Landscape - Construction C44200B $ 4,083,396.75 7/26/2024 Hermann Design Group - Amend 2 C44200 $ 9,085.00 8/19/2024 American Landscape - CO 1 C44200B $ 93,599.00 8/26/2024 Hermann Design Group - Amend 3 C44200 $ 12,000.00 9/10/2024 American Landscape - CO 2 C44200B $ 292,985.00 9/12/2024 Appropriation - CC Mtg. 09.12.24 - 13.f - DW - $ 443,570.00 $ - 9/12/2024 American Landscape - CO 3 C44200B $ 395,901.00 9/12/2024 American Landscape - Unused Contingency C44200B $ - 5/8/2025 Hermann Design Group - Amend 4 C44200 $ 57,500.00 5/8/2025 Desert Willow Repurposed Funds $ 40,000.00 5/22/2025 American Landscape – Construction C44200D $ 1,766,084.80 5/22/2025 Contingency $ 176,600.00 5/22/2025 Appropriation Needed $ 1,942,685.00 Project Budget $ 7,304,441.75 Contract Total $ 7,301,941.55 Firecliff Developer Reimb $ (319,121.50) Mountain View Developer Reimb $ (675,321.40) 436 City of Palm Desert Award Contract for Desert Willow Mountainview Golf Course Turf Removal Project Page 7 of 7 Net Cost to City $ 6,307,498.65 ATTACHMENTS: 1. Contract 2. Performance Bonds 3. Contractor Bid Form 4. Revised Contractor Bid Form 437 438 Contract No. ___________ 1 Revised 01-2024 BBK 72500.00001\32374943.1 CITY OF PALM DESERT CONTRACT FOR CONSTRUCTION This Agreement is made and entered into this 1st day of June, 2025, 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 American Landscape, Inc., a Corporation, with its principal place of business at 7013 Owensmouth Avenue, Canoga Park, CA 91303 ("Contractor"). WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: Approximately 11-acres of Turf Reduction and Landscaping Improvements on the Mountain View Course at Desert Willow Golf Resort Project No. MLS00005 (hereinafter referred to as “the Project”). Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. ARTICLE 2. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 90 Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One Million, Seven Hundred and Sixty-Six Thousand, Eighty-Four Dollars and Eighty Cents ($1,766,084.80). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. ARTICLE 4. LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of $ 1,000 per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule, or Project milestones established pursuant to the Contract. 439 Contract No. ___________ 2 Revised 01-2024 BBK 72500.00001\32374943.1 ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders Permits Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. 440 Contract No. ___________ 3 Revised 01-2024 BBK 72500.00001\32374943.1 ARTICLE 7. INDEMNIFICATION AND INSURANCE. A. Indemnification 1. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify, and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: (a) Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; (b) Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; (c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; (d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Co ntract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. 2. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees, and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in 441 Contract No. ___________ 4 Revised 01-2024 BBK 72500.00001\32374943.1 enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. 3. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. B. Insurance 1. Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide, and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 2. General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 3. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 4. Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions: A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (a) Pay on behalf of wording as opposed to reimbursement; and (b) Concurrency of effective dates with primary policies; and (c) Policies shall “follow form” to the underlying primary policies; and (d) Insureds under primary policies shall also be insureds under the umbrella or excess policies. 442 Contract No. ___________ 5 Revised 01-2024 BBK 72500.00001\32374943.1 5. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers. 6. Fidelity Coverage. Reserved. 7. 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. C. Other Provisions or Requirements 1. Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 2. Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees, or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 3. Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self -insurance shall be called upon to protect it as a named insured. 4. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy 443 Contract No. ___________ 6 Revised 01-2024 BBK 72500.00001\32374943.1 shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. 5. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract. 6. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. 7. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, it s elected or appointed officers, agents, officials, employees, and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. 8. Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 9. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 10. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage. 11. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage 444 Contract No. ___________ 7 Revised 01-2024 BBK 72500.00001\32374943.1 provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10 07 04) and completed operations (i.e. ISO Form CG 20 37 07 04) of Contractor. 12. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 13. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 14. Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub- contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. 15. City’s Right to Revise Requirements. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) Days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 16. Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. 17. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Contract, and that involve or may involve coverage under any of the required liability policies. 18. Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 19. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully 445 Contract No. ___________ 8 Revised 01-2024 BBK 72500.00001\32374943.1 required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. ARTICLE 9. FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [SIGNATURES ON FOLLOWING PAGE] 446 Contract No. ___________ 9 Revised 01-2024 BBK 72500.00001\32374943.1 SIGNATURE PAGE TO LONG FORM CONSTRUCTION AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND AMERICAN LANDSCAPE, 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 AMERICAN LANDSCAPE, INC, A CORPORATION Contractor’s License Number and if applicable City Clerk QC: _____ Contracts QC: _____ Insurance: _____ Initial Review _____ Final Approval _____ Bonds 447 448 Contract No. ___________ Exhibit “C” Revised 11-2-20 BBK 72500.00001\32374915.1 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to American Landscape, Inc., (hereinafter referred to as the “Contractor”) an agreement for Mountain View Golf Course Turf Reduction and Landscaping Project at Desert Willow Golf Resort (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 June 15, 2025, (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, American Landscape, Inc. , the undersigned Contractor and U.S. Specialty Insurance Company_ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of One Million, Seven Hundred Sixty Six Thousand, Eighty-Four Dollars and Eighty Cents ($1,766,084.80), 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 449 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] 450 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____. (Corporate Seal) (Corporate Seal) Surety 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: NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. American Landscape, Inc. 451 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 452 Contract No. ___________ NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney Notary Acknowledgment 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 453 Contract No. ___________ to local representatives of the bonding company must also be attached. 454 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 May 22, 2025, has awarded to American Landscape, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows: Turf Reduction and Landscaping at Desert Willow Golf Resort – Mountain View Course 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 June 15, 2025, (“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 One Million, Seven Hundred Sixty Six Thousand, Eighty-Four Dollars and Eighty Cents ($1,766,084.80) 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 pursua nt 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 455 Contract No. ___________ 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] 456 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) (Corporate Seal) Surety 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. American Landscape, Inc. 457 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 458 Contract No. ___________ Notary Acknowledgment 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 459 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. 460 461 462 463 464 ! 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CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Ryan Gayler, Capital Projects Manager SUBJECT: AWARD CONSTRUCTION CONTRACT TO AMERICAN ASPHALT SOUTH, INC., FOR THE 2025 SLURRY SEAL PROJECT, PROJECT NO. CSL00001 RECOMMENDATION: 1. Award a construction contract to American Asphalt South, Inc., of Riverside, CA, in the amount of $2,710,175 for the 2025 Slurry Seal Project (Project No. CSL00001 / Project ID 2025-IFB-181). 2. Appropriate $1,210,175 from Unobligated Measure A Fund s to the project Account No. 2134134-4400200. 3. Authorize the City Attorney to make any non -monetary changes to the agreement. 4. Authorize the City Manager to execute the agreement and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). 5. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the Project. BACKGROUND/ANALYSIS: The 2025 Slurry Seal Project involves the application of a rubberized slurry seal to various streets throughout the City of Palm Desert. Th e project will also include minor asphalt repairs and crack sealing, which help prevent the intrusion of sand and water, thereby extending the service life of the pavement. The rubberized slurry material offers enhanced elasticity, providing greater durability compared to conventional slurry seal. The project scope includes residential neighborhoods off Shepherd Lane and Hovley Lane West, as well as major arterial roadways such as Frank Sinatra Drive, Country Club Drive, Monterey Avenue, and Hovley Lane East. To minimize traffic disruptions, slurry work on arterial streets is scheduled to occur at night. The project was advertised via the City’s bid portal (OpenGov), and four bids were received electronically on April 29, 2025: Contractor Location Base Bid Bid Alt #1 Bid total American Asphalt South, Inc. Riverside, CA $2,710,175 $146,300 $2,856,475 Pavement Coatings Company Jurupa Valley, CA $2,861,280 $136,800 $2,998,080 Union Pavement Services Jurupa Valley, CA $3,088,061 $139,650 $3,227,711 Roy Allan Slurry Seal, Inc. Santa Fe Springs, CA $179,669,805 $146,300 $179,816,105 471 City of Palm Desert Award Contract to American Asphalt South, Inc., for the 2025 Slurry Seal Project (CLS00001) Page 2 of 2 This project was bid with a bid alternate. The low bidder was established by calculating the sum of the base bid amount, plus Bid Alternate No. 1. The bid alternate is for the installation of a plastic curb and delineator system (Shur-Curb) to demarcate bike lanes from vehicular traffic lanes. During several community meetings, many attendees expressed concerns with the proposed system. Few residents expressed support for the delineators. Based on the input received, staff recommends awarding the contract for the base bid only and excluding Bid Alternate No. 1. Staff has reviewed the low bid submitted by American Asphalt South, Inc. and determined it complies with all contract requirements. The company has previously completed multiple projects for the City with satisfactory results, and staff maintains a strong working relationship with the contractor. Roy Allan Slurry Seal, Inc. submitted a bid that contained a significant error, pricing the slurry seal material at $22.00 per square foot instead of the intended $0.22 per square foot. Even if corrected, their total bid would not have been the lowest at $3,398,105. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Funding for this project is included in the approved Capital Improvement Project (CIP) list for FY 2024-25 in Measure A Account No. 2134134-4400200 for street improvements. However, an additional $1,210,175 will need to be appropriated to fully fund the project. This appropriation will reduce the total amount of Measure A funds requested in the FY 2025-26 CIP Plan. This action will have no impact on the General Fund. Project – CSL00001 2025 Slurry Seal Project FY 24/25 Budget Appropriation Request Total Amount Measure A – Account No. 2134134-4400200 $ 1,500,000 $1,210,175 $2,710,175 Construction: American Asphalt South, Inc. ( 2,710,175) Balance Available $1,500,000 $1,210,175 $0 ATTACHMENTS: 1. Construction Contract 2. Contractor Bid 3. Payment and Performance Bonds 4. Vicinity Map 472 Contract No. ___________ 1 Revised 01-2024 BBK 72500.00001\32374943.1 CITY OF PALM DESERT CONTRACT FOR CONSTRUCTION This Agreement is made and entered into this 22nd day of May, 2025, 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 American Asphalt South, Inc., an S Corporation, with its principal place of business at 2990 Myers Street, Riverside, CA 92503. ("Contractor"). WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: 2025 Slurry Seal Project Project No. CSL00001 (hereinafter referred to as “the Project”). This project will slurry seal and restripe various streets throughout the City of Palm Desert. The project will consist of mobilization, traffic control, striping removals, cold milling, crack fill, crack seal, construct rubberized slurry seal, paint road striping and markings, install preformed thermoplastic markings, install reflective pavement markers, and installation of traffic signal loop detectors. Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. ARTICLE 2. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 90 Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Two million seven hundred ten thousand one hundred seventy-five Dollars ($2,710,175). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. ARTICLE 4. LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature 473 Contract No. ___________ 2 Revised 01-2024 BBK 72500.00001\32374943.1 of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages the sum of One Thousand Dollars ($1,000) per day for each and every calendar day of delay beyond the Contract Time or beyond any completion schedule, construction schedule, or Project milestones established pursuant to the Contract. