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HomeMy WebLinkAboutAgenda Package - Palm Desert City Council - Regular Meeting_Sep25_2025 PALM DESERT CITY COUNCIL MEETING AGENDA Thursday, September 25, 2025 4:00 p.m. Council Chamber, City Hall 73-510 Fred Waring Drive Palm Desert, California This is a joint meeting of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, 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 “Meeting Agendas” 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.ROLL CALL - REGULAR MEETING - 4:00 P.M. 2.PLEDGE OF ALLEGIANCE Mayor Harnik 3.INSPIRATION Mayor Pro Tem Trubee 4.AWARDS, PRESENTATIONS, AND APPOINTMENTS 4.a PROCLAMATION: GEORGE ARGYROS 9 4.b PRESENTATION: PALM DESERT ENTREPRENEURIAL RESOURCE CENTER (ERC) 11 4.c PRESENTATION: EISENHOWER HEALTH FOUNDATION 5.CITY MANAGER COMMENTS 5.a SHERIFF DEPARTMENT UPDATE 5.b INTRODUCTION OF FIRE CAPTAIN SPECIALIST 6.MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION 7.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. 8.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. 8.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES 37 RECOMMENDATION: Approve the Minutes of September 11, 2025. 8.b APPROVAL OF WARRANT REGISTERS 51 RECOMMENDATION: Approve the warrant registers issued for the period 9/3/2025 to 9/11/2025. Palm Desert City Council Meeting Agenda September 25, 2025 2 8.c AUGUST 2025 PROCUREMENT REPORT 77 RECOMMENDATION: Receive and file the monthly Procurement Report for August 2025. 8.d RECEIVE AND FILE APPLICATIONS FOR ALCOHOLIC BEVERAGE LICENSES 83 RECOMMENDATION: Receive and file applications for Alcoholic Beverage Licenses for: La Tablita Mexican Restaurant 72261 Highway 111, Palm Desert, CA 92260-2740. • Red Barn 73290 Highway 111, Palm Desert, CA 92260-3903.• 8.e RATIFICATION OF LETTER CALLING FOR AN EQUITABLE ALLOCATION OF PROPOSITION 4 SALTON SEA FUNDING 91 RECOMMENDATION: Ratify the issuance of a letter calling for an equitable allocation of Proposition 4 funds between the Salton Sea Authority and the Salton Sea Conservancy. 8.f ACCEPTANCE OF A RESIGNATION FROM THE EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT BOARD 99 RECOMMENDATION: With regret, accept the resignation of Alexander Longmuir from the El Paseo Parking and Business Improvement District Board effective September 4, 2025. 8.g AMENDMENT NO. 6 TO CONTRACT NO. C28880 WITH BEST BEST & KRIEGER LLP FOR CITY ATTORNEY SERVICES 101 RECOMMENDATION: Approve Amendment No. 6 to Contract No. C28880 with Best Best & Krieger LLP for City Attorney Services, extending the agreement and adjusting compensation. 1. Authorize the Mayor to execute the agreement.2. 8.h CONSIDER RELOCATION OF LILY PAD BENCH BY MICHAEL TODD 121 RECOMMENDATION: Approve the relocation of Lily Pad Bench by Michael Todd from its current location, at the corner of El Paseo and Sage Lane, to the Civic Center Park. 8.i APPROVE DEACCESSION OF EL PASEO ENTRY SIGNS BY WATER STUDIO 141 RECOMMENDATION: Approve the deaccession of two El Paseo entry signs by Water Studio. Palm Desert City Council Meeting Agenda September 25, 2025 3 8.j CONSIDERATION TO PURCHASE RISING INVERSION SCULPTURE BY CRISTOPHER CICHOCKI 153 RECOMMENDATION: Approve agreement with artist Cristopher Cichocki in the amount of $150,000 for the purchase of Rising Inversion to be installed at Ironwood Park. 1. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 2. Authorize the City Manager to execute contract and all documents necessary to execute the project. 3. 8.k RECEIVE AND FILE THE PARKVIEW OFFICE COMPLEX TENANT UPDATE, ACKNOWLEDGING THE CONCLUSION OF TENANT LEASES 239 RECOMMENDATION: Receive and file the Parkview Office Complex Report 2025, providing the City Council with the latest information on tenant occupancy and lease activity. 8.l RESOLUTION DECLARING CITY-OWNED PROPERTY LOCATED AT 72880 HIGHWAY 111 FORMERLY KNOWN AS THE SEARS BUILDING AT WESTFIELD MALL, APN 640-140-020, AS SURPLUS LAND UNDER THE GOVERNMENT CODE SECTION 54221 AND FINDING THE ACTION CATEGORICALLY EXEMPT FROM CEQA 243 RECOMMENDATION: Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221 THAT REAL PROPERTY OWNED BY THE CITY OF PALM DESERT LOCATED AT 72880 HIGHWAY 111 (APN 640-140-020), FORMERLY KNOWN AS THE SEARS BUILDING IS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE, AND FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), PURSUANT TO CEQA GUIDELINES SECTION 15312 (CLASS 12 – SURPLUS GOVERNMENT PROPERTY SALES), AND TAKING RELATED ACTIONS.” This action declares approximately 7.46 acres of city-owned property located on 72880 Highway 111 (APN 640-140-020), as surplus land in accordance with the California Surplus Land Act (SLA). Palm Desert City Council Meeting Agenda September 25, 2025 4 8.m AWARD A TASK ORDER TO TKE ENGINEERING FOR GRANT ADMINISTRATION AND DRAINAGE DESIGN SERVICES OF THE COOK STREET & GERALD FORD IMPROVEMENTS PROJECT (GDR00001) 255 RECOMMENDATION: Award a task order to TKE Engineering, Inc., for grant administration and the design of drainage improvements to the intersection of Cook Street and Gerald Ford Drive in the amount of $743,000. 1. Ratify the execution of the Memorandum of Understanding between the Southern California Association of Governments and the City of Palm Desert, outlining the responsibilities of the parties regarding the grant funds. 2. Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE EXECUTION OF AN AGREEMENT TO RECEIVE FUNDING FROM THE REGIONAL EARLY ACTION PLANNING GRANT PROGRAM OF 2021.” 3. Authorize the City Attorney to make non-monetary changes to the task order and Resolution as necessary. 4. Authorize the City Manager to execute the task order and an addendum to the Memorandum of Understanding, refining the details of the MOU to match the proposed project. 5. 8.n AMENDMENT NO. 3 TO CONTRACT NO. C39690 – LEASE AGREEMENT WITH THE DESERT RECREATION DISTRICT TO FINALIZE NECESSARY BUILDING IMPROVEMENTS AT PALM DESERT COMMUNITY CENTER AND ADOPT AMORTIZATION SCHEDULE 309 RECOMMENDATION: Approve Amendment No. 3 to Contract No. C39690 amending the lease agreement with the Desert Recreation District for the Palm Desert Community Center. 1. Authorize the City Attorney to make non-monetary changes to the amendment. 2. Authorize City Manager to execute said amendment upon approval by the City Attorney. 3. 8.o AUTHORIZATION FOR THE CITY MANAGER TO APPROVE NOTICES TO PROCEED (NTPS) AND NOTICES OF COMPLETION (NOCS) FOR CONTRACTS UNDER $250,000 IN ALIGNMENT WITH THE CITY’S PURCHASING ORDINANCE 363 RECOMMENDATION: Adopt a resolution entitled, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT AUTHORIZING THE CITY MANAGER TO APPROVE NOTICES TO PROCEED (NTPs) AND NOTICES OF COMPLETION (NOCs) FOR CONTRACTS UNDER $250,000 IN ACCORDANCE WITH THE CITY’S PURCHASING ORDINANCE." Palm Desert City Council Meeting Agenda September 25, 2025 5 8.p APPROVE AMENDMENTS FOR LANDSCAPE MAINTENANCE SERVICES AGREEMENTS ON LMA 6, 9, AND 17 (PROJECTS NO. MLS00012, MLS00015, AND MLS00017) 367 RECOMMENDATION: Approve Amendment No. 1 to Contract No. C45050 with Horizon Professional Landscape, Inc., of Coachella, CA, in the amount of $4,704, increasing the annual contract amount to $168,000. 1. Approve Amendment No. 1 to Contract No. C45060 with Mariposa Landscapes, Inc., of Irwindale, CA, in the amount of $8,935.92, increasing the annual contract amount to $366,370.32. 2. Approve Amendment No. 1 to Contract No. C43140 with Vintage Associates, Inc., of Bermuda Dunes, CA, in the amount of $10,200, increasing the annual contract amount to $351,000. 3. Authorize the City Attorney to make necessary non-monetary changes to the amendments. 4. Authorize the City Manager to execute amendments, change orders, and execute any other documents necessary to effectuate the actions taken herewith. 5. 8.q APPROVE CHANGE ORDER NO. 1 TO AMEND CONTRACT NO. C43100 WITH MULTI W SYSTEMS, INC., FOR PUMP PREVENTATIVE MAINTENANCE SERVICES AT THE PALM DESERT AQUATIC CENTER (PROJECT NO. MLS00020) 389 RECOMMENDATION: Approve Change Order No. 1 to amend Contract No. C43100 with Multi W Systems, Inc., to add preventative maintenance services to the Palm Desert Aquatic Center pumps and increase the annual amount to $63,000. 1. Increase allowable extra work in an amount not to exceed $35,000 per fiscal year. 2. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 3. Authorize the City Manager to execute the change order, the optional three extensions, and any documents necessary to effectuate the actions taken herewith. 4. Palm Desert City Council Meeting Agenda September 25, 2025 6 8.r AWARD A CONSTRUCTION CONTRACT TO CONDOR, INC., FOR THE PALM DESERT AQUATIC CENTER PUMP ROOM RENOVATION PROJECT (PROJECT NO. CFA00009) 441 RECOMMENDATION: Award a construction contract to Condor, Inc., of El Monte, California, in the amount of $647,000, with a 20% contingency of $129,400, for a total not-to-exceed amount of $776,400 to cover unforeseen expenses. 1. Authorize the Director of Finance to appropriate funds from General Fund Facility Reserve to the Interfund Transfer Account (Account Number 1104199-4501000) in the amount of $776,400, and transfer to the Palm Desert Aquatic Center Transfer Account (Account No. 2420000-3910000). 2. Authorize the appropriation of $776,400 to the Palm Desert Aquatic Center Capital Improvement Account (Account No. 2424549- 4400100). 3. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 4. Authorize the City Manager to execute the agreement, change orders up to the contingency amount, and any documents necessary to effectuate the actions taken herewith. 5. 9.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. 9.a PUBLIC ELECTRIC VEHICLE CHARGING STATIONS: TERMINATE AGREEMENTS AND ESTABLISH A SITE LICENSE PROGRAM 523 RECOMMENDATION: Terminate agreements and responsibilities for all 18 electric vehicle (EV) charging stations, including five on non-City property and 13 on City-owned or managed property. 1. Establish a site license program to attract private EV charging operators to install, operate, and maintain EV charging stations on City-owned and/or managed property. 2. 10.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. None. 11.INFORMATION ITEMS 12.ADJOURNMENT Palm Desert City Council Meeting Agenda September 25, 2025 7 13.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 September 25, 2025 8 Whereas, John’s Restaurant has been a beloved Palm Desert institution for 40 years, serving generations of residents and visitors with warm hospitality, excellent food, and a welcoming community spirit; and Whereas, since opening its doors in 1985, John’s Restaurant has become more than a place to dine—it has become a gathering place that reflects the heart of Palm Desert and the values of its residents; and Whereas, George Argyros, the owner of John’s Restaurant, has demonstrated unwavering commitment to our community through his extensive volunteerism and generosity; and Whereas, Mr. Argyros has helped organize the annual Greek Festival, supported countless causes through BBQ fundraisers at Palm Desert High School, and contributed his time and talents to church fundraisers, golf tournaments, and efforts to assist those in need; and Whereas,George Argyros exemplifies the best qualities of a husband, brother, father, grandfather, friend, and pillar of our community; and Whereas, through his 40 years of business and service, George Argyros has earned the admiration and respect of the Palm Desert community, representing the very best of civic spirit and small business leadership; NOW, THEREFORE, BE IT RESOLVED, that I, Jan C. Harnik, Mayor of the City of Palm Desert, and the entire City Council of the City of Palm Desert hereby celebrate the 40th anniversary of John’s Restaurant and extends its heartfelt gratitude to George Argyros for his enduring service and dedication to the Palm Desert community; and , that the City Council does hereby proclaim September 25, 2025, as GEORGE ARGYROS DAY in the City of Palm Desert and encourages all residents to join in recognizing this milestone and the exceptional contributions of a cherished community member. 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 25th day of September 2025. 9 10 April 30, 2025 School of Entrepreneurship & Inland Empire Center for Entrepreneurship at California State University, San Bernardino Authored by: Dr. Ezekiel Bonillas 2025 Palm Desert ERC 1st Quarter Review: Innovations and Milestones 11 INTRODUCTION Welcome to the recently expanded Palm Desert Entrepreneur Resource Center (formerly known as Palm Desert Ihub), a vibrant hub of innovation and entrepreneurial spirit in the heart of Coachella Valley. The Palm Desert Entrepreneur Resource Center (ERC) is dedicated to fostering innovation, supporting startups, and driving economic growth. As a catalyst for entrepreneurial success and regional economic development, the Palm Desert ERC focuses on transforming the regional landscape for business and entrepreneurial opportunities. In November 2023, the management of this dynamic facility was awarded to the School of Entrepreneurship (SOE) and Inland Empire Center for Entrepreneurship (IECE) at California State University, San Bernardino (CSUSB). This marked a pivotal shift towards heightened professionalism, innovation, and performance, with the SOE and IECE jointly steering the center into a new era starting January 2024. This strategic partnership is designed to enhance the Palm Desert ERC's influence as a central player in both the local and broader Coachella Valley business ecosystems. The pages that follow provide a detailed report on the progress and achievements in the 1st Quarter of 2025. We will delve into the initiatives undertaken, milestones reached, and significant outcomes that underscore the impactful contributions of the SOE and IECE at CSUSB. This report is a testament to our commitment to excellence and accountability, showcasing how our strategic management of the Palm Desert ERC has positively influenced the greater Palm Desert community and stakeholders. This quarterly report not only reflects on past accomplishments but also outlines our future initiatives aimed at sustaining and expanding our impact. As we move forward, the Palm Desert ERC will continue to introduce innovative programs and partnerships that address the evolving needs of our entrepreneurial community. We are committed to leveraging cutting-edge technology and comprehensive support services to facilitate business creation and growth. Our ongoing efforts include enhancing our program offerings, expanding our network of industry experts, and providing entrepreneurs with the tools they need to succeed. By fostering a robust ecosystem of resources, the Palm Desert ERC is poised to remain at the forefront of economic development and innovation in the Coachella Valley. 12 KEY METRICS Several key metrics from the first quarter highlight the impact and success of our initiatives at the Palm Desert Entrepreneur Resource Center. At the 15-month mark since taking over management, these metrics span various aspects of our operations and underscore our dedication to nurturing entrepreneurship and stimulating economic growth in Palm Desert and the broader Coachella Valley. These indicators include the number of new business startups initiated, businesses assisted, and the extensive reach achieved through business counseling, as well as networking and training events. Each metric provides valuable insight into our efforts to support and empower local entrepreneurs. Furthermore, our effective team of business consultants, experts, and affiliates have aided business stakeholders make use of financial resources—such as SBA loans, business loans, and equity capital investments. This has been instrumental in fostering the growth and sustainability of businesses within our ecosystem. We also take pride in the PD ERC clients achievements in securing procurement contracts and boosting sales, which are clear indicators of the economic benefits reaped from our programs. In addition, we are committed to supporting a diverse range of business and entrepreneurial stakeholders, including minority-owned and women-owned firms, and entrepreneurs at various stages of their business journey. Lastly, we examine the composition of our incubator community, highlighting the number of companies currently housed and those that have successfully graduated, which reinforces our role as a catalyst for entrepreneurial success and development. Economic Metric Jan-Mar Q1 Apr – Jun Q2 Jul – Aug Q3 Sept- Dec Q4 Year-to-Date Total 1 Business Starts Number of entrepreneurs assisted that launched a new businesses or entity within specific time period. 10 10 2 Businesses Assisted Number of companies/entrepreneurs assisted through business counseling/consulting services provided at the PD ERC. 80 80 3 Business Events at PD ERC Business networking events, workshops, or technical training events hosted at the PD ERC. 19 19 3A Virtual Events at PD ERC Events hosted from PD ERC facility. 16 16 4 I-Hub sponsored event attendance Number of attendees at PD ERC sponsored events. 460 460 13 5 Economic Impact Quantitative metrics utilized to measure economic impact of PD ERC through services provided to companies/entrepreneurs SBA Loans Gross dollar amount of SBA-backed loans provided to companies/entrepreneurs as result of PD ERC provided services (i.e. 504, 7a) 0 0 Business Loans Gross dollar amount of non-SBA backed loans provided to companies/entrepreneurs as result of PD ERC provided services (i.e. bank loans, lines of credit) $20,000 $20,000 Other Capital Additional forms of capital that exclude SBA Loans or formalized institutional loans (i.e. bank loans) $7,500 $7,500 Equity Capital and/or Investments Direct investments into companies that exclude debt capital (loans, lines of credit) $5,000 $5,000 Government and/or Procurement Contracts Gross dollar amount of contracts secured by companies serviced at PD ERC. These can include contracts with larger companies or governments. $0 $0 Increase in Sales This figure is directly reported by PD ERC service companies to track direct sales increases as result of business advisory, consulting, and/or coaching services provided. $534,397 $534,397 6 Jobs Supported Number of jobs created or retained at PD ERC client companies. 148 148 7 Minority-owned firms assisted Number of minority-owned businesses and/or entrepreneurs that have received services at PD ERC 54 54 8 Woman-owned firms assisted Number of women-owned businesses and/or entrepreneurs that have received services at PD ERC 46 46 9 Companies in residence Number of entrepreneurs and/or companies maintaining residence within the PD ERC (excluding CSUSB) 6 6 10 Graduating companies Number of companies and/or entrepreneurs that have graduated from PD ERC- provided longitudinal programming (i.e. It’s Your Time, Veteran Entrepreneurs, Mini-MBA) 0 0 14 1st Quarter 2025: PROGRAM HIGHLIGHTS Open House and Renaming event. On March 5, 2025, the team at CSUSB’s School of Entrepreneurship and IECE celebrated the expansion and rebranding of the Entrepreneurial Resource Center (ERC), marking a major milestone in the City of Palm Desert’s commitment to fostering entrepreneurship, business innovation, and economic growth across the Coachella Valley. The event showcased expanded resources, strategic partnerships, and new programming designed to empower small businesses, startups, and innovators to scale, thrive, and succeed. Riverside County Supervisor and County officials, City of Palm Desert officials, along with other dignitaries throughout the Coachella Valley, were in attendance to show their support. Local entrepreneurs, business owners, and community leaders joined the celebration to champion the expanded efforts. Attendees learned about the enhanced resources now available through key partners, including the newly established AI Center, the Coachella Valley Small Business Development Center (CVSBDC), Coachella Valley Women’s Business Center (CVWBC), AmPac Business Capital, First Choice Business Brokers, and Cal State San Bernardino’s School of Entrepreneurship. These expanded offerings reflected a broader vision to strengthen the region’s entrepreneurial ecosystem, support economic development, and create new opportunities for innovation and business growth. AI Center Coachella Valley. In the first quarter, the Palm Desert ERC partnered for official launch of the AI Center Coachella Valley (AICV), managed by entrepreneur and AI enthusiast Sat Singh. Singh leads the development and execution of pioneering AI-driven projects, working to position AICV as the premier hub for AI innovation in the Coachella Valley. Under his leadership, AICV fosters a dynamic environment where collaboration among AI enthusiasts, founders, and content creators thrives. With a focus on experimentation, events, project coordination, and storytelling, AICV aims to transform ideas into MVPs and deliver impactful solutions that connect technology with enhanced user experiences. 15 Coachella Valley Small Business Development Center (CVSBDC) expansion. In March 2024, the Coachella Valley Small Business Development Center (CVSBDC) officially partnered with the Palm Desert Entrepreneurial Resource Center (ERC) as part of the Center’s broader expansion and strengthened collaboration with Riverside County. This partnership significantly enhances the breadth, scope, and depth of business support services available through the Palm Desert ERC, building upon the existing services already offered by the Center’s resource partners. With the addition of CVSBDC’s expertise, local entrepreneurs and small business owners now have greater access to specialized advising in startup assistance, marketing, operations, business planning, and growth strategies. A key feature of this partnership is the integration of the Access to Capital Center, a program designed to assist entrepreneurs in navigating funding opportunities and securing the capital necessary to launch and expand their businesses. This new offering complements the ERC’s existing collaboration with AmPac Business Capital, creating a more comprehensive, coordinated support system for business financing. Together, these initiatives position the Palm Desert ERC as a critical driver for small business success and economic development throughout the Coachella Valley. Coachella Valley Women’s Business Center (CVWBC). As part of the Inland Empire Center for Entrepreneurship (IECE) at CSUSB, the CVWBC has become an instrumental cornerstone in the PD ERC structure, bringing a wealth of resources that catalyze entrepreneurial success in the region. The CVWBC offers an extensive suite of services at minimal to no-cost, encompassing business consulting, advisory services, and training workshops. This suite is tailored to empower not just women, but also underrepresented minorities and members of marginalized groups, positioning the CVWBC as a critical ally in their entrepreneurial journey. Since its relocation to the PD ERC in February 2024, the CVWBC has not only enriched the PD ERC’s ecosystem but has also been pivotal in redefining it as a hub of innovative programming and support. This move has proven to be a driver in enhancing the Palm Desert ERC’s capacity to support small businesses and foster economic growth. The CVWBC ensures that entrepreneurs have direct access to essential resources, facilitating a collaborative environment that nurtures growth and success. Through this dynamic partnership, the Palm Desert ERC and CVWBC collectively bolster the foundation of a thriving business community, making a significant impact on the regional economy by turning potential into prosperity. 16 Success Stories Matthew List, MSEI, Entrepreneur. Matthew List exemplifies the full circle of the entrepreneurial ecosystem cultivated through the Palm Desert Entrepreneurial Resource Center (ERC) and CSUSB’s School of Entrepreneurship. A seasoned entrepreneur, Matthew founded several businesses throughout his career, most notably Desert Cornerstone Insurance based in Indio, California. Driven by a passion for continual growth, he pursued and completed the Master of Science in Entrepreneurship and Innovation (MSEI) program at CSUSB. Residing in the Coachella Valley, Matthew emphasized how earning an advanced degree strengthened his entrepreneurial foundation and business acumen, enabling him to approach opportunities with greater strategic insight. In 2023, he successfully sold Desert Cornerstone Insurance, a major milestone that punctuated his entrepreneurial journey. Following his personal success, Matthew has remained deeply committed to fostering entrepreneurship in the region. He has been an enthusiastic supporter of the Palm Desert ERC, actively engaging as a guest speaker in entrepreneurship classrooms and volunteering as a business coach and mentor. His contributions extend to advising undergraduate students and participants in the ERC’s Mini MBA program, where his real-world experience and thoughtful guidance have proven invaluable. Matthew’s ongoing involvement highlights how alumni of CSUSB’s entrepreneurial programs can become pillars within the local business community. Matthew’s story is a powerful reminder of the importance of building an entrepreneurial ecosystem that nurtures talent across all stages—from aspiring entrepreneurs to seasoned business owners. His dedication to giving back underscores a core value shared by the Palm Desert ERC: fostering a culture of mentorship, collaboration, and opportunity. Matthew’s journey stands as a testament to how investing in entrepreneurship education and community building produces ripple effects that strengthen the Coachella Valley’s economy and entrepreneurial spirit. Eric Cunningham, Writer, Comedian, Entrepreneur. Eric Cunningham, founder of eecnunningham.com, was part of the inaugural Mini MBA cohort at the Palm Desert Entrepreneurial Resource Center. As an entrepreneur with a diverse background, Eric found the program instrumental in refining his business focus and strategy. He credits much of his recent success to the insights and networking opportunities the program provided. “The Mini MBA program was just what I needed to find an intelligent focus for my business. As an entrepreneur, you instinctively want to do it all, tackle it all, and of course that's impossible. In just 6 sessions, the faculty helped me let go of all the extras and focus on my core business. And its breadth of material is one of its biggest assets. Because everyone's non-core extras may be different, being able to look at your company from all angles of a business is crucial.” 17 Beyond the curriculum, Eric emphasized the value of the program's collaborative environment. Engaging with fellow entrepreneurs and industry experts provided him with diverse perspectives and practical solutions to business challenges. This experience not only enhanced his business acumen but also expanded his professional network, contributing to the growth and success of his ventures. 18 2025 UPCOMING PROGRAMMING & INITIATIVES Mini MBA in Entrepreneurship (Cohort-based series)—A curriculum designed to empower current and aspiring entrepreneurs. From nurturing an entrepreneurial mindset to mastering financial considerations, human resources, strategy, and the secrets to scaling for growth, each session is packed with insights ready to be applied to a venture. This 6-week intensive course offers participants an opportunity to network with like-minded entrepreneurs, innovate within their companies, and apply new knowledge. (Ongoing) Tu Si Puedes—Spanish language programming offered by the CVWBC and designed to help women start and grow their own businesses; laying foundations on helping them become successful entrepreneurs. (Ongoing) CVWBC Accelerator—A Next Level is a six-week program to help businesses grow by providing intensive guidance, support, and structure. Business owners identify timing to scale their business and the types of growth. A program designed to help the business owner prepare to become an employer. (Ongoing) Industry Insights—Featuring business owners from a wide array of industries in the Greater Coachella Valley. This series explores the latest trends, innovative techniques, and business strategies that will elevate, inform, and inspire entrepreneurs in all business life cycles. Participants uncover valuable insights from a distinguished panel of speakers and refine skills in this dynamic and ever-evolving series. (Ongoing) Veteran’s Entrepreneurship Program—A program designed for veterans, it aims to equip veterans, active-duty members and their spouses with the skills, knowledge, and mindset necessary to navigate the entrepreneurial landscape successfully. Spanning over five (5) months, the curriculum is divided into two phases and delivered in both virtual and in person formats, with the initial month focusing on foundational workshops and the subsequent four months dedicated to deeper exploration and individualized consulting. The top entrepreneur wins a $7,000 prize to start their business. (Fall 2025) 19 CONCLUSION As the Palm Desert Entrepreneurial Resource Center (ERC) continues to evolve and grow, it is important to recognize the significant progress we’ve made over the past year. Through a combination of robust programming and strategic initiatives, the ERC has measurably increased entrepreneurial activity and economic impact throughout the region. This year’s key metrics—ranging from new business starts and the number of businesses assisted to the success of our incubator programs—reflect our steadfast commitment to building a thriving entrepreneurial ecosystem. Among our most notable achievements is the graduation of 104 companies from our programs in 2024, a milestone that underscores the ERC’s effectiveness in guiding ventures from idea to execution. Looking ahead, the ERC is well-positioned to drive even greater innovation and impact across the Coachella Valley. In close collaboration with the Riverside County Office of Economic Development, CSUSB’s School of Entrepreneurship, and the Inland Empire Center for Entrepreneurship (IECE), we are actively expanding initiatives that strengthen and scale our support offerings. These include the continued growth of our Mini MBA program, the launch of the new AI Center, and the introduction of industry-specific roundtables designed to deliver targeted education, foster connection, and facilitate business growth. Together, these efforts serve not only to enhance our programming, but to lay the foundation for a resilient and adaptive entrepreneurial culture in the region. In March 2025, the Palm Desert ERC officially transitioned into a fully integrated Entrepreneurial Resource Center, reflecting a comprehensive model designed to support the diverse needs of local entrepreneurs and small business owners. This transformation represents the culmination of collaborative efforts across city, county, and academic partners—and stands as a testament to our shared commitment to advancing entrepreneurship in Palm Desert and the greater Coachella Valley. With this renewed vision and structure, the ERC is poised to keep the region at the forefront of innovation, opportunity, and inclusive economic development. 20 Appendix Explanatory Notes for Key Metrics: Business Startup metric is comprised of clients served whose business is in one of three categories: (a) Less than 1 year in business, (b) pre-venture stage, and (c) startup phase. There is overlap between the pre-venture and launch phase. This is the result of the natural progression of the business life cycle from planning stage to launch. However, in the case of our reporting for 3rd quarter, we noted 129 distinct entrepreneurs that were served through our programs in the “startup” phase which includes businesses that in prelaunch phase of business through their first year after launching their business. Clients self-report their progress and for the purpose of our data collection, a business is considered “launched” when a client reports any of the following: first sale, obtain business license, incorporates, or files a fictitious name. Businesses assisted consists of entrepreneurs and/or business owners that have obtained services from any of the ERC programs. This includes the Inland Empire Center for Entrepreneurship (IECE), Coachella Valley Women’s Business Center (CVWBC), Enterprise Funding Corporation, and the School of Entrepreneurship. This number does not include CSUSB students that attend regular undergraduate programs during CSUSB’s academic school year such as course sessions. Business events at PD ERC exclude programming assumed from previous ERC manager (Riverside County Registrar of Voters polls, or City of Palm Desert Outreach programs). What are included in these events are unique programs hosted by CSUSB’s School of Entrepreneurship and Inland Empire Center of Entrepreneurship (IECE). These include Research Weeks, the Mini MBA program, business social and networking events, and Masterclass by CVWBC. In addition, ERC service providers provided virtual and webcast events to expand access and geographic footprint of services along with in-person events at the ERC. We’ve noted and distinguished the events held in-person at the ERC as well as events hosted virtually from the PD ERC facility. In addition, we note the distinctive event attendance for virtual versus in- person events. Economic Impact figures are important quantitative figures utilized to measure impact on business clients serviced at ERC. These numbers are collected from service providers at the ERC and compiled for the purposes of this report. Each program administered through the ERC is tasked with collecting data on clients serviced. For example, the CVWBC intakes each new client and has regular follow ups where clients will report and document progress. Data is verified with documentation provided by each program through various methods. Debt Financing: These figures include SBA-backed financing, bank loans and/or lines of credit that clients obtain as result of counseling, consulting, and advising services provided through ERC programming. Debt financing is a method of raising capital for a business or project by borrowing funds from external sources. The borrower is obligated to repay the principal amount borrowed, along with any interest or fees, over a specified period of time. Equity Financing: These figures include funds that clients/entrepreneurs invest in their own firms as well as capital raised by selling ownership stakes in their firms. Equity financing is a method of raising capital for a business or project by selling ownership shares or equity stakes to investors in exchange for funds. Unlike debt financing, where the business borrows money and must repay it with interest, equity financing involves issuing shares of ownership in the company to investors, who become partial owners of the business. 21 Sales Revenue: For the purpose of this report, we track contracts that are awarded to client companies of the ERC such as government or procurement contacts. In addition, we track sales revenue increase that clients serviced at the ERC obtain as a result of services provided through the ERC such as professional or technical development workshops, training events, in addition to consulting and advisory services. Jobs supported: This figure is directly reported by client companies of the ERC. It is a method utilized to quantify the direct number of jobs that are supported as result of ERC services. Part-time and full-time jobs are summarized in this figure. For example, a business owner that hires two (2) part-time employees would quantify as three (3) jobs. Or, a business owner and spouse that have two (2) full time employees would count as four (4). This figure typically includes the business owner and the employees. It is difficult to track part-time vs. full-time employees as many clients experience fluctuations in business and these numbers are self-reported by business owners and documented by ERC service providers. Underrepresented Minority-Owned Firms: These figures include the number of minority- owned businesses as defined by the U.S. Small Business Administration (SBA). These include firms that 51%+ owned by a female, Latino, Black, Asian-American and other groups classified as minorities. Companies in Residence and Graduated Companies: This figure quantifies and tracks companies that are based in the ERC and pay a monthly rental for an office or cubical space. As of June 2024, there are 6 distinct companies that rent office space at the ERC. This excludes CSUSB faculty offices, classrooms, and the CVWBC. Graduated companies are companies that sign up for a series of programs and obtain completion certificate upon completion of program requirements. In the 2nd quarter our partners gained momentum and we witnessed an increase in activity as result of CVWBC’s It’s Your Time and the School of Entrepreneurship’s Mini MBA programs. 22 Page 1 of 13 August 4, 2025 Authored by: Dr. Ezekiel Bonillas Dr. Mike Stull 2025 Palm Desert ERC 2nd Quarter Review: Innovations and Milestones 23 Page 2 of 13 PREFACE – IMPORTANT UPDATE REGARDING THE CENTER FOR ENTREPRENEURSHIP AND SCHOOL OF ENTREPRENEURSHIP AT CALIFORNIA STATE UNIVERSITY SAN BERNARDINO In May 2025, the California State University (CSU) Board of Trustees formalized a generous endowment to CSUSB’s School of Entrepreneurship and the Inland Empire Center for Entrepreneurship. Randall W. Lewis, executive vice president for marketing with The Lewis Group of Companies and a recipient of an Honorary Doctor of Humane Letters degree from Cal State San Bernardino (2021), gifted the school and center with $6 million. On May 21, 2025, the CSU Board of Trustees approved the renaming of the CSUSB School of Entrepreneurship and Inland Empire Center for Entrepreneurship to the Randall W. Lewis School of Entrepreneurship and Innovation and the Randall W. Lewis Center for Entrepreneurship. The endowed gift and irrevocable estate gift aim to empower the Randall W. Lewis School of Entrepreneurship and Innovation to broaden its transformative impact across the university and throughout the region. The school will continue to champion interdisciplinary approaches to entrepreneurial thinking and practice, engaging all academic colleges and administrative divisions in advancing a culture of innovation and opportunity. 24 Page 3 of 13 INTRODUCTION The following is a comprehensive activity report for the recently expanded Palm Desert Entrepreneurial Resource Center (ERC) – formerly known as Palm Desert iHub – a vibrant center of innovation and entrepreneurship in the heart of Coachella Valley. The Palm Desert Entrepreneurial Resource Center (ERC) its commitment to fostering innovation, supporting startups, and driving economic growth. As a catalyst for entrepreneurial success and regional economic development, the Palm Desert ERC focuses on transforming the regional landscape for business and entrepreneurial opportunities. In November 2023, the management of this dynamic facility was awarded to the Randall W. Lewis School of Entrepreneurship and Innovation (RLSEI) and Randall W. Lewis Center for Entrepreneurship (RLCE) at California State University, San Bernardino (CSUSB). This marked a pivotal shift towards heightened professionalism, innovation, and performance, with the RLSEI and RLCE jointly steering the Palm Desert ERC into a new era starting January 2024. This strategic partnership is designed to enhance the Palm Desert ERC's influence as a central player in both the local and broader Coachella Valley business ecosystems. The pages that follow provide a detailed report on the progress and achievements in the 2nd Quarter of 2025. We delve into the initiatives undertaken, milestones reached, and significant outcomes that underscore the impactful contributions of the RLSEI and RLCE. This report is a testament to our commitment to excellence and accountability, showcasing how our strategic management of the Palm Desert ERC has positively influenced the greater Palm Desert community and stakeholders. This quarterly report not only reflects on past accomplishments but also outlines our future initiatives aimed at sustaining and expanding our impact. As we move forward, the Palm Desert ERC will continue to introduce innovative programs and partnerships that address the evolving needs of our entrepreneurial community. We are committed to developing and expanding comprehensive support services to facilitate business creation and growth. Our ongoing efforts include enhancing our program offerings, growing our network of industry experts and providing entrepreneurs with the tools they need to succeed. By fostering a robust ecosystem of resources, the Palm Desert ERC remains at the forefront of entrepreneurial development in the Coachella Valley. 25 Page 4 of 13 KEY METRICS Several key metrics from the second quarter of 2025 highlight the impact and success of our initiatives at the Palm Desert Entrepreneurial Resource Center (ERC). At the 16-month mark since taking over management, these metrics span various aspects of our operations and underscore our dedication to nurturing entrepreneurship and stimulating economic growth in Palm Desert and the broader Coachella Valley. These indicators include the number of new business startups initiated, businesses assisted, and the extensive reach achieved through business counseling, as well as networking and training events. Each metric provides valuable insight into our efforts to support and empower local entrepreneurs. Furthermore, our effective team of business consultants, experts, and affiliates have aided business stakeholders make use of financial resources—such as SBA loans, business loans, and equity capital investments. This has been instrumental in fostering the growth and sustainability of businesses within our ecosystem. We also take pride in the Palm Desert ERC client achievements in various aspects, encompassing securing procurement contracts and boosting sales, which are clear indicators of the economic benefits reaped from our programs. In addition, we are committed to supporting a diverse range of business and entrepreneurial stakeholders, including minority-owned and women-owned firms, and entrepreneurs at various stages of their business journey. Lastly, we examine the composition of our incubator community, highlighting the number of companies currently housed and those that have successfully graduated, which reinforces our role as a catalyst for entrepreneurial success and development. Economic Metric Jan-Mar Q1 Apr – Jun Q2 Jul – Aug Q3 Sept- Dec Q4 Year-to- Date Total 1 Business Starts Number of entrepreneurs assisted that launched a new businesses or entity within specific time period. 10 22 32 2 Businesses Assisted Number of companies/entrepreneurs assisted through business counseling/consulting services provided at the PD ERC. 80 214 294 3 Business Events at PD ERC Business networking events, workshops, or technical training events hosted at the PD ERC. 19 36 55 3A Virtual Events at PD ERC Events hosted from PD ERC facility. 16 25 41 4 I-Hub sponsored event attendance Number of attendees at PD ERC sponsored events. 460 776 1236 26 Page 5 of 13 5 Economic Impact Quantitative metrics utilized to measure economic impact of PD ERC through services provided to companies/entrepreneurs SBA Loans Gross dollar amount of SBA-backed loans provided to companies/entrepreneurs as result of PD ERC provided services (i.e. 504, 7a) 0 $49.54M $49.54M Business Loans Gross dollar amount of non-SBA backed loans provided to companies/entrepreneurs as result of PD ERC provided services (i.e. bank loans, lines of credit) $20,000 0 $20,000 Other Capital Additional forms of capital that exclude SBA Loans or formalized institutional loans (i.e. bank loans) $7,500 $5,000 $12,500 Equity Capital and/or Investments Direct investments into companies that exclude debt capital (loans, lines of credit) $47,232 $61,228 $108,460 Government and/or Procurement Contracts Gross dollar amount of contracts secured by companies serviced at PD ERC. These can include contracts with larger companies or governments. $0 $0 $0 Increase in Sales This figure is directly reported by PD ERC service companies to track direct sales increases as result of business advisory, consulting, and/or coaching services provided. $534,397 $513,628 $1.04M 6 Jobs Supported Number of jobs created or retained at PD ERC client companies. 148 409 457 7 Minority-owned firms assisted Number of minority-owned businesses and/or entrepreneurs that have received services at PD ERC 54 218 272 8 Woman-owned firms assisted Number of women-owned businesses and/or entrepreneurs that have received services at PD ERC 46 254 272 9 Companies in residence Number of entrepreneurs and/or companies maintaining residence within the PD ERC (excluding CSUSB) 6 6 6 10 Graduating companies Number of companies and/or entrepreneurs that have graduated from PD ERC- provided longitudinal programming (i.e. It’s Your Time, Veteran Entrepreneurs, Mini-MBA) 0 38 38 27 Page 6 of 13 2nd Quarter 2025: PROGRAM HIGHLIGHTS Coachella Valley Women’s Business Center (CVWBC). As a key part of the Randall W. Lewis Center for Entrepreneurship (RLCE) at CSUSB, the Coachella Valley Women’s Business Center (CVWBC) has become a vital force in the Palm Desert ERC. Since relocating to the PD ERC in February 2024, CVWBC has continued to expand its reach— providing no- to low-cost consulting, training, and advisory services to meet the evolving needs of local entrepreneurs. Year-to-date, the CVWBC has directly supported 244 women-owned and 211 minority- owned firms. It has facilitated 22 new business starts and hosted 34 workshops with 509 attendees. In addition, the CVWBC has helped clients secure over $66,000 in capital and generate more than $513,000 in increased sales. With 271 jobs supported—including 86 Palm Desert-based companies—the CVWBC continues to play a meaningful role in supporting inclusive economic development and contributing to a stronger small business ecosystem in the region. Mini MBA in Entrepreneurship. Launched in April 2024, this impactful and innovative six- week curriculum, crafted by top-tier faculty from the School of Entrepreneurship at CSU, San Bernardino, is specifically designed to bolster both current and aspiring entrepreneurs. The program offers a comprehensive deep dive into essential business disciplines, covering everything from cultivating an entrepreneurial mindset to mastering key operational areas such as finance, human resources, strategy, and the nuances of scaling a business for substantial growth. Each session is brimming with actionable insights, enabling participants to directly apply new knowledge to their ventures. This dynamic course series not only provides rigorous academic instruction but also fosters a vibrant community, offering participants the chance to network with peers and innovate within their companies. The presence of seasoned entrepreneurs, like Buzzbox, Inc. Founder and CEO Rod Vandenbos, as well as Cristian Ojeda CPA, adds a layer of real- world experience and mentorship to the learning environment. In its first 18 months, the Mini MBA has proudly graduated 53 entrepreneurs across four (4) cohorts, demonstrating significant success and impact. In the second quarter of 2025, the program graduated its third and fourth cohorts in April and May of 2025. 28 Page 7 of 13 Lunch with an Entrepreneur. Held on April 30th, this annual event at the Palm Desert ERC brings together accomplished entrepreneurs and students from the CSUSB Palm Desert Campus for an engaging lunch- and-learn session. Designed to inspire and educate, the event creates a dynamic space where students pose thoughtful questions and gain firsthand insight into the entrepreneurial journey. From lessons learned to hard-won wisdom, the stories and advice shared are both candid and impactful. The event was attended by 27 Entrepreneurs and 25 students. Beyond the conversation, the event fosters meaningful connections. Students and entrepreneurs build rapport in an informal yet purposeful setting, laying the groundwork for future mentorship, collaboration, and professional growth. By helping students expand their networks and confidence, this event plays a vital role in preparing the next generation of entrepreneurs for success. AI Center Coachella Valley. In the first quarter, the Palm Desert ERC partnered for the official launch of the AI Center Coachella Valley (AICV), managed by entrepreneur and AI expert Sat Singh. Singh leads the development and execution of pioneering AI-driven projects, working to position AICV as the premier hub for AI innovation in the Coachella Valley. Under his leadership, AICV fosters a dynamic environment where collaboration among AI enthusiasts, founders, and content creators thrives. With a focus on experimentation, events, project coordination, and storytelling, AICV aims to transform ideas into MVPs and deliver impactful solutions that connect technology with enhanced user experiences. The AICV has launched regular programming at the PD ERC and been a contributor on bringing more awareness on the benefits and advantages of Artificial Intelligence for small business and entrepreneurs. Coachella Valley Small Business Development Center (CVSBDC) expansion. In March 2024, the Coachella Valley Small Business Development Center (CVSBDC) officially partnered with the Palm Desert Entrepreneurial Resource Center (ERC) as part of the Center’s broader expansion and strengthened collaboration with Riverside County. This partnership significantly enhances the breadth, scope, and depth of business support services available through the Palm Desert ERC, building upon the existing services already offered by the Center’s resource partners. With the addition of CVSBDC’s expertise, local 29 Page 8 of 13 entrepreneurs and small business owners now have greater access to specialized advising in startup assistance, marketing, operations, business planning, and growth strategies. A key feature of this partnership is the integration of the Access to Capital Center, a program designed to assist entrepreneurs in navigating funding opportunities and securing the capital necessary to launch and expand their businesses. This new offering complements the Palm Desert ERC’s existing collaboration with AmPac Business Capital, creating a more comprehensive, coordinated support system for business financing. Together, these initiatives position the Palm Desert ERC as a critical driver for small business success and economic development throughout the Coachella Valley. 30 Page 9 of 13 FEATURED SUCCESS STORIES Kassandra Rioseco-Jimenez, founder of Con Amor, Nina y León, has transformed her passion for baking and motherhood into one of the Coachella Valley’s most beloved artisan micro-bakeries. Named after her children, the business began as a heartfelt home project and quickly grew into a community favorite, known for its nostalgic Latin flavors and beautifully crafted pastries. With guidance from the Coachella Valley Women’s Business Center (CVWBC), Kassandra successfully secured all necessary permits, licenses, and food safety certifications. Counselors Jennifer Douheret and Salima Nurani supported her in accessing commercial kitchen space, developing a financial plan, and connecting with the City of Palm Desert— leading to pop-ups on El Paseo, the luxury retail street where she once worked. Today, Kassandra is not only building her brand through strategic collaborations and social media but also paving the way for a future bakery-bistro. Her journey is a shining example of creativity, resilience, and the power of community-centered entrepreneurship. Kendra from Miti Boards, a Palm Desert-based business, pulled off a massive win—securing a contract to serve BOTH weekends of Coachella and Stagecoach for Lady Gaga’s team. Known for her bold and elevated charcuterie creations, Kendra has grown Miti Boards into a luxury brand with a star-studded clientele. Over the past year, her sales have increased by more than 50%, fueled by relentless hustle, creativity, and strategic business growth. She’s been scaling with the support of the Coachella Valley Women’s Business Center, where entrepreneurs gain the tools, guidance, and confidence to go after big opportunities—like feeding pop icons at some of the world’s most iconic music festivals. 31 Page 10 of 13 2025 UPCOMING PROGRAMMING & INITIATIVES Entrepreneur Meetup – as a part of our ongoing focus of making the Palm Desert ERC the go-to location for all resources and events related to entrepreneurship, in Fall 2025 we will be launching the Entrepreneur Meetup event that will give aspiring and existing entrepreneurs an opportunity to connect, share stories, and build meaningful relationships The goal is to establish this as a monthly event that will provide a regular platform for entrepreneurs, investors, and industry experts to connect, collaborate, and gain valuable insights (New). AI Launchpad—Interactive workshops to help entrepreneurs and small business owners turn ideas in to custom AI-assistants. The objective is to help regional businesses and entrepreneurs boost their company or passion projects. Utilizing the latest AI’s such as ChatGPT, Gemini Gems, Cursor, Lovable, Bolt, and more. (Ongoing) It’s Your Time—A 12-week program offered by the CVWBC and designed to help women start and grow their own businesses; laying foundations on helping them become successful entrepreneurs. (Ongoing) CVWBC Accelerate—A Next Level is a six-week program to help businesses grow by providing intensive guidance, support, and structure. Business owners identify timing to scale their business and the types of growth. A program designed to help business owners prepare to become employers. (Ongoing) Mini MBA in Entrepreneurship (Cohort-based series)—A curriculum designed to empower current and aspiring entrepreneurs. From nurturing an entrepreneurial mindset to mastering financial considerations, human resources, strategy, and the secrets to scaling for growth, each session is packed with insights ready to be applied to a venture. This 6-week intensive course offers participants an opportunity to network with like- minded entrepreneurs, innovate within their companies, and apply new knowledge. (Ongoing) Industry Insights—Featuring business owners from a wide array of industries in the Greater Coachella Valley. This series explores the latest trends, innovative techniques, and business strategies that will elevate, inform, and inspire entrepreneurs in all business life cycles. Participants uncover valuable insights from a distinguished panel of speakers and refine skills in this dynamic and ever-evolving series. (Ongoing) Veteran’s Entrepreneurship Program—A program designed for veterans, it aims to equip veterans, active-duty members and their spouses with the skills, knowledge, and mindset necessary to navigate the entrepreneurial landscape successfully. Spanning over five (5) months, the curriculum is divided into two phases and delivered in both virtual and in person formats, with the initial month focusing on foundational workshops and the 32 Page 11 of 13 subsequent four months dedicated to deeper exploration and individualized consulting. The top entrepreneur wins a $7,000 prize to start their business. (Fall 2025) CONCLUSION As the Palm Desert ERC continues to evolve and grow, it is important to recognize the significant progress we’ve made over the past 16-months as well as in the second quarter of 2025. Through a combination of robust programming and strategic initiatives, the Palm Desert ERC continues to measurably increase entrepreneurial activity and economic impact throughout the region. The YTD metrics—ranging from new business starts and the number of businesses assisted to the success of our incubator programs—reflect our team’s steadfast commitment to building a thriving entrepreneurial ecosystem. Among our most notable achievements is the graduation of 104 companies from our programs in 2024, a milestone that underscores the ERC’s effectiveness in guiding ventures from idea to execution. Looking ahead, the ERC is well-positioned to drive even greater innovation and impact across the Coachella Valley. YTD Access to Capital in on-track to dwarf 2024 results with a 400% increase. In close collaboration with the Riverside County Office of Economic Development, , we are actively expanding initiatives that strengthen and scale our support offerings. These include the continued growth of our Mini MBA program, the launch of the Entrepreneur Meetup and the new AI Center, and the introduction of industry-specific roundtables designed to deliver targeted education, foster connection, and facilitate business growth. Together, these efforts serve not only to enhance our programming, but to lay the foundation for a resilient and adaptive entrepreneurial culture in the region. 33 Page 12 of 13 APPENDIX Explanatory Notes for Key Metrics: Business Startup metric is comprised of clients served whose business is in one of three categories: (a) Less than 1 year in business, (b) pre-venture stage, and (c) startup phase. There is an overlap between the pre-venture and launch phase. This is the result of the natural progression of the business life cycle from planning stage to launch. However, in the case of our reporting for 3rd quarter, we noted 129 distinct entrepreneurs that were served through our programs in the “startup” phase which includes businesses that in prelaunch phase of business through their first year after launching their business. Clients self-report their progress and for the purpose of our data collection, a business is considered “launched” when a client reports any of the following: first sale, obtain business license, incorporates, or files a fictitious name. Businesses assisted consists of entrepreneurs and/or business owners that have obtained services from any of the ERC programs. This includes the Randall W. Lewis Center for Entrepreneurship (RLCE), Coachella Valley Women’s Business Center (CVWBC), AmPac Business Capital, and the Randall W. Lewis School of Entrepreneurship and Innovation (RLSEI). This number does not include CSUSB students that attend regular undergraduate programs during CSUSB’s academic school year such as course sessions. Business events at the Palm Desert ERC exclude programming assumed from the previous ERC manager (Riverside County Registrar of Voters polls, or City of Palm Desert Outreach programs). What are included in these events are unique programs hosted by Randall W. Lewis School of Entrepreneurship and Innovation (RLSEI) and Randall W. Lewis Center for Entrepreneurship (RLCE). These include Research Weeks, the Mini MBA program, business social and networking events, and Masterclass by CVWBC. In addition, Palm Desert ERC service providers provided virtual and webcast events to expand access and geographic footprint of services along with in-person events. We have noted and distinguished the events held in-person at the Palm Desert ERC as well as events hosted virtually from the Palm Desert ERC facility. In addition, we note the distinctive event attendance for virtual versus in-person events. Economic Impact figures are important quantitative figures utilized to measure impact on business clients serviced at the Palm Desert ERC. These numbers are collected from service providers at the Palm Desert ERC and compiled for the purposes of this report. Each program administered through the Palm Desert ERC is tasked with collecting data on clients serviced. For example, the CVWBC intakes each new client and has regular follow ups where clients will report and document progress. Data is verified with documentation provided by each program through various methods. Debt Financing: These figures include SBA-backed financing, bank loans and/or lines of credit that clients obtain as a result of counseling, consulting, and advising services provided through Palm Desert ERC programming. Debt financing is a method of raising capital for a business or project by borrowing funds from external 34 Page 13 of 13 sources. The borrower is obligated to repay the principal amount borrowed, along with any interest or fees, over a specified period. Equity Financing: These figures include funds that clients/entrepreneurs invest in their own firms as well as capital raised by selling ownership stakes in their firms. Equity financing is a method of raising capital for a business or project by selling ownership shares or equity stakes to investors in exchange for funds. Unlike debt financing, where the business borrows money and must repay it with interest, equity financing involves issuing shares of ownership in the company to investors, who become partial owners of the business. Sales Revenue: For the purpose of this report, we track contracts that are awarded to client companies of the ERC such as government or procurement contacts. In addition, we track sales revenue increase that clients serviced at the Palm Desert ERC obtain as a result of services provided such as professional or technical development workshops, training events, in addition to consulting and advisory services. Jobs supported: This figure is directly reported by client companies of the Palm Desert ERC. It is a method utilized to quantify the direct number of jobs that are supported as result of ERC services. Part-time and full-time jobs are summarized in this figure. For example, a business owner that hires two (2) part-time employees would quantify as three (3) jobs. Or a business owner and spouse that have two (2) full time employees would count as four (4). This figure typically includes the business owner and the employees. It is difficult to track part-time vs. full-time employees as many clients experience fluctuations in business and these numbers are self-reported by business owners and documented by ERC service providers. Underrepresented Minority-Owned Firms: These figures include the number of minority-owned businesses as defined by the U.S. Small Business Administration (SBA). These include firms that 51%+ owned by a female, Latino, Black, Asian American and other groups classified as minorities. Companies in Residence and Graduated Companies: This figure quantifies and tracks companies that are based in the ERC and pay a monthly rental for an office or cubical space. As of June 2024, there are 6 distinct companies that rent office space at the Palm Desert ERC. This excludes CSUSB faculty offices, classrooms, and the CVWBC. Graduated companies are companies that sign up for a series of programs and obtain completion certificate upon completion of program requirements. In the 2nd quarter our partners gained momentum and we witnessed an increase in activity as result of CVWBC’s It’s Your Time and the School of Entrepreneurship’s Mini MBA programs. 35 36 Study Session of the Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Housing Authority, and Board of Library Trustees Minutes September 11, 2025, 3:15 p.m. Present: Councilmember Gina Nestande, Councilmember Karina Quintanilla, Councilmember Joe Pradetto, Mayor Pro Tem Evan Trubee, and Mayor Jan Harnik 1. CALL TO ORDER - STUDY SESSION A Study Session of the Palm Desert City Council was called to order by Mayor Harnik on Thursday, September 11, 2025, at 3:15 p.m. in the Council Chamber, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. 2. STUDY SESSION TOPICS 2.a CONSIDERATION OF AMENDING THE APPOINTMENT PROCESS FOR MAYOR AND MAYOR PRO TEM City Clerk Mejia narrated a PowerPoint presentation and responded to City Council inquiries. Following discussion regarding the appointment of the Mayor and Mayor Pro Tem, the City Council provided the following direction: 1. Clarify that declining service as either Mayor or Mayor Pro Tem resets a Councilmember’s “last served” date for purposes of rotation priority. 2. Include a deferral option in tie situations, allowing Members to voluntarily defer service without penalty. 3. Include a provision prohibiting Members from serving two consecutive terms. 3. ADJOURNMENT The City Council adjourned the Study Session at 3:22 p.m. 4. PUBLIC NOTICES _______________________ Monique M. Lomeli, CMC Senior Deputy Clerk _________________________ Anthony J. Mejia, MMC City Clerk/Secretary 37 38 Palm Desert City Council, Successor Agency to the Palm Desert Redevelopment Agency, Housing Authority, and Board of Library Trustees Regular Meeting Minutes September 11, 2025 Present: Councilmember Gina Nestande, Councilmember Joe Pradetto Councilmember Karina Quintanilla, Mayor Pro Tem Evan Trubee, and Mayor Jan Harnik 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, September 11, 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 4.a Closed Session Meeting Minutes: August 28, 2025 4.b Public Employee Evaluation pursuant to Government Code Section 54957: Title: City Attorney 5. ROLL CALL - REGULAR MEETING - 4:00 P.M. 6. PLEDGE OF ALLEGIANCE Councilmember Quintanilla led the Pledge of Allegiance. 7. INSPIRATION Mayor Harnik provided words of inspiration and displayed the short film Boatlift – An Untold Tale of 9/11 Resilience, commemorating September 11, 2001. 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 9.a PROCLAMATION: HUNGER ACTION MONTH Mayor Harnik presented a Proclamation to Debbie Espinosa, President & CEO of FIND Food Bank, in honor of Hunger Action Month. 39 Palm Desert City Council Regular Meeting Minutes September 11, 2025 2 9.b PROCLAMATION: CONSTITUTION WEEK Mayor Harnik presented a Proclamation to Rhonda Latkovic, representative of the Cahuilla Chapter of the National Society Daughters of the American Revolution, in honor of Constitution Week. 10. CITY MANAGER COMMENTS None. 11. MAYOR/COUNCILMEMBER REPORTS AND REQUESTS FOR ACTION Councilmembers provided updates on their attendance at various meetings and events. 12. NON-AGENDA PUBLIC COMMENTS Bill Miller, Palm Desert resident, spoke regarding 65 Check, a non -profit organization that supports seniors in the community. 13. CONSENT CALENDAR Mayor Pro Tem Trubee announced his recusal from Item 13f, citing a potential conflict of interest due to the proximity of the subject property to his property. Mayor Harnik announced her recusal from Item 13f, citing a potential conflict of interest due to the proximity of the subject property to her property. Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla To approve the consent calendar, as presented, with the exception of Items 13p and 13q, which were pulled for separate discussion. Motion Carried (5 to 0) 13.a APPROVAL OF CITY COUNCIL, SUCCESSOR AGENCY, AND HOUSING AUTHORITY MINUTES Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla Approve the Minutes of August 28, 2025. Motion Carried (5 to 0) 13.b APPROVAL OF WARRANT REGISTERS Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla Approve the warrant registers issued for the period 8/21/2025 to 8/29/2025. Motion Carried (5 to 0) 40 Palm Desert City Council Regular Meeting Minutes September 11, 2025 3 13.c RECEIVE AND FILE APPLICATIONS FOR ALCOHOLIC BEVERAGE LICENSE Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla Receive and file the application for Alcoholic Beverage License for: • BOHEMIOS MEXICAN CUISINE, 34460 MONTEREY AVE. PALM DESERT, CA 92211-6008. Motion Carried (5 to 0) 13.d ADOPTION OF ORDINANCE NO. 1433, AMENDING CHAPTER 29.30 OF THE PALM DESERT MUNICIPAL CODE TO RENAME THE “CULTURAL RESOURCES PRESERVATION COMMITTEE” TO THE “HISTORIC PRESERVATION COMMITTEE” Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla To adopt Ordinance No. 1433 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 29.30 OF THE PALM DESERT MUNICIPAL CODE TO RENAME THE ‘CULTURAL RESOURCES PRESERVATION COMMITTEE’ TO THE ‘HISTORIC PRESERVATION COMMITTEE’.” Motion Carried (5 to 0) 13.e ADOPT ORDINANCE NO. 1434, AMENDING CHAPTER 2.66 OF THE PALM DESERT MUNICIPAL CODE TO RENAME THE “RESOURCE PRESERVATION AND ENHANCEMENT COMMITTEE” TO THE “ENVIRONMENTAL RESOURCES COMMITTEE” Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla To adopt Ordinance No. 1434 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AMENDING CHAPTER 2.66 OF THE PALM DESERT MUNICIPAL CODE TO RENAME THE ‘RESOURCE PRESERVATION AND ENHANCEMENT COMMITTEE’ TO THE ‘ENVIRONMENTAL RESOURCES COMMITTEE’.” Motion Carried (5 to 0) 41 Palm Desert City Council Regular Meeting Minutes September 11, 2025 4 13.f ADOPT ORDINANCE NO. 1435, APPROVING A GENERAL PLAN AMENDMENT TO MODIFY THE CITY CENTER/DOWNTOWN SECTION OF THE GENERAL PLAN TO REMOVE MINIMUM DENSITY REQUIREMENTS AND CLARIFIES ALLOWED LAND USE TYPES AND MAKING A FINDING OF EXEMPTION UNDER CEQA Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla To adopt Ordinance No. 1435 entitled, “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING A GENERAL PLAN AMENDMENT TO MODIFY THE CITY CENTER/DOWNTOWN SECTION OF THE GENERAL PLAN TO REMOVE MINIMUM DENSITY REQUIREMENTS AND CLARIFIES ALLOWED LAND USE TYPES AND MAKING A FINDING OF EXEMPTION UNDER CEQA. CASE NOS. GPA25-0001” RECUSED: Mayor Harnik, Mayor Pro Tem Trubee Motion Carried (3 to 0) 13.g APPOINTMENT TO THE JOSLYN CENTER BOARD OF DIRECTORS LIAISON Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla To appoint Mayor Pro Tem Trubee as the City Council liaison to the Joslyn Center Board of Directors, effective immediately. Motion Carried (5 to 0) 13.h AWARD A CONSTRUCTION CONTRACT NO. C49890 TO CROSSTOWN ELECTRICAL & DATA, INC., FOR THE LOCAL HIGHWAY SAFETY IMPROVEMENT PROGRAM 2025 PROJECT (CTS00005) – CEQA DETERMINATION Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 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 determination of Categorical Exemption 2. Award construction contract no. C49890 to Crosstown Electrical & Data, Inc., of Irwindale, California, for the Local Highway Safety Improvement Program 2025 Project in the amount of $719,987.00, plus a $71,998.70 contingency for unforeseen expenses. 3. Authorize the City Attorney to make necessary non -monetary changes to the agreement. 42 Palm Desert City Council Regular Meeting Minutes September 11, 2025 5 4. Authorize the City Manager to execute the agreement, amendments, change orders up to the contingency amount, and any other documents necessary to effectuate the actions taken herewith. 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. Motion Carried (5 to 0) 13.i AWARD CONSTRUCTION CONTRACT NO. C49900 TO GRANITE CONSTRUCTION COMPANY FOR FIRE STATION 102 GERALD FORD DRIVE STREET IMPROVEMENTS (PROJECT NO. CFA00010) – CEQA DETERMINATION Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 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 construction contract no. C49900, including Bid Alternative 1, to Granite Construction Company, in the amount of $3,203,261 (Project CFA00010) for Fire Station 102 Gerald Ford Drive Street Improvements Project. 3. Authorize the Director of Finance to set aside 10% contingency in the amount of $320,326. 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. Motion Carried (5 to 0) 43 Palm Desert City Council Regular Meeting Minutes September 11, 2025 6 13.j INFORMATIONAL REPORT ON ROAD CLOSURES SCHEDULED TO OCCUR ON EL PASEO ASSOCIATED WITH FISCAL YEAR 2025-26 ROUTINE SPECIAL EVENTS Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla Receive and file an informational report on road closures scheduled to occur on El Paseo associated with Fiscal Year 2025-26 routine special events. Motion Carried (5 to 0) 13.k INFORMATIONAL REPORT ON ROAD CLOSURES ASSOCIATED WITH THE RUN TRAVIS RUN EVENT Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla Receive and file an informational report on road closures associated with the Run Travis Run event scheduled for Sunday, October 5, 2025. Motion Carried (5 to 0) 13.l REALLOCATE $30,000 IN FISCAL YEAR 2025-26 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 1. Approve the reallocation of $30,000 in Fiscal Year (FY) 2025 -26 Community Development Block Grant (CDBG) funds, originally designated for the Fair Housing Council of Riverside County, to the Palm Desert Housing Authority. 2. Authorize staff to notify the County of Riverside of the approved reallocation and submit any required documentation in the County’s CDBG records pursuant to the Joint Recipient Cooperation Agreement. 3. Authorize City Attorney to review and finalize any required agreements or amendments. 4. Authorize the City Manager to execute any documents necessary to complete the reallocation. Motion Carried (5 to 0) 44 Palm Desert City Council Regular Meeting Minutes September 11, 2025 7 13.m TRACT MAP 37506-2 PARKS D AND E, UNIVERSITY PARK – ACCEPT PUBLIC IMPROVEMENTS AND RELEASE RELATED BONDS, AND ACCEPT A MAINTENANCE BOND Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 1. Accept public improvements for Park D and Park E of Tract Map 37506-2, University Park. 2. Release the following bonds: a. Faithful Performance Bond in the amount of $815,648. b. Labor and Materials Bond in the amount of $815,648. 3. Accept the Maintenance Bond in the amount of $81,564.80. Motion Carried (5 to 0) 13.n REJECT ALL PROPOSALS FOR CITY FACILITIES JANITORIAL SERVICES AND AUTHORIZE STAFF TO READVERTISE THE REQUEST (PROJECT NO. MFA00023) Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 1. Reject all proposals submitted under Request for Proposal 2024-RFP-149, City Facilities Janitorial Services. 2. Authorize staff to readvertise the request and award with a more detailed scope of work. Motion Carried (5 to 0) 13.o RATIFY CHANGE ORDER NO. 3 TO CONTRACT NO. C43180 WITH BECK OIL FOR GAS AND DIESEL FUEL (MEQ00007) Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla Ratify Change Order No. 3 to Contract No. C43180 with Beck Oil, Inc., for Gas and Diesel Fuel Purchase, in the amount of $20,000, increasing the annual amount to $140,000. Motion Carried 45 Palm Desert City Council Regular Meeting Minutes September 11, 2025 8 13.r AWARD MAINTENANCE SERVICES AGREEMENTS C49910A TO HORIZON LIGHTING, INC., AND C49910B TO GA TECHNICAL SERVICES, INC., FOR ON-CALL ELECTRICAL SERVICES (PROJECT NO. MPK00009) Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 1. Award Maintenance Service Agreement No. C49910A to Horizon Lighting, Inc., and C49910B GA Technical Services, Inc., for on-call electrical services in the amount of $150,000 each, for a total not to exceed $300,000 per fiscal year, for a three-year term with the option of two one-year extensions. 2. Authorize the City Attorney to make necessary non -monetary changes to the agreement. 3. Authorize the City Manager to execute the agreement, change orders, the two one-year extensions, and any other documents necessary to effectuate the actions taken herewith. 4. Authorize National Community Renaissance of California, to enter on -call contract with Horizon Lighting, Inc., and GA Technical Services, Inc., for on- call electrical services, on behalf of the Palm Desert Housing Authority. Motion Carried (5 to 0) 13.s AWARD MAINTENANCE SERVICES AGREEMENTS C49920A TO URBAN WORX CONSTRUCTION, INC., AND C49920B TO PRO-CRAFT CONSTRUCTION, INC., FOR ON-CALL PLUMBING SERVICES (PROJECT NO. MPK00010) Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 1. Award Maintenance Service Agreements No. C49920A to Urban Worx Construction, Inc. and C49920B to Pro-Craft Construction, Inc., for on-call plumbing services in the amount of $150,000 each, for a total not to exceed $300,000 per fiscal year for a three-year term with the option of two one- year extensions. 2. Authorize the City Attorney to make necessary non -monetary changes to the agreement. 3. Authorize the City Manager to execute the agreement, two one-year extensions, change orders, and any other documents necessary to effectuate the actions taken herewith. 4. Authorize National Community Renaissance of California, to enter into on-call contracts with Urban Worx Construction, Inc. and Pro-Craft Construction, Inc., for on-call plumbing services, on behalf of the Palm Desert Housing Authority. Motion Carried (5 to 0) 46 Palm Desert City Council Regular Meeting Minutes September 11, 2025 9 13.t AWARD PROFESSIONAL SERVICES AGREEMENTS NOS. C49930 AND C49940 TO SELBERT PERKINS DESIGN FOR THE DESIGN OF THE EL PASEO PARKWAY IMPROVEMENTS AND TRAFFIC SIGNAL IISNS REPLACEMENT Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 1. Award Professional Services Agreement No. C49930 to Selbert Perkins Design, Inc., of Playa Del Rey, California, in the amount of $75,000 for the design of the El Paseo Parkway Improvements (CST00013). 2. Award Professional Services Agreement No. C49940 to Selbert Perkins Design, Inc., of Playa Del Rey, California, in the amount of $65,000 for the design of the Traffic Signal IISNS Replacement (MTS00002). 3. Authorize the City Attorney to make necessary non -monetary changes to the contracts. 4. Authorize the City Manager to execute the agreements and any written requests for amendments, and any other documents necessary to effectuate this action, in accordance with Palm Desert Municipal Code Section 3.30.170(B). Motion Carried (5 to 0) 13.u AUTHORIZE THE PURCHASE OF PLANTER BOXES FOR CATALINA COMMUNITY GARDEN (PROJECT NO. CLS00002) Motion by: Councilmember Pradetto Seconded by: Councilmember Quintanilla 1. Authorize the purchase of 50 concrete planter boxes from Seawright Custom Precast, Inc., in the amount of $241,533.75, plus a contingency of $24,000 for unforeseen circumstances. 2. Authorize the City Attorney to make necessary non -monetary changes to the agreement. 3. Authorize the City Manager to execute agreement no. C49950 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). Motion Carried (5 to 0) 47 Palm Desert City Council Regular Meeting Minutes September 11, 2025 10 CONSENT ITEMS HELD OVER 13.p RATIFY CHANGE ORDER NO. 3 TO CONTRACT NO. C48140 WITH DBX, INC., FOR THE MARKET PLACE DRIVE AND COOK STREET TRAFFIC SIGNAL IMPROVEMENTS (CTS00001) Councilmember Quintanilla expressed appreciation for staff’s dedication to the project. Motion by: Mayor Pro Tem Trubee Seconded by: Councilmember Pradetto Ratify Change Order No. 3 to Contract No. C48140 with DBX, Inc., to increase compensation in the amount of $6,329.65 for the Market Place Drive and Cook Street Traffic Signal Improvements. Motion Carried (5 to 0) 13.q APPROVE AMENDMENT NO. 4 TO CONTRACT NO. C32410 WITH DESERT RECREATION DISTRICT FOR PARK AND PORTOLA COMMUNITY CENTER SERVICES In response to City Council inquiry, Community Services Manager Muir provided information regarding the process by which members of the community can contact Parking Enforcement. Motion by: Mayor Pro Tem Trubee Seconded by: Councilmember Pradetto 1. Approve Amendment No. 4 to Contract No. C32410 with Desert Recreation District to incorporate the updated Pricing Matrix (Exhibit B), reflecting revised labor and material rates for Park and Portola Community Center services. 2. Authorize the City Attorney to make any necessary non -monetary changes to the amendments. 