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, or retention may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders Permits Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. 474 Contract No. ___________ 3 Revised 01-2024 BBK 72500.00001\32374943.1 All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. ARTICLE 7. INDEMNIFICATION AND INSURANCE. A. Indemnification 1. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify, and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: (a) Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; (b) Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; (c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; (d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to 475 Contract No. ___________ 4 Revised 01-2024 BBK 72500.00001\32374943.1 faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. 2. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees, and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. 3. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. B. Insurance 1. Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide, and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 2. General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard I SO “insured contract” language will not be accepted. 3. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 4. Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions: 476 Contract No. ___________ 5 Revised 01-2024 BBK 72500.00001\32374943.1 A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (a) Pay on behalf of wording as opposed to reimbursement; and (b) Concurrency of effective dates with primary policies; and (c) Policies shall “follow form” to the underlying primary policies; and (d) Insureds under primary policies shall also be insureds under the umbrella or excess policies. 5. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers. 6. Fidelity Coverage. Reserved. 7. 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. C. Other Provisions or Requirements 1. Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 2. Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees, or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 477 Contract No. ___________ 6 Revised 01-2024 BBK 72500.00001\32374943.1 3. Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self -insurance shall be called upon to protect it as a named insured. 4. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. 5. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract. 6. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. 7. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. 8. Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 9. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any 478 Contract No. ___________ 7 Revised 01-2024 BBK 72500.00001\32374943.1 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. 10. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage. 11. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10 07 04) and completed operations (i.e. ISO Form CG 20 37 07 04) of Contractor. 12. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 13. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 14. Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub- contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. 15. City’s Right to Revise Requirements. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) Days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 16. Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. 17. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Contract, and that involve or may involve coverage under any of the required liability policies. 479 Contract No. ___________ 8 Revised 01-2024 BBK 72500.00001\32374943.1 18. Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 19. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. ARTICLE 9. FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [SIGNATURES ON FOLLOWING PAGE] 480 Contract No. ___________ 9 Revised 01-2024 BBK 72500.00001\32374943.1 SIGNATURE PAGE TO LONG FORM CONSTRUCTION AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND AMERICAN ASPHALT SOUTH, 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 AMERICAN ASPHALT SOUTH, INC., AN S CORPORATION Contractor’s License Number and if applicable City Clerk QC: _____ Contracts QC: _____ Insurance: _____ Initial Review _____ Final Approval _____ Bonds 481 482 Contract No. ___________ Exhibit “C” Revised 11-2-20 BBK 72500.00001\32374915.1 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to American Asphalt South, Inc., (hereinafter referred to as the “Contractor”) an agreement for the 2025 Slurry Seal 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 April 14, 2025, (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, American Asphalt South, 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 Two million seven hundred ten thousand one hundred seventy- five Dollars, ($2,710,175), 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 483 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] 484 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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: NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. 485 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 486 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 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 487 Contract No. ___________ PAYMENT BOND KNOW ALL PERSONS BY THESE PRESENTS That WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed May 22, 2025, has awarded to American Asphalt South, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows: 2025 Slurry Seal 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 April 14, 2025, (“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 Two million seven hundred ten thousand one hundred seventy-five Dollars, ($2,710,175) 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 488 Contract No. ___________ modification of any terms of payment or extension of the time for any payment pert aining 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] 489 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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. 490 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 491 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 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 492 Item No.Description Quantity Units Unit Cost Total 1 Mobilization 1 LS $25,000.00 $25,000.00 2 Traffic Control 1 LS $138,500.00 $138,500.00 3 Micro Mill Asphalt Concrete 8,000 LF $3.85 $30,800.00 4 Remove Striping, Pavement Markings, and Pavement 1 LS $181,500.00 $181,500.00 5 Rubberized Crack Seal / HMA Crack fill 1 LS $376,333.00 $376,333.00 6 Type II Rubberized Slurry Seal 8,100,000 SF $.17 $1,377,000.00 7 Signing and Striping - Slurry Seal 1 LS $572,000.00 $572,000.00 8 Install Traffic Signal Loop Detectors 12 EA $753.50 $9,042.00 Sub-Total $2,710,175.00 Item No.Description Quantity Units Unit Cost Total A-1 Furnish and Install Shur-Curb 380 EA $385.00 $146,300.00 Grand Total Bid 2,856,475.00 2025 Slurry Seal Project American Asphalt South, Inc. Slurry Seal - Base Bid Slurry Seal - Bid Alternate #1 493 494 HOVLEY LN EHOVLEY LN E PO R T O L A A V E PO R T O L A A V E COUNTRY CLUB DRCOUNTRY CLUB DR CO O K S T CO O K S T COUNTRY CLUB DRCOUNTRY CLUB DR HOV L E Y L N E HOV L E Y L N E CO O K S T CO O K S T MAGNESIA FALLS DRMAGNESIA FALLS DR SA N P A B L O A V E SA N P A B L O A V E EL D O R A D O D R EL D O R A D O D R HOVLEY LN EHOVLEY LN E OA S I S C L U B D R OA S I S C L U B D R COUNTRY CLUB DRCOUNTRY CLUB DR WA S H I N G T O N S T WA S H I N G T O N S T FRANK SINATRA DRFRANK SINATRA DR EL D O R A D O D R EL D O R A D O D R TAM A R I S K R O W D R TAM A R I S K R O W D R INTER S T A T E 1 0 INTER S T A T E 1 0 CO O K S T CO O K S T FRANK SINATRA DRFRANK SINATRA DR PO R T O L A A V E PO R T O L A A V E MO N T E R E Y A V E MO N T E R E Y A V E MO N T E R E Y A V E MO N T E R E Y A V E PO R T O L A A V E PO R T O L A A V E GERALD FORD DRGERALD FORD DR CO O K S T CO O K S T GERA L D F O R D D R GER A L D F O R D D R DINAH SHORE DRDINAH SHORE DR INTE R S T A T E 1 0 INTE R S T A T E 1 0 HOVLEY LN WHOVLEY LN W PO R T O L A A V E PO R T O L A A V E HWY 111HWY 111 TO W N C E N T E R W A Y TO W N C E N T E R W A Y MO N T E R E Y A V E MO N T E R E Y A V E FRED WARING DRFRED WARING DR WA R N E R T R L WA R N E R T R L FRED WARING DRFRED WARING DR HWY 111HWY 111 EL PASEOEL PASEO DE E P C A N Y O N R D DE E P C A N Y O N R D CO O K S T CO O K S T FAIRWAY DRFAIRWAY DR MOUNTAIN DRMOUNTAIN DR SH A D O W SH A D O W MO N T E R E Y A V E MO N T E R E Y A V E EL PASEOEL PASEO FRED WARING DRFRED WARING DR EL D O R A D O D R EL D O R A D O D R VAR N E R R D VAR N E R R D VAR N E R R D VAR N E R R D MILES AV EMILES AV E DINA H S H O R E D R DINA H S H O R E D R Copyright nearmap 2015 2025 Slurry Seal Project 7,862,397 SQ FT I VICINITY MAP495 496 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Ryan Gayler, Capital Projects Manager SUBJECT: AWARD CONSTRUCTION CONTRACT TO VANCE CORPORATION FOR THE EL PASEO STREET REHABILITATION PROJECT, PROJECT NO. CST00024 – CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION RECOMMENDATION: 1. Make a finding that the project is categorically exempt from further review under the California Environmental Quality Act (CEQA) Guidelines, pursuant to Class 1, Section 15301 (Existing Facilities), and authorize the City Engineer to submit a Notice of Exemption. 2. Award a construction contract, including Bid Alternates 1 and 2, to Vance Corporation of Beaumont, CA, in the amount of $4,803,488.92 for the El Paseo Street Rehabilitation Project (Project No. CST00024 / Project ID 2025-IFB-182). 3. Authorize an appropriation in the amount of $1,493,489 from Unobligated Gas Tax Funds to Account No. 2114314-4400200, and in the amount of $250,000 from Unobligated Capital Bond Funds to Account No. 4514679-5000102. 4. Authorize the Director of Finance to set aside 10% contingency in the amount of $480,000. 5. Authorize the City Attorney to make any non -monetary changes to the agreement. 6. Authorize the City Manager to execute the agreement and any written requests for change orders up to the contingency amount, amendments, and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). 7. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the project. BACKGROUND/ANALYSIS: The asphalt on El Paseo, from Highway 74, east to Highway 111, has significantly deteriorated. To assess the appropriate rehabilitation method, the City engaged Applied Research Associates, Inc. (ARA) to perform pavement testing and analysis. ARA’s testing —consisting of core samples, ground-penetrating radar, and falling weight deflectometer—concluded that a full- depth reclamation (FDR) approach was most appropriate. Under this method, the existing asphalt and base will be pulverized and blended to create a more durable 5-inch aggregate base, followed by a 5-inch layer of warm-mix asphalt concrete. This treatment will restore structural integrity and extend pavement life. In addition to street rehabilitation, the project will include the reconstruction of the two existing raised mid -block crossings on El Paseo, and the construction of three new mid-block crossings. The crossings will be upgraded from an asphalt concrete walking surface to pavers. 497 City of Palm Desert Award Contract for the El Paseo Street Rehabilitation Project (CST00024) Page 2 of 4 The rehabilitation of El Paseo from Highway 74, easterly to Highway 111 was initially scheduled for last summer. The project would have required the removal of the dining decks on El Paseo. There was concern that the operators of the dining decks did not have enough time to prepare for the removal and possible reconstruction of the decks, so the street r ehabilitation was rescheduled for this summer. Staff have been providing information to the dining deck operators as well as the El Paseo Business Improvement District about the upcoming project. The dining deck operators have been notified of the need to remove the dining deck prior to the start of the street construction. Bid Alternate #1 was included so that the contractor can be directed to remove any dining decks in the event they were not removed by the owner . The project was advertised via the City’s bid portal (OpenGov), and five bids were received electronically on May 8, 2025: Contractor Location Base Bid Bid Alt #1 Bid Alt #2 Bid total Vance Corporation Beaumont, CA $4,563,402.98 $32,251.24 $207,834.70 $4,803,488.92 Granite Construction Company Indio, CA $4,566,020.00 $35,000.00 $236,500.00 $4,837,520.00 Calmex Engineering Bloomington, CA $4,708,580.00 $35,000.00 $247,400.00 $4,990,980.00 R.J. Noble Company San Diego, CA $4,877,998.00 $24,500.00 $236,500.00 $5,138,998.00 Matich Corporation San Bernardino, CA $4,837,250.00 $44,700.00 $261,000.00 $5,142,950.00 The low bidder is determined by the base bid amount, plus Alternates #1 and #2. Bid Alternate #1 is to remove the dining decks from the street. Bid Alternate #2 is to adjust CVWD valves and manholes. The low bidder, Vance Corporation, has completed projects of similar size and scope recently, and they are qualified to perform the work. Construction of the project is anticipated to begin in mid-June. Due to the nature of the work and existing conditions, several challenges are anticipated. El Paseo experiences high traffic volumes, and street rehabilitation will require substantial temporary traffic control measures. The project involves removing the existing pavement to a depth of ten inches, and the street is too narrow to safely maintain traffic alongside construction equipment. As a result , vehicular traffic will be reduced to one lane in each direction and shifted to the opposite side of the roadway. Construction will be completed in phases, divided into segments from Highway 74 to San Pablo Avenue, San Pablo Avenue to Portola Avenue, and Portola Avenue to Highway 111. The contractor will provide nearby businesses with timely updates regarding traffic control measures and work schedules, including the finalized phasing plan. Changeable message signs will also be deployed to give drivers advance notice of upcoming work. Additionally, the contractor will be utilizing the city-owned lot on the northeast corner of Ocotillo and Tumbleweed as a staging area. 498 City of Palm Desert Award Contract for the El Paseo Street Rehabilitation Project (CST00024) Page 3 of 4 Pursuant to Contract No. C31910 between the City and the Coachella Valley Water District (CVWD), all paving projects include an additive alternate bid item to raise the valves and manholes to the new finished surface on behalf of CVWD. CVWD has the option of accepting the price from the City’s contractor and reimbursing the City for the wo rk or using their own forces to perform the work. CVWD has accepted the price of Bid Alternate #2 provided by the contractor for the subject alternate bid item, which is $207,834.70. Therefore, the City will be reimbursed by CVWD for work done on their behalf upon completion of the project. Public Notice The contractor will provide advance notice to businesses regarding construction schedules and traffic control via flyers and changeable message signs. In addition, the City will perform periodic visits to the businesses and maintain a webpage on Engage Palm Desert to provide real-time updates on the project. Legal Review: This report has been reviewed by the City Attorney’s Office. Environmental Review: Staff recommends that the City Council find that the project is categorically exempt from CEQA, pursuant to Class 1, Section 15301 (Existing Facilities) under the CEQA Guidelines, as the project involves the repair and maintenance of existing streets, sidewalks, gutters, and similar facilities. FINANCIAL IMPACT: Funding for this project is included in the approved FY 2024-25 Capital Improvement Project (CIP) list, with $3,540,000 allocated from various funds for street improvements (Measure A, Gas Tax, and Capital Bond). However, an appropriation of $1,743,489 will be needed to fully fund the project. Staff will reduce the Budget Request in the FY 2025-26 CIP for Gas Tax and Capital Bond Funds prior to formal adoption in June. This action will have no impact on the General Fund. Project – CST00024 El Paseo Street Rehabilitation Project Approved Budget Appropriation Request Total Amount Gas Tax (2114134-4400200) 2,790,000 $1,493,489 $4,283,489 Measure A (2134134-4400200) 500,000 500,000 Capital Bond Funds (4514679-5000102) 250,000 250,000 500,000 Construction: Vance Corporation (rounded) (4,803,489) Construction: Contingency ( 480,000) Balance Available $ 3,540,000 $ 1,743,489 $0 499 City of Palm Desert Award Contract for the El Paseo Street Rehabilitation Project (CST00024) Page 4 of 4 ATTACHMENTS: 1. Contract Agreement 2. Performance and Payment Bonds 3. Contractor’s Bid 4. Notice of Exemption - CEQA 5. Vicinity Map 500 Contract No. ___________ 1 Revised 01-2024 BBK 72500.00001\32374943.1 CITY OF PALM DESERT CONTRACT FOR CONSTRUCTION This Agreement is made and entered into this 22nd day of May, 2025, 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 Vance Corporation, an S Corporation, with its principal place of business at 459 Egan Avenue, Beaumont, CA 92223 ("Contractor"). WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: El Paseo Street Rehabilitation Project Project No. CST00024 (hereinafter referred to as “the Project”). The project will rehabilitate the asphalt concrete street section from Highway 74, east to Highway 111. The items of work consist of mobilization, traffic control, lowering valves and manholes, concrete removal, cold milling, full depth reclamation, pulverizing the existing street section into base material, constructing asphalt concrete paving, installing raised mid-block crossings with pavers and warning lighting, portland cement concrete improvements, installing traffic signal loops and pull boxes, striping with paint, construction of storm drain infrastructure, and raising valve and manhole covers to grade. Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. ARTICLE 2. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 100 Calendar Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Four million eight hundred three thousand four hundred eighty-eight and 92/100 Dollars ($4,803,488.92). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. 501 Contract No. ___________ 2 Revised 01-2024 BBK 72500.00001\32374943.1 ARTICLE 4. LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000.00 for each and every Day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. Notwithstanding the foregoing, City and Contractor acknowledge and agree that a milestone date of September 30, 2025 has been established whereby all work must be completed on El Paseo from Highway 74 to Portola Avenue due to certain Special Events scheduled within the project limits that are to take place in October 2025. Consequently, the City and Contractor further acknowledge and agree that liquidated damages shall increase to $5,000.00 for each and every Day beyond the September 30, 2025 milestone date. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 502 Contract No. ___________ 3 Revised 01-2024 BBK 72500.00001\32374943.1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders Permits Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. ARTICLE 7. INDEMNIFICATION AND INSURANCE A. Indemnification 1. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify, and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: (a) Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; (b) Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, 503 Contract No. ___________ 4 Revised 01-2024 BBK 72500.00001\32374943.1 as the result of defects or negligence in Contractor’s construction of the improvements; (c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; (d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Co ntract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. 2. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees, and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. 3. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. B. Insurance 1. Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide, and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 2. General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 3. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Contract, including coverage for 504 Contract No. ___________ 5 Revised 01-2024 BBK 72500.00001\32374943.1 any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 4. Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions: A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (a) Pay on behalf of wording as opposed to reimbursement; and (b) Concurrency of effective dates with primary policies; and (c) Policies shall “follow form” to the underlying primary policies; and (d) Insureds under primary policies shall also be insureds under the umbrella or excess policies. 5. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers. 6. Fidelity Coverage. Reserved. 7. Pollution Liability Insurance. Reserved. C. Other Provisions or Requirements 1. Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 2. Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder 505 Contract No. ___________ 6 Revised 01-2024 BBK 72500.00001\32374943.1 by Contractor, its agents, representatives, employees, or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 3. Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self -insurance shall be called upon to protect it as a named insured. 4. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. 5. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract. 6. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. 7. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. 8. Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 506 Contract No. ___________ 7 Revised 01-2024 BBK 72500.00001\32374943.1 9. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. 10. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage. 11. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10 07 04) and completed operations (i.e. ISO Form CG 20 37 07 04) of Contractor. 12. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 13. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 14. Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub- contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. 15. City’s Right to Revise Requirements. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) Days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 16. Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be 507 Contract No. ___________ 8 Revised 01-2024 BBK 72500.00001\32374943.1 eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. 17. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Contract, and that involve or may involve coverage under any of the required liability policies. 18. Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 19. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. ARTICLE 9. FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [SIGNATURES ON FOLLOWING PAGE] 508 Contract No. ___________ 9 Revised 01-2024 BBK 72500.00001\32374943.1 SIGNATURE PAGE TO LONG FORM CONSTRUCTION AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND VANCE 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 VANCE CORPORATION, AN S CORPORATION Contractor’s License Number and if applicable City Clerk QC: _____ Contracts QC: _____ Insurance: _____ Initial Review _____ Final Approval _____ Bonds 509 510 Contract No. ___________ Exhibit “C” Revised 11-2-20 BBK 72500.00001\32374915.1 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to Vance Corporation, (hereinafter referred to as the “Contractor”) an agreement for the El Paseo Street Rehabilitation 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 April 24, 2025, (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, Vance Corporation, 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 Four million eight hundred three thousand four hundred eighty- eight and 92/100 Dollars, ($4,803,488.92), 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 511 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] 512 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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: NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. 513 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 514 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 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 515 Contract No. ___________ PAYMENT BOND KNOW ALL PERSONS BY THESE PRESENTS That WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed May 22, 2025, has awarded to Vance Corporation, hereinafter designated as the “Principal,” a contract for the work described as follows: El Paseo Street Rehabilitation 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 April 24, 2025, (“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 Four million eight hundred three thousand four hundred eighty-eight and 92/100 Dollars, ($4,803,488.92) 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 516 Contract No. ___________ 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] 517 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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. 518 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 519 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 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 520 Item No.Description Quantity Units Unit Cost Total 1 Mobilization 1 LS $130,811.46 $130,811.46 2 Traffic Control 1 LS $212,830.72 $212,830.72 3 Dust Control 1 LS $191,582.35 $191,582.35 4 Earthwork 1 LS $6,471.32 $6,471.32 5 Remove Concrete and Other Improvements 1 LS $82,792.28 $82,792.28 6 Cold Mill AC Pavement - 1.5" minimum 700 SF $4.43 $3,101.00 7 Pulverize Road Section 10" - 3-step process 450000 SF $.92 $414,000.00 8 13000 SF $1.99 $25,870.00 9 450000 SF $2.28 $1,026,000.00 10 450000 SF $1.16 $522,000.00 14 900 SF $18.88 $16,992.00 18 2 EA $289,708.32 $579,416.64 26 2 EA $19,575.01 $39,150.02 Item No.Description Quantity Units Unit Cost Total Item No.Description Quantity Units Unit Cost Total 521 522 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. – 2. 3.– site (preferably a USGS 15’ or 7 1/2’ 4.– (b)– 5. 6. 7. 8. (a) (b) (c) (d) – (e) (f) (g) – 9. 523 Notice of Exemption FORM “B” facilities. Lead Agency Contact Person:Ryan Gayler, Project Manager Telephone: (760) 776-6393 If filed by applicant: Attach Preliminary Exemption Assessment (Form “A”) before filing. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Was a public hearing held by the lead agency to consider the exemption? Yes No If yes, the date of the public hearing was: July 13, 2023 Signature:__________________________________ Date:_______________ Title: City Engineer 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. 524 MO N T E R E Y A V E ROYAL PALM DR LA S FL O R E S LN LA S P A L M A S A V E AL L E Y ALESSANDRO DR ALLEYALLEY SAGE LN ALESSANDRO DRALLEY PALM DESERT DR N CLUB CIRCLE DRJUNIPER CIR CL U B CIR C L E DR JOSHUA TREE ST SA N P A B L O A V E PALM DESERT DR NPALM DESERT DR N SAN GORGONIO WAY SA N MA T E O AV E SA N MA R C O S AV E SA N DI E G O AV E SA N MA R C O S AV E SAN ANTONIO CIR SAN CLEMENTE CIR SAN BENITO CIR ALLEY RU S S E L L LN LI N G O LN SA N J O S E AV E SAN PASCUAL AVE SAN JUAN AVE SAN LUIS REY AVE SAN CARLOS AVE SA N R A F A E L A V E SAN JOSE AVE SAN LUIS REY AVE SAN JOSE AVE SAN JACINTO AVE SA N J U A N A V E PALM DESERT DR S SA G E L N SANTA ANITA AVE HWY 74 CATALINA WAY GUADALUPE AVE SIERRA VISTA EL CORTEZ WAY CATALINA WAY GUADALUPE AVE HAHN RD TUMBLEWEED LN SH A D O W M O U N T A I N D R PO R T O L A A V E LU P I N E L N JUNIPER ST PINYON ST SA N L U I S RE Y A V E HWY 111 CANDLEWOOD ST PALM DESERT DR S EL PASEO PO R T O L A A V E VE R B A S A N T A D R OC O T I L L O D R SHADOW MOUNTAIN DR JOSHUA TREE ST PR I C K L Y PE A R L N LARREA ST SA N A N S E L M O A V E CATALINA WAY SAN PABLO AVE LU P I N E L N SA N P A B L O A V E LA R K S P U R L N LA R K S P U R L N SHADOW MOUNTAIN DR SHADOW LAKE DRSAN LUIS REY AVE HWY 111 HW Y 7 4 CHICORY ST JUNIPER ST PINYON ST JO S H U A T R E E S T HWY 111 CHICORY ST PALM DESERT DR S PAROSELLA ST CATALINA WAY EL CORTEZ WAY PEPPERGRASS ST QU A I L B R U S H A V E LA N T A N A A V E MO U N T A I N V I E W A V E EL PASEO ALLEY LARREA ST LA N T A N A A V E SHADOW MOUNTAIN DR EL PASEO GA R D E N S Q ALESSANDRO DR SAN MARINO WAY DE ANZA WAY EL PASEO SAN MARINO CIR HAHN RD Copyright nearmap 2015 El Paseo Street Rehabilitation Project I VICINITY MAP525 526 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Neal Ennis, Project Manager Ryan Lamb, Senior Project Manager SUBJECT: AWARD CONSTRUCTION CONTRACT TO MATICH CORPORATION FOR THE ELDORADO DRIVE REHABILITATION PROJECT, PROJECT NO. CST00023 RECOMMENDATION: 1. Make a finding that the project is categorically exempt from further review under the California Environmental Quality Act (CEQA) Guidelines, pursuant to Class 1, Section 15301 (Existing Facilities), and authorize the City Engineer to submit a Notice of Exemption. 2. Award a construction contract to Matich Corporation, of San Bernardino, CA, in the amount of $2,777,695.60 for the Eldorado Drive Rehabilitation Project, which includes the Base Bid of $2,735,535.60 and Bid Alternate #1 in the amount of $42,160. 3. Authorize the Director of Finance to set aside a 10% contingency in the amount of $278,000. 4. Authorize the City Attorney to make necessary non -monetary changes to the agreement. 5. Authorize the City Manager to execute the agreement and any written requests for change orders up to the contingency amount, amendments, and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). 