3. Authorize the City Manager to execute the amendments and any documents necessary to effectuate the actions taken herewith. Motion Carried (5 to 0) 48 Palm Desert City Council Regular Meeting Minutes September 11, 2025 11 14. ACTION CALENDAR 14.a CITY MANAGER EMPLOYMENT AGREEMENT NO. C49960 City Attorney Shah presented the staff report and read the compensation and benefits for the City Manager in accordance with Senate Bill 1436. The City Council expressed its appreciation for City Manager Escobedo’s ongoing dedication and service to the City. Motion by: Councilmember Quintanilla Seconded by: Mayor Harnik Approve the City Manager Employment Agreement No. C49960 with Christopher Escobedo, effective September 11, 2025, and authorize the Mayor to execute the agreement. Motion Carried (5 to 0) 14.b 2026 CALIFORNIA DESERT PLEIN AIR FESTIVAL SPONSORSHIP REQUEST Management Analyst Powell provided a staff report and responded to City Council inquiries. In response to City Council inquiry, Paulina Larson, of Palm Springs Life, advised that artists and attendee surveys will be taken as part of the 2026 event. Motion by: Councilmember Pradetto Seconded by: Councilmember Nestande Approve sponsorship for the 2026 California Desert Plein Air Festival, Sponsorship Agreement No. C49970. Motion Carried (5 to 0) 49 Palm Desert City Council Regular Meeting Minutes September 11, 2025 12 14.c AWARD OF CONTRACT NO. C49980 FOR EL PASEO COURTESY CART PROGRAM Business and Community Outreach Coordinator Mager narrated a PowerPoint presentation and responded to City Council inquiries. Motion by: Councilmember Nestande Seconded by: Councilmember Pradetto 1. Award contract no. C49980 to ACE Parking III, LLC, in an amount not to exceed $295,979 for the operation of the El Paseo Courtesy Cart Program during Fiscal Year 2025-26, with options for two one-year extensions. 2. Authorize the City Attorney to make non-monetary changes to the contract. 3. Authorize the City Manager to continue negotiations with the vendor to finalize the contract, transfer necessary budget amounts, and to execute the agreement and any related amendments. Motion Carried (5 to 0) 15. PUBLIC HEARINGS None. 16. INFORMATION ITEMS None. 17. ADJOURNMENT The City Council adjourned at 6:04 p.m. in honor and memory of Harold Matzner. 18. PUBLIC NOTICES _________________________ Monique M. Lomeli, CMC Senior Deputy Clerk _________________________ Anthony J. Mejia, MMC City Clerk/Secretary 50 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/3/2025 - 9/3/2025 City of Palm Desert Account Number 09/03/202500005233 A+ WINDOW & GUTTER CLEANINGW1 R/M ROOF CLEANING - FS#67 My2543310002304220 9708 750.00 09/03/202500005234 HR GREEN PACIFIC INCW1 Stormwater Drainage Jn25 Svcs44001002134370 189885 81,024.33 09/03/202500005235 RICHARD KENNEDY ARCHITECTS INCW1 Jul25 Svcs Library Arch&Design14301004520000 1015 9,372.25 09/03/202500005235 RICHARD KENNEDY ARCHITECTS INCW1 Jul25 Svcs Library Arch&Design14301004520000 1015 5,437.50 09/03/202500005235 RICHARD KENNEDY ARCHITECTS INCW1 May25 Svcs Library Arch&Design44001004524136 1014 74,978.00 09/03/202500005235 RICHARD KENNEDY ARCHITECTS INCW1 May25 Svcs Library Arch&Design44001004524136 1014 10,905.00 09/03/202500005235 RICHARD KENNEDY ARCHITECTS INCW1 Jun25 Svcs Library Arch&Design44001004524136 1015 9,372.25 09/03/202500005235 RICHARD KENNEDY ARCHITECTS INCW1 Jun25 Svcs Library Arch&Design44001004524136 1015 5,437.50 09/03/202502007612 DOKKEN ENGINEERINGW1 May-Jun25 Svcs Bridge Prev MP44001002134359 49764 3,987.50 09/03/202502007613 ENGINEERING RESOURCESW1 Jun25 Svcs - 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9/4/2025 City of Palm Desert Account Number 09/04/202502007645 T-MOBILE USA INCW1 MIFI - LANDSCAPING43650001104614 203492119-AUG25 31.35 09/04/202502007646 TPX COMMUNICATIONS COW1 INTERNET/PHONE SVC - AUG2543650001104190 186888248-0 9,357.46 09/04/202502007647 TRI STAR CONTRACTING II INCW1 VOLLEYBALL SAND RPLCMNT - CC44001004004674 050625G 109,652.00 Examined and Approved Total For Bank ID - W1 2,512,960.28City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 09/04/2025Report Date 9Page City and Housing Docusign Envelope ID: 0B8A5B19-6B3E-49C6-856E-69506C4F5D87 61 62 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/5/2025 - 9/5/2025 City of Palm Desert Account Number 09/05/202500005145 ADKINS, MICHAELW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,574.39 09/05/202500005146 ALLEN, FRANKW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005147 AVERY, ANNW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 657.41 09/05/202500005148 BASSLER, THOMASW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005149 BISHOP, ROBERTW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 707.98 09/05/202500005150 BLYTHE, BARBARAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 291.10 09/05/202500005151 BO CHENW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 550.44 09/05/202500005152 BRADLEY, DEBRAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005153 BROWN, MICHAELW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 829.30 09/05/202500005154 CANALES, CHRISTINAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 532.61 09/05/202500005155 CECHIN, TERRYW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 835.62 09/05/202500005156 CEHR, DAVIDW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005157 CELAYA , HORACIOW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,497.04 09/05/202500005158 CICCHINI, SUZANNEW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005159 CONLON, PATRICK C.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005160 CRAWFORD, DANNYW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 2,033.00 09/05/202500005161 CROY, HOMERW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 505.70 09/05/202500005162 DARLING, GLORIAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005163 HOLLINGER, DIANEW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005164 DIERCKS, MARKW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 138.81 09/05/202500005165 DOYLE, KARENW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 760.58 09/05/202500005166 DRELL, PHILIP D.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005167 ESPINOZA, JOSE LUISW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 2,345.77 09/05/202500005168 FANNING, JODIW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,101.78 09/05/202500005169 FERGUSON, JAMES C.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,098.78 09/05/202500005170 FLINT, DAVIDW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 277.35 09/05/202500005171 FOLKERS, RICHARD J.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/2025Report Date 1Page City and Housing Docusign Envelope ID: 826FCA78-1345-4340-9569-FC70596127F6 63 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/5/2025 - 9/5/2025 City of Palm Desert Account Number 09/05/202500005172 GARCIA, MIGUELW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 829.30 09/05/202500005173 GARNER, PAGEW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,253.44 09/05/202500005174 GAUGUSH, CORAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005175 GIBSON, PAUL S.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005176 GLICKMAN, DEBORAH SCHWARTZW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,777.09 09/05/202500005177 GODFREY, BEN ORRINW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005178 GOMEZ, DONNAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,267.82 09/05/202500005179 GRANCE, RUSSELLW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,086.31 09/05/202500005180 GREENWOOD, MARKW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,777.09 09/05/202500005181 GRIFFIN, ROSALVAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 316.90 09/05/202500005182 HENDERSON, RHONDAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 653.24 09/05/202500005183 HERMANN, DAVIDW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,658.62 09/05/202500005184 HERNANDEZ, ANTHONYW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 829.30 09/05/202500005185 HERNANDEZ, CARLOSW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,777.09 09/05/202500005186 HOLTZ, GREGGW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005187 JOHNSON, SONDRAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005188 JOY, PHILLIP E.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 576.39 09/05/202500005189 JUDY, JANINE MARIEW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 298.69 09/05/202500005190 KARIMI, BASHIER AHMADW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005191 KILPATRICK, SHAWNW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,748.32 09/05/202500005192 KLASSEN, RACHELLE D.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,267.82 09/05/202500005193 KNIGHT, SPENCERW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005194 KNUTSON, LAURELW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 198.97 09/05/202500005195 LEAL, DIANAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,124.22 09/05/202500005196 LONGMAN, ELIZABETH M.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 174.17 09/05/202500005197 LOPEZ, PATRICIAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 829.30 09/05/202500005198 MCBRIDE, CRAIGW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/2025Report Date 2Page City and Housing Docusign Envelope ID: 826FCA78-1345-4340-9569-FC70596127F6 64 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/5/2025 - 9/5/2025 City of Palm Desert Account Number 09/05/202500005199 MCCARTHY, JUSTINW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 606.84 09/05/202500005200 METZ, THOMASW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,836.50 09/05/202500005201 MONROE, TONYAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 829.30 09/05/202500005202 MOORE, JANETW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,267.82 09/05/202500005203 MOORE, RUTH ANNW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005204 NEELY, MICHAELW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005205 NIEMCZAK, JAYW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 156.34 09/05/202500005206 O'REILLY, MONICAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,183.72 09/05/202500005207 OSBORN, LINDAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005208 PONDER, HARTW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 174.17 09/05/202500005209 PRUSINOWSKI, KARENW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 657.41 09/05/202500005210 REAM, LISAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 390.58 09/05/202500005211 RIDDLE, FRANKIEW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 814.91 09/05/202500005212 ROCHA, GRACE L.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 934.83 09/05/202500005213 ROSAS, SERGIOW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005214 RUSSELL, LINDAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 532.84 09/05/202500005215 SCULLY, PATRICIA H.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005216 CHRISTIANSEN, SHARONW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202500005217 SMITH, STEPHEN R.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202500005218 SNAKE, CYRILW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,497.04 09/05/202500005219 STANLEY, JANEW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 472.22 09/05/202500005220 SZYMANSKI, BETTYW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,436.87 09/05/202500005221 TOWNSEND, ALANAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 362.69 09/05/202500005222 TUCKER, RONW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 532.61 09/05/202500005223 WALKER, DELW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 369.71 09/05/202500005224 WEIL, CHIN-YUW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 532.61 09/05/202500005225 WELLER, DENIW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/2025Report Date 3Page City and Housing Docusign Envelope ID: 826FCA78-1345-4340-9569-FC70596127F6 65 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/5/2025 - 9/5/2025 City of Palm Desert Account Number 09/05/202500005226 WHITE, BRYCEW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 298.69 09/05/202500005227 WILCOX, DARINW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 377.07 09/05/202500005228 WITTE, LOCKW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,188.28 09/05/202500005229 ZAMARRIPA, AARONW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 829.30 09/05/202500005230 ZAMORA, FLORENTINO G.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 396.12 09/05/202500005231 ZATARAIN, ABELW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,101.78 09/05/202500005232 ZATARAIN, GERARDOW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 1,267.82 09/05/202502007608 BEDROSIAN, PATRICKW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 298.69 09/05/202502007609 FENSKE, CHARLESW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 09/05/202502007610 WRIGHT, BARBARAW1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 320.02 09/05/202502007611 YRIGOYEN, DAVID L.W1 RETIREE HEALTH STIPEND 09/2541190005764192 9/1/2025 758.55 Examined and Approved Total For Bank ID - W1 72,702.62City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 09/05/2025Report Date 4Page City and Housing Docusign Envelope ID: 826FCA78-1345-4340-9569-FC70596127F6 66 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/11/2025 - 9/11/2025 City of Palm Desert Account Number 09/11/202500005268 AMAZON CAPITAL SERVICES INC.W1 Standing Desks for Relocation44040001104159 1TJ1-J1MC-J96L 1,331.68 09/11/202500005268 AMAZON CAPITAL SERVICES INC.W1 9.2.25 Wellness Fair Activity42190001104154 1WTJ-YLP1-LKQ4 134.96 09/11/202500005269 BRINKS CAPITAL LLCW1 Transport Services - Sept 202543090001104159 13007000 1,362.50 09/11/202500005270 CDW LLCW1 Supplies Tripp 25ft HDMI Cable42120001104190 AF6Y43X 26.73 09/11/202500005270 CDW LLCW1 AWS Consumption - JUL2543620011104190 ZR00785008 1,455.38 09/11/202500005271 CITY EMPLOYEES ASSOCIATES LLCW1 PDEO DUES through 08/202521613001100000 PDEO AUG 25 1,530.00 09/11/202500005272 DAVID REYES JR.W1 REIMB SAFETY FOOTWEAR - DR43915001104300 0825DR-BOOTREIM 244.58 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental 136411503001100000 BE006656421 81.96 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental 101311503001100000 BE006656421 138.39 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental 130411503001100000 BE006656421 43.47 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Delta Dental Premium 08/202521609001100000 BE006656421 14,815.97 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental 125141122001104130 BE006656421 112.86 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental Rounding41122001104150 BE006656421 0.19 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental 136341122001104340 BE006656421 43.47 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental 136741122001104470 BE006656421 -81.96 09/11/202500005273 DELTA DENTAL OF CALIFORNIAW1 Dental 136841122001104470 BE006656421 -43.47 09/11/202500005274 FFP FUND VIII P1 PROJECTCO15W1 JL25 SOLAR ENERGY - PSAM43885001104800 2025-F8P1-000163 6,471.09 09/11/202500005274 FFP FUND VIII P1 PROJECTCO15W1 JL25 SOLAR ENERGY - 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ENDICOTT INCW1 Nameplates 04.03.202542190001104154 10358 115.83 09/11/202502007663 KNORR SYSTEMS INCW1 R/M POOL PUMPS - PDAC 7/2/2543311012424549 277166 1,746.75 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS42190001104310 997675-080425 165.10 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS42190001104310 985353-072925 183.81 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - CORPYARD42190001104330 990014-073125 33.82 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 TABLES - CITY HALL42190001104340 992625-080125 371.79 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 R/M MISC SUPPLIES - TRAFFIC42190001104250 985117-070125 12.83 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS42190001104310 986458-070225 95.47 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 R/M MISC SUPPLIES - STREETS42190001104310 973393-080625 11.55 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 R/M BLDG SUPPLIES - CITY HALL42190001104340 999110-080425 41.28 09/11/2025Report Date 8Page City and Housing Docusign Envelope ID: 8EA83CC4-4DEA-428E-A98D-7A743092A986 74 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/11/2025 - 9/11/2025 City of Palm Desert Account Number 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - CITY HALL42190001104340 993442-080125 92.89 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 R/M MISC SUPPLIES - STREETS43320001104310 970456-070825 30.93 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS42190001104310 998088-081825 307.87 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SUPPLIES - STREETS42190001104310 974565-080725 222.68 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 SMALL TOOLS - STREETS42190001104310 989680-073125 270.94 09/11/202502007664 LOWE'S HOME CENTERS INC.W1 MISC SUPPLIES - CC PARK42190001104610 970513-080525 69.08 09/11/202502007665 MICHAEL FRANCESCHINIW1 Fortunate Son Concert 10/16/2543061011104416 250825-1 3,000.00 09/11/202502007666 MOLINA, AMBER CLARISSAW1 Supplies for PDU 8/26/2543121011104154 1149209590785383 39.10 09/11/202502007666 MOLINA, AMBER CLARISSAW1 Wellness Fair Supplies 09.202542190001104154 000216 31.91 09/11/202502007667 MOWERS PLUS INCW1 R/M SMALL EQUIPMENT - RAMMER43340001104331 332936 677.17 09/11/202502007667 MOWERS PLUS INCW1 R/M SMALL EQUIPMENT GENERATOR43340001104331 332937 85.00 09/11/202502007667 MOWERS PLUS INCW1 R/M SMALL EQUIP - CHAINSAW43340001104331 333771 167.48 09/11/202502007667 MOWERS PLUS INCW1 R/M SMALL EQUIP - CHAINSAW43340001104331 333770 167.48 09/11/202502007668 MRON'S TOWINGW1 TOWING FLEET #093 - LEASE43340001104331 25-08631 83.00 09/11/202502007669 OZZIE'S INTERNATIONALW1 R/M FLEET #058 - TIRE REPAIR43340001104331 38779 21.50 09/11/202502007669 OZZIE'S INTERNATIONALW1 R/M FLEET #060-OWNED AC REPAIR43340001104331 38610 882.70 09/11/202502007669 OZZIE'S INTERNATIONALW1 R/M FLEET #065-OWNED HEADLIGHT43340001104331 38661 181.44 09/11/202502007670 PBK ARCHITECTS INCW1 Aug25 FS33 Architectual Svcs44002002304220 PP#12 31,000.00 09/11/202502007670 PBK ARCHITECTS INCW1 Aug25 FS71 Architectual Svcs44002002304220 PP#12 31,000.00 09/11/202502007670 PBK ARCHITECTS INCW1 Aug25 Svcs - NS FS10244001002354270 PP#23 4,400.00 09/11/202502007671 RETAIL COACH LLCW1 Retail Mkt Analysis Svc 9/2543090001104430 5772 3,333.33 09/11/202502007672 RIVCO MECHANICAL SERVICES INCW1 R/M EVALUATION - ARTIST CTR43885001104800 W30983 440.00 09/11/202502007673 RIVERSIDE COUNTY DEPUTYW1 RSA Golf Tourn 2025 TeeSign Sp43062011104800 RSA GOLF TOURN 1,000.00 09/11/202502007674 SIMPLOT PARTNERSW1 R/M IRRIG SUPPLIES - STREETS42190001104310 208167336 28.01 09/11/202502007674 SIMPLOT PARTNERSW1 R/M IRRIG SUPPLIES - STREETS42190001104310 208167413 20.00 09/11/202502007675 SOUTHERN CALIFORNIA EDISONW1 75241 1/2 RADFORD - Univ Park43514001104611 700994260350JL25 44.40 09/11/202502007676 SPERIDIAN TECHNOLOGIES LLCW1 Development Complete Sign-off43900001104190 38625 108,180.00 09/11/2025Report Date 9Page City and Housing Docusign Envelope ID: 8EA83CC4-4DEA-428E-A98D-7A743092A986 75 Check DateCheck Number Vendor NameBank ID Check Register Amount PaidInvoiceTransaction Desc 9/11/2025 - 9/11/2025 City of Palm Desert Account Number 09/11/202502007676 SPERIDIAN TECHNOLOGIES LLCW1 NEW FEE IMPLEMENT CO#443900001104190 38625 24,000.00 09/11/202502007677 ST. FRANCIS ELECTRIC LLCW1 R/M TRAFFIC SIGNAL -CC/LIBERTY43325001104250 25062101 28,858.49 09/11/202502007677 ST. FRANCIS ELECTRIC LLCW1 JL25 R/M TRAFFIC SIGNAL43325001104250 25062102 3,283.50 09/11/202502007677 ST. FRANCIS ELECTRIC LLCW1 R/M TRAFFIC SIGNAL - RESPONSE43325001104250 25062103 1,037.46 09/11/202502007678 SUPERIOR READY MIX CONCRETEW1 R/M CONCRETE MIX - DSRT FALLS43320001104310 950000486491 1,155.09 09/11/202502007679 XPRESS GRAPHICSW1 Admin Reno Sign - Lobby43610001104417 25-73099 129.40 Examined and Approved Total For Bank ID - W1 954,980.98City Manager Examined and Approved Mayor or Mayor Pro-Tem Audited and Found Correct Director of Finance 09/11/2025Report Date 10Page City and Housing Docusign Envelope ID: 8EA83CC4-4DEA-428E-A98D-7A743092A986 76 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Skky Wolkowicz, Management Analyst SUBJECT: AUGUST 2025 PROCUREMENT REPORT RECOMMENDATION: Receive and file the monthly Procurement Report for August 2025. BACKGROUND/ANALYSIS: The monthly procurement report documents the procurement activities of the City of Palm Desert for the month ending August 31, 2025, pursuant to the Purchasing Policy. FINANCIAL IMPACT: There is no financial impact from this action. ATTACHMENTS: Procurement Report for August 2025 77 78 Palm Desert Muni Code Chapter 3.30 - Purchasing System and Public Works Contracts Date 8/1/2025 Desert Willow Pads C&D Design Consultation Services 8/1/2025 Order/Amendment Increase to Uniform Rental & Laundry Svcs for FY 25-26 8/4/2025 8/4/2025 8/5/2025 8/5/2025 Order/Amendment No Cost Time Extension Restroom remodel 8/7/2025 Lead & Asbestos Survey of Sears and Parkview Building 8/7/2025 8/11/2025 8/11/2025 8/11/2025 Consultant Services for deferred compensation plans 8/11/2025 City of Palm Desert 3. 3 0 . 0 5 0 - 3 . 3 0 . 0 9 0 - 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 Administrative Contract/Purchase Approval by City Manager or Designee 79 Date Vendor Name Department Amount Document Type Description/Reason 8/11/2025 8/11/2025 8/11/2025 Public Works 35,000 Architectural Desing Services 8/11/2025 Order/Amendment Bus Shelter maintenance agreement 8/11/2025 Public Works 70,369 Purchase two circulation pumps for PDAC 8/11/2025 Public Works 30,000 As needed professional traffic engineering services 8/11/2025 Order/Amendment Amendment contract to revise the compensation section to include per fiscal year 8/12/2025 8/12/2025 Order/Amendment Mister system services and repairs 8/12/2025 Order/Amendment Add'l scope of work for Desert Willow Mountainview Golf Course Turf Reduction 8/13/2025 Order/Amendment Add'l funds for on call electrical and lighting repairs 8/13/2025 8/13/2025 8/14/2025 8/14/2025 8/14/2025 Order/Amendment Purchase industrial paint mixers 8/14/2025 Order/Amendment Install Cook Street and Market Place Drive traffic signal 80 Date Vendor Name Department Amount Document Type Description/Reason 8/15/2025 8/18/2025 Emergency generator repairs at the Joslyn Senior Center 8/19/2025 8/19/2025 8/20/2025 8/20/2025 8/20/2025 8/20/2025 8/21/2025 8/21/2025 8/21/2025 8/25/2025 8/25/2025 8/25/2025 8/25/2025 8/27/2025 8/27/2025 8/28/2025 Order/Amendment No cost time extension for the access control upgrade installation at the Corp Yard 8/28/2025 2,271,143 81 Date 8/28/2025 8/28/2025 Public Works 1,004,206 Purchase Purchase pump room equipment for the Aquatic Center 8/28/2025 8/28/2025 8/28/2025 Public Works 8/28/2025 8/28/2025 8/28/2025 8/28/2025 CIP 458,936 Construction Contract 8/28/2025 Public Works 750,000 Amendment 8/28/2025 City Manager 1,630,005 Agreement 5,747,582 Total Contract Approvals 8,018,725 8/13/2025 Public Works 8/28/2025 Construct pump room renovations and replace equipment 8/18/2025 Measures-Ballistic Glass and Public Works 9/16/2025 Full replacement with ballistic-rated glass windows and application of ballistic window film These approvals are consistent with the Purchasing Policy and the FY 2025-26 Annual Budget. 750,000 Amendment to clarify the contract aggregate amount of $750,000 per fiscal year 82 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION MICHELLE NANCE, ACTING ASSISTANT 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 furth er 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): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ La Tablita Mexican Restaurant 72261 HWY 111 Ste 120, Palm Desert, CA 92260-2740 Monday, September 22, 2025. September 15, 2025Building and Safety 4 September 15, 2025 83 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION 0,&+(//(1$1&(, $&7,1*$66,67$17CITY CLERK Subject: APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) BY: _____________________________________________________ A copy of the subject ABC License Application is attached for your review and recommendation to the City Council or to another department(s) for further action. A response is required. Please mark the appropriate response below and return to my office by __________________________ Responding Department:__________________________Date:B_______________ Response: No comment – okay to present to City Council. Refer to______________________________________  related comments (attach additional sheets, if necessary): _________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Other – Additional comments (attach additional sheets, if necessary): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ La Tablita Mexican Restaurant 72261 HWY 111 Ste 131, Palm Desert, CA 92260-2740 Monda , Se tember 22, 2025. Se tember 18, 2025Develoment Services: Plannin ✔ Se tember 15 202 84 85 86 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION MICHELLE NANCE, ACTING ASSISTANT 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 furth er 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): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Red Barn 73290 HWY 111 Palm Desert, CA 92260-3903 Monday, September 22, 2025. September 15, 2025Building and Safety 4 September 15, 2025 87 CITY OF PALM DESERT CITY CLERK DEPARTMENT INTEROFFICE MEMORANDUM To: From: Date: BUILDING AND SAFETY DIVISION AND PLANNING DIVISION 0,&+(//(1$1&(, $&7,1*$66,67$17CITY 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): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ Red Barn 73290 HWY 111 Palm Desert, CA 92260-3903 Monda , Se tember 22, 2025. Se tember 18, 2025Develoment Services: Plannin ✔ Se tember 15 202 88 89 90 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Anthony J. Mejia, City Clerk SUBJECT: RATIFICATION OF LETTER CALLING FOR AN EQUITABLE ALLOCATION OF PROPOSITION 4 SALTON SEA FUNDING RECOMMENDATION: Ratify the issuance of a letter calling for an equitable allocation of Proposition 4 funds between the Salton Sea Authority and the Salton Sea Conservancy. BACKGROUND/ANALYSIS: The City received a request from the Salton Sea Authority to provide support for the equitable allocation of funds included in Proposition 4, which was approved by California voters in 2024. Proposition 4 allocates $10 million under Public Resources Code Section 91033(b) for the benefit of either the Salton Sea Authority or the newly formed Salton Sea Conservancy, but the measure does not prescribe how funds should be distributed between the two entities. The Authority has emphasized the importance of continued funding for pr ojects that address environmental restoration, public health, and economic revitalization in and around the Salton Sea. These include the North Lake Pilot Demonstration Project, the Desert Shores Channel Restoration Project, federal feasibility studies in partnership with the U.S. Army Corps of Engineers, and the development of an air monitoring task force. At the same time, the Salton Sea Conservancy, created by statute in 2024, is in its formative stage and requires foundational resources to effectively launch and carry out its mission. The City Council Subcommittee on Legislative/Governmental Affairs reviewed this request and authorized issuance of the letter. The attached letter urges the Legislature to allocate $5 million to the Salton Sea Authority and $5 million to the Salton Sea Conservancy. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no financial impact to the City associated with this action. ATTACHMENTS: 1. Letter of Support 2. Proposition 4 Allocation Matrix – Salton Sea Authority and Conservancy 91 92 C I T Y O F P A L M D E S E R T 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92260-2578 TEL: 760-346-0611 INFO@PALMDESERT.GOV September 11, 2025 Honorable Steve Padilla California State Senate 1021 O Street, Suite 7630 Sacramento, CA 95814 Honorable Scott Wiener, Chair Senate Budget and Fiscal Review Committee 1021 O Street, Suite 8630 Sacramento, CA 95814 Honorable Jesse Gabriel, Chair Assembly Budget Committee 1021 O Street, Suite 8230 Sacramento, CA 95814 Honorable Benjamin Allen, Chair Senate Budget Subcommittee #2 1021 O Street, Suite 6610 Sacramento, CA 95814 Honorable Steve Bennett, Chair Assembly Budget Subcommittee #4 1021 O Street, Suite 4710 Sacramento, CA 95814 RE: Proposition 4 – Salton Sea Funding Allocation Dear Chairs and Honorable Legislators: On behalf of the City of Palm Desert, we urge an equitable allocation of funding included in Proposition 4 to support essential and ongoing activities in and around the Salton Sea. Specifically, we propose that the funds provided under Section 91033(b) be allocated as follows: • $5 million to the Salton Sea Authority to continue its work relating to the Salton Sea Management Program, including in partnership with the Department of Water Resources (together as “joint local sponsors”) and the United States Army Corps of Engineers, the continued pursuit of a comprehensive ecosystem restoration plan. Once completed, this plan will facilitate access to 65% matching funds for all subsequent work. Additional efforts include collaboration with the State, in accordance with AB 71 (2013, Pérez), on the creation and implementation of the Salton Sea Conservancy, as well as related environmental, public safety, and economic revitalization initiatives. • $5 million to the California Natural Resources Agency to fund the creation of the Salton Sea Conservancy, established through the 2024 statute. 93 The newly formed Salton Sea Conservancy provides a critical tool for ensuring future sustainable management and revitalization of the Sea. However, the Conservancy is still in its formative stage and requires a solid foundation to effectively launch and ca rry out its mission. At the same time, the Salton Sea Authority continues its invaluable work in collaborating with the State on the Salton Sea Management Program, spearheading initiatives that address environmental degradation, public health concerns, and the economic disinvestment plaguing our region. These efforts are essential to securing an equitable and sustainable future for the Salton Sea and for the frontline communities most impacted by its decline. Equally important, the Authority’s efforts to address current and future impacts on the Sea and a djacent communities resulting from increased conservation are critical to long-term water security for California and the West. Consistent with the bill text and preceding negotiations, we strongly believe that the limited funding available through Proposition 4 must be equitably shared between the Authority and the Conservancy to enable complementary efforts. Without adequate resources, the progress made toward environmental and public health improvements in the region would be at risk, perpetuating inequities that disproportionately burden the most vulnerable populations in the Coachella Valley. Our communities deserve a robust, coordinated effort to address the complex challenges posed by the Salton Sea. We urge you to prioritize a balanced funding approach for both the Salton Sea Authority and the Salton Sea Conservancy. Thank you for your attention to this critical matter. The City of Palm Desert stands ready to support this effort in any way possible, and we look forward to working together to strengthen the health and resilience of our communities. Sincerely, Jan C. Harnik Mayor, City of Palm Desert 94 PROPOSED ALLOCATION OF PROPOSITION 4 SALTON SEA FUNDING Public Resources Code Section 91033(b): (b) Of the funds made available by subdivision (a), ten million dollars ($10,000,000) shall be available for either of the following: (1) The creation of the Salton Sea Conservancy. (2) The Salton Sea Authority. ENTITY Salton Sea Authority INTENDED USES OF FUNDING Given the delineation of roles and tasks, and the value that the Authority delivers to a variety of ongoing, essential projects and programs to benefit environmental restoration and economic revitalization in and around the Sea, the following reflects an equitable distribution of the Proposition 4 allocation pursuant to Section 91033(b) between the Authority and the Conservancy over the next 2-3 year time period: $5 M allocation to Salton Sea Authority: • $2M for use in supplementing funding for the North Lake Pilot Demonstration Project and Desert Shores Channel Restoration Project (Total $2M allocation) • $3M for the Authority's ongoing work relative to the federal feasibility study, air monitoring task force, support of the Salton Sea Conservancy, and implementation of Conservancy activities Multi-benefit uses of funding by the Salton Sea Authority, include: (1) Facilitating the Federal Feasibility Study: Outreach, education, and engagement relating to the Imperial Streams Salton Sea and Tributaries Feasibility Study by the U.S. Army Corps of Engineers to pave the way for long-term restoration at the Salton Sea through: • Identification of innovative projects to restore conditions at the Sea • Opening pathways for ongoing federal funding contributions for projects to improve environmental conditions and economic revitalization at the Sea 1 95 Ongoing engagement by the Authority will include working with the study team and subject matter experts in the fields of hydrology, biology, agriculture, and water and land use policy -by bringing outreach and communications to the efforts through the unique and deeply-ingrained relationships that the Authority has established in and around the Salton Sea over the last four decades -to develop a hydrologic and hydraulic model of the Sea. Importantly, the Authority plays a key role in facilitating potential federal engagement and implementation of early-action, no-regrets targeted restoration opportunities that could be implemented on an accelerated schedule, in advance of the longer-term, comprehensive federal feasibility study. (2) Supplemental funding for the North Lake Pilot Demonstration Project* ( originally initiated under Proposition 68): This funding will continue efforts to construct an approximately 156-acre lake at the North end of the Salton Sea to create shallow and deep-water habitats for fish and birds. The Authority's relationships and outreach abilities within Riverside County help uniquely position the Authority to bring partnerships together to restore and manage the habitat for fish and wildlife, control dust for public health protection, and provide recreational opportunities to facilitate economic revitalization. (3) Desert Shores Channel Restoration Project: This funding will support habitat restoration and dust suppression by refilling the five southernmost boat channels in the Desert Shores Marina. The Authority has actively created and engaged in partnership development between local, state, and federal agencies for active restoration work and infusion of funding to move this project forward. ( 4) Advancing the concept of a Salton Sea Air Monitoring Task Force: A significant portion of the Salton Sea's emissions -particularly dust, hydrogen sulfide, and other airborne toxins -remains insufficiently monitored. The Salton Sea Authority is committed to protecting public health by deepening its understanding of these risks and fostering transparency across all monitoring efforts. To advance this mission, the Authority will form a multi-sector task force that will unify current activities, identify critical gaps, and establish a durable, science-based framework for accountability. (5) Leveraging opportunities for improved economic development and revitalization. This funding will further the Authority's ongoing engagement and activities around the planning, analyzing, and implementing of focused opportunities to support and promote economic activities that could be useful in 2 96 funding Conservancy actions related to environmental protection and restoration of the Sea. The Authority's engagement and involvement in partnerships to facilitate expanded North Lake recreation , tourism, and natural resources activities (lithium) would be valuable in providing economic investment opportunitie s to further advance the goals and objectives in and around the Salton Sea. (6) Supporting the Salton Sea Conservancy: The Salton Sea Authority is the local government entity in the region that serves as partner with the State to fully implement activities related to Salton Sea restoration and economic revitalization. Given the Conservancy's role to operate and maintain completed Salton Sea Management Plan projects and own land associated with the SSMP, there is considerable support and technical assistance that the Authority can provide relative to standing-up the Conservancy over its initial phases, continuing to engage regional, state, and federal partners to facilitate the Conservancy's early-stage efforts , and facilitate ongoing engagement with partners throughout the region to ensure that all of the environmental restoration and economic revitalization interests are well represented. (7) Implementing Conservancy Activities: The Authority is well-positioned to be an implementer of Conservancy activities given its long and successful history of facilitating communication and partnerships throughout the Salton Sea region and its ability to be nimble in undertaking specific tasks, activities, programs, and projects. As the soon-to-be second largest state conservancy, the Salton Sea Conservancy will play a critical role in catalyzing conversations in and around the Sea, but the Authority can provide seamless real-time , on-the-ground facilitation of project and program implementation as a result of its historical engagements and its reputation as an agile entity that can get projects done. INTENDED USES OF FUNDING Salton Sea Conservancy $5 M in start-up costs for the initial steps toward creation of the Conservancy. Most recent state conservancy created is the Delta Conservancy in 2009 -start-up costs were in the range of $1.3 million . Given cost-of-living adjustments and escalation, it is conceivable that start-up costs for a new conservancy in 2025 would be in the range of $3-4 million *Based on timing and adequacy of nee d -other potenti al uses as determined by the Authori ty Board co uld include co mmuni ty stakeholder pl anning effo11s, including propo sed local tra il systems and other co mmunity ameniti es, fo r exampl e **T hese funds may be creditabl e to the loca l sponsor 's 50 % matc hing commi tment under the Imperi al Steams Sa lto n Sea and Tri bu ta ries Feasibi lity Stud y 3 97 98 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Monique M. Lomeli, Senior Deputy Clerk SUBJECT: ACCEPTANCE OF A RESIGNATION FROM THE EL PASEO PARKING AND BUSINESS IMPROVEMENT DISTRICT BOARD RECOMMENDATION: With regret, accept the resignation of Alexander Longmuir from the El Paseo Parking and Business Improvement District Board effective September 4, 2025. BACKGROUND/ANALYSIS: On March 9, 2023, Alexander Longmuir was appointed to the El Paseo Parking and Business Improvement District Board for a term ending June 30, 2026. On September 4, 2025, Mr. Longmuir notified the City of his resignation effective immediately. FINANCIAL IMPACT: There is no fiscal impact associated with the acceptance of this resignation. 99 100 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Chris Escobedo, City Manager SUBJECT: AMENDMENT NO. 6 TO CONTRACT NO. C28880 W ITH BEST BEST & KRIEGER LLP FOR CITY ATTORNEY SERVICES RECOMMENDATION: 1. Approve Amendment No. 6 to Contract No. C28880 with Best Best & Krieger LLP for City Attorney Services, extending the agreement and adjusting compensation. 2. Authorize the Mayor to execute the agreement. BACKGROUND/ANALYSIS: In November 1973, the City Council adopted Resolution No. 73 -03, appointing David Erwin, Esq., as City Attorney. In 1986, Mr. Erwin joined the law firm of Best Best & Krieger (BB&K) and continued to serve as City Attorney. In 2009, the City issued a Request for Proposals for City Attorney Services and selected Best Best & Krieger, with Mr. Erwin, for a five-year term ending in August 2014 (Contract No. C28880).  Amendment No. 1 (2014): Extended the agreement through August 31, 2019.  Amendment No. 2 (2019): Extended the agreement through August 31, 2024.  Amendment No. 3 (2023): Upon the retirement of Robert Hargreaves, appointed Isra Shah, Esq., as City Attorney.  Amendment No. 4 (2024): Extended the agreement through August 31, 2025.  Amendment No. 5 (2025): Extended the agreement through December 31, 2025. The proposed Amendment No. 6 makes two substantive changes to the City Attorney contract: 1. Compensation Adjustment: Effective July 1, 2026, the monthly compensation will increase by $5,000 per month in addition to the standard CPI adjustment. 2. Conversion to a Rolling Term: Unlike prior amendments, which established a fixed end date for the contract, Amendment No. 6 modifies Section 13 of the 2009 Agreement so that the agreement now continues indefinitely unless terminated by either party under the 30-day termination provision. Together, these modifications provide continuity in legal representation while aligning compensation with the terms of the original agreement, which permits increases beyond the CPI adjustment for good cause. All other terms of the agreement remain unchanged. 101 City of Palm Desert Amendment No. 6 to Contract C28880 for City Attorney Services Page 2 of 2 Legal Review: The proposed Amendment No. 6 to Contract No. C28880 was reviewed by outside counsel, Liebert Cassidy Whitmore (LCW). LCW found no legal issues with the amendment and confirmed that it is consistent with the City’s existing agreement with Best Best & Krieger LLP. FINANCIAL IMPACT: There is no immediate fiscal impact in the current fiscal year. Effective July 1, 2026, following the annual CPI adjustment, the City Attorney’s monthly retainer will increase by an additional $5,000, over and above the CPI adjustment . The increase will be incorporated into the Fiscal Year 2026–27 annual budget request. Future year budgets will include the annual CPI adjustment. ATTACHMENTS: 1. Amendment No. 6 to Contract No. C28880 2. Executed Contract No. C28880 102 72500.00001\44186307.1 Contract No. C28880 AMENDMENT NO. 6 TO AGREEMENT FOR CITY ATTORNEY SERVICES CONTRACT NO. C28880 1. Parties and Date. This Amendment No. 6 is made and entered into on this 25th day of September, 2025, by and between the CITY OF PALM DESERT (“City”) and BEST BEST & KRIEGER LLP (BB&K), a Limited Liability Company. 2. Recitals. 2.1. The City has retained Best Best & Krieger LLP (BB&K) to perform legal services as City Attorney since 1988. 2.2. Effective August 27, 2009, the City and BB&K entered into an agreement for City Attorney services through August 31, 2014 (Contract No. C28880, the "2009 Agreement"). 2.3. On August 28, 2014, the City extended the 2009 Agreement for an additional five years, through August 31, 2019 (Amendment No. 1, Contract No. C28881). 2.4. On August 14, 2015, following the passing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to serve as City Attorney. 2.5. On March 28, 2019, the City extended the 2009 Agreement for an additional five years, through August 31, 2024 (Amendment No. 2, Contract No. C28882). 2.6. On December 14, 2023, upon the retirement of Robert Hargreaves, the City Council appointed Isra Shah to serve as City Attorney (Amendment No. 3, Contract No. C28883). 2.7. On September 12, 2024, the City extended the 2009 Agreement for an additional one year, through August 31, 2025 (Amendment No. 4, Contract No. C28884). 2.8. On August 28, 2025, the City extended the 2009 Agreement for an additional four months, through December 31, 2025 (Amendment No. 5, Contract No. C28885). 3. Terms. 3.1. Consistent with the Compensation terms set forth in Section 5 of the 2009 Agreement, the City Council finds good cause for increasing the Monthly Compensation above the amount of the annual CPI adjustment. Therefore, effective July 1, 2026, the Monthly Compensation shall increase over and above the annual CPI adjustment in the amount of $5,000 per month. 3.2. Section 13 of the 2009 Agreement is amended to provide that the Agreement shall continue in full force and effect, subject to the Parties’ termination rights provided in that section. 3.3. Continuing Effect of Agreement. Except as amended by this Amendment No. 6, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the parties under this Amendment No. 6. From and after the date of this Amendment 103 72500.00001\44186307.1 Contract No. C28880 No. 6, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 6. IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 6 to the Agreement for City Attorney Services, Contract No. C28880, as of the day and year first above written. CITY OF PALM DESERT BEST BEST & KRIEGER, LLP, a Limited Liability Company 104 Contract No. C28884 Page 1 of 2 Revised 08-2023 BBK 72500.00001\32445060.1 AMENDMENT NO. 4 TO AGREEMENT FOR CITY ATTORNEY SERVICES CONTRACT NO. C28884 1. Parties and Date. This Amendment No. 4 is made and entered into as of this 12th day of September 2024, by and between the CITY OF PALM DESERT (“City”) and BEST BEST & KRIEGER LLP (BB&K), a Limited Liability Company. 2. Recitals. 2.1 City has retained BB&K to perform legal services as City Attorney since 1988. 2.2 Effective August 27, 2009, City and BB&K entered into the 2009 Agreement to perform those services until August 31, 2014. (C28880) 2.3 On August 28, 2014, City extended the 2009 Agreement (via letter) for an additional five years, until August 31, 2019. (Amendment No. 1, C28881) 2.5 On August 14, 2015, with the passing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to that position. 2.6 On March 28, 2019, City extended the 2009 Agreement for an additional five years, until August 31, 2024. (Amendment No. 2, C28882) 2.7 On December 14, 2024, upon the retirement of Robert Hargreaves, the City Council appointed Isra Shah to that position. (Amendment No. 3, C28883) 2.8 On September 12, 2024, City extended the 2009 Agreement for an additional one year, until August 31, 2025. (Amendment No. 4, C28884) 3. Terms. 3.1 Section 13 of the 2009 Agreement is amended to provide that the Agreement will continue until August 31, 2025, subject to the City’s termination rights provided in that section. 3.2 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, whenever the term “Agreement” or “Contract” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. 4. Docusign Envelope ID: B8C44516-76AE-412B-817D-B753731A066E 105 Contract No. C28884 Page 2 of 2 Revised 08-2023 BBK 72500.00001\32445060.1 IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 4 to the Agreement for City Attorney Services, Contract No. C28880, as of the day and year first above written. CITY OF PALM DESERT By: Karina Quintanilla Mayor Attest: By: Anthony J. Mejia City Clerk BEST BEST & KRIEGER, a Limited Liability Company By: Isra Shah Partner City Clerk QC: _____ Contracts QC: _____ Insurance: Initial Review Final Approval Docusign Envelope ID: B8C44516-76AE-412B-817D-B753731A066E 106 Contract No. C28883 Page 1 of 2 Revised 08-2023 BBK 72500.00001\32445060.1 AMENDMENT NO. 3 TO AGREEMENT FOR CITY ATTORNEY SERVICES CONTRACT NO. C28880 1. Parties and Date. This Amendment No. 3 is made and entered into as of this 14th day of December 2023, by and between the CITY OF PALM DESERT (“City”) and BEST BEST & KRIEGER LLP (BB&K), a Limited Liability Company. 2. Recitals. 2.1 City has retained BB&K to perform legal services as City Attorney since 1988. 2.2 Effective August 27, 2009, City and BB&K entered into the 2009 Agreement to perform those services until August 31, 2014. (C28880) 2.3 On August 28, 2014, City extended the 2009 Agreement (via letter) for an additional five years, until August 31, 2019. (Amendment No. 1, C28881) 2.5 On August 14, 2015, with the passing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to that position. 2.6 On March 28, 2019, City extended the 2009 Agreement for an additional five years, until August 31, 2024. (Amendment No. 2, C28882) 3. Terms. 3.1 The 2009 Agreement (C28880) is amended throughout to reflect that Isra Shah is the designated City Attorney. 3.2 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. DocuSign Envelope ID: 01B36532-0F8B-4C5A-B773-238D4C972E0A 107 Contract No. C28883 Page 2 of 2 Revised 08-2023 BBK 72500.00001\32445060.1 IN WITNESS WHEREOF, the Parties have entered into this Amendment No. 3 to the Agreement for City Attorney Services, Contract No. C28880, as of the day and year first above written. CITY OF PALM DESERT By: Karina Quintanilla Mayor Attest: By: Anthony J. Mejia City Clerk BEST BEST & KRIEGER, a Limited Liability Company By: Its: Printed Name: QC: MN Insurance: Initial Review Final Approval DocuSign Envelope ID: 01B36532-0F8B-4C5A-B773-238D4C972E0A Isra Shah Partner 108 EXTENSION AND AMENDMENT OF AGREEMENT FOR CITY ATTORNEY SERVICES CONTRACT NO. C28882 This Extension and Amendment of Agreement for City Attorney Service dated August 27, 2009, ("2009 Agreement") is made effective March 28, 2019, by and between the CITY OF PALM DESERT ("CITY"), a California municipal corporation and charter city, and BEST BEST &KRIEGER LLP ("BB&K"), a California limited liability partnership. RECITALS l.CITY has retained BB&K to perform legal services as City Attorney since 1988. 2.Effective August 27, 2009, CITY and BB&K entered into the 2009 Agreement to perform those service until August 31, 2014. 3.On August 28, 2014 CITY extended the 2009 Agreement for an additional five years, until August 31, 2019. 4.On November 14, 2015, with the passing of City Attorney David Erwin, the City Council appointed Robert Hargreaves to that position. 5.On March 28, 2019, CITY extended the 2009 Agreement an additional five years, until August 31, 2024. EXTENSION AND AMENDMENT NOW, THEREFORE, CITY AND BB&K agree as follows: 1. The 2009 Agreement is amended throughout to reflect that Robert Hargreaves is the designated City Attorney. 2.Section 13 of the 2009 Agreement is amended to provide that the Agreement will continue until August 31, 2024, subject to the CITY's termination rights provided in that section. 3.All other provisions of the 2009 Agreement shall remain the same. BB&K: CITY: e er LP City of Palm Desert By:ust obert W. Ha gre ves, P ner Susan Marie Weber, Mayor By: Lauri Aylaian, City Manager Attest: By: R he e D. Klassen, ity Clerk 72500.00001\31940328.I DRAFT 4/1/19 Amendment No. 2 to C28880 109 l ES i o FeEn Wna Nv lleivr: i7i-5 I AI.M I)liSlilt't", .ALIfO12N1A <22 0-2g S TEL: 760 34.6—O IIi i inFuC'rcityofpalmdcsert.urg I):'C131 f` ,; ; . September 5, 2014 David J. Erwin, Esq. Best, Best & Krieger, LLP 74-760 Highway 111, Suite 200 Indian Wells, California 92210 Dear Dave: Subject: Contract No. C28881 - Extension of Contract for Citv Attornev Services With the Firm of Best. Best, & Krieqer LLP At its regular meeting of August 28, 2014, the Palm Desert City Council, by Minute Motion, extended the City Attorney Contract with Best, Best, & Krieger LLP, for five (5) years under the same terms and conditions as the existing (Contract No. C28880). Enclosed for your records is a copy of the staff report with City Council Action stamp affixed thereto. If you have any questions or require additional information, please do not hesitate to contact us. Sincerely, RACHELLE D. KLASSEN, MMC CITY CLERK RDK:mgs Enclosure (as noted) cc/enc: John M. Wohlmuth, City Manager Finance Department F$r PPIN'FDONAkiv(lEOPAYfP Amendment No. 1 to C28880 110 CITY OF PALM DESERT CITY MANAGER'S OFFICE STAFF REPORT REQUEST: ClTY ATTORNEY CONTRACT EXTENSION SUBMITTED BY: John M. Wohlmuth, City Manager DATE: August 28, 2014 CONTENTS: Letter from David J. Erwin dated July 8, 2014 Contract No. C28880 from Best, Best and Krieger LLC Letter from Best, Best and Krieger dated June 20, 2014 Recommendation Extend the City Attorney contract with Best, Best and Krieger LLP for five years under the same terms and conditions as the existing contract. Backqround In 2009, the City of Palm Desert released a Request for Proposal for City Attomey Services. The City received nine proposals and interviewed the three top firms with a committee comprised of: 1. Mr. Bob Spiegel, Mayor 2. Mr. Jim Ferguson, Councilmember 3. Mr. John M. Wohlmuth, City Manager 4. Judge Rob Taylor; and 5. Mr. Larry Parrish, retired Riverside County CEO The three firms that were interviewed by the Selection Committee were: 1. Best, Best and Krieger 2. Richard Watson and Gershon 3. Aleshire and Wynder The committee chose Best, Best and Krieger as the top proposal and interview. During the month of July 2009, a contract was negotiated culminating in a five-year contract awarded by the City Council on August 27, 2009. The contract terminates on August 27, 2014. 111 Staff Report City Attorney Contract E ension Page 2 August 28, 2014 Please find attached a letter from Dave Erwin dated July 8, 2014 requesting a five-year e ension. If approved by Council the contract would consist of the same terms and conditions as the August 27, 2009 contract. The only modifications to the contract is the retainer amount and Special Services billing rate. The contract allows for Cost of Living Adjustments once per year. Best, Best and Krieger voluntarily waved two COLA's in 2011 and 2012; therefore, the price in the original contract reflects an increase equal to two out of four COLA adjustments. Other than the two 2% COLA adjustments the price, terms and conditions are all the same as the 2009 contract. Submitted By/Approval: Reviewed: hn M. Wohlmuth, City Manager Paul S. Gibson, Director of Finance i CITY COITivCIL CTION AI'I'ROVED DENiF.D RCCEIVED OTH;R MF,ET GDATE AYk:S: '"n r C Q n i" NUES: ABSENT: ABSTAIN: - VERIFIED I3Y: m S Original on File with City CI k's Off ice 112 Contract No. C28881 I•11Irvine Sacramento 949)263-2600 916)325-4000 Los Angeles BEST BEST &KRIEGER San Diego 213) 617-8100 A T T O R N E Y S A T L A W 619)525-1300 Ontario Walnut Creek sos) ses-s5ea Post Office Box 13650, Palm Desert,CA 92255-3650 925) 977- 3300 Riverside 74-760 Highway 111,Suite 200, Indian Wells,CA 92210 wash ngton,DC se sss-aso Phone: (760j 568-2611 Fax: (760j 340-6698 www.bbklaw.com 202 7s5-osoo David J.Erwin 760)837-1607 david.erwin@bbklaw.com July 8, 2014 John Wohlmuth City Manager City of Palm Desert 73-510 i'red Waring Drive Palm Desert, CA 92260 Re: City Attorney Contract Dear John: I he Contract with Best Best & Krieger currently has an expiration date of August 27, 2014. The provisions for a five (5) year Contract were placed in the Contract for the Council to revicw and determine whether to send out a request for proposals. I would specifically request that the Contract be extended for an additional five (5) year period. It is my considered opinion that we at QB&K have provided an excellent service to the City for many years and wish to continuc to do so into the f'uture. As a matter of information, the Contract allows the City to terminate the Contract on 30 days' notice without a reason stated. Your aftirmative action to assist in the extension is appreciated and hopefully the Council will agrec. Sinc e , G- avid J 'rw n of BES7' BF,ST & KRIEGFR LI.,P llJE:alr 72500.00001\9081 0-I 113 AGREEMENT F O R CTTY ATTORNEY SERVICES C NTRACT NQ. c2ssso This Agreement is made as of the??tt'day of August, 2d09, by and between, on the one hand, the CI"I'Y OF PALM DESERT ("CITY"), a California municipal corporation anci charter city, acting on behalf of itself, and BES7 BES"1'& KRIF..GF R LT.P("BB&K"),a limited liability partnership engaged in the practice of law. CITY and BB&K AGREE AS FOI,LOWS: l R:CITAI,S A. CITY has heretofore retaincd BB&K to perfonn legal services as City Attorney. 3. CITY and BB&K desire and intend that BB&K shall continue to providc CITY legal services as city Attorney on the terms set forth hereinafter. 2. SCOPE OF SERVICES BB&K shall serve as City Attorney and shall perform the Services to include, by way of example, preparation for and attendance at all regular, special and study session meetings of the City Council, the Planning Commission including study sessions, Executive Management meetings, and other boards, commissions, and committees established by CITY, unless otherwise directed by CITY; preparation or review and monitor of all CITY ordinances, resolutions, agrcements, deeds, agenda reports, daily police (SIR} reports, and other legal documents requested by CITY; provision to all officials, officers, and staff of CITY of legal advice and opinions concerning all matters affecting CITY, as directed by .the City Council, City Manager, and City staff. 3 . BB&K PERSONNEL David J. Erwin ("Erwin") shall be the individual designated as City Attorncy and shall bc responsible for thc performancc of services by BB&K under this Agrccment and the supervision of any and all other BBBcK professional and support personnel who provide services to CI"1'Y. Page 1 of 5 RMBUSIDER W C?V 309238.1 114 ontract No. C28880 No change in this designation shall bc made without the prior consent of CI'Y. CITY and BB&K understand that Erwin may, on occasion, be temporarily unavailable to respond to requests by CITY for specific lega] assistance. Thus, BB&K may from time to time assign ather attorncys and may use paralegals to assist in the provision of City Attorney scrvices pursuant to this Agreement; provided, however, that prior to use of any attorney other than Erwin, BB&K shall seek and, wherever rcasonably possibie, obtain the prior approval of C1TY regarding any attorney who may be asked to pravide assistance to CI'TY. Altorneys and paralegals who receive such approval from CITY shall hereinafter be referred to as "Approved Personne{". 4. OFFICE H4URS AND AVAILABII,ITY OF BR&K PERSONNEL Erwin shall attend and conduct office hours one half work day (four hours) twice every week at Yalm Desert City Hall on Monday morning and Wednesday morning. In addition, if and when requested by CI'TY, Erwin shall attend and conduct additional office hours at Palm Desert City Ha11 on any additional day or days of any week, as needed in thc determination of CITY. On any and all days when Erwin is not present at Palm Desert City Hall, Crwin and/or other Approved Personncl of BB&K shall remain available at all times to provide City Attorncy legal services to CITY from BA&K offices. 5. C MPENSATION In consideration for the performance of the Services by BB&K, CITY shall pay BB&K a flat-rate, all-inclusive sum of($18,SQ0.00 per month) ("Monthly Compensation"), which shall be payment of fees for the Relainer Services. BB&K LLP shall be reimbursed for reasonable and necessary expenses incurred, subject to approval of City Manager including but not limiteci to, printing, copying, long distance phone and fax charges, court fees, computer research expenses, extraordinary mail or delivery costs and actual fees and cxpenses for subconsultants retained by BA&K I1[,P. CITY and aB&K agree that the Monthly Compensation shall automatically increase effective for the Services provided by BII&K on and after July 1 of each calendar year (commencing July 1, 2010) in an amount equal to the inerease in the cost of living for the most recently published twelve (12) month period as shown by the U.S. Department of Labor in its All Urban Consumers lndex set forth in the I.os Angeles-Anahcim-Riverside area up to a maximum of five percent (5%). Page 2 of 5 RMAl;S1nERW IM309238.1 115 Co*`Tact No. C28880 Ivotwithstanding any provision herein to the contrary, BB&K may request on or before March 31 of each year an increase in the Monthly Compensation over and above the CYI adjustment upon a showing of good cause for such increase; provided that the approval or disapproval of'any such request shall be made by CITY in its sole and absolute discretion. 6. USE OF SPECiAIa COUNSEL CI1'Y and BB&K recognize and agrec that Special Services will be required by CITY from time to time. CITY in its sole and absolute discretion shall setect any and all special legal counsel to provide such Special Services. C]TY and AB&K understand and intend that such special legal counsel shall not be attorneys from BB&K unless approved separately by the City Council or City Manager. BB&K shall at the reyuest of CITY, be available to supervise and coordinate the provision of Special Services by special legal counsel. 7. SPECIAL SERVICES 3B8iK through approved personnel shall provide special services for Code Enforcement, Mobile Home Rcnt Control, I,itigation, Administrative Hearing, environmental challenges, endangered species, labor and employment matters, and other items specifically approved by the City Council or City Manager. Bond counsel matters are based upon Section 11 hereof. For any and all such legal services, the fees shall bc billed by BB&K and payable by Palm Desert as follows: $255.00 per hour for attorney partners, $245.00 per hour for Of Counsel attorneys, $230.00 per hour for attorney associates and $150.00 per hour for paralegals and law clerks. Billing shall be in tenth's of an hour far each billing person. Such hourly fees shall be subject to increase effective 3uty l of each calendar year(commencing 3uly 1, 201 U) in the manner set fi rth in Section 5 hereof. The costs associated with such service, including without limitation, telephone expense, document reproduction expense, mileage expense, computer research, Court and Administrative filing fees, messenger service fees, fees for expert appraisers and other consultants( subject to prior approval of City of Palm Desert) and the like, shall be billed by BB&K and payable by Paim Descrt monthly. Page 3 of 5 kMBUS:R W lN(}9238.l 116 Cor ract No. C2880 8. BILI.ING BB&K shall submit to CI1'Y monthly an invoice in the amount of thc Monthly Compensation, covering the preceding calendar month. "Fhe invoice shall contain a written description of all legal matters for which BB&K performed legal services during the precediilg calendar month. CITY shall make every reasonable effort to pay BB&K for each monthly invoice within twenty-one (21) ealendar days following receipt of each im oice. Ifi the Services provided by BB&K during the first or last calendar month of the term of this Agreement (as set forth in Section 10 hereafter) do not cover an entire calendar month, then the Monthly Compensation due and owing to BB&K shall be prorated for that month and shall be calculated by multiplying the Month(y Compensation by a fraction wherein the numerator is the number or c ays during which BBBcK provided the services in the calendar month and the denominator is the number thirty (30). 9. STA:1llARD AND TIMELINLSS OF SERVICES BB&K shall adherc to all reasonable and lawful standards and procedures established by CI1'Y for the provision of the Services by }3B&K under this Agreement and for the fulfillment by BB&K of its duties as the City Attorney. BB&K shall work cooperatively at all times with the City Council and the City Manager and shall keep them informed on all matters of imporiance. BB&K shall perform the Services expeditiously and in a timely manner in order to meet the necds and requiremcnts of CI"I'Y. 10. 1NSURANCE COVERAGE BB&K currently maintains errors and omissions insurance with I,loyd's of London. Afier a standard deductibility amount, this insurance provides coverage which exceeds the amount required by the State of Caiif'ornia. 11. All Bond counsel and general financial counsel ]egal services would be rendered to CITY at BB&K standard public finance rates set forth in Exhibit "A" attached hereto. Appropriate adjustments may be made to the rates on file as recommendcd f'rom time to time by underwriters and/or financiai advisors to the CI'I'Y. Page A of 5 RMB L`SiDER W ITv130923 8.1 117 C ~ract No. C28880 12. Ail legal services provided to CITY for which CITY receives reimbursement or requires deposit in advance from dcveloper or third party and for litigation paid by developer with CITY represented by 13B&K such as review of CC&R's, establishment of Community Facilities District, Assessment llistricts, Landscaping and l,ights Districts and the like, land use and/or environmental projects shall be billed at BB&K's then current standard private rate minus ten percent (10%). 13. TERMS Oli AGREEMENT The provision of the Services under this Agreement shall commence on September 1, 2009 and continue for a period of five years until August 31, 2U14. BB&K understands and agrees that BB&K serves at the wiil and pleasure of CITY, CITY retains BB&K to provide the Services under this Agreement, and BIi&K shall continue to provide the Services under this Agreement until such time as either CITY or I3R&K provides thirty{30)days written notice to the other of termination of this Agreement, either with or without cause. In the event of termination of this Af;reement, CIT'Y shall pay BB&K for all of the Services rendered by IIBBcK through and including the effective date of termination. IN WITNESS WHEREOF, CITY and BB&K have executed this Agreement as of'the date first set forth hereinabove. CITY OF PALM DESERT 6 By: Mayor A'I'TES"I': City Clerk BEST BES' KRIEGER LT.P C..._ i By: David: Erwin, Aartner Pagc 5 of 5 RMRI;S1nER1'[M3U9238.1 118 Co• " Tact No. C28i880 EXHIBIT "A" TQ LEGAL SERVICES AGREEMENT SCHEDULE OF BOND COUNSEL FEES) 1. Certificates of Participation and Revenue Bonds. For services in connection with the issuance and sale of certificates of participation and revenue bonds, BB&K shall be paid a fee which will be the greater of(i) $30,U00 or (ii) an amount based on thc total principal amount of the certificates of participation or bonds to be sold, computed as follows: 50%of the first$10 million of the amount of the ceriificates or bonds issued,plus 25%of the next$10 million of the amount thereaf, plus 125%of the amount thereof, if any, over 20 million. 2. Communitv Pacilities Districts. For services in connection with the issuance and sale of bonds of community facilities districts, BB&K shall be paid its hourly rates for conducting the formation proceedings of the Community Facilities District, and negotiation of funding agreements and other agreements relating to the CPD, payable from the landowner's initial deposit. Additionally, upon issuance of bonds, BB&K will charge a fee which witl be the greater of{i) $30,000 or (ii) an amount based on the total principal amount of the bonds lo be sold, computed as follows: SO%of the first$10 million of thc amount of the bonds issued,plus 25%of the next$10 million of the amount thereot; plus 125%of the amount thereot; if any,over 20 million. 3. Assessment Districts. For services in connection with the issuance and sale of bonds of assessment districts, BB&K shall be paid its hourly rates for conducting the formation proceedings of the Community Facilities llistrict, and negotiation of funding agreemcnts and other agreements relating to the assessment district, payable from the landowner's initial deposit. Additionally, upon issuance of bonds, BB&K will charge a fee which will be the greater of(i) $25,000 or(ii) an amount based on the total principal amount af the bonds to be sold, computed as follows: 54%of the first$10 million of the A-1 119 Contr t No. C28880 amount of the bonds issued, plus 25%of the next$l0 million of the amount thercof,pius 125%of the amount thereof,if any,over 16 million. 4. Tax Aliocation Bonds. For services in connection with the issuance and sale of tax allocation bonc3s. BB&K shall be paid a fee which will be the greater of{i) $30,000, or (ii) an amount based on the total principal amaunt of thc bonds to be sold, computed as follows: 54%of the first 10 million of the amount of bonds issued,plus 25%of the next$10 million of the amount of bonds issued,plus 20%of the next$10 million of the amount of bonds issued,plus 15%of the next$10 million of the amount of bonds issued,plus 125%of the amount thereof, if any,over 40 million. 5. Gencral Obligation Bonds and Tax and Revenue Anticipation Notes. For services in connection with the issuance and sale of general obligation bonds and tax and revenue anticipation notes of the City, BB&K shall be paid a fee which shall be determined basecl on the time expended by the attorneys and attorney assistants who perform services in connection with the issuance and sale of such bonds or notes at the following hourly rates: Attarneys (including partners and associates): $350; Paralegals and Clerks: $110. 6. Conduit Borrowin s. For services in connection with the issuance of bonds for and on behalf of conduit borrowers to finance industrial development facilities, multifamily housing projects and other projects qualifying for tax-exempt financing, BB& K shall be paid a fee which will be $30,OOU for any bond issuance of$3,000, 000 or less. Because bond counsel fees for condnit bonds are paid by the conduit borrower, we would expc:ct to negotiate the fee for any transaction over$3,000,000 with the conduit borrower, subject to approval by the City. A-2 120 Page 1 of 1 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Erica Powell, Management Analyst SUBJECT: CONSIDER RELOCATION OF LILY PAD BENCH BY MICHAEL TODD RECOMMENDATION: Approve the relocation of Lily Pad Bench by Michael Todd from its current location, at the corner of El Paseo and Sage Lane, to the Civic Center Park. BACKGROUND/ANALYSIS: In 2004, the City solicited artist-designed benches for El Paseo. From 168 submissions, the Lily Pad Bench by Michael Todd was selected and installed in 2005 at El Paseo and Sage Lane. Made of five circular aluminum “lily pad” forms, the bench functions as both seating and public art. Its current location has become less suitable due to changing commercial activity – currently in front of Shake Shack. On April 6, 2025, the City received a report of a pedestrian injury involving the bench, raising concerns that it reduces sidewalk space in an area where outdoor dining now narrows the walkway. On May 14, 2025, the Cultural Arts Committee reviewed the matter and with a 6-0 vote, recommended relocating the bench to Civic Center Park. City Staff has prepared coordination with the Public Works Department to remove the Lily Pad Bench from its current location and repair the sidewalk, transport, and install at Civic Center Park. FINANCIAL IMPACT: The artwork was purchased in 2004 for $10,000. Relocation costs, including removal, transport, reinstallation, and new signage, are estimated not to exceed $2,500. Funds are available in the approved FY 2025-26 Financial Plan in Public Art Account No. 4364650-4337200. The PW team will allocate approximately 4-8 hours of staff time to this project. T here is no other direct impact to the General Fund with this action. ATTACHMENTS: 1. Photographs of Lily Pad Bench and map of proposed location 2. Cultural Arts Committee Staff Report dated May 14, 2025 3. Deaccession Worksheet 4. Public Art Deaccession Policy 121 122 Lily Pad (bench) by Michael Todd Current Location: El Paseo at Sage Lane, in front of Shake Shack, 73-199 El Paseo A 123 Proposed Location: Civic Center Park, near east lake, under tree 124 Page 1 of 2 CULTURAL ARTS COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: May 14, 2025 PREPARED BY: Erica Powell, Management Analyst SUBJECT: REQUEST FOR DIRECTION TO RELOCATE OR DEACCESSION OF LILY PAD BENCH BY MICHAEL TODD RECOMMENDATION: Provide direction to staff on the relocation or deaccession of Lily Pad Bench by Michael Todd. BACKGROUND/ANALYSIS: In 2004, as part of an initiative to replace standard concrete benches along El Paseo with artist - designed alternatives, the City issued a Request for Qualifications (RFQ) seeking public art bench designs. The call received 168 responses, of which 20 were selected for potential use. Ultimately, the Art in Public Places Commission (AIPP) sponsored the fabrication and installation of one bench: Lily Pad Bench by artist Michael Todd. The piece was formally approved on May 19, 2004, purchased for $10,000, and i nstalled on February 10, 2005. The sculpture has remained in its original location at the corner of El Paseo and Sage Lane, directly in front of what is now Shake Shack . Constructed of a 1-inch-thick aluminum plate, the work features five circular “lily pa d” forms, each 24 inches in diameter. On April 6, 2025, City Code Enforcement received a complaint from a visitor who reported walking into the bench and sustaining a minor injury while navigating the sidewalk in the evening. The complainant noted that the pedestrian path had become more constrained due to the restaurant’s current outdoor seating configuration, making the bench more of an obstruction to foot traffic. Given the bench’s age, condition, and evolving pedestrian use patterns along El Paseo, it may be appropriate to consider removing Lily Pad Bench from its current location. As such, Staff recommends relocating the artwork to the City’s new Community Park, where it would remain publicly accessible and integrated into a safer, more spacious environ ment. Staff is also open to other suggestions from Committee members, provided the new location is in the public right -of- way and not on private property. Should the Committee determine that relocation is not feasible or appropriate, staff is also open to discussing deaccession of the piece in accordance with the City’s Public Art Deaccessioning Policy. FINANCIAL IMPACT: The bench was originally purchased for $10,000 in 2004. A current appraisal or fair market value has not been established. Estimated costs associated with removal, transportation, and reinstallation—including site preparation and new signage—are not expected to exceed $2,500. 123125 Cultural Arts Committee City of Palm Desert (Request for Direction to Relocate or Deaccession of Lily Pad Bench by Michael Todd) Page 2 of 2 ATTACHMENTS: 1. Deaccession Policy 2. Deaccession Worksheet 3. Current photographs 124126 City of Palm Desert’s Public Art Deaccessioning Policy DEFINITION Deaccession means the formal process to permanently remove a City-owned public artwork by selling, donating, or destroying it. POLICY A.The purpose of the Public Art Deaccessioning Policy (“Policy”) is to maintain a deaccession program that results in high-quality, City-owned public artwork; eliminate artworks that are unsafe, not repairable, or no longer meet the needs of the City, and respect the creative rights of artists. B.Although the City of Palm Desert would like each public artwork to remain in situ for a minimum of 15 years (although 15 years is not a limit on the life of an artwork), it recognizes that public artwork is not necessarily going to remain in place in perpetuity. C.Any proposal for removal, destruction, or relocation of an artwork shall be submitted to the Cultural Arts Committee by City staff and reviewed according to the policies and procedures contained herein and shall be deliberate and independent of political pressures, fluctuations in artistic taste, popularity, and public opinion. D.At regular intervals, the City’s public artwork collection shall be evaluated by the Cultural Arts Committee to determine the condition of each artwork and determine whether any artwork should be deaccessioned. APPLICABLE ARTWORK This Policy applies to all City-owned artwork acquired through the Public Art program or through donation. In the case of donated artwork, all legal documents surrounding the donation must be reviewed and a legal opinion rendered by the City Attorney before proceeding with the deaccessioning process. CRITERIA FOR DEACCESSIONING One or more of the following criteria must apply prior to an artwork being deaccessed: 1.Damage Beyond Repair - The artwork has been damaged and repair is unfeasible or repair costs would exceed the value of the artwork. 2.Safety - The artwork is deemed hazardous and a threat to public safety. 3. Deterioration - The artwork has deteriorated to the point that the restoration cost is greater than its monetary value or the artwork has deteriorated beyond the original design and restoration would prove impractical or would render the work essentially false. 4.Security - The condition or security of the artwork cannot be reasonably guaranteed or the City of Palm Desert cannot properly care for or store the artwork. 5.Site Alteration - In the case of site-specific artwork, the artwork has become inappropriate, is no longer accessible to the public, it is unsafe, or it is due to be destroyed and would severely alter its relationship to the site. 125127 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] 6.Excessive Maintenance - The artwork requires excessive or unreasonable maintenance. 7.Loss of Site – The current site is no longer available and no suitable alternate site for the artwork is available. 8.Aesthetic Value - The artwork is of poor quality or is judged to have little aesthetic and/or historical or cultural value. 9.Failure to Comply - If the approved terms of the contract pursuant to which the artwork was installed have not been fulfilled. 10. Inauthentic - The artwork is a forgery or in violation of existing copyright laws. 11.Theft – The artwork has been stolen. Any stolen artwork will be documented through an official police report and a report prepared by the entity that owns or is responsible for the site of loss. SEQUENCE OF ACTION / PROCEDURES 1.Deaccession requests may be submitted by a neighborhood organization, City department, independent City board or commission, or a City Council member. The Cultural Arts Committee will review each preliminary request. City staff will work with the applicant to bring a full proposal to the Cultural Arts Committee. 2.Staff will provide the applicant with a Deaccessioning Form that will serve as the applicant’s formal request for consideration by the Cultural Arts Committee. 3.Staff (with assistance from the property owner, if applicable) will make reasonable effort to notify and consult with any living artist(s) whose work is being considered for deaccession as to the best procedure for artwork removal. The City will allow the artist(s) 30 days to respond. 4.If the artist(s) is/are deceased, the City will make reasonable efforts to contact artist(s) estate. 5.After an attempt to contact the artist(s) is made, staff will consult with the City Attorney on how to proceed with the deaccessioning. 6.Once the request is reviewed by the City Attorney, the applicant will complete and return the Deaccessioning Form. 7.City staff will use the information from the Deaccessioning Form to complete a staff report addressing the proposed removal of the artwork. The staff report will provide all available relevant information and materials to the Cultural Arts Committee, including, but not limited to: a.Artist, Title, and Location of artwork. b.Name of property owner and contact information. c.Property owner at the time of commission or installation. d.Year commissioned/purchased, original cost of artwork, and applicable Art in Public Places (AIPP) fee. e.Dimensions and removal/re-installation instructions. f.Appraisal of the artwork provided by a qualified art appraiser and current condition of artwork. If appropriate, current fair market value of the artwork. g.Detailed reason for deaccessioning/relocating artwork. h.Proposed deaccession method or new location for artwork (relocation, sale, donation, demolition, etc.). 126128 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] i.Maintenance evaluation. j.Any relevant images. 8.The staff report will then be placed on the Cultural Arts Committee agenda at a regularly scheduled public meeting, where it will be reviewed and voted on. 9.If the Cultural Arts Committee approves the deaccession, City staff will bring the staff report before the City Council for review and final action. 