6. Authorize the City Manager to execute the Notice of Completion (NOC) and the City Clerk to file the NOC upon satisfactory completion of the Project. BACKGROUND/ANALYSIS: The asphalt on Eldorado Drive, between Hovley Lane East and Country Club Drive, has significantly deteriorated. To assess the appropriate rehabilitation method, the City engaged Applied Research Associates, Inc. (ARA) to perform pavement testing and analysis. ARA’s testing—consisting of core samples, ground-penetrating radar, and falling weight deflectometer—concluded that a full-depth reclamation (FDR) approach was most appropriate. Under this method, the existing asphalt and base will be pulverized and blended to create a more durable 8-inch aggregate base, followed by a 5-inch layer of warm-mix asphalt concrete. This treatment will restore structural integrity and extend pavement life. Staff recommends that the City Council find that the project is categorically exempt from CEQA , pursuant to Class 1, Section 15301 (Existing Facilities) under the CEQA Guidelines, as the project involves the repair and maintenance of existing streets, sidewalks, gutters, and similar facilities. 527 City of Palm Desert Award Contract to Matich Corporation for Eldorado Drive Rehabilitation Project (CST00023) Page 2 of 3 On June 13, 2024, the City contracted with NAI Consulting for engineering design services. Community outreach began with a public meeting on March 26, 2025, where over 2,500 households in adjacent neighborhoods were invited. Due to low turnout, staff conducted follow- up meetings with the affected HOAs: April 16, 2025 – Sunterrace (Sarazen Way and Eldorado Dr.) April 17, 2025 – The Lakes (Red River Rd. and Eldorado Dr.) April 23, 2025 – Indian Ridge (Red River Rd. and Eldorado Dr.) May 14, 2025 – Tierra Vista (Appian Way and Eldorado Dr.) In addition to rehabilitating the roadway, the project includes restriping bike lanes to align with the City’s General Plan, which designates Eldorado Drive as a Balanced Arterial. While the overall project received broad community support, many residents expressed concerns about the proposed Shur-Curb delineators, with only a few in favor of their use. Shur-Curb delineators are traffic control devices used to physically separate bike lanes from vehicle lanes. T hey typically consist of 2-foot-high tubular plastic posts mounted on a low -profile base that are bolted directly to the pavement. Since the delineators are optional, lack strong public support, and are not consistent with a balanced arterial design, staff recommend excluding them from the contractor’s scope of work, thereby removing Bid Alternate #2 from consideration. Requests for Bids The project was advertised via the City’s bid portal (OpenGov), and five bids were received electronically on April 29, 2025: Contractor Location Base Bid Bid Alt #1 Subtotal Bid Alt #2 (excluded) Matich Corporation San Bernardino, CA $2,735,535.60 $42,160.00 $2,777,695.60 $110,050.00 Vance Corporation Beaumont, CA $2,748,376.21 $74,103.07 $2,822,479.28 $121,919.90 Granite Construction Company Indio, CA $2,822,855.00 $63,045.00 $2,885,900.00 $108,500.00 All American Asphalt Corona, CA $2,976,863.00 $79,900.00 $3,056,763.00 $78,120.00 R.J. Noble Company Orange, CA $3,101,570.90 $63,050.00 $3,164,620.90 $77,500.00 The all-inclusive engineer’s estimate was $3,250,000. The project was bid with Additive Bid Items, #1 Raise CVWD valves and manholes, and #2 Furnish and install Shur -Curb delineators, but the low bidder is determined by the Base Bid only. Pursuant to Contract No. C31910 between the City and the Coachella Valley Water District (CVWD), the bid included Bid Alternate #1 to raise valves and manholes to the final surface elevation. CVWD has agreed to reimburse the City for this work at the contractor’s quot ed price of $42,160, bringing the total contract amount to $2,777,696 (rounded). 528 City of Palm Desert Award Contract to Matich Corporation for Eldorado Drive Rehabilitation Project (CST00023) Page 3 of 3 As the low bidder, Matich Corporation has successfully completed many paving projects for the City of Palm Desert and staff are confident in their ability to complete this project. If approved, the project is expected to begin early July 2025 and be completed by the end of September 2025. Public Notice The contractor will be conveying information regarding traffic control and work schedules to the nearby residents. Changeable message signs will be utilized as needed to provide advanced notice for drivers. In addition to any public outreach by the contractor, the City has scheduled public meetings with the residents that will be affected by the project. The City will mail out informational notices and is maintaining a page on Engage Palm Desert so interested parties can obtain up-to-date information on the project. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Funding for this project is included in the approved Capital Improvement Project (CIP) list for Fiscal Year FY 2024-25 and will be funded through a combination of special revenue funds allocated for street improvements. These funding sources include Measure A, SB1 Gas Tax, and Assessment District R/M Funds. There is no impact to the General Fund. Project-CST00023 Eldorado Drive Rehabilitation Budget Expenditures Available Budget SB1 Gas Tax (211-4311-4391505-Street Resurfacing) 1,300,000 Measure A (213-4311-4332000-Street Resurfacing) 800,000 AD Annual R/M Funds (304/306/308/351-4311-4332000) 1,585,336 Engineering Design (NAI Consulting) 60,200 Topographical Survey (TKE Engineering) 3,380 Community Engagement Mtg (Xpress Graphics) 2,020 Construction: Matich Corporation 2,777,696 10% Contingency 278,000 Totals $3,685,336 $3,121,296 $564,040 Assessment District R/M Funds identified above are from eligible 1915 Imp Bond AD’s 87-1, 92-1, 94-2 Sunterrace, 91-1 Indian Ridge ATTACHMENTS: 1. Construction Contract 2. Contractor Bid 3. Payment and Performance Bonds 4. CEQA Notice of Exemption 529 530 Contract No. ______________ 1 Revised 01-2024 BBK 72500.00001\32374943.1 CITY OF PALM DESERT CONTRACT FOR CONSTRUCTION This Agreement is made and entered into this 22nd day of May, 2025, 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 Matich Corporation, a Corporation, with its principal place of business at 1596 Harry Sheppard Blvd., San Bernardino, CA 92408 ("Contractor"). WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows: ARTICLE 1. SCOPE OF WORK. The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project: Eldorado Drive Rehabilitation Project Project No. CST00023 (hereinafter referred to as “the Project”). The scope of work consists of Cold Milling asphalt, Pulverizing Road Sections, warm-mix asphalt overlay, striping and signage, various concrete demolition and construction efforts on cross gutters and ADA compliant curb ramps, various other items as shown on plans. Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation. ARTICLE 2. TIME FOR COMPLETION. Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 90 Calendar Days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work. ARTICLE 3. CONTRACT PRICE. The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of Two Million Seven Hundred Seventy-Seven Thousand Six Hundred Ninety-Five Dollars and Sixty Cents, ($2,777,695.60). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule. 531 Contract No. ______________ 2 Revised 01-2024 BBK 72500.00001\32374943.1 ARTICLE 4. LIQUIDATED DAMAGES. Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000.00 for each and every Calendar Day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications 532 Contract No. ______________ 3 Revised 01-2024 BBK 72500.00001\32374943.1 Approved and fully executed Change Orders Permits Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents. All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties. ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE. Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state, and local laws, rules, and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work. ARTICLE 7. INDEMNIFICATION AND INSURANCE A. Indemnification 1. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify, and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against: (a) Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers; (b) Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; (c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, 533 Contract No. ______________ 4 Revised 01-2024 BBK 72500.00001\32374943.1 resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; (d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Co ntract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party. 2. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees, and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees, and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782. 3. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article. B. Insurance 1. Without limiting Contractor’s indemnification of City, and prior to commencement of Work, Contractor shall obtain, provide, and maintain at its own expense during the term of this Contract, policies of insurance of the type and amounts described below and in a form that is satisfactory to City. 2. General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage, and a $4,000,000 completed operations aggregate. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. 3. Automobile Liability Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Work to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. 4. Umbrella or Excess Liability Insurance. Contractor may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such 534 Contract No. ______________ 5 Revised 01-2024 BBK 72500.00001\32374943.1 circumstances, Contractor may obtain and maintain an umbrella or excess liability insurance policy with limits that will provide bodily injury, personal injury, and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability, automotive liability and employer’s liability. Such policy or policies shall include the following terms and conditions: A drop-down feature requiring the policy to respond in the event that any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; (a) Pay on behalf of wording as opposed to reimbursement; and (b) Concurrency of effective dates with primary policies; and (c) Policies shall “follow form” to the underlying primary policies; and (d) Insureds under primary policies shall also be insureds under the umbrella or excess policies. 5. Workers’ Compensation Insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000) for Contractor’s employees in accordance with the laws of the State of California, Section 3700 of the Labor Code. In addition, Contractor shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California, Section 3700 for all of the subcontractor’s employees. Contractor shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers. 6. Fidelity Coverage. RESERVED 7. 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. C. Other Provisions or Requirements 1. Proof of Insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this contract. City reserves the right to require complete, certified copies of all required insurance policies, at any time. 535 Contract No. ______________ 6 Revised 01-2024 BBK 72500.00001\32374943.1 2. Duration of Coverage. Contractor shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees, or subcontractors. Contractor must maintain general liability and umbrella or excess liability insurance for as long as there is a statutory exposure to completed operations claims. The City and its officers, officials, employees, and agents shall continue as additional insureds under such policies. 3. Primary/Non-Contributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self -insurance shall be called upon to protect it as a named insured. 4. Products/Completed Operations Coverage. Products/completed operations coverage shall extend a minimum of three (3) years after project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the Policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officials, officers, agents, and employees, shall be included as additional insureds under the Products and Completed Operations coverage. 5. City’s Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these requirements, or is canceled and not replaced, City has the right, but not the duty, to obtain the insurance it deems necessary, and any premium paid by City will be promptly reimbursed by Contractor, or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract. 6. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. 7. Waiver of Subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against the City, its elected or appointed officers, agents, officials, employees, and volunteers, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, its elected or appointed officers, agents, officials, employees, and volunteers and shall require similar written express waivers and insurance clauses from each of its subcontractors. 8. Enforcement of Contract Provisions (non estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor 536 Contract No. ______________ 7 Revised 01-2024 BBK 72500.00001\32374943.1 of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. 9. Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverag e 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. 10. Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) Day notice of cancellation (except for nonpayment for which a ten (10) Day notice is required) or nonrenewal of coverage for each required coverage. 11. Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. Coverage shall be at least as broad as coverage provided by ISO’s Owners, Lessees, or Contractors Additional Insured Endorsement for the ongoing (i.e. ISO Form CG 20 10 07 04) and completed operations (i.e. ISO Form CG 20 37 07 04) of Contractor. 12. Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 13. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. 14. Pass Through Clause. Contractor agrees to ensure that its sub-consultants, sub- contractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the Project will be submitted to City for review. 15. City’s Right to Revise Requirements. The City or its Risk Manager reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) Days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. If the City reduces the insurance requirements, the change shall go into effect immediately and require no advanced written notice. 537 Contract No. ______________ 8 Revised 01-2024 BBK 72500.00001\32374943.1 16. Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self -insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. 17. Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Contract, and that involve or may involve coverage under any of the required liability policies. 18. Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the Work. 19. Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions, where applicable, shall include, but shall not be limited to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures. ARTICLE 8. PREVAILING WAGES. Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site. ARTICLE 9. FALSE CLAIMS. Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [SIGNATURES ON FOLLOWING PAGE] 538 Contract No. ______________ 9 Revised 01-2024 BBK 72500.00001\32374943.1 SIGNATURE PAGE TO LONG FORM CONSTRUCTION AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND MATICH 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 MATICH CORPORATION, A CORPORATION Contractor’s License Number and City Clerk QC: _____ Contracts QC: _____ Insurance: _____ Initial Review _____ Final Approval _____ Bonds 539 540 PRICE TABLES Line Item Description Quantity Unit of Measure Unit Cost Total 1 MOBILIZATION 1 LS $273,000.00 $273,000.00 2 TRAFFIC CONTROL 1 LS $151,500.00 $151,500.00 3 DUST CONTROL 1 LS $7,000.00 $7,000.00 4 REMOVE AND DISPOSE OF EXISTING TREE 3 EA $2,500.00 $7,500.00 5 EARTHWORK 1 LS $28,500.00 $28,500.00 6 SAWCUT. REMOVE, AND DISPOSE OF EXISTING, CONCRETE AND REMOVALS PER PLAN 1 LS $84,000.00 $84,000.00 7 CONSTRUCT CURB AND GUTTER PER CITY STANDARD NO. 403, INCLUDE 3" DOWELS INTO ADJACENT EXISTING CONCRETE CURB AND GUTTER 690 LF $65.00 $44,850.00 8 CONSTRUCT CURB PER CITY STANDARD NO. 400, INCLUDE 3" DOWELS INTO ADJACENT EXISTING CONCRETE CURB AND GUTTER 35 LF $52.00 $1,820.00 9 CONSTRUCT MONOLITHIC RETAINING CURB PER PLAN 160 LF $52.00 $8,320.00 10 CONSTRUCT SIDEWALK PER CITY OF PALM DESERT STD NO. 300 1600 SF $9.00 $14,400.00 11 CONSTRUCT CROSS GUTTER PER CITY OF PALM DESERT STD NO. 404 MOD. 8475 SF $21.00 $177,975.00 12 CONSTRUCT CURB RAMP PER RIVERSIDE COUNTY STD PL AN NO. 403 MOD., CASE PER PLAN 14 EA $5,900.00 $82,600.00 13 2" GRIND AND ASPHALT CONCRETE OVERLAY 4710 SF $2.80 $13,188.00 14 PULVERIZE ROAD SECTION FROM EXISTING (DEPTH PER PL ANS - THREE STEP PROCESS) 380000 SF $1.20 $456,000.00 5/7/25, 11:23 AM Matich Corporation Response https://procurement.opengov.com/governments/76010/projects/159477/sourcing/proposals/305374 1/3 541 Additive Bid Alternate No.1 15 CONSTRUCT ASPHALT CONCRETE OVER PULVERIZED BASE (DEPTH PER PLAN) 380000 SF $3.14 $1,193,200.00 16 FULL DEPTH GRIND ASPHALT CONCRETE AND COMPACT EXISTING BASE 2035 SF $2.36 $4,802.60 17 CONSTRUCT FULL DEPTH ASPHALT CONCRETE 2800 SF $7.40 $20,720.00 18 FURNISH AND INSTALL 4" PVC CONDUIT SLEEVE (COLOR PER PL AN) 630 LF $26.00 $16,380.00 19 MODIFY AND RESTORE EXISTING LANDSCAPING, IRRIGATION, AND HARDSCAPE AS NEEDED TO SATISFACTION OF CITY 1 LS $15,000.00 $15,000.00 20 REPLACE TRAFFIC SIGNAL LOOPS PER PALM DESERT STD NO. 900 - Type E Modified, 22 EA $640.00 $14,080.00 21 SUPPLY 2 CHANNEL DETECTOR CARDS MODEL C-1200-8-TS2 4 EA $800.00 $3,200.00 22 INSTALL NEW DLC IN CONDUIT RUNS 6&7 FOR PHASE 4B DETECTION 1 LS $3,800.00 $3,800.00 23 INSTALL NEW DLC IN CONDUIT RUNS 2, 3, 4, 5, & 6 FOR PHASE 8B DETECTION 1 LS $4,100.00 $4,100.00 24 REMOVE EXISTING PULL BOX AND FURNISH AND INSTALL NEW NO. 6(T) TRAFFIC SIGNAL PULL BOX PER CALTRANS STD PL AN ES-8B 6 EA $3,100.00 $18,600.00 25 SIGNING AND STRIPING PER PLANS AND CALTRANS DETAILS (EXCLUDES SHUR-CURB) 1 LS $91,000.00 $91,000.00 Total $2,735,535.60 Line Item Description Quantity Unit of Measure Unit Cost Total 26 LOWER/RAISE WATER VALVE FRAME AND COVER PER CVWD STANDARDS 33 EA $1,240.00 $40,920.00 5/7/25, 11:23 AM Matich Corporation Response https://procurement.opengov.com/governments/76010/projects/159477/sourcing/proposals/305374 2/3 542 Additive Bid Alternate No.2 27 LOWER/RAISE SEWER MANHOLE FRAME AND COVER PER CVWD STANDARDS 1 EA $1,240.00 $1,240.00 Total $42,160.00 Line Item Description Quantity Unit of Measure Unit Cost Total 28 FURNISH AND INSTALL SHUR-CURB (or Approved Equal) BIKE L ANE DETECTORS 310 EA $355.00 $110,050.00 Total $110,050.00 5/7/25, 11:23 AM Matich Corporation Response https://procurement.opengov.com/governments/76010/projects/159477/sourcing/proposals/305374 3/3 543 544 Contract No. ___________ Exhibit “C” Revised 11-2-20 BBK 72500.00001\32374915.1 PERFORMANCE BOND KNOW ALL PERSONS BY THESE PRESENTS: THAT WHEREAS, the City of Palm Desert (hereinafter referred to as “City”) has awarded to Matich Corporation, (hereinafter referred to as the “Contractor”) an agreement for Eldorado Drive Pavement Rehabilitation 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 April 11, 2025, (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, Matich Corporation, 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 Two Million Seven Hundred Seventy Seven Thousand Six Hundred Ninety Five Dollars and Sixty Cents, ($2,777,695.60), 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 545 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] 546 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20____. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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: NOTE: A copy of the Power-of-Attorney authorizing the person signing on behalf of the Surety to do so must be attached hereto. 547 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 548 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 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 549 Contract No. ___________ PAYMENT BOND KNOW ALL PERSONS BY THESE PRESENTS That WHEREAS, the City of Palm Desert (hereinafter designated as the “City”), by action taken or a resolution passed May 22, 2025, has awarded to Matich Corporation, hereinafter designated as the “Principal,” a contract for the work described as follows: Eldorado Drive Pavement Rehabilitation 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 April 11, 2025, (“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 Two Million Seven Hundred Seventy Seven Thousand Six Hundred Ninety Five Dollars and Sixty Cents, ($2,777,695.60) 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 550 Contract No. ___________ 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] 551 Contract No. ___________ IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__. (Corporate Seal) Contractor/ Principal By ____________________ ____ Printed name: _______________________ Title: ______________________________ (Corporate Seal) Surety By: ________________________________ Printed Name: _______________________ Attorney-in-Fact (Attach Attorney-in-Fact Certificate) 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. 552 Contract No. ___________ NOTE: This acknowledgment is to be completed for Contractor/Principal. Notary Acknowledgment 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 553 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 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 554 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 Count of: Riverside 2724 Gateway Dr, Riverside, CA 92507 1. Project Title: City of Palm Desert – Eldorado Drive Street Rehabilitation Project 2. Project Applicant: City of Palm Desert 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): In the public right-of-way of Eldorado Drive from Hovley Ln. East to Country Club Drive, Palm Desert, CA 92260. 4. (a) Project Location – City: Palm Desert (b) Project Location – County: Riverside 5. Description of nature, purpose, and beneficiaries of Project: Rehabilitate the street section and remove and replace damaged pedestrian and drainage facilities. 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: City of Palm Desert. 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: Class 1 (c) – State CEQA Guidelines § Section 15301 (e) Declared Emergency. (Pub. Res. Code § 21080(b)(3); State CEQA Guidelines § 15269(a)) (f) Statutory Exemption. State Code section number: (Public Resources Code (CEQA Statute) § 21080.35) (g) Other. Explanation: General Rule – Section 15061(b)(3) 9. Reason why project was exempt: This proposal is for the repair and maintenance of existin public streets, sidewalks, utters and similar 555 Notice of Exemption FORM “B” facilities. 10. Lead Agency Contact Person: Ryan Lamb, Senior Project Manager Telephone: (760) 776-6416 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: Signature:__________________________________ Date:_______________ Title: City Engineer 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. 556 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Christopher Gerry, Senior Project Manager SUBJECT: APPROVAL OF REVISED DESIGN CONCEPT FOR CITYWIDE WAYFINDING SIGNAGE (PROJECT NO. MST00003) RECOMMENDATION: Approve the revised wayfinding design concept for the Citywide Wayfinding Master Plan. BACKGROUND/ANALYSIS: The City of Palm Desert (City) has been undertaking a comprehensive effort to update and unify its directional and entry monument signage. Wayfinding signs guide residents and visitors to key destinations, while monument signs mark major city entry points and reflect Palm Desert’s visual identity. In 2023, the City Council directed staff to develop a new Wayfinding Master Plan and redesign three monument signs to replace and enhance the aging system. Additional background information on these efforts are included in a previous staff report (Attachment 1). On February 27, 2025, the City Council considered preliminary designs for citywide wayfinding and entry monument signage. During the meeting, the City Council expressed support for the proposed entry monument design (Attachment 2) but requested further refinement of the wayfinding signage (Attachment 3) to better reflect Palm Desert’s design identity. The refinement focused on adjusting the color palette, specifically shifting to softer, more neutral shades to better complement Palm Desert’s design character and surrounding environm ent. In response to this direction, the City’s design consultant revised the wayfinding concept (Attachment 4). On April 7, 2025, the Active Transportation Subcommittee reviewed and recommended support for the revised wayfinding concept. On April 17, 2025, the updated entry monument and wayfinding signage designs were presented to the El Paseo Parking and Business Improvement District Board, which also provided supportive comments. Staff is returning to the City Council to request consideration of the revised wayfinding signage design. Approval of the design will allow staff and the consultant to finalize detailed specifications and complete the draft Wayfinding Master Plan. Upon selection of a preferred design, staff will return to the City Council for final review and adoption of the full plan. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no direct fiscal impact associated with providing design input at this stage. The City and consultant have preliminary Rough Order of Magnitude (ROM) cost estimates, which will be 557 City of Palm Desert Wayfinding Signage Design Page 2 of 2 refined as design preferences are finalized and the plan is completed. Current cost estimates range from approximately $934,000 to $2,391,000. To support project delive ry, the proposed Fiscal Year 2025/26 budget includes an allocation of $1,800,000. These projections will become clearer with the indication of a preferred design and detailed specifications. Future financial considerations, including fabrication, installation, and maintenance, will be presented to the City Council for review and approval before implementation. The following table illustrates current project design anticipated expenses: Description Budget Contracts Balance 2134300-5000910 $250,000 Design Wayfinding Master Plan – A46980 $87,500 Contingency – A46980 $20,000 Design Entry Monument – A47210 $50,000 Contingency – A47210 $5,000 Total $250,000 $162,500 $87,500 ATTACHMENTS: 1. Staff Report (February 27, 2025) 2. Preferred Entry Monument Signage Design 3. Previously Presented Wayfinding Signage Design 4. Recommended Wayfinding Monument Signage Design 558 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: February 27, 2025 PREPARED BY: Randy Chavez, Deputy Director of Public Works SUBJECT: CITYWIDE WAYFINDING AND ENTRY MONUMENT SIGNAGE (PROJECT NO. MST00003) RECOMMENDATION: Provide feedback on the designs for the citywide wayfinding and entry monument signage. BACKGROUND/ANALYSIS: Background In March 2023, the City Council held a study session to evaluate citywide wayfinding and entry monument signage. Wayfinding signage includes approximately 76 existing directional signs distributed throughout Palm Desert, originally approved in March 2008. Entry monument signs refer to more prominent signage installed at five locations, serving as landmarks at the City's gateways to welcome visitors and reinforcing Palm Desert’s identity. The presentation can be found as Attachment 1. During a previous study session, the City Council provided feedback to staff regarding both types of signage. First, the City Council requested that staff develop a new wayfinding master plan (Plan) for consideration. Second, they directed staff to design three entry monument signs, including two replacements at existing locations and one at a new location, as identified below: • Washington Street and Fred Waring Drive (replace) • Monterey Avenue and Dinah Shore Drive (replace) • Cook Street and Dinah Shore Drive / Interstate 10 (new) Request for Proposal In November 2023, the City issued a Request for Proposal (RFP) to design the Wayfinding Master Plan (Project ID: 2023-RFP-221) and received seven proposals. In January 2024, the City executed an agreement with Selbert Perkins Design (Consultant) to develop the Plan to replace the existing system. The agreement can be found as Attachment 2. In January 2024, the City issued an RFP for the design of new entry monument signs (Project ID: 2023-RFP-223), receiving five proposals. Initially, the City considered the potential benefits of issuing separate RFPs for wayfinding and entry monument signage. However, selecting the same consultant for both projects proved to be the more practical choice with ensuring greater design consistency. Therefore, the City executed an additional agreement with the Consultant in March 2024. The agreement can be found as Attachment 3. 