10.If deaccession is approved by the City Council, all documents will be updated to reflect the deaccessioning of the artwork. Staff will review property records from the County Recorder’s Office and if an artwork covenant is recorded against the property, the City will cause a release covenant to be filed. 11.The deaccessioning process should be documented in both written and visual form. 12.If an artwork is sold, proceeds should be deposited into the Art in Public Places fund. 13.The City’s Risk Manager must be notified so that the work can be removed from the City’s insurance policy. DEACCESSIONING METHOD OPTIONS 1.If appropriate, reasonable efforts will be made to move the work to a new location within the City. If the artwork was designed for a specific site, City will consider the artist’s intent when deciding where to relocate the artwork. 2.The artist(s) will be given the first option to purchase or exchange the artwork. If the artist(s) decides to purchase the work, they will be responsible for the cost of the removal of the artwork from the current site. If the artist(s) is/are deceased, the legal heir(s) will have first rights of purchase. The artist(s) can purchase the artwork at fair market value according to the appraisals obtained by a qualified appraiser. 3.Put the work in storage until a new, appropriate location can be found. 4.Donate work to a school, an educational or non-profit organization. 5.Dispose of work in an appropriate manner. PROVISIONS FOR EMERGENCY REMOVAL In the event that the structural integrity or condition of an artwork is such that, in the opinion of the Public Art staff, the artwork presents an imminent threat to public safety, the City Manager may authorize its immediate removal without Cultural Arts Committee action or the artist’s consent and have the work placed in temporary storage. The artist and the Cultural Arts Committee will be notified of this action within 30 days. The Committee will then consider options for disposition: repair, reinstallation, maintenance or deaccessioning. If the artwork cannot be removed without being altered, modified, or destroyed, and if the Artist’s Agreement with the City and County has not waived his/her rights under the California Art Preservation Act and the Visual Artists Rights Act, City staff will attempt to gain such written permission before proceeding. In the event that this cannot be accomplished before action is required in order to protect the public health and safety, the City Manager shall proceed with the advice of the City Attorney. 127129 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] COMPLIANCE WITH APPLICABLE POLICIES AND REGULATIONS Deaccession and removal of artwork will be done in a manner that complies with all other applicable city, state, and federal procedures, policies and regulations. For example, deaccession and removal actions must comply with applicable procedures and laws relating to the disposition of city property and with laws protecting artists’ rights. 128130 City of Palm Desert Public Art Deaccessioning/Relocating Worksheet Artist: Michael Todd Title: Lily Pad Bench Location of work: Sage/El Paseo (south west corner) Name of property: _City right-of-way Contact name: Erica Powell Phone: 760-776-6346 Email: epowell@palmdesert.gov Property owner at the time of commission: City of Palm Desert Year commissioned/purchased: 2004, CC approved 6/10/2004, installed 2/10/2005__ Purchase Price / Art in Public Places fee / Value at time of install: $10,000____ Dimensions: Height: Width: Depth: Weight: 1 inch thick aluminum plate with 24” diameter circles Estimated current fair market value: unknown Source of estimation: n/a Proposed deaccession reviewed by City Attorney: Yes: No: Detailed reason for deaccessioning artwork: Bench is located in front of new restaurant, Shake Shack. The pedestrian path has become more constrained, making the bench more of an obstruction to foot traffic. The City received a complaint from a visitor who reported walking into the bench and sustaining a minor injury. Proposed deaccessioning method: Staff recommends relocating to the future north palm desert park and integrating into a shaded, environment. New location for work (if it is being moved): North Palm Desert Community Park. Condition: Excellent XX Good Fair Poor Maintenance evaluation and instructions: Minimal maintenance due to the materials. This piece will be part of the Public Art maintenance schedule. 129131 130132 Lil y Pad (bench) by Michael Todd Location: El Paseo at Sage Lane, in front of Shake Shack 131133 132134 City of Palm Desert Public Art Deaccessioning/Relocating Worksheet Artist: Michael Todd Title: Lily Pad Bench Location of work: Sage/El Paseo (south west corner), 73-199 El Paseo A Name of property: _City right-of-way Contact name: Erica Powell Phone: 760-776-6346 Email: epowell@palmdesert.gov Property owner at the time of commission: City of Palm Desert Year commissioned/purchased: 2004, CC approved 6/10/2004, installed 2/10/2005__ Purchase Price / Art in Public Places fee / Value at time of install: $10,000____ Dimensions: Height: Width: Depth: Weight: 1 inch thick aluminum plate with 24” diameter circles Estimated current fair market value: unknown Source of estimation: n/a Proposed deaccession reviewed by City Attorney: Yes: No: Detailed reason for deaccessioning artwork: Bench is located in front of new restaurant, Shake Shack, 73-199 El Paseo A. The pedestrian path has become more constrained, making the bench more of an obstruction to foot traffic. The City received a complaint from a visitor who reported walking into the bench and sustaining a minor injury. Proposed deaccessioning method: Staff recommends relocating to a palm desert park and integrating into a shaded, environment. New location for work (if it is being moved): Civic Center Park. Condition: Excellent XX Good Fair Poor Maintenance evaluation and instructions: Minimal maintenance due to the materials. This piece will be part of the Public Art maintenance schedule. 135 136 City of Palm Desert’s Public Art Deaccessioning Policy DEFINITION Deaccession means the formal process to permanently remove a City-owned public artwork by selling, donating, or destroying it. POLICY A.The purpose of the Public Art Deaccessioning Policy (“Policy”) is to maintain a deaccession program that results in high-quality, City-owned public artwork; eliminate artworks that are unsafe, not repairable, or no longer meet the needs of the City, and respect the creative rights of artists. B.Although the City of Palm Desert would like each public artwork to remain in situ for a minimum of 15 years (although 15 years is not a limit on the life of an artwork), it recognizes that public artwork is not necessarily going to remain in place in perpetuity. C.Any proposal for removal, destruction, or relocation of an artwork shall be submitted to the Cultural Arts Committee by City staff and reviewed according to the policies and procedures contained herein and shall be deliberate and independent of political pressures, fluctuations in artistic taste, popularity, and public opinion. D.At regular intervals, the City’s public artwork collection shall be evaluated by the Cultural Arts Committee to determine the condition of each artwork and determine whether any artwork should be deaccessioned. APPLICABLE ARTWORK This Policy applies to all City-owned artwork acquired through the Public Art program or through donation. In the case of donated artwork, all legal documents surrounding the donation must be reviewed and a legal opinion rendered by the City Attorney before proceeding with the deaccessioning process. CRITERIA FOR DEACCESSIONING One or more of the following criteria must apply prior to an artwork being deaccessed: 1.Damage Beyond Repair - The artwork has been damaged and repair is unfeasible or repair costs would exceed the value of the artwork. 2.Safety - The artwork is deemed hazardous and a threat to public safety. 3. Deterioration - The artwork has deteriorated to the point that the restoration cost is greater than its monetary value or the artwork has deteriorated beyond the original design and restoration would prove impractical or would render the work essentially false. 4.Security - The condition or security of the artwork cannot be reasonably guaranteed or the City of Palm Desert cannot properly care for or store the artwork. 5.Site Alteration - In the case of site-specific artwork, the artwork has become inappropriate, is no longer accessible to the public, it is unsafe, or it is due to be destroyed and would severely alter its relationship to the site. 137 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] 6.Excessive Maintenance - The artwork requires excessive or unreasonable maintenance. 7.Loss of Site – The current site is no longer available and no suitable alternate site for the artwork is available. 8.Aesthetic Value - The artwork is of poor quality or is judged to have little aesthetic and/or historical or cultural value. 9.Failure to Comply - If the approved terms of the contract pursuant to which the artwork was installed have not been fulfilled. 10. Inauthentic - The artwork is a forgery or in violation of existing copyright laws. 11.Theft – The artwork has been stolen. Any stolen artwork will be documented through an official police report and a report prepared by the entity that owns or is responsible for the site of loss. SEQUENCE OF ACTION / PROCEDURES 1.Deaccession requests may be submitted by a neighborhood organization, City department, independent City board or commission, or a City Council member. The Cultural Arts Committee will review each preliminary request. City staff will work with the applicant to bring a full proposal to the Cultural Arts Committee. 2.Staff will provide the applicant with a Deaccessioning Form that will serve as the applicant’s formal request for consideration by the Cultural Arts Committee. 3.Staff (with assistance from the property owner, if applicable) will make reasonable effort to notify and consult with any living artist(s) whose work is being considered for deaccession as to the best procedure for artwork removal. The City will allow the artist(s) 30 days to respond. 4.If the artist(s) is/are deceased, the City will make reasonable efforts to contact artist(s) estate. 5.After an attempt to contact the artist(s) is made, staff will consult with the City Attorney on how to proceed with the deaccessioning. 6.Once the request is reviewed by the City Attorney, the applicant will complete and return the Deaccessioning Form. 7.City staff will use the information from the Deaccessioning Form to complete a staff report addressing the proposed removal of the artwork. The staff report will provide all available relevant information and materials to the Cultural Arts Committee, including, but not limited to: a.Artist, Title, and Location of artwork. b.Name of property owner and contact information. c.Property owner at the time of commission or installation. d.Year commissioned/purchased, original cost of artwork, and applicable Art in Public Places (AIPP) fee. e.Dimensions and removal/re-installation instructions. f.Appraisal of the artwork provided by a qualified art appraiser and current condition of artwork. If appropriate, current fair market value of the artwork. g.Detailed reason for deaccessioning/relocating artwork. h.Proposed deaccession method or new location for artwork (relocation, sale, donation, demolition, etc.). 138 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] i.Maintenance evaluation. j.Any relevant images. 8.The staff report will then be placed on the Cultural Arts Committee agenda at a regularly scheduled public meeting, where it will be reviewed and voted on. 9.If the Cultural Arts Committee approves the deaccession, City staff will bring the staff report before the City Council for review and final action. 10.If deaccession is approved by the City Council, all documents will be updated to reflect the deaccessioning of the artwork. Staff will review property records from the County Recorder’s Office and if an artwork covenant is recorded against the property, the City will cause a release covenant to be filed. 11.The deaccessioning process should be documented in both written and visual form. 12.If an artwork is sold, proceeds should be deposited into the Art in Public Places fund. 13.The City’s Risk Manager must be notified so that the work can be removed from the City’s insurance policy. DEACCESSIONING METHOD OPTIONS 1.If appropriate, reasonable efforts will be made to move the work to a new location within the City. If the artwork was designed for a specific site, City will consider the artist’s intent when deciding where to relocate the artwork. 2.The artist(s) will be given the first option to purchase or exchange the artwork. If the artist(s) decides to purchase the work, they will be responsible for the cost of the removal of the artwork from the current site. If the artist(s) is/are deceased, the legal heir(s) will have first rights of purchase. The artist(s) can purchase the artwork at fair market value according to the appraisals obtained by a qualified appraiser. 3.Put the work in storage until a new, appropriate location can be found. 4.Donate work to a school, an educational or non-profit organization. 5.Dispose of work in an appropriate manner. PROVISIONS FOR EMERGENCY REMOVAL In the event that the structural integrity or condition of an artwork is such that, in the opinion of the Public Art staff, the artwork presents an imminent threat to public safety, the City Manager may authorize its immediate removal without Cultural Arts Committee action or the artist’s consent and have the work placed in temporary storage. The artist and the Cultural Arts Committee will be notified of this action within 30 days. The Committee will then consider options for disposition: repair, reinstallation, maintenance or deaccessioning. If the artwork cannot be removed without being altered, modified, or destroyed, and if the Artist’s Agreement with the City and County has not waived his/her rights under the California Art Preservation Act and the Visual Artists Rights Act, City staff will attempt to gain such written permission before proceeding. In the event that this cannot be accomplished before action is required in order to protect the public health and safety, the City Manager shall proceed with the advice of the City Attorney. 139 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] COMPLIANCE WITH APPLICABLE POLICIES AND REGULATIONS Deaccession and removal of artwork will be done in a manner that complies with all other applicable city, state, and federal procedures, policies and regulations. For example, deaccession and removal actions must comply with applicable procedures and laws relating to the disposition of city property and with laws protecting artists’ rights. 140 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Erica Powell, Management Analyst SUBJECT: APPROVE DEACCESSION OF EL PASEO ENTRY SIGNS BY WATER STUDIO RECOMMENDATION: Approve the deaccession of two El Paseo entry signs by Water Studio. BACKGROUND/ANALYSIS: In 2003, the City of Palm Desert commissioned Orr Studio (now Water Studio) to design two entry signs for the El Paseo corridor. The signs were installed at the east entrance at Portola Avenue and the west entrance at Highway 74 as part of the City’s Art in Public Places Program. Each sign, constructed of copper with bronze patina and an integrated water feature, experienced ongoing deterioration due to the interaction of metal and water, resulting in frequent and costly repairs. On November 20, 2023, the east entry sign at Portola Avenue was irreparably damaged in a vehicle collision and subsequently removed. The west entry sign at Highway 74 remained in place while replacement options were considered but continued to deteriorate and was removed by Public Works on May 29, 2025, for safety reasons. On June 11, 2025, the Cultural Arts Committee voted 5-0 to recommend full deaccession of both signs. The artist has been notified and will retrieve the artwork by October 2025. On September 11, 2025, the City Council awarded a Professional Services Agreem ent to Selbert Perkins Design, Inc., to work with Public Works on developing designs to replace the two monument signs along the El Paseo Parkway. Once a concept is prepared, Public Works will present the proposed designs to the City Council for review and feedback. Staff recommends City Council approve the complete deaccession of the two El Paseo entry signs by Water Studio. FINANCIAL IMPACT: The original cost of the artwork was $50,000 in 2004. There is no current appraisal or fair market value available. There is no fiscal impact to the General Fund associated with this action. ATTACHMENTS: 1. Entry Sign Photographs 2. Cultural Arts Committee meeting report dated June 11, 2025 141 City of Palm Desert Deaccession of El Paseo Entry Signs Page 2 of 2 3. Deaccession Worksheet 4. City’s Public Art Deaccessioning Policy 142 El Paseo Entry Sign Photographs El Paseo entry sign east entrance at Portola Avenue Damage in November 2023 143 El Paseo entry sign west entrance at Highway 74 Deterioration of sign 144 Page 1 of 2 CULTURAL ARTS COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: June 11, 2025 PREPARED BY: Erica Powell, Management Analyst SUBJECT: RECOMMEND THE CITY COUNCIL APPROVE DEACCESSION OF TWO EL PASEO ENTRY SIGNS BY WATER STUDIO RECOMMENDATION: Recommend the City Council approve deaccession of two El Paseo entry signs by Water Studio. BACKGROUND/ANALYSIS: In September 2003, Palm Desert’s Art in Public Places Commission commissioned two entry signs for the El Paseo business district. Designed by Orr Studio (now operating as Water Studio), the signs were installed in the following locations: 1.El Paseo at CA-74 (West Entry) 2.El Paseo at Portola (East Entry) Constructed of ridged copper with bronzed patina, each sign measured approximately 4 feet 6 inches wide by 6 feet tall and featured an integrated water element designed to operate year- round. Over time, the combination of water and metal led to repeated deterioration of the fountain components, requiring ongoing and costly maintenance. On November 20, 2023, the entry sign located at El Paseo and Portola Avenue was struck by a vehicle and sustained irreparable damage, necessitating its immediate removal. At its meeting on January 17, 2024, the Cultural Arts Committee recommended that the City Council approve the deaccession of both entry signs. However, the Committee advised that the sign at CA-74 remain in place until a replacement design was identified. Due to continued structural deterioration, the remaining sign was removed by the City’s Public Works Department on May 29, 2025. The artist has been notified and is scheduled to retrieve the removed sign in late June 2025. The Public Works Department will lead the planning, design, and installation of new entry signage for the El Paseo business district as part of their wayfinding sign project. Staff recommends approval of the complete deaccession of the two El Paseo entry signs by Water Studio. FINANCIAL IMPACT: The cost of the artwork was $50,000 in January 2004. Staff has no record of current fair market value. ATTACHMENTS: 145 Cultural Arts Committee City of Palm Desert (Deaccession of Two El Paseo Entry Signs by Water Studio) Page 2 of 2 1.Deaccession Worksheet 2.Entry sign photographs 146 City of Palm Desert Public Art Deaccessioning/Relocating Worksheet Artist: WATER STUDIO Contact: Bridget Hormer 310-581-2221 or bridget@wstudio.com Title: EL PASEO ENTRY SIGNS/FOUNTAINS Location of work: EL PASEO/HWY 74 AND EL PASEO/PORTOLA AVE Name of property: EL PASEO MEDIAN Contact name: ERICA POWELL, PUBLIC ART MANAGEMENT ANALYST Phone: 760-776-6346 Email: epowell@palmdesert.gov Property owner at the time of commission: CITY OF PALM DESERT Year commissioned/purchased: 2004 Purchase Price / Art in Public Places fee / Value at time of install: $50,000 ($25,000/EA) Dimensions: Height:6’ Width: 4’ Estimated current fair market value: not available Source of estimation: dna Proposed deaccession reviewed by City Attorney: Yes: X No: Detailed reason for deaccessioning artwork: Entry sign located at the Portola/El Paseo entrance was struck by a car in November 2023 and damaged beyond repair. The sign located at the HWY74/El Paseo entrance is still in place. Fountains/pump in disrepair. Due to the excessive maintenance issues with the water features, and multiple pump replacements, the fountain has been shut of permanently. Staff recommends keeping the sign in place until a new sign is scheduled for installation. Proposed deaccessioning and removal method: The City of Palm Desert would like to offer the entry sign back to the Water Studio, provided they agree to deinstall it at a mutually agreed-upon time before the installation of the new sign. Docusign Envelope ID: D6515F21-6E62-4C2D-B3C2-E67E4BC4237B 147 City of Palm Desert Public Art Deaccessioning/Relocating Worksheet Condition: Excellent Good ___ Fair X Poor Maintenance evaluation and instructions: THE FOUNTAIN HAVE REQUIRED CONSTANT MAINTENANCE AND REPAIR WORK. CITY OF PALM DESERT By: Martin Alvarez Director of Economic Development Artist Representative By: Bridget Hormer Docusign Envelope ID: D6515F21-6E62-4C2D-B3C2-E67E4BC4237B 148 City of Palm Desert’s Public Art Deaccessioning Policy DEFINITION Deaccession means the formal process to permanently remove a City-owned public artwork by selling, donating, or destroying it. POLICY A.The purpose of the Public Art Deaccessioning Policy (“Policy”) is to maintain a deaccession program that results in high-quality, City-owned public artwork; eliminate artworks that are unsafe, not repairable, or no longer meet the needs of the City, and respect the creative rights of artists. B.Although the City of Palm Desert would like each public artwork to remain in situ for a minimum of 15 years (although 15 years is not a limit on the life of an artwork), it recognizes that public artwork is not necessarily going to remain in place in perpetuity. C.Any proposal for removal, destruction, or relocation of an artwork shall be submitted to the Cultural Arts Committee by City staff and reviewed according to the policies and procedures contained herein and shall be deliberate and independent of political pressures, fluctuations in artistic taste, popularity, and public opinion. D.At regular intervals, the City’s public artwork collection shall be evaluated by the Cultural Arts Committee to determine the condition of each artwork and determine whether any artwork should be deaccessioned. APPLICABLE ARTWORK This Policy applies to all City-owned artwork acquired through the Public Art program or through donation. In the case of donated artwork, all legal documents surrounding the donation must be reviewed and a legal opinion rendered by the City Attorney before proceeding with the deaccessioning process. CRITERIA FOR DEACCESSIONING One or more of the following criteria must apply prior to an artwork being deaccessed: 1.Damage Beyond Repair - The artwork has been damaged and repair is unfeasible or repair costs would exceed the value of the artwork. 2.Safety - The artwork is deemed hazardous and a threat to public safety. 3. Deterioration - The artwork has deteriorated to the point that the restoration cost is greater than its monetary value or the artwork has deteriorated beyond the original design and restoration would prove impractical or would render the work essentially false. 4.Security - The condition or security of the artwork cannot be reasonably guaranteed or the City of Palm Desert cannot properly care for or store the artwork. 5.Site Alteration - In the case of site-specific artwork, the artwork has become inappropriate, is no longer accessible to the public, it is unsafe, or it is due to be destroyed and would severely alter its relationship to the site. 149 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] 6.Excessive Maintenance - The artwork requires excessive or unreasonable maintenance. 7.Loss of Site – The current site is no longer available and no suitable alternate site for the artwork is available. 8.Aesthetic Value - The artwork is of poor quality or is judged to have little aesthetic and/or historical or cultural value. 9.Failure to Comply - If the approved terms of the contract pursuant to which the artwork was installed have not been fulfilled. 10. Inauthentic - The artwork is a forgery or in violation of existing copyright laws. 11.Theft – The artwork has been stolen. Any stolen artwork will be documented through an official police report and a report prepared by the entity that owns or is responsible for the site of loss. SEQUENCE OF ACTION / PROCEDURES 1.Deaccession requests may be submitted by a neighborhood organization, City department, independent City board or commission, or a City Council member. The Cultural Arts Committee will review each preliminary request. City staff will work with the applicant to bring a full proposal to the Cultural Arts Committee. 2.Staff will provide the applicant with a Deaccessioning Form that will serve as the applicant’s formal request for consideration by the Cultural Arts Committee. 3.Staff (with assistance from the property owner, if applicable) will make reasonable effort to notify and consult with any living artist(s) whose work is being considered for deaccession as to the best procedure for artwork removal. The City will allow the artist(s) 30 days to respond. 4.If the artist(s) is/are deceased, the City will make reasonable efforts to contact artist(s) estate. 5.After an attempt to contact the artist(s) is made, staff will consult with the City Attorney on how to proceed with the deaccessioning. 6.Once the request is reviewed by the City Attorney, the applicant will complete and return the Deaccessioning Form. 7.City staff will use the information from the Deaccessioning Form to complete a staff report addressing the proposed removal of the artwork. The staff report will provide all available relevant information and materials to the Cultural Arts Committee, including, but not limited to: a.Artist, Title, and Location of artwork. b.Name of property owner and contact information. c.Property owner at the time of commission or installation. d.Year commissioned/purchased, original cost of artwork, and applicable Art in Public Places (AIPP) fee. e.Dimensions and removal/re-installation instructions. f.Appraisal of the artwork provided by a qualified art appraiser and current condition of artwork. If appropriate, current fair market value of the artwork. g.Detailed reason for deaccessioning/relocating artwork. h.Proposed deaccession method or new location for artwork (relocation, sale, donation, demolition, etc.). 150 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] i.Maintenance evaluation. j.Any relevant images. 8.The staff report will then be placed on the Cultural Arts Committee agenda at a regularly scheduled public meeting, where it will be reviewed and voted on. 9.If the Cultural Arts Committee approves the deaccession, City staff will bring the staff report before the City Council for review and final action. 10.If deaccession is approved by the City Council, all documents will be updated to reflect the deaccessioning of the artwork. Staff will review property records from the County Recorder’s Office and if an artwork covenant is recorded against the property, the City will cause a release covenant to be filed. 11.The deaccessioning process should be documented in both written and visual form. 12.If an artwork is sold, proceeds should be deposited into the Art in Public Places fund. 13.The City’s Risk Manager must be notified so that the work can be removed from the City’s insurance policy. DEACCESSIONING METHOD OPTIONS 1.If appropriate, reasonable efforts will be made to move the work to a new location within the City. If the artwork was designed for a specific site, City will consider the artist’s intent when deciding where to relocate the artwork. 2.The artist(s) will be given the first option to purchase or exchange the artwork. If the artist(s) decides to purchase the work, they will be responsible for the cost of the removal of the artwork from the current site. If the artist(s) is/are deceased, the legal heir(s) will have first rights of purchase. The artist(s) can purchase the artwork at fair market value according to the appraisals obtained by a qualified appraiser. 3.Put the work in storage until a new, appropriate location can be found. 4.Donate work to a school, an educational or non-profit organization. 5.Dispose of work in an appropriate manner. PROVISIONS FOR EMERGENCY REMOVAL In the event that the structural integrity or condition of an artwork is such that, in the opinion of the Public Art staff, the artwork presents an imminent threat to public safety, the City Manager may authorize its immediate removal without Cultural Arts Committee action or the artist’s consent and have the work placed in temporary storage. The artist and the Cultural Arts Committee will be notified of this action within 30 days. The Committee will then consider options for disposition: repair, reinstallation, maintenance or deaccessioning. If the artwork cannot be removed without being altered, modified, or destroyed, and if the Artist’s Agreement with the City and County has not waived his/her rights under the California Art Preservation Act and the Visual Artists Rights Act, City staff will attempt to gain such written permission before proceeding. In the event that this cannot be accomplished before action is required in order to protect the public health and safety, the City Manager shall proceed with the advice of the City Attorney. 151 City of Palm Desert’s Public Art Deaccessioning Policy 07/13/2023 [Type here] COMPLIANCE WITH APPLICABLE POLICIES AND REGULATIONS Deaccession and removal of artwork will be done in a manner that complies with all other applicable city, state, and federal procedures, policies and regulations. For example, deaccession and removal actions must comply with applicable procedures and laws relating to the disposition of city property and with laws protecting artists’ rights. 152 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Erica Powell, Management Analyst SUBJECT: CONSIDERATION TO PURCHASE RISING INVERSION SCULPTURE BY CRISTOPHER CICHOCKI RECOMMENDATION: 1. Approve agreement with artist Cristopher Cichocki in the amount of $150,000 for the purchase of Rising Inversion to be installed at Ironwood Park. 2. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 3. Authorize the City Manager to execute contract and all documents necessary to execute the project. BACKGROUND/ANALYSIS: Ironwood Park, located at 47800 Chia Drive, is a tranquil desert setting with no existing public art. Acquiring the piece as part of the City’s Public Art Program, the proposed placement of Rising Inversion will offer residents, visitors, and park users an opportunity to engage with large - scale contemporary art in a serene and contemplative outdoor space. Staff routinely surveys sites throughout the City for potential public art opportunities, and Ironwood Park was identified as a suitable location due to its undisturbed desert setting, accessible pathways, and the opportunity for the sculpture’s phosphorescent glow to be experienced safely by residents and visitors during dusk hours. An additional benefit of this location is that it currently does not have any public art. The 12-foot-tall and 40-foot-long sculpture weighs approximately 3,000 pounds. It features a spherical form tapering from five feet deep at the center to one foot at the edges. Its phosphorescent surface absorbs daylight and emits a soft, low-lumen glow at dusk, creating an immersive public art experience without impacting nearby residents. In addition to its artistic merit and interactive quality, Rising Inversion holds special significance as the work of Cristopher Cichocki, a Palm Desert native whose i nternationally recognized career in contemporary art reflects the City’s ongoing commitment to nurturing and celebrating local talent. He also has works in permanent collections including the Getty Museum and Palm Springs Art Museum. The artist will handle site preparation, transportation, and all other related expenses to install the sculpture on-site. Costs for this are included in the purchase price. Rising Inversion Sculpture Cost Breakdown Amount 153 City of Palm Desert Consideration to Purchase Rising Inversion Sculpture by Cristopher Cichocki Page 2 of 2 Rising Inversion was originally commissioned by the Laguna Art Museum for its 11th Annual Art + Nature program. Fabrication was fully funded by the Museum, and the purchase price reflects this prior investment. On July 9, 2025, the Cultural Arts Committee unanimously recommended, by 6-0 vote, the purchase of the Rising Inversion sculpture by Cristopher Cichocki to be installed at Ironwood Park. This item was also presented at the Parks and Recreation Committee at its regular meeting on August 5, 2025, where the Committee expressed support. This project advances the Cultural Arts Committee’s goals while maintaining the FY 2025–26 Work Plan priorities: 1. San Pablo Roundabout, Phase 2: Request for Qualifications 2. Public Art Programming Subcommittee 3. Utility Cabinet Beautification Review and Refresh Staff therefore recommends approval of the purchase. FINANCIAL IMPACT: The total cost for the acquisition and installation of Rising Inversion is $150,000. Funds for this purpose are included in the approved FY 2025-26 Financial Plan and Capital Improvement Program (CIP) in Public Art Capital Projects Account No. 4364650-4400100. Therefore, there is no impact on the General Fund with this action. ATTACHMENTS: 1. Draft Artist Agreement 2. Agreement Exhibit A- Scaled Drawings and Images 3. Cultural Arts Committee July 9, 2025, Staff Report with attachments: • Presentation of Rising Inversion by Cristopher Cichocki • Cristopher Cichocki Biography • LA Times article • Palm Springs Life article • Proposed Location at Ironwood Park Total $ 150,000 154 Contract No. _______________ 1 CITY OF PALM DESERT ARTIST AGREEMENT This Artist Agreement (“Agreement”) is entered into on September 25, 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 Cristopher Cichocki, a Sole Proprietor, with its principal place of business at 800 S Vella Road, Unit A, Palm Springs, CA 92264 (“Artist”). City and Artist are sometimes individually referred to herein as “Party” and collectively as “Parties.” On September 25, 2025, City Council approved the award of this Agreement to the Artist above. RECITALS A. Pursuant to Chapter 4.10 of the Palm Desert Municipal Code, the City is implementation an art in public places program and imposing the related development fees; pursuant to City Council Ordinance 900 and 936 establishing the organization, objectives, and responsibilities of the Palm Desert Cultural Arts Committee (“the “Committee”); and pursuant to the City’s “Art in Public Places” guidelines; and B. The Artist is a recognized professional artist, and the City acknowledges sufficient familiarity with the style and quality of the Artist’s work; and C. The City desires for the Artist to create an original work of art entitled RISING INVERSION (“Artwork”) for placement at Ironwood Park, 47800 Chia Drive, Palm Desert (“Site”). The Artist’s design (“Proposal”), which is attached hereto as Exhibit “A” has been reviewed and approved by the City and is hereby incorporated and made a part of this Agreement. NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, it is mutually agreed between the P arties as follows: AGREEMENT SECTION 1. Scope of Services. 1.1 Artists’ Obligations. (a) Artist is hereby retained to perform all services and furnish all supplies, materials, outside expertise and equipment necessary for the completion of the Artwork in accordance with the “Description of Artwork” which is attached hereto and incorporated herein as Exhibit “A”, “Scope of Work,” which is attached hereto and incorporated herein as Exhibit “B”, and “Payment Schedule” which is attached hereto and incorporated herewith Exhibit “D”. The Artwork shall be completed and installed in a professional manner and in strict compliance with all the terms and conditions in this Agreement. 155 Contract No. _______________ 2 (b) Artist shall be responsible for complying with all federal, state, and local laws, ordinances, statutes and regulations and for obtaining all required licenses, permits, or other similar authorizations applicable to the performance of Artist’s responsibilities under this Agreement. (c) The Artist shall determine the artistic expression, design, dimensions and materials of the Artwork, subject to review and acceptance by the City as set forth in this Agreement. To ensure that the Artwork, as installed, shall not interfere with the intended use of the Site or pedestrian and other traffic flow at the Site, the Artist’s proposal shall be reviewed and approved by the City and other a pplicable City Staff such as the Public Work’s Department, City Engineer, and Traffic Department. (d) The Artist shall arrange the transportation and installation of the Artwork in consultation with the City. If the Artist does not install the artwork themselves, the Artist shall supervise and approve the installation. (e) The Artist shall provide required insurances in the amounts and limits specified in Section 13. (f) To the extent applicable, the Artist shall provide a list of all subcontractors along with a copy of the agreement between the Artist and each subcontractor. (g) The Artist shall provide a maintenance manual with a description of all materials and products utilized in the Artwork and the required care and upkeep involved. (h) The Artist shall be available upon reasonable advance notice for all meetings, site visits, and Artwork dedication ceremonies as required by the City. 1.2 City’s Obligations (a) The City shall be responsible for providing the Artist, at no expense to the Artist, copies of existing designs, drawings, reports, list of required permits, and other existing relevant data, if any, which is needed by the Artist in order to perform. (b) The City shall be responsible for compliance with all applicable laws and regulations, including but not limited to zoning or environmental regulations, and shall explain any limitations imposed by such laws and/or regulations to the Artist. (c) The Artist shall prepare the Site in accordance with the specifications detailed in the approved design concept in “Exhibit B” of this Agreement. The Artist shall be responsible for all expenses relating to preparing the Site for the timely transportation and installation of the Artwork. The Artist shall complete the Site preparations according to schedule in “Exhibit B” or shall contact the City in writing informing of any delays. (d) The City shall provide and install a plaque on or near the Artwork containing a credit to the Artist and date of installation. 156 Contract No. _______________ 3 (e) The City shall not permit any use of the Artist's name or misuse of the Artwork which would reflect discredit on the Artist's reputation as an artist or which would violate the spirit of the Artwork, should such use or misu se be within the City's control. (f) The City shall be responsible for leading the Artist through the required review process. The City shall be responsible for organizing and scheduling review meetings with the Cultural Arts Committee and for providing the Artist written instructions for the materials required at such meetings. 1.3 [RESERVED] 1.4 [RESERVED] 1.5 Budget, Payment Schedule, Construction Schedule and Progress Reports (a) Budget (i) The City shall pay the Artist One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00), as described in Exhibit “C”, which will constitute full compensation and payment for all work to be performed under this Agreement. No extra charges of any kind will be allowed unless specifically agreed to in writing by the City’s authorized representative. The total price shall include all federal, state, and local sales, use, excise, privilege, payroll, occupational, and other taxe s applicable to the Artwork furnished to the City hereunder. (b) Schedule (i) The Artist shall notify the City of the tentative schedule for the installation of the Artwork, including a schedule for the submission of progress reports and inspections if any. The Schedule may be amended by written agreement. 1.6 Installation Phase (a) Upon the City's final approval of the fabricated Artwork, as being in conformity with the Design, the City will issue a Notice to Proceed with the installation of the Artwork. The Artist shall deliver the completed Artwork to the Site in accordance with the schedule provided for in “Exhibit B”. Transportation fees shall be paid by the Artist. (b) Artist must immediately notify City in writing any time delivery is behind schedule or may not be completed on schedule. Prior to delivery of the Artwork, the Artist shall notify the City in writing when the Artwork is ready for delivery to the Site. (c) The Artist is responsible for preparation of the Site and installation of the Artwork as required by the Artist's plans and specification for the installation of the Artwork. 157 Contract No. _______________ 4 (d) The Artist will coordinate closely with the City to ascertain that the Site is prepared to receive the Artwork. The Artist must notify the City of any adverse conditions at the Site that would affect or impede the installation of the Artwork. The Artist is responsible for the timely installation of the Artwork. The Artist will confer and coordinate with the City to ensure timely coordination with the Artist’s construction team. (e) Upon written acceptance of the installation, the Artwork shall be deemed to be in the custody of the City for purposes of Section 11 and Section 14 of this Agreement. (f) Upon installation of the Artwork, the Artist shall provide the City with written instructions for the appropriate maintenance and preservation of the Artwork along with product data sheets for any material or finish used. The Artwork must be durable, taking into consideration that the Site is an unsecured public space that may be exposed to elements such as weather. The Artist must ensure that all maintenance requirements will be reasonable in terms of time and expense. The City is responsible for the proper care and maintenance of the Artwork. 1.7 Final Acceptance. (a) Artist shall advise City in writing, or via email, when the Artwork has been completed. (b) City shall notify Artist in writing, or via email, of its final acceptance or non-acceptance of the Artwork. (c) Artist shall be responsible for promptly resolving the reasons for non- acceptance of the Artwork indicated by the City. (d) Final acceptance is effective on the date of City’s notification of final acceptance or forty-five (45) calendar days after Artist has sent City written notice of completion, whichever first occurs, unless City, upon receipt of Artist’s notice of completion provides Artist, before forty-five (45) calendar days have elapsed, with written notice specifying and describing any uncompleted services. SECTION 2. Taxes Any state or federal sales, use or excise taxes, or similar charges relating to the services and materials under this Agreement shall be paid by the Artist in a timely fashion. The City shall report payments made to the Artist annually to the Internal Revenue Department in a 1099 statement. SECTION 3. Time of Performance. 3.1 Duration. The services required of Artist as set forth in Section 1 shall be completed in accordance with the Payment Schedule (Exhibit “D”). This Agreement shall be effective on the date that this contract has been signed by both Parties, and, unless terminated earlier pursuant to such provisions in the Agreement, shall extend until final acceptance by the City, or submission of final payment to the Artist by the City under Exhibit "D", whichever is later. 158 Contract No. _______________ 5 3.2 Time Extension. City agrees to grant reasonable extension of time to Artist in the event of delay on City’s part in performing its obligations under this Agreement or if conditions beyond Artist’s control render Artist’s timely performance impossible or unexpectedly burdensome. Failure to fulfill contractual obligations due to conditions beyond either party’s reasonable control will not be considered a breach of agreement, provided that such obligations are suspended only for the duration of such conditions and the party with knowledge of the condition immediately notifies the other party, in writing, of such condition. Extension of time of performance hereunder may be granted upon the request of one Party and the consent of the other thereto, which consent shal l not be unreasonably withheld. Such extension shall be in writing, signed by both Parties, and attached to the schedule under Section 1.5(B)(i) which is attached as Exhibit "B". 3.3 Termination. If either party to this Agreement shall willfully or negligently fail to fulfill in a timely and proper manner or otherwise violate any of the covenants, agreements, or stipulations materials to this Agreement, the other party shall have the right thereupon to terminate this Agreement by giving written notice to the defaulting party of its intent to terminate and, specifically, the grounds for termination. The defaulting party shall have thirty (30) calendar days after receipt of the notice to cure the default. If default is not cured, this Agreement shall terminate as determined by the non-defaulting party. In the event of City’s default, City shall promptly compensate Artist for all services performed by the Artist prior to termination, in accordance with the payment schedule described in Section 2. In the event of Artist’s default, all products prepared and submitted or prepared for submission by Artist under this Agreement shall at City’s option become City’s property; Artist shall not be relieved of liability to City for damages sustained by City by virtue of Artist’s breach of this Agreement. In such event, City may reasonably withhold payments to Artist until the exact amount of damages due to the City from Artist is determined. In addition, the City shall retain the right to have the Artwork completed; however, the Artist shall retain the copyright in the Artwork to the extent it has become fixed in the applicable medium. By Artist allowing for completion of the Artwork by another party in the event of default Artist is agreeing to share copyright in the completed Artwork with the completing party. SECTION 4. Compensation The City shall pay the Artist One Hundred Fifty Thousand and 00/100 Dollars ($150,000.00), as described in Exhibit “C”, which will constitute full compensation and payment for all work to be performed under this Agreement. No extra charges of any kind will be allowed unless specifically agreed to in writing by the City's authorized representative. The total price shall include all federal, state and local sales, use, excise, privilege, payroll, occupational and other taxes applicable to the Artwork furnished to the City hereunder. The Artist shall bear the risk of any material price increases between the date of the Notice to Proceed and the completion of the Project. No additional price increases will be permitted unless agreed to in writing by the City’s authorized representative. 1) Payment 159 Contract No. _______________ 6 a) All requests for payment shall be submitted to the Economic Development Management Analyst, Public Art, in writing for review and approval and must be accompanied with a detailed invoice and other documentation as required by the Economic Development Management Analyst, Public Art, supporting the Work completed. b) Terms of payment are net thirty (30) days, less any applicable retention, after receipt of invoice, or completion of applicable progress milestones. Final payment shall be made by the City after the Artist has satisfied all contractual requirements. Payment of invoices shall not constitute acceptance of the work. c) Payment shall be made in accordance with the following schedule: i) Execution of Agreement (50%) —Seventy Five Thousand and 00/100 Dollars ($75,000.00) ii) Final Acceptance (50%) — Seventy Five Thousand and 00/100 Dollars ($75,000.00) d) Payments otherwise due may be withheld by the City on account of defective work not remedied, liens or other claims filed, reasonable evidence indicating probable filing of liens or other claims, failure of the Artist to make payments properly to its subcontractors or for material or labor, the failure of the Artist to perform any of its other obligations under the Agreement, or to protect the City against any liability arising out of the Artist's failure to pay or discharge taxes or other obligations. If the causes for which payment is withheld are removed, the withheld payments will be made promptly. If the said causes are not removed within a reasonable period after written notice, the City may remove them at the Artist's expense. e) Payment of the Final Acceptance payment will be made by the City upon: i) Submission of an invoice for satisfactory completion of final acceptance and in the amount associated with the Final Acceptance payment; ii) Written acceptance of the Artwork by the City; iii) Delivery of all drawings and specifications, if required by the City; iv) Delivery of executed full releases of any and all liens arising out of this Agreement; and f) Delivery of an affidavit listing all persons who might otherwise be entitled to file, claim, or maintain a lien of any kind or character, and containing an averment that all of the said persons have been paid in full. g) If any person refuses to furnish an actual release, or receipt in full, the Artist may furnish a bond satisfactory to the City to indemnify the City against any claim or lien at no cost to the City. 160 Contract No. _______________ 7 h) Acceptance by the Artist of payment of the Final Acceptance payment will constitute a waiver, release and discharge of any and all claims and demands of any kind or character which the Artist then has, or can subsequently acquire against the City, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement. However, payment for Final Acceptance by the City will not constitute a waiver, release or discharge of any claims or demands which the City then has, or can subsequently acquire, against the Artist, its successors and assigns, for or on account of any matter or thing arising out of, or in any manner connected with, the performance of this Agreement. 2) ARTIST'S REPRESENTATIONS AND WARRANTIES 6.1 Warranties of Title (a) The Artist represents and warrants that: (i) the Artwork is solely the result of artistic effort of the Artist and its representatives. (ii) except as otherwise disclosed in writing to the City, the Artwork is unique and original and does not infringe upon any copyright or the rights of any person. (iii) the Artwork (or duplicate thereof) has not been accepted for sale elsewhere. (iv) the Artist has not sold, assigned, transferred, licensed, granted, encumbered or utilized the Artwork or any element thereof or any copyright related thereto which may affect or impair the rights granted pursuant to this Agreement. (v) the Artwork is free and clear of any liens from any source whatsoever. (vi) all Artwork created or performed by the Artist under this Agreement, whether created by the Artist alone or in collaboration with others, shall be wholly original with the Artist and shall not infringe upon or violate the rights of any third party. (vii) the Artist has the full power to enter into and perform this Agreement and to make the grant of rights contained in this Agreement. (viii) all services performed hereunder shall be performed in accordance with all applicable laws, regulations, ordinances, etc. and with all necessary care, skill, and diligence. (ix) the representations and warranties set forth in paragraph (A) shall survive the termination or other extinction of this Agreement. 161 Contract No. _______________ 8 6.2 Warranties of Quality and Condition (a) The Artist represents and warrants that all work will be performed in accordance with professional "workmanlike" standards and free from defective or inferior materials and workmanship (including any defects consisting of "inherent vice," or qualities that cause or accelerate deterioration of the Artwork) fo r two years after the date of final acceptance by the City under Section 1.8(B). (b) The Artist represents and warrants that the Artwork and the materials used are not currently known to be harmful to public health and safety. (c) The Artist represents and warrants that reasonable maintenance of the Artwork will not require procedures substantially in excess of those described in the maintenance and preservation recommendations submitted by the Artist. (d) If within two years the City observes any breach of warranty described in this Section 6.2 that is curable by the Artist, the Artist shall, at the request of the City, cure the breach promptly, satisfactorily and consistent with professional conservation standards, at no expense to the City. The City shall give notice to the Artist of such breach with reasonable promptness. (e) If after two years the City observes any breach of warranty described in this Section 6.2 that is curable by the Artist, the City shall contact the Artist to make or supervise repairs or restorations at a reasonable fee during the Artist's lifetime. The Artist shall have the right of first refusal to make or supervise repairs or restorations. Should the Artist be unavailable or unwilling to accept reasonable compensation under the industry standard, the City may seek the services of a qualified restorative conservator and maintenance expert. (f) If within two years the City observes a breach of warranty described in this Section 6.2 that is not curable by the Artist, the Artist is responsible for reimbur sing the City for damages, expenses and loss incurred by the City as a result of the breach. However, if the Artist disclosed the risk of this breach in the Proposal and the City accepted that it may occur, it shall not be deemed a breach for purposes of t his Section 6.2 of this Agreement. (g) Acceptable Standard of Display. The Artist represents and warrants that: i. General routine cleaning and repair of the Artwork and any associated working parts and/or equipment will maintain the Artwork within an acceptable standard of public display. ii. Foreseeable exposure to the elements and general wear and tear will cause the Artwork to experience only minor repairable damages and will not cause the Artwork to fall below an acceptable standard of public display. 162 Contract No. _______________ 9 iii. With general routine cleaning and repair, and within the context of foreseeable exposure to the elements and general wear and tear, the Artwork will not experience irreparable conditions that do not fall within an acceptable standard of public display, including mold, rust, fracturing, staining, chipping, tearing, abrading and peeling. iv. Manufacturer's Warranties. To the extent the Artwork incorporates products covered by a manufacturer's warranty, the Artist shall provide copies of such warranties to the City. The foregoing warranties are conditional, and shall be voided by the failure of the City to maintain the Artwork in accordance with the Artist's specifications and the applicable conservation standards. If the City fails to maintain the Artwork in good condition, the Artist, in addition to other rights or remedies the Artist may have in equity or at law, shall have the right to disown the Artwork as the Artist's creation and request that all credits be removed from the Artwork and reproductions thereof until the Artwork's condition is satisfactorily repaired. SECTION 7. Ownership, Rights, and Interest. Artist hereby grants a royalty free license in perpetuity, to the City, its employees and its agents, to make reproductions, photographs and other non-exact reproductions of the Artwork for non-commercial purposes: 1. Description: Spherical formation with a depth ranging from five feet at the center to one foot at the edges. The artwork is fabricated with an inner steel framework. The mass body of the artwork consists of high-density polystyrene coated in 2 layers of smoothed concrete. The concrete surface was primed with industrial strength primer and coated on two sides. Side One – is coated with phosphorescent pigment and Nova Flex Varnish. Sealed with a protective anti-graffiti coating that is UV resistant. Side Two – is coated with high gloss “Aristoshield Black” by Dunn Edwards, a water-based “oil” paint that is industrial-grade. This side will not be sealed with a protective coating. Stock touch up is the easier solution to eliminate any potential graffiti while maintaining an ultra-high gloss finish that the Aristoshield Black provides. The edges of the artwork are finished with rusted and sealed sheet metal. 2. Title: Rising Inversion, Date: dedicated November 2023, Laguna Beach 3. Address/Location: Ironwood Park, 47800 Chia Drive, Palm Desert 7.1 Waiver of Moral Rights. Artist bears the risk of damage to or loss of the Artwork until the City’s final acceptance under Section 1.2 and shall take such measures as necessary to protect the Artwork from damage until final acceptance. Artist acknowledges and agrees that the Artwork is a “work made for hire” as defined in the 163 Contract No. _______________ 10 United States Copyright Act (17 U.S.C. § 101 et seq.) and is owned by City, for all purposes worldwide, in perpetuity, in any and all media, whether now known or hereafter devised. Artist understands that the Artwork is to be installed on the Site such that it becomes an integral, permanent and site-specific part of a building and that the operati on, management, or other circumstances of the Site, could result in significant alteration of the Artwork or Site. For purposes of this Agreement, the term “alter or alteration,” with respect to the Artwork, shall mean: alter, repair, restore, modify, rem ove, relocate, sell, dispose of, distort, destroy, mutilate, or deface. Due to the nature of the Artwork and the public interest of the City, Artist and Artist’s agents, heirs, successors and assigns hereby waive any and all rights and claims they may have against the City, and its employees, and its agents, under the Visual Artists Rights Act of 1990, 17 U.S.C. §§ 106A and 113(d) (“VARA”), the California Art Preservation Act, Cal. Civ. Code, §§ 987, 989 (“CAPA”), and any other local, state, foreign or international law, as currently drafted or as may be hereafter amended, that conveys the same or similar rights (“Moral Rights Laws”), with respect to the Artwork, its display, removal from display, exhibition, installation, conservation, storage, study, alte ration, and any other activities conducted by the City, its officers, employees, agents, contractors, licensees, successors or assigns. Since the Artwork is incorporated into a building at the Site such that it cannot be removed from the building without physical defacement, mutilation, alternation, distortion, destruction, or other modification (collectively, “Modification”), Artist waives any and all such claims under any Moral Rights Laws arising out of or against the City or City’s agents, officers, employees, successors, or assigns for Modification of the Artwork. City has the absolute right to change, modify, destroy, remove, relocate, move, replace, transport, repair or restore the Artwork, in whole or in part, in City’s sole discretion. The City has no obligation to pursue claims against third parties for modifications or damage to the Artwork done without the City’s authorization. However, the City may pursue claims against third parties for modifications or damage or to restore the Artwork if the Artwork has been modified without the City’s authorization. In the event that the City pursues such a claim, it shall notify the Artist, and Artist shall cooperate with the City’s efforts to prosecute such claims. If City causes Modification of the Artwork without the Artist’s consent in a manner that is prejudicial to Artist’s reputation, Artist retains the right to disclaim authorship of the Artwork in accordance with 17 U.S.C. § 106A (a)(2). 7.2 Reproduction Rights. Artist grants to City an irrevocable license and right to duplicate, make, display, and distribute and authorize the making, display, and distribution of reproductions for noncommercial purposes, including but not limited to advertising, brochures, media publicity, educational and promotional mate rials, postcards, booklets, catalogues and other similar publications. To the extent this provision constitutes a transfer of the right to reproduction, this Agreement is intended to be and shall be deemed 164 Contract No. _______________ 11 to constitute the document in writing required by California Civil Code Section 982 (c). Reproductions by City are not required to contain a credit to Artist, nor any form of copyright notice. Artist is not required to give credit to City in any public showing under Artist’s control or in reproductions of the Artwork. 7.3 Copyright. Artist shall retain all rights under Copyright Act of 1976 for original works produced under this Agreement except ownership and possession and as otherwise provided in this Agreement. Artist’s copyright shall not extend to uti litarian aspects of the Artwork such as landscaping, lighting, furnishings or other similar objects. The City and its assigns are not responsible for any third party infringement of Artist’s copyright and for protecting the intellectual property rights of Artist. Any registration of a copyright under the State’s Register of Copyrights shall be the sole responsibility of the Artist, and the costs of such registration shall be borne by the Artist. 7.4 Royalty Rights. Artist agrees that they shall receive no royalties or other remuneration for the use of the Artwork by the City beyond the agreed compensation pursuant to Civil Code Section 986. Any use, reproduction, and dissemination of the Artwork by the City shall not entitle the Artist to any further payments. 7.5 Survival. The obligations under this Section 5 shall survive the termination or expiration of this Agreement. SECTION 8. Insurance and Indemnification. 8.1 Insurance. Artist agrees to carry for the duration of this Agreement and any extensions thereof, at Artist’s expense, insurance in the kinds and amounts as listed in Section 13. The required insurance shall be the primary coverage and cover the Artist and Artist’s employees, agents, contractors, and subcontractors. Proof of such insurance shall be provided to the City prior to undertaking any work under this Agreement and contain a provision that the policy shall not be canceled or reduced in coverage without thirty (30) calendar days written notice to the City. The Artist must provide proof of renewal or replacement for any policy(s) that expire during the term of the Agreement. Failure of Artist to maintain or provide proof of insurance shall be considered a brea ch of this Agreement and the City shall have the right to terminate this Agreement without any financial or contractual obligation and reserves the right to select another artist to complete the Artwork, alternatively the City may purchase the required ins urance and deduct the cost from the monies otherwise due to the Artist. 8.2 Indemnification. Artist agrees to indemnify, protect, defend, and hold harmless the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers (collectively, “Indemnitee”) from and against all liabilities, claims, demands, obligations, losses, damages, judgments, legal actions costs or expenses, including attorneys’ fees, court costs and other litigation costs arising from, in connection with or caused by any act, omission, or negligence by Artist or Artist’s officers employees, agents, subconsultants, suppliers, or any entity or person for whom Artist may be legally liable (regardless of whether or not they are separate legal entities). Artist shal l have no obligation to indemnify City for City’s gross negligence or willful misconduct. Artist, at its sole cost and expense and upon written notice from City, shall defend any and all actions, 165 Contract No. _______________ 12 lawsuits, causes of action, or proceedings caused by any thirty party against City and shall employ counsel acceptable to City in its sole discretion. The Artist accepts that City has the right to participate in such proceeding with counsel of its own choosing at Artist’s expense. Should a claim, action or proceeding related to this Agreement be made or filed against City, the City shall promptly provide written notice of such claim or action to the Artist, allowing Artist the time stipulated by applicable law to respond to such action. The obligations of Artist under this provision shall survive the expiration or earlier termination of this Agreement until it is determined to the satisfaction of the City that all liabilities have been met that could arise from the indemnification obligations set forth in this Sectio n. SECTION 9. Standard of Care; Independent Contractor (a) The Artist shall perform all work 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. (b) The Artist enters into this Agreement as an independent contractor and not as an employee of City. Artist shall have no power or authority by this Agreement to bind City in any respect. Nothing in this Agreement shall be construed to be inconsistent with this relationship or status. All employees, agents, contractors or subcontractors hired or retained by the Artist are employees, agents, contractors or subcontractors of the Artist and not of the City. The City shall not be obligated in any way to pay any wage claims or other claims made against the Artist by any such employees, agents, contractors or subcontractors or any other person resulting from performance of this Agreement. SECTION 10. Compliance with Laws (a) The Artist shall comply with all applicable laws and regulations of the federal, state and local government. (b) The Artist is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq. ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain "public works" and "maintenance" projects. If any work performed by the Artist under this Agreement is being performed as part of an applicable "public works" or "maintenance" project, as defined by the Prevailing Wage Laws, and if the total compensation is $25,000 or more, the Artist agrees to fully comply with such Prevailing Wage Laws. The Artist shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. Any stop orders issued by the Department of Industrial Relations against Artist or any subcontractor that affect the Artist's performance of any part of this Agreement, including any delay, shall be the Artist's sole responsibility and the Artist shall indemnify the City from liability arising out of the same. It shall be mandatory upon the Artist 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), contractor registration (Labor Code Sections 1725.5 and 1771.1) and debarment of contractors and subcontractors (Labor Code Sections 1777.1). The requirement to submit certified payroll records directly to the Labor 166 Contract No. _______________ 13 Commissioner under Labor Code section 1771.4 and to be registered with the Department of Industrial Relations shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1771.4, 1725.5 and 1771.1. SECTION 11. Subcontracts Unless otherwise specified, the Artist must obtain the City's written permission before subcontracting any portion of the work. Except for the insurance requirements in this Agreement, all subcontracts and orders for the purchase or rental of supplies, materials or equipment, or any other part of the Artwork, will require that the subcontractor be bound by and subject to all of the terms and conditions of the Agreement. No subcontract or order will relieve the Artist from its obligations to the City, including, but not limited to the Artist's insurance and indemnification obligations. No subcontract or order will bind the City. SECTION 12. Risk of Loss The Artist shall bear the risk of loss or damage to the Artwork until the City's final acceptance of the Artwork under Section 1.8(B). The Artist shall take such measures as are reasonably necessary to protect the Artwork from loss or damage. The City shall bear the risk of loss or damage to the Artwork prior to final acceptance only if, during such time, the partially or wholly completed Artwork is in the custody, control or supervision of the City or its agent(s) for the purposes of transporting, storing, installing or performing other services to the Artwork. SECTION 13. Insurance 13.1 Minimum Requirements Without limiting the Artist's indemnification of the City, and prior to commencement of the artwork, the Artist 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 City. (a) General Liability Insurance. The Artist 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. The Artist 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 Artist 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 the Artist will not be utilizing a vehicle in the performance of his/her duties under this Agreement. 167 Contract No. _______________ 14 (c) Professional Liability (Errors & Omissions) Insurance. The Artist 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 Artist 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. The Artist shall maintain Workers' Compensation Insurance (Statutory Limits) and Employer's Liability Insurance (with limits of at least $1,000,000). The Artist shall submit to the 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. The Artist may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, the Artist 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: (i) 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; (ii) Pay on behalf of wording as opposed to reimbursement; (iii) Concurrency of effective dates with primary policies; (iv) Policies shall "follow form" to the underlying primary policies; and (v) Insureds under primary policies shall also be insureds under the umbrella or excess policies. 13.2 Other Provisions or Requirements. (a) Proof of Insurance. The Artist, including any subcontractors, shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this Section. The Artist shall provide certificates of insurance to the 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 the City's Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. The City reserves the right to require complete, certified copies of all required insurance policies, at any time. (b) Duration of Coverage. The Artist shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to 168 Contract No. _______________ 15 property, which may arise from or in connection with the performance of the Services hereunder by the Artist, his/her agents, representatives, employees or subconsultants. (c) Primarv/Non-Contributinq. Coverage provided by the Artist shall be primary and any insurance or self-insurance procured or maintained by the 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 the 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, the City has the right, but not the duty, to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by the Artist, or the City will withhold amounts sufficient to pay premium from Artist payments. In the alternative, the 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 the Artist or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. The Artist 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). The Artist acknowledges and agrees that any actual or alleged failure on the part of the City to inform the Artist of noncompliance 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 Artist maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the 169 Contract No. _______________ 16 Artist. 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. The Artist agrees to oblige its insurance agent or broker and insurers to provide the City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (j) Additional Insured Status. General liability, automobile liability, and if applicable, pollution liability and cyber liability, policies shall provide or be endorsed to provide that the City and its officers, officials, employees, agents, volunteers and representatives shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance of the Agreement, under such policies. This provision shall also apply to any excess/umbrella liability policies. (k) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to the City and approve d of in writing. (l) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that the Artist'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. The Artist 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 the Artist, provide the same minimum insurance coverage and endorsements required of the Artist. The Artist 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 Artist agrees that upon request, all agreements with subconsultants, subcontractors, and others engaged in the Project will be submitted to the 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 Artist ninety (90) days advance written notice of such change. If such change results in additional cost to the Artist, the City and Artist may renegotiate the Artist'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 the City. The 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 the City. (p) Timely Notice of Claims. The Artist shall give the City prompt and timely notice of claims made or suits instituted that arise out of or result from the Artist's performance 170 Contract No. _______________ 17 under this Agreement, and that involve or may involve coverage under any of the required liability policies. (q) Additional Insurance. The Artist 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. SECTION 14. Death or Incapacity of Artist In the event of the Artist's death or incapacity, as determined solely by the City, rendering the Artist unable to complete the Artwork, the City may elect to complete the Artwork and all payments made up to the point of death or incapacity will be retained by the Artist or the Artist's estate and all work performed by the Artist up to date of death or incapacity will be compensated. Any incomplete Artwork and any materials paid for by the City included in such Artwork will become the property of the City upon payment to compensate the Artist or Artist's estate, for all work performed up to the date of incapacity or death. However, if the Artwork is substantially designed and/or completed, as determined solely by the City, and it is feasible for the Artwork to be fully completed without undue delay, City may elect to proceed under the terms of this Agreement and complete the Artwork with the consent of the Artist, Artist's estate or Artist's legal representative. In such event, all remaining work to be completed in accordance with this Agreement will be delegated to the City Manager. The invocation of this Section by the City shall not render Section 7 ineffective with respect to the Artist's (or Artist's estate's) copyright ownership and reproduction rights. SECTION 15. Liens (a) The Artist, subcontractors and suppliers will not make, file or maintain a mechanic's or other lien or claim of any kind or character against the Artwork, for or on account of any labor, materials, fixtures, tools, machinery, equipment, or any other things furnished, or any other work done or performance given under, arising out of, or in any manner connected with the Agreement (such liens or claims referred to as "Claims"); and the Artist, subcontractor and suppliers expressly waive and relinquish any and all rights which they now have, or may subsequently acquire, to file or maintain any Claim and the Artist, subcontractor and suppliers agree that this provision waiving the right of Claims will be an independent covenant. (b) The Artist will save and hold the City harmless from and against any and all Claims that may be filed by a subcontractor, supplier or any other person or entity and the Artist will, at its own expense, defend any and all actions based upon such Claims and will pay all charges of attorneys and all costs and other expenses arising from such Claims. SECTION 16. Termination of Agreement by City (a) Should the Artist at any time refuse or fail to deliver the Artwork with promptness and diligence, or to perform any of its other obligations under the Agreement, the City may terminate the Artist's right to proceed with the delivery of the Artwork by written notice to the Artist. In such event the City may obtain the Artwork by whatever method it may deem expedient, including the hiring of another artist and, for that purpose, may take possession of all materials, machinery, equipment, tools and appliances and exercise all rights, options and 171 Contract No. _______________ 18 privileges of the Artist. In such case the Artist will not be entitled to receive any further payments until the Artwork is delivered and installed. If the City's cost of obtaining the Artwork, including compensation for additional managerial and administrative services, will exceed the unpaid balance of the Agreement, the Artist will be liable for and will pay the difference to the City. (b) The City may, for its own convenience, terminate the Artist's right to proceed with the work by written notice to the Artist. Such termination will be effective in the manner specified in such notice, will be without prejudice to any claims which the City may have against the Artist, and will not affect the obligations and duties of the Artist under the Agreement. Upon termination, the Artist shall be compensated only for that Work which has been adequately rendered to the City, and the Artist shall be entitled to no further compensation. The Artist may not terminate this Agreement except for cause. (c) If this Agreement is terminated as provided herein, the City may require the Artist to provide all finished or unfinished documents and data and other information of any kind prepared by the Artist in connection with the performance of the work under this Agreement. The Artist shall be required to provide such document and other information within fifteen (15) days of the request. SECTION 17. Miscellaneous Provisions 17.1 Notices. All notices hereunder and communications regarding interpretation of the terms of the Agreement or changes thereto shall be provided by the mailing thereof by registered or certified mail, return receipt requested, postage prepaid and addressed as follows: CITY: ARTIST: 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. 