559 City of Palm Desert Wayfinding and Monument Signage Page 2 of 3 Community Survey: Initial Feedback In March 2024, the City conducted a community survey to gather feedback regarding the existing wayfinding system. The City received 73 responses. The survey results displayed that 71% of respondents found the current wayfinding signage useful, highlighting its clear visibility, helpful directional guidance, and alignment with key destinations. However, 29% indicated concerns, citing issues with readability, lack of signage for certain areas, and the need for improved district identification. The results can be found as Attachment 4. Active Transportation Program Subcommittee: Initial Design Concepts Taking into consideration City Council and community feedback, the City and Consultant have undergone a thorough review and design process, resulting in the creation of several design concepts for initial consideration. In October 2024, those designs concepts were presented to the Active Transportation Program (ATP) Subcommittee for preliminary feedback. Based upon those comments, the Consultant reduced and revised the concepts for further public consideration. The agenda item and presentation can be found as Attachment 5. Community Survey: Design Concept Input In November 2024, the City released an additional community survey to receive input from on three design sets of wayfinding and monument signage. The City received 603 responses. The survey results showed that Design 1A (monument signs) and Design 1B (wayfinding) have the strongest community preference trends (i.e., most likes, fewest dislikes). The results can be found as Attachment 6. Architectural Review Commission In January 2025, the City and Consultant presented to the Architectural Review Commission (Commission) the three design sets of wayfinding and monument signage. The Commission provided valuable feedback on the concepts. Based upon those comments, the Consultant revised the concepts which are presented today. The minutes and presentation can be found as Attachment 7. Revised Design Concept Feedback Based on the design development process, community input, and previous City Council feedback, staff request the City Council to review and provide input on the three revised design sets for citywide wayfinding and entry monument signage. Specifically, staff seek guidance on preferred design elements and modifications before finalizing the next iteration, which subsequently will be presented to the City Council in the future. The presentation can be found as Attachment 8. Legal Review: This report has been reviewed by the City Attorney’s Office. 560 City of Palm Desert Wayfinding and Monument Signage Page 3 of 3 FINANCIAL IMPACT: There is no direct financial impact associated with providing design input at this stage. The City and Consultant have preliminary Rough Order of Magnitude (ROM) cost estimates, which will be refined as design preferences are finalized and the Plan is completed. Cost projections will become clearer with the indication of a preferred design and detailed specifications. Future financial considerations, including fabrication, installation, and maintenance, will be presented to the City Council for review and approval before implementation. The Consultant will discuss ROM cost estimates and considerations during the study session. The following table illustrates current project design expenses: Description Budget Expenses Balance 2134300-5000910 Design Wayfinding Master Plan – A46980 Contingency – A46980 Design Entry Monument – A47210 Contingency – A47210 Total $250,000 $162,500 $87,500 ATTACHMENTS: 1. Study Session Presentation (March 2023) 2. Professional Services Agreement: Wayfinding (January 2024) 3. Professional Services Agreement: Monument Signs (March 2024) 4. Community Survey: Initial Feedback (March 2024) 5. ATP Subcommittee: Agenda Item and Presentation (October 2024) 6. Community Survey: Design Concept Input (November 2024) 7. Architectural Review Commission: Minutes and Presentation (January 2025) 8. Study Session Presentation 561 562 PHASE: TASK 2: CONCEPT DESIGN MARCH 19, 2025 PROJECT: CITY OF PALM DESERT WAYFINDING MASTER PLAN 8 CONCEPT 2 DESIGN 3’- 6” 5’-10” 10’-0” GATEWAY MONUMENTLOCATION 1 A01 GATEWAY MONUMENTLOCATION 2 A02 GATEWAY MONUMENTA03 563 PHASE: TASK 2: CONCEPT DESIGN MARCH 19, 2025 PROJECT: CITY OF PALM DESERT WAYFINDING MASTER PLAN 11 CONCEPT 2 DESIGN 564 PHASE: TASK 2: CONCEPT DESIGN FEBRUARY 12, 2025 PROJECT: CITY OF PALM DESERT WAYFINDING MASTER PLAN 18 CONCEPT 2 DESIGN 3’- 6” 5’-10” 10’-0” Civic Center McCallum Thea t e r College of the Desert Living Desert El Paseo Directory DINING SHOPS TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT Civic Center McCallum Theater College of the Desert Living Desert El Paseo Visitor Center El Paseo Living Desert Free Parking VEHICLE DIRECTION ALTERNATE OPTION B01 VEHICLE DIRECTION B02 B03 B04VEHICULAR DIRECTIONALSMALL PEDESTRIAN DIRECTORYSTATIC 565 PHASE: TASK 2: CONCEPT DESIGN FEBRUARY 12, 2025 PROJECT: CITY OF PALM DESERT WAYFINDING MASTER PLAN 20 CONCEPT 2 DESIGN 566 567 568 569 570 571 572 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Andrea Staehle, Director of Human Resources SUBJECT: PUBLIC HEARING ON CITY VACANCIES, RECRUITMENT AND RETENTION EFFORTS AS REQUIRED BY ASSEMBLY BILL 2561 RECOMMENDATION: Hold a public hearing and receive and file the annual report on the status of City vacancies, recruitment, and retention efforts, as required by Assembly Bill 2561. BACKGROUND/ANALYSIS: California State Assembly Bill 2561 (AB 2561), approved on September 22, 2024, added Section 3502.3 to the Government Code. This law requires public agencies to present the status of their vacancies at a public hearing before their governing board at least once per fiscal year. The hearing must occur before the adoption of the City’s final budget for the upcoming fiscal year. It must also include a discussion of current recruitment and retention efforts. Additionally, the recognized employee organization must be given the opportunity to present at the hearing. The recognized employee association, the Palm Desert Employees Organization (PDEO), was notified of the opportunity to make a presentation at this public hearing. In accordance with AB 2561, if the number of vacancies exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, upon the request of the employee organization, the City shall include specified information during the public hearing. Currently, there are three (3) vacancies with positions in the PDEO, which equates to a vacancy rate of approximately 3%. As such, this threshold has not been met, and the additional reporting requirement does not apply. Current Recruitment and Retention Efforts As part of AB 2561, the City must also identify any changes to policies, procedures, or recruitment activities that impact the City’s efforts to reduce vacancies. While the City has historically experienced success in its recruitment efforts, certain specialized positions, such as Advanced Planners and Engineers, remain more challenging to fill. To address these challenges and continue attracting high-quality candidates, the Human Resources Office has implemented several enhanced strategies: Recruitment Initiatives o Enhanced Marketing and Outreach Strategies Targeted advertising across industry platforms Strategic use of social media channels Participation in job fairs 573 City of Palm Desert AB2561 Status of Vacancies Page 2 of 2 o Dedicated Recruitment Oversight A focused staff member manages the recruitment process to ensure timely communication and promote the City’s workplace culture o Streamlined Hiring Process Job Announcements with a clear timeline Candidate-friendly hiring and orientation process Retention Strategies o Professional Development Programs Internal programs designed to foster employee growth and advancement o Employee Recognition Programs Initiatives to regularly acknowledge employee contributions o Competitive Compensation and Benefits Ongoing evaluations to maintain competitive salaries and benefits o New Hire Orientation Program o Structure new hire orientation to assist in the successful integration o Flexible Schedule o Positive and Productive Workplace Culture These efforts are continuously evaluated, with adjustments based on employee and applicant feedback. Next Steps Currently, the City has not identified any changes to existing policies or procedures that negatively impact our hiring or retention efforts. However, we remain committed to evaluating and adjusting our strategies to meet the evolving needs of the City’s priorities and goals, as well as its customers. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no fiscal impact on the General Fund with this action. ATTACHMENT: 1. Assembly Bill 2561 574 Assembly Bill No. 2561 CHAPTER 409 An act to add Section 3502.3 to the Government Code, relating to public employment. [Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024.] legislative counsel’s digest AB 2561, McKinnor. Local public employees: vacant positions. Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action. This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings. The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose. This bill would make legislative findings to that effect. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs. 92 STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL 575 The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares as follows: (a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges. (c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations. SEC. 2. Section 3502.3 is added to the Government Code, to read: 3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit. (c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing: (1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. (f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501. SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the 92 — 2 — Ch. 409 576 meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings: It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public. SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law. O 92 Ch. 409 — 3 — 577 578 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 22, 2025 PREPARED BY: Carlos Flores, AICP, Interim Deputy Director Development Services SUBJECT: INTRODUCE AN ORDINANCE AMENDING PALM DESERT MUNICIPAL CODE CHAPTER 5.10 SHORT TERM RENTALS, ADOPT A POLICY FOR SHORT-TERM RENTAL HARDSHIP EXTENSIONS FOR THE ESTATE RESIDENTIAL ZONE, AND MAKING A FINDING OF EXEMPTION UNDER CEQA RECOMMENDATION: 1. Hold a public hearing and introduce an Ordinance entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, UPDATING CHAPTER 5.10 SHORT-TERM RENTALS TO UPDATE REGULATIONS FOR THE ESTATE RESIDENTIAL (RE) ZONE AND MAKING A FINDING OF EXEMPTION UNDER CEQA.” 2. Adopt a Resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A CONSOLIDATED POLICY FOR SHORT- TERM RENTAL HARDSHIP EXTENSIONS FOR THE TERMINATION AND AMORTIZATION OF SHORT-TERM RENTALS WITHIN THE HILLSIDE PLANNED RESIDENTIAL (HPR) AND ESTATE RESIDENTIAL (RE) ZONES” BACKGROUND/ANALYSIS: Background on Short-Term Rental (STR) Updates Staff has met with the Ad Hoc City Council Short-Term Rental (STR) Subcommittee over the past six months to propose an update to Chapter 5.10 of the STR Ordinance. The attached ordinance reflects the outcome of those discussions and includes several key changes to Chapter 5.10 Short-Term Rentals as follows: Key Ordinance Updates On October 10, 2024, the City Council adopted Ordinance No. 1417, which made it clear that STR rules for Planned Residential (PR) areas also apply to Hillside Planned Residential (HPR) areas. It confirmed that off -site STRs (where owner does not stay at the property during the rental) are only allowed in HPR zones if the property is in a Homeowners Association (HOA). On April 17, 2025, the committee met again to review two new concerns: 1. Estate Residential (RE) Zone: A homeowner raised concern about large STRs on 1-acre lots in the RE zone. These large homes (such as 5 -bedroom properties) were starting to feel more like mini-hotels and could change the quiet, residential feel of the neighborhood. 579 City of Palm Desert STR Code Update and Hardship Policy Page 2 of 4 2. New HOAs in HPR Zones: Some were concerned that HOAs might be newly created just to allow off-site STRs in the HPR zone. To address this, the committee suggested updating the RE zone STR rules to match those in the PR and HPR zones. They also recommended that only HOAs that existed as of October 2024 in the HPR zone can allow off-site STRs—not any created after that date. These changes mirror updates made in other parts of the STR code and reflect the City’s continued effort to ensure fair and consistent regulations across all zones Below is a summary of proposed Ordinance changes (Attachment 1): On-Site Short-Term Rentals Allows on-site Short-Term Rentals in “Estate Residential District (RE)” Allows on-site Short-Term Rentals in “ State law” Off-Site Short-Term Rentals Allows off-site Short-Term Rentals in “Estate Residential District (RE)” Allows off-site Short-Term Rentals in “Estate Residential District (RE), if term rental” Off-Site Short-Term Rentals Allows off-site Short-Term Rentals in “Hillside Planned Residential District (HPR), if governed by a Functioning HOA and the owner is permitted under state law or the current Declaration of Covenants, Conditions, and Restrictions (CC&Rs) of the Allows off-site Short-Term Rentals in “ 580 City of Palm Desert STR Code Update and Hardship Policy Page 3 of 4 term rental” Functioning HOA to operate a short- term rental” 5.10.080 “Off R zone”“Off-site short-term rentals prohibited in HPR and RE zones” 5.10.080 (A) “A new off zone will not be issued” “A new off-site short-term rental permit within the HPR or RE zone will not be issued.” 5.10.080 (B) “Existing off December 31, 2026.” “Existing off-site short-term rental permits in the HPR or RE zone may be renewed if otherwise qualified, but all such off-site short-term rental permits shall terminate, and such uses permanently cease operation, by the following dates: December 31, 2026 for short-term rental permits in the HPR zone and June 30, 2027 for short-term rental permits in the RE zone.” 5.10.080 (C) “If an existing off issued.” “If an existing off-site short-term rental permit is revoked pursuant to this chapter, and the short-term rental unit is located in the HPR or RE zone, then a new permit will not be issued.” STR Hardship Policy Changes (Attachment 2) Also on October 10, 2024, the City Council approved Resolution No. 2024 -077, which created a hardship extension policy for HPR zone STRs. This lets some STR owners apply for more time before their permits expire. The new prop osal expands that same policy to the RE zone, again keeping the rules consistent across zoning districts. Key Policy Changes: 1. Adds RE zone to the Hardship Extension Policy o The 13 existing off-site STRs in the RE zone can apply for a hardship extension, if they meet the criteria. o All other off-site STRs in RE must end by June 30, 2027. o If a permit is revoked in the RE zone, no new permit will be issued for that property. 581 City of Palm Desert STR Code Update and Hardship Policy Page 4 of 4 Legal Review: This report has been reviewed by the City Attorney’s Office. Public Notice: A ten-day public hearing notice for this item was published in the Desert Sun newspaper on Friday, May 9, 2025. Additionally, staff mailed courtesy notices to the thirteen (13) off-site STR properties located in the RE zone. Environment Review: It has been determined that this agenda item is exempt from CEQA review pursuant to Section 15061(b)(3), known as the “common sense” exemption. This determination is based on the clear assessment that there is no possibility the ordinance may have a signif icant effect on the environment. The ordinance primarily provides administrative clarifications regarding where short-term rentals are permitted, focusing on specific residential zoning areas without expanding land use or initiating new developments, thereby maintaining existing environmental baselines. It ensures operational continuity for existing short-term rentals through defined phasing out periods for specific permits, thereby preventing abrupt changes in land use intensity. The adjustments are administrative in nature and do not involve any construction, physical alterations, or increases in development intensity. The ordinance reaffirms current use regulations and does not alter existing physical environmental conditions or promote increased development, thus qualifying for the CEQA “common sense” exemption as it bears no potential for significant environmental impact. FINANCIAL IMPACT: The proposed amendments to Palm Desert Municipal Code Chapter 5.10 concerning Short - Term Rentals, along with the ad option of a policy for hardship extensions in the RE Zone, may impact the City financially in both the short and long term. Revenue from the Transit Occupancy Tax (TOT) and the Tourism Business Improvement District (TBID) assessments might fluctuate due to the regulatory changes. While a decrease in STR permits could temporarily reduce TOT and TBID income, this impact will be minor as the City has not collected significant revenue from off-site STRs in the RE Zone. Any administrative costs associated with implementing these ordinance changes and processing hardship extension applications will likely be managed with existing budget allocations, as the current staff and resources are expected to handle the adjustment without requiring additional funding. While no significant one-time expenditures are foreseen, ongoing enforcement and application processing will be recurring expenses. As a result, these expenditures are expected to remain within the current budget, assuming operational efficiencies are maintained. ATTACHMENTS: 1. Draft Ordinance - Chapter 5.10 Amendment 2. Draft Resolution – Hardship Extension Policy 3. Public Hearing Notice 582 ORDINANCE NO. 2025- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA UPDATING CHAPTER 5.10 SHORT-TERM RENTALS TO UPDATE REGULATIONS FOR THE ESTATE RESIDENTIAL (RE) ZONE AND MAKING A FINDING OF EXEMPTION UNDER CEQA. City Attorney’s Summary The purpose of this ordinance is to amend Palm Desert Municipal Code Chapter 5.10 Short-Term Rentals to clarify and update regulations, phase out off-site short-term rental permits in the Estate Residential (RE) zone, and ensure consistency with existing regulations for the Hillside Planned Residential (HPR) zone. THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Amendment to Municipal Code. Section 5.10.070 Short-term rental permit—permitted zones and prohibited unit types of Chapter 5.10 Short-Term Rentals of the Palm Desert Municipal Code is amended to read as follows: “5.10.070 Short-term rental permit—permitted zones and prohibited unit types. A. On-Site Short-Term Rentals. 1. Permitted Residential Zones: a. Estate Residential District (RE), except when governed by a Functioning HOA and the owner is prohibited under the current Declaration of Covenants, Conditions, and Restrictions (CC&Rs) of the Functioning HOA to operate a short-term rental or prohibited by State law; b. Single-Family/Mobile Home Residential District (R-1M); c. Single-Family Residential District (R-1); d. Single-Family Residential District (R-2); e. Multifamily Residential District (R-3); f. Hillside Planned Residential District (HPR), except when governed by a Functioning HOA and the owner is prohibited under the current Declaration of Covenants, Conditions, and Restrictions (CC&Rs) of the Functioning HOA to operate a short-term rental or prohibited by State law; 583 g. Planned Residential District (PR), except when governed by a Functioning HOA and the owner is prohibited under the current Declaration of Covenants, Conditions and Restrictions (CC&Rs) of the Functioning HOA to operate a short-term rental or prohibited under state law; h. Downtown Edge Transition Overlay (DEO); i. Downtown Edge District (DE); j. Downtown (D). 2. Prohibited Unit Types in All Zones: a. Apartments; b. Accessory dwelling units; c. Junior accessory dwelling units; d. Units with one bedroom or less. B. Off-Site Short-Term Rentals. 1. Permitted Residential Zones: a. Estate Residential District (RE), if governed by a Functioning HOA that is established and functioning as of June 30, 2025, and the owner is permitted under state law or the current Declaration of Covenants, Conditions, and Restrictions (CC&Rs) of the Functioning HOA to operate a short-term rental; b. Multifamily Residential District (R-3); c. Hillside Planned Residential District (HPR), if governed by a Functioning HOA that is established and functioning as of June 30, 2025, and the owner is permitted under state law or the current Declaration of Covenants, Conditions, and Restrictions (CC&Rs) of the Functioning HOA to operate a short-term rental; d. Planned Residential District (PR), if governed by a Functioning HOA and the owner is permitted under state law or the current Declaration of Covenants, Conditions, and Restrictions (CC&Rs) of the Functioning HOA to operate a short-term rental; 584 e. Downtown Edge Transition Overlay (DEO); f. Downtown Edge District (DE); g. Downtown (D). 2. Prohibited Unit Types in All Zones: a. Apartments; b. Accessory dwelling units; c. Junior accessory dwelling units.” SECTION 2. Amendment to Municipal Code. Section 5.10.080 Off-site short- term rentals prohibited in HPR zone of Chapter 5.10 Short-Term Rentals of the Palm Desert Municipal Code is renamed and amended as follows: “5.10.080 Off-site short-term rentals prohibited in HPR and RE zones. A. A new off-site short-term rental permit within the HPR or RE zone will not be issued. B. Existing off-site short-term rental permits in the HPR or RE zone may be renewed if otherwise qualified, but all such off-site short-term rental permits shall terminate, and such uses permanently cease operation, by the following dates: December 31, 2026 for short-term rental permits in the HPR zone and June 30, 2027 for short-term rental permits in the RE zone. C. If an existing off-site short-term rental permit is revoked pursuant to this chapter, and the short-term rental unit is located in the HPR or RE zone, then a new permit will not be issued.” SECTION 3. CEQA Exemption. The City Council finds that this ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3), known as the “common sense” exemption. This determination is based on the clear assessment that there is no possibility the ordinance may have a significant effect on the environment. The ordinance provides administrative clarifications regarding where short-term rentals are permitted, focusing on the Estate Residential (RE) zone without expanding land use or initiating new developments, thereby maintaining existing environmental baselines. It ensures operational continuity for existing short-term rentals through defined phasing-out periods for specific permits, preventing abrupt changes in land use intensity. The adjustments are administrative in nature and do not involve construction, physical alterations, or increases in development intensity, thus qualifying for the CEQA “common sense” exemption. 585 SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 5. Posting and Publication. The City Clerk of the City of Palm Desert, California, is hereby directed to publish a summary of 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. ADOPTED ON ___________________ , 2025. JAN HARNIK MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Desert City Council on ________ , 2025, and adopted at a regular meeting of the City Council held on __________ , 2025, 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 586 587 588 RESOLUTION NO. 2025- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ADOPTING A CONSOLIDATED POLICY FOR SHORT-TERM RENTAL HARDSHIP EXTENSIONS FOR THE TERMINATION AND AMORTIZATION OF SHORT-TERM RENTALS WITHIN THE HILLSIDE PLANNED RESIDENTIAL (HPR) AND ESTATE RESIDENTIAL (RE) ZONES WHEREAS, the City Council of the City of Palm Desert, California, on May 22, 2025, considered adopting a consolidated policy for short-term rental hardship extensions for the termination and amortization of off-site short-term rentals in the Hillside Planned Residential (HPR) and Estate Residential (RE) zones, updating the policy previously adopted for the HPR zone under Resolution No. 2024 -077; and WHEREAS, pursuant to the authority granted to the City of Palm Desert (“City”) by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare, and safety; and WHEREAS, according to the California Environmental Quality Act (CEQA), the City must determine whether a proposed activity is a project subject to CEQA. If the project is subject to CEQA, staff must conduct a preliminary assessment of the project to determine whether the project is exempt from CEQA review. If a project is not exempt, further environmental review is necessary. The application has complied with the requirements of the “2024 Local Guidelines for Implementin g the California Environmental Quality Act for the City of Palm Desert” Resolution No. 2024-035, in that the Director of Development Services has determined that the policy for short-term rental hardship extensions is exempt from CEQA review pursuant to Section 15061(b)3 in that the amendments to further regulate the use of short-term rentals will not have a significant negative impact on the environment; and WHEREAS, the City Council of the City of Palm Desert, California has determined that the proposed policy, is consistent with the General Plan and applicable state law; and WHEREAS, at said meeting, and considering all testimony and arguments, if any, of all interested persons desiring to be heard, said City Council did find the following facts and reasons to exist to approve said resolution: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California as follows: SECTION 1. The City Council hereby adopts the foregoing recitals as its findings in support of the following regulations to add a hardship extension process and further finds that the following regulations, including the eventual elimination of off-site short-term rentals in the HPR and RE zones, are beneficial and appropriate to protect the health, safety and welfare of the residents and businesses of Palm Desert within the City limits. 589 SECTION 2. The City Council hereby adopts the Consolidated Policy for Hardship Extensions attached hereto as Exhibit “A,” which shall apply to off -site short-term rental permits in both the HPR and RE zones, superseding the policy adopted under Resolution No. 2024-077 for the HPR zone. ADOPTED ON ________________ 2025 JAN HARNIK MAYOR ATTEST: ANTHONY J. MEIJA CITY CLERK I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that Resolution No. 2025-__ 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 _____________________ , 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 590 Exhibit “A” CONSOLIDATED POLICY FOR HARDSHIP EXTENSIONS PURSUANT TO PDMC SECTION 5.10.080 A. If an owner believes that termination of the short-term rental use by the applicable zone’s termination date (December 31, 2026, for the HPR zone; June 30, 2027 for the RE zone) will not provide the owner a reasonable period within which to recover the costs that the owner reasonably invested for short-term rental use, and that such costs cannot be recovered once the short-term rental use is terminated, the owner may apply to the director of development services for a hardship extension. The application for a hardship extension shall be made, processed, and acted on in accordance with the following provisions: 1. The hardship extension is available only to short-term rental owners who have consistently paid the Transit Occupancy Tax (TOT) and Tourism Business Improvement District (TBID) assessment to the city. If no TOT or TBID payments have been made to the city for a period greater than half of the permit’s effective duration, it will be presumed that no hardship exists. 2. The department of development services will receive applications for hardship extensions according to the following schedules for each zone: (a) Hillside Planned Residential (HPR) Zone: Applications began being accepted on December 1, 2024. An application will be reviewed for completeness and the owner will be notified of any deficiencies, or that the application is complete, within thirty (30) days. The city will endeavor to complete review, hear appeals and make a final determination within five (5) months of receipt of a complete application, assuming the owner reasonably cooperates in the process. Consequently, owners desiring a final decision by December 31, 2026 should have a comple te application on file by no later than August 1, 2026. (b) Estate Residential (RE) Zone: Applications will begin being accepted on July 1, 2025. An application will be reviewed for completeness, and the owner will be notified of any deficiencies, or that the application is complete, within thirty (30) days. The city will endeavor to complete review, hear appeals, and make a final determination within five (5) months of receipt of a complete application, assuming the owner reasonably cooperates in the process. Consequently, owners desiring a final decision by June 30, 2027, should have a complete application on file by no later than February 1, 2027. An extension of a short-term rental permit past the applicable termination date (December 31, 2026 for HPR; June 30, 2027 for RE) will not be granted simply because an application for a Hardship Extension is pending. 3. The owner shall sign the application under penalty of perjury. The application shall set forth the amount of additional time that the owner contends is 591 necessary, beyond the applicable termination date (December 31, 2026 for HPR; June 30, 2027 for RE) to recover the costs that the owner reasonably invested for short -term rental use and that cannot be recovered once the short-term rental use is terminated. The application shall fully set forth the owner’s justification for such additional time and shall include, along with whatever other information the owner believes to be relevant, the following information. (a) Internal Revenue Service Schedule E (Supplemental Income and Loss), Schedule C (Net Profit from Business (Sole Proprietorship), or a Schedule K1 (Partner’s Share of Current Year Income, Deductions, Credits, and Other Items) from Owner’s federal income tax returns for the years since commencement of operation of the Short-Term rental. (b) Depreciation Schedule from the most recent income tax year showing the depreciable basis in the short-term rental, as well as any depreciable improvements or assets used it the Short-Term rental. (c) The date that the property was acquired by the owner, the price and other terms of the acquisition that materially affected the price, the closing escrow documents, and the purpose for which the property was acquired by the owner. If the property was acquired by a means other than an arms-length purchase (including without limitation a gift or inheritance), then the owner shall provide information concerning the most recent arms-length purchase involving the property and the fair market value of the property on the date of owner’s acquisition. (d) Finance terms of the short-term rental, if financed, documenting amount financed, interest rate and term of financing. (e) Each use that the owner has made of the property since the owner’s acquisition and the period of each such use, indicating the start and end date for each consecutive use, including each period of personal use, each period of compensated use by friends or other acquaintances, each short-term rental tenancy, each long-term rental tenancy, each period in which the property was put to some other use, and each period in which the property was left vacant and unused. The owner should also include the following information for each use period: (1) the number of days in each use period (end date less start date), (2) the amount of rent or other charges collected, (3) the amount of transient occupancy tax remitted to the city, (4) the amount of tourism business improvement district assessments remitted to the city, (5) the expenses directly associated with that period of use (including but not limited to commission fees). 