17.2 Assignment or Transfer. The Artist shall not assign or transfer any interest in this Agreement whether by assignment or novation, without the prior written consent of the City, which will not be unreasonably withheld. Provided, however, that claims for money due or to become due to the Artist from the City under this Agreement may be assigned to a financial institution or to a trustee in bankruptcy, without such approval. Notice of any assignment or transfer, whether voluntary or involuntary, shall be furnished promptly to the City. 172 Contract No. _______________ 19 17.3 Non-Discrimination. The Artist agrees at all times to fully comply with all laws prohibiting discrimination against any person or class of persons by reason of race, color, gender, religious creed, sex (including pregnancy or child birth), age, national origin, ancestry, sexual orientation, physical or mental disability, medical condition including genetic characteristics, veteran status, marital status, family care status, or any other considerations made unlawful by federal, state or local law in performance of this Agreement. If the use provided for in this Agreement allows the Artist to offer accommodations or services to the public, such accommodations, or services shall be offered on fair and reasonable terms. 17.4 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the Parties. 17.5 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 17.6 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. 17.7 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Riverside County. 17.8 Interpretation. 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. 17.9 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 17.10 Authority to Enter 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. 17.11 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. 17.12 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original. 17.13 City's Right to Employ Other Artists. City reserves its right to employ other contractors in connection with the artwork. 17.14 Entire Agreement. This Agreement constitutes the entire agreement between the Parties relative to the Goods specified herein. There are no understandings, agreements, 173 Contract No. _______________ 20 conditions, representations, warranties or promises with respect to this Agreement, except those contained in or referred to in the writing. [SIGNATURES ON FOLLOWING PAGE] 174 Contract No. _______________ 21 SIGNATURE PAGE FOR ARTIST AGREEMENT BETWEEN THE CITY OF PALM DESERT AND CRISTOPHER CICHOCKI 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 ARTIST Attest: Approved as to form: City Clerk QC: ___________ Contracts QC: ___________ Insurance: __________ Initial Review __________ Final Review 175 Contract No. _______________ 22 176 Contract No. _______________ Exhibit “A” EXHIBIT “A” ARTIST DESIGN & DESCRIPTION OF ARTWORK 1. Title, Date: Rising Inversion, November 2023 (original dedication date Nov 2023) 2. Description: [type, medium]: Sculpture: Steel frame, polystyrene, concrete, sheet metal, phosphorescent pigment, Nova Flex Varnish, sealed with protective anti - graffiti/UV paint, 3. Dimensions: 127” H x 42” W x 450” L above ground dimensions 4. Address/Location(s): Ironwood Park, 47800 Chia Drive 5. Description: Spherical formation with a depth ranging from five feet at the center to one foot at the edges. The artwork is fabricated with an inner steel framework. The mass body of the artwork consists of high-density polystyrene coated in 2 layers of smoothed concrete. The concrete surface was primed with industrial strength primer and coated on two sides. Side One – is coated with phosphorescent pigment and Nova Flex Varnish. Sealed with a protective anti- graffiti coating that is UV resistant. Side Two – is coated with high gloss “Aristoshield Black” by Dunn Edwards, a water-based “oil” paint that is industrial- grade. This side will not be sealed with a protective coating. Stock touch up is the easier solution to eliminate any potential graffiti while maintaining an ultra-high gloss finish that the Aristoshield Black provides. The edges of the artwork are finished with rusted and sealed sheet metal 6. Measurements and Images on following pages. 177 Contract No. _______________ Exhibit “B” EXHIBIT “B” SCOPE OF WORK 1. Artwork Preparation Artist shall complete the touch-up and protective treatment of the sculpture prior to delivery. This shall include renewed application of phosphorescent paint and a protective varnish sealer. All such work shall be completed off -site, and the sculpture shall be delivered in a finished state with the entirety of its detail intact. 2. Coordination and Communication Artist shall coordinate directly with the City, as Property Owner, regarding the schedule of work. All work activities shall be communicated to and approved by the City prior to execution. Artist shall provide the City with progress updates and promptly advise of any changes to the scope or schedule. 3. Site Preparation Artist shall prepare the designated placement zone at Ironwood Park through grading and leveling of the site. This shall consist of one (1) day of work, performed preferably one day prior to installation, and will involve the use of multiple workers for raking, shoveling, and leveling activities. 4. Transportation and Installation a) Artist shall arrange for transport of the sculpture from the Empire Polo Fields to Ironwood Park on the morning of the installation. Transport sha ll be conducted on a 40-foot flatbed truck, with preference for early morning transit to avoid cross-town traffic. b) Upon arrival, Artist shall oversee offloading of the sculpture using a forklift positioned on-site. c) The sculpture shall be placed within the prepared footprint, with its footings set and backfilled using recycled, local desert soil. d) To mitigate dust from the newly graded soil, Artist shall apply the soil stabilizer “Perma-Zyme” encircling approximately twenty-five (25) feet around the sculpture. The material is organic, eco-friendly, and will dry clear and unnoticeable to the eye. 5. Equipment and Materials Artist shall furnish all equipment, supplies, and materials necessary for the preparation, transportation, and installation of the sculpture in accordance with this Agreement. 178 Contract No. _______________ Exhibit “B” 6. Permits and Inspections Artist shall work with the City to ensure all necessary permits, approvals, and inspections are secured prior to final installation. Artist shall coordinate with the City to arrange for inspection of the installation before final placement of the sculpture. 7. Acceptance of Work a. The City shall have the right to review the Work at reasonable times during the installation. b. Artist shall notify the City in writing upon completion of all Services required under this Agreement. The City shall provide written notice of final acceptance (or non-acceptance) of the Work. 8. Risk of Loss The risk of loss or damage to the sculpture shall be borne by the Artist until written notice of final acceptance is issued by the City. Artist shall take necessary measures to protect the Work until final acceptance. 9. Insurance Artist shall add the City, as Property Owner, as additional insured on all insurance submittals required under this Agreement. 179 Contract No. _______________ Exhibit “C” EXHIBIT “C” BUDGET Rising Inversion Sculpture Breakdown Amount Sculpture $ 130,000.00 Soluable varnish/graffiti coating $ 2,000.00 Grading $ 5,000.00 Installation $ 2,000.00 Crane $ 5,000.00 Transport $ 1,000.00 Landscape $ 5,000.00 180 Contract No. _______________ Exhibit “D” EXHIBIT “D” PAYMENT SCHEDULE All requests for payment shall be submitted to the Economic Development Management Analyst, Public Art in writing for review and approval and must be accompanied with a detailed invoice and other documentation as required by the Economic Development Management Analyst, Public Art supporting the Work completed. a) Terms of payment are net thirty (30) days, less any applicable retention, after receipt of invoice, or completion of applicable progress milestones. Final payment shall be made by the City after the Artist has satisfied all contractual requirements. Payment of invoices shall not constitute acceptance of the work. b) Payment shall be made in accordance with the following schedule: i) Execution of Agreement (50%) —Seventy Five Thousand and 00/100 Dollars ($75,000.00) ii) Final Acceptance (50%) — Seventy Five Thousand and 00/100 Dollars ($75,000.00) 181 182 Isometric View A A B B C C D D 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 DO NOT SCALE DRAWING (D) Laguna Project SHEET 1 OF 6 UNLESS OTHERWISE SPECIFIED: SCALE: 1:24 WEIGHT: REVDWG. NO.DSIZE TITLE: NAME DATE COMMENTS: Q.A. MFG APPR. ENG APPR. CHECKED DRAWN FINISH MATERIAL INTERPRET GEOMETRIC TOLERANCING PER: DIMENSIONS ARE IN INCHES TOLERANCES: FRACTIONAL ANGULAR: MACH BEND TWO PLACE DECIMAL THREE PLACE DECIMAL APPLICATION USED ONNEXT ASSY PROPRIETARY AND CONFIDENTIAL THE INFORMATION CONTAINED IN THIS DRAWING IS THE SOLE PROPERTY OF <INSERT COMPANY NAME HERE>. ANY REPRODUCTION IN PART OR AS A WHOLE WITHOUT THE WRITTEN PERMISSION OF <INSERT COMPANY NAME HERE> IS PROHIBITED. 183 91.00 127.00 OVERALL HEIGHT 3" OF DOOR CLEARANCE 3.31 SideViewFront View Half Assembled View A A B B C C D D 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 DO NOT SCALE DRAWING (D) Laguna Project SHEET 2 OF 6 UNLESS OTHERWISE SPECIFIED: SCALE: 1:24 WEIGHT: REVDWG. NO.DSIZE TITLE: NAME DATE COMMENTS: Q.A. MFG APPR. ENG APPR. CHECKED DRAWN FINISH MATERIAL INTERPRET GEOMETRIC TOLERANCING PER: DIMENSIONS ARE IN INCHES TOLERANCES: FRACTIONAL ANGULAR: MACH BEND TWO PLACE DECIMAL THREE PLACE DECIMAL APPLICATION USED ONNEXT ASSY PROPRIETARY AND CONFIDENTIAL THE INFORMATION CONTAINED IN THIS DRAWING IS THE SOLE PROPERTY OF <INSERT COMPANY NAME HERE>. ANY REPRODUCTION IN PART OR AS A WHOLE WITHOUT THE WRITTEN PERMISSION OF <INSERT COMPANY NAME HERE> IS PROHIBITED. 184 456.63 450.00 Front View with Post Layout A A B B C C D D 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 DO NOT SCALE DRAWING (D) Laguna Project SHEET 3 OF 6 UNLESS OTHERWISE SPECIFIED: SCALE: 1:24 WEIGHT: REVDWG. NO.DSIZE TITLE: NAME DATE COMMENTS: Q.A. MFG APPR. ENG APPR. CHECKED DRAWN FINISH MATERIAL INTERPRET GEOMETRIC TOLERANCING PER: DIMENSIONS ARE IN INCHES TOLERANCES: FRACTIONAL ANGULAR: MACH BEND TWO PLACE DECIMAL THREE PLACE DECIMAL APPLICATION USED ONNEXT ASSY PROPRIETARY AND CONFIDENTIAL THE INFORMATION CONTAINED IN THIS DRAWING IS THE SOLE PROPERTY OF <INSERT COMPANY NAME HERE>. ANY REPRODUCTION IN PART OR AS A WHOLE WITHOUT THE WRITTEN PERMISSION OF <INSERT COMPANY NAME HERE> IS PROHIBITED. 185 450.00 121.00 R269.69 123.50 2.50 42.00 R1667.46 11.50 R1674.08 Front View SideView Top View A A B B C C D D 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 DO NOT SCALE DRAWING (D) Laguna Project SHEET 4 OF 6 UNLESS OTHERWISE SPECIFIED: SCALE: 1:24 WEIGHT: REVDWG. NO.DSIZE TITLE: NAME DATE COMMENTS: Q.A. MFG APPR. ENG APPR. CHECKED DRAWN FINISH MATERIAL INTERPRET GEOMETRIC TOLERANCING PER: DIMENSIONS ARE IN INCHES TOLERANCES: FRACTIONAL ANGULAR: MACH BEND TWO PLACE DECIMAL THREE PLACE DECIMAL APPLICATION USED ONNEXT ASSY PROPRIETARY AND CONFIDENTIAL THE INFORMATION CONTAINED IN THIS DRAWING IS THE SOLE PROPERTY OF <INSERT COMPANY NAME HERE>. ANY REPRODUCTION IN PART OR AS A WHOLE WITHOUT THE WRITTEN PERMISSION OF <INSERT COMPANY NAME HERE> IS PROHIBITED. 186 DD 450.00 121.00 2.50 82.13 56.50 SECTION D-D Bottom View A A B B C C D D 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 DO NOT SCALE DRAWING (D) Laguna Project SHEET 5 OF 6 UNLESS OTHERWISE SPECIFIED: SCALE: 1:24 WEIGHT: REVDWG. NO.DSIZE TITLE: NAME DATE COMMENTS: Q.A. MFG APPR. ENG APPR. CHECKED DRAWN FINISH MATERIAL INTERPRET GEOMETRIC TOLERANCING PER: DIMENSIONS ARE IN INCHES TOLERANCES: FRACTIONAL ANGULAR: MACH BEND TWO PLACE DECIMAL THREE PLACE DECIMAL APPLICATION USED ONNEXT ASSY PROPRIETARY AND CONFIDENTIAL THE INFORMATION CONTAINED IN THIS DRAWING IS THE SOLE PROPERTY OF <INSERT COMPANY NAME HERE>. ANY REPRODUCTION IN PART OR AS A WHOLE WITHOUT THE WRITTEN PERMISSION OF <INSERT COMPANY NAME HERE> IS PROHIBITED. 187 48.00 96.00 121.0048.00 25.00 81.0095.9096.0080.90 Foam Panel Joint Layout(subject to change during fabrication) A A B B C C D D 8 8 7 7 6 6 5 5 4 4 3 3 2 2 1 1 DO NOT SCALE DRAWING (D) Laguna Project SHEET 6 OF 6 UNLESS OTHERWISE SPECIFIED: SCALE: 1:24 WEIGHT: REVDWG. NO.DSIZE TITLE: NAME DATE COMMENTS: Q.A. MFG APPR. ENG APPR. CHECKED DRAWN FINISH MATERIAL INTERPRET GEOMETRIC TOLERANCING PER: DIMENSIONS ARE IN INCHES TOLERANCES: FRACTIONAL ANGULAR: MACH BEND TWO PLACE DECIMAL THREE PLACE DECIMAL APPLICATION USED ONNEXT ASSY PROPRIETARY AND CONFIDENTIAL THE INFORMATION CONTAINED IN THIS DRAWING IS THE SOLE PROPERTY OF <INSERT COMPANY NAME HERE>. ANY REPRODUCTION IN PART OR AS A WHOLE WITHOUT THE WRITTEN PERMISSION OF <INSERT COMPANY NAME HERE> IS PROHIBITED. 188 189 190 191 192 193 194 Page 1 of 2 CULTURAL ARTS COMMITTEE CITY OF PALM DESERT STAFF REPORT MEETING DATE: July 9, 2025 PREPARED BY: Erica Powell, Management Analyst SUBJECT: CONSIDER PURCHASE OF RISING INVERSION SCULPTURE BY CRISTOPHER CICHOCKI RECOMMENDATION: Recommend that the City Council approve expenditure in the amount of $150,000 for the purchase of Rising Inversion by artist Cristopher Cichocki (cha-house-key), to be permanently installed at Ironwood Park. BACKGROUND/ANALYSIS: Rising Inversion is a large-scale, site-specific sculpture originally commissioned by the Laguna Art Museum for its 11th annual Art & Nature program. Fabrication of the artwork was fully funded by the Museum, and the sculpture is now available for purchase at a cost that reflects the significant investment already made in its creation. The artwork, measuring 12 feet tall by 40 feet long and weighing approximately 3,000 pounds, is constructed in a spherical formation with a depth ranging from five feet at the center to one foot at the edges. The surface is coated with a phosphorescent pigment that absorbs sunlight during the day and emits a soft glow at dusk, gradually fading as night falls—creating an immersive and interactive public art experience. Ironwood Park, located at 47800 Chia Drive, is a tranquil desert setting with no existing public art. The proposed placement of Rising Inversion will offer residents, visitors, and park users an opportunity to engage with large-scale contemporary art in a serene and contemplative outdoor space. In addition to its artistic merit and interactive quality, Rising Inversion holds special significance as the work of Cristopher Cichocki, a Palm Desert native whose internationally recognized career in contemporary art reflects the City’s ongoing commitment to nurturing and celebrating local talent. Grant Funding Background: In 2024, staff submitted Rising Inversion for consideration under the National Endowment for the Arts (NEA) Our Town grant. The project was deemed ineligible due to administrative criteria unrelated to the artistic quality or community impact of the proposal. In 2025, the project was again submitted under the ARTS in California Parks grant program, but it did not advance to the application stage. No specific reason for this decision was provided. 57195 Cultural Arts Committee City of Palm Desert (Consider Purchase of Rising Inversion Sculpture by Cristopher Cichocki) Page 2 of 2 Despite these grant outcomes, the value of the sculpture and the opportunity it prese nts for community engagement and cultural enrichment remain clear. Staff therefore recommends direct acquisition of the artwork using approved Public Art funds. FINANCIAL IMPACT: The total cost for the acquisition and installation of Rising Inversion is $150,000. Funds have been approved and are available in the Capital Projects Public Art Projects account. The artist will be responsible for all site preparation, transportation, logistics, and installation of the sculpture, ensuring minimal impact on City resources. ATTACHMENTS: 1. Presentation for Rising Inversion by Cristopher Cichocki 2. Cristopher Cichocki Bio 3. LA Times article 4. Palm Springs Life article 5. Proposed Location at Ironwood Park 58196 Consider Purchase of Rising Inversion CULTURAL ARTS COMMITTEE PRESENTATION CITY OF PALM DESERT 197 Recommendation Approve expenditure of $150,000 from the Capital Projects Public Art Projects account for the purchase of Rising Inversion by Cristopher Cichocki (Cha-house-key), to be permanently installed at Ironwood Park. 198 Background •Rising Inversion was originally commissioned by Laguna Art Museum. •Fabrication is complete and fully funded by the Museum. •The 3,000-pound sculpture measures 12 ft x 40 ft, coated with phosphorescent pigment that glows at dusk. 199 Artistic and Community Significance •Interactive, large-scale public art installation •Proposed for Ironwood Park, a serene desert location with no current public art •Created by Palm Desert native Cristopher Cichocki •Promotes local talent and expands cultural landscape 200 201 202 Fiscal Analysis Total cost for acquisition and installation: $150,000 The artist will be responsible for: •Site preparation •Transportation and logistics •Installation Funds approved and available in Public Art Capital Projects account. 203 204 205 206 207 208 209 210 211 212 213 Cristopher Cichocki (pronoun ced CHA -HOUSE-K EY) Artist bio Cichocki studied at CalArts and Yale Norfolk School of the Art. His work is in permanent collections that include the J. Paul Getty Museum, Palm Springs Art Museum, Lancaster Museum of Art. Hailing from the Coachella Valley, Cichocki has explored the depths of the California desert over the past three decades, while generating exhibitions throughout North America, South America, Asia, and Europe. In 2014 Cichocki founded the curatorial platform Epicenter Projects that has recently partnered with Fondation LAccolade - Institute de France to create THE ELEMENTAL - a contemporary center for the arts located in Palm Springs focused on art, science, and environment. SELECTED EXHIBITIONS & PERFORMANCES 2024 Inversion (solo), Saenger Galeria, Mexico City (forthcoming), NUCLEUS (solo), de Sarthe Gallery, Scottsdale, Arizona La Vision Revela lo Que El Tacto Ya Conoce, Land Rover Patria, Xappopan, Jalisco - 2023 - Fractal Traces (solo), Projecto Arte, Guadalajara, Mexico - Rising Inversion (solo), Laguna Art Museum / Art & Nature, Laguna Beach, California (solo) (forthcoming) - Primordial Water (solo), Laguna College of Art & Design Gallery, Laguna Beach, California (solo) (forthcoming) - Without Walls Festival presented by The La Jolla Playhouse & San Diego Symphony, The Rady Shell, San Diego, California - Evaporation Pools (solo), Desert Island, Rancho Mirage, California - 2022 - Desert Daze, Lake Perris, California - Coachella Music & Arts Festival, Empire Polo Field, Indio, California - The Gaia Hypothesis Chapter One: Earth, Fire, Water, Air curated by Christopher Yggdre, THE ELEMENTAL, Palm Springs, CA - When The Rubber Meets The Road, ALLEYESONME, San Bernardino, California - 2021- Nothing True Everything Is Alive curated by Christopher Yggdre presented by Fondation LAccolade, Espace Coeur Marias, Paris, France - Historic Ground, Galerie De Vijf Ramen, Arnhem, Netherlands - 2019 - Water Memory (solo) curated by Biennale Urbana, Castello 925, Venice, Italy - 30 Days In Paris (residency), Fondation LAccolade, Paris, France - Desert Sea (solo) Cathedral City, California - Phantom Horizons , Stuttgart International Film Festival, Stuttgart, Germany - The Wrong Digital Art Biennale , Centre del Carme Cultura Contemporània, Valencia, Spain - Rotation, The Ace, Palm Springs, California - Landworks, The Long Beach Island Foundation, Loveladies, New Jersey - Joshua Treenial, Joshua Tree, California - 2018 - Divisions of Land and Sea (solo) Museum of Art and History, Lancaster, California - BioPerversity , Nicodim Gallery, Los Angeles, California - The Paseo Project , Taos, New Mexico - Cinema Perpetuum curated by Lera Green, Minsk, Belarus - Perpetual Drone , Human Resources, Los Angeles, California - Desert Daze , Lake Perris, California - 2017 - Faultline , Mecca, California - Wake, A Ship in the Woods, Escondido, Focal Planes, Chungking Studio, Los Angeles, California - Desert Daze , The Institute of Mentalphysics, Joshua Tree, California - Desert Island , Coachella Valley Art Center, Indio, California - Dusk to Dust curated by John Knuth, Mt. San Jacinto College 214 Gallery, San Jacinto, California - 2016 - Biennale Urbana, Teatro Marinoni, Lido, Italy - Root Cycle (solo) Villa Angarano, Bassano del Grappa, Italy - Circular Dimensions (solo) Palm Springs Art Museum, Palm Springs, California - Open Desert , Palm Springs Art Museum, Palm Springs, California - 2015 - At The Surface (solo) Artere-A, Guadalajara, Mexico - Phantom Horizons curated by Robert Seidel, Künstlerhaus Bethanien, Berlin, Germany - Sssound Object , Mexicali Rose, Mexicali, Mexico - Experimental Video Showcase, The Drake, Toronto, Canada - Reflections On Water , Palm Springs Art Museum, Palm Springs, California - Temporary Radiation, 996 Laboratorio de Arte, Guadalajara, Mexico - Festival of Experimental Video, Museum of Moving Image, New York, New York - 2014 - Circulation (solo) Museum of Photographic Arts, San Diego, California - Škver Art Project , Klubvizija SC + MM Center Cinema, Zagreb, Croatia - Inversion (solo) Imperial Valley Art Gallery, Imperial, California - Los Angeles Film Festival, Los Angeles, California - Being Here and There curated by Sant Khalsa, Lancaster Museum of Art and History, Lancaster, California - META The Wrong New Digital Art Biennale, Galeria Municipal de Arte, Abrantes, Portugal - Summit Artist- in -Residence, Summit, Eden, Utah - Shame curated by White Zinfandel Magazine, São Paulo International Art Fair, São Paulo, Brazil - Dry Heat : Four Artists In The California Desert curated by Steven Biller, Palm Springs Fine Art Fair, Palm Springs, California - 2013 - Desert Abyss: Cycle in Cycle (solo) Palm Springs Art Museum, Palm Springs, California - Desert Abyss: Dry Capsule (solo) Palm Springs Art Museum in Palm Desert, Palm Desert, California - Epicenter (solo) See Line Gallery, Los Angeles, California - Summit Outside , Summit, Eden, Utah - 2012 - Remains In The End Times, The Popular Workshop Gallery, San Francisco, California - 2011 - Rojo Nova, Casa França-Brasil, Rio De Janeiro, Brazil - Time Based Art Festival, Portland Institute of Contemporary Art, Portland, Oregon - Multiplicity Festival, Hi Future Theatre, Rio de Janerio, Brazil - Catalysts - 8 Artists on the San Andreas Fault, University of California Riverside, Palm Desert, California - Ende Tymes Festival , Silent Barn, Ridgewood, New York - Valley of The Ancient Lake, Salton Sea History Museum, North Shore, California - 2010 - Full Pull, Inter Arts Center, Malmö, Sweden - Rojo Nova Artscapes, Scion Building, Culver City, California - Rojo Nova, Museum of Image and Sound, São Paulo, Brazil - Desert Abyss: Origin (solo) Marks Art Center, Palm Desert, California - Plankton Robots, Fluxco, Los Angeles, California - 2008 - Elemental Shifting, Salvage Vanguard Theatre, Austin, Texas - SXSW Arts and Music Festival , Austin, Texas - 2007 - Monumento 872, Los Angeles, California - Everything Is Shifting, Pehrspace, Los Angeles, California - Druid Film Festival, Il Corral, Hollywood, California - Optical Projections, Machine Project, Los Angeles, California - 2006 - Wooster On Spring, The Candle Building, New York, New York - Turn The Screws Festival, Il Coral, Hollywood, California - 2005 - Ceremony , Bigoudi, Osaka, Japan 215 NEWS Cristopher Cichocki’s ‘Rising Inversion’ grips viewers with phosphorescent glow Artist Cristopher Cichocki draws lines with a flashlight on his luminescent sculpture, “Rising Inversion,” the signature piece of the 11th annual Art & Nature program at north Main Beach Park in Laguna Beach on Thursday. (Don Leach / Staff Photographer) By Andrew Turner Staff Writer | Contact Nov. 4, 2023 12:58 PM PT Beachgoers who came upon it simply couldn’t pass it and keep going. A massive semicircular structure had been placed at Main Beach, due north of the boardwalk, and even in the daylight, its visitors stared perplexed. Laguna Art Museum representatives filled them in, sharing that the scene before them was the featured exhibit for the institution’s 11th annual Art & Nature program. 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 1/7 216 A crowd of guests waits to watch artist Cristopher Cichocki (in orange jacket) unveil “Rising Inversion” on Thursday. (Don Leach / Staff Photographer) Those who could were advised to stick around for sunset, when Coachella Valley artist Cristopher Cichocki’s headlining work would be officially introduced to the community. Following a discussion by the artist to kick off the event, museum guests joined more members of the public patiently waiting to catch Cichocki’s sculpture, “Rising Inversion,” in full effect. A look at the first reveal of Coachella Valley artist Cristopher Cichocki's "Rising Inversion," the featured exhibit of Laguna Art Museum's 11th annual Art & Nature program. @TheDailyPilot @CarolCormaci pic.twitter.com/L4pBL19s90 — Andrew Turner (@AndrewTurnerTCN) November 3, 2023 When the sun went down, Cichocki flashed a light over the sand and phosphorescent surface of the artwork, each wave of the mysterious wand-like device giving way to a new piece of what he called a “biomorphic light painting.” Gathered in the dark, a captive audience stood at rapt attention as the image came into being, its turquoise-tinted glow an homage to bioluminescence, an occurrence that happens every so often off the shore of Southern California. 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 2/7 217 Artist Cristopher Cichocki’s “Rising Inversion” is set against a hillside at Main Beach Park in Laguna Beach. (Don Leach / Staff Photographer) The 3,000-pound structure, 12 feet tall and 40 feet long, dominated its location in front of a hillside above the surf line. Its depth ranged from 5 feet in the center to 1 foot at its edges, giving it a spherical appearance. A high-density foam made the structure transportable. It was then sealed with concrete, a phosphorescent topcoat and sand from the shoreline of Laguna Beach. While the artwork is located at Main Beach, placing it in front of the hillside and away from the downtown area was by design, Cichocki said. 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 3/7 218 Artist Cristopher Cichocki begins the process of lighting his luminescent artwork “Rising Inversion” on Thursday. (Don Leach / Staff Photographer) “The phosphorescence is a pigment that I’ve been using in my work for almost two decades,” Cichocki said. “It’s a kind of custom varnish that I’ve created in relationship to this phosphorescent pigment. With just a matter of 30 minutes of sunlight, it will glow all night long. If you were to have zero light pollution, this thing would be looking as bright as this particular activation of the light painting.” Cichocki considers his work to be at the intersection of the natural world and industry. In 2022, he had the opportunity to exhibit and perform at the Coachella Valley Music and Arts Festival. “Circular Dimensions x Microscape,” his installation featuring 25,000 feet of PVC pipe, created a pavilion that served as his performance stage. During its brief stay on Main Beach, “Rising Inversion” was the planned backdrop for an audiovisual performance by Cichocki on Saturday night. 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 4/7 219 Artist Cristopher Cichocki walks to his featured exhibit “Rising Inversion” on Thursday in Laguna Beach. (Don Leach / Staff Photographer) “Circular Dimensions is my musical moniker,” Cichocki said. “It’s an audiovisual, ever-evolving series of performances that responds to the immediate site. I’ve been doing it for 10 years now, and there’s always some element of sound, some element of light, of video, kind of a multi-sensory environment.” Cichocki said the sounds planned for Saturday night’s show included a combination of ambient sound, Gregorian chants and sounds heard in Laguna such as ocean waves and street traffic passing by in the dead of night. “If there’s nothing around and that car’s going down the vastness of Coast Highway, it actually sounds like a wave,” Cichocki added. “There’s this synthesis that occurs.” 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 5/7 220 The sun sets on artist Cristopher Cichocki’s “Rising Inversion” in Laguna Beach on Thursday. (Don Leach / Staff Photographer) The final sunset for the work will fall on Sunday, which concludes this year’s Art & Nature festivities. A graduate of Palm Desert High who went on to study at California Institute of the Arts, Cichocki said it was an honor to have his work featured in the Art & Nature program. He named off several headlining artists of the past, including Laddie John Dill, Lita Albuquerque and Phillip K. Smith III. Julie Perlin Lee, executive director of Laguna Art Museum, said she consulted with former Art & Nature artists before landing on Cichocki as this year’s featured creative. She said that Cichocki had appeal as a multidisciplinary artist who had a history of being able to collaborate with multiple agencies on projects. 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 6/7 221 Copyright © 2025, Los Angeles Times | Terms of Service | Privacy Policy | CA Notice of Collection | Do Not Sell or Share My Personal Information Artist Cristopher Cichocki draws lines with a flashlight on “Rising Inversion” at north Main Beach Park in Laguna Beach on Thursday. (Don Leach / Staff Photographer) “What was really fascinating to me is that Cristopher is an artist who is thinking on a huge timescale,” Perlin Lee said. “He thinks on geologic time, and that’s something that I think is really important for me, and I hope others are picking up on that when they see his project here, that we are very concerned with our environment today and our planet today. “So many of us are focused on the now, but I love that the undercurrent of Cristopher’s work is to think about the much bigger and broader picture, and not even just in terms of water and its scarcity here on Earth, but he also talks about in his work, he thinks about how water even got onto our planet in the first place when it was being formed.” Andrew Turner Andrew Turner is a sports reporter for the Daily Pilot. Before joining the Pilot in October 2016, he covered prep sports as a freelancer for the Orange County Register for four years. His work also has been used by the Associated Press and California Rubber Hockey Magazine. While attending Long Beach State, he wrote for the college newspaper, the Daily 49er. He graduated with bachelor’s degrees in journalism and history. (714) 966-4611 6/30/25, 10:09 AM Cristopher Cichocki’s 'Rising Inversion' grips viewers with phosphorescent glow - Los Angeles Times https://www.latimes.com/socal/daily-pilot/news/story/2023-11-04/cristopher-cichockis-rising-inversion-grips-viewers-with-phosphorescent-glow 7/7 222 Cristopher Cichocki evolves the elements of ecology through light, sound, and post-industrial debris. ARTS + CULTURE Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental ❮❯ New Luxury Homes Palm Springs & Palm Desert Schedule a Tour$1,336,000 3-BR at Luxury Golf Community in Palm Springs $709,000 Luxury 3-BR, 2-BA, Resort Amenities in Palm Desert $699,000 Modern 3-BR, 2-BA, Resort Amenities in Palm Desert aa 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/1/17 223 May 28, 2025 Story by Shana Dambrot An immersive array of light, painting, sculpture, and sound captured during Cristopher Cichocki's latest solo exhibition, Primordial Waters at The Elemental in Palm Springs. PHOTOGRAPHY BY LANCE GERBER Listen to this story: 00:00 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/2/17 224 For the better part of two decades, artist Cristopher Cichocki (pronounced cha-house-key) has been mining the dried-out seabeds and decaying infrastructures of the California desert — specifically the Coachella Valley and Salton Sea regions — gathering barnacles, emergency water canisters, misshapen fish skeletons, spiny succulents, and a variety of post-industrial debris to create a unique language of ecological elegy. His latest exhibition, Primordial Waters at The Elemental in Palm Springs, was an interdisciplinary spectacle featuring paintings, sculpture, photography, projection, sound, and immersive environments, charting a conceptual narrative from prehistoric Paleozoic to futuristic fallout. (Primordial Waters closed in May, but Cichocki plans to mount a follow-up in October.) 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/3/17 225 Cristopher Cichocki stands in front of his painting “Salt/Earth #2,” illuminated by UV light and glowing with phosphorescence, in his exhibition Primordial Waters at The Elemental. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/4/17 226 PORTRAIT BY VICTOR GONZALEZ The Elemental itself is a fascinating node in Cichocki’s creative continuum. Founded in 2020 as a joint initiative between Cichocki and Catherine Dobler of Paris-based Fondation L Accolade, where he was an artist in residence, the expansive space functions as a contemporary art center, residency hub, and conceptual think tank with a growing educational program for high schoolers called New Generation Arts. “I was that kid,” Cichocki often says, referring to the desert youth who now benefit from mentorship opportunities with international artists and thinkers. Cichocki’s long-form, multiyear approach to artmaking often unfolds in chapters. He revisits sites of ecological, cultural, and geological significance — the Salton Sea, the mud pots, the San Andreas Fault (where he also ran an outdoor residency called Epicenter Projects) — relentlessly investigating the intersection of art, ecology, and material science. Cristopher Cichocki - Primordial Waters | PALM SPRINGS LIFECristopher Cichocki - Primordial Waters | PALM SPRINGS LIFE 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/5/17 227 A CalArts graduate who relocated from Wisconsin to Palm Desert with his family at age 10, he speaks of the Coachella Valley not as muse but as collaborator. He culls organic materials, intervenes with studio artifice and technology, and presents his findings in exhibitions and performances at venues such as the Palm Springs Art Museum and Lancaster Museum of Art & History (MOAH). His resume reads like a circuit map of experimental festivals and alternative biennales, from Coachella festival’s large-scale art program to Venice’s Biennale Urbana, São Paulo’s Museum of Image & Sound, Mexico City’s Zona Maco, and locations closer to his Palm Springs home. The Elemental’s inaugural exhibition, The Gaia Hypothesis – Chapter One: Earth, Fire, Water, Air (2022),  curated by Christopher Yggdre, celebrated lineages of influences and contemporaries, including Laura Grisi and Ana Mendieta, in dialogue with Cichocki’s work. It explored the classical elements through James Lovelock and Lynn Margulis’ 1970s theory that Earth behaves as a self-regulating organism. Then, the group exhibition The Gaia Hypothesis – Chapter Two: Palm Trees Also Die (2023) examined sacred land stewardship through the lens of environmental collapse, with works addressing vanishing palm oases and the ancestral home of the Cahuilla people. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/6/17 228 View of the entrance of the exhibition The Gaia Hypothesis – Chapter One: Earth, Fire, Water, Air. Installation view of the exhibition The Gaia Hypothesis – Chapter Two: Palm Trees Also Die. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/7/17 229 Series of photographs by Lance Gerber on view during the 2025 exhibition Modern/Desert at The Elemental. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/8/17 230 Photography by Glen Wexler on view during the 2025 exhibition Modern/Desert at The Elemental. Immersive video by artist Mona Kuhn during the 2025 exhibition Modern/Desert at The Elemental. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/9/17 231 Primordial Waters is an evolving solo exhibition — overtly aquatic and lunar, in both material and poetic dimensions. He embraced not only the rippling blue Salton Seascape but also its hyper-salinated, post-human shimmer, encasing barnacles and debris from the shoreline in strangely alluring skins of chrome — sculptural works that read like relics of a lost civilization. References to ancient and speculative technologies permeate the exhibition. Rusted Cold War emergency water canisters stamped “Property of the U.S. Government, 1953” rest alongside cinder blocks that evoke both brutalist fallout shelters and sacred desert architecture. Synthetic sand mingles with organic soil. Water, meant to save, instead seeps, rusts, and destroys. In his series Evaporation Lines, Cichocki renders old data-card topographies and patchwork grids in metallic watercolors, their surfaces catching light like liquid mercury. A cavernous black-light chamber cycles between daylight neutrals and hallucinogenic nocturnes, making the works appear to shape-shift under UV spectra. At their core, they remain abstract, cosmic, molecular — fractal inversions of neurons, root systems, and galactic clusters. There’s a robust art historical lineage here, one that includes light and space artists like Mary Corse and Lita Albuquerque, land art figures Robert Smithson and Nancy Holt, Vivian Suter’s canvas jungles, and Walter De Maria’s boxes of soil, bringing the vast terrain into human space and scale. Cichocki, too, brings the land inside — not only as material but as living, unpredictable systems. “We live not, in reality, on the summit of a solid earth, but at the bottom of an ocean of air,” he reminds us, citing Thales of Miletus’ prescient 600 B.C. observation on the intersection of natural science and human perception. Cichocki’s art translates that invisible connection into strikingly visible form. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/10/17 232 Cichocki’s Fractal Traces series of works on paper alongside his painting series Evaporation Lines, as seen in Primordial Waters. His paintings and sculptural works embedded with sea salt, sand, and barnacles, as seen in Primordial Waters. 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/11/17 233 Black-light causes a resin-cast aloe vera installation to glow in Primordial Waters. Beyond the objects in the show, Primordial Waters comes alive through time-based elements. Video projections mimic lunar surfaces and phosphorescent marine life. A live microscope laboratory captures barnacles growing and mutating in real time. Audiovisual performances activate the space with soundscapes and ritual interventions. A resin-cast, Day-Glo aloe vera installation nods to both psychedelic bioluminescence and the practical vernacular of desert survival — and recalls the gorgeous and alarming impact of Cichocki’s earlier works. Through The Elemental, Cichocki and Dobler have institutionalized their ethos. To date, more than 50 international artists have exhibited there, while high school mentees thread their own narratives into the desert’s cultural tapestry. An annual residency program has brought practitioners like Sara Favriau, Marie-Luce Nadal, and Mona Kuhn into direct engagement with the region’s ecology. An upcoming expansion promises additional exhibition and performance space. There’s a larger cosmology at work here — one where the desert is both graveyard and laboratory, where water is older than the sun, and where art might still function as witness and warning. SHARE THIS STORY 6/30/25, 10:09 AM Local Artist Cristopher Cichocki Provides a Glimpse Inside The Elemental - Palm Springs Life https://www.palmspringslife.com/arts-culture/local-artist-cristopher-cichocki-provides-a-glimpse-inside-the-elemental/12/17 234 Proposed location for installation of Rising Inversion – Ironwood Park, 47800 Chia Drive 235 236 View from concrete path in park. 237 238 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Mariela Salazar, Management Analyst SUBJECT: RECEIVE AND FILE THE PARKVIEW OFFICE COMPLEX TENANT UPDATE, ACKNOWLEDGING THE CONCLUSION OF TENANT LEASES RECOMMENDATION: Receive and file the Parkview Office Complex Report 2025, providing the City Council with the latest information on tenant occupancy and lease activity. BACKGROUND/ANALYSIS: This report is to inform the City Council of the plans for the Parkview Office Complex and to provide an update on the demolition of the two-story building to accommodate the future library. The Parkview Office Complex (Complex), located adjacent to the Civic Center, has historically served as an office hub for government agencies, non-profit organizations, and private entities. The Complex consisting of two buildings (the one-story single-tenant building, and a two-story multi-tenant building) until recently, provided stable tenancy and consistent rent revenue for the City of Palm Desert for over two decades. In 2023, after many years of deferred maintenance, the future of the two-story building at the Complex was being evaluated by the City’s Economic Development team to determine marketability and the associated costs to bring it to current standards. In March 2024, the City Council considered and ultimately decided to demolish the two-story building and use that site for the new Library. In anticipation of this transition, all remaining leases were modified to a month-to-month basis, not to exceed December 30, 2025. Staff has also proactively worked with tenants to identify relocation options and ensure continuity of operations. This effort has included direct coordination with local commercial brokers to identify available office spaces within the City to accommodate tenants’ needs. The Capital Projects Department will oversee all aspects of demolition of the Parkview Building and the subsequent construction of the new Library. Current Status: As of September 2025, the two-story building remains partially occupied, with several tenants preparing for relocation in alignment with the lease expiration dates and the library’s capital improvement schedule. 239 City of Palm Desert PARKVIEW OFFICE COMPLEX TENANT REPORT 2025 Page 2 of 2 Tenant Unit No. Size Status CV Association of Government Suite 212 988 SF Vacant Anser Advisory Suite 132 345 SF Vacant Golden Construction Suite 138 488 SF Vacating 9.30.25 CV Mountain Conservancy Suite 120 1,000 SF Vacant Act for MS Suite 126 928 SF Vacant Advantech Consultants Suite 110 1,250 SF Vacating 9.30.25 Congressman Calvert Suite 129 875 SF Vacant Blieu Companies LLC Suite 117 1,227 SF Vacating 9.30.25 Desert Recreation District Suite 135 2,560 SF Vacant California Dept of Food & Agriculture Suites 201/212 2,007 SF *See note below *Staff is assisting with office and government vehicle relocation for Food & Ag. Staff will return to the City Council to review a new lease that may accommodate parking 10 vehicles at the current site. This would commence upon the conclusion of the existing office lease ending December 31, 2025, and execution of a new agreement between the City and State. Overall, many of the remaining occupied suites will be vacant by the end of September. Staff continues to work closely with tenants and brokers to ensure successful transitions. FINANCIAL IMPACT: Upon completion of all tenant relocations and the demolition of the Parkview Office Complex two-story building, the City will no longer receive the associated rental revenue as part of the Enterprise Fund. Moving forward, the one-story building currently occupied by the Water Board and Rehabilitation Department have active 10-Year leases and will continue to generate revenue to support the Enterprise Fund. Staff is negotiating potential rental revenue through parking lease with the California Department of Food & Agriculture for 10 designated parking spaces. Therefore, staff does not anticipate any direct impact to the General F und for any Enterprise Fund related expenditures. ATTACHMENTS: 1. Parkview Office Complex Report 2025 240 City of Palm Desert Parkview Office Complex Vacancy Rate Schedule by Suite Sept 2025 Rentable Square Feet:31,835 Square Feet Occupied:6,298 % Occupied:20% % Vacant:80% Suite No.Tenant Square Ft. 10-101 Medium Conference Room - 10-104 Large Conference Room - 10-110 Advantec 1,250 Move Out Date 9/30/25 10-117 Blieu Companies LLC 1,227 Move Out Date 9/30/25 10-138 Golden Construction 488 Move Out Date 9/30/25 10-141 Small Conference Room - 10-201 State of California - Food & Ag 890 10-212 State of California - Food & Ag 1,117 10-214 Coachella Valley Association of Governments 1,326 Total Occupied Suites 6,298 sq/ft 20% Suite No.Tenant Square Ft. 10-107 Vacant 10-113 Vacant 10-120 1,750 720 1,000 10-123 10-126 10-129 758 928 875 10-132 Vacant Vacant Vacant Vacant Vacant 1,345 10-135 Vacant 2,560 10-205 Vacant 5,730 10-209 Vacant 3,040 10-215 Vacant 4,507 10-219 Vacant 1,084 10-220 Vacant 1,240 Total Vacant Suites 25,537 sq/ft 80% Vacancy Rate Summary 73-710 Fred Waring Drive- Two (2) Story Building Occupied Suites Move Out date 12/31/25 Move Out date 12/31/25 241 242 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Mariela Salazar, Management Analyst SUBJECT: RESOLUTION DECLARING CITY-OWNED PROPERTY LOCATED AT 72880 HIGHWAY 111 FORMERLY KNOWN AS THE SEARS BUILDING AT WESTFIELD MALL, APN 640-140-020, AS SURPLUS LAND UNDER THE GOVERNMENT CODE SECTION 54221 AND FINDING THE ACTION CATEGORICALLY EXEMPT FROM CEQA RECOMMENDATION: Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221 THAT REAL PROPERTY OWNED BY THE CITY OF PALM DESERT LOCATED AT 72880 HIGHWAY 111 (APN 640-140-020), FORMERLY KNOWN AS THE SEARS BUILDING IS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE, AND FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), PURSUENT TO CEQA GUIDELINES SECTION 15312 (CLASS 12 – SURPLUS GOVERNMENT PROPERTY SALES), AND TAKING RELATED ACTIONS.” This action declares approximately 7.46 acres of city-owned property located on 72880 Highway 111 (APN 640-140-020), as surplus land in accordance with the California Surplus Land Act (SLA). BACKGROUND/ANALYSIS: On December 27, 2022, the City of Palm Desert purchased the former SEARS property, located at 72880 Highway 111, as part of a strategic economic development initiative. The property was acquired with the intent of ensuring local control in a key commercial corridor, supporting long- term redevelopment opportunities, and preventing prolonged vacancy at the prominent Highway 111 and Monterey Avenue intersection. Pursuant to State law, public agencies must comply with the Surplus Land Act (SLA) prior to sale, lease, or transfer of property. The SLA requires local agencies to formally declare property as surplus through a City Council Resolution before initiating the required noticing process for affordable housing developers and eligible entities. The SLA process as noted below does not authorize the disposition of the properties. Once the process is complete, staff will return to the City Council for approval to sell. If there is no interest in the properties, or if good faith negotiations are not succe ssful, the City will have satisfied its SLA requirements, subject to review by HCD, and will be able to sell the properties on the open market. 243 City of Palm Desert 72880 HIGHWAY 111, FORMER DEARS BUILDING (APN 640-140-020) Page 2 of 3 SLA Process: Staff is seeking approval from the City Council to initiate the disposition process through an Notice of Availability (NOA) and pursuant to the SLA for the City-owned parcels. As set forth below, staff is also seeking approval of the attached Resolution. Environment Review: Pursuant to the California Environmental Quality Act (CEQA), the proposal action is exempt from environmental review under CEQA Guidelines Section 15312 (Class 12 – Surplus Government Property Sales). The Property does not have significant value for wildlife habitat or other environmental purposes, and the use of the Property and adjacent property has not changed since the time of purchase by the public agency. Any future development or use of the Property by a purchaser will be subject to separate CEQA review by the appropriate lead agency at the time such development or use is proposed. This declaration of surplus land is therefore categorically exempt from further environmental review under CEQA. FINANCIAL IMPACT: An appraisal will be necessary to establish fair market value (FMV). Costs for the appraisal will be covered by available professional service funds in the Economic Development operational accounts. Once the SLA is completed and the property is sold at FMV, proceeds from the sale of the 7.46 acres will be deposited into the City’s Capital Project Funds, with a designated portion allocated to the Economic Development Fund. These funds may be used to support priority capital improvement projects or other Economic Development initiatives. 244 City of Palm Desert 72880 HIGHWAY 111, FORMER DEARS BUILDING (APN 640-140-020) Page 3 of 3 ATTACHMENTS: 1. Resolution declaring APN 640-140-020 as Surplus Land 2. Property map APN 640-140-020 245 246 RESOLUTION NO. 2025- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221 THAT REAL PROPERTY OWNED BY THE CITY OF PALM DESERT LOCATED IN THE SHOPS AT PALM DESERT MALL (APN 640-140-020), FORMERLY KNOWN AS THE SEARS BUILDIN, IS SURPLUS LAND AND NOT NECESSARY FOR THE CITY’S USE, FINDING THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA), PURSUANT TO CEQA GUIDELINES SECTION 15312 (CLASS 12 – SURPLUS GOVERNMENT PROPERTY SALES), AND TAKING RELEVENT ACTIONS. WHEREAS, the City of Palm Desert (“City”) is the owner in fee simple of that certain real property located within the Shops at Palm Desert Mall in the City of Palm Desert, County of Riverside, State of California Assessor’s Parcel Number 640-140-020 as further described in Exhibit A, attached hereto and incorporated herein by this reference (the “Property”); and WHEREAS, under the Surplus Land Act, Government Code Section 54220 et seq.(“Act”), surplus land is land owned in fee simple by the City for which the City Council takes formal action in a regular public meeting declaring the land is surplus and not necessary for the City’s use. The land must be declared either surplus land or exempt surplus land; and WHEREAS, under the Act, land is necessary for the City’s use if the land is being used, or is planned to be used pursuant to a written plan adopted by the City Council, for City work or operations; and WHEREAS, the City has determined that the land is not being used, nor is it planned to be used pursuant to a written plan adopted by the City Council, for City work or operations; and WHEREAS, the Property is approximately 324,957 square feet in size, is a vacant retail store (formerly Sears) and accompanying parking area within the Shops at Palm Desert Mall, and is not currently being used by the City; and WHEREAS, the City Council desires to declare that the Property is surplus land and not necessary for the City’s use; and WHEREAS, the Act requires that before the City Council disposes of the Property or engages in negotiations to dispose of the Property, the City shall send a written notice of availability (“Notice of Availability”) of the Property to certain entities designated as recipients of the Notice of Availability (“Designated Entities”); and WHEREAS, the staff report presented to the City Council together with this Resolution contains the factual background and supporting information upon which the declaration and findings set forth herein are based; 247 Resolution No. 2025-___ Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert as follows: SECTION 1. The above recitals are true and correct and are incorporated as a substantive part of this Resolution. SECTION 2. The City Council finds that the Property is not necessary for the City’s use. SECTION 3. The City Council hereby declares that the Property is surplus land pursuant to Government Code Section 54221(b)(1), and will be disposed of in accordance with the Act. SECTION 4. The City Council directs the City Manager, or his designee, to issue a Notice of Availability to the Designated Entities in accordance with the Act. SECTION 5. Pursuant to the California Environmental Quality Act (CEQA), The City Council finds that the sale of surplus property is categorically exempt from environmental review under CEQA Guidelines Section 15312 (Class 12 – Surplus Government Property Sales). The property does not have significant values for wildlife habitat or other environmental purposes, and the use of the Property and adjacent property has not changed since the time of purchase by the public agency.; and, the sale of the Property will not result in any physical changes to the environment. Any future development or use of the Property by a purchaser will be subject to separate CEQA review by the appropriate lead agency at the time such development or use is processed. SECTION 6. The City Clerk of the City of Palm Desert is directed to file a Notice of Exemption pursuant to CEQA Guidelines Section 15062. SECTION 7. The officers and staff of the City are hereby authorized, jointly and severally, to do all things which they may deem necessary or proper to effectuate the purposes of this Resolution, and any such actions previously taken are hereby ratified and confirmed. Such actions include issuing a Notice of Availability and negotiating in good faith in accordance with the requirements of the Act with any of the Designated Entities that submit a written notice of interest to purchase the Property in compliance with the Act. SECTION 8. The City Clerk of the City of Palm Desert shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Palm Desert shall cause this Resolution and the City Clerk’s certification to be entered in the File of Resolutions of the Council of this City. 248 Resolution No. 2025-___ Page 3 ADOPTED ON , 2025. ATTEST: JAN C. HARNIK MAYOR ___________________________ 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 September 25, 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 249 Resolution No. 2025-___ Page 4 EXHIBIT A PROPERTY DESCRIPTION 250 Resolution No. 2025-___ Page 5 (13} SOUTH 89° 55" 30" EAST,.207.5.2 FEET; (14} NORTI-1mr cw 30• EAST, 22.50 FEET; (15} SOUTH 89° 55" 30" EAST,5, 2_00 FEET; (16} SOUTH oo•04" 30" WEST, 137..43 FEET; (17) NORTI-189° W .21" WEST, 120.0DFEET; (18} SOUTH oo•04" 30" WEST 5.5.00 FEET; (19} NORTI-189° W .21" WEST, 100.0DFEET: (20} SOUTH oo•04" 30'' WEST, 200..33 FEET; (21} NORTI-186• 59139" WBST, 19.2.11 FEET; (22} NORTI-183• 04' 18" WBST; 175.41 FEET; (23} NORTI-186• 59139" WBST,.207.5!1FEET TO THE BEGINNING OF A.TANGENT Oi..JRVE CONCAVE NORTHEASTERLY; (24} THENCE NORTHWESTERLY ALONG, $,\ID CURVE talA.VlNG A RADUJS OF 18.00 REET, THRO!JGH A CENTRAL ANGLE OF 87 04' 09", AN ARC DISTANCE OF 27.l5 FEET; (25.} NORTI-1OD' CW 30" EAST, rn.59 FEET; (26} NORTI-189° 55' 30" WBST, M.00 FEET; TO THE POINT OF BEGINNING, THE ABOVE LEG.AL DESCRlPTION iS PURSUANT TO THAT OERTAIN CERTIFICATE OF COMPLIANCE REWR□ED JULY 9, HJ86, AS INSTRUMENT NO . "159865. AND RE-RECORDED NOVEMElER,6, 19!17, AS INSTRUMENT NO. 319672, BOTH OF OFFICIAL REOORDS 251 252 253 254 Page 1 of 3 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Ryan Gayler, Capital Projects Manager SUBJECT: AWARD A TASK ORDER TO TKE ENGINEERING FOR GRANT ADMINISTRATION AND DRAINAGE DESIGN SERVICES OF THE COOK STREET & GERALD FORD IMPROVEMENTS PROJECT (GDR00001) RECOMMENDATION: 1. Award a task order to TKE Engineering, Inc., for grant administration and the design of drainage improvements to the intersection of Cook Street and Gerald Ford Drive in the amount of $743,000. 2. Ratify the execution of the Memorandum of Understanding between the Southern California Association of Governments and the City of Palm Desert, outlining the responsibilities of the parties regarding the grant funds. 3. Adopt a Resolution entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE EXECUTION OF AN AGREEMENT TO RECEIVE FUNDING FROM THE REGIONAL EARLY ACTION PLANNING GRANT PROGRAM OF 2021.” 4. Authorize the City Attorney to make non-monetary changes to the task order and Resolution as necessary. 5. Authorize the City Manager to execute the task order and an addendum to the Memorandum of Understanding, refining the details of the MOU to match the proposed project. BACKGROUND/ANALYSIS: In 2023, the City of Palm Desert applied for a grant administered by the Southern California Association of Governments (SCAG). The grant is called Regional Utilities to Support Housing (RUSH), which is a pilot program under the Regional Early Action Planning (REAP) grant program. In December 2023, the City was awarded up to $8 million in grant funding, with a potential local match requirement of up to $6.5 million for drainage improvements along the northern boundary of the City. If the project will not utilize the entire award amount, the remainder of the grant funds will be reprogrammed to other projects by SCAG. The City initiated preliminary engineering, including hydrology and hydraulics, to determine the scope of potential projects. The grant requires the project to be completely constructed by December 31, 2026. In March 2025, the City Manager executed the original Memorandum of Understanding (MOU) with SCAG, securing grant funds while finalizing project scope and other key details. During the evaluation phase, several project alternatives were considered. However, most were ruled out due to significant land acquisition challenges. Primarily, private property owners were either unwilling to sell or imposed contingencies that made acquisition unfeasible. 255 City of Palm Desert Authorize City Manager to execute a task order for the Cook Street & Gerald Ford Improvements Page 2 of 3 Through the preliminary engineering process, staff identified the Cook Street & Gerald Ford Retention Basin Project as the most viable and beneficial option for utilizing the SCAG grant. The project aims to enhance transportation access during storm events, particularly for first responders stationed at the new fire station on Gerald Ford Drive. The primary goal is to reduce or eliminate flooding at the intersection of Cook Street and Gerald Ford Drive, an area where floodwaters can create access barriers for pedestrians, cyclists, and motorists. Flooding at this intersection can also impede access to the Cook Street interchange at Interstate 10. This project also meets the goals of the RUSH grant by encouraging infill housing development, giving builders confidence that both the development and its future residents will be protected from flood impacts. With the project scope and estimated costs now finalized, the City is positioned to utilize $3,780,500 of the REAP 2.0 grant funding, with a local match of $195,000 as the City’s required contribution. The grant-funded portion will support the design of drainage improvements at the intersection and the construction of enhancements to the existing retention basin system located along the northern edge of the City, east of Cook Street (formerly known as the Mid-Valley Channel). Also included in the design is a future retention basin on the north side of Gerald Ford Drive, along with a storm drain system to convey water from low-lying areas on the roadway. However, construction of the new retention basin and storm drain is not included in the current grant- funded scope, as the City has not yet acquired the necessary land. Moreover, due to the grant's expiration timeline, completing this portion of the project before the end of 2026 is not practicable. The finalized project scope has been submitted to SCAG for approval, and SCAG is currently drafting a revised MOU to clearly reflect the updated project details. This MOU requires the City to adopt a resolution authorizing acceptance of the grant funds. Given the complexity of grant administration and the condensed project timeline due to the grant expiration deadline, the City has requested a cost proposal for assistance from TKE Engineering, Inc., one of the City's on-call engineering consultants. These consultants were previously selected through a competitive procurement process, which included proposal evaluations and interviews by staff from multiple departments. The proposed scope of work includes grant administration, environmental documentation, and project design services, with a not -to-exceed cost of $743,000. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Funds for this task order are available in the New Construction Fund (Fund 231) and are included in the approved FY 2025-26 Financial Plan and Capital Improvement Project (CIP) List. The grant operates on a cost-reimbursement basis, requiring the City to pay expenditures upfront 256 City of Palm Desert Authorize City Manager to execute a task order for the Cook Street & Gerald Ford Improvements Page 3 of 3 and then submit invoices to SCAG for reimbursement. The table below outlines the project budget and expenditures to date: Authorized Budgets Date Authorized Total General Fund 110 New Const Fund 231 Meas G Fund 400 Preliminary Eng. Budget FY2023-24 4/1/2024 194,700 194,700 - - Eng. & Grant Admin Budget FY2025-26 7/1/2025 1,000,000 - 1,000,000 - Construction Budget FY2026-27 7/1/2025 8,500,000 - - 8,500,000 Construction Budget FY2027-28 7/1/2025 5,000,000 - - 5,000,000 Total Authorized Budget to Date 14,694,700 194,700 1,000,000 13,500,000 Authorized Expenditures Date Authorized Total General Fund 110 New Const Fund 231 Meas G Fund 400 Q3 Consulting (Prelim Eng A47200) 4/1/2024 194,700 194,700 - - Total Authorized Expenditures to Date 194,700 194,700 - - Eng. & Grant Admin: TKE Engineering, Inc.* 743,000 - 743,000 - Remaining Project Budget Available 13,757,000 - 257,000 13,500,000 *This request ATTACHMENTS: 1. Task Order- TKE GDR00001 2. Proposal 3. Resolution 4. M-035-25 REAP 2.0 RUSH Palm Desert MOU Executed 5. Vicinity Map 257 258 CITY OF PALM DESERT TASK ORDER Contract No / P.O. #: Task Order No.: Task Order Bonds Needed?: YES NO Account No.: Project No.: Vendor No.: Description of Work Contract Purpose: Contractor Name: Project Manager: This Task Order is hereby executed on: The dollar amount for this task order is: _________________________________________________________ dollars and ___/100 (___________) Estimated Completion Date: The undersigned Contractor hereby agrees that it will provide all equipment, furnish all materials, except as may be otherwise noted above, and perform all work specified above in accordance with the Agreement identified above and will accept as full payment therefore in the amount shown above. NOTE: No payments will be made prior to City Manager or Council approval QC: _____ 1.APPROVED BY:____________________ City Manager 2. ACCEPTED BY:______________________ Contractor The Contractor is hereby authorized to perform the following work subject to the provisions of the Agreement identified above: Retention Required?: YES NO 3.CERTIFIED FUNDS AVAILABLE: _____________________ Finance Director A47461 P117104 4 4 2314134-4400200 GDR00001 V0013783 Grant Administration, Design Engineering, and Environmental - Cook and Gerald Ford Ryan Gayler September 25, 2025 The work consists of the administration of the REAP 2.0 grant (SCAG), environmental compliance / regulatory permitting, and design of intersection improvements and drainage improvements at the retention basin system along the northerly edge of the City, east of Cook Street. The description of work is further defined in the proposal letter dated 9/11/2025. Seven hundred forty-three thousand 00 $ 743,000.00 January 31, 2027 TKE Engineering, Inc. TKE Engineering, Inc. 259 260 September 11, 2025 Ryan Gayler, Capital Projects Manager CITY OF PALM DESERT 73510 Fred Waring Drive Palm Desert, CA 92260 Subject: Proposal to Provide Professional Engineering Services for Design of Storm Drain and Regional Retention Basin Improvements Dear Mr. Gayler, The City of Palm Desert desires to retain professional engineering services for the construction of storm drain improvements and a regional retention basin to be installed on a City owned parcel adjacent to the railroad tracks immediately south of the Interstate 10 freeway and generally bounded between Cook Street, Gerald Ford Drive and the Los Arboles Apartment Complex. The project area currently experiences significant flooding in and around the intersection of Cook Street and Gerald Ford Drive during and after large rain events. The project is proposed to include preparation of two separate construction document packages for storm drain/channel improvements and the retention basin improvements. Construction will also be phased into 2 separate construction projects. The conceptual documents will be used to hold community meetings and obtain feedback from the local business owners and residents. Upon obtaining community comments, the City will provide ultimate direction for items to be incorporated into design. Scope of Services Our Scope of Services for the project is presented in the following paragraphs: Task No. 1 – Project Administration TKE’s Project Manager will be responsible for the entire project team. He will attend all meetings, prepare agendas and corresponding meeting minutes together with collection of signatures for meeting attendees (sign-in sheets). He will meet with the City at appropriate times and will meet as needed with agencies, residents, property owners, and utilities in addition to the meetings presented below. We will also update TKE’s project budget and schedule prior to each City meeting for discussion with staff. Task No. 2 – Initial ‘Kick Off’ Meeting Prior to commencement of services, we propose to meet City staff to review project obligations and to discuss all project requirements in detail. TKE’s Project Manager 7 3 -9 9 3 H i g h w a y 1 1 1 , S u i t e 2 0 1 – P a l m D e s e r t – C A – 9 2 2 6 0 P h . ( 7 6 0 ) 8 9 5 -1 9 4 9 w w w . t k e e n g i n e e r i n g . c o m 261 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 2 of 9 and Project Engineer will attend the meeting to determine project protocol and obtain City record drawings. Task No. 3 Records Research We will research existing survey and utility records. The purpose of the records research is to assemble survey records to establish locations of street centerlines, street rights-of-way, and easements and determine locations of all existing utilities and improvements. The research will consist of assembling copies of assessors’ maps, tract maps, parcel maps, easement documents, monument ties, benchmark data, corner records, street improvement plans, and utility drawings. We will request the City provide copies of available pertinent City records, such as survey ties, benchmarks, and street, sewer, storm drain and/or water improvement plans. In addition, we will request the City provide a title report for the site. We will notify Underground Service Alert to acquire a complete list of underground utility purveyors. For onsite work, the utility drawings will include existing drawings primarily provided from the City, and drawings and/or atlas maps from all private utility companies, and/or agencies. We will send first utility notice letters to all identified utility companies and agencies requesting their data. We will maintain copies of the letters and correspondence for future reference. We shall also provide the City with a complete copy of all correspondence with all utility companies. Task No. 4 Design Survey We propose to use conventional survey to prepare the base construction drawings. Our field survey crew will locate existing street centerline monuments utilizing survey control data and set necessary aerial targets. The crew will measure the horizontal angle, horizontal distance, and vertical elevation difference between each survey monument. We will complete a traverse for each survey to ensure closure. Utilizing GPS survey methods, two first order horizontal monuments will be established for the project associating the survey to the NAD 83, California State Plane Coordinate System, Zone 5, Epoch 2011.0. The monuments will be adjusted to the California High-Precision Geodetic Network and its densification stations. Elevations will be tied to existing City benchmarks based on the NGVD 88 Datum. In addition, we will measure sewer and storm drain inverts. We will collect appropriate detail within the project limits and a minimum of one hundred (100) feet beyond the project site, as required, including channels, basins, spillways, access roads, slopes, walls, trees, landscaping, walkways, sidewalks, driveways, curbs, gutters, cross gutters, fire hydrants, water valves, manholes, water meters, signs, street lights, power poles, and all other visible features that may impact the construction of the proposed improvements. 262 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 3 of 9 Task No. 5 Base Drawing Preparation We will prepare the base construction drawings on 24” by 36” sheets with the City’s standard title block using AutoCAD Civil3D software, at a drawing scale of 1”=40’. The base construction drawings will include a plan view based on the accumulated conventional and aerial survey data. We will add the sheet north arrow, graphic scale, existing improvements and utilities (based on both assembled records and field data), property lines, public and private right-of-way, easement areas, assessor parcel numbers, street centerline, street names, building locations, water service locations; sewer manhole lids and water valve lids; cross gutters; driveways, pedestrian ramps; traffic stripes and legends; curb returns; details of private improvements, fences, gates, irrigation systems, mailboxes, trees and landscaping, and survey data to the drawings. Once the base drawings are complete, we will perform a careful field review to ensure all underground facilities are shown correctly. Task No. 6 Hydrology/Hydraulic Analysis TKE will prepare a preliminary project drainage study that will include all areas tributary to the project. We will estimate runoff quantities for 10-year, 50-year and 100-year storm event and needed drainage facilities and catch basins for the project area. The analysis will also determine basin sizing which will be analyzed in relation to the potential runoff volumes conveyed by the different storm frequencies. The results of the drainage study will be assembled in a summary report. The report will include an executive summary, an introduction (including discussions on study area limits, existing runoff patterns, existing land uses, existing and proposed drainage infrastructure, and design criteria), and study scope (including discussions on hydrology methods used and system hydraulics) in accordance with Riverside County Flood Control and Water Conservation District standards. The study will include calculation tables and figures necessary to support the report findings. We will include reference to existing reports adjacent to the project to ensure the system will be designed appropriately for any future funding requests. Task No. 7 Preliminary Engineering Preliminary engineering will include: a. Master Plan and Other Document Review-TKE will review the City’s current drainage master plan and conceptual designs to determine design parameters. Using the inflows and outflows maximum limits, basin capacity requirements will be determined for flood control. b. Alternative Design Development-TKE anticipates that at least 2 different project design alternatives will be considered. The analysis of each alternative will consider factors such as environmental impacts, permitting requirements, storm drain improvement limits and basin sizing. Construction cost estimates 263 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 4 of 9 and benefit cost analysis will be prepared for each alternative. All hydraulic calculations will be prepared using City approved software. Task No. 8 Geotechnical Investigation We would propose to retain Aragon Geotechnical Inc. (AGI) as a subconsultant to provide Geotechnical services for the project. AGI’s scope of services includes, mobilization with truck mounted drilling equipment, boring locations/elevations, utility locates, traffic control during drilling, drill and sample borings, Shelby Tube samples or blow counts in all borings at 5-foot intervals, laboratory testing, engineering analysis, and electronic boring logs. Prior to the field investigation, AGI will prepare a plan showing the proposed boring locations. The plan will be submitted to the City for obtaining an encroachment permit to perform the borings. If traffic control is necessary when drilling, AGI will follow the City traffic control guidelines. AGI will also perform the following: Δ Drilling, sampling and logging of necessary borings along roadway and below proposed culvert. AGI will notify Underground Service Alert. Borings include, the asphalt pavement thickness and base thickness will be noted during the boring operations. Δ Design of street structural section using City provided traffic indices. Δ Laboratory testing of representative soil samples to evaluate in-situ moisture content, density tests, infiltration rates, max density and optimum tests, sieve analysis, R-value, direct shear tests, consolidation and collapse tests and corrosivity characteristics of the on-site soils. Δ Data compilation and geotechnical analysis of existing geotechnical maps, reports, and field and laboratory data to provide recommendations for pavement design. Analysis will include recommendations for new pavement section alternatives, based on the traffic indices and R-value testing. Preparation of a report presenting findings, conclusions and recommendations pertaining to design, compaction requirements, subgrade preparation, and earthwork/embankment recommendations. In addition, the report will provide recommendations for asphalt pavement recycling and other recommendations, which would include cost saving treatment methods. The report will also include Δ Settlement and slope stability analysis for roadway fill areas and culverts and (updates there to). Δ Suitability of existing soils to be excavated for reuse as embankment fill. Task No. 9 Environmental Compliance Tom Dodson and Associates (TDA) will prepare an Initial Study (IS) pursuant to the requirements of CEQA § 21080 and § 15060 through § 15065 of the CEQA Guidelines. Technical analyses will be conducted for each of the environmental 264 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 5 of 9 factors, as warranted, and well-supported responses for all questions listed under each environmental factor in CEQA Guidelines will be provided. The environmental review of the proposed project will be conducted at a design, construction and operation level of detail. The nature of the technical analyses to be undertaken will range from stand-alone technical studies such as those to be prepared. Focused analyses necessary to address specific questions under each environmental factor of the Environmental Checklist. Mitigation measures will be developed in proportion to the severity and probability of occurrence of the identified potentially significant effect. It is their intent to work directly with the City Planning Staff assigned to the proposed project. Their approach also incorporates the need for multiple reviews of key documents (e.g., revisions to engineering and construction drawings and project specifications) and coordination with key components of the overall required services, to ensure that the document prepared is adequate and will best reflect the Lead Agency’s independent judgement. The close coordination between our Project Manager and City staff will also reflect the Lead Agency’s commitment to process and notice the anticipated IS/MND in a legally defensible and procedurally compliant manner. Task No. 10 Preliminary Design Review Meetings After the City has completed its review, we will meet with City staff to acquire Staff’s comments regarding project alternatives, project costs and alternative benefits. At the completion of the meeting, it is assumed that the City will select a project alternative to move into the design phase. Task No. 11 Community Meetings After completing the preliminary engineering, we will meet with City staff for discussion. Upon completion of the City’s review, TKE will work with City staff to begin planning for one public meeting. TKE will assist staff with scheduling and publishing of the meeting as required and will prepare all exhibits needed for the presentation. TKE will present the plan alternatives, discuss the pros and cons of each alternative and finally discuss the benefit cost analyses and recommended alternative. TKE will document all public comments for distribution to staff. Task No. 12 60% Design 60% Design will include preparation of preliminary construction drawings, preliminary technical specifications, preliminary construction estimates. Construction drawings will show proposed street, storm drain and basin improvements including locations of proposed storm drain pipe, channels, catch basins, basin slopes, access roads, inlet structures, spillways, curb, drive approaches, swales, and fencing. Proposed improvements will be designed in accordance with the 265 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 6 of 9 City’s current design standards and specifications for ultimate street and drainage improvements. For the drawings, we will prepare a title sheet, construction notes sheet, demolition plan sheets, drainage sheets, grading sheets, plan/profile for access road and curb and gutter, cross-section sheets, and necessary detail sheets. The title sheet shall include the title of the job, a vicinity map showing the City in relationship to surrounding communities, a location map showing the project limits, a list of abbreviations used, benchmark data, general notes, construction notes and quantities, an index for the drawings, list of utilities with phone numbers, and references on the City’s standard title block. The construction note sheet will show general construction notes and project specific requirements. The demolition sheet will show existing improvement demolition including limits of removal. In addition, the plan will specify relocation of private improvements such as mailboxes, fences, drive approaches, etc. as required. Construction sheets will show proposed site including locations of proposed inlet and outlet facilities, slopes, access roads, site limits, berms, and concrete structures. In addition, preliminary grades will be prepared to establish project grading requirements. The proposed improvements will be designed to minimize removals, grading and earthwork. For drainage improvements, construction drawings will show proposed site including locations of proposed storm drain pipe, channels, headwalls and wingwalls, inlet and outlet facilities, slopes, access roads, site limits, berms, and concrete structures. In addition, preliminary grades will be prepared to establish project street regrading requirements. The proposed improvements will be designed to properly account for drain line installation and utilities. Detail sheets will show inlet, outlet, and overflow structure details. For the specifications, we will amend the City Standards Technical Provisions as required for the projects. The City standard specifications are supported by the Greenbook, State standard plans and specifications, and County Flood Control standards. The construction specifications will be prepared in Microsoft Word (2020 Version) format in accordance with City standards. Special provision will be added to the specifications as required to comply with regulatory agency requirements. In addition, we will prepare quantity estimates for all proposed improvements prepared using an excel spreadsheet showing an itemized construction cost breakdown. Descriptions of work, unit prices, and quantities will be included in the spreadsheet. Task No. 13 Regulatory Permitting Coordination After 60% design is complete, plans and associated applications will be submitted to Union Pacific Railroad, Riverside County Flood Control and Water Conservation 266 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 7 of 9 District, State Fish and Game, and the US Army Corps of Engineers, as appropriate. TKE will track the permitting progress, meet with agency representatives as required and provide additional information as needed until permits are obtained. Task No. 14 Coordination with Agencies/Utilities After 60% design is complete, plans will be sent to agencies having facilities in the project areas requesting that they verify their facilities are shown correctly and that they furnish any construction requirements they desire. We will highlight each agency’s facilities and advise each of potential conflicts and relocation requirements. We will request that they respond within two weeks and we will follow up with telephone calls to confirm all agency requirements have been incorporated. We will document all conferences with utilities and agencies and copy the City via e-mail. Task No. 15 60% Design Review Meeting After the City has completed its review, we will meet with City staff to acquire Staff’s comments. Task No. 16 90% Design 90% design will include incorporation of City comments and final storm drain, basin and street design. 