592 (f) A detailed listing of expenditures made by the owner for capital improvements to the property for the purpose of putting the property to short-term rental use, since it was acquired, including the purpose of each expenditure, the amount, the date, the payee, and any other relevant information for each expenditure. The owner shall provide receipts, executed contracts, or other written proof of each expenditure. (g) A detailed listing of expenditures made by the owner for capital improvements to the property other than those made for the purpose of putting the property to short-term rental use, since it was acquired, including the purpose of each expenditure, the amount, the date, the payee, and any other relevant information for each expenditure. The owner shall provide receipts, executed contracts, or other written proof of the each expenditure. (h) A detailed listing of all expenditures, other than for capital expenditures, incurred by the owner for the purpose of putting the property to short-term rental use, including the purpose of each expenditure, the amount, the date, the payee and any other relevant information for each expenditure. The owner shall provide receipts, contracts, or other written proof of each expenditure. (i) A detailed projection of the income and expenses that are anticipated if the requested hardship extension is approved. (j) An identification and description of any contract with a third party that commits the property to a future short-term rental use, including the dates of the committed use, the rent to be charged for the use, any other amount to be charged or paid (e.g., cleaning fees, commissions, transient-occupancy tax), and any other relevant information relating to the contracted future use. The owner shall provide written evidence of the contracts identified. (k) An identification and description of any long-term commitment, whether a lease, mortgage, or other commitment, that has been made by the owner in reliance on the ability to use the property for short-term rental purposes. The owner shall provide written documentation for each such commitment. (l) The fair market value (“FMV”) of the short-term rental property within six (6) months of the application. The owner shall provide the factual basis and analysis substantiating the FMV, including comparable-sales information, income- approach elements, and cost-approach elements. (m) A financial analysis demonstrating the amount of time that will be required for the owner to recover the costs reasonably invested for short-term rental use to the extent that such costs could not already have been reasonably recovered during the period of short-term rental use of the property and cannot be recovered once the short-term rental use is terminated. The analysis should identify reference sources for each item of data included and set forth the basis for each assumption made. The director of development services may provide the owner with a requested form or format for the financial analysis, and if provided, such form or format shall be completed and submitted by the owner. 4. After receiving a timely filed application, the director of development services may request any additional information that the director deems in his or her 593 discretion to be reasonably necessary to ascertain relevant facts and circumstances; and, if requested, the owner shall provide the requested information within thirty (30) calendar days of the director’s request, unless the director provides for a longer period. The director may deem an application to be incomplete, and return it to the owner for additional information, if the information set forth in the application or requested by the director is not provided in a manner that is comprehensive and understandable and that demonstrates how the factual information provided leads to the conclusion that the requested hardship extension is necessary. If an application is returned as incomplete, the owner shall correct the deficiencies and provide the requested information within thirty (30) calendar days of the director’s request, unless the director expressly provides in writing for a longer period. The director, in his or her sole and absolute discretion, may waive one or more of the items listed above if he or she determines that the purpose and intent of this policy can be adequately achieved without the submittal of such item or items, but no waiver shall be effective unless in writing and signed by the director. 5. The burden shall be on the owner to establish the need and grounds for a hardship extension and to establish the reasonableness of the requested duration of the extension. An owner’s failure to produce appropriate information or documentation shall be grounds for denying or reducing a hardship extension. Any alleged hardship that is based on action or expenditures not reasonably taken or made in light of the circumstances, shall not be grounds for an extension. Any expense for modification or improvement of the short- term rental property that was incurred after the applicable ordinance adoption date for the respective zone (October 10, 2024 for the HPR zone; May 22, 2025 for the RE Zone), shall be presumed not to be reasonably incurred unless (i) the owner proves that the expense was reasonably necessary to operate the short-term rental in a way that would ultimately reduce the duration of the extension otherwise necessary by allowing for a quicker recovery of the owner’s qualifying costs, or (ii) the expense was incurred to satisfy a requirement of the city for the continued use and operation of the property. 6. The director of development services shall approve an extension upon determining that the owner has shown that since the commencement of the use of the owner’s property as a short-term rental property, the owner has not had and will not have by the applicable termination date (December 31, 2026 for HPR; June 30, 2027 for RE) a reasonable period of time within which to recover the costs that the owner reasonably invested for short-term rental use, and that those costs cannot be recovered once the short-term rental use is terminated. 7. In determining whether the owner has had and will have a reasonable period for recovery of costs, the director of development services shall consider the period of time that the owner has had for short-term rental use since the owner began to incur such costs, as well as the time available for continued short -term rental use until the applicable termination date (December 31, 2026 for HPR; June 30, 2027 for RE). In addition to the information contained in the application submitted by the owner, the director of development services may consider such additional competent and relevant information that the director may obtain by staff investigation or from other sources as the director may choose to consult or obtain; however, the director shall not be obligated to conduct any independent investigation or to seek information outside the scope of the owner’s application. Upon request of the director, the owner shall be reasonably available to respond to questions or to review and discuss relevant information. 594 8. In considering the application and making a decision, the director of development services may take into account all relevant information that relates to the determination of whether the owner has had or will have a reasonable period of time to recover the costs that the owner reasonably invested for short-term rental use, and to the possibility that the costs can be recovered before the short-term rental use is terminated, including but not limited to any of the following matters: (a) The information submitted in the owner’s application. (b) The period of time that the owner has had for short-term rental use since the owner began to incur such costs. (c) The amount of investment or original cost incurred by the owner. (d) The income potential of the property since it was allowed to be used for short-term rental purposes and the income actually received by the owner from short-term rental use since it was allowed to be used for short-term rental purposes. (e) Any amortization or depreciation of the improvements to the property that has been prepared for tax purposes and any tax benefit that the owner might have derived from claiming depreciation. (f) The extent of the owner’s investment that is unique to the short-term rental use and does not serve any conforming use of the property. (g) The extent of the owner’s investment that could not be recovered on sale of the property. (h) The owner’s investment-backed expectations in light of current and pending regulation at the time that the investment was made. (i) The replacement cost of improvements that might have been made that only serve the short-term rental use; and the length of time that the owner has had the benefit of the investment before the termination of the use. (j) Any other information that bears on the reasonable period of time for the owner of a terminating short-term rental to recover the costs reasonably invested for short-term rental use. 9. A decision by the director of development services to deny an application for a hardship extension, in whole or in part, or to limit the duration of an extension to a shorter period than requested by the owner, may be appealed to the city manager. At the city manager’s option, a hearing may be conducted by a hearing officer appointed by the city manager or the city manager may conduct her or his own independent review. The deadline for filing an appeal shall be thirty (30) calendar days after the date that the written notice of the director of development services’ decision is mailed (via first class delivery) to the owner. Such an appeal may be filed only if the owner 595 timely submitted a complete application to the director of development services for a hardship extension. 10. If appointed by the city manager, the hearing officer shall conduct an independent analysis of the information already submitted in the matter to the director of development services and, at the hearing officer’s discretion, a hearing; however, neither the city nor the owner may submit additional information to the hearing officer other than that which was submitted to the director of development services in connection with the owner’s application for hardship extension, except to the extent the information: (i) could not have reasonably been provided to the director of development services with the application; (ii) is necessary to rebut or respond to information submitted by the other party or any other person to the director of development services; or (iii) in response to a request by the hearing officer. The hearing officer’s recommendation shall be based on all relevant information, including the categories of information set forth in this section. The burden shall be on the owner to establish the need and grounds for the hardship extension and to establish the reasonableness of the requested duration of the extension. Any hardship that is based on actions or expenditures not reasonably taken or incurred in light of the circumstances shall not be grounds for an extension based on the criteria provided in this section. The recommendation of the hearing officer shall be considered by the city manager, who may adopt or modify the recommendation of the hearing officer. Whether or not a hearing officer was appointed, the decision of the city manager shall be final. 596 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 PLANNING@PALMDESERT.GOV 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 FIRST READING AND INTRODUCTION OF AN ORDINANCE AMENDING CHAPTER 5.10 SHORT TERM RENTALS, ADOPT A POLICY FOR SHORT-TERM RENTAL HARDSHIP EXTENSIONS FOR THE RESIDENTIAL ESTATE ZONE, AND FINDING THE PROJECT IS EXEMPT FROM FURTHER ENVIRONMENTAL REVIEW IN ACCORDANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT 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), has determined the project to be exempt from further environmental review pursuant to State CEQA Guidelines Section §15061(b)(3). PROJECT LOCATION: Citywide PROJECT DESCRIPTION: The project is an Ordinance amending Palm Desert Municipal Code Chapter 5.10, Short Term Rentals and adopt a policy for short-term rental hardship extensions for the Residential Estate Zone. The project would remove allowances for off-site short-term rental permits within the Residential Estate zone, unless qualified under the hardship extension. The project would also remove allowances for short-term rentals in the hillside planned residential district within a HOA and clarify timing of expirations. 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 May 22, 2025. The City Council meeting begins at 4:00 p.m. in the Council Chamber at 73510 Fred Waring Drive, Palm Desert, California. Pursuant to Assembly Bill 2449, this meeting may be conducted as a hybrid meeting allowing public access via teleconference or in person. Options for remote participation will be listed on the Posted Agenda for the meeting at https://www.palmdesert.gov/connect/city-council. COMMENT ON THIS APPLICATION: Those wishing to comment on this application may either appear in person at the public hearing or submit written comments, which must be received by 10:00 a.m. on the day of the hearing. Written comments should be sent to the City of Palm Desert at 73510 Fred Waring Drive, Palm Desert, California 92260, Attention: City Clerk, or emailed to: CouncilMeetingComments@palmdesert.gov. 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 Damian Olivares (760) 346-0611. PUBLISH: THE DESERT SUN ANTHONY MEJIA, MMC, CITY CLERK MAY 9, 2025 CITY OF PALM DESERT, CALIFORNIA 597