90% Design will be submitted with a project summary memorandum together with an updated project schedule, additional stakeholder meeting summary, if needed, and internal plan review documentation. Task No. 17 90% Design Review Meeting After the City has completed its review, we will meet with City staff to acquire Staff’s comments. Task No. 18 Final Contract Documents Final documents will include incorporation of City final comments, and final documents ready for public bidding. Final documents will include mylars and hard copy specifications with signatures and electronic copies of final documents. Task No. 19 Final Coordination with Agencies/Utilities After the final drawings are approved by the City, we will again submit them to all agencies/utilities having underground facilities in the project area requesting that they verify their facilities are shown correctly and we will advise them of the project construction schedule and relocation requirements. In addition, we will coordinate final relocation construction prior to project bidding. We will document all meetings and conferences with utilities and agencies. 267 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 8 of 9 Task No. 20 Grant Assistance TKE will assist with grant administration in strict conformance with program requirements. Services will include: Δ Review all City-Grant Agency contract documents. Δ Prior to beginning to provide services, TKE will conference call with grant administrator to review implementation expectations. Δ Assemble and submit initial documents to Grant Agency. Δ Maintain project progress data and provide to Grant Agency. Δ TKE will prepare a work schedule, which indicates the tasks, long lead work items, and the milestone dates to ensure the project meets the implementation requirements. Δ Prepare progress invoices. The invoices will be sent electronically in draft format for Grant Agency’s project officer’s review. Upon notice that the invoice is consistent with requirements, TKE will submit invoices with supporting records including financial reports, and other records as needed. Δ Quarterly progress reports-TKE will prepare quarterly progress reports including discussions of activities conducted, changed conditions encountered and their resolution, planned activities, request any needed special Grant Agency Assistance, and financial accounting of all project. Δ Prepare forms for any change of scope, budget adjustment, schedule adjustment and progress reporting. Δ Final Report-TKE will prepare a final report that will include a short project narrative describing the environmental and public health benefits of the project together with an assessment of how effective the project was in achieving the stated grant objectives within Grant Agency required time period after the conclusion of the project. Task No. 21 Bidding and Construction Support TKE will provide support during the bidding and construction phase. Work includes, but is not limited to, the following: Δ Responding to questions during the project advertisement period, and log questions and responses. All communication will be directed to the Town for issuance to the bidders Δ Attending pre-bid and pre-construction conference, job walk and field meetings, along with City staff. Attend construction coordination meetings, as requested by the City, to provide design clarifications or updates due to unforeseen field conditions or changes. Δ Preparing addenda, as necessary, with coordination and issuance by the City and revise plans as-needed based on findings during the bidding phase Δ TKE will also review and evaluate contractor submittals and RFIs, including construction schedules and material submittals, to facilitate smooth project execution and clarification to construction documents. Respond to RFIs from the contractor during construction. 268 Letter to Ryan Gayler, City of Palm Desert (Cont.) Proposal to Provide Professional Engineering Services for the Regional Retention Basin System September 11, 2025 Page 9 of 9 Δ Support City staff during construction phases, including design clarification and conflict resolution and change orders, as needed. Fee TKE’s fee to provide the scope of service described above is shown on the attached fee table breakdown. TKE will invoice monthly in accordance with our rate schedule and will not exceed our fee without prior approval from the City. Thank you for the opportunity to submit our proposal to provide professional surveying services. If you have any questions, please contact me at (760) 895-1949. Sincerely, Terry Renner, P.E., P.L.S., Q.S.D. Senior Vice President TKE Engineering, Inc. 269 Total Task No.Task Hours $Hours $Hours $Hours $Hours $Hours $Hours $$ 1.Project Administration 80 14,000$ 48 7,920$ -$ -$ -$ -$ 80 7,200$ 29,120$ 2.Initial Kickoff Meeting 4 700$ 4 660$ -$ 4 620$ -$ -$ 4 360$ 2,340$ 3.Records Research -$ 2 330$ -$ 4 620$ -$ -$ 12 1,080$ 2,030$ 4.Design Survey 2 350$ 4 660$ -$ -$ -$ 80 20,800$ -$ 21,810$ 5.Base Construction Drawings 2 350$ 8 1,320$ -$ 54 8,370$ 80 11,600$ -$ -$ 21,640$ 6.Hydrology/Hydraulic Analysis 8 1,400$ 40 6,600$ 80 12,800$ 64 9,920$ 80 11,600$ -$ 8 720$ 43,040$ 7.Preliminary Engineering 8 1,400$ 40 6,600$ 32 5,120$ 60 9,300$ 80 11,600$ -$ 4 360$ 34,380$ 8.Geotechnical Investigation 2.)4 700$ 8 1,320$ -$ 8 1,240$ -$ -$ 8 720$ 26,530$ 9.Environmental Compliance 3.)12 2,100$ 24 3,960$ 16 2,560$ 24 3,720$ -$ -$ -$ 116,840$ 10.Preliminary Design Review Meeting 4 700$ 4 660$ 4 640$ -$ -$ -$ 2 180$ 2,180$ 11.Community Meeting 12 2,100$ 12 1,980$ 8 1,280$ 8 1,240$ 16 2,320$ -$ 24 2,160$ 11,080$ 12.60% Design 4.)64 11,200$ 120 19,800$ 80 12,800$ 280 43,400$ 320 46,400$ -$ 24 2,160$ 149,620$ 13.Regulatory Permitting Coordination 24 4,200$ 40 6,600$ 16 2,560$ 24 3,720$ 64 9,280$ -$ 16 1,440$ 77,300$ 14.4 700$ 8 1,320$ -$ 8 1,240$ -$ -$ 8 720$ 3,980$ 15.60% Design Review Meeting 2 350$ 2 330$ -$ -$ -$ -$ 1 90$ 770$ 16.90% Design 4.)40 7,000$ 80 13,200$ 40 6,400$ 180 27,900$ 220 31,900$ -$ 16 1,440$ 94,770$ 17.90% Design Review Meeting 2 350$ 2 330$ -$ -$ -$ -$ 1 90$ 770$ 18.Final Contract Documents 4.)24 4,200$ 40 6,600$ 24 3,840$ 80 12,400$ 120 17,400$ -$ 12 1,080$ 47,830$ 19.4 700$ 8 1,320$ -$ 8 1,240$ -$ -$ 8 720$ 3,980$ 20.Grant Assistance 64 11,200$ 80 13,200$ -$ 24 3,720$ -$ -$ 32 2,880$ 31,000$ 21.Bidding Assistance 16 2,800$ 40 6,600$ -$ 24 3,720$ -$ -$ 16 1,440$ 14,560$ 22.23.Subtotal:380 66,500$ 614 101,310$ 300 48,000$ 854 132,370$ 980 142,100$ 80 20,800$ 276 24,840$ 735,570$ Reimbursables (@1%):1.)7,430$ Total:743,000$ Rates:Notes: Project Manager 175$ /HR 1.) Reimbursables Include Cost for Prints, Copies, Mileage, Etc. Project Engineer 165$ /HR 2.) Aragon Geotechnical for Geotechnical Investigation Hydrology/Hydraulic Specialist 160$ /HR 3.) Tom Dodson and Associates for Environmental Compliance Associate Engineer 155$ /HR 4.) Knapp and Associates for Structural Design Assistant Engineer 145$ /HR Clerical 90$ /HR 2-Man Survey Crew 260$ /HR TKE Engineering, Inc. Coordination with Agencies/Utilities Final Coordination with Agencies/Utilities 13,860$ 22,550$ 104,500$ 199,650$ 6,930$ 49,500$ 2,310$ SubconsultantsAssociate Engineer Hydrology/Hydraulic Specialist $ City of Palm Desert Engineering Services for Design of Storm Drain and Regional Retention Basin Improvements Fee Schedule Breakdown Project Manager Project Engineer Clerical Assistant Engineer 2-Man Survey Crew 270 RESOLUTION NO. 2025-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING THE EXECUTION OF AN AGREEMENT TO RECEIVE FUNDING FROM THE REGIONAL EARLY ACTION PLANNING GRANT PROGRAM OF 2021 WHEREAS, the Regional Early Action Planning Grant Program of 2021 (“REAP 2.0”) program was established by the California state legislature as part of the 2021 California Comeback Plan under AB 140 to confront the statewide housing affordability crisis by building and expanding on the success of the REAP 2019 program by integrating housing and climate goals and allowing for broader planning and implementation investments to facilitate housing supply, choice, and affordability; and WHEREAS, REAP 2.0 funded activities must meet the program objectives, which are to accelerate infill development that facilitates housing supply, choice and affordability; affirmatively further fair housing; and reduce vehicle miles traveled. Further, all residential development must be in areas meeting the definition for “In Fill” provided in the REAP 2.0 state guidelines; and WHEREAS, the Southern California Association of Governments (“SCAG”) issued a call for applications under the Projects to Accelerate Transitional Housing (”PATH”) Program; and WHEREAS, SCAG intends to award $3,780,500 to the City of Palm Desert to complete and deliver the Cook Street and Gerald Ford Improvements project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. That the foregoing Recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City of Palm Desert hereby authorizes and directs such actions as are necessary and appropriate to accept the grant award of REAP 2.0 funds in the amount of $3,780,500 from SCAG. SECTION 3. That the City Manager or his designee is hereby authorized and directed to: 1. Execute an agreement with SCAG and any amendments thereto; 2. Take all reasonably necessary and appropriate actions to complete the Cook Street and Gerald Ford Improvements project, fulfill all obligations required, and seek reimbursement of grant funds awarded, pursuant to the above referenced call for applications and in a manner consistent and in compliance with the REAP 2.0 guidelines and objectives and PATH Program guidelines and all applicable state and federal statutes, rules, regulations, and laws. 271 Resolution No. 2025-____ Page 2 ADOPTED ON ________________, 2025. 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 September 25, 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 272 MEMORANDUM OF UNDERSTANDING No. M-035-25 SCAG Overall Work Program (OWP) No: 305-4925.01 Federal/State Awarding Agency: State of California, Department of Housing and Community Development Funding Source: Regional Early Action Planning Grants Program of 2021 (REAP 2.0) Sub-Recipient Name: City of Palm Desert Sub-Recipient’s UEI No: XLREHY4MDGW4 Total Amount of Federal Funds Obligated to Sub -Recipient: $0 Total Amount of Non-Federal Funds Obligated to Sub-Recipient: $8,000,000 Total Amount of the Sub-Award: $8,000,000 Subaward Period of Performance Start Date: See Section 37 Subaward Period of Performance End Date: June 30, 2026 Type of Contract: Project Specific Method of Payment: See Section 6 of this MOU Project R&D: N/A Indirect Cost Rate for the Award: N/A Fringe Benefits Cost Rate for the Award: N/A Subaward Project Title: City of Palm Desert REAP 2.0 Regional Utilities Supporting Housing Program Grant – Capital Projects Subaward Project Description: City of Palm Desert will utilize REAP 2.0 funding for a project that provides investments in utility infrastructure planning and capital improvements that will support jurisdictions in meeting the housing production goals defined in the 6th cycle RHNA, housing elements and REAP 2.0 Program objectives. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 273 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 2 MEMORANDUM OF UNDERSTANDING No. M-035-25 BETWEEN THE SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS AND CITY OF PALM DESERT FOR REAP 2.0 REGIONAL UTILITIES SUPPORTING HOUSING PROGRAM GRANT (SCAG Project/OWP No. 305-4925.01) This Memorandum of Understanding (“MOU”) is entered into by and between the Southern California Association of Governments (“SCAG”) and City of Palm Desert (“Sub-Recipient”), for a Regional Utilities Supporting Housing (“RUSH”) Program Grant. SCAG and Sub-Recipient may be individually referred to as “Party” and collectively as “Parties.” RECITALS WHEREAS, the Regional Early Action Planning Grants Program of 2021 (“REAP 2.0”) was established with a principal goal to make funding available to Metropolitan Planning Organizations (“MPO”) and other regional entities for transformative planning and implementation activities that meet housing and equity goals, reduce Vehicle Miles Traveled per capita, and advance implementation of the region’s Sustainable Communities Strategy or Alternative Planning Strategy, as applicable; WHEREAS, the California Department of Housing and Community Development (“HCD”) administer s REAP 2.0 in accordance with Health and Safety Code sections 50515.06 to 50515.10 (“Statutes”) and REAP 2.0 guidelines for MPO applicants released by HCD pursuant to the Statutes (“REAP 2.0 Guidelines”); WHEREAS, SCAG is the federally designated MPO for Southern California, primarily responsible for the development of a Regional Transportation Plan/Sustainable Communities Strategy (“RTP/SCS” also known as “Connect SoCal”) for the counties of Imperial, Los Angeles, Orange, San Bernardino, Riverside, and Ventura; WHEREAS, HCD awarded funds to SCAG under REAP 2.0; WHEREAS, SCAG’s Regional Council authorized funding for the RUSH Program and approved the guidelines for the RUSH Program (“Program Guidelines”); WHEREAS, SCAG released a competitive Call for Applications for the RUSH Program; WHEREAS, Sub-Recipient, eligible for funds under the RUSH Program, developed and submitted a proposed project for the RUSH Program (“Project”); WHEREAS, SCAG reviewed the Project and determined the Project to be consistent with the REAP 2.0 Guidelines and Program Guidelines, and approved the Project to receive funding; and WHEREAS, the purpose of this MOU is to describe the responsibilities of the Parties. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 274 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 3 NOW THEREFORE, IT IS MUTUALLY AGREED THAT: 1. Recitals and Exhibits The Recitals and all exhibits referred to in this MOU are incorporated herein by this reference and made a part of the provisions of this MOU. 2. Term The Term of this MOU shall begin on the Effective Date and continue until June 30, 2026, (“Completion Date”), unless terminated earlier as provided herein. Time is of the essence in the performance of services under this MOU. 3. Scope of Work and Sub-Recipient’s Responsibilities a. Sub-Recipient shall be responsible for implementing the Project in accordance with the “Scope of Work,” attached as Exhibit A. b. Interim deliverables and tasks, including budgets and schedules, required to implement the Scope of Work shall be documented using the “Scope of Work Approval Form,” attached as Exhibit B (“SOW Approval Form”). The SOW Approval Form must be signed by SCAG Project Manager, SCAG Department Manager, SCAG Deputy Director or their designee, and Sub-Recipient prior to the performance of the work outlined in the SOW Approval Form. The SOW Approval Form may be signed by way of a manual or authorized digital signature, or a signature stamp. The SOW Approval Form may be used to document interim deliverables and interim deliverable budgets and schedules but may not be used to modify the deliverables and budget noted in this MOU. The SOW Approval Form may be amended subject to approval by SCAG. No amendment to the SOW Approval Form shall be valid unless made in writing and signed by the Parties. If there is a conflict between the SOW Approval Form and this MOU, this MOU shall prevail. c. Sub-Recipient must demonstrate a clear and significant nexus to all the REAP 2.0 Goals and Objectives, as described in Section 9 of this MOU, and must carry out the Project to meet the REAP 2.0 Goals and Objectives. Any lack of action or action inconsistent with REAP 2.0 Goals and Objectives may result in review and could be subject to modification of funding, termination of this MOU, and repayment of the Grant Funds. d. In compliance with Section 3.e., Sub-Recipient may procure and manage one or more Consultants to ensure the Scope of Work, as outlined in the most current fully executed SOW Approval Form, is fully performed and the Project is completed in compliance with this MOU and all applicable laws and regulations. e. As a recipient of federal and state funds, SCAG has the responsibility for ensuring that its procurement process complies with all applicable federal, state and funding requirements. For all agreements entered into containing funds provided under this MOU or to perform work under this MOU, Sub-Recipient shall procure in compliance with all applicable federal, state, and local laws Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 275 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 4 and regulations. All REAP 2.0 funded procurements must be conducted using a fair and competitive procurement process and sole source procurements are expressly prohibited. [ f. The term “Consultant(s)” shall hereinafter refer to all entities that Sub-Recipient procures, manages, or otherwise enters into contracts or agreements with, in furtherance of the Project or this MOU regardless of the timing, nature of service/work provided or type of organization, including but not limited to government entities, political subdivisions, subrecipients, consultants, contractors, service providers, suppliers, independent contractors, professionals, managers, architects, engineers, and subcontractors. g. Upon request, Sub-Recipient shall provide information to the SCAG Project Manager regarding any existing solicitation including but not limited to Requests for Proposals, Invitation for Bids, Request for Qualifications, and Requests for Quotation (collectively “RFP”). For new RFPs developed or finalized after the Effective Date of this MOU, Sub-Recipient shall provide information to the SCAG Project Manager and obtain SCAG Project Manager’s written approval on any final RFP prior to its issuance. SCAG may require documentation of RFPs and Notices to Proceed before approval of invoice reimbursement. h. When requested, Sub-Recipient shall provide other related documentation of compliance, as determined by SCAG, with applicable procurement requirements and terms and conditions of this MOU within ten (10) days of the request. i. Sub-Recipient shall be responsible for conducting a complete detailed review of Consultant(s)’ invoices prior to payment. The review shall include, but not be limited to, ensuring: (1) the work included in the invoice is correctly invoiced and supported; (2) hours worked equal hours invoiced; (3) charged rates are equal to the contracted rates; (4) materials and services were received; and (5) that the work performed is consistent with the Scope of Work. Upon review, Sub-Recipient shall pay Consultant(s)’ invoices prior to submitting invoices to SCAG for reimbursement. j. Sub-Recipient shall be accountable to SCAG and HCD to ensure Consultant(s)’ performance. Sub- Recipient’s Project Manager shall be responsible for final approval of Consultant(s)’ deliverables consistent with the Scope of Work, as outlined in the most current fully executed SOW Approval Form; provided, however, that prior to approving a deliverable from the Consultant(s), Sub- Recipient’s Project Manager shall consult with SCAG’s Project Manager . k. Any and all notices, reports, or other communications required by this MOU, including but not limited to invoices, accounting reports, supporting documentation, and monitoring reports, shall be submitted under the penalty of perjury. l. Sub-Recipient shall be responsible for ensuring compliance with all applicable California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) requirements, and, as applicable, shall serve as the implementing agency for environment al approval(s). Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 276 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 5 4. Project Management a. All work under this MOU shall be coordinated with SCAG and Sub-Recipient through the Project Managers. b. For purposes of this MOU, SCAG designates the following individual as its Project Manager: Jessica Reyes Juarez Associate Regional Planner (213) 236-1802 juarez@scag.ca.gov SCAG reserves the right to change this designation. c. For purposes of this MOU, Sub-Recipient designates the following individual(s) as its Project Manager: Ryan Gayler Capital Projects Manager (760) 776-6393 rgayler@palmdesert.gov Sub-Recipient reserves the right to change this designation upon written notice to SCAG. 5. Funding Grant Funds: $8,000,000 Match Contribution: $6,500,000 a. SCAG’s contribution to the Project is funded wholly with REAP 2.0 funds, in an amount not to exceed $8,000,000 (“Grant Funds”). b. Sub-Recipient shall provide a minimum of $6,500,000 of match in support of the Project ("Match Contribution"). Match Contribution must be identified in writing and if applicable the associated commitments obtained, before the Sub-Recipient can incur any costs for which the Sub-Recipient will request reimbursement. Match Contribution must adhere to the terms and conditions of this MOU. Nothing shall prohibit the Sub-Recipient from providing additional Match Contribution to the Project, but the Grant Funds contributed by SCAG shall not exceed the Grant Funds, regardless of any increased Match Contribution. Match Contribution may be Cash or In-Kind. i. Match Contribution may be Cash or In-Kind. 1. For the purposes of this MOU, Cash Match Contribution is an actual cash contribution. Cash Match Contribution shall be substantiated by identifying its source, including a contact name, address and telephone number and the task(s) to which the Cash Match Contribution will be applied. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 277 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 6 2. For the purposes of this MOU, In-Kind Match Contribution is the value of any real property, equipment, goods, or services contributed to the Project that would have been allowable costs if the Sub-Recipient was required to pay for such costs with Grant Funds. In-Kind Match Contribution may consist of personnel time, contributions provided by third parties, including labor, vouchers, equipment or other tangible or allowable real property. In- Kind Match Contribution shall be substantiated by providing the amount, a description, documented market or book value, and its source or owner, including a contact name, address and telephone number and the task(s) to which the In-Kind Match Contribution will be applied. c. SCAG shall not be obligated to make payments for any costs that exceed the Grant Funds. SCAG shall not be obligated to pay for any increase in costs which exceeds the budget included in this MOU and the most current fully executed SOW Approval Form. SCAG shall not be obligated to make payments from any source other than funds provided by HCD to SCAG pursuant to REAP 2.0. In the event HCD terminates its agreement to provide funds or reduces the funds provided, SCAG shall have the right to terminate this MOU, in accordance with Section 17, or to amend this MOU to reflect the changes in funding. d. SCAG shall make payments to Sub-Recipient only for work performed as part of the Scope of Work, as outlined in the most current fully executed SOW Approval Form, and consistent with REAP 2.0 Goals and Objectives, REAP 2.0 Guidelines, and Program Guidelines. e. SCAG reserves the right, in its sole discretion, to discontinue funding the Project and/or terminate this MOU as described in Section 17. f. Any costs for which Sub-Recipient receives reimbursement or credit that is determined by a subsequent audit or other review by either SCAG, HCD, other State authorities or federal cognizant agency to be ineligible or otherwise unallowable, shall be repaid by Sub-Recipient within thirty (30) calendar days of Sub-Recipient receiving notice or a written demand for reimbursement from SCAG. Such repayment may include interest, penalties, or related fees, as determined by HCD or other State authorities. Should Sub-Recipient fail to reimburse unallowable costs due to SCAG within thirty (30) calendar days of demand, or within such other period as may be agreed between both parties hereto, SCAG is authorized to withhold and/or off-set future payments to Sub-Recipient. 6. Invoices a. This MOU is a Cost Reimbursement agreement. Amounts claimed must reflect the actual incurred and paid cost of completed work. The actual incurred and paid costs may not exceed the Project’s budget set forth in this MOU and the most current fully executed SOW Approval Form. All invoices submitted to SCAG for payment shall be e-mailed to accountspayable@scag.ca.gov (file cannot exceed 10MB) and copy the SCAG Project Manager. All invoices submitted to SCAG for the Project shall reference the OWP Project Number (OWP No. 305-4925.01). Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 278 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 7 b. By the twenty-first day following the start of a new month (i.e., January 21, February 21, March 21), Sub-Recipient shall submit an invoice to SCAG using the electronic “Invoice Template” in accordance with the invoice submittal instructions and requirements noted in Exhibit C. Invoices must be submitted in both PDF format and Excel file format. Invoices shall contain a progress report portion which serves to confirm that the services have been performed and can be paid. All invoiced costs must be substantiated, by providing documented support for the expense incurred, such as copies of payroll reports, paid invoices, and proof of payment. The invoice progress report shall serve as the formal progress report for the Project and shall be signed by the Sub-Recipient. The progress report shall include, in narrative form, a description of services performed by Sub- Recipient’s staff and Consultant(s) as well as progress toward completion of tasks related to the Project for the invoiced period and progress achieved toward the REAP 2.0 Goals and Objectives. SCAG shall review invoices for compliance with this MOU. If SCAG determines that an invoice is compliant with this MOU, SCAG shall approve the invoice and issue payment to the Sub- Recipient. If SCAG determines that an invoice is not compliant with this MOU or the most current fully executed SOW Approval Form, SCAG may withhold and/or off-set future payment(s) to the Sub-Recipient. c. SCAG shall reimburse Sub-Recipient as promptly as SCAG’s fiscal procedures permit, using Electronic Fund Transfer, available at: ACH Vendor Payment Authorization Form, upon receipt of itemized invoices submitted in accordance with this MOU. Sub-Recipient shall complete the ACH Vendor Payment Authorization Form and email it to ACHpayment@scag.ca.gov, prior to executing this MOU. d. Incomplete or inaccurate invoices may be returned to Sub-Recipient for correction without payment until corrected and approved. SCAG may, at its discretion, disallow any unsupported costs and process the invoice. If Sub-Recipient corrects the error, the disallowed items can be included in the next set of invoices. e. Travel expenses and per diem rates are not to exceed the rates and policies specified by the State of California Department of Human Resources, which can be found at: https://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx. The Parties acknowledge that SCAG’s fiscal year is from July 1 to June 30 . Sub-Recipient agrees to submit all invoices to SCAG for services rendered through June 30th, no later than July 21st during the Term of this MOU. SCAG shall not be obligated to pay Sub-Recipient for any invoice received after such date. f. Sub-Recipient shall submit its final invoice to SCAG within thirty (30) days of the completion of the Project, but no later than within thirty (30) days after all Grant Funds have been expended. SCAG shall not be obligated to pay-Sub Recipient for any invoice received after such date. g. Sub-Recipient will require that its Consultant(s) pay any contractors and subcontractors for satisfactorily completed work no later than ten (10) days of receipt of each payment from Sub- Recipient. The ten (10) calendar days period is applicable unless a shorter period is required by applicable law. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 279 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 8 7. Reporting a. At any time during the term of this MOU, SCAG may request additional information, as needed, to demonstrate satisfaction of all requirements identified in the MOU and the most current fully executed SOW Approval Form. b. By February 10 of each year following receipt of funding pursuant to this MOU, Sub-Recipient shall submit an Annual Report using the “Report Template,” attached as Exhibit D. The Annual Report shall include, in narrative form, a description of services performed by Sub -Recipient’s staff and Consultant(s) as well as progress toward completion of tasks related to the Project for the prior year, a reporting of all costs incurred for that period, and progress achieved toward the REAP 2.0 Goals and Objectives. c. When a Project is finalized, and no later than the Completion Date, Sub-Recipient shall submit a Close-Out Report for the Project. At the time of the execution of this MOU, HCD has not provided the requirements for the Close-Out Report due to HCD by all grantees at the conclusion of the grant performance period. Therefore, the Close-Out Report format required by SCAG of Sub- Recipient is not available at this time, but will be provided when it becomes available. d. All reports submitted to SCAG shall reference the OWP Project Number (OWP No. 305-4925.01). 8. Accounting a. Sub-Recipient shall establish and maintain an accounting system and reports that properly accumulate incurred Project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (“GAAP”), enable the determination of incurred costs as interim points of completion, and provide support for payment vouchers and invoices. b. Sub-Recipient shall establish a separate ledger account for receipts and expenditures of Grant Funds and maintain expenditure details in accordance with the Scope of Work, as outlined in the most current fully executed SOW Approval Form. c. Sub-Recipient shall maintain documentation of its normal procurement policy and competitive procurement bid process and completed procurements, and financial records of expenditures incurred during the course of the Project in accordance with GAAP. 9. Allowable Uses of Grant Funds a. Grant Funds shall be expended in compliance with the REAP 2.0 Goals and Objectives. i. REAP 2.0 Goals (“Goals”) are to invest in housing, planning, and infill housing-supportive infrastructure across the entire state in a manner that reduces Vehicle Miles Traveled (“VMT”), increases housing affordability, and advances equity. More detailed information on the Goals can be found in Section 201 of the REAP 2.0 Notice of Funding Availability (“NOFA”) and Final Guidelines for MPO Applicants and are made a part of the provisions of this MOU as if set forth in full. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 280 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 9 ii. REAP 2.0 Objectives (“Objectives”) include: (1) accelerating infill development that facilitates housing supply, choice, and affordability; (2) affirmatively furthering fair housing; (3) reducing vehicle miles traveled. More detailed information on the Objectives can be found in Section 202 of the REAP 2.0 NOFA and Final Guidelines for MPO Applicants and are made a part of the provisions of this MOU as if set forth in full. b. Grant Funds shall only be used by Sub-Recipient for activities approved by SCAG and included in the Scope of Work, as outlined in the most current fully executed SOW Approval Form. c. Grant Funds may not be used for administrative costs of persons employed by Sub-Recipient for activities not directly related to eligible activities. d. There must be a strong implementation component for the funded activity through REAP 2.0, including, where appropriate, agreement by Sub-Recipient to submit the completed planning document or effort to the applicable board, council, or other entity for adoption or approval. If Sub-Recipient does not formally request adoption or approval of the funded activity, it may be subject to repayment of the Grant Funds. 10. Work Products a. For purposes of this MOU, “Work Products” shall mean all deliverables created or produced under this MOU including, but not limited to, all deliverables conceived or made either solely or jointly with others during the term of this MOU and during a period of six months after the termination thereof, which relates to the Project. Work Products shall not include real property or capital improvements. Work Products includes all deliverables, inventions, innovations, improvements, or other works of authorship Sub-Recipient or Consultant(s) may conceive of or develop in the course of this MOU, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection. b. Sub-Recipient shall submit one (1) electronic copy of all Work Products associated with the Project to the assigned SCAG Project Manager. c. SCAG shall own all Work Products and may, at its sole discretion, grant to Sub-Recipient a perpetual royalty-free, non-assignable, non-exclusive and irrevocable license to reproduce, publish or otherwise use Work Products related to the Project and developed as part of this MOU; provided, however, that any reproduction, publishing, or reuse of the Work Products will be at Sub-Recipient’s sole risk and without liability or legal exposure to SCAG. 11. Amendments No amendment or variation of the terms of this MOU shall be valid unless made in writing and signed by the Parties. If an amendment is to become effective before the date of full execution by the Parties, the effective date of such amendment shall be no earlier than the date that SCAG received the request. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 281 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 10 12. Notices Any notice or notices required or permitted to be given pursuant to this MOU may be personally served on the other Party by the Party giving such notice, or may be served by certified mail, return receipt requested, to the following addresses: To SCAG: Cindy Giraldo Chief Financial Officer Southern California Association of Governments 900 Wilshire Blvd., Suite 1700 Los Angeles, CA 90017 (213) 630-1413 giraldo@scag.ca.gov SCAG reserves the right to change this designation. To Sub-Recipient: L. Todd Hileman City Manager City of Palm Desert 73510 Fred Waring Drive Palm Desert, CA 92260 760-776-6488 thileman@palmdesert.gov 13. Insurance a. Sub-Recipient, at their own expense, shall procure and maintain policies of insurance, or provide evidence of self-insurance, of the types and amounts below, for the duration of the MOU. The policies shall state they afford primary coverage. Insurance Type Requirements Limits General Liability Commercial General Liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01. Not less than $5,000,000 per occurrence, $10,000,000 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. Automobile Liability 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 Sub-Recipient arising out of or in connection with work to be performed under this MOU, including coverage for any owned, hired, non-owned, or rented vehicles, in an amount not less than $5,000,000 combined single limit for each accident. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 282 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 11 Workers’ Compensation/ Employer’s Liability Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. Not required for sole proprietors or Sub- Recipient with no employees. Including Occupational Diseases in accordance with California Law and Employers’ Liability Insurance with a limit of not less than $1,000,000 each accident. Professional Liability Insurance Professional Liability (Errors and Omissions) insurance appropriate to the Sub- Recipient’s profession. With limits of not less than $1,000,000 per occurrence. In addition, it shall be required that the professional liability insurance policy remain in effect for three (3) years after the Completion Date of this MOU. Builders Risk Upon commencement of construction and with approval of SCAG, Sub- Recipient shall obtain and maintain builder’s risk (course of construction) for the entire duration of the Project. Not required for Projects without construction. Sub-Recipient shall purchase and maintain property insurance written on a builder’s risk “Special Form Cause of Loss” or equivalent policy form in an amount not to exceed amount of the Contract, plus the cost of materials supplied or installed by others on a full replacement cost basis. The Builder’s Risk policy shall include a soft cost endorsement that covers soft costs equal to twenty percent (20%) of the Contract’s full value. Soft costs are defined as certain expenses, in addition to labor and materials, required to complete the Project that has been delayed due to unexpected physical damage and include, but are not limited to, the following: legal/accounting fees, design or other professional fees, financing costs, taxes, general administration, lease expenses, permit fees and insurance premiums. This insurance shall include the interests of the Additional Insureds as named below, Sub- Recipient and the subcontractors of every tier on the Project as insureds. The insurance shall cover without limitation, loss or damage to the Work arising from the perils covered under “Special Form Cause of Loss” form coverage including, without duplication of coverage for theft, fire, lightning, explosion, or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, false-work, testing and delay of startup, temporary buildings, property in transit and while stored at a temporary location, debris removal including demolition occasioned by enforcement of any applicable legal requirements, and shall cover reasonable Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 283 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 12 compensation for Sub-Recipient’s services and expenses required as a result of such loss. During the Project construction period, Sub-Recipient and its subcontractors shall mutually waive all rights of recovery against each other and against the Additional Insureds identified below for damages caused by fire or other perils covered by the Builders Risk “Special Form Cause of Loss” insurance. All applicable policies of insurance covering the Work or the property of the Sub- Recipient or subcontractor shall be endorsed to provide a waiver of subrogation in favor of the Additional Insureds identified below, Sub- Recipient and all subcontractors of every tier. Further, Sub-Recipient hereby releases, and shall cause its subcontractors to release, the Indemnitees identified in section 14 from any and all claims, losses and damages caused by fire or other perils covered by the Builders Risk “Special Form Cause of Loss” insurance. There shall be no deductible or self-insured retention exceeding $10,000.00 per loss, other than earthquake or flood which may have deductible or self-insured retentions not exceeding $50,000.00. The policy may have sublimits not less than the following: Earthquake $5,000,000.00 Flood $1,000,000.00 Pollution Liability Coverage shall provide for liability arising out of sudden, accidental, and gradual pollution, and remediation. Not required for Projects without construction. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. All activities contemplated in this MOU shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for remediation of the site in the event of an environmental contamination event arising out of the materials, supplies, products, work, operations, or workmanship. Products/Completed Operations Coverage Coverage shall extend a minimum of three (3) years after project completion. Not required for Projects without construction. 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. SCAG, its officials, officers, agents, and employees, shall be included as additional Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 284 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 13 insureds under the Products and Completed Operations coverage. b. Higher Limits: no representation is made that the minimum insurance requirements of this MOU are sufficient to cover the indemnity or other obligations of Sub-Recipient under this MOU. c. The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: i. SCAG, its officials, employees, and volunteers are to be covered as additional insureds, as respects to liability arising out of the activities performed by or on behalf of Sub-Recipient; products and completed operations of Sub-Recipient; premises owned, occupied or used by Sub- Recipient; or automobiles owned leased, hired or borrowed by Sub-Recipient. The coverage shall contain no special limitations on the scope of protection afforded to SCAG, its officials, and employees. ii. For any claims related to this Project, Sub-Recipient’s insurance coverage shall be primary insurance as respects SCAG, its officials, and employees. Any insurance or self-insurance maintained by SCAG shall be excess of Sub-Recipient’s insurance and shall not contribute with it. iii. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to SCAG, its officials, and employees. iv. Sub-Recipient’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. The Workers’ Compensation and Employer’s Liability policies shall include a waiver of subrogation endorsement in favor of SCAG, its, officials, employees, and volunteers. e. Any deductibles or self-insured retentions in amounts over $10,000 must be declared to and approved by SCAG. f. Insurance is to be placed with California admitted insurers with a current A.M. Best’s rating of no less than A and be admitted, unless otherwise approved by SCAG. g. Sub-Recipient shall furnish SCAG with original endorsements and certificates of insurance evidencing coverage required by this clause. All documents are to be signed by a person authorized by that insurer to bind coverage on its behalf. All documents are to be received and approved by SCAG before work commences. Upon request of SCAG at any time, Sub-Recipient shall provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications. h. Sub-Recipient agrees to ensure that its Consultant(s) provide the same minimum insurance coverage and endorsements required of Sub-Recipient. Sub-Recipient 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. However, in the event Sub-Recipient’s Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 285 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 14 Consultant(s) cannot comply with this requirement, which proof must be submitted to SCAG, Sub- Recipient shall be required to ensure that its Consultant(s) provide and maintain insurance coverage and endorsements sufficient to the specific risk of exposure involved with Consultant(s) scope of work and services, with limits less than required of the Sub-Recipient, but in all other terms consistent with the Sub-Recipient’s requirements under this MOU. This provision does not relieve Sub-Recipient of its contractual obligations under the MOU and/or limit its liability to the amount of insurance coverage provided by its Consultant(s). This provision is intended solely to provide Sub-Recipient with the ability to utilize Consultant(s) who may be otherwise qualified to perform the work or services but may not carry the same insurance limits as required of Sub - Recipient under this MOU given the limited scope of work or services provided by the Consultant(s). Sub-Recipient agrees that upon request, all agreements with Consultant(s) will be submitted to SCAG for review. 14. Indemnification Sub-Recipient shall fully defend, indemnify and hold harmless SCAG, its members, officers, employees, and agents from any and all claims, losses, liabilities, damages, expenses, suits or actions including attorneys’ fees, brought forth or arising under any theories or assertions of liability, occurring by or resulting from or otherwise related to the Project or this MOU. Such obligations shall not, however, extend to any claims, losses, liabilities, damages, expenses, suits, or actions that arise from SCAG’s gross negligence or willful misconduct. 15. Disputes Except as otherwise provided in this MOU, any dispute arising under this MOU which is not resolved by mutual agreement shall be decided through binding arbitration by a three (3) member panel in accordance with the rules of the American Arbitration Association and as provided in this provision. If this provision differs from the rules of the American Arbitration Association, then this provision shall control. Sub-Recipient shall continue with the responsibilities under this MOU during any dispute until the dispute is resolved. A judgment upon the award rendered by arbitration may be entered into any court having jurisdiction thereof. The arbitration panel shall have the authority to grant any remedy or relief that would have been available to the Parties had the matter been hear d in a court of law. Following arbitration, the arbitration panel shall prepare a written decision containing the essential findings and conclusions on which the award is based so as to ensure meaningful judicial review of the decision. All expenses and fees for the arbitrator and expenses for hearing facilities and other expenses of arbitration shall be borne equally by both Parties unless they agree otherwise or unless the arbitrator in the award assesses such expenses against one of the parties or alloca tes such expenses other than equally between the Parties. Either Party may bring an action in court to compel arbitration under this MOU and to enforce an arbitration award. 16. Noncompliance a. In the event of nonperformance or noncompliance with any requirement of this MOU, including but not limited to Project eligibility, schedule, deliverables, or milestone timelines, as outlined in the most current fully executed SOW Approval Form, SCAG may: Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 286 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 15 i. Issue a written notice to stop work. If such notice is provided, Sub-Recipient and its Consultant(s) shall immediately cease all work under the MOU. SCAG has the sole discretion to determine that Sub-Recipient is in compliance with the terms and conditions after a stop work order, and to deliver a written notice to Sub-Recipient to resume work under this MOU. ii. Require repayment of the Grant Funds. iii. Terminate this MOU pursuant to Section 17. b. Notwithstanding the provisions set forth above, or any other provision contained in this MOU, no remedy conferred by any of the specific provisions of this MOU or the SOW Approval Form, is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy existing at law or in equity or by statute or otherwise. 17. Termination of MOU a. Termination for Cancellation or Reduction in REAP 2.0 Funding. In the event HCD terminates or cancels funding to SCAG, this MOU is deemed to be terminated and SCAG shall be relieved of any and all obligations under this MOU as of the effective date of HCD’s termination. In the event HCD reduces funding to SCAG, SCAG shall have the unilateral right to stop work, proportionally reduce funding to Sub-Recipient or terminate this MOU. b. Termination for Convenience. Either Party may terminate this MOU at any time by giving written notice to the other party of such termination at least thirty (30) calendar days before the effective date of such termination. Should SCAG terminate the MOU for convenience, upon receipt of the notice of termination, Sub-Recipient shall immediately take action to avoid incurring any additional obligation costs or expenses except as may be necessary to terminate its activities or the activities of its Consultant(s). SCAG shall pay Sub-Recipient its reasonable and allowable costs through the effective date of termination and is not liable for any expenses after termination, including any costs associated with Consultant(s). In such event, all finished or unfinished Work Products shall be provided to SCAG. c. Termination for Cause. If through any cause, either Party shall fail to timely and adequately fulfill its obligations under this MOU, or if either Party violates any of the covenants, terms, or stipulations of this MOU, the non-breaching Party shall thereupon have the right to terminate the MOU by giving not less than ten (10) calendar days written notice to the breaching Party of the intent to terminate and specifying the effective date thereof. The non-breaching Party shall provide a reasonable opportunity for the breaching Party to cure prior to termination. In no event shall such opportunity to cure extend beyond the term of the MOU. In the event that SCAG invokes this termination for cause provision, Sub-Recipient shall reimburse SCAG for all funds provided for the Project and all finished or unfinished Work Products shall be provided to SCAG at its option. 18. Records Retention a. Sub-Recipient and its Consultant(s) shall maintain and make available, in accordance with Section 19 of this MOU, all source documents, books and records connected with the Project, documentation of its normal procurement policy and competitive procurement bid process and Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 287 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 16 completed procurements related to the Project, all work performed under this MOU, all evidence of environmental clearance, and evidence demonstrating the funding was used for the appropriate purposes for a minimum of five (5) years after December 31, 2026. Wherever practicable, such records should be collected, transmitted, and stored in open and machine-readable formats. b. If any litigation, claim, negotiation, audit, monitoring, inspection, or other action has been started before the expiration of the required record retention period, all records shall be retained and made available by Sub-Recipient and its Consultant(s) for five (5) years after: (a) the conclusion or resolution of the matter; (b) the date an audit resolution is achieved for each annual SCAG OWP; or (c) December 31, 2026, whichever is later. 19. Monitoring and Audits a. SCAG may monitor expenditures and activities of Sub-Recipient and its Consultant(s) as SCAG deems necessary to ensure compliance with the MOU, the Statutes, the REAP 2.0 Guidelines and the Program Guidelines. b. At any time during the term of this MOU, SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives may perform or cause to be performed a financial audit of any and all phases of the Project. At their request, Sub-Recipient shall provide, at its own expense, a financial audit prepared by an independent certified public accountant. c. Sub-Recipient agrees that SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives shall have the right to review, obtain, and copy all records and supporting documentation related to the performance of this MOU. Sub-Recipient agrees to provide any relevant information requested. Copies shall be made and furnished to SCAG upon request at no cost to SCAG. d. Sub-Recipient agrees to permit SCAG, HCD, the California Department of General Services, the California Bureau of State Audits, or their designated representatives access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this MOU, the Statutes, the REAP 2.0 Guidelines, or applicable state and federal laws, rules, and regulations. e. If there are audit findings from SCAG or HCD’s audit, Sub -Recipient must submit a detailed response acceptable to SCAG or HCD for each audit finding within ninety (90) days of the audit finding report. 20. Small Business and Disabled Veteran Business Enterprise Participation a. If for this MOU Sub-Recipient made a commitment to achieve small business participation, then Sub-Recipient must within 60 days of receiving final payment under this MOU (or within such other time period as may be specified elsewhere in this MOU) report to SCAG the actual percentage of small business participation that was achieved. (Gov. Code § 14841.) Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 288 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 17 b. If for this MOU Sub-Recipient made a commitment to achieve disabled veteran business enterprise (“DVBE”) participation, then Sub-Recipient must within 60 days of receiving final payment under this MOU (or within such other time period as may be specified elsewhere in this MOU) certify in a report to SCAG: (1) the total amount the Sub-Recipient received under the MOU; (2) the name and address of the DVBE(s) that participated in the performance of the MOU; (3) the amount each DVBE received from the Sub-Recipient; (4) that all payments under the MOU have been made to the DVBE; and (5) the actual percentage of DVBE participation that was achieved. A person or entity that knowingly provides false information shall be subject to a civil penalty for each violation. (M&V Code § 999.5(d); Gov. Code § 14841.) 21. Compliance with Laws, Rules, and Regulations a. Sub-Recipient agrees to comply with all federal, state, and local laws, rules, and regulations applicable to this MOU. b. Non-Discrimination/Equal Employment Opportunity i. During the performance of this MOU, Sub-Recipient assures that no person shall be denied the MOU’s benefits, be excluded from participation or employment, be denied Project benefits, or be subjected to discrimination based on race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, under the Project or any program or activity funded by this MOU, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 U.S.C. §§ 3601-20) and all implementing regulations, the Americans with Disabilities Act (“ADA”) of 1990 (42 U.S.C. §§ 12101 et seq.) and all applicable regulations and guidelines issued pursuant to the ADA, and the Age Discrimination Act of 1975 and all implementing regulations. Sub-Recipient shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination. ii. Sub-Recipient shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code § 12900 et seq.), the regulations promulgated thereunder (Cal. Code Regs. tit. 2, § 11000 et seq.), the provisions of Article 9.5, Chapter 1, Part 1, Division 3, Title 2 of the Government Code (Gov. Code §§ 11135-11139.5), and the regulations or standards adopted by HCD to implement such article. iii. Sub-Recipient shall permit access by representatives of the Department of Fair Employment and Housing, SCAG, and HCD upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours’ notice, to such of its books, recor ds, accounts, and all other sources of information and its facilities as the Department of Fair Employment and Housing, SCAG, or HCD shall require to ascertain compliance with this Section. iv. Sub-Recipient shall give written notice of its obligations under this Section to labor organizations with which they have a collective bargaining or other agreement. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 289 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 18 v. Sub-Recipient shall adopt and implement affirmative processes and procedures that provide information, outreach, and promotion of opportunities in the Project to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability. This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 C.F.R. § 92.351. c. Recycling Certification. Sub-Recipient shall certify in writing under penalty of perjury, the minimum, if not exact, percentage of post-consumer material as defined in the Public Contract Code Section 12200, in products, materials, goods, or supplies offered or sold to SCAG regardless of whether the product meets the requirements of Public Contract Code Section 12209. With respect to printer or duplication cartridges that comply with the requirements of Section 12156(e), the certification required by this subdivision shall specify that the cartridges so comply (Pub. Contract Code § 12205). d. Anti-Trust Claims. Sub-Recipient, by signing this MOU, hereby certifies that if these services or goods are obtained by means of a competitive bid, the Sub-Recipient shall comply with Title 1, Division 5, Chapter 11 of the California Government Code (Gov. Code §§ 4550-4554). e. Child Support Compliance Act. If the Grant Funds provided under this MOU are in excess of $100,000, Sub-Recipient acknowledges in accordance with Public Contract Code 7110, that: i. Sub-Recipient recognizes the importance of child and family support obligations and shall fully comply with all applicable state and federal laws relating to child and family support enforcement, including, but not limited to, disclosure of information and compliance with earnings assignment orders, as provided in Chapter 8 (commencing with Section 5200) of Part 5 of Division 9 of the Family Code; and ii. Sub-Recipient, to the best of its knowledge is fully complying with the earnings assignment orders of all employees and is providing the names of all new employees to the New Hire Registry maintained by the California Employment Development Department. f. Priority Hiring Considerations. If this MOU includes services in excess of $200,000, the Sub- Recipient shall give priority consideration in filling vacancies in positions funded by the MOU to qualified recipients of aid under Welfare and Institutions Code Section 11200 in accordance with Pub. Contract Code §10353. g. Loss Leader. If this MOU involves the furnishing of equipment, materials, or supplies then the following statement is incorporated: It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code. (PCC § 10344(e).) 22. Public Works and Construction Without limiting the generality of Section 21.a., Sub-Recipient agrees to ensure compliance with all applicable legal authority regarding construction standards and requirements, including but not limited to the following: Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 290 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 19 a. Labor Code Requirements i. Sub-Recipient is hereby put on notice that the Project under the MOU may qualify as a public works project and Sub-Recipient will therefore be required to determine whether the Project falls under a classification that would require payment of prevailing wages. Services constituting public works are described in California Labor Code Sections 1720-1861, as may be amended or recodified by legislative action from time-to-time. ii. If a Project qualifies as a public works project, Sub-Recipient shall be the Awarding Body for the public works project and required to comply with all requirements applicable to the Awarding Body. iii. If Sub-Recipient or its Consultant(s) will perform services that require payment of prevailing wages, they are required to register with the California Department of Industrial Relations (DIR) in order to be compliant with the law. Neither Sub-Recipient nor its Consultant(s) may work on a public works project without a current and active DIR registration. iv. In the event that Sub-Recipient or its Consultant(s) engages in the performance of a public work under this MOU as defined by Labor Code Section 1770 et seq., Sub-Recipient and its Consultant(s) shall be required to cause such employees who are entitled to prevailing wages, to be paid the required wage amounts pursuant to applicable state law. Sub-Recipient and its Consultant(s) shall ensure compliance with the State of California’s General Prevailing Wage Rate requirements in accordance with California Labor Code, Section 1770, and all Federal, State, and local laws and ordinances applicable to the work. v. Sub-Recipient further acknowledges that any work that qualifies as a public work within the meaning of California Labor Code Section 1720 shall require Sub-Recipient and its Consultant(s) to comply with the provisions of California Labor Code Sections 1775 et seq. Sub-Recipient agrees to ensure compliance with Labor Code Section 1776 regarding retention and inspection of payroll records and noncompliance penalties, Labor Code Section 1777.5 regarding employment of registered apprentices, and Labor Code Section 1813 regarding forfeiture for violations of the maximum hours per day and per week provisions contained in the same chapter. b. Sub-Recipient shall comply with all applicable federal, state, and local procurement requirements for public works and construction projects and shall advertise, open bids, award, and approve all construction contracts in accordance with the California Public Contract Code and the California Labor Code. c. All construction contracts for the Project shall be administered and managed by Sub-Recipient. Sub-Recipient shall prepare or have prepared a detailed schedule of performance for the Project, ensuring that all construction is completed within the timeline allowed by the MOU. Sub-Recipient shall be responsible for requiring the construction contractor to furnish any applicable labor and material bonds and payments and performance bonds naming the Sub-Recipient as obligee, and SCAG as additional obligee, or an insurance policy in lieu of such bonds. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 291 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 20 d. Sub-Recipient agrees to procure any and all permits, licenses and approvals necessary to complete the Project, including those necessary to perform design, construction, operation and maintenance, and to comply with all California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) requirements applicable to the Project. Sub-Recipient shall pay all charges and fees and give all notices necessary or incidental to the Project. e. Sub-Recipient shall prepare, or have prepared, all plans, specifications and estimates for the Project and ensure that the Project complies with all applicable federal and state accessibility requirements, including but not limited to the Americans with Disabilities Act, including its implementing regulations at 24 CFR Part 8 and any amendments, and California Government Code Section 4450, and applicable requirements and guidance provided in Title 24 of the California Code of Regulations, for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. f. Sub-Recipient shall conduct all necessary due diligence for the Project, including but not limited to performing necessary environmental assessments/review of environmental hazard reports, conducting engineer/geotechnical review, commissioning title reports to identify and evaluate the condition of title and encumbrances on the subject property, including but not limited to any covenants conditions and restrictions, determining the entity(ies) with site control, including whether any third parties have ownership or site control rights, and determining the suitability for the Project. g. Sub-Recipient shall ensure any contractors or subcontractors are paid in accordance with applicable laws and regulations. h. Sub-Recipient shall comply with the procedure set forth in Public Contracts Code Section 9204 for processing contractor claims, paying undisputed amounts, and requiring mediation of disputed amounts. i. Sub-Recipient shall be responsible for ensuring ongoing maintenance of the Project after completion. SCAG shall not be responsible for ongoing maintenance of the Project after completion. 23. Conflict of Interest The Parties shall comply with all applicable Federal and State conflict of interest laws, regulations, and policies. 24. Independent Contractor Sub-Recipient and its Consultant(s) shall be independent contractors in the performance of this MOU, and not officers, employees, or agents of SCAG. 25. Assignment Neither Party shall assign any rights or interests in this MOU, or any part thereof, without the written consent of each Party to this MOU, which consent may be granted, withheld, or conditioned in the consenting Party’s sole and absolute discretion. Any assignment without such written consent shall be Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 292 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 21 void and unenforceable. The covenants and agreement of this MOU shall inure to the benefit of and shall be binding upon each of the Parties and their respective successors and assignees. 26. Release of Information a. Subject to any provisions of law, including but not limited to the California Public Records Act, any Work Product or materials deemed confidential by either Party shall be held confidential by the receiving Party who shall safeguard such confidential materials from unauthorized disclosure, using the same standard of care to avoid disclosure as the receiving Party treats its confidential information, but in no case less than reasonable care. Nothing furnished to either Party which is otherwise known or is generally known, or has become known, to the related industry shall be deemed confidential. b. Sub-Recipient shall not release any information or Work Products to a third party or otherwise publish or utilize any information or Work Products obtained or produced by it as a result of or in connection with the performance of services under this MOU without the prior written authorization of SCAG, except as provided under this MOU or as required by law (including, without limitation, pursuant to the California Public Records Act). c. All public-facing communications materials relating to this MOU, or its subject matter, shall acknowledge SCAG. Communications materials include, but are not limited to, site signage, printed information materials, print and online publications, websites, advertisements, video, public service announcements, social media postings, events, media advisories, news releases, and all other related materials. d. To ensure consistency of public information about SCAG programs and funded work products, Sub-Recipient is required to notify and coordinate with SCAG Project Manager who will coordinate with SCAG’s Manager of Media & Public Affairs or a specified designee on any media inquiries or plans for proactively providing information to media outlets. e. All communication materials must be provided to SCAG Project Manager prior to completion so that inclusion of this element can be confirmed. 27. Non-Exclusivity Nothing herein is intended nor shall be construed as creating an exclusive arrangement between SCAG and Sub-Recipient. This MOU shall not restrict SCAG from acquiring similar, equal or like services from other entities or sources. 28. Severability If any provision of this MOU is held to be illegal, invalid, or unenforceable, in whole or in part, such provision shall be modified to the minimum extent necessary to make it legal, valid, and enforceable, and the legality, validity, and enforceability of the remaining provisions shall not be affected thereby. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 293 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 22 29. Survival The following sections survive expiration or termination of this MOU: Section 5 (Funding) Section 10 (Work Products) Section 12 (Notices) Section 13 (Insurance) Section 14 (Indemnification) Section 15 (Disputes) Section 18 (Records Retention) Section 19 (Monitoring and Audits) Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction) Section 23 (Conflict of Interest) Section 26 (Release of Information) Section 31 (Jurisdiction and Venue) Section 32 (Waiver) 30. Flow-Down Provisions Sub-Recipient shall include the following provisions in all agreements entered into containing funds provided under this MOU, require the provisions below that survive expiration or termination of this MOU to survive, and shall include a requirement in all agreements that each of them in turn include the requirements in all contracts and subcontracts they enter into to perform work under the Project. SCAG does not have a contractual relationship with Sub-Recipient’s Consultant(s), and Sub-Recipient shall be fully responsible for monitoring and ensuring compliance with these provisions. Section 3.c. (Scope of Work and Sub-Recipient’s Responsibilities – nexus to REAP 2.0) Section 3.e. – 3.g. (Scope of Work and Sub-Recipient’s Responsibilities – procurements) Section 3.k. (Scope of Work and Sub-Recipient’s Responsibilities – penalty of perjury) Section 5.e. (Funding – repayment of ineligible costs) Section 6 (Invoices) Section 7 (Reporting) Section 8 (Accounting) Section 9 (Allowable Uses of Grant Funds) Section 10 (Work Products) Section 13 (Insurance) Section 14 (Indemnification) Section 18 (Records Retention) Section 19 (Monitoring and Audits) Section 20 (Small Business and Disabled Veteran Business Enterprise Participation) Section 21 (Compliance with Laws, Rules, and Regulations) Section 22 (Public Works and Construction) Section 23 (Conflict of Interest) Section 24 (Independent Contractor) Section 25 (Assignment) Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 294 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 23 Section 26 (Release of Information) Upon SCAG’s request, Sub-Recipient shall provide SCAG a copy of any such agreement. 31. Jurisdiction and Venue This MOU shall be deemed an agreement under the laws of the State of California and for all purposes shall be interpreted in accordance with such laws. Subject to the provisions in Section 15, the Parties hereby agree and consent to the exclusive jurisdiction of the courts of the State of California and that the venue of any action brought thereunder shall be Los Angeles County, California. 32. Waiver No delay or failure by either Party to exercise or enforce at any time any right or provision of this MOU shall be considered a waiver thereof of such Party’s right thereafter to exercise or enforce each and every right and provision of this MOU. A Waiver to be valid shall be in writing but need not be supported by consideration. No single waiver shall constitute a continuing or subsequent waiver. 33. Standard of Care Sub-Recipient and its Consultant(s) shall perform the work required for the Project under this MOU in accordance with generally accepted industry standards, practices, and principles applicable to such work. 34. Force Majeure Neither Party shall be liable or deemed to be in default for any delay or failure in performance under this MOU or interruption of services resulting, directly or indirectly, from acts of nature, civil or military authority, acts of public enemy, war, strikes, labor disputes, pandemics, or any other similar cause beyond the reasonable control of the Parties, provided that the Party seeking to delay or excuse its performance as a result of such event shall notify the other Party in writing of such circumstances within not more than ten (10) days following the first occurrence of the event forming the basis of the delay or excuse of performance. In the event that the Party seeking to delay or excuse its performance fails to timely deliver the notice described in the previous sentence, then such event shall not relieve the Party from its timely performance. 35. Entire MOU This MOU, comprised of these terms and conditions, the attached exhibits, and any properly executed amendments, represents and contains the entire agreement of the Parties with respect to the matters set forth herein. This MOU supersedes any and all prior negotiations, discussions and, if any, previous agreements between the Parties with respect to the matters set forth herein. 36. Execution This MOU, or any amendments related thereto, may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 295 MOU No. : M-035-25 SCAG Project/OWP No.: 305-4925.01 Page 24 The signature page of this MOU or any amendments may be executed by way of a manual or authorized digital signature. Delivery of an executed counterpart of a signature page to this MOU or an amendment by electronic transmission scanned pages shall be deemed effective as a delivery of a manually or digitally executed counterpart to this MOU or any amendment. 37. Effective Date This MOU shall be effective as of the last date on which the document is executed by all Parties. 38. Authority Sub-Recipient warrants and certifies that it possesses the legal authority to execute this MOU and to undertake the Project, and, if applicable, that a resolution, motion, or similar action has been fully adopted or passed, as an official act of Sub-Recipient's governing body, authorizing receipt of the Grant Funds, and directing and designating the authorized representative(s) of Sub-Recipient to act in connection with the Project and to provide such additional information as may be required by SCAG. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 296 SIGNATURE PAGE TO MEMORANDUM OF UNDERSTANDING No. M-035-25 IN WITNESS WHEREOF, the Parties have caused this Memorandum of Understanding to be executed by their duly authorized representatives as of the dates indicated below: SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (“SCAG”) By: _______________________________________________ _________________ Cindy Giraldo Date Chief Financial Officer APPROVED AS TO FORM: By: _______________________________________________ _________________ Richard Lam Date Senior Deputy Legal Counsel CITY OF PALM DESERT (“Sub-Recipient”) By: _______________________________________________ _________________ L. Todd Hileman Date City Manager APPROVED AS TO FORM: By: _______________________________________________ _________________ Isra Shah Date City Attorney Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 3/17/2025 3/17/2025 3/18/2025 3/18/2025 297 Exhibit A – Scope of Work    Project Name: Flood Control Infrastructure for Housing Need    Project Description:  The project will expand the City’s utility capacity to mitigate future severe flooding that could damage  ongoing developments and existing affordable housing infrastructure along the I‐10 corridor and the  project site, which covers approximately 6.5 linear miles along Interstate 10. The project includes a  match of $6.5 million to fully acquire all the proposed lots which will house the proposed flood control  measures. Planned improvements include design and construction of the following elements:  stormwater conveyance systems, flood control barriers, retention and detention basins, and stormwater  parks.     Final Deliverable:      Site Acquisition Executed Agreements   100% Design Plans, Specifications, and Cost Estimates   Final Environmental Clearance   Project Construction Monthly Reports   Survey and written summary of visual inspection   Notice of Completion    Project Budget: $8,000,000    Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 298 Exhibit B – Scope of Work Approval Form Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program] Scope of Work Approval Form - Project Summary 1 Subrecipient: [Grantee Name] Project #1: [Project Name] ☒ Original Scope of Work Approval ☐ Revision Requested to Add, Remove, or Change Project Manager ☐ Revision Requested to Project Tasks (Please check all that apply) ☐ Revise/Delete a Previously Approved Task ☐ Revise Task Budget ☐ Change Project/Task Date ☐ Change in Deliverable (Interim) ☐Other (Please describe) SCAG Approval Date: ___________________________ Revision No. NUMBER Revision Effective Date: _________________________ Original Approved Summary of Projects Tasks (approved on DATE) Project/Activity Tasks Outline Task and sub- tasks Staff Costs Consultant Costs Total Costs Begin Date End Date Deliverables 1.0 Project Administration 2.0 Project Management 3.0 [task name] Total Project Cost Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 299 Exhibit B – Scope of Work Approval Form Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program] Scope of Work Approval Form - Project Summary 2 Requested Revisions to Project Tasks If a revision is requested, please also update the project/activity task outline(s) below and highlight the changes. Revised Project/Activity Tasks Outline Task and sub- tasks Staff Costs Consultan t Costs Total Costs Begin Date End Date Deliverables Total Project Cost Route all budget changes to Accounting and B&G. Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 300 Exhibit B – Scope of Work Approval Form Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program] Scope of Work Approval Form - Project Summary 3 Signatures below to approve revisions also indicate approval of any modifications to subsequent pages. Revision Approval Requested By: Revision Approved By: Project Manager SCAG Department Manager Name / Title Name / Title _____________________________________ ______________________________________ Signature Date Signature Date Revision Approved By: SCAG Deputy Director or Authorized Designee Name / Title ________________________________________ Signature Date Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 301 Exhibit B – Scope of Work Approval Form Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program] Scope of Work Approval Form - Project Summary 4 Project Metrics Each REAP 2.0 project requires metrics to quantitatively measure the project’s outcome. Project metrics selected on this form will be included in the REAP 2.0 SRP2 quarterly progress reporting form. Please select all metrics that will apply to your approved projects: 1. Sample ☐ Sample Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 302 Exhibit B – Scope of Work Approval Form Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program] Scope of Work Approval Form - Project Summary 5 1 [name of grantee: project name] _____ (Insert Number of) Procurements Expected for this Project Brief Description of Project: (Pulled from project application) Revision Summary: Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 303 Exhibit B – Scope of Work Approval Form Regional Early Action Planning Grants of 2021 (REAP 2.0) [Full name of program] Scope of Work Approval Form - Project Summary 6 Signatures on this page indicate approval of the initial Scope of Work Approval Form in its entirety. Revisions do not require new signatures in this section. Initial SAF Approved By: Initial SAF Approved By: SRP2 Project Manager SCAG Department Manager Name / Title Name / Title _____________________________________ ______________________________________ Signature Date Signature Date Initial SAF Approved By: SCAG Deputy Director or Authorized Designee Name / Title ________________________________________ Signature Date Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 304 Exhibit C Invoice Submittal Requirements SCAG will provide the Sub-Recipient an Invoice Template in Excel file format. The Invoice Template must be used to request reimbursement from SCAG. Detailed submittal instructions for filling out and submitting are provided in the Invoice Template. The Invoice Template may be amended from time to time and does not guarantee that any invoices will be approved or that the Sub-Recipient will receive payment. The Invoice Template will require information and supporting documentation such as, but not limited to: a. SCAG’s “Bill To” information as stated in the above paragraph “b.” of this section; b. Invoice number specified by the Sub-Recipient. The invoice number must be unique for each invoice submitted; c. Invoice date; d. Billing period specified with beginning and ending dates. The beginning date must not be sooner than the MOU Effective Date of the Agreement, or within any previous billing dates; e. Total amount due for the billing period; f. MOU Number, SCAG Project/OWP Number, and the MOU Term Date; g. Project Title; h. Agency Name, Agency Project Manager Name, and Project Manager Email Address; and i. SCAG Project Manager Name. j. Progress report k. Cost by task and/or cost category l. Detailed description of Other Direct Charges m. Proof of payment n. Timesheets o. Payroll report/Payroll registers Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 305 Exhibit D – Sub-Recipient Report Template PENDING GUIDANCE FROM HCD Docusign Envelope ID: 72F9BDCB-589F-47DB-B3A8-B44505892E42 306 GERALD FORD DR CO O K S T GERA L D F O R D D R TECHNOLOGY DR COL L E G E D R Copyright nearmap 2015 Cook Street and Gerald Ford Improvements I VICINITY MAP DESIGN AND CONSTRUCT DESIGN ONLY 307 308 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Shawn Muir, Community Services Manager SUBJECT: AMENDMENT NO. 3 TO CONTRACT NO. C39690 – LEASE AGREEMENT WITH THE DESERT RECREATION DISTRICT TO FINALIZE NECESSARY BUILDING IMPROVEMENTS AT PALM DESERT COMMUNITY CENTER AND ADOPT AMORTIZATION SCHEDULE RECOMMENDATION: 1. Approve Amendment No. 3 to Contract No. C39690 amending the lease agreement with the Desert Recreation District for the Palm Desert Community Center. 2. Authorize the City Attorney to make non-monetary changes to the amendment. 3. Authorize City Manager to execute said amendment upon approval by the City Attorney. BACKGROUND/ANALYSIS: Since 2016, the City of Palm Desert (City) and Desert Recreation District (DRD) have been working to update and improve the Palm Desert Community Center, located at 43900 San Pablo Avenue. The City owns the facility, and DRD operates it according to a lease a greement effective January 1, 2020. In June 2023, the City Council approved Amendment No. 1 to the lease agreement, authorizing a Tenant Improvement Allowance to fund DRD’s required improvements. The amendment also established a bi-annual lease payment to recover costs plus interest associated with the allowance and extended the lease term to 35 years to accommodate repayment . The project was originally scheduled for completion in October 2024 but was delayed until January 2025 due to additional inspection requirements from the Fire Marshal. On February 27, 2025, the City Council approved Amendment No. 2 extending the deadline for DRD’s final reimbursement request to April 1, 2025. DRD missed the deadline and instead submitted its request on June 26, 2025. Despite the delay, the repayment schedule began as planned on July 1, 2025. DRD has requested that the City contribute additional funds for improvements that fall under the City’s maintenance responsibilities. The original scope of services was estimated at $35,000; however, this amount inadvertently excluded the City’s full project costs, which total $373,659. These costs cover foundation and civil work, including concrete, ADA compliance, demolition, and related repairs. A formal request to cover the complete City-related costs was submitted in a letter dated July 1, 2025 (attached). 309 City of Palm Desert Amendment No. 3 to DRD Lease Agreement Page 2 of 2 The City Council's approval of the proposed Amendment No. 3 will result in:  An updated amortization schedule for DRD’s repayment of improvement costs (excluding the additional City related work); and  Inclusion of a Final Project Close-Out Acknowledgement to be signed by DRD, which will: o Confirm all contracted improvements under IFB# 23-05-001-PW were completed to the satisfaction of the District; o Accept the quality and scope of work as final and complete; and o Acknowledge that no further disbursement requests will be made under the Tenant Improvement Allowance. All other terms of the lease will remain unchanged. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: The change in lease terms will include an update to the lease payment from DRD in accordance with the agreed-upon terms, reducing the amount for City related work totaling $373,659. Description Amount Original Estimate/Project NTE Approved $12,500,000 2 (C/O’s & Time) Amendment No. 3 (this request) ($373,659) Final Amount Due for TI’s $6,898,085 The improvements at the Palm Desert Community Center qualify for the intended use and reimbursement of funds pursuant to the Bond Proceeds Funding Agreement. Therefore, these costs have no impact to the General Fund. ATTACHMENTS: 1. C39690 Executed Lease Agreement 2. Amendment No. 1 3. Amendment No. 2 4. DRD Request Letter 5. Proposed Amendment No. 3, including final Amortization Schedule 310 CI Y 0 P M DES R 73—t o FKr:t V6 nkixc; Uk vF: Pn.ti D srtcr, C,i.r<K, 92a6o—z578 TF•.I.: 7G0 34G—oGr infu,c'i[yofpalmdcsrrt.ur, January 13, 2020 Mr. Kevin Kalman General Manager Desert Recreation District 45305 Oasis Street Indio, California 92201 Dear Pd+i: rJ a Subject: Contract No. C39690 - Lease Aareement for the Palm Desert Communitv Center Buildinq Located at 43900 San Pablo Avenue (APN 622-250-0161 At its regular meeting of December 12, 2019, the Palm Desert City Council, by Minute Motion, authorized: 1) Mayor to execute subject Lease Agreement befinreen the City of Palm Desert and Desert Recreation District; 2) City Attorney to make non-substantive changes to the Agreement prior to final execution. Enclosed is a fully executed Lease Agreement for your records. If you have any questions or require additional information, please do not hesitate to contact us. Sincerely, RACHELLE D. KLASSEN, MMC CITY CLERK RDK/mgs Enclosure (as noted) cc/enc: Ryan Stendell, Director of Community Development Finance Department iJ' , .,,_,a•:> 311 CONTRACT N0. C39690 LEASE AGREEMENT THIS LEASE AGREEMENT ("Lease") is entered into as of January 1, 2020 ("Term Commencement Date"), hy and between the CITY OF PALM DESERT, a California municipal corporation ("Lessor") and the DESERT RECREATION DISTRICT, a California special district Lessee"). L,essor and Lessee are sometimes referred to individually as "Party" and collectively as Parties." RECITAI,S WHEREAS, Lessee previously owned certain real property in the City of Palm Desert, California, cansisting of two (2) parcels of approximately thirty two (32) acres, including a recreation building and other improvements ("District Property"); and, WHEREAS, the City or Palm Desert and the former Redevelopment Agency own a civic center site of approximately sixty three (63) acres on the northeast corner of Fred Waring Drive and San Pablo Avenue ("Civic Center Property"); and, WHEREAS, pursuant to an Exchange Agreement and Transfer lnstructions dated October 13, 1988, an Agreement for Cooperation dated October 13, 1988, and a Lease Agreement dated 1990, Lessee conveyed District Property to Lessor as consideration for the continued lease of operational facilities for Lessee on the Civic Center Property and a long term lease of a community recreation building constructed by Lessor for Lessee on the Civic Center Property ("Palm Desert Community Center"); and, WHEREAS, the leased premises are located at 43900 San Pablo Avenue, Palm Desert, California 92260 ("Premises"), as legally described in Exhibit "A" attached hereto and incoiporated herewith, and include all improvements located thereon, including capital improvements to the Premises as of the Term Commencement Date and as added or upgraded pursuant to the provisions of this Lease, including the City Improvements a5 defined in Section 5.2, along with the existing recreation building with dressing and activity rooms, reception area, storage, other usable space, and associated landscaping ("Improvemen[s"); and, WHEREAS, the Parties now wish to provide for the amendment and extension of their previous lease agreement and address future improvements and ongoing repairs to the Premises on the terms and conditions set forth in this L.ease; and, WHEREAS, upon the terms and conditions set forth hereinafter, Lessor desires ta lease the Premises to Lessee, and Lessee desires to lease the Premises from Lessor for the specific use and purpose of providing a recreation center("Specific Use"); and, NOW THLRLFOR, in consideration of the above recitals anci of the mulual covenants hereinafter contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 72 00.0091 G 32481443.I 1- 312 CONTRACT NO. C39690 ARTICLE 1 TERM OF LEASE 1.1 Term. The "Term" of this Lease shall be twenty-five (25) years, commencing on January 20, 2020 (the "Term Commencement Date") with an option to renew the Lease at the Parties' mutual discretion for five (5), five (5)-year terms, unless terminated earlier by Lessor or Lessee (subject to terms herein). 1.2 Date of Lease and Legal Effect. The terms, covenants, and conditions of this Lease shall become legally binding on the Term Commencement Date. 1.3 Termination. The Parcies may not terminate this L.ease during the first twenty five (25) years of the Term or during any of the five (5)-year renewals. With a minimum six (6) months' notice either Party may terminate this Lease prior to any subsequent renewal date. This provision shall not apply in the event of a breach of the Lease or the mutual written agreement of the Parties. ARTICLE 2 RENT 2.1 Base Rent. During the term of this L.ease, Lessee shall pay to I.essor for each year from the Term Commencement Date One Dollar ($1.00) ("Base Rent"). The Base Rent owing for lhe full term of the Lease shall be payable in advance of the Term Commencement Date. ARTICLF, 3 USE OF PREMISES AND COMPLIANCE WITH I,AW 3.1 Use and Continuous Operation Covenant. Lessor's primary purpose for entering into this Lease is to provide for the operation of the Premises for the general public for the usual and customary services and facilities provided by the Desert Recreation District, including athletic facilities, recreational programs, and activities. Lessee shall routinely report to the City of Palm Desert's Parks and Recreation Commission at its regular meetings, but not less than once a year, a schedule of the availability of all facilities and of all programs and activities to be conducted on the Premises, including the time, date, and duration of such programs and activities. The concept of wholesome, affordable family recreation shall be promoted. Should the Lessee wish to substantially change programs and activities available at the facility, Lessee will provide Lessor an explanation of the changes desired and agrees to meet and confer with Lessor with the goal of mitigating any Lessor concerns regarding those desired changes. 3.2 Fees and Char The Lessee shall be responsible for setting fees and charges for participation in its various programs and activities conducted on the Premises or for use of the Premises provided. lt is the Lessor's and Lessee's goal to permit participation by all socio-economic groups in the programs and activities conducted on the Premises. Reasonable cost of operation shall include, but not be limited to, all direct or indirect costs, such as overhead and amortization of capital improvements as otherwise allowed by law. The Lessee's schedule of fees under this Section 3.2 shali be submitted to the Lessor for prior written approval and any substantial changes to or 7zsoo.ar ie?ax iaa3.i 2- 313 CONTRACT NO. C39690 deviations from such schedule thereafter must be approved in writing by the Lessor.essor's consent to any fees or charges will not be unreasonably withheld. 3.3 Reports and Records. The Lessee shall maintain accurate records of the costs and revenues associated with operation of the Premises and the various programs and activities conducted on the Premises. Such records shall be available to Lessor for inspection upon request. 3.4 Parkin. The Lessor shall make available and maintain at acceptable standards sufficient public parking to serve the Premises within the Palm Desert Civic Center area, specifically including handicapped and bicycle parking. Lessee acknowledges it does not have exclusive use of the entire parking area. 3.5 Compliance with Law. Except as otherwise provided in Section 3.5.1 and Article 5 hereof as Lessee's specific obligations, L,essee, at Lessee's expense, shall promptly comply with all present and future laws, ordinances, orders, rules, regulations, and requirements of all governmental authorities having jurisdiction affecting the Premises (or the cleanliness, safety, occupancy, and use of the same), whether or not any such law, ordinance, order, rule, substantial or unforeseen, or ordinary or extraordinary, or shall necessitate structural changes of the Improvements or interfere with the u e and enjoyment of the Premises. lf any governmenlal license or permit shall be required for the proper and lawfiil conduct of the Premises, Lessee shall procure and thereafter maintain such license or permit at its sole cost and expense and shall submit the same for inspection by Lessor. 3.5.1 Notwithstanding the provisions of Section 3.5, the Parties acknowledge that the Premises require a new roof and HVAC system, and repair of the Foundation. Lessor will be responsible for the cost of such major repairs, as provided in Article 5, below. The provisions of Section 3.5 shall not be construed to require Lessee to make those City Improvements at its expense. 3.6 Hazardous Substances. Lessee shall ensure that there shall not be kept, used, or sold in, upon or about the Premises any hazardous or toxic materials, chemicals, gasoline, petroleum distillate or other petroleum products, or any other substance or material of any explosive, infla nmable, hazardous, toxic, or radioactive nature which may endanger or damage any part of the Premises, its occupants or invitees, or present any unusual fire, explosion or other damaging or dangerous hazard, or present the possibility of contamination by toxic or hazardous waste. 3.7 Nondiscrimination. Lessee covenants and agrees for itself, its agents and assigns, and all persons or entities claiming under or through it and this Lease is made and accep[ed upon and subject to the following conditions: That there shall be no discrimination against or segregation of any person, or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12936.1, subdivision (m) and paragraph (1) of subdivision p) of Section 12955 and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the Premises nor shall the Lessee, itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy, of lessees, sublessees, sublessee or vendees in the Premises. 72500.00916L32481443.{ 3- 314 CONTRACT NO. C39690 3.8 Liens. Lessee shall keep the Premises, including the Improvements, and the urn ture, fixtures and equipment ("FF&E") and any and all parts thereof, free from any and all liens arising out of any work performed, materials furnished or obligations incurred by or for Lessee, and agree to cause to be discharged of record any mechanics' or materialmen's lien within twenty (20) calendar days after the lien has been fled or within ten (10) calendar days after receipt of written request from Lessor, whichever shall be the sooner. Lessee shall give Lessor at least fifteen (15) calendar days written notice prior to commencing or causing to be commenced any work on the Premises (whether prior or subsequent to the commencement of the Term), so that Lessor shall have reasonable opportunity to file and post notices of non-responsibility for Lessee's work. Lessor• may condition its consent to work upon Lessee posting lien and material and/or completion bonds in amounts as may be necessary to cover the anticipated cost of such work and potential overruns. Lessee shall reimburse I.essor for any and all costs and expenses which may be incurred by Lessor by reason of the filing of any such liens and/or removal of same, such reimbursement to be made within ten (]0) calendar days after receipt by Lessee from Lessor of a statement setting forth the amount of the costs and expenses. 3.9 CASp Disclosure. L,essee caused the Premises to be inspected by a Certified Access Specialist ("CASp") (as defined in California Civil Code section 1938) in 2011 and will cause an additional inspection during 2019. ARTICLE 4 OWNERSHIP OF IMPROVEMENTS During the Term of this Lease, all Improvements and FF&E that are provided by Lessee or purchased or paid for by Lessee shatl remain the property of Lessee. During the Term of this Lease, all Improvements and FF&E that are provided by Lessor or purchased or paid for by Lessor sh ll remain the property of Lessor. ARTICLE 5 EXPENSES AND IMPROVEMENTS 5.1 Pavment of Expenses. Lessee shall pay all of the costs and expenses for the operation, management, and maintenance of the Premises. Such expenses shall include, without limitation, the following: (i) expenses incurred by Lessee in connection with the Premises for general maintenance, painting, lighting, cleaning, security, fire protection; (ii) subject to Section 3.5.1 and this Article, all charges, surcharges and other levies imposed by, and all costs (whether or not capital in nature) of compliance with the requirements of any federal, state, or local governmental agency reguiating use of the Premises; and (iii) the actua! cost of minor repairs to the Premises. As used herein, "minor repairs" means those repairs excluding the replacement of the roof, HVAC system, and repair of the Foundation as provided in Section 5.2 below, and includes interior modifications to impmve the ability to provide recreati nal ervices. Min r re airs ftirther include those needed for the ongoing upkeep and maintenance of the Premises after completion of Lessor's City Improvements. 5.2 City Improvements. Lessor shall fund the following necessary major improvements and repairs to the Premises: replacement of the entire roof and associated repairs; replacement of the HVAC and associated ducting; and repair of the Foundation as determined to be necessarily 72500.(916 3248{44.1 315 CONTRACT NO. C39690 structurally ("City Improvements"). The repairs to be done by Lessor must either occur be o e or at generally the same time as those to be performed by Lessee. 5.3 District Improvements. Lessee may design and fund a new front lobby, reconfigured weight room and office area, and a new preschool area to the rear of the Premises with an enclosed play area ("District Improvements"). As part of such work, Lessee may request and Lessor shall grant an additional area of the Civic Center Property and Exhibit "A" shall be amended accordingly. 5.4 Improvements Project. The Parties agree that economic efficiency and continued service to the public support the performance of both City and District Improvements as one project Project"), with one bid process and prime contractor. Lessor and Lessee each will bear its own costs. Lessee shall he the lead agency for the design and construction of the City and Di trict Improvements and repairs provided in Section 5.2 and 5.3 as set out in Exhibit "B" attached and incorporated as if fully set forth herein. ARTICI,E 6 MAINTENANCE OF LEASED PREMISES 6.1 Lessee's Obligations for Maintenance. 6.1.1 Lessee's Obli at i,_ ons. Lessee shall be responsible for minor repairs, herein described as "District Improvements," at Lessee's expense without cost to Lessor, and shall maintain in good order, condition, quality, and repair, the Premises and every part thereof, and any and all appurtenances thereto wherever located, and all other repairs, replacements, renewals, and restorations, ordinary and extraordinary, foreseen and unforescen. 6.1.2 Standard of Maintenance. Subject to Section 3.5.1, Lessee shall keep and maintain the Premises, including the Improvements thereon, and all FF&E, in a clean, sanitary, and safe condition in accordance with the laws of the State of California and in accordance with all directions, rules, and regulations of the health officer, Fire Marshal, building inspector, or other property officials of the governmental agencies having jurisdiction, and Lessee shall comply with all requirements of laws and ordinances affecting the Premises and the Improvements, all at the sole cost and expense of Lessee. At the time of the expiration of the tenancy created herein, Lessee shall surrender the Premises and the Improvcments thereon in the same order, condition, and repair as when received, reasonable wear and tear excepted. 6.1.3 Lessor's Substitute Performance. In the event Lessee fails,refuses, or neglects to commence and complete promptly and adequately any of Lessee's obligations pursuant to this Section, or to remove any lien, to pay any cost or expense relating to the matters described in Section 3.8, Lessor may, but shall not be required to, make or complete any such repairs, remove such lien, or pay such cost and expense, and Lessee shall reimburse Lessor for all costs and expenses of Lessor thereby incurred within fifteen (15) calendar days after receipt by Lessee from Lessor of a statement setting forth the amount of such costs and expenses which shall be deemed to be additional rent and subject to the same consequences as herein provided for failure to pay rent. If reasonably possible under the circumstances, Lessor shall give Lessee written notice fifteen (15) calendar days.prior to commencement of any substitute performance. Any failure by Lessor to give such notice, however, shall not prejudice Lessor's rights hereunder or alter Lessee's obligations soo.cxx i zas iaa3. 5- 316 CONTRACT NO. C39690 hereunder. Lessor's rights and remedies shall be in addition to any and all o[her rights an rd—emecT ies provided under this Lease or at law. 6.2 Lessor's Obligations For Maintenance. Lessor shall maintain,repair, and replace the parking areas located adjacent to the Premises. ARTICLE 7 INSURANCE AND INDEMNITY 7.1 Lessee'sInsurance. 7.1.1 Types. Lessee, at no cost and expense to Lessor, shall procure and keep in full force and effect during the Term or cause to be procured and kept in full force and effect for the mutual benefit of Lessor and Lessee, insurance policies or self-insurance meeting the minimum requirements set forth below or such greater requirements that are generally obtained from time to time for properties, improvements, activities, and operations similar to those on the Premises in thc Southern California area. Commercial general liability insurance with respect to the Premises and the operations of or on behalf of Lessee or its agents, officers, directors, and employees in, on or about the Premises in an amount not less than Three Million Dollars ($3,000,000) per occurrence combined single limit for bodily injury,personal injury, death and property damage, Three Million Dollars ($3,000,000) in aggregate subject to such increases in amount as Lessor may reasonably require from time to time. Coverage shall include,but not be limited to personal injury liability,premises and operation, blanket contractual, cross liability,severability of interest, broad form property damage, and independent contractors. Lessee shal] cause Lessor and its officers,employees, and agents to be named as additional insureds on such policy or policies. Worker's compensation coverage as required by the laws of the State of California together with employer's liability coverage. With respect to the Improvements, FF&E, and other items of personal property located on or in the Premises, insurance against fire, flood, extended coverage, vandalism and malicious mischief, and such other additional perils, hazards and risks as now are or may be included in standard "all risk" forms in general use in Riverside County, California, for an amount equal to not less than the full current actual replacement cost thereof. Such insurance shall include endorsements for the leasehold improvements, inflation coverage, plate glass,business interruption, sprinkler leakage and changed conditions. Lessor shall be an additional insured under such policy or policies and such insurance shall contain a replacement cost endorsement. Standards. All policies of insurance required to be carried by Lessee under this Lease shall be written by responsible and solvent insurance companies authorized to do business in the State of California and rated no less than A V1I by A.M. Best's Key Rating Guide. With Lessor's prior written approval of the insurance coverage, any insurance required of Lessee hereunder may be fumished by Lessee under any blanket policy carried by Lessee. A copy of each paid-up policy evidencing such insurance (appropriately authenticated by the insurer) or a certificate of the insurer if approved by Lessor}, certifying that such policy has been issued, providing the coverage 72500.00916 3348 I 3.1 6- 317 CONTRACT NO. C39690 rcquired by this Section and containing provisions specificd herein, shall be delivered to Lessorpiror to the date Lessee is given possession of the Premises or as Lessor may otherwise require, and upon renewals, not less than thirty (30) days prior to the expiration of such coverage. Lessor may, at any time, and from time to time, inspect andlor copy any and all insurance policies required to be procured by Lessee hereunder. In no event shall the linnits of any policy be considered as limiting the liability of Lessee under this Lease. Specific Provisions in Policy. Each policy evidencing insurance required to be carried by Lessee pursuant to this Article shall contain the following provisions or clauses: a provision that the insurer will not cancel or materially change the coverage provided by such policy without f rst giving Lessor thirty (30) days prior written notice; and a waiver by the Lessce's insurer of any right to subrogation against L,essor, its agents, employees or representatives which arises or might arise by reason of any payment under such policy or policies or by reason of any act or omission of Lessor, its agents, employees or representatives. If the services provided in relation to this Agreement relate in any way to minors, then this policy shall also include an endorsement for abuse and sexual molestation covering damages arising out of actual or threatened physical abuse, mental injury, sexual molestation, ncgligent: hiring, employment, supervision, investigation, reporling to proper authorities, and retention of any person for whom Lessee is responsible including, but not limited to, its employees and volunteers. Coverage shall be written on an occurrence basis in an amount of not less than 1,000,000 per occurrence, with an annual aggregate limit not less than 3,000,000. Primary/noncontributing. Coverage provided by Lessee shall be primary and any insurance or self-insurance procured or maintained by Lessor shall not be required to con[ribute 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 Lessor before the Lessor's own insurance or self-insurance shall be called upon to protect it as a named insured. Enforcement of contract provisions (non estoppel). Lessee acknowledges and agrees that any actual or alleged failure on the part of the Lessor to inform Lessee of non- compliance with any requirement imposes no additional obligations on the Lessor nor does it waive any rights hereunder. Prohibition of undisclosed coverage limitations. None of the coverages reyuired herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Lessor and approved of in writing. Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Lessee'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. 72500.0091613Z4A 1443.1 7- 318 CONTRACT NO. C39690 Pass Through Clause. Lessee 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 Lessee, provide the same minimum insurance coverage and endorsements required of Lessee. Lessee 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. I.essee agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to Lessor for review. Self-insured retentions. Any self-insured retentions must be declared to and approved by Lessor. Lessor reserves the right to require that self-insured retentions be elinunated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by Lessor. Additional insurance. Lessee 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. Lessee's personal property, fixtures, equipment, inventory and vehicles are not insured by Lessor against loss or damage due to fire, theft, vandalism, rain, water, criminal or negligent acts of others, or any other cause. L.essor's Substitute Performance. In the event that Lessee fails to procure, maintain andlor pay for at the times and for the durations specified in this Section 7.1, any insurance reyuired by this Section, or fails to carry insurance required by law or governmental regulation, Lessor may but without obligation to do so) at any time or from time to time, after 3 days written notice to Lessee, procure such insurance and pay the premiums therefor, in which event Lessee shall repay Lessor all sums so paid by Lessor together a 10% handling charge, plus interest thereon as provided elsewhere herein, within fifteen (15) days following Lessor's written demand to Lessee for such payment. Covenant to Indemnify and Hold Harmless. Lessee shall indemnify,defend, protect and hold harmless Lessor, its officers, public officials,contractors, volunteers, attorneys, agents and employees, and save them from and against any and all claims,actions, losses, damages, liabilities, and expenses, including attorneys' fees, in connection with the loss of life,bodily injury and/or damage to property arising from or out of or in connection with any occurrence in, upon or at the Premises, or the occupancy or use by Lessee of the Premises or any part thereof, or arising from or out of Lessee's failure to comply with any provision of this Lease or otherwise occasioned wholly or in part by any act or omission of Lessee, its officers, public officials,contractors, volunteers, attorneys, Agents and employees, servants, invitees or licensees,excepting that the foregoing indemnification and hold harmless provision shall not apply in the event of any uninsured willful or actively negligent misconduct on behalf of Lessor or any of its agents, representatives, or employees, or in the event any such claims,actions, losses, damages, liability, eosts, or expenses arise out of a breach by Lessor af its obligations under this Lease. 7250U.00916 32481 A43.1 g- 319 CONTRACT NO. C39690 If Lessor is madc a party to any litigation commenced by or against Lessee, t erF-'n Lessee shall indeiruufy, protect, defend and hold Lessor harrriless and shall pay all costs, expenses and reasonable attorneys' fees incurred or paid by Lessor in connection with such litigation. Lessor may, at its option, require Lessee to assume Lessor's defense in any action covered by this Section 7.2 through counsel selected by Lessor and reasonably satisfactory to Lessee. Except for that arising from the failure to make major repairs as defined herein, Only as provided in this Lease, Lessee, as a material part of the consideration to Lessor, hereby assumes all risk of damage to property or injury to persons in,upon or about the Premises and Improvements from any cause whatsoever, and Lessee hereby waives all its claims in respect thereof against Lessor excepting only damage or injury arising out of(i) the uninsured willful or actively negligent misconduct of Lessor or any or its, public officials,contractors, volunteers, attorneys, agents and empioyees, or (ii) a breach by Lessor of its obligations under this Lease. Waiver of Subrogation. Each party hereto does hereby waive, remise, release and discharge the other party hereto and any officers, public offici ls,contractors, volunteers, attorneys, agents and employees of such other party, of and from any liability whatsoever hereafter arising from ioss or damage for which Lessee has purchased a policy of"all risk" insurance. Lessee shall, upon ahtaining the policy of"all risk" insurance required hereunder, give notice to the insurance carrier or cacriers that the foregoing mutual waiver of subrogation is contained in this L,ease. Exemption of Lessor from Liability. Except as provided herein and as arising fi•om the failure to makc major repairs, L,essor shall not be liable for injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's officers, public officials,contractors, volunteers, attorneys, agents and employees, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether said injury or damage results from conditions arising upon the Premises, from other sources or places, and regardless of whether the cause of such damage or injury or the means of repairing the same is accessible or not. ARTICLE 8 UTILITY CHARGES Lessee shall pay all charges for gas, water, sewer, electricity, telephone, security and other utility services used on or in the Premises together with any taxes or penalties thereon. ARTICLE 9 ALTERATIONS AND ADDITIONS Without Lessor's prior written consent, which consent may be withheld or granted in Lessor's sole discretion, except as provided in Articles 5 or 6 or as needed to make minor repairs as required under this Lease, Lessee shall not have the right to make major changes or alterations to the Premises or the Improvements whether structural or non-structural, systemic or non-systemic. If Lessor approves any alterations or additions, then before the commencement of any work, Lessee shall pay the amount of any increased premiums on insurance policies provided for hereunder. Except as otherwise provided in Article 5, Lessor shall in no event be required to make any 72500.(x 16 32481443.1 9- 320 CONTRACT NO. C39690 alterations, rebuilding, replacement, changes, additions or improvements or repairs to the r emes. If Lessee wishes to make any alteration or addition, or make any repairs to the Premises which would result in an alteration or addition to the Premises not otherwise addressed in this Lease, Lessec shall submit to Lessor for its approval documentation which describes the desired repairs, including floor plans, building sections, building materials and components, samples of proposed exterior building materials, and the like, to the extent relevant to the particular repair. All changes, alterations, rebuilding, replacements, additions, improvements and repairs to the Premises made by Lessee shall be deemed to have attached to the realty and to have become the property of Lessor upon thc expiration of the Term or the sooner termination of this Lease. ARTICLE 10 DAMAGE OR DESTRUCTION; CASUALTY LOSS AND RESTORATION 10.1 Non-Termination. Except as provided herein, no destruction or damage to the Improvcments or the Premises by fire, windstorm, or other casualty whether insured of uninsured shall entitle Lessee to terminate this Leasc. Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destruction of the Premises and the Improvements with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent it is inconsistent herewith. 10.2 Repair of Damage. 0.2.1 Obli ation to Repair Dama e Due to Casualty Covered bY Insurance. If the Premises are partially destroyed or rendered partially un-leasable by fire or other casualty required to be insured against by Lessee, Lessee shall promptly proceed to obtain insurance proceeds. The Premises shall be deemed partially destroyed if the cost of reconstruction exceeds fifty percent (50°l0) of the replacement cost of the Improvements. Upon adjustment of the loss and delivery of funds, Lessor shall commence taking the steps necessary to begin reconstruction and shall complete the same as soon as possible so that Lessee may continue in occupancy. 10.2.2 Obligation to Repair Damage Due to Casualty Not Covered bv Insurance or Followin a Total Destruction. If the Premises are totally or partially destroyed or rendered wholly un-leasable by a casualty not required to be insured against by Lessee, then either Lessee or Lessor shall have the right to terminate this Lease. Lessee may provide alternative sites for the programs provided before thc loss so that they may continue to serve the residents of[he City and Lessor shall provide reasonable compensation therefor. 10.3 Continued Operations. During any period of repair, Lessee may, to the extent it is safe or Lessee is able to do so, continue, or cause the continuation of, the operation of its Specitic Use on the Premises and use of the Premises by the Lessee to the extent reasonably practicable. However, irrespective of the continued operation during such period of repair, the rent and other charges payable hereunder shall not be deferred and shall not be abated. Upon completion of such repair and restoration, Lessee shall promptly refixture and restock the Improvements and all FF&E, if necessary, substantially to the condition prior to the casualty, or as otherwise required by this Lease, whichever is greater, and shall reopen if closed by the casualty. 10.4 Assi nment of Insurance Proceeds. If for any reason this Lease is terminated by reason of a casualty, all insurance proceeds covering the Improvements, the Premises, or the FF&E, 72500.1x 16 324814d3.1 321 CONTRACT NO. C39690 and any personal property used in the operation of the Premises, shall be the property of Lessor, and Lessee hereby assigns such insurance proceeds to Lessor. ARTICLE 11 ASSIGNMENT AND 5UBL TTING 11.1 Lessor's Consent Rec uired. Notwithstanding any provision herein to the contrary, Lessee agrees and covenants (which covenants shall be binding upon the successors and assigns of Lessee) that Lessee shall not, eithcr voluntarily or by operation of law, assign, sell, encumber, pledge or otherwise transfer all or any part of Lessee's leasehold estate hereunder, or permit the Premises to be occupied by anyone other than Lessee, Lessee's employees or invitees, or sublet the Premises, or any portion thereof, without Lessor's prior written' consent. No assignment, whether voluntary oi- involuntary, by operation of law, under legal process or proceedings, by receivership, in bankruptcy, or othei•wise, and no subletting shall be valid or effective without such prior written consent, and at Lessor's election, shall constitute a default. Lessor's consent to any proposed transfer of Lessee's leasehold estate will not be unreasonably withheld. 11.2 Lessee Remains Obligated. No sublet ing or assignment, even with the consent of Lessor, shall relieve Lessee of its obligation to pay rent and to perform all of its other obligations hereunder. The acceptance by Lessor of any payment due hereunder from any person or entity other than Lessee shall not be construed as a waiver by Lessor of any provision of this Lease or as a consent to any assignment or subletting. Consent by Lessor to an a.Ssignment of the Lease or to a subletting of the Premises shall not operate as a waiver or estoppel to the future enforcement by Lessor of its rights pursuant to this Lease to approve other assignments or sublettings. ARTICI,E 12 DEFAULT 12.1 Events of Default. The word "default," as used in this Section, shall mean and include any one or more of the following events or occurrences: 12.1.1 The failure by Lessee to make any payment of Base Rent, additional rent, or other payment required to be made by Lessee hereunder, when due and the continuance of such failure for a period of ten (10) calendar days after Lessor has given Lessee written notice specifying the same; 12.1.2 The failure of Lessee to perform any other term, condition, covenant or agreement of this Lease not previously described, and the continuation of such failure for a period of thirty (30) calendar days after Lessor shall have given Lessee written notice specifying the same, or in the case of a situation in which the default cannot reasonably be cured within thirty (3U) calendar days, if Lessee shall not promptly, within thirty (30) calendar days after receipt of such notice, commence to remedy the situation by a means that can reasonably be expected to remedy the situation within a reasonable period of time, and diligently pursue the same to completion; 12.1.3 The abandonment by Lessee of the Premises or a substantial portion thereof; 12.2 Remedies. 72500.00916 3248 l 443.i 1 1- 322 CONTRACT NO. C39690 12.2.1 General, ln the event of any default by Lessce, including the expirationo any applicable cure period, Lessor may terminate Lessee's right to possession of the Premises by any lawful means, in which case this Lease tihall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. 12.2.2 ln such event Lessor shall be entitled to recover from Lessee: 12.2.2.1 The worth at the time of award of the unpaid rent which had been earned at the time of termination; 12.2.2.2 1'he worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such loss that Lcssee proves could have been reasonably avoided; 122.2.3 The worth at the time of award of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of such loss that Lessee proves could be reasonably avoided; and 12.2.2.4 Any other amount deemed necessary and/or allowable by applicable statute or decision ta compensate Lessor for all the detriment proximately caused by Lessee's failure to perform its obligations under this L,ease or which, in the ordinary course of events, would be likely to result therefrom, including, but not limited to, the cost of recovering possession of the Premises, expenses of reletting, expenscs of restoring the Premises to the condition required hereunder (if applicable), reasonable attorneys' fees, and any other reasonable costs. 12.2.2.5 The "worth at the time of award" of the amounts referred to in the subparagraphs, above, shall be computed by allowing interest at a rate equal to ten percent (10%) from the dates such amounts accrued to Lessor until the date of payment by Lessee. 12.3 Cumulative Remedies. Except as may be specifically provided herein, the rights and remedies reserved to Lessor and Lessee herein, including those not specifically described, shall be cumulative and, except as provided by California statutory or case law in effect at the time, either Lessor or Lessee may pursue any or all of such rights and remedies at the same time or otherwise. 12.4 Lessor's Non-Waiver. No delay or omission of Lessee or Lessor to exercise any right or remedy shall be construed as a waiver of any right or remedy or of any default by Lessee or Lessor hereundei•. The acceptance by Lessor of rent or any other charge hereunder shall not be a waiver of any preceding breach or default by Lessee of any provision hereof, other than the failure of Lessee to pay the particular rent accepted, regardless of Lessor's knowledge of such preceding breach or default at the time of acceptance of such rent, or a waiver of Lessor's right to exercise any remedy available to Lessor by virtue of such breach or default. The acceptance of any payment from a debtor in possession, a trustee, a receiver or any other person acting on behalf of Lessee or Lessee's etitate shall not waive or cure a default under this Section. 12.5 Lessor's Reentrv. Lessee hereby irrevocably consents to Lessor's peaceable reentry, if Lessor so elects, to the Premises upon the occurrence of any of the events of default specified above, including the expiration of any applicable cure period. 12.6 Lessor's Advances. In the event of any default by Lessee in the payment of money or default by Lessee in the performance of Lessee's obligations required under this Lease, and the zsoo.00v as i aa.i 12- 323 CONTRACT NO. C39690 expiration of any period expressly provided for herein for Lessee to cure said default a te the delivery of notice by Lessor, in addition to the other remedies herein granted to Lessor, Lessor may, but shall not be obligated to do so, and without waiving or releasing Lessee from any obligations of this Lease make any payment and perform any other act on Lessee's part to be made or performed as provided in this Lease. All sums paid by Lessor and all necessary incidental costs, together with interest thereon at the rate of ten percent (10%) per annum from the date of the payment by Lessor shall be payable by Lessee to Lessor on demand. The sums shall be deemed to be additional rent and subject to the same conseguences as herein provided for failure to pay rent. 12.7 Default by Lessoi•. Lessor shall not be deemed to be in default in the performance of any obligation required to be perfot-med by it hereunder unless and uniil it has failed to perform such obligation within thirty (30) calendar days after written notice by Lessee to Lessor specifying in reasonable detail the nature and exlent of any such failure; provided, however, that if the nature of Lessor's obligation is such that more than thirty (30) calendar days are required for its performance, then L,essor shall not be deemed to be in default if it shall commence such performance within such thirty (30) calendar day period and thereafter diligently prosecutes the same to completion. 12.8 Le a l Expenses and Collection Costs. If either Party incurs any expense, including actual costs of collection, reasonable attorneys' fees, expenses of discovery, preparation for litigation, expert witness feeti and litigation expenses and costs, in connection with any action or proceeding instituted by either Party by reason of any default or alleged default of the other Party hereunder, the party prevailing in such action or proceeding shall be entitled to recover its reasonable expenses from the other Party. For purposes of this provision, in any unlawful detainer or othei- action or proceeding instituted by Lessor based upon any default or alleged default by Lessee hereundcr, Lessor shall be decmed the prevailing party if(a)judgement is entered in favor of Lessor or (b) prior to trial or judgement Lessee shall pay the rent and charges claimed by Lessor, or eliminate the condition(s), cease the act(s) or otherwise cure the omission(s) claimed by Lessor to constitute a default by Lessee hereunder. ARTICLE 13 HOLDING OVER This Lease shall terminate and become null and void without further notice upon the expiration of the Term herein specified, and any holding over by Lessee after such expiration shall not constitute a renewal or extension hereof or give Lessee any rights under this Lease, except when in writing signed by both Parties hereto. If Lessee holds over at the Premises, Lessee shall be liable to Lessor for the fair rental value of the Premises during such period. ARTICLE 14 ACCESS BY LESSOR In addition to the right of Lessor to reserve use of the Premises under Article 3, Lessor and its agents, contractors, servants, and employees of Lessor shall have the right, after rcasonable notice to Lessee, to enter the Premises during normal business hours to (a) examine the Premises, to perform any obligations of Lessor or to exercise any right or remedy reserved to Lessor 725(H).00916 324814A3.1 13- 324 CONTRACT NO. C39690 in this Lease; (b) exhibit the Premises to prospective purchasers, mortgagees or lessees o'Less•or'ti interest therein; (c) make such repairs as Lessor may be entitled to make after a default by Lessee under Article 12, above; and (d) take all materials into and upon the Premises that may be required in connection with such repairs, provided that any such entry sh ill be performed in such a manner that does not unreasonably interfere with Lessee's use of thc Premises. If Lessor exercises its rights of entry in compliance with this Article l4, such entry shall not constitute a constructive or actual eviction of Lessee, in whole or in part, and the rent and other charges hereunder shall noi abate while any such repairs are being made. If, during the last month of the Term, Lessee shall have removed all oi• substantially all of Lessee's property therefrom, Lessor may immediately enter and alter, renovate and redecorate the Premises without elimination or abatement of rent or other charges and without other compensation and such action shall have no effect upon this Lease. Nothing herein contained, however, shall be deemed or construed to impose upon Lessor any obligation, responsibility or liability whatsoever for the care, supervision or repair of the Premises. ARTICLE 15 LESSEE'S OBI,IGATIONS AT THE F,ND OF THE TERM Upon the expiration or sooner termination of this Lease, if the Lessee has faithfully and fully performed all of the terms, conditions, and covenants of this L.ase to be performed by the Lessee, but noi otherwise, the Lessee shall, at its sole cost and expense, remove from the Premises all of its movable trade fixtures and equipment, and such other items the Lessee has installed or placed on the Premises, and the Lessee tihall repair all damage to the Improvements resulting from such removal. The Lessee shall thereupon surrender the Premises and the Improvements in the same condition as they were when the Improvement were first completed, reasonable wear and tear and damage by any casualty excepted, clean and free of debris. The Lessee shall repair any damage to the Improveinents occasioned by the installation or removal of the Lessee's trade fixtures, furnishings and equipment. I}the Lessee has not fully and faithfully performed all terms, conditions, and covenants of this L.ease to be performed by the Lessee, the Lessee shall nevertheless remove its personal property from the Premises in the manner aforesaid within fifteen (15) calendar days after receipt of written direction to do so from the Lessor. In the event the Lessee shall fail to remove any of its personal property as provided herein, the Lessor may, but is not obligated, at the Lessee's expense and with interest at the highest rate then allowcd to be charged by non-exempt lenders under the usury laws of the State from the date of payment by the Lessor, remove all such personal property not so removed and repair all damage to the ImprovemenCs resulting from such removal and may, but is not obligated to, at the Lessec's expense, store the same in any public or privatc warehouse, and the Lessor shall have no liability to the Lessee for any loss or damage to the Lessee's property caused by or resulting from such removal. To the extent that Lessor has provided the major repairs, and subject to reasonable wear and tear, the Lessee shall leave the airlines, power panels, electrical distribution systems, lighting fixtures, space heaters, air conditioning, plumbing and fencing on the Premises in good operating condition. ARTICLE 26 QUIET ENJOYMENT Upon payment by Lessee of the rents provided herein, and upon the observance and performance of all of the covenants, terms, and conditions on the part of Lessee to be performed hereunder, Lessor covenants and warrants that Lessee may peaceably and quietly hold and enjoy the 72500.(X 16\32481443.1 4- 325 CONTRACT NO. C39690 Premises for the Term. ARTICLE 17 TAXES Lessee shall be responsible for, and agrees to pay, as additional rent, prior to delinquency, any and all real estate or property taxes and assessments, special assessments, possessory interest taxes, levies, fees, and other governmental charges of every kind or nature hereinafter collectively called "Taxes") in the event such Taxes are levied or assessed by municipal, county, state, fedcral, or other t ucing or assessing authorities or governmental agencies or entities upon, against, or with respect to (i) the Premises or any portion thereof; (ii) all fixtures, equipment, and any other property of any kind owned by Lessee or placed, installed, or located within, upon, or about the Premises for which Lessor mighl be assessed or which might become a lien on the Premises if not paid by Lessee; (iii) all alterations, additions, and improvements of whatsoever kind or nature, if any, made to the Premises or the Improvements; (iv) rentals or other charges payable by Lessee to Lessor (other than state and federal income taxes applicable to Lessor}; and (v) any other interest in the Premises (including the leasehold interest created by this Lease), irrespective of whether any of the items described in clauses (i) through (v) above are assessed as real or personal property, and irrespective of whether any of such items are assessed to or against Lessor, Lessee or any other person. ARTICLE 18 FORCE MAJEURE In the event the performance by either Party of any of its obligations hereunder is delayed by reason of the act or neglect of the other Party, act of God, stormy or inclement weather, strike, labor dispute, boycott, lockout or other like defensive action by such Party, inability to obtain labor or materials, governmental restrictions, riot, insurrections, war, catastrophe, casualty, act of the public enemy, or any other cause (financial inability excepted), whether similar or dissimilar, beyond the reasonable control of the Party from whom such performance is due, the period for the commencement or completion thereof shall be extended for a period equal to the period durinb which performance is so delayed. AKTICLE 19 MISCELLANEOUS 19.1 Assumption of Risk, Waiver, and Lessor's Non-liability. To the maximum extent allowed by law, except for Lessor's or Lessor's officers, employees, and agents willful or actively negligent acts, Lessee assumes any and all risk of loss, damage or injury of any kind to any person or property which is in, on or about the Premises. Lessee's assumption of risk shall include, without limitation, loss or damage caused by defects within the Premises or any fixture therein, accident, fire or other casualty on the Premises. To the maximum extent allowed by law, except for Lessor's willful or actively negligent acts, Lessee hereby waives all claims and demands against Lessor, its respective officials, officers, employees, volunteers and agents for injury to persons, damage to property or any other interest of Lessee sustained by Lessor or any person claiming to be Lessee resulting from any occurrence on or about the Premises. 7?00.00916 124A 1443.1 15- 326 CONTRACT NO. C39690 19.2 Notices. All notices, demands, or other writings to be made, given or sent hereunder, or which may be so given or made or sent by either Lessor or Lessee to the other shall be deemed to have been given when in writing and personally delivercd or if mailed on the third (3rd) day after being deposited in the United States mail, certified or regis[ered, postage prepaid, and addressed to the respective Parties at their addresses set forth below: To Lessor: To Lessee: City of Palm Desert Desert Recreation District 73-510 Fred Waring Drive 45-305 Oasis Street Palm Desert, California 92260 Indio, California 92201 Attn: City Manager Atln: General Manager 19.3 Relationship of Parties. Nothing contained herein shall be deemed or construed by the Parcies hereto, nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the Parties hereto, it being understood and agreed that neither the method of computation of rent, nor any other provision contained herein, nor any acts of the Pai•ties herein, shall be deemed to create any relationship between the Parties hereto other than the relationship of Lessor and I.essee. 19.4 Accord and Satisfaction. No payment by Lessee or receipt by Lessor of a Iesser amount than the rent or other charges herein stipulated shall be deemed to be other than on account of the earliest due stipulated rent or other charges, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as rent or other charges be deemed an accord and satisfaction, and Lessor shall accept such check or payment without prejudice to Lessor's right to recover the balance of such rent or other charges or pursue any other remedy in this Lease provided. 19.5 Time of Essence. Time is hereby expressly declared to be of the essence of this Lease and of each and every term, covenant, and condition hereof which relates to a date or period of time. 19.6 Remedies Cumulative. The remedies herein given to Lessor and Lessee shall be cumulative and are given without impairing any other rights or remedies given Lessor and Lessce by statute or law now existing or hereafter enacted, and the exercise of any one remedy by Lessor or Lessee shall not exclude the exercise of any other remedy. 19.7 Effect of Invalidity. If any term or provision of this Lease or the application thereof to any person or circun stances shall, to any extent, be invalid or unenforceable, the remaindcr of this Lease, or the application of its terms and provisions to persons and circumstances other than those to which it has been held invalid or unenforceable shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law. No acquisition by Lessor of all or any of the interest of L.essee in or to the Premises or the Improvements, and no acquisition by Lessee of all or any interest of Lessor in or to the Premises shall constitute or work a merger of the respective interest, unless expressly provided for. 72500.00916 32481443.1 i b- 327 CONTRACT NO. C39690 19.8 Successors and Assi ns. This Lcase and the covenants and conditions contained herein shall be binding upon and inure to the benefit of and shall apply to the successors and assigns of Lessor and to the permitted successors and assigns of Lessee, and all references in this Lease to Lessee" or "Lessor" shall be deemed to refer lo and include all permitted successors and assigns of such Party. 19.9 Entire A reement. This Lease and the Exhibits hereto contain the entire agreement of Lessor and Lessee wi[h respect to the matters covered hereby, and no other agreement, statement of promise made by either Lessor or Lessee which is not con[ained herein, shall be valid or binding. No prior agrecment, understanding, or representalion peRaining t any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signcd by Lessor and Lessee. 19.10 Interest on Past-Due Obli at ions• Any amount due from Lessee to Lessor hereunder which is not paid when due (including, without limitation, amounts due as reimbursement to Lessor for costs incurred by Lessor in performing obligations of Lessee hereunder upon L.essee's failure to so perform) shall bear interest at the rate of ten percent (10%) from the date due until paid, unless otherwise specifically provided herein, but the payment of the interest shail not excuse or cure any default by Lessee under this Lease. 19.1 1 Controlling Law. This Lease shall be governed by and construed in accordance with the laws of the State of California. 19.12 ecific Performance. Nothing contained in this Lease shall be construed as or shall have the effect of abridging the right of either Lessor or Lessee to obtain specific performance of any and all of the covenants or obligations of the other Party under this L,ease. 19.13 Survival of Indemnities and Warranties. The obligations of the indemnifying Pariy under each and every indemnification and hold harmless provision contained in this Lease shall survive the expiration or earlier termination of this Lease to and until the last to occur of(a) the last date permitted by law for the bringing of any claim or action with respect to which indemnification may be claimed by the indemnified party against the indemnifying party under such provision or (b) the date on which any claim or action for which indemnification may be claimed under such provision is fully and finally resolved, and, if applicable, any compromise thereof or judgement or award thereon is paid in full by the indemnifying party and the indemnified party is reimbursed by the indemnifying party for any amounts paid by the indemnified party in compromise thereof or upon judgment or award thereon and in defense of such action or claim, including reasonable attorneys' fees incurred. The representations, warranties, and covenants of the Parties contained herein shall survive the termination of this Lease without regard to any investigation made by the Parties. 19.14 Severability. If any provision of this Lease is held to be invalid or void by a court of competent jurisdiction, the balance of the rovisions shall, nevertheless, remain in fu11 force and effect. 19.15 Counterparts. This Lease may be executed in multiple counterparts each of which shall be deemed an original. nsoo.009 i6 2as i aa3.i 17- 328 CONTRACT NO. C39690 19.16 Recitals lncorporated. The recitals shown on the first page of this Lease are hereby incorporated into the Lease, and the Parties agree to the truth and accuracy of the facts contained therein. Signature provision on following page.] zsoo.cxx t6 3 asiaa3. 18- 329 C NTRACT NO. C39690 IN WITNESS WHEREOF, the Parties hereto have executed this Lease as of the Term Commencement Date. LESSEE I.ESSOR DESERT RECREATION DISTRICT, CI1'Y OF PALM DESERT, A Cali ornia special istrict A California municipal corporation r A B y: B y: /.,L'/ ' V Ke Kalman cina I'estande Gen ral Manager ayor Dated: 3 V t'C Z L _ Dated: I — " zO ATTEST: B y: Rac e]le D. Kl.ssen City Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: BEST BEST & IEGER LLP B y: Betsy Martyn, Esq. Rob rc w. t r:a s City Attorne 72500.W9I6'i2481443.1 19- 330 CONTRACT NO. C39690 L 1 WTTNESS WHEREOF, the Parties hereto have executed this Lease as of the Tercn Commcncement Date. LESSEE I ESSOR DESERI'RECREATION DISTRICT, CITY OF PALM DESERT, A California special district A California municipal corporation By: RY Kevin Kalman Gina Nestande General Manager tayor Dated: Dated: ATTEST: By: Rachelle D. Klassen City Clerk APPROVED AS TO FORM: APPROVED AS TO FORM: BEST BEST& KRIEGER LLP gy. ,,,t- a-vyY By: Betsy Martyn, Esq. Robert w. N rKre:,vr5 City Attorney 7?500.00916112 18I 543.I 1- 331 CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of California County of Q j Q f G On i e 7 t 2_L before me, Date Here 1 s rt Name and Title o the Officer personally appeared Name )of Signer(g) who proved to me on the basis of satisfactory evidence to be the person(,)whose name( is/afe subscribed to the within instrument and acknowledged to me that he/sl e/f iey executed the same in his,4 er N eic- authorized capaciry(j eS),and that by his/klerl4kieir signaturej on the instrument the person, or the entity upon behalf of which the person( acted, executed the instrument. I certify under PENALTY OF PERJURY under the DELIA GRANADOS laws of the State of California that the foregoing Notuy PuDlic-C INorni paragraph is true and correct. Rirersfd County WITNESS my hand and official seal.Commifslon M 2155041 M Comm.Ex ir s Jun 24,2020 Signature Ploce Notary Seol and/or Stamp Above Signature of Notary Public OPTIONAL Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended documenf. j Description of Attached Docu ent Title or Type of Document: :SA- i-t r z SL(c II. r^ Document Date: Q,t_T n Z :Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: Signer's Name: Corporate Officer- Title(s): Corporate Officer- Title(s): Partner- Limited General Partner- Limited General Individual Attorney in Fact Individual Attorney in Fact Trustee Guardian or Conservator Trustee Guardian or Conservator Other: Other: Signer is Representing: Signer is Representing: 2018 National Notary Association 332 CONTRACT NO. C39690 EXHIBIT"A" Legal Description That certain real property situated in the City of Palm Desert, County of Riverside, State of California, as described as follows: 43900 San Pablo Avenue(APN: 622-250-016) PARCEL 4 OF PARCEL MAP NO. 37347, IN THE CITY OF PALM DESERT, COUIVTY OF RIVERSID, STATE OF CAI,IFORNIA, AS PER MAP FILED IN BOOK 245,PAGES 100 THROUGH 1]0, INCLUSIVE, OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDED OF SAIll COUNTY. 72500.00916 32481443.I 20- 333 CONTRACT NO. C39690 Exhibit"B" Project Improvements Agreement The Parties (individually refcrred to as "City" and "District") agree as follows as the design, plans, specifications, public works bidding process and project management for the Improvements set out in Article S of the Lease. Citv Responsibilit a.City wi(1 pay for the cost of HVAC replacement, new roof and foundation repair as set out in Section 5.2 of ihe Lease("City Im rovements"). 2.District Responsibility. a.District shall pay to recon gure the Premises' inierior ("llistrict Improvements"). b.District shall pay for the Project design (including City and District Improvements), if required, including plans, specifications, public works bidding process, and Project management for as set out in Sectians 5.3 and 5.4 of the Lease. i) The Project design shall be subject to review and reasonable approval by City prior to the commencement of any construction, and shall be finalized in consultation with City. Upon approval of the Project design by the District and City, funds shall be authorized and budgeted by City for payment for construction associated with the Project. ii) District shall issue a request for proposals for the construction management services for the Project and contract with the successful firm for these management services or shall determine itself to provide such services. District shall bear the cost of such management services. iii) District shall seek bids for the construction of the Project. a) The format used for all bid solicited by District for the Project shall require itemi-r.ation sufficient to allow quantities of each bid item to be easily discernible. If reyuested by City prior to the award of the bid, it shall be the responsibility of District to determine what, if any, portion of the work is an enhancement to any specifications by City for City Improvements, for which there shall be no City reimbursement. b) The District shall use bidding procedures as required by state law for both parties. c.Upon review and approval of the apparent low bidder costs by City, Dis[ricl shall contract with the successful bidder for the construction of the Project. The City Foundation ImProvemen[s shall be Phase 1 f the Projec[ and the City HVAC and roof repair along «ith the l istrict Improvements shall be Phase 2. 3.Payment Obli at IOnS: IVotwithstanding any other provisions herein, neither District nor City shall be obligated for any monetary contributions that have not been approved and budgeted for this Project. The budget for this Project will be based on the Engineer's Estimate, and approved by City and District based on the lowest responsive bid received. Should the lowest responsive 21- 7?500.0091613?48 f 443.1 334 AMENDMENT NO. 1 TO LEASE AGREEMENT THIS AMENDMENT NO. 1 TO LEASE AGREEMENT Contract No. C39690 (“First Amendment”) is entered as of June 8, 2023, by and between CITY OF PALM DESERT, a California municipal corporation (“Lessor”), and the DESERT RECREATION DISTRICT, a California special district (“Lessee”). Lessor and Lessee are sometimes referred to herein individually as a Party” or collectively as the “Parties.” RECITALS WHEREAS, Lessor and Lessee previously entered into that certain Lease Agreement dated January 1, 2020 (the “Lease”), for the lease of the premises more particularly described therein located at 43900 San Pablo Avenue, Palm Desert, California 92260 (the “Premises”); WHEREAS, Lessee desires to make certain tenant improvements to the Premises as more particularly described on Exhibit A hereto and incorporated herein (the “Additional District Improvements”); WHEREAS, Lessor will agree to provide a tenant improvement allowance to provide reimbursement to Lessee for the cost of such Additional District Improvements, subject to the limitations set forth herein; WHEREAS, Lessor finds and determines that providing the tenant improvement allowance to facilitate the construction of the Additional District Improvements will enhance recreational opportunities available to the residents and taxpayers, and the Additional District Improvements will benefit the areas within the City of Palm Desert commonly known as Project Areas Nos. 2 and 3; NOW THEREFORE, Lessor and Lessee desire to amend the Lease on the terms and conditions as provided in this First Amendment. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby mutually agree as follows: 1. Amendments to Lease. The Lease is hereby amended as follows: a. Term. Section 1.1 of the Lease is hereby amended to read in its entirety as follows: 1.1 Term. The “Term” of this Lease shall be thirty-five (35) years, commencing on January 20, 2020 (the “Term Commencement Date”) with an option to renew the Lease at the Parties’ mutual discretion for three (3), five (5)-year terms, unless terminated earlier by Lessor or Lessee (subject to terms herein).” b. Additional Rent. A new Section 2.2 is hereby added to the Lease to read as follows: DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 335 Contract No. C39690 2 2.2 Additional Rent. In addition to the Base Rent, Lessor shall pay to Lessor on each January 1 and July 1, commencing on January 1, 2025, additional rent in the amount necessary to fully amortize the aggregate amount of the Tenant Improvement Allowance which was disbursed by Lessor in semi-annual payments with an interest rate of 3% per annum over the remaining portion of the initial Term (the “Additional Rent”). An estimated Additional Rent payment schedule is attached hereto as Exhibit B. The interest component shall begin to accrue on the outstanding unamortized portion of the Tenant Improvement Allowance on the date that Lessor first disburses such Tenant Improvement Allowance or any portion(s) thereof. On or about December 1, 2024, Lessor shall provide to Lessee in writing the final amortization schedule for the payment of the Additional Rent based on the aggregate amount of the Tenant Improvement Allowance actually disbursed pursuant to this First Amendment, and taking into account the date of each disbursement with respect to calculating the interest component.” c. Additional District Improvements. The Additional District Improvements described herein shall be included in the meaning of the term “District Improvements” as used in the Lease, and shall be subject to the terms of the Lease, including Exhibit B thereto. d. Construction and Installation of Additional District Improvements. A new Section 5.5 is hereby added to the Lease to read as follows: 5.5 Construction and Installation of Additional District Improvements. The Lessee hereby agrees to use commercially reasonable efforts to construct and install the Additional District Improvements on or before the first anniversary of the execution of this First Amendment.” e. Tenant Improvement Allowance. A new Section 5.6 is hereby added to the Lease to read as follows: 5.6 Tenant Improvement Allowance. 5.6.1 Amount of Tenant Improvement Allowance. Provided the Lessee is not then in default under the terms of this Lease, the Lessor will make available to Lessee for the construction of the Additional District Improvements, a maximum amount of the sum of Twelve Million Five Hundred Thousand and 00/100 Dollars ($12,500,000.00) (the Tenant Improvement Allowance”), to be applied towards all hard and soft costs associated with any alterations, additions, installations, changes, improvements, and/or other renovation included in the Additional District Improvements, including but not limited to actual construction costs, architectural, design, and engineering fees, city building permit fees, and or other consultants (“Tenant Improvements”). If the costs for the Tenant Improvements exceeds the Tenant Improvement Allowance, Lessee shall bear and pay the cost of such excess. If the actual cost of the Tenant Improvements is less than the Tenant Improvement Allowance, the remaining portion of the Tenant Improvement Allowance after disbursement for all costs incurred) shall be cancelled and no further disbursements of the Tenant Improvement Allowance shall be made. 5.6.2 Disbursement of Tenant Improvement Allowance. Provided the Lessee is not then in default under the terms of this Lease, the Lessor will disburse amounts from the Tenant Improvement Allowance from time to time (but not more than once per DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 336 Contract No. C39690 3 month) following Lessor’s receipt of (i) a written request by Lessee requesting a disbursement from the Tenant Improvement Allowance and specifying the amount requested, (ii) copies of invoices, including all reasonable detail relating thereto as may be requested by Lessor, for all work performed for which payment is being requested by Lessee, and (iii) evidence satisfactory to Lessor that Lessee has paid all invoices for which disbursement is being requested from Lessor. All requests for disbursement from the Tenant Improvement Allowance shall be made on or before October 1, 2024. 5.6.3 Reimbursement of Tenant Improvement Allowance. Lessee shall reimburse Lessor for the amount of the Tenant Improvement Allowance disbursed to Lessee through the payment of Additional Rent in accordance with Section 2.2 hereof.” f. Maintenance. Section 6.1.1 of the Lease is hereby amended to read in its entirety as follows: 6.1.1 Lessee’s Obligations. Lessee shall be responsible for minor repairs, herein described as “District Improvements,” at Lessee’s expense without cost to Lessor, and shall at Lessee’s expense maintain in good order, condition, quality, and repair, the Premises including the Additional District Improvements) and every part thereof, and any and all appurtenances thereto wherever located, and all other repairs, replacements, renewals, and restorations, ordinary and extraordinary, foreseen and unforeseen.” g. Rental Interruption Insurance. A new Section 7.1.2 is hereby added to the Lease to read as follows: 7.1.2 Rental Interruption Insurance. In addition to the insurance required pursuant to Section 7.1.1 hereof, the Lessee shall procure and maintain, or cause to be procured and maintained, until the Tenant Improvement Allowance has been reimbursed in full pursuant to Section 2.2, rental interruption or use and occupancy insurance to cover loss, total or partial, of the use of any portion of the Premised constituting buildings or other improvements as a result of any of the hazards covered in the insurance required by Section 7.1.1. Lessor shall be named an additional insured or loss payee as applicable, and the insurance shall be issued by an insurance company meeting the requirements of Section 7.1.1. Such insurance shall be in an amount at least equal to the maximum Additional Rent coming due and payable during any two consecutive years. Such insurance may be maintained (i) as part of or in conjunction with any other insurance coverage carried by the Lessee (except that it may not be maintained in whole or in part in the form of self- insurance by the Lessee); or (ii) in the form of the participation by the Lessee in a joint powers agency or other program providing pooled insurance. The net proceeds of such insurance, if any, shall be paid to Lessor for application to the payment of the Additional Rent.” h. Abatement. A new Section 10.3 is hereby added to the Lease to read as follows: 10.3 Abatement Due to Damage or Destruction. The amount of Additional Rent will be abated during any period in which by reason of damage or destruction there is substantial interference with the use and occupancy by the Lessee of the Premises or any portion thereof. The amount of such abatement shall be determined by the Lessee such that DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 337 Contract No. C39690 4 the resulting Additional Rent represents fair consideration for the use and occupancy of the portions of the Premises that are available for use and occupancy. Such abatement shall continue for the period commencing with such damage or destruction and ending with the substantial completion of the work of repair or reconstruction. In the event of any such damage or destruction, this First Amendment shall continue in full force and effect and the Lessee waives any right to terminate this First Amendment by virtue of any such damage and destruction. Notwithstanding the foregoing, there shall be no abatement of Additional Rent under this Section 10.3 to the extent that the proceeds of hazard insurance, or rental interruption insurance, are available to pay Additional Rent which would otherwise be abated under this Section 10.3.” 2. Representations and Warranties. The Lessee makes the following covenants, representations and warranties to the Lessor as of the date of the execution and delivery of this First Amendment: a. Due Organization and Existence. The Lessee is a recreation and park district duly organized and validly existing under the Constitution and laws of the State of California, has full legal right, power and authority under the laws of the State of California to enter into this First Amendment and to carry out and consummate all transactions contemplated hereby and thereby, and by proper action the Lessee has duly authorized the execution and delivery of this First Amendment. b. Due Execution. The representatives of the Lessee executing this First Amendment have been fully authorized to execute the same pursuant to a resolution duly adopted by the Board of Directors of the Lessee. c. Valid, Binding and Enforceable Obligations. This First Amendment has been duly authorized, executed and delivered by the Lessee and constitutes the legal, valid and binding agreement of the Lessee enforceable against the Lessee in accordance with its terms. d. No Conflicts. The execution and delivery of this First Amendment, the consummation of the transactions herein contemplated and the fulfillment of or compliance with the terms and conditions hereof, do not and will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any indenture, mortgage, deed of trust, lease, contract or other agreement or instrument to which the Lessee is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Lessee, which conflict, violation, breach, default, lien, charge or encumbrance would have consequences that would materially and adversely affect the consummation of the transactions contemplated by this First Amendment or the financial condition, assets, properties or operations of the Lessee or its properties. e. Consents and Approvals. No consent or approval of any trustee or holder of any indebtedness of the Lessee or of the voters of the Lessee, and no consent, permission, authorization, order or license of, or filing or registration with, any governmental authority is necessary in connection with the execution and delivery of this First Amendment, or the DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 338 Contract No. C39690 5 consummation of any transaction herein contemplated, except as have been obtained or made and as are in full force and effect. f. No Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court or federal, state, educational or other governmental authority pending or, to the knowledge of the Lessee after reasonable investigation, threatened against or affecting the Lessee or the assets, properties or operations of the Lessee which, if determined adversely to the Lessee or its interests, would have a material and adverse effect upon the consummation of the transactions contemplated by or the validity of this First Amendment, or upon the financial condition, assets, properties or operations of the Lessee, and the Lessee is not in default with respect to any order or decree of any court or any order, regulation or demand of any federal, state, educational or other governmental authority, which default might have consequences that would materially and adversely affect the consummation of the transactions contemplated by this First Amendment or the financial conditions, assets, properties or operations of the Lessee or its properties. 3. Effectiveness of Agreement. Except as explicitly modified by this First Amendment, all of the terms and provisions of the Agreement are and remain in full force and effect. 4. Entire Agreement. This First Amendment and the Agreement represent the final and entire agreement between Lessor and Lessee regarding the subject matter hereof and thereof, and may not be contradicted by evidence of prior, subsequent, or contemporaneous oral agreements of the Parties. 5. Modification. No amendment or modification hereto shall be valid and binding unless expressed in writing and executed by both Parties hereto. 6. Authority. Each individual executing this First Amendment on behalf of an entity represents and warrants that he or she is duly authorized to execute and deliver this First Amendment on its behalf. 7. Counterparts. This First Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this First Amendment delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. Signatures on Following Page] DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 339 Contract No. C39690 6 IN WITNESS WHEREOF, the Parties have caused this First Amendment to be executed by and through their respective authorized representatives, as of the date first above written. Approved as to Form: CITY ATTORNEY By: ________________________________ Name: Isra Shah Best Best & Krieger LLP LESSEE: DESERT RECREATION DISTRICT, A California special district By: ________________________________ Name: Kevin Kalman Title: General Manager Dated: ______________________ LESSOR: CITY OF PALM DESERT, a California municipal corporation By: Name: L. Todd Hileman Title: City Manger Dated: June 8, 2023 Attest CITY CLERK By: _____________________________ Anthony J. Mejia, MMC DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 9/11/2023 340 Contract No. C39690 7 EXHIBIT A ADDITIONAL DISTRICT IMPROVEMENTS DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 341 Palm Desert Community Center Renovation Project – IFB# 23-05-001-PW List of Contracts to be Awarded based on lowest responsive and responsible bidders. Continued on Page 2) Bid Category # BC” #) Bid Category Description Contract Being Awarded To Contract Value Agreement # 1 Selective Building Demo Demolition Specialist, Inc. $ 364,000.00 23-08-014-PDCC 2 Earthwork & Asphaltic Paving Horizons Construction Company International, Inc. $ 213,700.00 23-08-015-PDCC 3 Concrete: Structural & Site Bravo Concrete Construction Services, Inc. $ 379,000.00 23-08-016-PDCC 4 Masonry NuWay, Inc. $ 134,800.00 23-08-017-PDCC 5 Steel: Structural & Miscellaneous White’s Steel, Inc. $ 191,500.00 23-08-018-PDCC 6 Rough Carpentry Core Contracting, Inc. $ 575,083.00 23-08-019-PDCC 7 Finish Carpentry & Casework Stolo Cabinets, Inc. $ 122,199.00 23-08-020-PDCC 8 Roofing Commercial Roofing Systems, Inc. $ 634,264.00 23-08-021-PDCC 9 Aluminum & Glazing M-Tech Glass, Inc. $ 131,093.00 23-08-022-PDCC 10 Metal Stud Framing, Insulation, Drywall, & Plaster Sierra Lathing Co., Inc. $ 275,795.00 23-08-023-PDCC DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 342 Palm Desert Community Center Renovation Project – IFB# 23-05-001-PW List of Contracts to be Awarded based on lowest responsive and responsible bidders. END) Total Base Bids Received: $ 5,730,029.00 Alternate #1 – BC#14 – Added Cost: $ 97,300.00_______ Total Bids + Alternate #1: $ 5,828,229.00 Bid Category # BC” #) Bid Category Description Contract Being Awarded To Contract Value Agreement # 11 Finish Flooring Del’s Flooring $ 114,427.00 23-08-024-PDCC 12 Ceramic Tile Continental Marble & Tile Co. $ 103,621.00 23-08-025-PDCC 13 Acoustical Ceiling & Treatment Southcoast Acoustical Interiors, Inc. $ 139,447.00 23-08-026-PDCC 14 Painting & Wall Covering Painting & Décor, Inc. $ 157,900.00 Alt. 1 + $97,300.00 23-08-027-PDCC 15 Fire Sprinkler JPI Development Group, Inc. $ 139,000.00 23-08-028-PDCC 16 Plumbing: Site & Building Continental Plumbing, Inc. $ 293,000.00 23-08-029-PDCC 17 HVAC Franklin Mechanical Systems, Inc. $ 502,500.00 23-08-030-PDCC 18 Electrical & Low Voltage RDM Electric Co., Inc. $ 633,000.00 23-08-031-PDCC 19 General Package Bogh Engineering, Inc. $ 625,700.00 23-08-032-PDCC DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 343 Contract No. C39690 8 EXHIBIT B ESTIMATED ADDITIONAL RENT PAYMENT SCHEDULE DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 344 Loan amount $12,000,000.00 Annual interest rate 3.00% Loan period in years 30 Start date of loan 1/1/2025 Payment Term Bi-Annually Number of payments 60 Total interest $5,624,743.67 Total cost of loan $17,624,743.67 Pmt No.Payment Date Beginning Balance Payment Principal Interest Ending Balance 1 1/1/2025 $12,000,000.00 $380,000.00 $200,000.00 $180,000.00 $11,814,375.71 2 7/1/2025 $11,814,375.71 $377,215.64 $200,000.00 $177,215.64 $11,628,287.36 3 1/1/2026 $11,628,287.36 $374,424.31 $200,000.00 $174,424.31 $11,441,733.79 4 7/1/2026 $11,441,733.79 $371,626.01 $200,000.00 $171,626.01 $11,254,713.84 5 1/1/2027 $11,254,713.84 $368,820.71 $200,000.00 $168,820.71 $11,067,226.34 6 7/1/2027 $11,067,226.34 $366,008.40 $200,000.00 $166,008.40 $10,879,270.11 7 1/1/2028 $10,879,270.11 $363,189.05 $200,000.00 $163,189.05 $10,690,844.00 8 7/1/2028 $10,690,844.00 $360,362.66 $200,000.00 $160,362.66 $10,501,946.82 9 1/1/2029 $10,501,946.82 $357,529.20 $200,000.00 $157,529.20 $10,312,577.40 10 7/1/2029 $10,312,577.40 $354,688.66 $200,000.00 $154,688.66 $10,122,734.56 11 1/1/2030 $10,122,734.56 $351,841.02 $200,000.00 $151,841.02 $9,932,417.11 12 7/1/2030 $9,932,417.11 $348,986.26 $200,000.00 $148,986.26 $9,741,623.86 13 1/1/2031 $9,741,623.86 $346,124.36 $200,000.00 $146,124.36 $9,550,353.63 14 7/1/2031 $9,550,353.63 $343,255.30 $200,000.00 $143,255.30 $9,358,605.23 15 1/1/2032 $9,358,605.23 $340,379.08 $200,000.00 $140,379.08 $9,166,377.45 16 7/1/2032 $9,166,377.45 $337,495.66 $200,000.00 $137,495.66 $8,973,669.11 17 1/1/2033 $8,973,669.11 $334,605.04 $200,000.00 $134,605.04 $8,780,479.00 18 7/1/2033 $8,780,479.00 $331,707.18 $200,000.00 $131,707.18 $8,586,805.90 19 1/1/2034 $8,586,805.90 $328,802.09 $200,000.00 $128,802.09 $8,392,648.63 20 7/1/2034 $8,392,648.63 $325,889.73 $200,000.00 $125,889.73 $8,198,005.97 21 1/1/2035 $8,198,005.97 $322,970.09 $200,000.00 $122,970.09 $8,002,876.69 22 7/1/20335 $8,002,876.69 $320,043.15 $200,000.00 $120,043.15 $7,807,259.60 23 1/1/2036 $7,807,259.60 $317,108.89 $200,000.00 $117,108.89 $7,611,153.46 24 7/1/206 $7,611,153.46 $314,167.30 $200,000.00 $114,167.30 $7,414,557.05 25 1/1/2037 $7,414,557.05 $311,218.36 $200,000.00 $111,218.36 $7,217,469.16 26 7/1/2037 $7,217,469.16 $308,262.04 $200,000.00 $108,262.04 $7,019,888.54 27 1/1/2038 $7,019,888.54 $305,298.33 $200,000.00 $105,298.33 $6,821,813.98 28 7/1/2038 $6,821,813.98 $302,327.21 $200,000.00 $102,327.21 $6,623,244.22 29 1/1/2039 $6,623,244.22 $299,348.66 $200,000.00 $99,348.66 $6,424,178.05 Loan Details Loan Summary Desert Recreation District - TI Loan Calculator Payments Based on 1/23/23 Construction Estimate - Less City Portion of Estimate DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 345 Pmt No.Payment Date Beginning Balance Payment Principal Interest Ending Balance 30 7/1/2039 $6,424,178.05 $296,362.67 $200,000.00 $96,362.67 $6,224,614.20 31 1/1/2040 $6,224,614.20 $293,369.21 $200,000.00 $93,369.21 $6,024,551.45 32 7/1/2040 $6,024,551.45 $290,368.27 $200,000.00 $90,368.27 $5,823,988.54 33 1/1/2041 $5,823,988.54 $287,359.83 $200,000.00 $87,359.83 $5,622,924.22 34 7/1/2041 $5,622,924.22 $284,343.86 $200,000.00 $84,343.86 $5,421,357.25 35 1/1/2042 $5,421,357.25 $281,320.36 $200,000.00 $81,320.36 $5,219,286.35 36 7/1/2042 $5,219,286.35 $278,289.30 $200,000.00 $78,289.30 $5,016,710.28 37 1/1/2043 $5,016,710.28 $275,250.65 $200,000.00 $75,250.65 $4,813,627.77 38 7/1/2043 $4,813,627.77 $272,204.42 $200,000.00 $72,204.42 $4,610,037.55 39 1/1/2044 $4,610,037.55 $269,150.56 $200,000.00 $69,150.56 $4,405,938.35 40 7/1/2044 $4,405,938.35 $266,089.08 $200,000.00 $66,089.08 $4,201,328.91 41 1/1/2045 $4,201,328.91 $263,019.93 $200,000.00 $63,019.93 $3,996,207.95 42 7/1/2045 $3,996,207.95 $259,943.12 $200,000.00 $59,943.12 $3,790,574.18 43 1/1/2046 $3,790,574.18 $256,858.61 $200,000.00 $56,858.61 $3,584,426.33 44 7/1/2046 $3,584,426.33 $253,766.39 $200,000.00 $53,766.39 $3,377,763.10 45 1/1/2047 $3,377,763.10 $250,666.45 $200,000.00 $50,666.45 $3,170,583.22 46 7/1/2047 $3,170,583.22 $247,558.75 $200,000.00 $47,558.75 $2,962,885.39 47 1/1/2048 $2,962,885.39 $244,443.28 $200,000.00 $44,443.28 $2,754,668.32 48 7/1/2048 $2,754,668.32 $241,320.02 $200,000.00 $41,320.02 $2,545,930.70 49 1/1/2049 $2,545,930.70 $238,188.96 $200,000.00 $38,188.96 $2,336,671.24 50 7/1/2049 $2,336,671.24 $235,050.07 $200,000.00 $35,050.07 $2,126,888.63 51 1/1/2050 $2,126,888.63 $231,903.33 $200,000.00 $31,903.33 $1,916,581.56 52 7/1/2050 $1,916,581.56 $228,748.72 $200,000.00 $28,748.72 $1,705,748.73 53 1/1/2051 $1,705,748.73 $225,586.23 $200,000.00 $25,586.23 $1,494,388.81 54 7/1/2051 $1,494,388.81 $222,415.83 $200,000.00 $22,415.83 $1,282,500.50 55 1/1/2052 $1,282,500.50 $219,237.51 $200,000.00 $19,237.51 $1,070,082.46 56 7/1/2052 $1,070,082.46 $216,051.24 $200,000.00 $16,051.24 $857,133.38 57 1/1/2053 $857,133.38 $212,857.00 $200,000.00 $12,857.00 $643,651.93 58 7/1/2053 $643,651.93 $209,654.78 $200,000.00 $9,654.78 $429,636.77 59 1/1/2054 $429,636.77 $206,444.55 $200,000.00 $6,444.55 $215,086.57 60 7/1/2054 $215,086.57 $203,226.30 $200,000.00 $3,226.30 $0.00 Page 2 of 2 DocuSign Envelope ID: E56CACDF-713E-4FFE-BB3E-F2A6C2C30339 346 AMENDMENT NO. 2 TO LEASE AGREEMENT THIS AMENDMENT NO. 2 TO LEASE AGREEMENT (“Second Amendment”) is entered as of February 27, 2025, by and between CITY OF PALM DESERT, a California municipal corporation (“Lessor”), and the DESERT RECREATION DISTRICT, a California special district (“Lessee”). Lessor and Lessee are sometimes referred to herein individually as a “Party” or collectively as the “Parties.” RECITALS WHEREAS, Lessor and Lessee previously entered into that certain Lease Agreement dated January 1, 2020 (the “Lease”), for the lease of the premises more particularly described therein located at 43900 San Pablo Avenue, Palm Desert, California 92260 (the “Premises”); WHEREAS, Lessor will agree to provide a tenant improvement allowance to provide reimbursement to Lessee for the cost of such Additional District Improvements, subject to the limitations set forth herein; WHEREAS, Lessor finds and determines that providing the tenant improvement allowance to facilitate the construction of the Additional District Improvements will enhance recreational opportunities available to the residents and taxpayers, and the Additional District Improvements will benefit the areas within the City of Palm Desert commonly known as Project Areas Nos. 2 and 3; NOW THEREFORE, Lessor and Lessee desire to amend the Lease on the terms and conditions as provided in this Second Amendment. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby mutually agree as follows: 1. Amendments to Lease. The Lease is hereby amended as follows: a. Additional Rent. A new Section 2.2 is hereby added to the Lease to read as follows: “2.2 Additional Rent. In addition to the Base Rent, Lessor shall pay to Lessor on each January 1 and July 1, commencing on July 1, 2025, additional rent in the amount necessary to fully amortize the aggregate amount of the Tenant Improvement Allowance which was disbursed by Lessor in semi-annual payments with an interest rate of 3% per annum over the remaining portion of the initial Term (the “Additional Rent”). An estimated Additional Rent payment schedule is attached hereto as Exhibit B. The interest component shall begin to accrue on the outstanding unamortized portion of the Tenant Improvement Allowance on the date Docusign Envelope ID: 0C228037-AE46-4ADD-9DE1-79AC7BCD052D 347 Contract No. C39690 2 that Lessor first disburses such Tenant Improvement Allowance or any portion(s) thereof. On or about June 1, 2025, Lessor shall provide to Lessee in writing the final amortization schedule for the payment of the Additional Rent based on the aggregate amount of the Tenant Improvement Allowance actually disbursed pursuant to this Second Amendment and taking into account the date of each disbursement with respect to calculating the interest component.” b. Tenant Improvement Allowance. A new Section 5.6 is hereby added to the Lease to read as follows: “5.6 Tenant Improvement Allowance. 5.6.2 Disbursement of Tenant Improvement Allowance. Provided the Lessee is not then in default under the terms of this Lease, the Lessor will disburse amounts from the Tenant Improvement Allowance from time to time (but not more than once per month) following Lessor’s receipt of (i) a written request by Lessee requesting a disbursement from the Tenant Improvement Allowance and specifying the amount requested, (ii) copies of invoices, including all reasonable detail relating thereto as may be requested by Lessor, for all work performed for which payment is being requested by Lessee, and (iii) evidence satisfactory to Lessor that Lessee has paid all invoices for which disbursement is being requested from Lessor. All requests for disbursement from the Tenant Improvement Allowance shall be made on or before May 1, 2025. 3. Effectiveness of Agreement. Except as explicitly modified by this Second Amendment, all of the terms and provisions of the Agreement are and remain in full force and effect. 4. Entire Agreement. This Second Amendment and the Agreement represent the final and entire agreement between Lessor and Lessee regarding the subject matter hereof and thereof, and may not be contradicted by evidence of prior, subsequent, or contemporaneous oral agreements of the Parties. 5. Modification. No amendment or modification hereto shall be valid and binding unless expressed in writing and executed by both Parties hereto. 6. Authority. Each individual executing this Second Amendment on behalf of an entity represents and warrants that he or she is duly authorized to execute and deliver this Second Amendment on its behalf. 7. Counterparts. This Second Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Second Amendment delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. Docusign Envelope ID: 0C228037-AE46-4ADD-9DE1-79AC7BCD052D 348 Contract No. C39690 3 IN WITNESS WHEREOF, the Parties have caused this Second Amendment to be executed by and through their respective authorized representatives, as of t he date first above written. LESSOR: CITY OF PALM DESERT, a California municipal corporation By: __________________________ Chris Escobedo Interim City Manager ATTEST By: __________________________ Anthony J. Mejia City Clerk LESSEE: DESERT RECREATION DISTRICT, A California special district By:_____________________________ Kevin Kalman General Manager Approved as to Form: By:_________________________________ Isra Shah Best Best & Krieger, LLP City Attorney Clerk QC: MN Contracts QC: ______ Insurance: _________ Initial review _________ Final approval Docusign Envelope ID: 0C228037-AE46-4ADD-9DE1-79AC7BCD052D 349 350 351 •Additional Foundation Repairs: During the course of construction, we encountered some additional needs related to the foundation. Specifically, additional concrete work was required to ensure the struc tural integrity of the restrooms and to address latent deficiencies in the foundation resulting from demolition adja cent to the lobby. This work, totaling $49,874, was negotiated with the contractor and authorized jointly through a series of cha nge orders. While our early correspondence indicated that the City's responsibility for foundation moisture mitigation and repairs would be $35,000, our current calculations, which include the items detailed above, show the actual total cost of the City's responsibility for the foundation and civil work associated with the project to be $373,659. Since the City has already kindly repaid the District from its own funds for a $35,000 portion of that obligation, we are now respectfully requesting an additional reimbursement of $338,659, either to be reduced from the amount of the District's loan obligation or repaid directly by the City. This amount represents the true expense for the foundation and civil improvements, and I sincerely apologize for neglecting to identify this as the City's responsibility during budget discussions. A chart representing the total cost of this project is included on Page 3. Please do not hesitate to reach out if you need any additional information or have any questions regarding this request. I truly appreciate your continued partnership and consideration in closing out this important community project. Warm regards, Kevin Kalman General Manager Desert Recreation District Page 2 of 3 352 353 354 AMENDMENT NO. 3 TO LEASE AGREEMENT THIS AMENDMENT NO. 3 TO LEASE AGREEMENT NO. C39690 (“Third Amendment”) is entered as of September 25, 2025, by and between CITY OF PALM DESERT, a California municipal corporation (“Lessor”), and the DESERT RECREATION DISTRICT, a California special district (“Lessee”). Lessor and Lessee are sometimes referred to herein individually as a “Party” or collectively as the “Parties.” RECITALS WHEREAS, Lessor and Lessee previously entered into that certain Lease Agreement dated January 1, 2020 (the “Lease”), for the lease of the premises more particularly described therein located at 43900 San Pablo Avenue, Palm Desert, California 92260 (the “Premises”); WHEREAS, Lessor will agree to provide a tenant improvement allowance to provide reimbursement to Lessee for the cost of such Additional District Improvements, subject to the limitations set forth herein; WHEREAS, Lessor finds and determines that providing the tenant improvement allowance to facilitate the construction of the Additional District Improvements will enhance recreational opportunities available to the residents and taxpayers, and the Additional District Improvements will benefit the areas within the City of Palm Desert commonly known as Project Areas Nos. 2 and 3; NOW THEREFORE, Lessor and Lessee desire to amend the Lease on the terms and conditions as provided in this Third Amendment. AGREEMENT NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereby mutually agree as follows: 1. Amendments to Lease. The Lease is hereby amended as follows: EXHIBIT “B” Exhibit “B” is hereby removed in its entirety and replaced with the attached Exhibit “B”. 3. Effectiveness of Agreement. Except as explicitly modified by this Third Amendment, all of the terms and provisions of the Agreement are and remain in full force and effect. 4. Entire Agreement. This Third Amendment and the Agreement represent the final and entire agreement between Lessor and Lessee regarding the subject matter h ereof 355 Contract No. C39690 2 and thereof, and may not be contradicted by evidence of prior, subsequent, or contemporaneous oral agreements of the Parties. 5. Modification. No amendment or modification hereto shall be valid and binding unless expressed in writing and executed by bo th Parties hereto. 6. Authority. Each individual executing this Third Amendment on behalf of an entity represents and warrants that he or she is duly authorized to execute and deliver this Third Amendment on its behalf. 7. Counterparts. This Third Amendment may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Third Amendment delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. [Signatures on following page] 356 Contract No. C39690 3 IN WITNESS WHEREOF, the Parties have caused this Third Amendment to be executed by and through their respective authorized representatives, as of the date first above written. LESSOR: LESSEE: CITY OF PALM DESERT, DESERT RECREATION DISTRICT, a California municipal corporation a California special district By: ____________________________ By: _____________________________ Chris Escobedo Gabriel Martin City Manager General Manager ATTEST: By: ____________________________ Anthony J. Mejia City Clerk Approved as to Form: By: ____________________________ Isra Shah Best Best & Krieger, LLP City Attorney Clerk QC:_______ Contracts QC:_______ Insurance: __________ Initial Review __________ Final Approval 357 EXHIBIT B-4 EXHIBIT B Final Project Close-Out Acknowledgement 358 EXHIBIT B-5 359 EXHIBIT B-6 360 EXHIBIT B-7 361 362 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Shawn Muir, Community Services Manager Veronica Chavez, Director of Finance REQUEST: AUTHORIZATION FOR THE CITY MANAGER TO APPROVE NOTICES TO PROCEED (NTPS) AND NOTICES OF COMPLETION (NOCS) FOR CONTRACTS UNDER $250,000 IN ALIGNMENT WITH THE CITY’S PURCHASING ORDINANCE RECOMMENDATION: Adopt a resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT AUTHORIZING THE CITY MANAGER TO APPROVE NOTICES TO PROCEED (NTPs) AND NOTICES OF COMPLETION (NOCs) FOR CONTRACTS UNDER $250,000 IN ACCORDANCE WITH THE CITY’S PURCHASING ORDINANCE.” BACKGROUND/ANALYSIS: The City of Palm Desert’s Purchasing Ordinance establishes contracting authority and procedures to ensure transparency, fiscal responsibility, and efficient operations. Under the ordinance, the City Manager is authorized to award contracts and make purchases up to $250,000 for those vendors who are vetted and listed on the approved vendor list. Currently, staff prepares separate agenda items for City Council consideration of administrative documents related to such contracts, including Notices to Proceed (NTPs) and Notices of Completion (NOCs). These items are largely procedural once the contract has been awarded within the City Manager’s authority. To streamline administrative processes and reduce agenda volume, staff recommends that the City Council delegate authority to the City Manager to approve NTPs and NOCs for administrative contracts up to $250,000. This will align with the City Manager’s existing contract authority and maintain consistency with the City’s Purchasing Ordinance. Delegating approval of NTPs and NOCs to the City Manager for contracts within their existing authority will:  Improve efficiency and reduce administrative burden on City Council agendas.  Ensure timely initiation and closeout of projects.  Maintain fiscal accountability under the Purchasing Ordinance, as contracts above $250,000 will continue to require Council approval. The City Council will continue to receive report on contracts and projects for transparency and oversight in the monthly Procurement Report provided by the Finance Department. 363 City of Palm Desert Adopt Resolution for City Manager Approval of NTPs and NOCs Page 2 of 2 Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: There is no fiscal impact associated with this action. Contract expenditures remain subject to adopted budget appropriations and the City’s Purchasing Ordinance. ATTACHMENTS: 1. Resolution No. 2025-___ 364 RESOLUTION NO. 2025-____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT AUTHORIZING THE CITY MANAGER TO APPROVE NOTICES TO PROCEED (NTPs) AND NOTICES OF COMPLETION (NOCs) FOR CONTRACTS UNDER $250,000 IN ACCORDANCE WITH THE CITY’S PURCHASING ORDINANCE WHEREAS, the City of Palm Desert Purchasing Ordinance establishes the City Manager’s authority to award and execute contracts up to $250,000; and WHEREAS, administrative documents such as Notices to Proceed (NTPs) and Notices of Completion (NOCs) are required to initiate and close out contracts; and WHEREAS, approval of such documents for contracts within the City Manager’s existing contract authority is procedural in nature and does not alter the fiscal or policy considerations of the contracts themselves; and WHEREAS, delegating this approval authority to the City Manager will promote administrative efficiency, reduce unnecessary items on Council agendas, and allow for timely project initiation and completion; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, as follows: SECTION 1. The City Manager is hereby authorized to approve Notices to Proceed (NTPs) and notices of completion (NOCs) for contracts up to $250,000, consistent with the authority provided in the City’s Purchasing Ordinance. SECTION 2. This resolution shall take effect immediately upon adoption. ADOPTED ON ________________, 2025. JAN C. HARNIK MAYOR ATTEST: ANTHONY J. MEJIA CITY CLERK 365 Resolution No. 2025-____ Page 2 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 366 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Brad Chuck, Public Works Superintendent Shawn Muir, Community Services Manager SUBJECT: APPROVE AMENDMENTS FOR LANDSCAPE MAINTENANCE SERVICES AGREEMENTS ON LMA 6, 9, AND 17 (PROJECTS NO. MLS00012, MLS00015, AND MLS00017) RECOMMENDATION: 1. Approve Amendment No. 1 to Contract No. C45050 with Horizon Professional Landscape, Inc., of Coachella, CA, in the amount of $4,704, increasing the annual contract amount to $168,000. 2. Approve Amendment No. 1 to Contract No. C45060 with Mariposa Landscapes, Inc., of Irwindale, CA, in the amount of $8,935.92, increasing the annual contract amount to $366,370.32. 3. Approve Amendment No. 1 to Contract No. C43140 with Vintage Associates, Inc., of Bermuda Dunes, CA, in the amount of $10,200, increasing the annual contract amount to $351,000. 4. Authorize the City Attorney to make necessary non -monetary changes to the amendments. 5. Authorize the City Manager to execute amendments, change orders, and execute any other documents necessary to effectuate the actions taken herewith. BACKGROUND/ANALYSIS: The City of Palm Desert (City) contracts with contractors to provide landscape maintenance services for its Landscape Maintenance Areas (LMA’s). LMA’s are designated landscape zones requiring regular maintenance throughout the community. Each year, staff receives requests for Consumer Price Index (CPI) adjustments. The three agreements being presented for amendments were approved by Council at varying times. While some agreements delegate authority to the City Manager to administratively approve CPI adjustments, the original staff reports for these three agreements did not include that provision; therefore, City Council approval is required for the current request for cost “CPI” adjustment. This year, vendors submitted cost “CPI” adjustment requests at varying times, each based on the data available at the time. The agreements do not all designate a deadline for cost adjustment requests. This is why the percentages requested differ by contractors. Staff recommend approving the requested adjustments, with an effective date of September 1, 2025. Future requests will need to be submitted in April, using the March CPI published by the Bureau of Labor Statistics for Riverside County All-Items. Contract No. C45050 – Horizon Professional Landscape (LMA 6): 367 City of Palm Desert Approve Amendments for LMA 6, 9, and 17 Page 2 of 4 On April 13, 2023, the City Council approved a three -year Maintenance Services Agreement with Horizon Professional Landscape , Inc., (Horizon) for Landscape Maintenance Area 6 (LMA 6). The contract was approved for $127,776. annually, and an option for two additional one-year extensions. LMA 6 encompasses several landscaped areas throughout and surrounding the Desert Willow Golf Resort. This includes the roundabout planters and medians located along Desert Willow Golf Resort, as well as the landscaped overflow parking lot near the intersec tion of Country Club Drive and Desert Willow Drive. It also includes native plantings along internal parkways and roadways, as well as landscaped perimeter areas. In Fiscal Year (FY) 2024-25, a new landscaped parking lot was added to the service area via change order to increase the contract by $31,680. annually. A 3% cost adjustment was also included in the Change Order for an additional $320 per month ($3,840 annually). These changes brought the total annual contract amount to $163,296. Horizon has submitted a request for a 2.9% contract adjustment, citing increased operating costs related to fuel and labor. While historically such increases have used “CPI adjustments,” this request is based on actual cost impacts rather than a specific Bureau of Labor S tatistics index. The proposed adjustment would add $4,704 annually, bringing the new annual amount to $168,000. The CPI for All Items in Riverside County in March 2025 was 3.1%, therefore making this request within the normal adjustment rate. A summary of these adjustments is provided in the table below: Item Monthly Cost Annual Cost Yr 1 - Original Contract $10,648 $127,776 Change Order No. 1 (New Area) $2,640 $31,680 Change Order No. 1 (CPI Adjustment) $320 $3,840 Yr 2 - Revised Contract $13,608 $163,296 Proposed Amendment No. 1 (CPI 2.9%) $392 $4,704 Proposed Yr 3 Revised Contract Amount $14,000 $168,000 Contract No. C45060 – Mariposa Landscapes, Inc. (LMA 9): A three-year Maintenance Services Agreement with Mariposa Landscapes, Inc., (Mariposa) was approved on April 13, 2023, for Landscape Maintenance Area 9 (LMA 9). The contract was approved for $357,434.40 annually, and an option for two additional one-year extensions. LMA 9 includes several landscaped areas: the medians along El Paseo, Baja Park and Entrada del Paseo, the streetscape improvements along San Pablo Avenue (Phases 1 and 2), Alessandro Alley, and the grounds of the Portola Community Center and the Palm Desert Historical Society. Mariposa has submitted a request for a 2 .5% contract adjustment, citing increased operating costs related to fuel, materials, and labor. While historically these requests have used “CPI adjustments,” this request is based on actual cost impacts rather than a specific Bureau of Labor Statistics index. The proposed adjustment totals $8,935.92 annually, bringing the new annual 368 City of Palm Desert Approve Amendments for LMA 6, 9, and 17 Page 3 of 4 contract amount to $366,370.32. The CPI for All Items in Riverside County in March 2025 was 3.1%, therefore making this request within the normal adjustment rate. A breakdown of the adjustment is provided in the table below: Item Monthly Cost Annual Cost Yr 1 & 2 - Original Contract $29,786.20 $357,434.40 Proposed Amendment No. 1 – CPI (2.5%) $744.66 $8,935.92 Proposed Yr 3 Revised Contract Amount $30,530.86 $366,370.32 Contract No. C43140 – Vintage Associates, Inc. (LMA 17): On May 26, 2022, the City Council approved a five-year Maintenance Services Agreement with Vintage Associates, Inc. (Vintage) for Landscape Maintenance Area 17 (LMA 17), with an annual contract amount of $340,800., including an option for three additional one-year extensions with an annual CPI adjustment upon request. However, City Manager authorization to approve future CPI adjustments was not included in the original staff report. For this reason, staff is bringing the item back to City Council to request authorization to streamline extension approvals. LMA 17 includes a variety of public facilities and landscaped areas, such as Civic Center Park, the Tri-Cities Sports Fields, Magnesia Falls City and Shared Park, the perimeter landscaping around City Hall, the Park View Office Complex, as well as the state building grounds and the San Pascual Channel. Vintage has submitted a request for a 3% contract adjustment to reflect increased operating costs. While historically these requests have used “CPI adjustments,” this request is based on actual cost impacts rather than a specific Bureau of Labor Statistics index. The proposed adjustment would add $10,200 annually, bringing the new annual contract amo unt to $351,000. The CPI for All Items in Riverside County in March 2025 was 3.1%, therefore making this request within the normal adjustment rate. The breakdown is shown in the table below: Item Monthly Cost Annual Cost Yr 1-3 - Original Contract $28,400 $340,800 Proposed Amendment No. 1 – CPI (3%) $850 $10,200 Proposed Yr 4 Revised Contract Amount $29,250 $351,000 The cost adjustment requests included in this report are being presented later than anticipated requests were submitted at varying times for the FY 2025-26 service period. To improve consistency and transparency, staff recommends amending each agreement to include and standardize an April 1 deadline to submit requests, using the March CPI posted by BLS for Riverside County All-Items, to ensure all CPI adjustments can be reviewed and considered prior to the start of the new fiscal year. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: 369 City of Palm Desert Approve Amendments for LMA 6, 9, and 17 Page 4 of 4 Sufficient budget has been included in the approved FY 2025-26 Financial Plan in the various Public Works Department operations budgets to cover these requests; therefore, there is no additional financial impact to the General Fund with this action. The table below outlines the budgets and adjusted contract amount for each area: Accounts / Description FY 2025/26 Budget Adjusted Contract Amount Balance Available 1104610-4332001 $285,000 1104610-4337100 $100,000 1104614-4337001 $320,000 1104614-4392101 $90,000 4414195-4332000 $150,000 C45050 LMA 6 – Horizon $168,000.00 C45060 LMA 9 – Mariposa $366,370.32 C43140 LMA 17 - Vintage $351,000.00 Total $945,000 $885,370.32 $59,629.68 Future year extensions and CPI requests will be contingent upon approval of the associated Annual Budget. ATTACHMENTS: 1. LMA 6 Horizon Professional Landscape Request 2. LMA 9 Mariposa Landscapes, Inc. Request 3. LMA 17 Vintage Associates, Inc. Request 4. Amendment No. 1 Horizon Professional Landscape, Inc. 5. Amendment No. 1 Mariposa Landscapes, Inc. 6. Amendment No. 1 Vintage Associates, Inc. 370 HORIZON PROFESSIONAL LANDSCAPE INC 48727 Charlton Peak Coachella, CA 92236 CA LIC # 799029 Ph (760) 333-9371 Fax (760) 398-2250 Hello Brad. We are requesting a price increase for Landscape Maintenance of LMA 6 for the year 2025-2026 CONTRACT No. C45050 (LMA 6) We would like to apply for a 2.9% Consumer Price Index increase. Labor and fuel cost have gone up. Current contract price: $13,608.00 per month $163,296.00 for the year 2.9% increase: $ 392.00 per month $4,704.00 for the year $14,000.00 per month $168,000.00 for the year Respectfully __Rafael Mendoza L___ Rafael Mendoza June 17,2025 President 371 372 373 374 375 376 Contract No. ________ AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND HORIZON PROFESSIONAL LANDSCAPE 1. Parties and Date. This Amendment No. 1 (“Amendment”) to the MAINTENANCE SERVICES AGREEMENT is made and entered into as of September 25, 2025 by and between the City of Palm Desert, a municipal corporation organized and operating under the laws of the State of California (“City”), and Horizon Professional Landscape , Inc., A CORPORATION with its principal place of business at 48727 Charlton Peak, Coachella, CA 92236 , (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties .” 1.1 City Council Approval. On September 25, 2025, City Council approved the award of this A mendment to the Contractor above. 2. Recitals. The Parties entered into an agreement titled MAINTENANCE SERVICES AGREEMENT , dated April 13, 2023 (“Agreement”) for the purpose of retaining the services of Landscape Maintenance in Area No.6 . Amendment Authority. This Amendment is authorized pursuant to Section 3.5.9 of the Agreement. On July 1, 2024, Change Order No. 1 was executed to include landscape maintenance of a new parking lot and to provide a 3% Consumer Price Index increase totaling an increase of $35,520.00, which increased total compensation in Section 3.3.1 to $163,296.00. 3. Terms. Amendment. The Agreement is hereby amended as follows: Section 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 annually without written approval of the City Council or City Manager, as applicable. Exhibit “C” Compensation. The total annual compensation shall not exceed 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 (All Items) rate for the 12-month period ending 377 Contract No. ________ 2 March, upon request, with written approval from the City Council or City Manager following FY 2025 -26, as applicable. Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment. Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligat ions they have undertaken pursuant to this Amendment. Severability. If any portion of this Amendment is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. Counterparts. This Amendment 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] 378 Contract No. ________ 3 379 Contract No. ________ 4 Clerk QC: ________ Contracts QC: ________ Insurance: __________ Initial Review ___________ Final Approval SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND HORIZON PROFESSIONAL LANDSCAPE, INC. IN WITNESS WHEREOF, each of the Parties has caused this Amendment to be executed on 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 and Krieger, LLC City Attorney HORIZON PROFESSIONAL LANDSCAPE, INC., A CORPORATION By: Rafael Mendoza President By: Eric Mendoza Lee Vice President 380 Contract No. ________ AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND MARIPOSA LANDSCAPES, INC. 1. Parties and Date. This Amendment No. 1 (“Amendment”) to the MAINTENANCE SERVICES AGREEMENT is made and entered into as of September 25, 2025 by and between the City of Palm Desert, a municipal corporation organized and operating under the laws of the State of California (“City”), and Mariposa Landscapes, Inc., A CORPORATION with its principal place of business at 6232 Santos Diaz Street, Irwindale, CA 91702, (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties .” 1.1 City Council Approval. On September 25, 2025, City Council approved the award of this Amendment to the Contractor above. 2. Recitals. The Parties entered into an agreement titled MAINTENANCE SERVICES AGREEMENT , dated April 13, 2023 (“Agreement”) for the purpose of retaining the services of Landscape Maintenance in Area No. 9. Amendment Authority. This Amendment is authorized pursuant to Section 3.5.9 of the Agreement. 3. Terms. Amendment. The Agreement is hereby amended as follows: Section 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 annually without written approval of the City Council or City Manager, as applicable. Exhibit “C” Compensation. The total annual compensation shall not exceed 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 (All Items) for the 12-month period ending March upon request, with written approval from the City Council or City Manager following FY 2025- 26, as applicable. Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the 381 Contract No. ________ 2 Parties under this Amendment. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment. 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. Severability. If any portion of this Amendment is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. Counterparts. This Amendment may be executed in duplicate originals, each of which is deemed to be an original, but when taken together sha ll constitute but one and the same instrument. [Signatures on Following Page] 382 Contract No. ________ 3 383 Contract No. ________ 4 Clerk QC: ________ Contracts QC: ________ Insurance: __________ Initial Review ___________ Final Approval SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND MARIPOSA LANDSCAPES, INC. IN WITNESS WHEREOF, each of the Parties has caused this Amendment to be executed on 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 and Krieger, LLC City Attorney MARIPOSA LANDSCAPES, INC., A CORPORATION By: Terry Noriega President By: Antonio Valenzuela Secretary 384 Contract No. ________ AMENDMENT NO. 1 TO THE MAINTENANCE SERVICES AGREEMENT BETWEEN THE CITY OF PALM DESERT AND MARIPOSA LANDSCAPES, INC. 1. Parties and Date. This Amendment No. 1 (“Amendment”) to the MAINTENANCE SERVICES AGREEMENT is made and entered into as of September 25, 2025 by and between the City of Palm Desert, a municipal corporation organized and operating under the laws of the State of California (“City”), and Vintage Associates, Inc., A CORPORATION with its principal place of business at 78-755 Darby Road, Bermuda Dunes, CA 92203, (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties .” 1.1 City Council Approval. On September 25, 2025, City Council approved the award of this Amendment to the Contractor above. 2. Recitals. The Parties entered into an agreement titled MAINTENANCE SERVICES AGREEMENT , dated May 26, 2022 (“Agreement”) for the purpose of retaining the services of Landscape Maintenance in Area No. 17. Amendment Authority. This Amendment is authorized pursuant to Section 3.5.9 of the Agreement. 3. Terms. Amendment. The Agreement is hereby amended as follows: Section 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 annually without written approval of the City Council or City Manager, as applicable. Exhibit “C” Compensation. The total annual compensation shall not exceed 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 (All Items) for the 12-month period ending March upon request, with written approval from the City Council or City Manager following FY 2025-26, as applicable. Continuing Effect of Agreement. Except as amended by this Amendment, all other provisions of the Agreement remain in full force and effect and shall govern the actions of the Parties under this Amendment. From and after the date of this Amendment, whenever the term 385 Contract No. ________ 2 “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment. Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligat ions they have undertaken pursuant to this Amendment. Severability. If any portion of this Amendment is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect. Counterparts. This Amendment 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] 386 Contract No. ________ 3 387 Contract No. ________ 4 Clerk QC: ________ Contracts QC: ________ Insurance: __________ Initial Review ___________ Final Approval SIGNATURE PAGE TO MAINTENANCE SERVICES AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND VINTAGE ASSOCIATES, INC. IN WITNESS WHEREOF, each of the Parties has caused this Amendment to be executed on 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 and Krieger, LLC City Attorney VINTAGE ASSOCIATES, INC., A CORPORATION By: Kyle Gritters President By: David Smith Secretary 388 Page 1 of 2 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Shawn Muir, Community Services Manager SUBJECT: APPROVE CHANGE ORDER NO. 1 TO AMEND CONTRACT NO. C43100 WITH MULTI W SYSTEMS, INC., FOR PUMP PREVENTATIVE MAINTENANCE SERVICES AT THE PALM DESERT AQUATIC CENTER (PROJECT NO. MLS00020) RECOMMENDATION: 1. Approve Change Order No. 1 to amend Contract No. C43100 with Multi W Systems, Inc., to add preventative maintenance services to the Palm Desert Aquatic Center pumps and increase the annual amount to $63,000. 2. Increase allowable extra work in an amount not to exceed $35,000 per fiscal year. 3. Authorize the City Attorney to make necessary non -monetary changes to the agreement. 4. Authorize the City Manager to execute the change order, the optional three extensions, and any documents necessary to effectuate the actions taken herewith. BACKGROUND/ANALYSIS: The Civic Center Campus, Hovley Soccer Park, and Freedom Park utilize booster pumps to compensate for low water pressure and provide irrigation for more than 87 acres of turf and landscaped areas. Each location operates a site -specific pumping system designed to reduce irrigation times and increase water-use efficiency. Likewise, the pool pumps at the Palm Desert Aquatic Center (PDAC) require regular preventative maintenance to support continuous operation of the facility. Preventative maintenance and timely replacement of these pumps are critical to preserving City assets, avoiding costly emergency repairs, and ensuring uninterrupted service to the community. The City of Palm Desert (City) currently maintains two separate agreements with Multi W Systems, Inc., one for irrigation pump maintenance at three City parks (Contract No. C43100), and another for pump maintenance and repairs at the Palm Desert Aquatic Center (Contract No. A43722). With the expiration of Contract No. A43722 for PDAC pump services, staff recommend consolidating responsibilities into the irrigation pump Contract No. C43100. Change Order No. 1 adds quarterly PDAC pump maintenance at an annual cost of $20,000 (4 x $5,000/quarter), increasing the annual contract value from $43,000 to $63,000. The quote and detailed scope of services can be found in Attachments 3 and 4, respectively. Staff also recommends increasing the allowable “extra work” authorization from $17,000 to $35,000 per fiscal year to ensure sufficient funding is available for unanticipated pump repairs or component replacements. The increase in as-needed allowable extras is intended to address any parts, materials, or repair work related to the aquatic center’s seven water pumps quickly and efficiently to ensure continuity of service. 389 City of Palm Desert Change Order No. 1 to Contract No. C43100 Page 2 of 2 This consolidation provides continuity of service, simplifies contract administration, and ensures that all City pump maintenance needs are addressed under a single agreement. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Funds totaling $120,000 are part of the Public Works Department operations budget for the Civic Center and Palm Desert Aquatic Center pumps, as part of the approved Fiscal Year 2025-26 Financial Plan. The new contract amount, including allowable extra work, totals $98,000. Therefore, there is no further financial impact to the General Fund. The budget and costs for each area are outlined in the table below: Account No. Location Budget Expenses Balance 1104610-4332001 Civic Center Park $40,000 $33,000 1104611-4332001 Other Parks $30,000 $30,000 2424595-4400100 Palm Desert Aquatic Center $50,000 $35,000 Total: $120,000 $98,000 $22,000 *Although the amounts listed are intended to cover the costs, actual distribution will vary based on actual use. Future year amounts will be included in annual budget requests and extensions will be contingent on budget approval. ATTACHMENTS: 1. C43100 Agreement 2. Change Order No. 1 3. Mutli W Systems Quote 4. Exhibit A – Scope of Services and Special Provisions 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 CITY OF PALM DESERT CONTRACT CHANGE ORDER Justification: YES NO Description of Changes Decrease In Contract Price Increase In Contract Price Totals: Net Change in Contract Price: Original Contract Amount: + Contingency: + Total Budget Amount: Less: Expend. / Encumb. To Date: - Less: This Change Order Amount: - Remaining for Project: Contingency: + Less: Prior Change Order(s): - Less: This Change Order: - Remaining of Contingency: __________________________________________________________ dollars and ___/100 (___________) Revised Contract Total: ___________________________ Contractor s hall c onstruct, furnish all supervision, labor, services, equipment, and materials, and perform all work necessary or required to fully complete the changes to the Contract described in this Change Order for the amount agreed upon between the Contractor and the City of Palm Desert (“City”). Contract Purpose: Contractor Name: Contract No / P.O. #: Change Order No.: Contingency: Account No.: Project No.: Vendor No.: YES NO Project Manager: This Change Order is hereby executed on: C43100 24251319 1 4 Multiple MLS00020 V0015627 Pump Preventative Maintenance Multi W Systems, Inc. Shawn Muir / Brad Chuck September 25, 2025 Increase in scope to add Palm Desert Aquatic Center Pumps to maintenance $ 20,000.00 schedule. $ 0.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 $ 20,000.00 The circulation pumps for the three pools and two waterslides at the Palm Desert Aquatic Center are currently maintained only on an as needed basis. This is not optimum, as regular maintenance is the preferred method for pump upkeep, rather than response to failure. Staff are requesting to add these pumps to the quarterly maintenance schedule that is already in place for various irrigation pumps throughout the City (see attached Exhibit A). In addition, staff request to increase the allowable extra work under this agreement to an amount not to exceed $25,000 per fiscal year for repairs and replacements as needed. $ 43,000.00 $ 0.00 $ 0.00$ 43,000.00 $ 43,000.00 -$ 20,000.00 $ 0.00 -$ 20,000.00 The amount of the contract will be increased by the sum of: Twenty Thousand 00 $ 20,000.00 $ 63,000.00 423 Continued from Front Contract No. _________ Contract Change Order No. ___ Contract Time Extension: __________________________ Contractor accepts the terms and conditions stated above as full and final settlement of any and all claims arising out of or related to the subject of this Change Order and acknowledges that the compensation (time and cost) set forth herein comprises the total compensation due for the work or change defined in the Change Order, including all impact on any unchanged work. Execution of this Change Order by the Contractor constitutes a binding accord and satisfaction that fully satisfies, waives, and releases the City from all claims, demands, costs, and liabilities, in contract, law or equity, arising out of or related to the subject of the Change Order, whether known or unknown, including but not limited to direct and indirect costs and/or damages for delay, disruption, acceleration, loss of productivity, and stacking of trades, as well as any and all consequential damages. The adjustments to the Contract Price and Contract Time in this Change Order constitute the entire compensation and/or adjustment thereto due to Contractor, including but not limited to all direct, indirect, consequential, profit, labor, equipment, tools, idle time, incidentals, and overhead (field and home office) costs, due to Contractor arising out of or related to the change in the work covered by this Change Order. The Contractor hereby releases and agrees to waive all rights, without exception or reservation of any kind whatsoever, to file any further claim or request for equitable adjustment of any type, for any reasonably foreseeable cause that shall arise out of, or as a result of, this Change Order and/or its impact on the remainder of the work under the Contract. This Change Order will become a supplement to the Contract and all provisions will apply hereto. 1. REQUESTED BY:______________________ Department Director 2. ACCEPTED BY:______________________ Contractor 3. CERTIFIED FUNDS AVAILABLE ______________________ Finance Director 4. APPROVED BY:______________________ Interim City Manager NOTE: No payments will be made prior to City Manager or Council approval QC: _____ C43100 1 N/A 424 Date:9/15/2025 Quotation #:38952YHR2 To:City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Brad Chuck Ship to:City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Brad Chuck Terms:N30 Subject:Maintenance & Hourly Rates Total Subtotal Sales Tax (8.75%) Tel.:760-346-0611Fax: E-mail:rchavez@cityofpalmdesert.org Item DescriptionQ'ty Unit Price Total Field labor Civic Center Park quarterly maintenance, scope of work to include: - Vertical turbine irrigation pumps motor lubrication oil/grease check. Lubricate per motor manufacturer’s instruction. - Vacuum cleaning service on (3) VFD cabinets. - Infrared inspection of pump power circuit for potential issues. - Measure and record (3) irrigation pumps – pump run current (A) and voltage (V). - Verify SCADA system is reading and logging irrigation pump system status. Calibrate SCADA and/or pump system as needed. - Simulate alarm condition and verify alarm messages are received by email and/or text message. - Operate irrigation pumps in hand mode and visually inspect each pump. For example: noise level, pump packing rings condition, pressure reading, and flow rate reading. - Adjust and tighten irrigation pump packing glands as needed. - Visually inspect and record fertigation pump – pump run current (A) and voltage (V). - Lubricate fertigation pump’s motor bearings per motor manufacturer’s instruction. - Check and record well pump – pump run current (A) and voltage (V). - If pressure gauges are available, check and record well pump discharge pressure (PSI). - Check and clean (1) Amiad SAF-6000 water filter. - Test run vertical turbine irrigation pumps and well pump in automatic mode and verify proper operation. - Perform vacuum cleaning in Irrigation Pump Room and Well Pump Room (Underground). - Submit Maintenance Service Report to Customer. 1 4,750.00 4,750.00 Page 1 425 Date:9/15/2025 Quotation #:38952YHR2 To:City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Brad Chuck Ship to:City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Brad Chuck Terms:N30 Subject:Maintenance & Hourly Rates Total Subtotal Sales Tax (8.75%) Tel.:760-346-0611Fax: E-mail:rchavez@cityofpalmdesert.org Item DescriptionQ'ty Unit Price Total Field labor Hovley Soccer Park quarterly maintenance, scope of work to include: - Visually check (1) irrigation booster pump and (1) pressure regulating valve. - If pressure gauges are available, check upstream and downstream pressure of pressure regulating valve. Fine tune pressure setting by the pilot valve as needed. - Test operation of the irrigation pump in hand and timer modes and verify proper operation. - Measure and record the irrigation pump – pump run current (A) and voltage (V). - Check and lubricate irrigation pump’s motor bearings per motor manufacturer’s instruction. - Infrared inspection of pump power circuit for potential issues. - Vacuum cleaning service for the irrigation pump control panel and irrigation pump enclosure. - Fine tune (1) pressure regulating valve’s pilot valve pressure setting as needed. - If pressure gauges are available, check and record water pressure at upstream and downstream of pressure regulating valve. - Inspect and record irrigation pump’s suction and discharge pressure. - Visually inspect and record fertigation pump – pump run current (A) and voltage (V). - Lubricate fertigation pump’s motor bearings per motor manufacturer’s instruction. - Submit Maintenance Service Report to Customer. 1 3,000.00 3,000.00 Field labor Freedom Park quarterly maintenance, scope of work to include: - Visually inspect (2) irrigation booster pumps and inline master valves. - Test run irrigation booster pumps in hand and timer modes, and verify proper operation. - Measure and record (2) irrigation pumps – pump run current (A) and voltage (V). - Inspect and lubricate (2) irrigation pumps’ motor bearings per motor manufacturer’s instruction. - Infrared inspection of pump power circuit for potential issues. - Inspect and record irrigation pump’s suction and discharge pressure. - Vacuum cleaning service for the irrigation pump control panel and irrigation pump enclosure. - Submit Maintenance Service Report to Customer. 1 3,000.00 3,000.00 Page 426 Date:9/15/2025 Quotation #:38952YHR2 To:City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Brad Chuck Ship to:City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: Brad Chuck Terms:N30 Subject:Maintenance & Hourly Rates Total Subtotal Sales Tax (8.75%) Tel.:760-346-0611Fax: E-mail:rchavez@cityofpalmdesert.org Item DescriptionQ'ty Unit Price Total Field labor Aquatic Center quarterly maintenance, scope of work to include: - Motor lubrication oil/grease check for (3) pool pumps, (2) water slide pumps, and (1) water feature pump. Lubricate per motor manufacturers instruction. - Vacuum cleaning service on (6) VFDs. - Infrared inspection of pump power circuit for potential issues. - Measure and record (6) pumps – pump run current (A) and voltage (V). - Operate pumps in hand mode and visually inspect each pump. For example: noise level, pump packing rings condition, pressure reading, and flow rate reading. - Check and record sump pump – pump run current (A) and voltage (V). - Perform vacuum cleaning in Pump Room. - Submit Maintenance Service Report to Customer. 1 5,000.00 5,000.00 Page 1. Freight is not included and shall be added unless otherwise mentioned in this quote. 2. Unloading by others. 3. uotation is valid for 30 days. 4. 30 restocking fee to be charged for all cancelled items. We appreciate your interest in our products and please feel free to contact us should you need further information on this matter. Sincerely yours, Yi-ang Huang, Application/lectrical ngineer, Yikang@multiwsystems.com 15,750.00 15,750.00 0.00 427 428 PREVENTATIVE PUMP MAINTENANCE SCOPE OF SERVICES 1.GENERAL SCOPE OF WORK The City of Palm Desert currently has three (3) parks and an aquatic center that utilize various pumps, Variable Frequency Drives, SCADA systems, filters, screens, and other ancillary equipment. The pumps are essential to circulate pool water and features, and irrigate highly visited areas such as baseball fields, soccer fields, amphitheater, open turf spaces, and other greenbelt and landscaped areas. Maintaining the irrigation pump systems is critical to ensure city facilities, parks and landscape are maintained at a world class level. The City is looking for a qualified Contractor to inventory the City's pump infrastructure and develop a Preventive Maintenance Program and perform the necessary work to keep these city assets operational. Contractor shall also maintain pump rooms, enclosed areas, and adjacent critical areas clean and free of debris. Maintenance shall be performed a minimum of once every three (3) months. Contractor shall also supply the necessary tools, equipment, and qualified staff necessary to perform the job. In addition, contractor will report issues discovered and submit estimates for repairs. 2.SERVICES TO BE PERFORMED City Staff conducted a preliminary inventory of the pump rooms at City parks and stations and noted: Six (6) irrigation booster pumps, three (3) VFD’s, two (2) SCADA systems, and one (1) well pump. In addition, pressure regulating valves, filters, fertigation pumps, and supporting components were also noted. Equipment at the Palm Desert Aquatic Center includes three (3) pool pumps, two (2) water slide pumps, one (1) water feature pump, and six (6) VFDs, Contractor shall conduct an independent inventory of the pump rooms and irrigation systems and submit a Preventive Maintenance Program Proposal based on the findings. Equipment locations and approximate quantities: A.Civic Center Park: Three (3) irrigation booster pumps, three (3) VFD’s, two (2) SCADA systems, Amiad filter, and one (1) well pump. In addition, there is a fertigation system at this location. B.Hovley Soccer Park: One (1) irrigation booster pump and one (1) pressure regulating valve. In addition, there is a fertigation system at this location. C.Freedom Park: Two (2) irrigation booster pumps and inline master valves. D.Palm Desert Aquatic Center: Three (3) pool pumps, two (2) water slide pumps, one (1) water feature pump, and six (6) VFDs, Contractor is to perform industry standard maintenance on a quarterly basis, including but not limited to: •Cleaning the filters associated with the pumps to ensure proper flow. •Checking amps on motor controls and VFD’s, 429 • Checking seals and gaskets. • Oil and lubricating equipment per manufacturer's recommendations. • SCADA systems review and testing. • Checking valves, hoses, and equipment to ensure they operate correctly. • Contractor shall be on-site to respond to emergency repairs within 24 hours of receiving notification. 3. PERFORMANCE OF EXTRA WORK • Contractor shall not perform extra work without City authorization. • Authorization shall be in writing, on a completed City Work Request Form, and signed by an authorized City representative. • Additional Work labor shall be paid at the hourly rate listed on the Price Sheet Schedule • unless otherwise agreed upon. • Additional Work materials shall be paid at the rate of “cost plus fifteen percent (15%) mark- up. • Invoicing for Additional Work shall include an itemized invoice describing the unit cost and/or labor hours at the contract rate, materials costs, and copies of materials invoices from the supplier(s). 430 PREVENTATIVE PUMP MAINTENANCE SPECIAL PROVISIONS 1. PRE-COMMENCEMENT CONFERENCE A pre-commencement conference shall be conducted at the Palm Desert City Hall, 73-510 Fred Waring Drive, Palm Desert, California, 92260 prior to the start of construction. The job-site foreman or superintendent assigned by the Contractor for this project shall be present at the Pre- commencement Meeting. The Contractor shall prepare a tentative maintenance schedule for submission and review at the Pre-Construction Meeting. The discussion shall include but not be limited to: project supervision; progress schedules and reports; payments to Contractor; safety; and other anticipated issues pertinent to the contract. At this conference, the Contractor shall designate, in writing, a representative who shall have authority to act for the Contractor with the City of Palm Desert. An alternate representative may be designated. The representative or alternate shall be present at the job site whenever work is in progress or whenever actions of the elements necessitate its presence to take measures necessary to protect the project, persons, or property. Any order or communication given to this representative shall be deemed delivered to the Contractor. In the absence of the Contractor or its designated representative, necessary or desirable directions or instructions may be given by the Engineer to the superintendent or person having charge of the specific work to which the order applies. Such order shall be complied with promptly and referred to the Contractor or its representative. Those attending the meeting shall include, but not be limited to the following: 1. Contractor 2. City of Palm Desert Department Project Manager 3. City of Palm Desert Landscape Staff 4. Pertinent Subcontractor(s) 2. PUBLIC CONVENIENCE The Contractor shall conduct operations as to offer the least possible obstruction and inconvenience to the public and shall have under active maintenance no greater length or amount of work then can be prosecuted properly with due regard to the rights of the public. Contractor must obey City directives. 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. 3. HOURS OF WORK Unless otherwise approved by City of Palm Desert, Contractor shall not work outside the established hours of operation under this contract: 431 May 1 through September 30 Weekdays (MTWTF): 5:30 AM to 7:00 PM Weekends (Saturday): *8:00 AM to 5:00 PM Weekends (Sunday): No Work Government Code Holidays: No Work October 1 through April 30 Weekdays (MTWTF): 7:00 AM to 5:30 PM Weekends (Saturday): *8:00 AM to 5:00 PM Weekends (Sunday): No Work Government Code Holidays: No Work *Work is permitted on Saturdays only with prior approval by City of Palm Desert or its agent. Work is not permitted on Sundays and during City of Palm Desert holidays. Failure to observe these work hours may result in a citation being issued to the offenders by the police department. (Emergency work directed by City of Palm Desert is not held to these restrictions.) 4. UTILITY REQUIREMENTS The Contractor is advised of the existence of the utility notification service provided by UNDERGROUND SERVICE ALERT (USA). USA member utilities will provide the Contractor with the precise locations of their substructures in the construction area when the Contractor gives at least 48-hours’ notice to the Underground Service Alert by calling 1-800-227-2600. The location and existence of utilities and improvements shown on the plans are approximate and taken from available records. The Contractor shall verify the location of existing improvements and shall take all precautions to protect them whether shown or not. The California Public Utilities Commission mandates that, in the interest of public safety, main line gas valves be maintained in a manner to be readily accessible and in good operating condition. The Contractor shall notify the Southern California Gas Company's Headquarters Planning Office at (909) 335-7581 at least two (2) working days prior to the start of construction. The Contractor shall coordinate installation of utility facilities within the project with the inspector listed above as contact. Requests for information not shown on the specific utility installation plan shall be directed to the contact for that utility. The exact location and identification of all existing utilities shall be determined by the Contractor prior to the start of any work. The Contractor shall protect-in-place all utilities unless otherwise noted on the plans. 5. USE OF AND PROTECTION OF PREMISES AND REMOVAL OF DEBRIS The Contractor shall be responsible for all damages to persons or property that occurs as a result of the work. Contractor shall be responsible for the proper care and protection of all materials delivered and work performed until completion and final acceptance by the City of Palm Desert. All work shall be solely at the Contractor’s risk. Contractor shall adequately protect adjacent property from settlement or loss of lateral support as necessary. Contractor shall comply with all applicable safety laws and building codes to prevent accidents or injury to persons on, about, or 432 adjacent to the Project site where work is being performed. Contractor shall erect and properly maintain at all times, as required by field conditions and progress of work, all necessary safeguards, signs, barriers, lights, and watchmen for protection of workers and the public, and shall post danger signs warning against hazards created in the course of construction. 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 City of Palm Desert or City of Palm Desert’s agent. 6. CHANGES IN THE WORK/EXTRA WORK Contractor shall make no changes in the work without written direction from City of Palm Desert. Contractor shall not be compensated for any change made without City of Palm Desert’s written direction. Contractor shall not perform Extra Work without City of Palm Desert approval and work order. Contractor shall submit extra work invoices with a copy of the approved City of Palm Desert work order and applicable receipts. If City of Palm Desert requests Contractor in writing for extra work, the Agreement price will be adjusted based on the following: 1. Price Sheet Hourly Rates. 2. Parts and materials will be billed at cost with an allowable 15% markup. The cost for extra or changed work performed on a Time and Materials basis shall be determined as follows: 1. Labor: Contractor will be paid cost of labor for workers used in actual and direct performance of extra work, including only the actual wages paid which shall include any employer payments to or on behalf of workers for health and welfare, pension, vacation, and similar purposes. 2. Material: Only materials furnished by Contractor and necessarily used in performance of extra Work will be paid for. Cost of such materials will be cost, including sales tax and delivery charges. 3. Equipment: For Contractor-owned equipment, payment will be made at rental rates listed for equipment in California Department of Transportation official equipment rental rate schedule which is in effect on the date upon which the extra Work is accomplished, and which schedule is incorporated herein by reference as though fully set forth herein. (a) For rented equipment, payment will be made based on actual rental invoices. Equipment used on extra work shall be of proper size and type. (b) Rental rates paid shall be deemed to cover cost of fuel, oil, lubrication, supplies, small tools, necessary attachments, repairs and maintenance of any kind, depreciation, storage, insurance, and all incidentals. Unless otherwise specified, manufacturer's ratings, and manufacturer-approved modifications, shall be used to classify equipment for determination of applicable rental rates. Rental time will not be allowed while equipment is 433 inoperative due to breakdowns. (c) Individual pieces of equipment or tools having a replacement value of $100 or less, whether or not consumed by use, shall be considered to be small tools. If no agreement can be reached on a change order, City of Palm Desert shall have the right to issue a unilateral change order setting forth its determination of the reasonable additions or savings in costs and time attributable to the extra or deleted work. Such determination shall become final and binding if the Contractor fails to submit a claim in writing to City of Palm Desert within seven (7) days of the issuance of the unilateral change order, disputing the terms of the unilateral change order and providing sufficient supporting documentation for its position as City of Palm Desert may reasonably require. 7. CLAIMS The Contractor will indemnify and save the City of Palm Desert, City and their agents harmless from all claims growing out of the lawful demand of Subcontractors, laborers, workmen, mechanics, material supplier, and furnishers of machinery and parts thereof, equipment tools, and supplies, incurred in the furtherance of the performance of the work. The Contractor shall, at the City of Palm Desert's request, furnish satisfactory evidence that all obligations of the nature designated above have been paid, discharged, or waived. If the Contractor fails to do so the City of Palm Desert may, after having notified the Contractor, either pay unpaid bills or withhold from the Contractor's unpaid compensation a sum of money deemed reasonable and sufficient to pay any and all such lawful claims until satisfactory evidence is furnished that all liabilities have been fully discharged whereupon payment to the Contractor shall be resumed, in accordance with the terms of the Contract Documents, but in no event shall the provisions of this sentence be constructed to impose any obligations upon the City of Palm Desert to either the Contractor his Surety, or any third party. In paying any unpaid bills of the Contractor, any payment so made by the City of Palm Desert shall be considered as a payment made under the Contract Documents by the City of Palm Desert to the Contractor and the City of Palm Desert shall not be liable to the Contractor for any such payment made in good faith. 8. DISPUTE RESOLUTION Notwithstanding any other provision herein, provisions and procedures in this Section, claims of $375,000 or less shall be resolved pursuant to the procedures set forth in California Public Contract Code §§ 20104, et seq. Contractor shall comply with the claim procedures set forth in Government Code section 900 et seq. prior to filing any lawsuit against the City of Palm Desert. If no such Government Code claim is submitted, or if the prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a lawsuit against the City of Palm Desert. 9. PROJECT SAFETY The Contractor shall take all responsible precautions for the safety of, and shall provide all reasonable protection to prevent damage, injury or loss to: 1. All employees on the project and all other persons who may be affected thereby; 434 2. All the work and all materials and equipment to be incorporated therein, whether in storage on or off the site, under the care, custody or control of the Contractor or any of his Subcontractor or Sub-Subcontractors; 3. Other property at the site or adjacent thereto, including trees, shrubs, lawns, walks, pavements, roadways, structures and utilities not designated for removal, relocation or replacement in the course of construction; and 4. Vehicular and pedestrian traffic on or near the project site. This requirement shall apply continuously and not be limited to normal working hours. The Contractor is responsible to design, construct and maintain all safety devices as required by law or manufacture. The Contractor shall give all notices and comply with all applicable laws, ordinances, rules, regulations and lawful orders of any public City of Palm Desert bearing on the safety of persons or property or their protection from damage, injury or loss. Neither the City of Palm Desert nor the City of Palm Desert’s Representative shall enforce safety measures or regulations. The contractor must submit a comprehensive written safety program covering all aspects of onsite and applicable offsite operations and activities associated with the contract. The Contractor shall erect and maintain, as required by existing conditions and progress of the work, all reasonable safeguards for safety and protection, including posting danger signs and other warnings against hazards, promulgating safety regulations and notifying owners and users of adjacent utilities. The Contractor shall use proper safety signing and barricading as required by the California Manual on Uniform Traffic Control Devices (CA MUTCD) and the W.A.T.C.H. handbook. The Contractor shall use such foresight and shall take such steps and precautions as operations make necessary to protect the public from danger or damage, or loss of life or property, which would result from the interruption or contamination of public water supply, irrigation or other public service or from the failure of partly completed work. The Contractor shall take all necessary precautions to protect the public, especially children, from the hazards of open excavations. Trenches, slopes, and excavations requiring shoring shall either be covered or adequately fenced at night and on weekends or whenever operations are not in actual progress. High visibility clothing shall be worn at all times when working on the project. It is the Contractor's responsibility to ensure that this requirement is enforced. Contractor shall ensure that all working personnel are identified by a work uniform that, at a minimum, consists of a shirt that identifies the company. All work vehicles used on the project shall also be identified, at a minimum, with the company name adequately displayed on the vehicles. All safety devices and all guards for equipment shall be in place and in proper working order during equipment use. No safety device or guards shall be removed, modified or altered in any way, except in strict accordance with the manufacturer’s recommendation. In case of an emergency, which threatens loss or injury to property or life, Contractor shall act without previous instructions as the situation may warrant. Contractor shall notify Engineer immediately thereafter. Any compensation for emergency work claimed by Contractor, together with substantiating documentation, shall be submitted to City of Palm Desert. 435 Whenever, in the opinion of the City of Palm Desert, an emergency exists against which the Contractor has not taken sufficient precaution for the safety of the public or the protection of utilities or of adjacent structures or property or if immediate action shall be considered necessary in order to protect public or private personnel or property interest, or prevent likely loss of human life or damage on account of the operations under the contract, then and in that event, the City of Palm Desert may provide suitable protection to said interest by causing such work to be performed and material to be furnished, as, in the opinion of the City of Palm Desert, may seem reasonable and necessary. The cost and expense of said labor and material together with the cost and expense of such repairs as may be deemed necessary shall be borne by the Contractor. If he shall not pay said cost and expense upon presentation of the bills therefor, duly certified by the Engineer, then said costs and expense will be paid by the City of Palm Desert and shall thereafter be deducted from any amounts due, or which may become due said Contractor. Failure of the City of Palm Desert to take such precautionary measure shall not relieve the Contractor of his full responsibility for public safety. 10. WORK AREA APPEARANCE The Contractor shall maintain the work area in a neat and orderly fashion. When practical, debris developed during maintenance operations shall be disposed of concurrently with its removal. If stockpiling is necessary, the material shall be removed or disposed of daily. No tarps shall be left unattended in parking areas without express permission from the City of Palm Desert. No tarps shall be permitted in any area overnight. 11. CLEANUP AND RESTORATION OF SURFACES The Contractor shall, as directed by the Engineer, remove from all public and private property, at its own expense, all temporary structures, rubbish, and waste materials resulting from its operations. This includes temporary work area(s) obtained by the Contractor. All existing surfaces, whether asphaltic or concrete, Portland Cement concrete, permanent fencing and barriers, landscape material such as turf, trees, shrubs, gravel, etc., or other, shall, after operations, be restored to a condition at least equal to that which existed prior to landscape maintenance activity. All restoration shall be in-kind. Restoration shall include, but not be limited to, the replacement of landscape planting and irrigation system, and pavement striping which are disturbed by the Contractor’s operations in the course of work. 12. RECYCLING SPECIFICATIONS Contractor shall segregate the following materials generated by this job and shall haul, or have the material hauled, to recycling, composting or other properly permitted and County-licensed, diversion facilities: Dirt; Sod; Grass; Wood; Concrete (with and without rebar); masonry; landscape irrigation piping and fittings; asphalt; gravel and rock. Contractor shall submit weight tickets to the City of Palm Desert on a monthly basis showing the quantity (tons) delivered to each diversion facility. Contractor shall also submit to City of Palm Desert, on a monthly basis, all weight tickets showing the tons of all non-divertible material that have been delivered to landfill. Contractor shall include the costs for the diversion of the above-listed materials in its bid for the job. All other debris generated that is beyond the scope of normal and routine maintenance shall 436 be paid as an extra. Contractors are responsible for doing their own research in contacting the recycling, composting and other processing and diversion facilities to confirm the tipping fees for the various types of materials. Contractor may utilize any recyclers or processors provided that Contractor submits written evidence that said facilities are operating in compliance with all state, federal and local laws. Contractor is liable and responsible for any illegal dumping activities for any and all materials generated at the job site. Contractor shall remove all green waste generated from maintenance operations on a daily basis. No green waste will be allowed to remain on site after work hours. Disposal of green waste shall not be allowed in any City of Palm Desert trash can, bin or other City of Palm Desert facility (i.e. corporation yard or satellite yards), or in any park refuse container unless other arrangements have been authorized by City of Palm Desert. Contractor shall recycle all green waste removed from City of Palm Desert landscaped areas at a County-licensed facility. If any compost is used in the execution of the landscape maintenance contract, it must be from a facility that receives and composts City or City of Palm Desert green waste. Said products shall be approved by the Engineer or his designee before use. Contractor shall submit verification of green waste disposal in the Green Waste Monthly Report. 13. PERMITS AND LICENSES a. Permits: Contractor, and any subcontractors shall obtain permits for all work within the City, City of Palm Desert, and State public right-of-way, and the project area and will maintain proper safety and regulatory signs for such work. b. Licenses: Contractor shall obtain and pay all costs incurred for licenses necessitated by his operations. Prior to starting any work, the Contractor and all subcontractors shall be required to have a City of Palm Desert Business Tax Registration valid for the time they are engaged in work. The cost of these fees shall be included in the price and no additional compensation will be allowed therefor. c. Fees: Contractor shall be responsible for all inspection and permit fees required by agencies (other than the City of Palm Desert, Public Works Department) necessitated by his operations for this project. This includes fees required for inspection work within the right-of-way of these other agencies and other public right-of-way. The cost of these fees shall be included in the lump sum contract bid price and no additional compensation will be allowed therefor. 14. INSPECTION OF THE WORK There will be inspection of this work to ensure strict adherence to the specifications and work schedule submitted by the Contractor. It shall be the responsibility of the Contractor to notify the City of Palm Desert should any deviation of said work schedule become necessary. Any work done in unauthorized areas or in a manner unacceptable to the inspector shall not be accepted or paid for by the City of Palm Desert. 15. PROTECTION OF PUBLIC The Contractor shall take all necessary precautions to protect the public, especially children, from the hazards of their maintenance operations. Unusual conditions may arise during the scope of work, which will require that immediate and 437 special provisions be made to protect the public from danger or loss or damage to life and property, due directly or indirectly to the progression of the work. It is part of the service required of the Contractor to make such provisions and to furnish such protection. Whenever, in the opinion of the City of Palm Desert, an emergency exists against which the Contractor has not taken sufficient precaution for the safety of the public or the protection of utilities or of adjacent structures or property or if immediate action shall be considered necessary in order to protect public or private personnel or property interest, or prevent likely loss of human life or damage on account of the operations under the contract, then and in that event, the City of Palm Desert may provide suitable protection to said interest by causing such work to be performed and material to be furnished, as, in the opinion of the City of Palm Desert, may seem reasonable and necessary. Materials and equipment shall be stored so as to not create a public nuisance and to ensure the preservation of their quality and fitness for the work. No materials or equipment shall be stored at the project site unless its use is imminent. The Contractor is responsible to design, construct and maintain all safety devices and be responsible for conforming to all local, state and federal safety and health standard, laws and regulation 16. TRAFFIC CONTROL Contractor shall comply with the State of California and Cal-OSHA Safety Rules and Regulations and the American National Standards Institute (ANSI) 2133.1 standards. Contractor shall supply all delineation, signing and clothing as required by the State of California Department of Transportation. Contractor shall provide and maintain work zone traffic control devices at all times in accordance with the WATCH Manual, the California MUTCD, and as directed by the City of Palm Desert’s Representative or his/her designee. All roadway signs, delineators, channelizers, cones and barricades shall be in “like new” condition. All roadway signs used for nighttime traffic control shall have retroreflective sheeting that meet or exceed ASTM Standard D 4956 Type III. A minimum of a four-foot (4’) wide ADA compliant pedestrian path of travel must be maintained in the sidewalk area at all times. The area under maintenance in the sidewalk areas must be maintained free of hazardous conditions. The immediate area must be barricaded in such a manner that pedestrian traffic cannot enter. The compensation for furnishing, placing, maintaining and removing traffic cones, telescoping tree flags, advance warning signs, flagmen, barricades, temporary striping and other safety devices, as required for public safety or as directed by the City Engineer, shall be considered as included in the in the contract bid price, and no additional compensation will be made therefor. 17. MEASUREMENT AND PAYMENT City of Palm Desert has specific criteria by which to evaluate the performance of Contractor on a weekly basis. If performance by Contractor is deficient, City of Palm Desert reserves the right to subtract an associated amount form the monthly billing. Since it is difficult to quantify and assess a value to every aspect of the work, City of Palm Desert may implement liquidated damages of $250 per day per incident until the deficiency is corrected. The following is a brief summary of possible deficiencies: 438 1. Failure to comply with Contract Documents. 2. Failure to comply in a timely manner with contractually legitimate requests made by City of Palm Desert. 3. Failure to provide specified reports or falsification of reports. 4. Failure to supply adequate equipment, labor or supervision. 5. Failure to repair deficiencies in the allotted time frame. 6. Failure to comply with schedules. 7. Failure to protect public health and safety. 8. Failure to provide adequate identification on vehicles or employees. In the event Contractor fails to perform contractual obligations to the satisfaction of City of Palm Desert, City of Palm Desert many choose to obtain the services of a separate landscape maintenance provider to fulfill Contractor’s obligations, and any and all associated charges shall be the responsibility of the Contractor. 18. VEHICLES ON SIDEWALK AND TURF Contractor vehicles shall not drive on sidewalks or turf without prior City of Palm Desert approval. 19. REFUSE DISPOSAL All refuse collected shall be removed and taken to a sanitary landfill at Contractor’s expense. Disposal of debris shall not be allowed in any City of Palm Desert trash can, bin or other City facility (i.e., corporation yard or satellite yards), or in any park refuse container unless other arrangements have been authorized by City of Palm Desert. 20. GREEN WASTE Contractor shall remove all green waste generated from maintenance operations on a daily basis. No green waste will be allowed to remain on site after work hours. Disposal of green waste shall not be allowed in any City of Palm Desert trash can, bin or other City facility (i.e., Corporation Yard or satellite yards), or in any park refuse container unless other arrangements have been authorized by City of Palm Desert. Contractor shall recycle all green waste removed from City of Palm Desert landscaped areas at a County-licensed compost facility. If any compost is used in the execution of the landscape maintenance contract, it must be from a facility that receives and composts City of Palm Desert green waste. Said products shall be approved by the City of Palm Desert or his designee before use. Contractor shall submit verification of green waste disposal in the Green Waste Monthly Report. 21. SCHEDULES At the pre-commencement conference, Contractor and City of Palm Desert staff will review the Work Schedule submitted by the Contractor. This schedule will be considered the permanent schedule. If, during the first thirty (30) days, an adjustment in the schedule needs to be made, Contractor may submit a revised schedule for approval. In addition, Contractor shall submit a weekly report by 1:00 p.m. every Friday showing work performed in the current week and work scheduled for the following week. Failure to submit the required report by 1:00 p.m. every Friday may result in a $250 fine. Contractor shall adhere to the schedule. City of Palm Desert must receive notification of changes at least 24 hours in advance. Reports may be transmitted electronically to either rchavez@cityofpalmdesert.org or bgonzalez@cityofpalmdesert.org or a 439 facsimile (Fax) to 760-341-7098. 22. LICENSE AND CERTIFICATION REQUIREMENTS Contractor shall possess all permits and licenses required to comply with city, county, state or federal laws for the work activities performed, including the use of any chemicals. Contractor assumes responsibility and liability for use of all chemical controls and shall at all times perform chemical applications in accordance with governmental regulations and industry standards for their safe and appropriate use. At the time that the Proposal is submitted, Contractor shall possess current licensure and certification as follows, and the same shall be maintained current and valid for the term of the contract: 1. C-61, subcategory D-21 440 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Shawn Muir, Community Services Manager SUBJECT: AWARD A CONSTRUCTION CONTRACT TO CONDOR, INC., FOR THE PALM DESERT AQUATIC CENTER PUMP ROOM RENOVATION PROJECT (PROJECT NO. CFA00009) RECOMMENDATION: 1. Award a construction contract to Condor, Inc., of El Monte, California, in the amount of $647,000, with a 20% contingency of $129,400, for a total not-to-exceed amount of $776,400 to cover unforeseen expenses. 2. Authorize the Director of Finance to appropriate funds from General Fund Facility Reserve to the Interfund Transfer Account (Account Number 1104199-4501000) in the amount of $776,400, and transfer to the Palm Desert Aquatic Center Transfer Account (Account No. 2420000-3910000). 3. Authorize the appropriation of $776,400 to the Palm Desert Aquatic Center Capital Improvement Account (Account No. 2424549-4400100). 4. Authorize the City Attorney to make necessary non-monetary changes to the agreement. 5. Authorize the City Manager to execute the agreement, change orders up to the contingency amount, and any documents necessary to effectuate the actions taken herewith. BACKGROUND/ANALYSIS: The Palm Desert Aquatic Center (PDAC) was constructed in 2011 as a public recreational amenity for residents and visitors. The facility features three separate pools, each designed to serve a range of community programming and recreational needs:  Lap Pool: 887,000 gallons; 50 meters in length; depth up to 15 feet. Amenities include diving boards, a climbing wall, a floating obstacle course, and lanes for lap swimming and water fitness programs.  Recreation Pool: 190,000 gallons; zero-depth entry to a maximum depth of five feet. Includes a rope swing, dual water slides, and designated areas for swim instruction and recreational use.  Splash Pool: 13,000 gallons; uniform one-foot depth. Designed for young children, the pool includes a water playground for safe and interactive play. The facility has been operated and maintained by the Family YMCA of the Desert since its opening. Most of the equipment needed to operate the pools is located in the facility’s pump room. Currently, the pump room houses three filtration systems, five heaters, and various pumps and controllers. This equipment has run 24 hours a day, seven days a week , since it was commissioned, with the exception of the heaters, which are only operated in the winter. Due to 441 City of Palm Desert Award Construction Contract for PDAC Pump Room Renovation Page 2 of 4 the extensive use, extreme desert climate, and normal wear and tear, the equipment has reached the end of its useful life and must be replaced. Evidence of this emerged at the start of this year’s recreational swim season, when the lap pool required temporary closures over several days, leading to a modified operating schedule to allow for water clarity to improve. Preparation for the renovation project began in July 2024, when City staff issued a Request for Proposals (Project ID# 2024-RFP-126) for engineering and design services to renovate the pump room and replace the original equipment . On September 12, 2024, the City awarded a contract to Rogers, Stringer & McClelland, Inc. (RSM, Inc.). The scope of work included assessment and data collection, feasibility and alternatives analysis, pr eliminary and final engineering, bidding support, and construction engineering services. RSM, Inc. subsequently prepared the final construction documents and specifications and assisted staff in assembling the bid package, including contractor qualificati on requirements specific to the project’s specialized needs (i.e., aquatic facility renovations, specialized plumbing, and equipment). Project Description: The project will renovate the existing pump room by removing and replacing three pool filtration systems, removing five heaters and replacing them with four higher-efficiency heaters, removing and replacing six strainer baskets, replacing two pumps, and reconfiguring the pump room, including plumbing and fixtures to optimize space and efficiency in oper ations. The purchase of the pump room equipment was authorized by the City Council on August 28, 2025. These upgrades will ensure the efficient and reliable operation of the aquatic facility’s pools Request for Bids: The project was advertised via the City’s bid portal, OpenGov, (Project ID# 2025-NIB-205), and three bids were received electronically on August 28, 2025: Contractor Location Base Bid Condor, Inc. El Monte, CA $647,000 Staff have reviewed the bid documents and determined that the bid submitted by Condor, Inc., is the lowest responsive bid and in compliance with all specifications, including all required forms. Based on this review, staff recommend awarding the construction contract to Condor, Inc. Due to the elevated cost of construction materials associated with this project , staff is recommending approval of a 20% contingency rather than the standard 10%. This higher contingency will help ensure adequate funding is available to address unforeseen needs for additional supplies or labor, thereby minimizing the risk of project delays that could otherwise extend the closure of the aquatic center. Legal Review: 442 City of Palm Desert Award Construction Contract for PDAC Pump Room Renovation Page 3 of 4 This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Budget totaling $1,620,145 for Palm Desert Aquatic Center Improvements, which includes the Pump Room Renovation, are included in the Fiscal Year 2025-26 Financial Plan and Capital Improvement Project (CIP) List under Account No. 2424549-4400100. However, funds are fully encumbered due to projects currently in process. Therefore, an appropriation of $776,400 is necessary from the General Fund Facility Reserve Funds to complete the construction portion of the project. The table below outlines the budget and expenses related to the Palm Desert Aquatic Center Improvements Project: Authorized/Requested Budgets Date Authorized Total 2424549-4400100 FY 2025/26 $300,000 Carryover FY 2025/26 $320,145 Appropriation 08/28/2025 $1,000,000 *9.28.25 Appropriation Pending $776,400 Total Budget $2,396,545 Authorized Expenditures Date Authorized CIP 242 RSM, Inc. (Pump Design #A48350) 09/12/2024 $65,000 RSM, Inc. (Pump Contingency A48350) 09/12/2024 $15,000 RSM, Inc. (PDAC Improv Design A49190) 04/22/2025 $58,000 RSM, Inc. (PDAC Improv Conting A49190) 04/22/2025 $10,000 Horizon Lighting (Generator Install) 05/13/2025 $85,968 Knorr Systems (Circulation Pump) 08/13/2025 $70,369 Knorr Systems (Equipment Purchase) 08/28/2025 $989,206 Knorr Systems (Equipment Contingency) 08/28/2025 $15,000 Fence Improvements Pending $150,000 HVAC Replacements Pending $50,000 Resling Chairs Pending $25,000 Roof Access Ladder Pending $25,000 Turbochef Pending $50,000 *Construction: Condor, Inc. Pending $647,000 *20% Contingency Pending $129,400 Total Est. Expenditures $2,884,543 Remaining Project Budget Available $11,602 *This request 443 City of Palm Desert Award Construction Contract for PDAC Pump Room Renovation Page 4 of 4 An additional appropriation is anticipated in the amount of $500,000 for concrete work associated with this project. The concrete replacement is currently out to bid, with a construction award anticipated in October. At that time, staff will return to the City Council to request ap proval of the contract award, and any additional budget appropriation required. Any unused contingency from this phase will be reallocated to support the remaining improvement items, thereby potentially reducing the total appropriation request at that time. ATTACHMENTS: 1. Construction Contract 2. Contractor Bid 3. Payment and Performance Bond Forms 4. Vicinity Map 444 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 25th day of September, 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 Condor, Inc., a Corporation, with its principal place of business at 3000 Durfee Avenue, El Monte, CA 91732 ("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 Contr act Documents as specified in Article 5, below, for the following Project: Palm Desert Aquatic Center Pump Room Renovation Project Project No. CFA00009 (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 provided in the Contract Documents, and including all applicable taxes and costs, the sum of Six Hundred Forty-Seven Thousand and 00/100 Dollars ($647,000.00). Payment shall be made as set forth in the General Conditions. The City will pay the 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 everyday completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to 445 Contract No. ___________ 2 Revised 01-2024 BBK 72500.00001\32374943.1 determine the City’s actual damages. Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $1,000.00 for each and every Day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor. ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following: Notice Inviting Bids Instructions to Bidders Bid Forms Bid Acknowledgement Bid Schedule Bid Guarantee Designation of Subcontractors Information Required of Bidders Non-Collusion Declaration Form Iran Contracting Act Certification Public Works Contractor DIR Registration Certification Performance Bond Payment (Labor and Materials) Bond Contract for Construction General Conditions Special Conditions Specifications Addenda Construction Plans and Drawings Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9 Standard Plans of the City of Palm Desert, latest edition Standard Plans for Public Works Construction, latest edition Caltrans Standard Specifications, latest edition, Except Division 1 Caltrans Standard Plans, latest edition California Manual on Traffic Control Devices for Streets and Highways (CAMUTCD), latest edition Work Area Traffic Control Handbook, latest edition Reference Specifications Approved and fully executed Change Orders 446 Contract No. ___________ 3 Revised 01-2024 BBK 72500.00001\32374943.1 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 volun teers (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 447 Contract No. ___________ 4 Revised 01-2024 BBK 72500.00001\32374943.1 Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements; (c) Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; (d) Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, 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. 448 Contract No. ___________ 5 Revised 01-2024 BBK 72500.00001\32374943.1 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. 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 in surance, a Waiver of Subrogation endorsement in favor of the City, its officers, agents, employees, and volunteers. 6. Fidelity Coverage. Reserved. 449 Contract No. ___________ 6 Revised 01-2024 BBK 72500.00001\32374943.1 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 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 450 Contract No. ___________ 7 Revised 01-2024 BBK 72500.00001\32374943.1 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 exclusio n 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 451 Contract No. ___________ 8 Revised 01-2024 BBK 72500.00001\32374943.1 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 ma y 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 452 Contract No. ___________ 9 Revised 01-2024 BBK 72500.00001\32374943.1 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] 453 Contract No. ___________ 10 Revised 01-2024 BBK 72500.00001\32374943.1 SIGNATURE PAGE TO CONSTRUCTION AGREEMENT BY AND BETWEEN THE CITY OF PALM DESERT AND CONDOR, 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: Chris Escobedo City Manager Attest: By: Anthony J. Mejia City Clerk Approved as to form: By: Isra Shah Best Best & Krieger LLP City Attorney CONDOR, INC., A CORPORATION By: Frederick Weiss President By: Earl Weiss Treasurer/CFO Contractor’s License Number and Classification DIR Registration Number (if applicable) City Clerk QC: _____ Contracts QC: _____ Insurance: ___________ Initial Review ____________ Final Approval ____________ Bonds 454 City of Palm Desert PW - Operations & Maintenance Randy Chavez, Director of Public Works 73-510 Fred Waring Drive, Palm Desert, CA 92260 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation RESPONSE DEADLINE: August 28, 2025 at 5:00 pm Report Generated: Friday, August 29, 2025 Condor, Inc. Response CONTACT INFORMATION Company: Condor, Inc. Email: dhavens@condor-inc.com Contact: Doug Havens Address: 3000 Durfee Ave El Monte, CA 91732 Phone: (626) 455-0050 Ext: 1005 Website: N/A Submission Date: Aug 28, 2025 4:01 PM (Pacific Time) 455 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 2 ADDENDA CONFIRMATION Addendum #1 Confirmed Aug 28, 2025 11:19 AM by Doug Havens Addendum #2 Confirmed Aug 28, 2025 11:19 AM by Doug Havens Addendum #3 Confirmed Aug 28, 2025 11:19 AM by Doug Havens Addendum #4 Confirmed Aug 28, 2025 11:19 AM by Doug Havens Addendum #5 Confirmed Aug 28, 2025 11:19 AM by Doug Havens QUESTIONNAIRE 1. BID ACKNOWLEDGMENT* To 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. 1. In response to the Contract Documents for project ID 2025-NIB-205and in accordance with the accompanying Instructions to Bidders, the undersigned hereby proposes to the City to furnish all labor, technical and professional services, supervision, materials and equipment, other than materials and equipment specified as furnished by the City, and to perform all operations necessary and required to construct the Project in accordance with the provisions of the Contract Documents and any addenda thereto, and at the prices stated opposite the respective items set forth in the Bid Schedule. 2. This Bid constitutes a firm offer to the City which cannot be withdrawn for 90 calendar days after the date set for opening of Bids, or until a Contract is executed by the City and a third party, whichever is earlier. 456 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 3 3. The undersigned certifies that it has examined and is fully familiar with all of the provisions of the Contract Documents and any addenda thereto; that it has carefully checked all of the words and figures shown in its Bid Schedule; that it has carefully reviewed the accuracy of all statements in this Bid and attachments hereto; and that it understands and agrees that the City will not be responsible for any errors or omissions on the part of the undersigned in preparing this Bid. 4. If awarded a Contract, the undersigned agrees to execute and deliver to the City within ten (10 ) Days after date of receipt of Notice of Award, a signed Contract and the necessary Performance Bond, Payment Bond, and Certificates of Insurance and Endorsements. 5. All Bid Forms, which have been completed and executed by undersigned Bidder, are incorporat ed by this reference and made a part of this Bid. 6. The undersigned is hereby representing that it is and will be properly licensed both at the time that it submits a Bid as wel l as at the time the Contract is awarded, if the Contract is awarded to the undersigned. A. If Individual Contractor. Undersigned certifies that it is now licensed in accordance with the provisions of the Contractor's License Law of the State of California; or B. If Joint Venture. Undersigned certifies that the individual members of the joint venture are now licensed in accordance with the provisions of the Contractor's License Law of the State of California. I hereby certify under penalty of perjury under the laws of the State of California that all of the information submitted in connection with this Bid and all of the representations made herein are true and correct. Confirmed 2. BID SCHEDULE* IMPORTANT: THE ELECTRONIC #BID SCHEDULE MUST BE COMPLETED BY EACH BIDDER AND PROPERLY SUBMITTED ON OPENGOV PROCUREMENT. FAILURE TO COMPLETE THE BID SCHEDULE WILL RESULT IN AN INCOMPLETE AND NON -RESPONSIVE BID. THE ELECTRONIC BID SCHEDULE WILL BE INCORPORATED INTO THE CONTRACT DOCUMENTS. 457 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 4 The costs for any Work shown or required in the Contract Documents, but not specifically identified as a line item are to be included in the related line items and no additional compensation shall be due to Contractor for the performance of the Work. All blank s paces appearing in the Electronic Bid Schedule must be filled in. Failure to fill in any blank spaces may render the bid non-responsive. The estimated quantities for Unit Price items are for purposes of comparing Bids only and the City makes no representation th at the actual quantities of work performed will not vary from the estimates. Final payment shall be determined by the Engineer from measured quantities of work performed based upon the Unit Price. If the Contract Documents specify Alternate Bid items, the City can choose to include any, all, or none of the Alternate Bid items in the Work. If the City selects any of the Alternate Bid items, the corresponding Alternate Bid prices shall be added to or deducted from Base Bid Price for the Work. The City can award/select Alternate Bid items at any time(s). I certify that I have read, understood the above statement. Confirmed 3. Lump Sum Pricing Proposal* Please submit your lump sum proposal based on the plans, specifications, and contractor requirements _Condor_Proposal_-_Palm_Desert_Pump_Room_Renovation.pdf 4. BID GUARANTEE* IF SUBMITTING AN ORIGINAL BID BOND: Please download the Bid Bond Form under #ATTACHMENTS, and Mail or hand deliver in a sealed and labeled envelope including the Project Number, Project Title, and Project Due Date visible on the outside of the envelope to the City Clerk's Office located at 73-510 Fred Waring Drive, Palm Desert, CA 92260 before the bid submittal deadline. IF SUBMITTING CASH OR CASHIER'S CHECK: Mail or hand deliver in a sealed and labeled envelope including the Project Number, Project Title, and Project Due Date visible on the outside of the envelope to the City Clerk's Office located at 73 -510 Fred Waring Drive, Palm Desert, CA 92260 before the bid submittal deadline. IF SUBMITTING AN E-BID BOND: follow E-Bid Bond instructions. Hard Copy Original Bid Bond (delivered before bid submittal deadline) 458 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 5 5. E-Bid Bond Please enter your Bid Bond information from Surety2000 below ONLY IF YOU ARE NOT SUBMITTING A HARD COPY BID BOND, CASH, OR CASHIER'S CHECK. Bond ID: No response submitted Vendor ID: No response submitted 6. Enter Surety Company "Name" who Issued Bid Guarantee * This information will be verified against the California Department of Insurance Website. United Fire & Casualty Company Click to Verify Value will be copied to clipboard 7. DESIGNATION OF SUBCONTRACTORS* Please download the below documents, complete, and upload. • DESIGNATION_OF_SUBCONTRACTO... DESIGNATION_OF_SUBCONTRACTORS_Condor.pdf 8. BIDDER INFORMATION AND EXPERIENCE FORM* Please download the below documents, complete, and upload. • BIDDER_INFORMATION_AND_EXPE... BIDDER_INFORMATION_AND_EXPERIENCE_FORM_CONDOR.pdf 9. NON-COLLUSION DECLARATION* The undersigned declares: I am an authorized representative of my company, the party making the foregoing Bid, to certify the following. 459 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 6 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 indirectly, sought by ag reement, communication, or conference with anyone to fix the Bid Price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost element of the Bid Price, or of that of any other Bidder. All statements contained in the Bid are true. The Bidder has not, d irectly or indirectly, submitted his or her Bid Price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, to any corporation, partnership, company, association, organization, bid depository, or to any member or agent there of to effectuate a collusive or sham bid, and has not paid, and will not pay, any person or entity for such purpose. Any person executing this declaration on behalf of a Bidder that is a corporation, partnership, joint venture, limited liabil ity company, limited liability partnership, or any other entity, hereby represents that he or she has 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 10. PUBLIC WORKS CONTRACTOR DIR REGISTRATION CERTIFICATION* Pursuant to Labor Code sections 1725.5 and 1771.1, all contractors and subcontractors that wish to bid on, be listed in a bid proposal, or enter into a contract to perform public work must be registered with the Department of Industrial Relations. See http://www.dir.ca.gov/Public-Works/PublicWorks.html for additional information. No bid will be accepted, nor any contract entered into without proof of the contractor’s and subcontractors’ current registration with the Department of Industrial Relations to perform public work. Bidder hereby certifies that it is aware of the registration requirements set forth in Labor Code sections 1725.5 and 1771.1 and is currently registered as a contractor with the Department of Industrial Relations. Unless Bidder is exempt pursuant to the small project exemption, Bidder further acknowledges: 1. Bidder shall maintain a current DIR registration for the duration of the project. 460 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 7 2. Bidder shall include the requirements of Labor Code sections 1725.5 and 1771.1 in its contract with subcontractors and ensure that all subcontractors are registered at the time of bid opening and maintain registration status for the duration of the project. 3. Failure to submit this form or comply with any of the above requirements may result in a finding that the bid is non- responsive. Confirmed 11. 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. 1000004667 Click to Verify Value will be copied to clipboard 12. Enter your valid CA Contractors State License Board (CSLB) number* Please enter your License Number here. This will be verified against the state database. 812288 Click to Verify Value will be copied to clipboard 13. CONTRACTOR’S CERTIFICATE REGARDING WORKERS’ COMPENSATION* I am aware of the provisions of section 3700 of the 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 I will comply with such provisions before commencing the performance of the work of this Contract. Confirmed 14. Fleet Compliance Certification* I hereby acknowledge that I have reviewed the California Air Resources Board’s policies, rules and regulations and are familiar with the requirements of Title 13, California Code of Regulations, Division 3, Chapter 9, effective on January 1, 2024 (the “Reg ulation”). I 461 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 8 hereby certify, subject to penalty for perjury, that the option checked below relating to the Bidder’s fleet, and/or that of their subcontractor(s) (“Fleet”) is true and correct: The Fleet does not fall under the Regulation or are otherwise exempted and a detailed reasoning is attached hereto. 15. Fleet Compliance Documentation* Please attach supporting documentation for the selection made in the above item. Condor_Fleet_Letter_250828.pdf 16. Type of Business* C Corporation (if corporation, two signatures are required) 17. Type your Legal Company Name Here* State your Company's Name Here. This will be verified against the California Secretary of State's Website. Condor, Inc. Click to Verify Value will be copied to clipboard 18. How many years has Bidder’s organization been in business as a Contractor? * 23 19. List the Signatory(s) Authorized to Sign and Bind an Agreement.* (If two (2) signatures are required, include the following information for both signatories) 1. Full Name 2. Title 3. Physical Business Address 4. Email Address 462 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 9 5. Phone Number Corporation (C-Corp): Requires two signatures from authorized officers— one from President or Vice President, and the other from the Secretary or Treasurer. An alternate signatory may be used if authorized by a Notarized Corporate Resolution or Article of Authority. LLC: Usually requires one signature from an authorized member or manager. For significant contracts (e.g., over $50,000 for construction or over $25,000 for service agreements), additional approvals or signatures may be required. Sole Proprietorship, Non-Profit, Single LLC: Only the one signature is necessary. Earl Weiss, Secretary/ Treasurer/ CFO, 3000 Durfee Ave., El Monte, CA 91732, earl@condor-inc.com, P.626-455-0050 Ext. 1012 Frederick Weiss, President, 3000 Durfee Ave., El Monte, CA 91732, fred@condor-inc.com, P.626-455-0050 Ext. 1010 20. Nondiscrimination Certification* The City of Palm Desert is committed to promoting equal opportunity in its contracting activities. We ensure that all individuals seeking to do business with the city treat contractors, subcontractors, and employees fairly, without discrimination based on race, color, religion, ancestry, national origin, disability, medical condition, marital status, domestic partner status, sex, gend er, gender identity, gender expression, sexual orientation, or membership in any other protected class. For any purchase exceeding $10,000, vendors must certify compliance with the City’s nondiscrimination policy (G.C. 3.30.200) before contract award. No contract will be awarded until the contractor submits this certification. By clicking the confirmation box below, the vendor certifies that they have read the code and agree to comply with its requirements. Failure to comply may result in termination of any agreement entered into with the vendor. Confirmed 21. Lump Sum Proposal* Please submit your lump sum proposal based on the plans, specifications, and contractor requirements. _Condor_Proposal_-_Palm_Desert_Pump_Room_Renovation.pdf 463 [CONDOR, INC.] RESPONSE DOCUMENT REPORT NIB No. 2025-NIB-205 Palm Desert Aquatic Center Pump Room Renovation [CONDOR, INC.] RESPONSE DOCUMENT REPORT PUBLIC WORKS - Palm Desert Aquatic Center Pump Room Renovation Page 10 PRICE TABLES Line Item Description Quantity Unit of Measure Unit Cost Total 1 Lump Sum Pricing Proposal 1 Each $647,000.00 $647,000.00 TOTAL $647,000.00 464 Condor, Inc. 3000 Durfee Ave, El Monte, CA 91732 Phone: (626) 455-0050  Fax: (626) 455-0070 earl@condor-inc.comCSLB No. 812288 A, B, C53 DIR #1000004667 Commercial Aquatic Facilities PROPOSAL Bid Date: August 28, 2025 Bid Time: 5:00pm Palm Desert Aquatic Center 73751 Magnesia Falls Drive Palm Desert, CA 92260 Project: Palm Desert Aquatic Center Pump Room Renovation Pump Room Repairs Project Id: 2025-NIB-205 Following is our scope of work: OVERVIEW Furnish and install all supervision, labor, material, equipment, machinery and management to renovate the pump room at your facility. The work is priced per the scope below. Our work includes start-up, instruction of owner’s personnel, and warranties. Our price is based on the onsite visit and project documents provided for the bid. SCOPE OF WORK Per Project Bid Documents PRICE ITEM Description Total 1 PUMP ROOM RENOVATION LS $ 647,000 EXCLUSIONS & CLARIFICATIONS Per Project Bid Documents 465 DESIGNATION OF SUBCONTRACTORS The subcontractor(s) listed below will perform work or labor or render service to the contractor in or about the construction of the work or improvement, or are subcontractors licensed by the State of California who will, under subcontract to the contractor, specially fabricate and install a portion of the work or improvement according to detailed drawings contained in the Contract Documents, in an amount in excess of one-half of one percent (0.5%) of the contractor’s total bid. Notwithstanding the foregoing, if the work involves the construction of streets and highways, then the Bidder shall list each subcontractor who will perform work or labor or render service to the Bidder in or about the work in an amount in excess of one-half of one percent (0.5%) of the Bidder’s Total Bid Price or $10,000, whichever is greater. No additional time shall be granted to provide the below requested information. In compliance with the Subletting and Subcontracting Fair Practices Act Chapter 4 (commencing at Section 4100), Part 1, Division 2 of the California Public Contract Code, the Bidder shall set forth below: (a) The portion of the work to be done by the subcontractor; (b) The name and the location of the place of business; (c) The California contractor license number; and (d) The DIR public works contractor registration number. If a Bidder fails to specify a subcontractor or if a Bidder specifies more than one subcontractor for the same portion of work, then the Bidder shall be deemed to have agreed that it is fully qualified to perform that portion of work and that it shall perform that portion itself. Portion of Work to be done by Subcontractor Percent of Total Base Bid Name of Subcontractor Location of Business CSLB Contractor License No. DIR Registration Number NONE 466 Portion of Work to be done by Subcontractor Percent of Total Base Bid Name of Subcontractor Location of Business CSLB Contractor License No. DIR Registration Number (Attach additional sheets if necessary) 467 BIDDER INFORMATION AND EXPERIENCE FORM A. INFORMATION ABOUT BIDDER (Indicate not applicable (“N/A”) where appropriate.) NOTE: Where Bidder is a joint venture, pages shall be duplicated and information provided for all parties to the joint venture. 1.0 Name of Bidder: ___________________________________________ 2.0 Type, if Entity: ___________________________________________ 3.0 Bidder Address: ___________________________________________ _____________________________________________________________ _____________________________________________________________ Facsimile Number Telephone Number _____________________________________________________________ Email Address 4.0 How many years has Bidder’s organization been in business as a Contractor? ______________________________ 5.0 How many years has Bidder’s organization been in business under its present name? ________________________ 5.1 Under what other or former names has Bidder’s organization operated?_______________________________________________ 6.0 If Bidder’s organization is a corporation, answer the following: 6.1 Date of Incorporation: ________________________________ 6.2 State of Incorporation: ________________________________ 6.3 President’s Name: ________________________________ 6.4 Vice-President’s Name(s): ________________________________ ________________________________ 6.5 Secretary’s Name: ________________________________ 6.6 Treasurer’s Name: ________________________________ Condor, Inc. Corporation 3000 Durfee Avenue El Monte, CA 91732 626-869-5123 626-455-0050 earl@condor-inc.com 23 years 23 years N/A 5/1/2002 California Frederick Weiss Earl Weiss Earl Weiss Earl Weiss 468 7.0 If an individual or a partnership, answer the following: 7.1 Date of Organization: ______________________________________ 7.2 Name and address of all partners (state whether general or limited partnership): ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ 8.0 If other than a corporation or partnership, describe organization and name principals: ___________________________________________________________ ___________________________________________________________ 9.0 What type of work does the Bidder normally perform with its own forces? ___________________________________________________________ ___________________________________________________________ 10.0 Has Bidder ever failed to complete any work awarded to it? If so, note when, where, and why: ___________________________________________________________ ___________________________________________________________ 11.0 Within the last five years, has any officer or partner of Bidder’s organization ever been an officer or partner of another organization when it failed to complete a contract? If so, attach a separate sheet of explanation: ___________________________________________________________ ___________________________________________________________ 12.0 List Trade References: ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] Construction & Renovation of Aquatic Facilities including Commercial Swimming Pools, Spas, Water Features, Water Play Areas, Commercial Decorative Fountains NO NO Aquatic Design Group - Dennis Berkshire O: 760-685-0784, dberkshire@aquaticdesigngroup.com PoolCorp. -Stephanie Gustin, O: 985-263-0150, C: 909-214-4419, Stephanie.gustin@poolcorp.com Harrington Plastics- Cindy Fedele, O: 909-597-8641, cfedele@hipco.com 469 B. LIST OF CURRENT PROJECTS (BACKLOG) [**Duplicate Page if needed for listing additional current projects.**] Project Client Reference (agency name/contact info) Description of Bidder’s Work Completion Date Cost of Bidder’s Work Please See Attached: Exhibit A 470 C. LIST OF COMPLETED PROJECTS – LAST THREE YEARS [**Duplicate Page if needed for listing additional completed projects.**] Please include only those projects which are similar enough to demonstrate Bidder’s ability to perform the required Work. Project Client Reference (agency name/contact info) Description of Bidder’s Work Completion Date Cost of Bidder’s Work Please See Attached: Exhibit B 471 D. EXPERIENCE AND TECHNICAL QUALIFICATIONS QUESTIONNAIRE Personnel: The Bidder shall identify the key personnel to be assigned to this project in a management, construction supervision or engineering capacity. 1. List each person’s job title, name and percent of time to be allocated to this project: 2. Summarize each person’s specialized education: 3. List each person’s years of construction experience relevant to the project: 4. Summarize such experience: Bidder agrees that personnel named in this Bid will remain on this Project until completion of all relevant Work, unless substituted by personnel of equivalent experience and qualifications approved in advance by the City. Please See Attached: Exhibit C 472 E. ADDITIONAL BIDDER’S STATEMENTS: If the Bidder feels that there is additional information which has not been included in the questionnaire above, and which would contribute to the qualification review, it may add that information in a statement here or on an attached sheet, appropriately marked: _______ Please See Attached: Exhibit D 473 Condor, Inc. Work in Progress EXHIBIT A Project Name Project Description Contract Amount Owner Architect Architect Contact Architect Phone Architect Email % Complete Scheduled Completion Balance to Complete Coronado NAB Pool Major Pool Renovation 3,159,000 NAVFAC Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 45%Dec 2025 1,737,450 Granada Hills Aquatic Center New Competition Swimming Pool 3,434,000 City of LA Dept of Rec & Parks Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 98%Sep 2025 68,680 Huntington Park HS Aquatic Center New Competition Swimming Pool 2,029,634 LAUSD Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 99%Sep 2025 20,296 Lake Cahuilla Veterans Regional Park Modernization Major Pool Renovation 1,053,000 Riverside County Regional Park Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 70%Oct 2025 315,900 Nogales HS Aquatic Center New Competition Swimming Pool 4,080,000 Rowland USD Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 45%Oct 2025 2,244,000 Port Damage (Hueneme) Trainer Pool Repair Design-Build Training pool 1,725,000 NAVFAC Southwest Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 20%Jun 2026 1,380,000 USC Football Performance Center New Hydrotherapy Pools & Equipment 2,540,873 USC Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 22%Feb 2026 1,981,881 474 Condor, Inc. PROJECT REFERENCE LIST (3- Year)Exhibit B Project Name Project Description P=Commercial Swimming Pool, R=Commercial Pool Renovation, F=Fountain/Water Feature OWNER Final Contract Amount General Contractor/Construction Manager/ Owner Contact GC PMgr PHONE GC PMgr Email Architect Architect Contact Architect Phone Architect Email Completion Date 29 Palms Major Pool Repair R NAVFAC Southwest $981,000.00 West Development, Inc.Josh Anderson 760-390-5755 josh.anderson@westdinc.com USMC Engineering Branch 8/15/2025 Chaffey HS Scoreboard R Chaffey Joint Union High School District $2,603,602.16 Tilden Coil Lisa Griffin 909-460-5689 lgriffin@tilden-coil.com Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 1/5/2024 Chapman P Chapman University $697,200.00 Chapman University Evan Spotswood 714-997-6658 accountspayable@chapman.edu Rogers Stringer & McClelland, Inc.Bernard Rogers 925-217-6620 bernard.rogers@rsm-de.com 12/11/2023 Chino HS P Chino Valley Unified School District $3,098,000.00 Balfour Beatty Construction Frank Camacho 949-236-0961 fcamacho@balfourbeattyus.com Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 8/12/2024 Crawford Pool Re-Plastering and Deck Renovation R UC Irvine $823,000.00 UCI Amirreza Anvarhossein 949-343-5375 Amirreza.Anvarhossein@uci.edu Jones and Madhavan Doug Jones 805-777-8449 doug@jmae.com 10/29/2024 Delano P City of Delano $2,641,682.37 Bowe Contractors Inc Greg Willcut 661-858-8878 gwillcut@bowecontractors.com Water Technology, Inc Scott LeMonds 920-210-2193 slemonds@watertechnologyinc.com 6/12/2024 Fillmore Aquatic Center R City of Fillmore $416,979.04 City of Filmore Mario Cisneros 805-585-0724 mcisneros@wilden.com Aquatic Design Group Greg Cannon 760.444.8302 gcannon@aquaticdesigngroup.com 8/16/2023 Intuit Dome P Murphy's Bowl LLC $5,368,885.00 AECOM Turner Mala Patel 310-654-4016 mpatel@tcco.com Counsilman-Hunsaker Jeff Nordorft 314-276-9503 JeffNodorft@chh2o.com 5/9/2025 La Canada High School P La Canada USD $2,364,000.00 Hamel Contracting Inc Gavin Wakefield 951.600.2783 gwakefield@hamelinc.com Aquatic Design Group Dennis Berkshire 760-685-0783 dberkshire@aquaticdesigngroup.com 11/7/2023 McCambridge Park Pool Repair R City of Burbank $793,000.00 City of Burbank Damian Skinner 818-391-9000 dskinner@burbankca.gov Aquatic Design Group Michelle Gable 760.637.7851 mgable@aquaticdesigngroup.com 1/17/2025 MCRD Marine Corps Recruit Depot P NAVFAC Southwest $2,486,620.00 Heffler Contracting Group Jesse Tovar 619-933-3580 jesse@hefcongrop.com Sillman Architectural Mark Baker (619) 294-7515 mbaker@sillmanarch.com 6/30/2023 MSMU Mount Saint Mary's University P Mount Saint Mary's University $1,579,000.00 Illig Construction Co Troy Sommo 951-212-0043 tsommo@illigconstruct.com Aquatic Design Group Dennis Berkshire 760-685-0784 dberkshire@aquaticdesigngroup.com 12/13/2024 Park La Brea Replaster R Prime Park La Brea Titleholder, LLC $450,000.00 Prime Group Sara Hartley 323-459-7104 sara.hartley@primegrp.com In-house N/A N/A N/A 2/21/2025 Camp Pendleton P Department of the Navy $5,252,369.00 RQ Construction LLC Clint Petit 760-310-2808 cpetit@rqconstruction.com Aquatic Design Group Gregory S. Ferrell 760-444-8312 gferrell@aquaticdesigngroup.com 8/14/2025 Pendleton Plaster R Department of the Navy $634,724.00 Heffler Contracting Group Casey Judge 619-933-5249 casey@hefcongrp.com USMC Engineering Branch 2/28/2025 Rancho Santiago R Rancho Santiago Community College District $413,955.00 Rancho Santiago CCD Erik Martinez 714-300-3369 martinez-eric@rsccd.edu Rogers Stringer & McClelland, Inc.Bernard Rogers 925-217-6620 bernard.rogers@rsm-de.com 9/20/2023 Rancho Simi P City of Simi Valley $1,591,934.00 Rancho Simi Recreation & Park District Douglas Duran 805-584-4480 douglas@rsrpd.us Jones & Madhavan Nachi Madhavan 805-777-8449 x 102 nachi@jmae.com 4/15/2024 Robinson Park P City of Pasadena $1,039,000.00 Hamel Contracting Inc Kimberly Riley 951-600-2783 ext. 136 kriley@hamelinc.com Aquatic Design Group Dennis Berkshire 760-438-8400 dberkshire@aquaticdesigngroup.com 10/1/2023 Saddleback College Swimming Pool Refurbishment R Saddleback $1,474,377.00 Newman Midland Corp.Adam Nassary 562-494-1773 anasary@newmanmidland.com Aquatic Design Group Dennis Berkshire 760-685-0784 dberkshire@aquaticdesigngroup.com 11/22/2023 San Clemente R City of San Clemente $616,000.00 PDM Consulting Inc Pieter De Monchy 760-333-7927 pieter@pdmconsult.com John Bates associates Architecture & Land PlanningJohne Bates 949-455-9301 1/31/2024 Santa Ana Zoo Giant River Otter & Primate Trails P City of Santa Ana $1,598,000.00 G. B. Cooke, Inc.George Cooke 626-945-7830 gbc@gbcookeinc.com TJP Engineering Nicole Nuccitelli 818-497-6223 nnuccitelli@tjpengineering.com 3/29/2024 SLO ASI Leisure Pool R Board of Trustees of the California State University California Polytechnic State $506,000.00 Cal State Poly Luis Mejia Jr.805.503.5368 lmmejia@calpoly.edu Aquatic Design Group Gregory S. Ferrell 760-444-8312 gferrell@aquaticdesigngroup.com 4/1/2024 South El Monte R City of South El Monte $618,026.00 City of South El Monte Danilo Batson 626-374-1799 dbatson@soelmonte.org Condor- In House 7/18/2025 475 Condor, Inc. DENNIS McCORMICK JOBSITE PROJECT MANAGER / SUPERINTENDENT AREAS OF EXPERTISE Over 47 years of Commercial Construction experience. Project Manager and Superintendent for Condor Inc., a major commercial pool builder. Specialization in public works Swimming Pool projects for cities, schools and parks. Expertise includes supervision and construction management. RECENT PROJECTS OVER $1,000,000.- Project Name City OWNER Final Contract Amount Chaffey HS Scoreboard Ontario and Rancho Cucamonga Chaffey Joint Union High School District $2,603,602.16 Chino HS Chino Chino Valley Unified School District $3,098,000.00 Crawford Pool Re-Plastering and Deck Renovation Irvine UC Irvine $823,000.00 La Canada High School La Canada La Canada USD $2,364,000.00 MSMU Mount Saint Mary's University Los Angeles Mount Saint Mary's University $1,579,000.00 Rancho Simi Simi Valley City of Simi Valley $1,591,934.00 Robinson Park Pasadena City of Pasadena $1,039,000.00 Saddleback College Swimming Pool Refurbishment Long Beach Saddleback $1,474,377.00 Santa Ana Zoo Giant River Otter & Primate Trails Santa Ana City of Santa Ana $1,598,000.00 EXHIBIT C 476 EXHIBIT D 477 Management Bios Fred Weiss – President Fred, co-founder, brings over thirty years of construction management experience and knowledge to ensure each project ’s successful and timely completion. His expertise includes engineering, design, estimating, bidding, negotiating and evaluating of contracts, superv ision and management of construction, scheduling, purchasing, and change order analysis. Prior to founding Condor, Fred was a part owner and proj ect manager at an- other firm specializing in swimming pool construction, and previously worked as an aerospace engineer developing radar system s for Hughes Air- craft. Fred is a Registered Civil Engineer, license #49856, and is bilingual (Spanish). Fred received his B.A. in Mathematic s from Pomona College, and his M.S. in Applied Mechanical Engineering Science from the University of California, San Diego. fred@condor-inc.com Earl Weiss – Chief Financial Officer Earl, co-founder, is a veteran business executive with experience in small to mid-sized firms both in the U.S. and abroad. He is focused on ensuring excellence in day to day administration and financial management for the benefit of our clients and our staff. His expertise includes estimating, bidding, negotiating and evaluating of contracts, supervision and management of construction, scheduling, accounting, legal, back-office manage- ment, purchasing, and change order analysis. Earl’s prior experience includes import-export, retail management and ownership in a swimming pool construction firm. Earl is also an accomplished graphic illustrator and is bilingual (Spanish). Earl holds a B.A. in B usiness Administration from the University of California, Santa Barbara. earl@condor-inc.com Janice Ohta – Chief Executive Officer Janice, founding investor, is a seasoned executive with experience managing and consulting with companies ranging from small early-stage start- ups to large international corporations. The industries for which she has worked or consulted include biotechnology, life sci ence venture capital, aerospace, high end retailing, and construction. Janice is committed to ensuring that Condor, Inc. sets and meets the highes t standards in all as- pects of our business from operations to administration so that Condor can deliver the best quality work for our clients. J anice holds a B.A. from the University of California, San Diego and an M.B.A. from the University of California, Los Angeles. janice@condor-inc.com 478 Condor, Inc. founded in 2002, is a recognized leader in the construction of commercial aquatic facilities and is expanding in to infrastructure work with federal, state or municipal organizations. Condor has a reputation for excellent work, innovative design, timely schedu les, jobsite safety and experienced crews. Our team of project managers, superintendents and administrative staff are committed to delivering the highest quality work through exceptional workmanship, extraordinary service, attention to detail and professional integrity. At Condor, we are proud to collaborate with architects, owner’s representative and subcontractors to provide the highest value to our clients. Primary Services • Competition swimming pools • Recreational aquatic facilities • Water and play parks • Fountains • Inland Marine Differentiators NAICS Diversity Certifications SBE – SBA #1729707, CalTrans Small Business #1729707 WBE/WOSB - (NWBOC) CPS11411 and WOSB11412 MBE – Southern California Minority Supplier Diversity Council SC07475 On Time Schedules On Budget Projects Exceptional Workmanship Experienced Crews Attention to Detail Professional Integrity 238990 238110 237110 238140 237310 541330 Licenses California License #812288 A, B, C-53 Nevada License #74996 A 479 Orange Coast College Kinesiology & Aquatic Center Project Details: • One (1), 50 Meter Competition Swimming Pool • 16,010 SQ. FT. • Two (2) Floating Bulkheads • Diving Area • Deep Trough Gutter System • Competitive Timing System and Score- board • One (1), Instructional Swimming Pool • 6,156 SQ. FT. • Rim Flow Gutter System • 25,000 SQ. FT. of Concrete Pool Deck 480 481 Elk Grove Aquatic Center Project Details: • One (1), 50 Meter Competition Swimming Pool • 12,624 SQ. FT. • Diving Area • Deep Trough Gutter System • Competitive Timing System and Score- board • One (1), Instructional Swimming Pool • 3,750 SQ. FT. • Rim Flow Gutter System • One (1), Recreational Swimming Pool • 6,196 SQ. FT. • Rim Flow Gutter System • Lazy River • Play Features • 40’ Tower and Slides 482 483 San Jose State University Student Recreation and Aquatic Center Project Details: • One (1), 50 Meter Competition Swimming Pool • 12,322 SQ. FT. • Diving Area • Deep Trough Gutter System • Competitive Timing System and Score- board • One (1), Activity Pool • 6,973 SQ. FT. • Rim Flow Gutter System • 19,300 SQ. FT. of Concrete Decks 484 485 Torrance Aquatic Center Project Details: • One (1), 50 Meter Competition Swimming Pool • 14,838 SQ. FT. • Deep Trough Gutter System • Competitive Timing System and Score- board • 31,800 SQ. FT. Concrete Deck 486 487 Crafton Hill College Project Details: • One (1), 50M Myrtha Competition Swim- ming Pool • Perimeter Overflow • One (1) Bulkhead 488 489 City of Long Beach Belmont Outdoor Pool Project Details: • One (1), Myrtha Competition Pool • 13,535 SQ. FT. • 592,000 GAL. • Perimeter Overflow • One (1) Moveable Bulkhead 490 491 California State University Fullerton Project Details: • One (1), 50M Competition Pool • 12,928 SQ. FT. • 714,000 GAL. • Perimeter Overflow • One (1) Moveable Bulkhead 492 493 Michelle and Barack Obama Sports Complex Project Details: • One (1), Competition Pool • 7,882 SQ. FT. • 378,000 GAL. • Perimeter Overflow • 1M Diving Board 494 495 Chaffey Unified—Los Osos and Colony High School Project Details: • Two (2), Competition Pools, Mechanical Rooms and Decks • 26,148 SQ. FT. OF POOLS • 27,303 SQ. FT OF DECKS • 1,057,000 GAL. OF WATERS • Perimeter Overflow 496 497 MCB Camp Pendleton — CTT and UET Tanks Project Details: • Two (2), Training Tanks, One Combat Training Tank, and One Underwater Egress Tank, + Mechanical Rooms • 13,554 SQ. FT. CTT POOL • 2,550 SQ. FT. UET POOL • 1,154,000 GAL. OF WATERS • Rim Flow Gutter Overflow • CTT Pool has a 16' deep diving area, toe ledge, 27 racing lanes, state of the art Me- chanical System. • UET Pool has a 12' deep end, toe ledge, state of the art Mechanical System. 498 499 500 Condor, Inc. 3000 Durfee Avenue, El Monte, CA 91732 626.455.0050 phone 626.455.0070 fax www.condor-inc.com earl@condor-inc.com 501 Condor, Inc. 3000 Durfee Ave, El Monte, CA 91732 Phone: (626) 455-0050  Fax: (626) 455-0070 earl@condor-inc.comCSLB No. 812288 A, B, C53 DIR #1000004667 Commercial Aquatic Facilities Fleet Compliance August 28, 2025 Condor, Inc. does not maintain a Fleet of Vehicles and therefore does not fall under the Regulation and is Exempt from the requirements of Title 13, California Code of Regulations, Division 3, Chapter 9, effective on January 1, 2024 Please feel free to contact us at (626) 455-0050 if you have any questions. Sincerely, Earl Weiss 502 Condor, Inc. 3000 Durfee Ave, El Monte, CA 91732 Phone: (626) 455-0050  Fax: (626) 455-0070 earl@condor-inc.comCSLB No. 812288 A, B, C53 DIR #1000004667 Commercial Aquatic Facilities PROPOSAL Bid Date: August 28, 2025 Bid Time: 5:00pm Palm Desert Aquatic Center 73751 Magnesia Falls Drive Palm Desert, CA 92260 Project: Palm Desert Aquatic Center Pump Room Renovation Pump Room Repairs Project Id: 2025-NIB-205 Following is our scope of work: OVERVIEW Furnish and install all supervision, labor, material, equipment, machinery and management to renovate the pump room at your facility. The work is priced per the scope below. Our work includes start-up, instruction of owner’s personnel, and warranties. Our price is based on the onsite visit and project documents provided for the bid. SCOPE OF WORK Per Project Bid Documents PRICE ITEM Description Total 1 PUMP ROOM RENOVATION LS $ 647,000 EXCLUSIONS & CLARIFICATIONS Per Project Bid Documents 503 504 505 506 507 508 509 Copyright © 2025 State of California Home | Online Ser vices | Insurance Company Search | Details  Surety Company Information Surety Company Code G72 Company Information UNITED FIRE & CASUALTY COMPANY P O BOX 73909 CEDAR RAPIDS IA 52407 (866) 609-4943 Back to Top Conditions of Use Privacy Policy Accessibility Accessibility Certification ✔ License Check  Subscribe About CSLB Public Meetings Contact Us Translate this site: Select Language ▼ Settings  8/29/25, 12:28 PM Insurance Company Details https://cslb.ca.gov/OnlineServices/InsuranceSearch/INSDetail.aspx?Action=INSDETIC&Code=G72 1/1 510 Contract No. ___________ 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 Condor, Inc., (hereinafter referred to as the “Contractor”) an agreement for Palm Desert Aquatic Center Pump Room Renovation Project (hereinafter referred to as the “Project”). WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated August 13, 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, Condor, 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 Six Hundred Forty-Seven Thousand Dollars and 00/100, ($647,000.00), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the Contractor, his or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and agreements in the Contract Documents and any alteration thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their intent and meaning; and shall faithfully fulfill all obligations including the one-year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its elected or appointed officers, and their respective agents, officials, employees, volunteers and representatives, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship, Surety shall undertake and faithfully fulfill all such obligations. The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under the Contract, law, or equity, including, but not limited to, California Code of Civil Procedure section 337.15. Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option: (1) Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or (2) Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such 511 Contract No. ___________ 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 September 25, 2025, has awarded to Condor, Inc., hereinafter designated as the “Principal,” a contract for the work described as follows: Palm Desert Aquatic Center Pump Room Renovation Project (the “Project”).; and WHEREAS, the work to be performed by the Principal is more particularly set forth in the Contract Documents for the Project dated August 13, 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 Six Hundred Forty-Seven Thousand Dollars and 00/100, ($647,000.00) lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors and assigns, jointly and severally, firmly by these presents. THE CONDITION OF THIS OBLIGATION IS SUCH that if said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Section 9100 of the Civil Code, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Section 18663 of the Revenue and Taxation Code, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses. This bond shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code so as to give a right of action to such persons or their assigns in any suit brought upon this bond. It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining 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 516 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] 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 SA N PA BLO A V E CARMEL CIR SA N PASCUALAVE MASSON ST KRUG AVE RANCHO RD SAN PASCUAL AVE PRIVATE ST SAN PASCUAL AVE PRIVATE ST M AGN ESI A FA LLS DR SEBASTIAN WAY PRIVATE ST SA N PA BLO A V E CARMEL CIR CARMEL CIR HEITZ CT M ARTINICT MONDAVI CT PRIVATE ST PRIVATE ST SAN PASCUAL AVE PRIVATE ST CARMEL CIR FRED WARING DR MASSON ST PRIVATE ST RANCHO RD RANCHO RD PRIVATE RD PRIVATE ST PRIVATE ST M A GN ESI A FALLS D R SA N PA BLO A V E FRED WARING DR SA N PA BLO A V E CARMEL CIR SA N PASCUALAVE MASSON ST KRUG AVE RANCHO RD SAN PASCUAL AVE PRIVATE ST SAN PASCUAL AVE PRIVATE ST M AGN ESI A FA LLS DR SEBASTIAN WAY PRIVATE ST SA N PA BLO A V E CARMEL CIR CARMEL CIR HEITZ CT M ARTINICT MONDAVI CT PRIVATE ST PRIVATE ST SAN PASCUAL AVE PRIVATE ST CARMEL CIR FRED WARING DR MASSON ST PRIVATE ST RANCHO RD RANCHO RD PRIVATE RD PRIVATE ST PRIVATE ST M A GN ESI A FALLS D R SA N PA BLO A V E FRED WARING DR Palm Desert Aquatic Center I VICINITY MAP521 522 Page 1 of 4 CITY OF PALM DESERT STAFF REPORT MEETING DATE: September 25, 2025 PREPARED BY: Chris Gerry, Senior Project Manager SUBJECT: PUBLIC ELECTRIC VEHICLE CHARGING STATIONS: TERMINATE AGREEMENTS AND ESTABLISH A SITE LICENSE PROGRAM RECOMMENDATION: 1. Terminate agreements and responsibilities for all 18 electric vehicle (EV) charging stations, including five on non-City property and 13 on City-owned or managed property. 2. Establish a site license program to attract private EV charging operators to install, operate, and maintain EV charging stations on City-owned and/or managed property. BACKGROUND/ANALYSIS: Overview: This following recommendations are intended to enhance and advance the City of Palm Desert’s (City’s) electric vehicle (EV) charging program. Although installation of the stations was largely funded through grants, the City remains responsible for ongoing operations and maintenance at stations on City-owned or managed property. These expenses total nearly $50,000 annually and represent a recurring General Fund obligation. With contractual agreements for station participation now expired, the City is now in position to reconsider its role in providing public EV charging services. Based on input from the Resource Preservation and Enhancement Committee (RPEC) and the Active Transportation Program (ATP) Subcommittee, staff recommends terminating agreements and responsibilities for all 18 stations—five on non-City property and 13 on City-owned or managed property. In lieu of continued City operation, staff further recommends establishing a site license program to provide a replacement model in which private operators install, operate, and maintain EV chargin g stations on City-owned property. The recommended approach would eliminate the City’s ongoing financial and operational responsibilities while maintaining opportunities for EV charging through privately managed stations on City property. History: Since Fiscal Year (FY) 2013-14, the City has installed EV charging stations at select locations throughout the community, with installation costs funded through various grant programs. The City currently manages 18 EV charging stations across 10 sites, which inc lude City-owned facilities, private developments, and educational institutions. Of these, 10 stations are located on City property, while the remaining eight are situated on partnering host sites. A map of all EV charging stations is provided as Attachment 1, and an inventory is included as Attachment 2. 523 City of Palm Desert EV Charging Stations Page 2 of 4 Maintenance and Operation: The City currently manages three types of EV charging equipment, each with differing operating models and maintenance responsibilities: Clipper Creek, ChargePoint, and EVGO. Of the 18 EV charging stations in the City’s inventory, 13 are currently operational. The Clipper Creek Equipment (seven stations) is maintained by the City through a local electrician. Common issues include damaged or bent prongs, hose replacements, and occasional electrical panel upgrades. Because these stations are not cloud -connected, problems are typically identified through routine checks or user reports. Currently, six of seven stations are operational. The ChargePoint Equipment (10 stations), by contrast, is networked and operates through a cloud-based service. While the technology allows remote monitoring, all repair costs remain the City’s responsibility. The repair process can be time -consuming. Once a remote diagnostic is completed, a third-party technician is dispatched to the site. If new issues are identified during the visit that weren’t included in the original work order, a second visit must be scheduled, often delaying resolution. As a result, repairs typically take one to two months to complete. Frequent maintenance needs include replacing faulty headlamps, installing updated components to match evolving software requirements, and making electrical upgrades to ensure system compatibility. Currently, six of 10 stations are operational. The EVGO Equipment (one station) located at Palm Desert Civic Center (Civic Center) is maintained by the vendor and does not require City support. This fast -charging unit remains in good working order and has not presented any significant maintenance concerns to date. The vendor was previously contacted about managing additional stations but previously expressed no interest in expanding their role. City Stations Clipper Creek ChargePoint EVGO Total Operational 6 6 1 13 Non-Operational 1 4 5 Total 7 10 1 18 Associated Costs: Although the City’s public EV charging stations were initially installed at no cost through grant funding, their continued operation represents an ongoing fiscal responsibility. Annual costs for electricity, software, and maintenance total approximately $49,300 in FY 2024-25.  Electricity: Of the City’s 18 stations, 17 remain publicly accessible at no charge to users. The City directly covers electricity costs for 12 stations located at the Civic Center and Presidents’ Plaza parking lots, totaling approximately $35,400.  Software: Ten stations use ChargePoint networked equipment, requiring a cloud -based subscription for remote monitoring and usage reporting. The City’s subscription cost is approximately $5,900 annually. 524 City of Palm Desert EV Charging Stations Page 3 of 4  Maintenance: The City maintains 17 stations, with typical expenses for hardware repairs, component replacement, and technician services totaling about $8,000 .00 annually. This does not include additional staff time required for coordination with contractors and third - party service providers. Request for Proposals: In October 2023, the City issued a Request for Proposals (RFP) to evaluate its public EV charging program and explore alternative operating models. The RFP sought qualified vendors to assess all existing stations, provide recommendations for replacement or decommiss ioning, and identify potential new locations within the public right -of-way. By the deadline of November 9, 2023, the City received seven proposals and subsequently interviewed three firms on December 4, 2023. From these, two firms with distinct operating models were identified as the most competitive. Preliminary findings were presented to RPEC on February 26, 2024. At that time, RPEC expressed limited interest in the proposed models and recommended that the City avoid incurring electricity or installation costs and not assume responsibility for stations located on non-City property (Attachment 3). The ATP Subcommittee concurred with these recommendations on July 31, 2025. Because several station agreements remained active until April 30, 2025, the City’s ability to act was limited. With all contractual obligations now expired, the City has the opportunity to pursue a new strategy for future EV charging station management. Recommendations: Based on best practices and input from RPEC and the ATP Subcommittee, staff recommends the following approach for EV charging management. 1. Terminate agreements and responsibilities for all 18 EV charging stations, including 5 on non-City property and 13 on City-owned or managed property. Staff recommends eliminating the City’s recurring responsibility for station operations including electricity, software, and maintenance expenses. In cases where a host site declines to assume responsibility, the City will incur a one-time expense estimated between $500 and $2,000 for site restoration following equipment removal. Although this would represent a short-term cost, it is significantly less than the City’s current annual General Fund obligation. If Council elects to terminate the City’s responsibilities, existing stations on City property could remain in service until a potential site license program (below) is established, ensuring a seamless transition from a free service to a vendor-managed paid model. For Presidents’ Plaza I-II and III, the City will approach property owners to determine whether they are interested in retaining the stations and absorbing the associated electricity costs through their existing assessment districts during the next renewal in 2026 and 2027. 525 City of Palm Desert EV Charging Stations Page 4 of 4 2. Establish a site license program to attract private EV charging operators to install and maintain stations on City-owned or managed property. Staff recommends pursuing a site license program that would shift responsibility for equipment, installation, and ongoing maintenance to private operators on City-owned or managed property. This approach would eliminate direct City costs while ensuring EV charging remains available at key public sites. Locations such as the Civic Center or other high-demand areas could be marketed to vendors as turnkey opportunities, with users paying directly for charging services. Although interest from the private sector is not fully known, implementing this model would allow the City to test the viability of vendor-managed charging while reducing General Fund exposure. Under this approach, staff would return to the City Council with a recommended operator in the future, once proposals have been received and evaluated. Legal Review: This report has been reviewed by the City Attorney’s Office. FINANCIAL IMPACT: Ending operations under the current model would eliminate approximately $49,300 in recurring annual General Fund expenses associated with electricity, software subscriptions, and maintenance of the City’s EV charging stations. To implement this transition, the C ity may incur a one-time cost for equipment removal and site restoration, estimated to range between $15,000 and $25,000 depending on the number of stations decommissioned and site -specific conditions. ATTACHMENTS: 1. Location Map 2. Charging Station Inventory 3. RPEC Minutes (February 26, 2024) 4. EV Charging Stations Presentation 526 Attachment 1 EV Charging Station Location Map 527 528 Attachment 2 Charging Station Inventory Company Level Quantity Address Location Description Status ChargePoint 2 1 43-500 Monterey Ave, Palm Desert, CA 92260 College of the Desert (Next to Communication Building, near Monterey Entrance) Operational ChargePoint 2 1 72399 Hwy 111, Palm Desert, CA 92260 Desert Crossing Shopping Center (South of DSW Shoes) Powered off at property owner's request ChargePoint 2 1 73833 ½ Hwy 111, Palm Desert, CA 92260 Presidents Plaza East (Behind Babaloos) Operational ChargePoint 2 1 73703 ½ Hwy 111, Palm Desert, CA 92260 Presidents Plaza West (Behind Casuelas Café) Operational ChargePoint 2 1 73170 ½ El Paseo, Palm Desert, CA 92260 Presidents Plaza III (Between Kitchen 86 & JC's Patio Café) Powered off/damaged by vehicle; needs reinstallation & electrical repairs; contractor preparing quote. ChargePoint 2 1 75080 Frank Sinatra Dr, Palm Desert, CA 92211 UC Riverside's Palm Desert Campus (North Parking lot) Operational ChargePoint 2 2 72-840 Hwy 111, Palm Desert, CA 92260 Westfield Mall (1st floor of each of 2 parking structures) One operational & needs repairs to handle; contractor preparing quote. Second powered off at property owner’s request. ChargePoint DC Fast Charger 2 43900 San Pablo Ave, Palm Desert, CA 92260 Civic Center Park (between City Hall & skate park) 1 working; 2 working at half-capacity (needs new headlamp, est. 3 weeks) Clipper Creek 2 5 43900 San Pablo Ave, Palm Desert, CA 92260 Civic Center Park (between City Hall & skate park) Operational Clipper Creek 2 2 43900 San Pablo Ave, Palm Desert, CA 92260 Parkview Building (Front of building in parking lot) Operational EVGO DC Fast Charger 1 43900 San Pablo Ave, Palm Desert, CA 92260 Civic Center Park (between City Hall & skate park) Operational & privately owned & maintained. 529 530 Resource Preservation & Enhancement Committee Minutes February 26, 2024 City of Palm Desert Page 2 ALL ACTIONS ARE DRAFT, PENDING APPROVAL OF THE MINUTES 5. ACTION CALENDAR A. DEVELOPMENT OF AN ARTIFICIAL TURF POLICY Community Services Manager Shawn Muir provided a staff report and responded to Committee Member inquiries. Following discussion, MOTION BY COMMITTEE MEMBER MASON, SECOND BY VICE CHAIR BLACKBURN, CARRIED 6-0, to direct staff to develop a policy prohibiting the use of artificial turf on City owned properties and to utilize desert landscaping where necessary. B. ELECTRIC VEHICLE CHARGING STATION BUSINESS MODELS Project Managers Kevin Swartz and Chris Gerry narrated a PowerPoint presentation and responded to Committee Member inquiries. Donald Ziegler, Palm Desert resident, spoke in support of allowing the private sector to implement and manage charging stations and suggested the city encourage residents and business owners to invest in personal charging stations for their homes. By consensus, the Committee was unsupportive of the City funding the installation and maintenance of electric vehicle charging stations and provided feedback concerning alternative options. No formal action was taken on this item. C. ESTABLISH 2024/2025 WORKPLAN FOR THE RESOURCE PRESERVATION AND ENHANCEMENT COMMITTEE Deputy Director of Economic Development Amy Lawrence provided a staff report and responded to Committee inquiries. Donald Ziegler, Palm Desert resident, urged the Committee to prioritize and explore alternative energy sources when goalsetting and to work closely with the City Council and City staff on the creation of a Climate Action Plan. *Committee Member Gomez left the meeting at 4:15 p.m. Following discussion, MOTION BY COMMITTEE MEMBER MASON, SECOND BY VICE CHAIR BLACKBURN, CARRIED 5-0, to adopt the 2024/2025 Workplan for the Resource Preservation and Enhancement Committee consisting of the following priorities:  Water Conservation  Sustainable Landscaping  Energy Conservation 531 532 Electric Vehicle Charging Stations CITY COUNCIL AUGUST 28, 2025 533 Agenda •Initial Inquires •Request For Proposal •Policy Questions •Considerations 534 Initial Inquiries: Driving the Discussion What’s the City’s inventory? Should charging stations be on public property? Should charging stations be free? 535 Charging Station Inventory •How many stations? •Total: 18 •Are the stations free or paid? •Free: 17 •Paid: 1 •Are the stations operable? •Operable: 15 •Inactive/needs repairs: 3 536 Charging Station Locations 537 •Do City’s provide charging stations? •Yes, mostly at public facilities •What type of public facilities? •City halls •Parks •Community centers •Municipal parking structures Public Property Charging 538 Charging Costs Should charging stations be free? Initially, many charging stations were free to encourage adoption of electric vehicles, but… As the EV market matures & demand grows, there has been a shift towards cost-based charging models. Why charge? To cover infrastructure expenses & ensure program sustainability. How much does the City pay annually? Approximately $49,300. 539 Request For Proposal (RFP) 540 INITIAL COSTS / NO ADVERTISING NO COSTS / ADVERTISING RFP: Business Models 541 RFP:RPEC Comments The City should not pay for electricity. The City should not pay for installation & maintenance costs. The City should not be responsible for charging on Non-City property. The City should not advertise on charging stations. 542 Policy Questions 543 Policy Questions •Does the City want to continue providing public EV charging services? If yes, does the City… •Want to continue subsidizing electricity costs for users, or transition to a user-pay model? •Want to fund the replacement of EV charging infrastructure? •Want to continue to operate & maintain EV charging stations located on non-City property? 544 Considerations •Continue or discontinue EV charging stations on non-City property. •Property owners may convert to a user-pay model at own expense. •City restores to previous condition at City expense. •Continue or discontinue free public charging at City expense. •Five charging stations could be converted to a user-pay model. •Develop a Site License Program to replace EV charging stations. •Turnkey operation at vendor’s expense. •Convert EV charging stations to user-pay model at City expense. 545 Committee Comments 546